Cimb Principal Asean Equity Fund

About this document This is a prospectus which introduces you to CIMB-Principal and the CIMB-Principal ASEAN Equity Fund. This prospectus outlines in general the information you need to know to make an informed decision as to whether the Fund best suits your financial needs. If you have any questions about the information in this prospectus or would like to know more about investing in the CIMB-Principal family of unit trust funds, please call CIMB-Principal Client Service Representatives at (03) 2084 2200 between 8.30 am and 5.30 pm, Monday to Friday. If you wish to invest after 11 September 2008 please obtain a prospectus and application form current at that time. Unless otherwise indicated, any reference in this prospectus to any legislation, statute or statutory provision is a reference to that legislation, statute or statutory provision for the time being, as amended or re-enacted, and to any repealed legislation, statute or statutory provision which is re-enacted (with or without modification). Any reference to a time or day in this prospectus shall be a reference to that time or day in Malaysia, unless otherwise stated. Please note all references to currency amounts and unit prices in the prospectus are in Ringgit Malaysia unless otherwise indicated.

Prospectus details Issue No. Prospectus date Current until

1 12 September 2007 11 September 2008

Responsibility Statement This prospectus has been seen and approved by the directors of CIMB-Principal and they collectively and individually accept full responsibility for the accuracy of all information contained herein and confirm that, after having made all enquiries which are reasonable in the circumstances, and to the best of their knowledge and belief, there are no other facts the omission of which would make any statement herein misleading.

Statements of Disclaimer The Securities Commission has approved the issue, offer or invitation in respect of the CIMB-Principal ASEAN Equity Fund, and that the approval shall not be taken to indicate that the Securities Commission recommends the investment. The Securities Commission shall not be liable for any non-disclosure on the part of CIMB-Principal and takes no responsibility for the contents of the prospectus, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this prospectus. INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT AS TO THE ACTION TO BE TAKEN SHOULD CONSULT THEIR PROFESSIONAL ADVISORS IMMEDIATELY. A copy of this prospectus has been registered by, and lodged, with the Securities Commission.

Additional Statements No units will be issued or sold on the basis of this prospectus later than one (1) year after the date of this prospectus.

Contents Definitions ............................................................................... 1 Corporate Directory................................................................ 2 Key Data .................................................................................. 3 Fund information.................................................................. 3 Fees & charges ................................................................... 4 Transaction information....................................................... 5 Investors Services.................................................................. 6 An Introduction to Unit Trust ................................................ 7 Why invest at all? ................................................................ 7 How do unit trusts work? ..................................................... 7 How are unit trusts regulated? ............................................ 7 What are the benefits? ........................................................ 8 What are the risks?.............................................................. 8 Comparison between investing in unit trusts and in stocks 9 Comparison between investing in unit trusts and in fixed deposits ............................................................................... 9 For whom are unit trusts most suitable? ............................. 9 Fees and charges................................................................ 9 Management Expense Ratio (MER).................................. 10 Portfolio Turnover .............................................................. 10 Performance measure and benchmark............................. 10 Fund’s Detailed Information ................................................ 11 Investment objective.......................................................... 11 Benchmark ........................................................................ 11 Investment strategies ........................................................ 11 Investment risks................................................................. 12 Authorised investments ..................................................... 13 Limitations on investments ................................................ 13 Investment restrictions ...................................................... 13 Valuation of authorised investments ................................. 14 Borrowings......................................................................... 14 Fees, Charges and Expenses.............................................. 15 Charges ............................................................................. 15 Fees and Expenses........................................................... 15 Rebates and soft commissions ......................................... 16 Transaction Information ...................................................... 17 Unit pricing......................................................................... 17 Transaction Details............................................................ 19 Initial Offer Period......................................................... 19 Investing ....................................................................... 19 Withdrawing.................................................................. 20 Minimum balance ......................................................... 20 Cooling-off period ......................................................... 20 Switching ...................................................................... 20 Transfer Facility............................................................ 20 Other Information ................................................................. 21 Distributions of the Fund ................................................... 21 Unclaimed monies ............................................................. 21 Amendments to the Deed.................................................. 21 Meetings of Unit holders.................................................... 21 Conflicts of interests and related party transactions ......... 21 Interests in the Fund.......................................................... 21 Joint holders ...................................................................... 21 Termination of the Fund .................................................... 21 Variation to the SC Guidelines .......................................... 22 Rights and Liabilities of a Unit holder................................ 23 Rights of Unit holders ........................................................ 23 Liabilities of Unit holders ................................................... 23 Documents Available for Inspection .................................. 23 The Manager.......................................................................... 24 About CIMB-Principal ........................................................ 24 Summary of the Financial Position of the Company ......... 24 Key Personnel ................................................................... 25 The Investment Committee ............................................... 27

The Board of Directors ...................................................... 28 Key Members of the Investment Team ............................. 30 Conflicts of Interests .......................................................... 31 Employees’ Securities Dealings ........................................ 31 Retirement, Removal or Replacement of the Manager..... 31 Power of the Manager to Remove/Replace the Trustee... 31 Material Litigation and Arbitration...................................... 31 The Trustee ........................................................................... 32 Mayban Trustees Berhad .................................................. 32 General information on the Trustee................................... 32 MTB’s Financial Information .............................................. 32 Board of Directors of MTB ................................................. 32 Key Personnel of the Trustee............................................ 32 Experience in Trustee Business........................................ 33 Delegates of the Trustee ................................................... 33 Duties and Responsibilities of the Trustee........................ 33 Retirement or Removal or Replacement of the Trustee.... 33 Power of Trustee to Remove, Retire or Replace the Manager............................................................................. 33 Exemptions or Variations................................................... 34 Material Litigations............................................................. 34 Taxation Report .................................................................... 35 Accountants' Report ............................................................ 37 Consent.................................................................................. 60 Who is the Distributor of the Fund? .................................. 61 Directors' Declaration .......................................................... 62 Appendix I – ETF risks ......................................................... 63 Principal Risks ................................................................... 63 Risk Factors Relating to the index..................................... 65 Application form

Definitions Except where the context otherwise requires, the following definitions shall apply throughout this prospectus: Application fee ASEF or Fund Approved Distributor

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ASEAN BCHB

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BNM Business Day CIMB

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Preliminary charge on each investment. CIMB-Principal ASEAN Equity Fund. Any relevant persons and bodies, as may be approved by the SC or any other regulatory body and appointed by CIMB-Principal from time to time, who are responsible for selling the Fund.

CIMB Group

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Association of Southeast Asian Nations. Bumiputra-Commerce Holdings Berhad (50841-W) (formerly known as Commerce Asset-Holding Berhad). Bank Negara Malaysia. Mondays to Fridays where banks in Kuala Lumpur are open for business. CIMB Investment Bank Berhad (18417-M) (formerly known as Commerce International Merchant Bankers Berhad). CIMB Group Sdn. Bhd. (706803-D).

CIMB-Principal Asset Management, CIMB-Principal or Manager CIMB-Principal’s Funds or Funds

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CIMB-Principal Asset Management Berhad (304078K)

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Commencement Date Deed

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Exchange Traded Fund or ETF FTSE

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FTSE/ASEAN Index

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FTSE/ASEAN 40 Index

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FTSE/ASEAN 40 Initial Offer Period Latest Practicable Date or LPD

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MTB or Trustee Net Asset Value or NAV

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NAV per unit

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OTC PAH PIA Principal Financial Group RM and sen SC SC Guidelines Switch price Unit holder

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Withdrawal fee

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Lifetime Trust, Xcess Cash Fund, Strategic Bond Fund, Hidden Treasures Fund and any other funds that may be offered by CIMB-Principal. The next Business Day immediately following the end of the Initial Offer Period. The Principal and any Supplemental Deed in respect of the Fund made between the Manager, the Trustee and the Unit holders of the Fund, agreeing to be bound by the provisions of the Deed. An authorised collective investment scheme listed in the exchange. An independent company owned by The Financial Times and the London Stock Exchange. The company’s sole business is the creation and management of indices and associated data services, on an international scale. (For more information, please refer to http://www.ftse.com/About_Us/index.jsp) A benchmark index providing an indication of the financial performance of the top 180 large and mid cap companies from the five ASEAN regions: Indonesia, Malaysia, Philippines, Singapore and Thailand but currently consisting of 153 securities. A tradable index consisting of the top 40 constituents from FTSE/ASEAN index, ranked by market capitalisation. An Exchange Traded Fund (ETF) listed in the Singapore Stock Exchange Trading Limited. 21 calendar days from the launch date. 31 May 2007, in which all information provided herein shall remain current and relevant as at such a date. Mayban Trustees Berhad (Co. No. 5004-P). The value of the cash, accrued income and investments together with an adjustment for brokerage, stamp duties, transfer fees and other charges, if any, in respect of such investments less liabilities including provisions and allowances for contingencies for the time being in the Fund, at the valuation point. For the purpose of computing the annual management fee and annual trustee fee, the NAV of the Fund should be inclusive of the management fee and trustee fee for the relevant day. The Net Asset Value of the Fund divided by the number of units in circulation, at the valuation point. Over-the-counter. Principal Australia (Holdings) Pty Ltd. Principal International (Asia) Ltd. Principal Financial Group and its affiliates. Ringgit Malaysia and sen respectively. Securities Commission. SC Guidelines on Unit Trust Funds as may be amended from time to time. The NAV per unit on any Business Day and other applicable fees (if any). The registered holder for the time being of a unit of the Fund including persons jointly so registered. A charge levied upon redemption.

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Corporate Directory The Manager

CIMB-Principal Asset Management Berhad (Company Registration No.: 304078K)

The Trustee

Business address Level 5 Menara Milenium 8 Jalan Damanlela Bukit Damansara 50490 Kuala Lumpur MALAYSIA Tel: (03) 2084 2000

Business/registered address 34th Floor Menara Maybank 100 Jalan Tun Perak 50050 Kuala Lumpur Tel: (03) 2078 8363

Penang office Suite 1.01 Menara PSCI 39 Jalan Sultan Ahmad Shah 10050 Penang MALAYSIA Tel: (04) 227 2177 Kuching office Level 1 Wisma STA 26 Jalan Datuk Abang Abdul Rahim 93450 Kuching Sarawak MALAYSIA Tel: (082) 330033 Registered address 5th Floor Bangunan CIMB Jalan Semantan Damansara Heights 50490 Kuala Lumpur MALAYSIA Tel: (03) 2084 8888 Postal address CIMB-Principal Asset Management Berhad PO Box 10571 50718 Kuala Lumpur MALAYSIA Internet website www.cimb-principal.com.my E-mail [email protected]

Board of Directors

Charon Wardini bin Mokhzani Noripah Hj. Kamso Raja Noorma Binti Raja Othman Peter William England Harald F. Rueckle Rex Auyeung J.C. Tupling** Brig Gen (R) Dato’ Arif bin Dato’ Awang* Loong Chun Nee* Dato’ Anwar bin Aji* * Independent director ** Alternate director to Rex Auyeung

Investment Committee

Kim Teo Poh Jin A. Huzaime bin Abdul Hamid* Badlisyah bin Abdul Ghani Fad’l bin Mohamed* John Campbell Tupling Raja Noorma Binti Raja Othman *

Mayban Trustees Berhad (Co. No. 5004-P)

Trustee’s Delegates

The Sub-Custodian (Local) Malayan Banking Berhad (3813-K) The Sub-Custodian (Foreign) Standard Chartered Bank Malaysia Berhad Business/registered address Malayan Banking Berhad (3813-K) Custody Services 3rd Floor, Menara Maybank, 100 Jalan Tun Perak 50050 Kuala Lumpur Tel: (03) 2074 7111 Standard Chartered Bank Malaysia Berhad Level 16, Menara Standard Chartered 30 Jalan Sultan Ismail 50250 Kuala Lumpur Tel: (03) 2781 7327

Auditors of the Manager and of the Fund PricewaterhouseCoopers Chartered Accountants 11th Floor Wisma Sime Darby Jalan Raja Laut PO Box 10192 50706 Kuala Lumpur MALAYSIA

Tax Consultants

PricewaterhouseCoopers Taxation Services Sdn Bhd 11th Floor Wisma Sime Darby Jalan Raja Laut, PO Box 10192 50706 Kuala Lumpur MALAYSIA

Principal Bankers

CIMB Bank Berhad (formerly known as Bumiputra-Commerce Bank Berhad) 6 Jalan Tun Perak 50050 Kuala Lumpur MALAYSIA CIMB Investment Bank Berhad (formerly known as Commerce International Merchant Bankers Berhad) 10th Floor, Bangunan CIMB Jalan Semantan Damansara Heights 50490 Kuala Lumpur MALAYSIA

Consulting Actuaries

Mercer Zainal Consulting Sdn Bhd 1702 Kenanga International Jalan Sultan Ismail 50250 Kuala Lumpur MALAYSIA

Independent member

Company Secretary

Rossaya Mohd Nashir (LS 0007591) 5th Floor Bangunan CIMB Jalan Semantan Damansara Heights 50490 Kuala Lumpur MALAYSIA Tel. (03) 2084 8888

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Key Data Fund information CIMB-Principal ASEAN Equity Fund Fund Category/Type Investment objective Benchmark

Investment strategy

Investment timeframe Principal risks

Potential investors

Manager Trustee Launch date Initial NAV per unit Maximum approved fund size Initial offer period Commencement Date Financial year-end

Equity/ Growth. The Fund aims to provide investors with capital growth over the medium to long term through investments into ASEAN assets inclusive of equities, ETFs and derivatives. The FTSE/ASEAN 40 Index. The Fund will invest between 65% to 95% of the Fund’s NAV in the ASEAN equity markets. The Fund may invest up to 30% of its NAV into the FTSE/ASEAN 40 or other ETFs that invest predominantly in the ASEAN countries. This Fund may also invest in derivatives for the purpose of hedging. In addition, up to 5% of the Fund’s NAV will be allocated into deposits or cash to meet redemption needs. Recommended three (3) years or more. The main risks are market risk, liquidity risk, country risk, currency risk, fund manager’s risk and risks associated with ETF investment. This Fund best suits you if: ƒ you are seeking an investment that participates in the growth of the ASEAN region; ƒ you want access to the large and the mid cap companies in the ASEAN region; ƒ you are willing to accept equity market risks to gain potentially higher returns over the medium to long-term investment horizon. CIMB-Principal Asset Management Berhad. Mayban Trustees Berhad. Date of this Prospectus. RM0.5000

For further details, please refer to page 11 11

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24 - 31 32 - 34

300 million units. 21 calendar days from the launch date. 3 October 2007 30 April.

We recommend that you read and understand the entire prospectus before investing and that you keep the prospectus for your records. In determining which investment is right for you, we recommend you speak to your Investment Advisor, banker, lawyer or stockbroker. CIMB-Principal Asset Management Berhad, member companies of the CIMB Group, the Principal Financial Group and the Trustee do not guarantee the repayment of capital.

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Fees & charges This table describes the charges that you may incur when you buy or redeem units of the Fund. For further details, please refer to page

Charges

%/RM

(1)

Application fee

Agencies: Up to 6.5% of the NAV per unit Institutional Unit Trust Agents (IUTAs): Up to 6.5% of the NAV per unit Direct investment via CIMB-Principal: Up to 6.5% of the NAV per unit *Notwithstanding the maximum application fee disclosed above, investors may negotiate with the distributors for lower charges.

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(2)

Withdrawal fee

Agencies: 1% of the NAV per unit Institutional Unit Trust Agents (IUTAs): 1% of the NAV per unit Direct investment via CIMB-Principal: 1% of the NAV per unit Withdrawal fee is chargeable within three (3) months from the Commencement Date Thenceforth, no Withdrawal fee will be charged. * All Withdrawal fee borne by Unit holders will be retained by the Manager.

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(3)

Switching fee^

Since switching is treated as a withdrawal from one (1) fund and an investment into another fund, you will be charged a switching fee equal to the differences (if any) between the applicable fees of these two (2) funds. In addition, the Manager imposes a RM100 administrative fee for every switch made out of a Fund. However, this RM100 administrative fee is waived for the first four (4) switches out of a Fund in every calendar year and the Manager has the discretion to waive the switching and administrative fees.

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(4)

Transfer Fee

A maximum of RM 50.00 may be charged for each transfer.

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Other charges payable Any applicable bank charges and other bank fees incurred as a result of the directly by the investor redemption will be borne by the investor. when purchasing or redeeming the units ^ For Muslim investors, switching from a Shariah fund to other conventional funds is not permitted from the Shariah perspective. However, individual investors may switch to any CIMB-Principal funds on their own personal choice and option. (5)

This table describes the fees that you may incur when you invest in the Fund.

Fees (1) (2)

Management fee Trustee fee

%/RM

For further details, please refer to page

Up to 1.80% per annum of the Net Asset Value of the Fund.

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0.08% per annum (including local custodian fee but excluding foreign subcustodian fee) of the Net Asset Value of the Fund, subject to a minimum of RM18,000 per annum.

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(3)

Expenses directly related to the Fund

Only expenses that are directly related to the Fund can be charged to that Fund. Examples of relevant expenses are audit fee and tax agent’s fee.

(4)

Other fees payable indirectly by an investor when investing in the Fund

Nil.

(5)

Commissions

Up to 100% of the Application fee may be payable as commission to Approved Distributors.

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

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Transaction information CIMB-Principal ASEAN Equity Fund

For further details, please refer to page

Minimum initial investment

RM1,000 or such amounts as the Manager may from time to time decide.

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Minimum additional investment

RM100 or such amounts as the Manager may from time to time decide.

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Minimum withdrawal

RM1,000 or 2,000 units or such amounts as the Manager may from time to time decide. You need to keep a minimum balance of RM1,000 or 2,000 units, whichever is lower, or such amounts as the Manager may from time to time decide. There is no restriction in the frequency of withdrawal.

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Easy Investment Plan

The Easy Investment Plan (EIP) allows you to make regular monthly investments of RM100 or more, direct from your account held with a bank approved by CIMBPrincipal or Approved Distributor. The minimum initial investment for the Easy Investment Plan is RM1,000 or such amounts as the Manager may from time to time decide.

Cooling off period

Six (6) Business Days from the date the application form is received and accepted by the Manager.

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Switching

Investors have the option to switch into any of the Funds offered by CIMB-Principal (except Xcess Cash Fund). The switching will be conducted based on the value of your investments in the Fund. The minimum amount for a switch is RM1,000 or 2,000 units (whichever is lower) or such amounts as the Manager may from time to time decide. In the event that a switch is made into a new fund, the minimum amount which may be switched must meet the minimum initial investment amount for such fund. However, within three (3) months the Commencement Date, no switching into (or out of) this Fund from (or to) other CIMB-Principal funds is allowed. Switching will be allowed thereafter for all CIMB-Principal funds and as of the date thereof, there is no restriction in the frequency of switches.

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Transfer

Investors are allowed to transfer their unit holdings.

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Distribution policy

Given its investment objective, the Fund is not expected to pay any distribution.

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Prospective Unit holders should read and understand the contents of the prospectus and if necessary, consult your 5 advisor. Unit prices and distributions payable, if any, may go down as well as up.

Investors Services * These services are only available to investors of selected Approved Distributors. How will I be informed about my investment?

How can I obtain information about the performance of the Fund? Who do I contact if I need information about my investment?

We will send you a written confirmation of: ƒ Your CIMB-Principal investor number; ƒ All your transactions and distributions; ƒ Any changes to your personal details (e.g. your address, telephone number or bank account information); ƒ The value of your investment each January and July; and ƒ The financial accounts for the Fund for each half-year within two (2) months from the end of the half-year and financial year respectively. In the case of joint Unit holders, all correspondences and payments will be made and sent to the first registered Unit holder. You can obtain up-to-date fund information from our monthly fund fact sheets, our quarterly investor magazine – CIMB-Principal Investors Circle and our website, www.cimb-principal.com.my You can contact our Client Service Representatives at (03) 2084 2200. Our Client Service Representatives are available from Monday to Friday (except on public holidays), at 8.30 am – 5.30 pm (Kuala Lumpur time) or you can email us at [email protected]

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An Introduction to Unit Trust Why invest at all? Most of us have financial goals to achieve during our lifetime - such as investing for our retirement plan, for our children’s education, for a special holiday or just to feel financially secure. The key to achieving these lifetime goals is to start investing early and to spread your investment risk. Whether you invest in a unit trust or invest directly by yourself, you will need to consider: ƒ

Risk - the possibility of your investment losing value. Risk is related to returns, so generally, higher expected returns means higher risk - especially for short-term investment.

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Funds with high exposures to equities will generally yield strong returns over long periods of time but you must be prepared to experience short-term volatility along the way. Funds with high exposures to more conservative investments are less volatile but will generally yield lower returns.

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Returns - whether you want your investment to generate income, or to grow in value, or both.

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Timeframe - how long do you expect to invest for? Investment timeframes are often broken down into short-term (under three (3) years), medium-term (Three (3) to five (5) years) or long-term (five (5) years or more).

How do unit trusts work? Trustee holds all the assets of the fund on behalf of Unit holders and distributes any income to Unit holders.

Trustee

The Unit Trust Manager, through its investment manager, continually monitors the performance of the fund against its objectives and reviews the fund’s investment mix depending on market conditions.

Unit holders

The Unit Trust Manager deposits your investment with the Trustee and issues you units in the fund. Each unit gives you an equal undivided profit in the net assets of the fund.

Unit Trust Manager

Trustee

Fund

The Unit Trust Manager’s investment managers select a diversified portfolio of authorised investments. Upon their recommendation, the Trustee releases the necessary funds to buy these investments.

How are unit trusts regulated? The SC is responsible for the regulation of all matters relating to unit trust schemes under the Securities Commission Act, 1993. It has formulated a set of guidelines and regulations for unit trust funds designed to regulate and to facilitate an orderly development of the unit trust industry. The SC Guidelines and the Deed regulate the workings of the fund, the rights of investors and the responsibilities and duties of the Unit Trust Manager and the Trustee. Investors may inspect a copy of the Deed and any other material contracts or documents as stated in the prospectus at the head office of the Unit Trust Manager and the Trustee free of charge during office hours.

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What are the benefits? In a unit trust, your money is pooled together with that of many other investors, so that the fund can invest in a wide range of asset classes. This includes investments, which may not ordinarily be available to you through direct investment such as government and corporate bonds, and overseas investments. Unit trusts also allow you to benefit from: ƒ

Diversification - spreading your money over a number of different types of investments (such as shares, property trusts, bonds and cash) reduces risk. You could think of it as ‘not putting all your eggs into one basket’.

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Professional management - unit trusts allow you to ‘employ’ a team of investment professionals who conduct extensive research into the financial performance of individual companies and specific securities, taking into account economic and market trends. The analysis of this information forms the basis for the buying and selling decisions of the fund.

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Liquidity – Having access to your money in a short period of time is extremely important. Unit trust funds are one of the investments that give you the opportunity to earn potentially higher returns and the flexibility to cash out at anytime.

What are the risks? All investments involve varying degrees of risk. There are many possible outcomes associated with an investment and there are a multitude of factors, many beyond the control of investors that affect investment returns. Below is an outline of the major risks faced by investors in general. Market risk Market risk is the risk of negative movements that affect the price of all assets in a particular capital market. The factors influencing the performance of the markets include: ƒ ƒ ƒ ƒ ƒ

Economic and financial market conditions Political change Broad investor sentiment Movements in interest rate and inflation Currency risks

Stock values fluctuate in response to the activities of individual companies and general market or economic conditions. Such movements in the underlying values of the shares of the investment portfolio will cause the NAV or prices of units to fall as well as rise, and income produced by a unit trust may also fluctuate. Interest Rate risk Interest rates are inclined to fluctuate over time. A rise in the general level of interest rates will result in a decline of the value of all bonds and fixed interest securities. Hence a bond fund’s NAV will most probably decrease with the rise of interest rates. A Shariah fund may also be affected by fluctuations in interest rates that affect the general market. A rise in the general level of interest rates will have an effect on the rate of returns of Islamic bonds. This risk could cause the decline of the value of the Islamic bonds and the Fund. Liquidity risk Liquidity risk is defined as the ease with which a security can be sold at or near its fair value depending on the volume traded on the market. Company or security specific risk and credit risk There are many specific risks, which apply to individual companies or securities. Examples include the possible effect on a company of losing a key executive or the unforeseen entry of a new competitor into the market. Other risks which apply to individual bond and fixed interest securities include the potential for a company to default on the repayment of the coupon and or principal of its fixed interest securities, or the implications of a company’s credit rating being downgraded. All these risks may cause the NAV or prices of units to fall. Inflation risk Inflation rate risk is the potential loss of purchasing power of your investment due to a general increase of consumer prices. Inflation erodes the real rate of your return, that is, the return after you take away the inflation rate. Loan financing risk Borrowing to invest can multiply the effect of an increase or decrease in the value of your investment. If the value of your investment falls below a certain level, you may be asked by the financial institution to reduce the outstanding loan amount to the required level. Your borrowing cost may also vary from time to time depending on the fluctuations in interest rates. Investors should carefully assess the risks of using loan financing in light of their investment objectives, attitude to risk and financial circumstances before borrowing to invest in a unit trust fund.

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Risk of non-compliance A lack of fiduciary care by a management company to uphold the interests of its Unit holders poses a risk to investors. To ensure that compliance with all the applicable requirements are met at all times, sufficient internal policies and controls must be in place to protect the interests of the Unit holders. Manager’s risk Poor management of the fund due to lack of experience, knowledge, expertise and poor management techniques would have an adverse impact on the performance of the fund. This may lead to Unit holders losing their capital invested in the fund. Country Risk If a fund invests in foreign markets, the foreign investments portion of the fund may be affected by risks specific to the country which it invests in. Such risks include changes in the country’s economic fundamentals, social and political stability, currency movements and foreign investment policies. These factors may have impact on the prices of the securities that the fund invested in. Currency Risk It is a risk associated with investments that are in foreign currencies denomination. When the foreign currencies fluctuate in an unfavorable movement against the Ringgit, the investment may face currency loss in addition to the capital gains/losses. This will lead to a lower NAV of the fund. Important It is important to note that events affecting investments cannot always be foreseen. Therefore, it is not always possible to protect your investments against all risks. The various asset classes generally exhibit different levels of risk. The risk/return profile of the various asset classes is usually such that, from the highest end of the risk /return spectrum, shares are followed by property, then fixed interest securities and finally cash. However, this ranking may be influenced by the time at which you invest and the length of time you hold your investment. In summary, the value of the underlying assets of the fund will fall and rise. The value of your investment and any distribution may also fall and rise. Please note, investments in the fund carry significant risks and we recommend that you read the entire prospectus to assess the risks of investment.

Comparison between investing in unit trusts and in stocks Putting money into unit trusts allows an investor to invest in a diversified portfolio of assets with a minimal investment amount. This would otherwise not be possible if the investor decides to invest directly in the stock market. The overall risk is also minimised due to diversification. Finally, the investor may benefit from Ringgit cost averaging by investing in a disciplined and regular manner over the long term, and do away with worrying about market timing.

Comparison between investing in unit trusts and in fixed deposits An investor who is investing in unit trusts could potentially earn a moderately higher return. In a low interest rate environment, investment in unit trusts may fetch a better rate of return than putting your money in banks’ fixed deposits. Even though the underlying risks of investing in unit trusts are higher, the overall risk position is minimized owing to diversification.

For whom are unit trusts most suitable? Unit trusts are a simple and convenient investment option for people who have a long-term investment horizon but do not either have the time, desire, or expertise to invest directly in financial markets. Unit trusts can be particularly suitable for smaller, first time investors as they have the unique opportunity to establish a broadly diversified portfolio of assets with a relatively small amount of money. However, larger investors can also benefit from unit trusts as they gain access to the expertise of professional investment managers.

Fees and charges The fees and charges that come with investing in unit trust funds can be divided to (but not limited to): ƒ ƒ ƒ ƒ ƒ

Application fees Withdrawal fees Switching fees Transfer fees Management fees

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Trustee fees

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A preliminary charge that is levied on every single investment. A charge levied upon redemption. A charge levied when switching is done between one fund to another. A nominal fee levied for each transfer of units from one Unit holder to another. A percentage of the net asset value of the fund that is paid to the relevant fund manager for managing the portfolio of the fund. A charge by the trustee for carrying out the duties and responsibilities of looking after the fund.

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Management Expense Ratio (MER) The MER is the ratio of the inherent costs incurred in operating a unit trust fund to the fund’s average net asset value. It reflects the level of the fees and expenses incurred in a financial year by the fund (excluding the application fee and other expenses that would otherwise be incurred by an individual investor such as brokerage, taxes and levies). Generally, the larger the fund, the lower the MER due to economies of scale. This ratio is useful for comparing this type of investments with other similar investments in terms of costs. The MER is calculated by adding the Manager’s and Trustee’s fees together with specified expenses and dividing this amount by the average NAV of the fund that is calculated on daily basis.

Portfolio Turnover A Portfolio Turnover ratio is a measure of the volume of trading undertaken by a fund in relation to its fund size. Throughout the course of the fund’s normal trading year, if fund flows and portfolio rebalancing activities increase, these will normally translate to a higher ratio.

Performance measure and benchmark Before making your decision to invest, it is advisable to check the performance of the funds you intend to invest in. Good sources are the independent rating agencies such as Standard & Poor’s and Lipper, which can be found in The Edge publication, published weekly. Please be advised that past performance of the funds is not necessary a guide to future performance and prices can go down as well as up. Unit trust fund returns generally are calculated from the percentage change in fund prices (adjusted for splits and distribution paid out) for the period under review. To compare fund returns over periods exceeding one (1) year, we need to use the average annual compounded return which is the year over year growth rate of an investment over a specified period of time: R = (NAVn/NAVb)^(1/Y) – 1 R NAVn NAVb Y

: Average annual compounded return : current NAV : NAV at the beginning of the period : the number of years under review

The benchmark of a fund should ideally be representative of the investment universe of the fund. Where it is not possible, returns from a directly competing investment product may be used. The most commonly used benchmark for equity fund in Malaysia is the Kuala Lumpur Composite Index (KLCI). Other benchmarks that are used for equity funds are the FTSE Bursa Malaysia EMAS Index and for the Shariah compliant equities portfolios, the FTSE Bursa Malaysia Emas Shariah Index. For fixed income and money market portfolios, one of the common benchmarks used is RAM Quantshop MGS Index and Malayan Banking Berhad Overnight Rate, respectively.

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Fund’s Detailed Information Everyone aspires to invest - for retirement, for a child's education or simply to provide for the future. If you are an investor who's looking for investment alternative aimed at providing medium to long-term capital growth at a reasonable level of volatility, invest with the CIMBPrincipal ASEAN Equity Fund.

Investment objective The Fund aims to provide investors with capital growth over the medium to long term through investments into ASEAN assets inclusive of equities, ETFs and derivatives. Any material changes to the investment objective of the Fund would require Unit holders’ approval.

Benchmark The benchmark is FTSE/ASEAN 40 Index. Information on the benchmark can be obtained from www.ftse.com/Indices/FTSE_ASEAN_Index_Series/index.jsp.

Investment strategies The Fund will invest between 65% to 95% of the Fund’s NAV in the ASEAN equity markets which the Manager believes will exhibit better growth potentials as compared to the benchmark which is the FTSE/ASEAN 40 Index. The Fund may also invest up to 30% of its NAV into the FTSE/ASEAN 40 or other ETFs that invest predominantly in the ASEAN countries. FTSE/ASEAN 40 is an ETF with an objective to provide investment results that, before expenses, closely correspond to the performance of the FTSE/ASEAN 40 Index. The manager of the FTSE/ASEAN 40 is CIMB-Principal Asset Management (S) Pte. Ltd.; a wholly owned subsidiary of CIMB-Principal Asset Management Berhad. The FTSE/ASEAN 40 Index is a tradable index consisting of the largest 40 companies by full market value that qualify as eligible for inclusion in the FTSE/ASEAN Index. As at LPD, the FTSE/ASEAN index comprises of 153 stocks from Malaysia, Singapore, Thailand, Indonesia and Philippines which spread across sectors/industries covering oil and gas, basic materials, industrials, consumer goods, consumer services, telecommunications, utilities, technology and financials industry group. Constituents of both indices are subset of the FTSE All-World Index components. ETFs is also used by the Fund for the following purposes: a) to act as an economical and efficient instrument to gain access into the ASEAN markets; b) to act as the foundation to meet the Fund’s objective. This Fund may also invest in derivatives for the purpose of hedging. In addition, up to 5% of the Fund’s NAV will be allocated into deposits or cash to meet redemption needs. In making the investment decision, the Manager will use a combination of top-down and bottom-up analysis. This decision making process will involve extensive research by our own internal research and quantitative team with support from other investment expertises within CIMB Group in the ASEAN region. Asset Allocation ƒ ƒ ƒ

Between 65% to 95% of the Fund’s NAV will be invested in the ASEAN equity markets; Up to 30% of the Fund’s NAV will be invested into the FTSE/ASEAN 40 ETF or other ETFs that invest predominantly in the ASEAN countries; and Up to 5% of the Fund’s NAV will be invested into liquid assets to meet redemption needs.

Temporary Defensive Measure The Manager may take a temporary defensive position when it believes the markets or the economies are experiencing excessive volatility, a prolonged general decline or when other adverse conditions may exist. Under these circumstances, the Fund may be unable to pursue its investment goal. During adverse market conditions and in times of extreme volatility of the markets, the Manager may from time to time increase its investment into defensive stocks and money market instruments to safeguard the investment portfolio. CIMB-Principal may also utilize derivative instruments such as futures contracts to hedge the portfolio as part of its risk management strategy. Risk management strategy Risk management is at the core of our investment process. Every proposed decision made by the investment team is considered in the context of the overall portfolio risk-return trade-off. The risk management strategies and techniques employed by the Manager include diversification of the Fund’s asset allocation in terms of its exposure to various asset classes, sectors and countries. The risk management team works in tandem with the investment team to ensure that the level of risk is acceptable given the objective of the Fund and its overall targeted performances that are set against the relevant benchmark. The Fund is constructed and managed within the pre-determined guidelines such as risk budgets, which will be monitored and reviewed regularly by the risk management team.

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Investment risks There are risks investing in this Fund. The key risks are as follows: Market risk Market risk is the risk of negative movements that affect the price of all assets in a particular capital market. The factors influencing the performance of the markets include: ƒ Economic and financial market conditions ƒ Political change ƒ Broad investor sentiment ƒ Movements in interest rate and inflation Stock values fluctuate in response to the activities of individual companies and general market or economic conditions. Such movements in the underlying values of the shares of the investment portfolio will cause the NAV or prices of units to fall as well as rise, and income produced by a unit trust may also fluctuate. By investing in markets that are not highly correlated, the market risk of the Fund could be reduced. In addition, active asset allocation management will be employed to reduce the market risk. Liquidity risk Liquidity risk is defined as the ease with which a security can be sold at or near its fair value depending on the volume traded on the market. This is applicable to both listed and unquoted securities. Generally if the security encounters a liquidity crunch, the security may need to be sold at a discount to the fair value of the security. This in turn would depress the NAV growth of the fund marginally. The Manager will attempt to balance the entire portfolio by investing in a mix of assets with satisfactory trading volumes and those that occasionally could encounter poor liquidity. This is expected to reduce the risks for the entire portfolio without limiting the funds growth potentials. In addition, the constituents of the FTSE/ASEAN Index are determined by the ground rules of the FTSE Global Equity Index Series that indicate the followings: ƒ Companies must trade at least 0.5% of their available shares in issue, in ten (10) out of twelve (12) months prior to an index review to be eligible for inclusion in the index. ƒ Companies must have a market capitalization greater than USD100m. (Source: http://www.ftse.com/Indices/FTSE_ASEAN_Index_Series/Downloads/ASEAN_Research_ Report.pdf) Country risk If a fund invests in foreign markets, the foreign investments portion of the fund may be affected by risks specific to the country that it invests in. Such risks include changes in the country’s economic fundamentals, social and political stability, currency movements and foreign investments policies. These factors may have impact on the prices of the securities that the Fund invest in and depress the NAV growth. To mitigate these risks, the Manager will select securities that spread across countries in an attempt to avoid such events. Currency Risk This risk is associated with investments that are quoted in foreign currency denomination. When an underlying investment is denominated in a foreign currency which fluctuates unfavorably against the Ringgit, the investment in the Fund may face currency loss in addition to the capital gains/ losses. This will lead to a lower NAV of the Fund. Currency risks could be mitigated on a two-pronged approach. Firstly by spreading the investable assets across differing currencies and secondly by utilizing forward contracts to hedge the currencies if it is deemed as necessary to do so. Fund manager’s risk Since the Fund may invest into collective investment schemes managed by other fund houses, CIMB-Principal has no control over the respective fund houses’ investment technique and knowledge, operational controls and management. In the event of mismanagement of the funds and/ or fund houses, the NAV of the Fund which invest into the underlying funds would be affected negatively. The Fund would also be affected should there be any unresolved dispute between the Manager and the respective fund houses of the underlying funds, which may include legal redress, conflict of interest, etc. Although the probability of such occurrences is minute, should the situation arise CIMB-Principal reserves the right to seek an alternative fund manager and/ or other collective investment scheme that is consistent with the objective of this Fund. Risk associated with ETF investment. For more information on ETF risk, please refer to Appendix I (page 63).

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Authorised investments The Manager has absolute discretion, subject to the Deed, the investment policy for the Fund and the requirements of the SC and any other regulatory body, as to how the assets of the Fund are invested. Under the Deed, the Fund can invest in a wide range of securities, including, but not limited to the following: ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ

Securities listed on stock exchanges of ASEAN countries recognised by Bursa Malaysia, and where the stock exchanges are not recognised by Bursa Malaysia, it has to be approved by the SC; Futures/forward contracts as permitted under the SC Guidelines; Stock warrants that are traded on an eligible market; Over-the-counter options; All types of collective investment schemes including unlisted and listed unit trust (including ETFs) that invest in the ASEAN countries; Foreign currency deposits (for ancillary purpose only); Malaysian currency deposits with commercial banks, finance companies and merchant banks, including Negotiable Certificates of Deposit and placements of money at call with discount houses; and Any other form of investments as may be agreed upon by the Manager, Trustee or as approved by the SC from time to time that are in line with the Fund’s objectives.

The formulation of the investment policies and strategies of the Fund are based on the objective of the Fund after taking into consideration the regulatory requirements outlined in the SC Guidelines, with such exemptions/variations (if any) as approved by the SC.

Limitations on investments Exchange Traded Fund (ETF): the Fund can invest up to 30% of its NAV in the FTSE/ASEAN 40 and other Exchange Traded Funds (ETFs) that invest predominantly in the ASEAN countries. Shares: the Fund will invest between 65% to 95% of the Fund’s NAV in the ASEAN equity markets. . Money market instruments: the Fund may allocate up to 5% into money market instruments such as foreign currency holdings (only for ancillary purposes), commercial papers, banker's acceptances, treasury bills, deposits with financial institutions as well as debentures with remaining maturity of less than one year. In accordance with the objective of the Fund, these restrictions in shares, fixed income instruments and money market securities may be altered with the consent of the Investment Committee and the Trustee. We will provide Unit holders with 30 days notice of any change. Any material changes to the investment objective of the Fund would need unit holders’ prior approval. Collective investment schemes: investments in collective investment schemes may be made in such situations where it is either practical or desirable for the Manager to gain exposure to a particular asset class by investing in another unit trust. Where the Fund invests in other unit trusts managed by CIMB-Principal or a related party, CIMB-Principal will ensure that the Fund does not pay any application fees and that there is no doubling-up of management fees. Derivatives and their use in the Fund: the term ‘derivative’ is used to describe any financial instrument whose value depends on, or is ‘derived’ from, assets or liabilities or indices (the ‘underlying’ asset). The most commonly used derivatives include futures/forward contracts, options and forward rate agreements. Derivatives can provide a similar exposure to an investment as the purchase or sale of the underlying physical asset. They can also be used in risk management to protect the Fund from anticipated detrimental movements in underlying markets or investments. The participation of the Fund in any futures contract other than a futures option or an eligible exchange traded option must be for hedging purposes only. In any case, the net market exposure of the futures contract position must not exceed the Fund’s net asset value.

Investment restrictions The SC Guidelines and/or the Deed also stipulate the following investment restrictions: ƒ

the value of the Fund’s holding in the share capital of any single issuer must not exceed 10% of the Fund’s NAV;

ƒ

The value of the Fund’s holding in the securities/instruments of, and the securities/instruments relating to, any single issuer must not exceed 15% of the Fund’s NAV (*except for the variation approved by SC which allows investment up to 30% of the Fund’s NAV into ETFs with similar objective);

ƒ

The value of the Fund’s holding in the securities/instruments of, and the securities/instruments relating to, any group of companies should not exceed 20% of the Fund’s NAV. The value of the Fund’s holding in the securities/instruments of, and the securities/instruments relating to, any group of companies may exceed 20% of the Fund’s NAV provided there are acceptable reasons for exceeding the limit. In this regards, CIMB-Principal must notify the Trustee and the SC of the reasons for exceeding the

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limit immediately. Where the reasons are not considered satisfactory, the Trustee and/ or the SC may direct the Fund to comply strictly to not exceed 20% of the Fund’s NAV; ƒ

The Fund’s holding of any class of security/instrument of any single issuer must not exceed 10% of the securities/instruments issued;

ƒ

The value of the Fund’s holding in securities that are not traded in, or under the rules of, an eligible market must not exceed 10% of the Fund’s Net Asset Value; and

ƒ

The value of the Fund’s holding in warrants and options must not exceed 15% of the Fund’s Net Asset Value, or any other limit as may be prescribed by the SC from time to time. The investment limit applies to the price of warrants and the premium of the options.

*The Fund has obtained variation from SC for Clause 2.0 (2) Schedule C Appendix I of the SC Guidelines which allows ASEF to invest up to 30% of its NAV into ETFs with similar objective. In respect of restrictions stipulated by the SC Guidelines, there is an allowance of 5% where such restrictions are breached through appreciation or depreciation in value of the investments or as a result of repurchase of units or payment made from the Fund. If, by reason of market movement, the Fund ceases to comply with the above limitations on investments, the Manager should not make any further acquisitions to which the relevant limit is breached and must remedy the non-compliance as soon as practicable after the date of the breach (maximum of three (3) months from the date of the breach).

Valuation of authorised investments Listed securities The value of any authorised investments, which are quoted on an approved exchange, shall be calculated by reference to the last transacted price on that approved exchange. If there be no such transacted price, the value shall be determined by reference to the mean of bid and offer prices at the close of trading. Unlisted securities As per the SC Guidelines, the value of unlisted securities shall be determined on the basis of fair value as determined in good faith by the Manager on methods or basis which have been verified by the auditor of the Fund and approved by the Trustee, and adequately disclosed in this section. Collective investment schemes The value of any investments in collective investment schemes, which are quoted on an approved exchange, shall be calculated in the same manner as other listed securities described above. When investing in unlisted open-ended unit trusts, the value shall be determined by reference to the unit trust manager’s last published withdrawal price for that unit trust. If the quotations referred to above are not available or if the value of the authorised investments determined in the manner described above, in the opinion of CIMB-Principal, does not represent a fair value of the authorised investments, then the value shall be any reasonable value as may be determined by CIMB-Principal verified by the auditors and approved by the Trustee. Deposits The value of any authorised investments, which are deposits placed with banks or other financial institutions and bank bills, shall be determined each day by reference to the nominal value of such authorised investments and the accrued income thereon for the relevant period.

Borrowings The Fund may not borrow cash or other assets in connection with its activities.

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Fees, Charges and Expenses Charges Application fee Application fee may differ between distribution channels. An Application fee of up to 6.5% is charged on the NAV per unit. Distribution Channel Agencies Institutional Unit Trust Agents (IUTAs) Direct investment via CIMB-Principal

Maximum Application fee (% of NAV per unit) * Up to 6.5% Up to 6.5% Up to 6.5%

* Notwithstanding the maximum Application fee disclosed above, investors may negotiate with the distributors for lower charges. Withdrawal fee A Withdrawal fee is chargeable on any withdrawal made within three (3) months from the Commencement Date and all Withdrawal fee borne by Unit holders will be retained by the Manager. Distribution Channel Agencies Institutional Unit Trust Agents (IUTAs) Direct investment via CIMB-Principal

Maximum Withdrawal fee (% of NAV per unit) * 1% 1% 1%

* However no Withdrawal fee will be charged after three (3) months from the Commencement Date. Switching fee Since switching is treated as a withdrawal from one (1) fund and an investment into another fund, you will be charged a switching fee equal to the differences (if any) between the applicable fees of these two (2) funds. For example, you had invested in a fund with an Application fee of 2.0% on the NAV per unit and now wishes to switch to another fund which has an Application fee of 6.5% on the NAV per unit. Hence, you will be charged a switching fee of 4.5% on the NAV per unit on the amount switched. In addition, the Manager imposes a RM100 administrative fee for every switch made out of a CIMB-Principal fund. However, this RM100 administrative fee is waived for the first four (4) switches out of a Fund in every calendar year. However, the Manager has the discretion to waive the switching and administrative fees.

Fees and Expenses Management fee The annual management fee for the Fund is up to 1.80% of the Fund’s NAV. The management fee shall accrued daily and be paid monthly. Illustration on how the management fee is calculated Management fee for the day = NAV of the Fund x management fee rate for the fund (%)/365 days Example: If the NAV of the Fund is RM150 million, then Management fee for the day = RM150 million x 1.80%/365 = RM7,397.26 Please note that where the Fund will be investing in ETF or collective investment schemes managed by the same management company, ƒ All initial charges on the target fund must be waived; and ƒ Management fee must only be charged once, either at the investing fund or target fund Trustee fee The Trustee is entitled to a fee of 0.08% of the Fund’s NAV (including local custodian fee but excluding foreign sub-custodian fee), subject to a minimum of RM18,000 per annum. The Trustee fee shall accrue daily and be paid monthly. Illustration on how the Trustee fee is calculated Trustee fee for the day

= NAV of the Fund x trustee fee rate for the fund (%)/365 days

Example: If the NAV of the Fund is RM150 million, then Trustee fee for the day = RM150 million x 0.08%/365 = RM328.76

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Expenses The Deed also provides for payment of other expenses. The major expenses recoverable directly from the Fund include but not limited to: • • • • • • • • •

expenses incurred in the sale, purchase, insurance, custody and any other dealings of investments including commissions/fees paid to brokers and costs involved with external specialists approved by the Trustee in investigating and evaluating any proposed investment; expenses incurred in printing and stationery for the annual and interim reports; investment committee fee for independent members; costs associated with the custody of investments delegated by the Trustee; tax and other duties imposed by the government and other authorities, and bank fees; fees and other expenses incurred by the auditor; valuation fees paid to independent valuers for the benefit of the Fund; costs incurred in modifying the Deed for the benefit of Unit holders; and cost of convening and holding meetings of Unit holders other than those convened by or for the benefit of the Manager or Trustee.

The Manager and the Trustee are required to ensure that any fees or charges payable are reasonable and in accordance with the Deed which stipulates the maximum rate in percentage terms that can be charged. The Manager may alter the fees and charges (other than the trustee fees) within such limits, and subject to such provisions, as set out in the Deed and SC Guidelines. The Manager may, for any reason at any time, waive or reduce the amount of any fees (except the trustee fees) or other charges payable by the investor in respect of the Fund, either generally (for all investors) or specifically (for any particular investor) and for any period or periods of time at its absolute discretion. Expenses not authorised by the Deed must be paid by CIMB-Principal or the Trustee out of their own funds. Rebates and soft commissions CIMB-Principal and its officers and the Trustee will not retain any form of rebate or soft commission from, or otherwise share in any commission with any broker in consideration for directing dealings in the investments of the Fund. Notwithstanding the above, soft commission received for goods and services such as financial wire services and stock quotations system, incidental to investment management of the Fund can be retained by the Manager. All dealings with brokers are executed on best available terms. There are fees and charges involved and investors are advised to consider the fees and charges before investing in the funds.

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Transaction Information Unit pricing The Manager adopts the single pricing method to price the units in relation to investment and withdrawal of units. This means that the investment or withdrawal of units will be carried out at NAV per unit. The Application fee/Withdrawal fee (if any) would be computed and charged separately based on your net investment/withdrawal amount. The single price for investment and withdrawal of units shall be the daily NAV per unit at the next valuation point after the Manager receives the investment or withdrawal application (i.e. forward prices are used). Unit prices (i.e. NAV per unit of the Fund) are published each day in the financial press and are available on our website at www.cimbprincipal.com.my. The Fund’s valuation point for a Business Day will be at 11.00 am on the following Business Day. The rationale for this is that the foreign securities may remain open for trading after the close of Malaysian markets. As such any prices adopted for these foreign securities may not be final for the relevant Business Day. To value the investments better it would be best to extract the closing prices of all markets after their respective close, hence unit pricing is best performed on the following Business Day. For any transactions encompassing purchases, redemptions, switches or transfer before 4.00 pm on a Business Day, the price for these transactions will be the unit pricing for that Business Day, which will be known only on the following Business Day. Investors can view these prices on our website after 11.00 am on the following Business Day. Should investors rely upon the local dailies, the unit prices can be obtained two (2) days later. For transactions at or after 4.00 pm, it will be processed using the unit pricing for the next Business Day. Illustration For transaction made before 4.00 pm on a Business Day For the market close of 4 September 2007, the unit price for the Business Day will be calculated on the next Business Day, that is, 5 September 2007. The unit pricing will be made known on our website after 11.00 am on 5 September 2007. However, the publication date on local dailies for the prices as at 4 September 2007 will be 6 September 2007. For transaction made at or after 4.00 pm on a Business Day For the market close of 4 September 2007, the unit price will be for the next Business Day, which will be calculated two (2) days later, that is, 6 September 2007. The unit pricing will be made known on our website after 11.00 am on 6 September 2007. However, the publication date on local dailies will be 7 September 2007. Each Fund must be valued at least once every Business Day except during the Initial Offer Period. Unit prices (i.e. NAV per unit) are calculated based upon the Net Asset Value of the Fund and the number of units in issue in the Fund. The method of determining NAV per unit is calculated as follows: NAV per unit =

Net Asset Value___ Number of Units in issue

The NAV of a Fund is the sum of the value of all investments and cash held by the Fund (calculated in accordance with the Deed) including income derived by the Fund which has not been distributed to Unit holders, less all amounts owing or payable in respect of the Fund including any provisions that the Trustee and CIMB-Principal consider should be made. For example, a provision may be made for possible future losses on an investment which cannot be fairly determined. Note: The Manager will ensure the accuracy of the prices to the press for publication. The Manager, however, will not be held liable for any error or inaccuracies in prices published. Calculation of investment amount and units entitlement Illustration 1: Calculation of number of units received, Application fee and total amount payable by investor (during Initial Offer Period) Assumptions: NAV per unit = RM0.5000 (rounded to 4 decimal places) An investor wishes to invest RM10,000 in the Fund through an Agency. Calculation of number of units received by investor = Investment amount / NAV per unit = RM10,000 / RM0.5000 = 20,000 units

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Calculation of Application fee paid by investor (to be payable in addition to the amount invested) = NAV per unit x number of units received x Application fee rate = RM0.5000 x 20,000 units x 6.5% = RM650 Calculation of total amount payable by investor = Investment amount + Application fee paid = RM10,000 + RM650 = RM10,650 Calculation of number of units received, Application fee and total amount payable by investor (after Initial Offer Period) Assumptions: Assuming after the Initial Offer Period of the Fund, the NAV per unit for the day (which will be made known on the following Business Day) is RM0.5100 (rounded to 4 decimal places). An investor wishes to invest RM10,000 in the Fund through an Agency. Calculation of number of units received by investor = Investment amount / NAV per unit = RM10,000 / RM0.5100 = 19,607.84 units Calculation of Application fee paid by investor (to be payable in addition to the amount invested) = NAV per unit x number of units received x Application fee rate = RM0.5100 x 19,607.84 units x 6.5% = RM650 Calculation of total amount payable by investor = Investment amount + Application fee paid = RM10,000 + RM650 = RM10,650 Calculation of investment value (after Initial Offer Period): Assuming after the Initial Offer Period of the Fund, the NAV per unit for the day (which will be made known on the following Business Day) is RM0.5130 (rounded to 4 decimal places). Calculation of investment value = Number of units x NAV per unit = 20,000 x RM0.5130 = RM10,260 Illustration 2: Calculation of withdrawal value, Withdrawal fee and amount payable to investor (within three (3) months from the commencement date) Assuming the same investor, with 20,000 units, requests for a RM10,000 withdrawal from his investment during the second month after the commencement date. His withdrawal request is received before 4.00 pm. The NAV per unit for that day (which will be made known on the following Business Day) is RM0.5186 (rounded to 4 decimal places). A Withdrawal fee of 1% per NAV per unit will be charged on NAV per unit for this withdrawal. Calculation of number of units withdraw = Withdrawal value/ NAV per unit = RM10,000 / RM0.5186 = 19,282.68 units Calculation of number of remaining units = Units held before withdrawal – Units withdrawn = 20,000 – 19,282.68 = 717.32 units Calculation of Withdrawal fee paid by investor (to be deducted from the withdrawal value) = NAV per unit x number of units withdrawn x Withdrawal fee rate = RM0.5186 x 19,282.68 x 1% = RM100 Calculation of amount payable to investor = Withdrawal value – Withdrawal fee paid = RM10,000 – RM100 = RM9,900

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Calculation of withdrawal value, Withdrawal fee and amount payable to investor (after three (3) months from the commencement date) Assuming another investor, who invested via Agency and has 20,000 units, requests for a RM10,000 withdrawal from his investment on the first year after the investment is accepted by the Manager. His withdrawal request is received before 4.00 pm. The NAV per unit for that Business Day (which will be made known on the following Business Day) is RM0.5186 (rounded to 4 decimal places). Calculation of number of units withdraw = Withdrawal value/ NAV per unit = RM10,000 / RM0.5186 = 19,282.68 units Calculation of number of remaining units = Units held before withdrawal – Units withdrawn = 20,000 – 19,282.68 = 717.32 units There is no Withdrawal fee to be charged. Hence the amount payable to investor is the withdrawal value. Calculation of amount payable to investor = Withdrawal value = RM10,000

Transaction Details Initial Offer Period The Initial Offer Period is 21 calendar days from the launch date. Investing Who can invest? Application for investment can only be made in Malaysia. The following investors are eligible to invest in the Fund: ƒ ƒ ƒ

an individual who is not an undischarged bankrupt, investing in single or joint names (as joint Unit holders); a child under 18, provided the monies are held by an adult on his behalf; and an institution including a company, corporation, co-operative, trust or pension fund.

However, CIMB-Principal has the right to reject an application on reasonable grounds. Where CIMB-Principal becomes aware of a USA resident investor (someone who has an US address, permanent or mailing) holding units in the Fund, we may issue a notice to that person requiring him to, within 30 days, either withdraw his units or transfer his units to a non-USA resident. Minimum investments The minimum initial investment in the Fund is: ƒ ƒ

RM1,000 or such amounts as the Manager may from time to time decide if no election is made to use the Easy Investment Plan; or RM1,000 or such amounts as the Manager may from time to time decide if electing to use the Easy Investment Plan.

Investments can be made through any Approved Distributor or at the head office of CIMB-Principal after completing an application form from a current prospectus and attaching a copy of each applicant’s identity card, passport or other identification. Investments can be made: ƒ ƒ ƒ

by crossed cheque, banker’s draft, money order or cashier’s order made payable to the “CIMB-Principal Asset Management Berhad A/C 1”; or directly from your bank account held with any distributors approved by CIMB-Principal; or by cash if the application is made in person at any branch of distributor approved by CIMB-Principal.

Investors will have to bear the commission charges for outstation cheque. The minimum additional investment in the Fund is: ƒ ƒ

RM100 or such amounts as the Manager may from time to time decide if no election is made to use the Easy Investment Plan; or RM100 per month or such amounts as the Manager may from time to time decide if electing to use the Easy Investment Plan.

Monthly investments made via the Easy Investment Plan will be processed when the application or monthly investment cheque is received by the Manager. Monthly investment can be made by arranging a standing instruction with any Approved Distributor to credit a pre-determined amount to the Fund each month. You can cancel your Easy Investment Plan at any time by providing written instructions to the relevant Approved Distributor to cancel your standing instruction.

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Processing an application If CIMB-Principal receives a valid application before 4.00 pm, CIMB-Principal will process it using the NAV per unit calculated for that Business Day. If CIMB-Principal receives the application at or after 4.00 pm, it will be processed using the NAV per unit calculated for the next Business Day. Incomplete applications will not be processed until CIMB-Principal has received all the necessary information. The number of units an investor receives will be rounded down to the second decimal place. Withdrawing The minimum withdrawal for the Fund is RM1,000 or 2,000 units, or such amounts as the Manager may from time to time decide, unless you are withdrawing your entire investment. Withdrawals can be made from the Fund by completing a withdrawal request form and send to the relevant financial institution or the head office of CIMB-Principal. Processing a withdrawal If CIMB-Principal receives a valid withdrawal request before 4.00 pm, we will process it using the unit pricing for that Business Day, which will be known on the following Business Day. If CIMB-Principal receives the withdrawal request at or after 4.00 pm, it will be processed using the unit pricing for the next Business Day. If you request a specific amount in RM, the number of units will be calculated by dividing the requested amount in RM by the unit pricing, and the number of units will be rounded up to the second decimal place. The amount that you will receive is calculated by the withdrawal value less the Withdrawal fee, if any. That amount will be paid in RM within ten (10) calendar days. Any applicable bank charges and other bank fees incurred as a result of a withdrawal by way of telegraphic transfer, bank cheque or other special payment method will be charged to you. Minimum balance The minimum balance that must be retained in the Fund is RM1,000 or 2,000 units, whichever is lower, or such amounts as the Manager may from time to time decide. If the value of an investment drops below RM1,000 or 2,000 units (whichever is lower) due to a withdrawal, switching, distribution or fall in the unit price, further investment will be required until the balance of the investment is restored to at least the stipulated minimum balance. Otherwise CIMB-Principal can withdraw the entire investment and forward the proceeds to you. Cooling-off period You have six (6) Business Days after your initial investment (i.e. the date the application is received by CIMB-Principal) to reconsider its appropriateness for your needs. Within this period, you may withdraw your investment at the NAV per unit on the day the units were first purchased and have the application fees repaid. Please note that the cooling-off right is only given to an investor who is investing with CIMB-Principal for the first time. However, corporations/institutions, CIMB-Principal’s staff and person(s) registered to deal in unit trust of CIMB-Principal are not entitled to the cooling-off right. Switching Investors have the option to switch into any of the Funds offered by CIMB-Principal (except xcess cash fund). The switching will be conducted based on the value of your investments in the Fund. The minimum amount for a switch is RM1,000 or 2,000 units (whichever is lower) or such amounts as the Manager may from time to time decide. In the event that a switch is made into a new fund, the minimum amount which may be switched must meet the minimum initial investment amount for such fund. The Manager allows switching from Shariah-based funds managed by the Manager into conventional funds, however, this is not encouraged for Muslim Unit holders. The Manager has the discretion to reject in whole or part an application to switch between any of the funds managed by the Manager without having to give reasons for such refusal. To switch, simply complete a switch request form and send to any branch of any Approved Distributor or the head office of CIMBPrincipal. However, within three (3) months the Commencement Date, no switching into (or out of) this Fund from (or to) other CIMB-Principal funds is allowed. Switching will be allowed thereafter for all CIMB-Principal funds and as of the date thereof, there is no restriction in the frequency of switches. Processing a switch A switch is processed as a withdrawal from one fund and an investment into another. If we receive a valid switch request before 4.00 pm, CIMB-Principal will process it using the unit pricing for that Business Day. If we receive the request at or after 4.00 pm, it will be processed using the unit pricing for the next Business Day. Transfer Facility Generally, investors are allowed to transfer their unit holdings, subject to conditions stipulated in the respective Deeds of the funds. The Manager may refuse to register any transfer of a unit at its absolute discretion. A transfer fee of not more than RM50.00 may be charged for each transfer.

20

Other Information Distributions of the Fund Given its investment objective, the Fund is not expected to pay any distribution. All income earned proportionately by the Unit holders is reinvested within the Fund. Distribution, if any, will be incidental and will vary from period to period depending on interest rates, market conditions and the performance of the Fund.

Unclaimed monies Any income distribution payout to the Unit holders, if any, which remain unclaimed for 6 months or more will automatically be reinvested into the Fund. Redemption proceeds payable to Unit holders who have requested for full redemption of their investments in any of the Funds that remain unclaimed after 12 months as prescribed by the Unclaimed Moneys Act, 1965 (revised-1989), shall be lodged with the Registrar of Unclaimed Moneys in accordance with the provisions of the Act.

Amendments to the Deed CIMB-Principal and the Trustee may only amend the Deed in the manner as provided for in the Deed and/or under the Securities Commission Act 1993.

Meetings of Unit holders Unit holders are entitled to attend meetings, which may be convened at any time by CIMB-Principal or the Trustee in accordance with the provisions contained in the Deed. A meeting must also be arranged if a request signed by the prescribed number of Unit holders in accordance with the Deed is given to the Trustee setting out the objectives and proposed resolution. Unit holders will be notified of a meeting in the manner prescribed by the Deed and the SC. Unit holders are bound by a decision of a meeting even if they were inadvertently not informed of the meeting. If they cannot attend, it may be possible to vote by proxy in writing. Should a meeting be called, CIMB-Principal will explain how this can be done.

Conflicts of interests and related party transactions CIMB-Principal will at all times act in the best interest of the investors and will not conduct itself in any manner that will result in a conflict of interest or potential conflict of interest. In the course of managing the Fund, in the unlikely event that CIMB-Principal faces conflicts in respect of its duties to the Fund and its duties to other CIMB-Principal investment funds that it manages, CIMB-Principal is obliged to act in the best interest of all its investors and will seek to resolve any conflicts fairly and in accordance with the Deed. The Fund may maintain deposits with CIMB Bank Berhad (formerly known as Bumiputra-Commerce Bank Berhad) and CIMB Investment Bank Berhad (formerly known as Commerce International Merchant Bankers Berhad). CIMB-Principal may enter into transactions with other companies within the CIMB Group and the Principal Financial Group provided that the transactions are effected at market prices and are conducted at arm’s lengths.

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

Joint holders Units may be registered in the name of more than one (1) Unit holder but CIMB-Principal is not bound to register more than two (2) joint holders. If the units are held by joint holders who are minors, the first registered Unit holder must be an adult, who is not less than 18 years of age. In the event of the demise of a joint holder, the Manager shall only recognise the surviving joint holder(s) as the rightful person(s) having title, right of interest to the units in the account. However, if the surviving joint holders are minors, the units in the account shall be vested in the estate of the deceased joint holder upon receipt by the Manager of the necessary documentation.

Termination of the Fund The Manager, at its absolute discretion, reserves the right to terminate the Fund, if at any time after the Commencement Date, the NAV of the Fund falls below the minimum fund size of RM40 million for a continuous period of not less than six (6) months. On termination of the Fund, the Trustee must realise the assets of the Fund. This must be completed in 180 days if practicable and in any event as soon as possible after that.

21

The net proceeds of realization, after discharging or providing for all liabilities of the Fund and meeting the expenses (including anticipated expenses) of termination, must be distributed pro rata to unit holders according to the number of Unit holders according to the number of units they hold in the Fund. Investors may received less than their initial investment in the Fund should this occur.

Variation to the SC Guidelines Clause 2.0 (2) Schedule C Appendix I of the SC Guidelines states that the value of the fund’s holding in the securities/instruments of, and the securities/instruments relating to, any single issuer must not exceed 15% of the fund’s NAV. We have obtained approval from SC for a variation of the said Clause 2.02(2) Schedule C Appendix I of the SC Guidelines which allows ASEF to invest up to 30% of its NAV into ETFs with similar objective.

22

Rights and Liabilities of a Unit holder Money invested by an investor in the Fund will purchase a number of units, which represents the Unit holder’s interest in the Fund. Each unit held in the Fund represents an equal undivided beneficial interest in the assets of the Fund. However, the unit does not give a Unit holder an interest in any particular part of the Fund or a right to participate in the management or operation of the Fund (other than through Unit holders’ meetings). A Unit holder will be recognised as a registered Unit holder in the Fund on the Business Day his/ her details are entered onto the Register of Unit holders.

Rights of Unit holders A Unit holder has the right, among others, to the following: ƒ

To inspect the Register, free of charge, at any time at the registered office of the Manager, and obtain such information pertaining to its units as permitted under the Deed and SC Guidelines;

ƒ

To receive the distribution of the Fund (if any), participate in any increase in the capital value of the units and to other rights and privileges as set out in the Fund’s Deed;

ƒ

To call for Unit holders’ meetings;

ƒ

To vote for the removal of the Trustee or the Manager through an extraordinary resolution;

ƒ

To receive annual reports, interim reports or any other reports of the Fund; and

ƒ

To exercise cooling-off for qualified investors.

Unit holders’ rights may be varied by changes to the Deed, the SC Guidelines or judicial decisions or interpretation.

Liabilities of Unit holders A Unit holder’s liability will not be greater than its investment in the Fund. If the Fund’s liabilities exceed its assets, Unit holders will not be personally liable to indemnify the Trustee or the Manager or any of their respective creditors. For full details of the rights of a registered Unit holder of the Fund, please refer to the Deed.

Documents Available for Inspection For a period of not less than 12 months from the date of this prospectus, Unit holders may inspect the following documents or copies thereof in relation to the Fund at the registered office of the Manager and/or the Trustee without charge: ƒ

The Deed of the Fund;

ƒ

Material contracts or documents referred to in this prospectus;

ƒ

The latest annual and interim reports of the Fund;

ƒ

All reports, letters or other documents, valuations and statements by any expert, any part of which is extracted or referred to in this prospectus;

ƒ

The audited accounts of the Manager and the Fund (where applicable) for the last five (5) financial years; and

ƒ

Any consent given by experts or persons whose statement appears in this prospectus.

23

The Manager About CIMB-Principal CIMB-Principal specialises in managing and operating unit trusts for Malaysian investors, both institutional and retail, as well as being a licensed Fund Manager and Futures Fund Manager under the Securities Industry Act 1983 (the SIA) and Futures Industry Act 1993 (the FIA) respectively. With this CIMB-Principal’s responsibility includes management of the investment portfolio by providing funds management services to insurance companies, pension funds, unit trust companies, corporates and government institutions in Malaysia. Pursuant to a vesting order dated 24 April 2007 granted by the Kuala Lumpur High Court, all assets, rights, title, interest, undertakings, obligations and liabilities of SBB Asset Management Sdn Bhd (“SBBAM”) were transferred to CIMB-Principal on 30 April 2007. As a result thereof, the management of all current and future businesses of SBBAM have been transferred to and thereafter carried out by CIMB-Principal. CIMB-Principal is a participating unit trust management company under the Malaysia Employees’ Provident Fund (EPF) Members Investment Scheme and as at LPD, it was responsible for managing more than RM15.68 billion on behalf of individuals and corporations in Malaysia. It originally commenced its operations as a unit trust company in November 1995. As at LPD, CIMB-Principal has more than 10 years of experience in the unit trust industry. As at LPD, the shareholders of the company are CIMB Group Sdn. Bhd. (“CIMB Group”) (60%), Principal International (Asia) Limited (“PIA”) (38.79%) and Principal Australia (Holdings) Pty Ltd (“PAH”) (1.21%). CIMB Group is held in majority by BCHB. It is a fully integrated investment bank. It offers the full range of services in the debt markets, the equity markets and corporate advisory. Member companies of CIMB Group also provide services in lending, private banking, private equity, Islamic capital markets as well as research capability in economics, equity and debt markets. Principal International (Asia) Limited is a private company incorporated in Hong Kong and its principal activity is the provision of consultancy services to other PFG group of companies. Principal Australia (Holdings) Pty Ltd is a private company incorporated in New South Wales, Australia and acts primarily as an interim holding company. Both PAH and PIA are subsidiaries of the Principal Financial Group, which was established in 1879 and is a diversified global financial services group servicing more than 15 million customers. CIMB-Principal currently manages 28 unit trust funds, which are the Future Goals Fund, Balanced Returns Fund, Income Plus Fund, Lifetime Bond Fund, Lifetime Dana Mubarak, Lifetime Dana Barakah, CT Institutional Bond Fund, Xcess Cash Fund, Strategic Bond Fund, Hidden Treasures Fund, Steady Returns Bond Fund 2, Lifetime Dana Wafiq, Global Titans Fund, Emerging Asia Fund, CIMBPrincipal Institutional Bond Fund 2, Xcess Income Fund, Lifetime Dana Fayyad, Multi-Maturity Income Fund 1, Asia Pacific Adil Fund, Global Asset Spectra Fund, Global Income Fund, CIMB Islamic Structured Growth Fund, CIMB-Principal Treasury Management Fund 1, 2 & 3 and CIMB Islamic Kausar Treasury Management Fund 1, 2 & 3 as at LPD. CIMB-Principal is also the sub-manager of the FTSE/ASEAN 40, an exchange-traded fund listed on the Singapore Exchange. In addition to being able to draw on the financial and human resources of its shareholders, CIMB-Principal has a staff strength of 153; 115 Executives and 38 Non-Executives, as at LPD. The primary responsibilities of CIMB-Principal as the Manager of the Fund include: ƒ

maintaining a register of Unit holders;

ƒ

implementing the appropriate investment strategies to achieve the Fund’s investment objectives;

ƒ

ensuring that the Fund has sufficient holdings in liquid assets;

ƒ

arranging for the sale and repurchase of units;

ƒ

calculating the amount of income to be distributed to Unit holders; and

ƒ

maintaining proper records of the Fund.

Summary of the Financial Position of the Company

Ordinary shares of RM1.00 each Shareholders’ funds Revenue Profit / Loss before taxation Taxation Profit / Loss after taxation

12 months-ended 31.12.2006 RM 7,000,000 28,246,728 56,839,246 11,418,679 3,440,235 7,978,444

12 months-ended 31.12.2005 RM 7,000,000 20,225,284 55,570,439 12,852,437 3,630,280 9,222,157

12 months-ended 31.12.2004 RM 7,000,000 17,512,127 33,988,892 5,159,472 1,553,834 3,605,638

24

Key Personnel Name:

Noripah binti Kamso

Pearl Wong

Position:

Chief Executive Officer.

Deputy Chief Executive Officer/Head of Investment.

Experience:

Joined CIMB-Principal on 6 September 2004. Has over 20 years experience in corporate credit and lending and 8 years in derivatives broking business. Her experience in asset management business was derived when she sat as one of the Investment Panel of Commerce Asset Fund Managers from 1997 to 2001.

She has 30 years of experience in fund management and was CEO of SBB Asset Management Sdn Bhd prior to the merger with CIMB Principal in April 2007. She joined the Southern Bank Group in Sept 1990 to set up SBB Asset Management, the asset management arm of the Bank. Prior to that she was General Manager of Rashid Hussain Asset Management between 1989-1990 and Fund Manager in Bumiputra Merchant Bankers Berhad between 1977-1988. Throughout her career as fund manager, she handled institutional money consisting of pension funds, unit trust funds, insurance funds, charitable foundations and statutory funds.

Qualifications:

Bachelor in Business Administration (Northern Illinois University, Dekalb, Illinois, USA); Master in Business Administration (Marshall University, Huntington, West Virginia, USA).

Bachelor of Arts (Economics), University of Nottingham, England.

Name:

Raymond Tang

Wan Nur Zakiyyah Wan Din

Position:

Chief Investment Officer.

Assistant Director, Human Resources & Administration.

Experience:

Joined CIMB-Principal on 1 October 2004. He has 18 years of experience in the asset management business.

Joined CIMB-Principal on 12 February 2001. Prior to this she was the Operations and Marketing Manager for BBMBUT.

Qualifications:

Fellow of the Chartered Institute of Management Accountants (CIMA) United Kingdom. He obtained his fund manager’s representative’s license in 1992.

Masters in Business Administration (Northrop University, USA); Bachelor of Economics (Universiti Malaya); Certified Financial Planner.

Name:

Munirah Khairuddin

Nurlia Ismail

Position:

Assistant Director, Institutional Marketing.

Senior Vice President, International Distribution.

Experience:

Joined CIMB-Principal on 1 November 2006. Previously worked as a G7 Economist and strategist for a Fortune 500 multinational company. Working experience also includes being a fixed income fund manager for global and emerging market portfolios in London.

Joined CIMB-Principal on 1 November 1999. She started as GM of Institutional Business Development and progressed to Head of Retail Marketing and later Head of Retail Sales. She assumed the current position in January 2007 and is responsible for developing and overseeing the sales & marketing of unit trust funds in the international markets. She has more than 16 years experience in marketing financial products with various international and Malaysian institutions. Prior to joining CIMB-Principal, she was a Marketing Manager with a local unit trust company.

Qualifications:

Bachelor of Arts (Honours) in Accounting & Financial Analysis, University of Newcastle Upon Tyne, UK. Chartered Financial Analyst Charter holder.

Masters of Arts in International Trade and Bachelor of Business Administration (Eastern Michigan University, USA); Certified Financial Planner.

Name:

Haslindar Jamaludin

Najmuddin Dato’ Mohd Lutfi

Position:

Associate Director, Business Development.

Senior Manager, Business Communications.

Experience:

Joined CIMB-Principal on 1 June 2000 as a fund accountant and subsequently moved on to head Operations & Finance Division. She assumes her current position in February 2007 and is responsible for the development of strategic business opportunities. Prior to this, she was an associate in a London based audit/accounting practice & management consultancy firm. Bachelor of Arts (Hons) in Accounting & Finance (Manchester Metropolitan University, England), Chartered Institute of Management Accountants (CIMA) passed finalist, Certified Financial Planner.

Joined CIMB-Principal on 1 November 2004. Prior to this, he was a Retail Marketing and Communications Manager at CIMB-Principal and was an Assistant Manager at CIMB Investment Bank Berhad (formerly known as Commerce International Merchant Bankers Berhad) in the Corporate Communications unit. He specializes in corporate & retail communications and brand management. Master in Business Administration (University of Missouri - St. Louis, USA); Bachelor of Science in Business Administration (Magna Cum Laude) (Marketing & Management and Organizational Behavior) (University of Missouri - St. Louis, USA).

Qualifications:

25

Name:

Choong Yin May

Suhamdan Latif

Position:

Senior Manager, Information Technology.

Head, Fund Accounting.

Experience:

Joined CIMB-Principal on 26 May 1997 as fund accountant and later expanded her role to lead system projects. She was promoted to her current position in May 2004.

Joined CIMB-Principal on 1 March 2006. Prior to this, he was an independent financial consultant. He has vast experience in operations and finance, and held managerial positions in several financial related companies.

Qualifications:

Bachelor of Business (RMIT University, Melbourne, Australia); Postgraduate Diploma in Strategic Business Information Technology, (NCC Education, United Kingdom); Certified Risk Professional; CPA Australia.

Bachelor of Science double majoring in Finance and Economics (Northern Illinois University, USA)

Name:

Edna Koshy

Felix Neoh Hock Leong

Position:

Head, Legal & Compliance.

Head, Corporate Marketing.

Experience:

Joined CIMB-Principal in January 2007. Prior to joining CIMB-Principal, she was with CIMB Wealth Advisors Berhad since June 2000. She was admitted as an Advocate and Solicitor of the High Court of Malaya in February 1995 and was in practice for 5 years, handling litigation, corporate and banking matters. She oversees legal and compliance matters for both CIMB-Principal as well as CIMB Wealth Advisors Berhad, a wholly-owned subsidiary of CIMB-Principal.

Joined CIMB-Principal in October 2002. He started as Head of Northern Region in the Retail Sales & Marketing Department prior to a transfer to KL in February 2006 to head the local IUTA distribution business. He assumed the current position in February 2007 and is now responsible for overseeing the overall sales and marketing of unit trust funds locally, specifically focusing on the IUTA distribution channel. He has over 11 years of working experience in sales and marketing of financial products with various foreign and local financial institutions.

Qualifications:

Bachelor of Laws Degree (Hons), University of London; Certificate in Legal Practice

Bachelor of Business Studies (Massey University, New Zealand), Associate Financial Planner (AFPM).

Name:

Hanny Yap Shook Han

Position:

Head, Market Development.

Experience:

Joined CIMB-Principal on 9th April 2007. She has over 10 years experience in investment consulting with a global consulting firm prior to joining CIMB-Principal.

Qualifications:

Bachelor of Commerce majoring in Actuarial Science (Melbourne University); Postgraduate Diploma in Finance (Melbourne University); Chartered Financial Analyst Charter holder.

26

The Investment Committee The Manager has appointed the Investment Committee for the Fund on the launch date of the Fund, whose members have been approved by SC, pursuant to the requirements under the SC Guidelines. The Investment Committee currently consists of six (6) members including two (2) independent members. The Investment Committee meets once a month and is responsible for ensuring that the investment management of the Funds is consistent with the objectives of the Funds, the Deed, SC Guidelines and relevant securities laws, any internal investment restrictions and policies of the Manager and/or the Investment Manager, as well as acceptable and efficacious investment management practices within the unit trust industry. In this role, the powers and duties of the Investment Committee include formulating and monitoring the implementation by the Manager and/or the Investment Manager of appropriate investment management strategies for the Funds and the measurement and evaluation of the performance of the Manager and the Investment Manager. Name:

Kim Teo Poh Jin

Badlisyah bin Abdul Ghani

Position:

Director, ESMART Holdings Limited

Head, CIMB Islamic.

Chairman, Director, Marina Yacht Services Pte. Ltd. Experience:

Currently holding Directorships in the IT and Shiprepair sectors. He has 24 years of experience in the financial industry of which 20 years have been in fund management.

Joined CIMB in 2002 and was attached to the Corporate Finance division, prior to his appointment as Head of CIMB Islamic Banking Division. He is responsible for all Islamic banking and finance business of the CIMB Group. Previously, he was attached with an Islamic banking group.

Qualifications:

Bachelor of Arts majoring in Economics from the HeriotWatt University of Edinburgh.

Bachelor of Laws Degree from the University of Leeds.

Name:

A. Huzaime bin Abdul Hamid*

Fad’l bin Mohamed*

Position:

Senior Fellow at Institute of Strategic and International Studies (ISIS) Malaysia.

Managing Director, Maestro Capital Sdn. Bhd.

Experience:

Has over 12 years of experience in asset management and 2 years as Dealers Representative.

Has more than 14 years exposure in the areas of law and finance. He is a licensed investment representative and his previous experiences include stints at an international investment bank and the Securities Commission.

Qualifications:

Bachelor of Science in Economics from Louisiana State University, United States of America.

Bachelor of Laws (Hons) from the University of London; Certified Diploma in Accounting and Finance (Association of Chartered Certified Accountants).

Name:

Raja Noorma Binti Raja Othman

John Campbell Tupling

Position:

She is the director of the Group Asset Management arm of CIMB Investment Bank Berhad (formerly known as Commerce International Merchant Bankers Bhd). She is also the Chief Executive Officer of CIMB-Mapletree Management Sdn Bhd (CMM) since March 2005.

Chief Operating Officer - Asia for Principal International. Principal International is a member company of the Principal Financial Group.

Experience:

Prior to joining CIMB Group, she was previously the VicePresident of Investment Banking for JP Morgan, a position held for over 5 years. She was attached to JP Morgan’s offices in Hong Kong, Singapore and Malaysia as both industry and client coverage banker. At JP Morgan, she originated and executed several transactions involving corporate advisory, equity and debt capital markets, private equity, cross border M&A as well as IPOs. Her other previous working experience include several years in Malaysian Industrial Development Finance Berhad, Malaysian International Merchant Bankers Berhad and 10 years in Telekom Malaysia Berhad where the last post held was as Head of Corporate Finance.

Has been an Alternate Director of CIMB-Principal since 22 March 2004 and has spent more than 7 years with Principal Financial Group. Has over 20 years of financial services experience in Latin America, Europe, USA and Asia.

Qualifications:

She holds a Bachelor of Business Administration degree from Ohio University/ITM.

Bachelor of Arts, University of Western Ontario, Canada.

*Independent member

27

The Board of Directors There are ten (10) members sitting on the Board of Directors of CIMB-Principal including three (3) Independent Directors and one (1) Alternate Director. The Board of Directors oversees the management and operations of CIMB-Principal and meets every two (2) months. Charon Wardini bin Mokhzani Executive Director, CIMB Investment Bank Berhad (formerly known as Commerce International Merchant Bankers Berhad). Has been a Director of CIMB-Principal since 23 November 2004. Currently the Executive Director of CIMB Investment Bank Berhad (formerly known as Commerce International Merchant Bankers Berhad), has previously served as an independent non-executive director of CIMB Berhad from 22 December 2002 to 11 July 2003. Prior to his current position, he was the Managing Partner of Malaysia’s then largest law firm.

Noripah Hj Kamso Director.

Qualifications:

LLB. Hons. (The School of Oriental and African Studies, University of London); BA Hons. in Philosophy, Politics & Economics (Balliol College, University of Oxford).

Bachelor in Business Administration (Northern Illinois University, Dekalb, Illinois, USA); Master in Business Administration (Marshall University, Huntington, West Virginia, USA).

Name: Position:

Raja Noorma Binti Raja Othman She is the director of the Group Asset Management arm of CIMB Investment Bank Berhad (formerly known as Commerce International Merchant Bankers Bhd). She is also the Chief Executive Officer of CIMB-Mapletree Management Sdn Bhd (CMM) since March 2005.

Peter William England

Experience:

Has been a Director of CIMB-Principal since 24 April 2007. Prior to joining CIMB Group, she was previously the VicePresident of Investment Banking for JP Morgan, a position held for over 5 years. She was attached to JP Morgan’s offices in Hong Kong, Singapore and Malaysia as both industry and client coverage banker. At JP Morgan, she originated and executed several transactions involving corporate advisory, equity and debt capital markets, private equity, cross border M&A as well as IPOs. Her other previous working experience include several years in Malaysian Industrial Development Finance Berhad, Malaysian International Merchant Bankers Berhad and 10 years in Telekom Malaysia Berhad where the last post held was as Head of Corporate Finance. She holds a Bachelor of Business Administration degree from Ohio University/ITM.

Has been a Director of CIMB-Principal since 24 April 2007.

Name: Position: Experience:

Qualifications:

Has been a Director of CIMB-Principal since 2 February 2005. Joined CIMB-Principal on 6 September 2004. Has over 20 years experience in corporate credit and lending and 8 years in derivatives broking business. Her experience in asset management business was derived when she sat as one of the Investment Panel of Commerce Asset Fund Managers from 1997 to 2001.

Head of Retail Banking – CIMB Bank Berhad

2004 –2006: Head Retail Banking - Hong Leong Bank 2001-2004:Head Retail Banking - RHB Bank Malaysia 2000: Securities Institute of Australia 1997-1999:HSBC Malaysia and Singapore 1979-1996:State Bank of NSW, Australia

Masters of Business Administration (MBA) University of Southern Queensland Australia, Accounting Certificate and the Australian Higher School Certificate.

Name:

Harald F. Rueckle

Rex Auyeung

Position:

Head of Funds Asia, Hong Kong, of Principal Financial Group.

Experience:

Has been a Director of CIMB-Principal since 24 April 2007. He is also a Director of Principal Global Investors (Asia) Ltd and CIMB Wealth Advisors Berhad.

Vice President of Principal Financial Group; Senior Vice President and Chief Executive – Asia of Principal International, Hong Kong. Has been a Director of CIMB-Principal since 11 July 2003 and has over 25 years of experience in insurance industry in Canada and Hong Kong.

He was previously a Director of AFP Habitat (Chile), Garante (México), Profuturo (Perú), Dom (Poland), Horizonte (Perú), Principal Vida Chile, Principal Administradora General de Fondos, Principal Créditos Hipotecarios, Proteus Consultores S.A. and P&L Global Network Chile. Work experiences include: ƒ Principal Financial Group, as Corporate Sales & Marketing Director, including three companies in Chile; ƒ Citigroup Inc. (1998 – 2002) as Vice President.

28

ƒ ƒ ƒ ƒ

ƒ

Previously was Business Head Pension Funds/Insurance, Poland; AFP Protección S.A. (1996 - 1998) as Sales and Marketing Manager; Team Ruckle Ltda. (1994 – 1997) as Corporate Consulting in five countries in Consumer Goods, Insurance, Pensions and Telecommunications; A.F.P. Provida S.A. (1990 – 1994) as Commercial Division Manager, additionally P/L responsibility for investment in AFP Horizonte, Lima; Industria de Maíz y Alimentos (1990 ) as Product Manager, responsible for the Marketing Mix of Knorr and Mazola brands; was also in charge of new business development; and The Boston Consulting Group (1987-1989) as Associate, promoted to Consultant, based in Munich.

Qualifications:

Master in Business Administration (IESE), University of Navarra/IESE (Spain) & London Business School (England); Diplom Betriebswirt and B.A. (Hon.) First Class in European Business Administration, Fachhochschule Reutlingen (Germany) & Middlesex University (England).

Bachelor of Environmental Studies (Honours) in Urban and Regional Planning, University of Waterloo, Canada.

Name:

J C Tupling (Alternate Director to Rex Auyeung).

Brig. Gen (R) Dato’ Arif bin Dato’ Awang *

Position:

Chief Operating Officer - Asia for Principal International. Principal International is a member company of the Principal Financial Group.

Chief Executive Officer of Cybron Holdings Bhd. Also a Director of Geoprima (M) Sdn. Bhd. and Tenaga Tiub Sdn. Bhd.

Experience:

Has been a Director of CIMB-Principal since 3 November 1995. Also spent 25 illustrious years in the Royal Malaysian Air Force from 1960 to 1984.

Qualifications:

Has been an Alternate Director of CIMB-Principal since 22 March 2004 and has spent more than 7 years with Principal Financial Group. Has over 20 years of financial services experience in Latin America, Europe, USA and Asia. Bachelor of Arts, University of Western Ontario, Canada.

Name: Position:

Madam Loong Chun Nee * Group Chief Financial Officer, Scomi Group Bhd.

Experience:

Has been a Director of CIMB-Principal since 6 May 2002. Also spent a total of 5 years with Puncak Niaga Group and 11 years in Renong Group.

Qualifications:

Bachelor of Arts in Economics and Social Studies, University of Manchester, England.

Master of Science (Cranfield Institute of Technology); Advance Management Program (Harvard Business School). Dato’ Anwar bin Aji Chairman of Faber Group Berhad, Independent NonExecutive Director of CIMB Islamic Bank Berhad, Independent Non-Executive Director of Edaran Otomobil Nasional Berhad, Director of SPJ Corporation Berhad and Director of SKS Refinery Sdn Bhd. Has been a Director of CIMB-Principal since 24 April 2007. 1980-1981: Assistant Director - Economic and International Division, Federal Treasury, Ministry of Finance 1982-1984: Principal Assistant Secretary - Foreign Investment Committee, Economic Planning Unit, Prime Minister Department Telecoms Department 1984-1985: Principal Assistant Secretary- Investment Division of the Malaysian Tobacco Company Berhad under the British Malaysia Industry and Trade Association training scheme 1986-1991: Deputy Director - Petroleum development Division, Prime Minister’s Department 1991-1993: Principal Assistant Secretary - Finance Division Federal Treasury, Ministry of Finance 1993-1994: Special Assistant - The Secretary General of Ministry of Finance 1994-2004: Last position – Managing Director Khazanah Nasional Berhad Bachelor of Economics (Hons) from the University of Malaya (1973); Masters of Arts International Studies from the Ohio University, USA (1982).

*Independent Director

29

Key Members of the Investment Team CIMB-Principal's investment team is jointly responsible for the overall investment decisions made on behalf of the Funds. However, under the SC Guidelines, the unit trust scheme is required to appoint a designated fund manager for the Fund. The key members of the Investment Team are: Name:

Raymond Tang

Mr Arnold Lim Boon Lay

Position:

Director, Investment. Designated Fund Manager for CT Institutional Bond Fund and Lifetime Bond Fund.

Experience:

Joined CIMB-Principal on 1 October 2004. He has 18 years of experience in the asset management business. Prior to joining CIMB-Principal he was the Chief Investment Officer/Executive Director of a joint venture company from 1996 to 2004 and was jointly responsible in making regional asset allocation decisions within the Asia Pacific ex-Japan. He began his career as an investment officer in a leading local management company in 1987 for 4 years before moving on to a local securities company as an investment executive for 1 year. In 1992 he joined a leading local asset management company as a fund manager until 1996.

Executive Vice President. Head of Retail Equities. Designated Fund Manager for Future Goals Fund, Balanced Returns Fund, Income Plus Fund, Lifetime Dana Mubarak, Lifetime Dana Barakah, Hidden Treasures Fund, Global Titans Fund, Emerging Asia Fund, Asia Pacific Adil Fund, Global Asset Spectra Fund, Global Income Fund, CIMB Islamic Structured Growth Fund, CIMB-Principal ASEAN Growth Fund and CIMB Wealth Advisors’ Funds. After five years at Citibank NA Kuala Lumpur, Mr Lim moved to the investment industry in 1989. His experience includes managing venture capital investments, unit trust funds and other institutional funds. During Mr Lim's tenure as General Manager of a local asset management house, its discretionary fund composite was ranked No 1 (94-98) on Information Ratio by Watson Wyatt. Mr Lim was also previously Head of Research of ING Barings Malaysia. AsiaMoney ranked him as 2nd best strategist in 2001. He is the designated fund manager for all CIMB Wealth Advisors’ Funds.

Qualifications:

Fellow of the Chartered Institute of Management Accountants (CIMA) United Kingdom. He obtained his fund manager’s representative’s license in 1992.

Master of Business Administration (University of California, Berkeley); Chartered Financial Analyst. He has been a licensed fund manager under the Securities Industry Act 1983 since 1994.

Name:

Nor Hanifah binti Hashim

Eric Hong Kang Wei

Position:

Director, Fixed Income. Designated Fund Manager for Lifetime Dana Wafiq, CIMB-Principal Institutional Bond Fund 2, Multi-Maturity Income Fund 1, Strategic Bond Fund, Steady Returns Bond Fund 2, Xcess Cash Fund, Xcess Income Fund, Lifetime Dana Fayyad, CIMB Islamic Kausar Treasury Management 1,2,3 and CIMBPrincipal Treasury Management 1,2,3. Transferred to CIMB-Principal from CIMB in January 2005. She was previously the Head of Fixed Income Services at CIMB. She was with CIMB’s Debt Markets and Derivatives Department for almost 12 years and had been managing fixed income portfolios for CIMB’s clients. Bachelor of Science in Economics & International Relations (University of Wisconsin Madison, USA); America Associate of Arts Degree (State University of New York at Buffalo, USA); a member of the Financial Markets Association – Malaysia. She obtained her fund manager’s representative’s license on 22 December 2004.

Senior Vice President, Head of Quantitative Strategy. Appointed Portfolio Manager for FTSE/ASEAN 40.

Experience:

Qualifications:

Joined CIMB-Principal on 1 September 2001. He has 8 years of experience in financial services industry. Prior to joining CIMB-Principal, he was an Internal Auditor and later a Treasury Dealer at a local bank. BA (Econ) (1st Class Honours) specializing in Accounting & Finance and Econometrics (University of Manchester, UK); Chartered Financial Analyst Charterholder; Certified Financial Risk Manager. He obtained his fund manager’s representative’s license on 26 September 2002 and futures fund manager’s representative’s license on 20 November 2003.

30

Conflicts of Interests The Manager, its directors and any of its delegates including the Investment Committee members will at all times act in the best interests of the Unit holders of the Funds and will not conduct itself in any manner that will result in a conflict of interest or potential conflict of interest. In the unlikely event that any conflict of interest arises, such conflict shall be resolved such that the Funds are not disadvantaged. In the unlikely event that CIMB-Principal faces conflicts in respect of its duties to any of the Funds and its duties to other CIMB-Principal investment funds that it manages, CIMB-Principal is obliged to act in the best interests of all its investors and will seek to resolve any conflicts fairly. The Manager shall not act as principals in the sale and purchase of any securities or investments to and from any of the Funds. The Manager shall not make any investment for the Funds in any securities, properties or assets in which the Manager or its officer has financial interest in or from which the Manager or its officer derives a benefit, unless with the prior approval of the Trustee.

Employees’ Securities Dealings CIMB-Principal has in place a policy contained in its Rules of Business Conduct, which regulates its employees’ securities dealings. An annual declaration of securities trading is required of all employees to ensure that there is no potential conflict of interest between the employees’ securities trading and the execution of the employees’ duties to the company and customers of the company.

Retirement, Removal or Replacement of the Manager The Manager may retire upon giving twelve (12) months notice to the Trustee of its desire to do so, or such lesser time as the Manager and Trustee may agree, in favour of another corporation. The Manager may be removed by the Trustee under certain circumstances outlined in the Deed. These include: ƒ

if the Manager shall have gone into liquidation (except a voluntary liquidation for the purpose of reconstruction or amalgamation upon terms previously approved in writing by the Trustee) or cease to carry on business or if a receiver shall be appointed of the undertaking or assets of the Manager or if any encumbrances shall take possession of any of its assets;

ƒ

if an Extraordinary Resolution is duly passed by the Unit holders that the Manager be removed;

ƒ

if the Manager is in breach of any of its obligations under the Deed; or

ƒ

if the Manager has failed or neglected to carry out its duties to the satisfaction of a Trustee and the Trustee considers that it would be in the interests of the Unit holders for it to do so, after the Trustee has given notice to it of that opinion and the reasons for that opinion, and has considered any representations made by the Manager in respect of that opinion, and after consultation with the Securities Commission and with the approval of the Unit holders.

The Manager may be replaced by another corporation appointed as manager by extraordinary resolution of the Unit holders at a Unit holder’s meeting convened in accordance with the Deed either by the Trustee or the Unit holders.

Power of the Manager to Remove/Replace the Trustee The Trustee may be removed in the event that: ƒ

the Trustee goes into liquidation;

ƒ

the Trustee is placed under receivership, ceases to exist, fails or neglects its duties;

ƒ

the Trustee ceases to be approved by the SC to be a trustee for unit trust schemes; or

ƒ

if an Extraordinary Resolution is duly passed by the Unit holders that the Trustee be removed.

Additionally, the Manager is legislatively empowered under Section 108 of the Securities Commission Act 1993 to remove a Trustee under specific circumstances set out therein. The Trustee may be replaced by another corporation appointed as trustee by Extraordinary Resolution of the Unit holders at a Unit holder’s meeting convened in accordance with the Deed either by the Manager or the Unit holders.

Material Litigation and Arbitration As at LPD, there are no litigation or arbitration proceedings current, pending or threatened against or initiated by CIMB-Principal nor do there exist any facts likely to give rise to any proceedings which might materially affect business/financial position of CIMB-Principal or any of its delegates.

31

The Trustee Mayban Trustees Berhad General information on the Trustee Mayban Trustees Berhad is the Trustee of the Fund with its registered address at 34th Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur. MTB was incorporated on 12 April 1963 and registered as a Trust Company under the Trust Companies Act 1949 on 11 November 1963. It was one of the first local trust companies to provide trustee services with the objective of meeting the financial needs of both individual and corporate clients. As at LPD, the Trustee has a total of 25 staff, comprising sixteen (16) executives and nine (9) non-executives.

MTB’s Financial Information Summary of MTB’s audited financial figures for financial years ended 30 June:

Paid-up capital Shareholders’ funds Turnover Profit Before Taxation Profit After Taxation

2006 (RM) 500,000 15,256,185 8,298,572 6,963,766 5,043,451

2005 (RM) 500,000 12,372,734 7,366,005 5,731,024 4,193,905

2004 (RM) 500,000 10,338,829 6,581,666 4,743,884 3,453,884

Board of Directors of MTB YB Dato’ Richard Ho Ung Hun – Independent Non-Executive Director & Chairman Datuk Johar Che Mat – Non-Independent Executive Director Mr Teh Soon Poh - Independent Non-Executive Director Mr Tong Hon Keong - Independent Non-Executive Director En Mohd Nazlan Mohd Ghazali – Non-Independent Executive Director

Key Personnel of the Trustee Ms Surindar Kaur A/P Gian Singh, Chief Executive Officer She graduated from Universiti Sains Malaysia (USM) with Bachelor of Science (Honours) in 1983 and from University of London with LLB (Honours) in 1993. She joined Maybank in 1983 and served in various capacities in both the business and risk management sectors. She was a Senior Manager as part of the Approving Team for enterprise business loans prior to her current appointment in Mayban Trustees Berhad in July 2004. Pn Maziah Yong, Head, Unit Trust & Retail Pn Maziah joined MTB on 1 April 1995. Prior to this, she had spent five years in a trust company in Malaysia. She has more than fifteen (15) years experience in trust administration, especially Unit Trust schemes. She is in charge of private client trusts and a portfolio of unit trust funds. She holds an Advanced Diploma in Law from Institut Teknologi MARA. Ms Quek Yen Leng, Head, Accounts & Administration Ms Quek joined MTB on 16 April 2001. Prior to this she was in a Malaysian accounting firm (Coopers & Lybrand) before joining an established commercial bank. As Head of Accounts & Administration, she is in charge of MTB’s clients accounts. Ms Quek is a member of the Australian Society of Certified Practicing Accountants and Malaysian Institute of Accountants. She holds an Accounting degree from RMIT, Melbourne, Australia. Ms. Wong Su Kuin, Head, Corporate Trust & Clubs Ms. Wong joined MTB on 1 September 2006. She graduated with a Bachelor of Laws from University of London. She was called to the Malaysian Bar in 1996. She has extensive experience in litigation and conveyancing matters. Prior to joining Mayban Trustees, she was with various legal firms and actively dealt with financial institutions. Mr. Tan Ju Han, Head, Business Development Mr. Tan joined MTB on 2 February 2007. He obtained his LLB (Honours) from the University of Glamorgan in 1996. He has nine (9) years’ work experience comprising five (5) years of prior trustee experience and four (4) years of experience in compliance for unit trust, asset management and financial services companies variously.

32

Experience in Trustee Business With more than 15 years experience as Trustee to unit trust funds/schemes, MTB has under its trusteeship a total of fifty six (56) unit trust funds and three (3) real estate investment trust / property trust funds as at LPD.

Delegates of the Trustee 1) Malayan Banking Berhad MTB has appointed Malayan Banking Berhad, as the custodian of the local assets of the Fund. The custodian function is run under Maybank Custody Services (“MCS”), a unit within Malayan Banking Berhad. MCS commenced operations in 1983 and has been appointed as custodian of unit trust funds since 1989. It provides clearing and custody services for Malaysian equity and fixed income securities to domestic and foreign institutional clients. In addition, it offers global custody services to domestic institution/clients that have foreign investments. MCS has staff strength of 25 employees, comprising of 13 executives and 12 non-executives as at LPD. 2) Standard Chartered Bank Malaysia Berhad MTB has appointed Standard Chartered Bank Malaysia Berhad, as the custodian of the foreign assets of the Fund. The custodian has been a leader in Asian custody and a proven premier supplier of international, regional and local custody solutions and fund services. They have a long established track record servicing international global custodians, broker dealers, fund managers and institutional investors from across North America, Europe and Asia. The core services of the custodian includes clearing and settlement processing, safekeeping, corporate events monitoring and processing, income collection, reporting on securities and cash transactions and positions. Both custodians act only in accordance with instructions from the Trustee.

Duties and Responsibilities of the Trustee The Trustee’s main functions are to act as trustee and custodian of the assets of the Fund and to safeguard the interests of Unit Holders of the Trust. In performing these functions, the Trustee has to exercise all due care and vigilance and is required to act in accordance with the provisions of the Deed, Securities Commission Act 1993 and the SC Guidelines. Apart from being the legal owner of the Fund’s assets, the Trustee is also responsible for ensuring that the Manager performs its duties and obligations in accordance with the provisions of the Deed, Securities Commission Act 1993 and SC Guidelines.

Retirement or Removal or Replacement of the Trustee The Trustee may retire upon giving twelve (12) months’ notice to the Manager of its desire to do so, or such shorter period as the Manager and the Trustee may agree, and may by deed appoint in its stead a new Trustee approved by the SC. The Trustee may be removed and another trustee may be appointed by extraordinary resolution of the Registered Holders at a Registered Holders’ meeting convened in accordance with the Deed or as stipulated in the Securities Commission Act. The Manager shall take reasonable steps to remove and replace the Trustee as soon as practicable after becoming aware of any such circumstances as stated in page 31.

Power of Trustee to Remove, Retire or Replace the Manager The Manager may be removed by the Trustee on the grounds that: a)

the Manager goes into liquidation (except for the purpose of amalgamation or reconstruction or some other purpose approved by the relevant authorities); or has had a receiver appointed; or has ceased to carry on business; or is in breach of its obligations under the Deed, Securities Commission Act 1993 or the SC Guidelines; or

b)

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 the Manager of that opinion and the reasons for that opinion, and after consultation with the Securities Commission and with the approval of the Unit Holders by way of a Special Resolution.

In any of abovesaid grounds, the Manager for the time being shall upon receipt of such notice by the Trustee cease to be the Manager and the Trustee shall by writing under its seal appoint another corporation to be the Manger of the Fund subject to such corporation entering into a deed(s) with the Trustee and thereafter act as Manager during the remaining period of the Fund.

Trustee’s Statement of Responsibility The Trustee has given its willingness to assume all its obligations under the Deed, all written laws and SC Guidelines. The Trustee is entitled to be indemnified out of the assets of the Fund for any liability incurred by the Trustees in performing or exercising any of its powers or duties in relation to the Trust. This indemnity is in addition to any indemnity allowed by law. However, it does not extend to liabilities arising from a breach of trust or failure to show the due care and diligence required of the Trustee having regard to its powers, authorities and discretions under the Deed.

33

Exemptions or Variations There have been no exemptions or variations from any relevant securities laws or guidelines granted to the Trustee by the Securities Commission.

Material Litigations As at LPD, save for the pending Suits mentioned here below, neither the Trustee nor its delegates are engaged in any material litigation and arbitration as plaintiff or defendant, and the Trustee and its delegates are not aware of any proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially and adversely affect their financial position or business. The Bondholders of the Al-Bai Bithaman Ajil (“ABBA”) Bonds issued by Pesaka Astana (M) Sdn Bhd (“PASB”) have sued PASB for its failure to meet its Bonds payment obligations under Kuala Lumpur High Court Civil Suit No. D8-22-1810-2005 (“the 1st Suit”) and cited the Trustee as one of the 12 co-defendants in the same suit The claim in the 1st Suit is for RM157.8 Million or any other sum that the Court deems fit . The other defendants in the 1st Suit include amongst others the Facility Agent, PASB’s Chief Executive Officer, one of PASB’s directors and associate companies of the Chief Executive Officer and the said director. The claim, however, does not take into consideration the sum of RM8.405 Million already paid by PASB to the ABBA Bondholders. Connected to the above, Amanah Short Deposits Berhad, a Noteholder of the Combined Commercial Papers and/or Medium Term Notes/Letters of Credit/Financial Guarantee Facilities (“CP/MTN”) totaling RM13 million and issued by PASB, have also sued PASB for full payment under CP/MTN arising from a cross-default by PASB under its ABBA Bonds, in Kuala Lumpur High Court Civil Suit No. D222-1085-2006 (“the 2nd Suit”). The Trustee was cited as one of the 5 co-defendants in the 2nd Suit. The claim in the 2nd Suit is for RM13 million or any other sum that the court deems fit and damages. The other defendants in the 2nd Suit are the Facility Agent, PASB’s Chief Executive Officer and one of PASB’s directors. The Trustee is presently defending both the 1st and 2nd Suit and does not admit liability to the same. In any event, any successful claim that may be established against the Trustee will be covered by the Trustees’ insurer and/or Malayan Banking Berhad as the ultimate holding company of the Trustees. As such, the Suit will not materially affect the business/financial position of the Trustees.

34

Taxation Report PricewaterhouseCoopers Taxation Services Sdn Bhd 11th Floor, Wisma Sime Darby Jalan Raja Laut P.O. Box 10192 50706 Kuala Lumpur The Board of Directors CIMB-Principal Asset Management Berhad Level 5, Menara Millenium 8, Jalan Damanlela Bukit Damansara 50490 Kuala Lumpur 24 May 2007 Dear Sirs, TAXATION OF THE TRUST OFFERED UNDER THE CIMB-PRINCIPAL ASEAN EQUITY FUND AND UNITHOLDERS This letter has been prepared for inclusion in the Prospectus in connection with the offer of units in the CIMB-Principal ASEAN Equity Fund (“the Trust”). The taxation of income for both the Trust and the Unitholders are subject to the provisions of the Malaysian Income Tax Act 1967 (“the Act”). The applicable provisions are contained in Section 61 of the Act, which deals specifically with the taxation of Trust bodies in Malaysia. TAXATION OF THE TRUST The Trust will be regarded as resident for Malaysian tax purposes since the Trustee of the Trust is resident in Malaysia. The income of the Trust consisting of dividends, interest (other than interest which is exempt from tax) and other investment income derived from or accruing in Malaysia, after deducting tax allowable expenses, is liable to Malaysian income tax at the rate of 271 per cent. Gains on disposal of investments by the Trust will not be subject to income tax. Tax Credit Dividends received by the Trust would have suffered tax deduction at source at 271 per cent, unless specific exemptions apply e.g. pioneer dividends. No further tax will be payable by the Trust on the dividends. However, such tax or part thereof will be refundable to the Trust if the total tax so deducted at source exceeds the tax liability of the Trust. With effect from year of assessment (“YA”) 2004, resident companies with paid-up capital of RM2.5 million and below will pay tax at 20 per cent for the first RM500,000 chargeable income with the balance taxed at 271 per cent. However, dividends from such companies would still have tax credits attached of 271 per cent such that there will not be additional tax payable by the Trust on such dividends. Exempt Income - Domestic Investments Interest income or discount derived from the following investments is exempt from tax: (a) securities or bonds issued or guaranteed by the Government; (b) debentures, other than convertible loan stocks, approved by the Securities Commission; and (c) Bon Simpanan Malaysia issued by Bank Negara Malaysia. Interest derived from the following investments are exempt from tax: (a) interest paid or credited by any bank or financial institution licensed under the Banking and Financial Institutions Act 1989 or the Islamic Banking Act 1983; and (b) bonds, other than convertible loan stocks, paid or credited by any company listed on Malaysia Exchange of Securities Dealing and Automated Quotation Berhad. The interest or discount exempt from tax at the Trust level will also be exempted from tax upon distribution to the Unitholders.

1

The corporate tax rate will be reduced to 26 per cent from YA 2008 onwards.

35

- Foreign Investments Income of the Trust in respect of overseas investment is exempt from Malaysian tax by virtue of Para 28 of Schedule 6 of the Act and distributions from such income will also be tax exempt in the hands of the Unitholders. However, any foreign tax suffered on the income in respect of overseas investment is not tax refundable to the Trust. Tax Deductible Expenses Expenses wholly and exclusively incurred in the production of gross income are allowable as deductions under Section 33(1) of the Act. In addition, Section 63B of the Act provides for tax deduction in respect of managers’ remuneration, expenses on maintenance of the register of Unitholders, share registration expenses, secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postages. The deduction is based on a formula subject to a minimum of 10 per cent and a maximum of 25 per cent of the expenses. Real Property Gains Tax (RPGT) Gains on disposal of investments by the Trusts will not be subject to income tax but where the investments represent shares in real property companies, such gains will be subject to real property gains tax (“RPGT”). A real property company is a controlled company which owns or acquires real property or shares in real property companies with a market value of not less than 75 per cent of its total tangible assets. A controlled company is a company which does not have more than 50 members and is controlled by not more than 5 persons. In any case, pursuant to RPGT (Exemption) (No. 2) Order 2007, any disposal of chargeable assets after 31 March 2007 will be exempted from RPGT. TAXATION OF UNITHOLDERS Unitholders will be taxed on an amount equivalent to their share of the total taxable income of the Trust to the extent of the distributions received from the Trust. The income distribution from the Trust will carry a tax credit in respect of the tax paid by the Trust. Unitholders will be entitled to utilise the tax credit against the tax payable on the income distribution received by them. No additional withholding tax will be imposed on the income distribution from the Trust. Corporate Unitholders, resident2 and non-resident, will generally be liable to income tax at 271 per cent on distribution of income received from the Trust. The tax credits attributable to the distribution of income can be utilised against the tax liabilities of these Unitholders. Individuals and other non-corporate Unitholders who are tax resident in Malaysia will be subject to income tax at graduated rates ranging from 1 per cent to 28 per cent. Individuals and other non-corporate Unitholders who are not resident in Malaysia will be subject to income tax at 28 per cent. The tax credits attributable to the distribution of income can be utilised against the tax liabilities of these Unitholders. Non-resident Unitholders may also be subject to tax in their respective jurisdictions and depending on the provisions of the relevant tax legislation and any double tax treaty with Malaysia, the Malaysian tax suffered may be creditable against any foreign tax. The distribution of exempt income and gains arising from the disposal of investments by the Trust will be exempted from tax in the hands of the Unitholders. Any gains realised by Unitholders (other than dealers in securities, insurance companies or financial institutions) on the sale or redemption of the units are treated as capital gains and will not be subject to income tax. Unitholders electing to receive their income distribution by way of investment in the form of new units will be regarded as having purchased the new units out of their income distribution after tax. Unit splits issued by the Trust are not taxable in the hands of Unitholders. We hereby confirm that the statements made in this report correctly reflect our understanding of the tax position under current Malaysian tax legislation. Our comments above are general in nature and covers taxation in the context of Malaysian tax legislation only and does not cover foreign tax legislation. The comments do not represent specific tax advice to any investors and we recommend that investors obtain independent advice on the tax issues associated with their investments in the Trust. Yours faithfully, for and on behalf of PRICEWATERHOUSECOOPERS TAXATION SERVICES SDN BHD

Jennifer Chang Senior Executive Director PricewaterhouseCoopers Taxation Services Sdn Bhd have given their written consent to the inclusion of their report as Taxation Adviser in the form and context in which it appears in this Prospectus and have not withdrawn such consent prior to the delivery of a copy of this Prospectus for approval.

2

Resident companies with paid up capital of RM2.5 million and below will pay tax at 20 per cent for the first RM500,000 chargeable income with the balance taxed at 27 per cent. The corporate tax rate will be reduced to 26 per cent from YA 2008 onwards.

36

Accountants' Report The Board of Directors CIMB-Principal Asset Management Berhad Level 5 Menara Milenium 8 Jalan Damanlela Bukit Damansara 50490 Kuala Lumpur 28 May 2007 PwC/JT/py/1658J Dear Sirs,

1

INTRODUCTION We, as Reporting Accountants and auditors of CIMB-Principal ASEAN Equity Fund (“the Fund”) and CIMB-Principal Asset Management Berhad (“the Company”) and have prepared this Report for inclusion in the Prospectus to be dated not later than six months from the date of this report in connection with the public offer of units in the Fund by the Company.

2

BACKGROUND INFORMATION The Company, a public limited company incorporated in Malaysia on 13 June 1994, was a subsidiary of Bumiputra-Commerce Holdings Berhad (“BCHB”) (formerly known as Commerce Asset-Holding Berhad (“CAHB”)). On 18 August 2004, BCHB and CIMB Berhad (“CIMB Berhad”) entered into a Share Sale Agreement whereby BCHB sold their interest in the Company to CIMB Berhad. The Share Sale Agreement was approved on 23 November 2004. The shareholders of the Company then were CIMB Berhad, Principal Australia (Holdings) Pty Ltd and Principal International (Asia) Limited. On 9 December 2004, the Company and Commerce Asset Fund Manager Sdn Bhd (“CAFM”) entered into the Business Rationalisation Agreement. On 31 May 2005, this transfer was effected in accordance with a court order dated 6 May 2005. On 1 June 2005, the Company changed its name from Commerce Trust Berhad to CIMB-Principal Asset Management Berhad. Pursuant to the completion of the disposal of assets and liabilities on 9 January 2006 by CIMB Berhad to CIMB Group Sdn. Bhd. ("CIMBG"), a company incorporated in Malaysia, the Directors now regard CIMBG as the Company's immediate holding company. Pursuant to a sale of shares agreement dated 5 December 2006, the Company has acquired all the shares of SBB Asset Management Sdn Bhd (“SBBAM”) from BHLB Asset Management Sdn Bhd and all the shares of CIMB Wealth Advisors Berhad (formerly known as SBB Mutual Berhad) (“CWA”) from BHL Venture Berhad. As at 7 February 2007, SBBAM and CWA are now wholly owned subsidiaries of CIMB-Principal. Pursuant to a vesting order dated 24 April 2007 granted by the Kuala Lumpur High Court, all assets, rights, title, interest, undertakings, obligations and liabilities of SBBAM were transferred to the Company on 30 April 2007. The principal activity of the Company is the establishment and the management of unit trust funds and fund management business. The funds currently managed by the Company are as follows:

2.1

The Lifetime Trust Funds (namely Future Goals Fund, Balanced Returns Fund and Income Plus Fund) were established pursuant to the execution of a deed dated 10 March 1998 and launched on 12 March 1998;

2.2

Lifetime Bond Fund was established pursuant to the execution of a deed dated 7 November 1995 and launched on 15 November 1995;

2.3

Lifetime Dana Mubarak Fund (formerly known as Lifetime Dana Putra Fund) was established pursuant to the execution of a deed dated 29 May 1995 and launched on 15 June 1995;

2.4

Lifetime Dana Barakah was established pursuant to the execution of a deed dated 13 February 2003 and was launched on 26 May 2003;

37

2

BACKGROUND INFORMATION (CONTINUED)

2.5

CT Institutional Bond Fund was established pursuant to the execution of a deed dated 20 January 2004 and was launched on 11 February 2004;

2.6

Xcess Cash Fund was established pursuant to the execution of a deed dated 20 January 2004 and was launched on 18 February 2004;

2.7

Strategic Bond Fund was established pursuant to the execution of deed dated 20 January 2004 and was launched on 23 March 2004;

2.8

Hidden Treasures Fund was established pursuant to the execution of deed dated 8 April 2004 and was launched on 20 April 2004;

2.9

Steady Returns Bond Fund 2 was established pursuant to the execution of a deed dated 5 August 2004 and was launched on 18 August 2004;

2.10

Lifetime Dana Wafiq was established pursuant to the execution of a deed dated 3 February 2005 and was launched on 23 February 2005;

2.11

Global Titans Fund was established pursuant to the execution of a deed dated 11 July 2005 and was launched on 18 July 2005;

2.12

Emerging Asia Fund (formerly known as Hidden Values Fund) was established pursuant to the execution of a deed dated 21 October 2005 and was launched on 22 November 2005;

2.13

CIMB-Principal Institutional Bond Fund 2 was established pursuant to the execution of a deed dated 16 January 2006 and was launched on 15 February 2006;

2.14

Lifetime Dana Fayyad was established pursuant to the execution of a deed dated 28 March 2006 and was launched on 20 April 2006;

2.15

Xcess Income Fund was established pursuant to the execution of a deed dated 28 March 2006 and was launched on 20 April 2006;

2.16

Multi-Maturity Income Fund 1 was established pursuant to the execution of a deed dated 18 April 2006 and was launched on 18 May 2006;

2.17

Asia Pacific Adil Fund was established pursuant to the execution of a deed dated 11 May 2006 and was launched on 2 June 2006; and

2.18

Global Asset Spectra Fund was established pursuant to the execution of a deed dated 11 October 2006 and was launched on 13 November 2006.

2.19

Global Income Fund was established pursuant to the execution of a deed dated 27 February 2007 and was launched on 21 March 2007.

2.20

CIMB Islamic Structured Growth Fund was established pursuant to the execution of a deed dated 27 April 2007 and was launched on 25 May 2007;

2.21

CIMB-Principal Treasury Management Fund 1, 2 and 3 were established pursuant to the execution of a deed dated 26 March 2007 and was launched on 25 May 2007; and

2.22

CIMB Islamic Kausar Treasury Management Fund 1, 2 and 3 were established pursuant to the execution of a deed dated 26 March 2007 and was launched on 25 May 2007.

3

THE FUND AND ITS OBJECTIVE CIMB-Principal ASEAN Equity will be established pursuant to the execution of a deed to be dated not later than six months from this report, between the Manager, CIMB-Principal Asset Management Berhad and the Trustee, Mayban Trustees Berhad. The Fund aims to provide investors with capital growth over the medium to long term through investment in ASEAN stocks, Exchange Traded Funds (“ETFs”) and derivatives. The Fund will invest between 65% to 95% of the Fund’s Net Asset Value (“NAV”) in the ASEAN equity markets. The Fund will also invest up to 30% of its NAV into the FTSE/ASEAN 40 ETF or other ETFs that invest predominantly in the ASEAN countries. In addition, up to 5% of the Fund’s NAV will be allocated into deposits or cash to meet redemption needs. The approved size of the Fund is 300 million units with an initial selling price of RM0.50 per unit.

38

4

INFORMATION ON THE FUND As at the date of this report, no audited financial statements of the Fund are available for inclusion in this report as the Fund has yet to commence operations or issue any units as at the date of this report.

5

INFORMATION ON THE COMPANY The Company was incorporated on 13 June 1994. The principal activity of the Company is the establishment and the management of unit trust funds and fund management business. On 9 December 2004, the Company and Commerce Asset Fund Manager Sdn. Bhd. (“CAFM”) entered into a Business Rationalisation Agreement. On 31 May 2005, this transfer was effected in accordance with a court order dated 6 May 2005. On 1 June 2005, the Company changed its name from Commerce Trust Berhad to CIMB-Principal Asset Management Berhad.

5.1

Share capital Authorised: The authorised share capital of the Company at the date of incorporation was RM100,000 comprising 100,000 ordinary shares of RM1 each. On 6 November 1995, the authorised share capital of the Company was increased to RM10,000,000 by way of the creation of 9,900,000 ordinary shares of RM1 each. On 7 February 2007, the authorised share capital of the Company was increased to RM200,000,000 divided into 200,000,000 ordinary shares of RM1 each. Issued and fully paid: The issued and fully paid-up share capital of the Company as at 7 February 2007 is RM173,474,795 comprising 173,474,795 ordinary shares of RM1 each.

5.2

Audited financial statements The financial statements of the Company for the financial years ended 31 December 2002, 31 December 2003, 31 December 2004, 31 December 2005, and 31 December 2006 have been reported on by us without any qualification to the shareholders of the Company as a body in accordance with Section 174 of the Companies Act 1965 and for no other purpose. These financial statements have not been re-audited and our audit opinions have not been updated.

39

5

INFORMATION ON THE COMPANY (CONTINUED)

5.3

Income statements The condensed financial results of the Company based on the audited financial statements for the past five financial years are as follows:

Note

REVENUE 5.6.3 Other operating income Commission and brokerage fees paid and payable to agents Staff costs 5.6.4 Depreciation of fixed assets Rental of premises Marketing expenses Professional fees Repair and maintenance expenses Bonus in lieu of management fees Intangible asset written off Other operating expenses PROFIT BEFORE TAXATION

5.6.5

Taxation

5.6.6

NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS Retained profit brought forward Dividend paid RETAINED PROFIT CARRIED FORWARD

Ordinary shares of RM1.00 each PROFIT AFTER TAX PER SHARE (RM)

5.4

Year ended 31.12.2006 RM

Year ended 31.12.2005 RM

Year ended 31.12.2004 RM

Year ended 31.12.2003 RM

Year ended 31.12.2002 RM

56,839,246 1,581,351

55,570,439 73,689

33,988,892 -

29,339,806 -

27,666,059 -

(24,462,825) (13,298,664) (953,312) (1,072,254) (2,401,020) (1,648,462) (1,068,587) (2,096,794) ───────── 11,418,679

(27,279,905) (8,726,421) (1,112,695) (651,574) (2,362,385) (939,895) (752,479) (966,337) ───────── 12,852,437

(19,311,921) (4,219,858) (705,754) (427,966) (2,715,786) (545,064) (276,219) (626,852) ───────── 5,159,472

(16,290,311) (3,920,636) (697,073) (388,967) (1,899,631) (371,688) (267,574) (640,697) ───────── 4,863,229

(17,359,478) (3,182,268) (473,486) (214,100) (1,444,572) (432,200) (274,193) (1,031,767) (1,098,996) (401,595) ───────── 1,753,404

(3,440,235) ─────────

(3,630,280) ─────────

(1,553,834) ─────────

(1,543,000) ─────────

(939,000) ─────────

7,978,444 13,182,284 ─────────

9,222,157 3,605,638 10,512,127 6,906,489 (6,552,000) ───────── ─────────

3,320,229 3,586,260 ─────────

814,404 2,771,856 ─────────

21,160,728 ═════════

13,183,284 ═════════

10,512,127 ═════════

6,906,489 ═════════

3,586,260 ═════════

7,000,000

7,000,000

7,000,000

7,000,000

7,000,000

1.14 ═════════

1.32 ═════════

0.52 ═════════

0.47 ═════════

0.12 ═════════

Balance sheets The condensed balance sheets of the Company based on the audited financial statements for the past five financial years are set out below: Note

SHARE CAPITAL RESERVES

5.6.7

As at 31.12.2006 RM

As at 31.12.2005 RM

As at 31.12.2004 RM

As at 31.12.2003 RM

As at 31.12.2002 RM

7,000,000 21,246,728 ───────── 28,246,728

7,000,000 13,225,284 ───────── 20,225,284

7,000,000 10,512,127 ───────── 17,512,127

7,000,000 6,906,489 ───────── 13,906,489

7,000,000 3,586,260 ───────── 10,586,260

40

5

INFORMATION ON THE COMPANY (CONTINUED)

5.4

Balance sheets (continued)

As at 31.12.2006 RM

As at 31.12.2005 RM

As at 31.12.2004 RM

As at 31.12.2003 RM

As at 31.12.2002 RM

5.6.8

290,269 ───────── 28,536,997 ═════════

320,867 ───────── 20,546,151 ═════════

217,942 ───────── 17,730,069 ═════════

233,000 ───────── 14,139,489 ═════════

127,000 ───────── 10,713,260 ═════════

5.6.9 5.6.10 5.6.11 5.6.12

2,692,725 310,306 2,332,002 1,701,030 ───────── 7,036,063 ─────────

2,202,538 433,811 ───────── 2,636,349 ─────────

984,151 371,989 ───────── 1,356,140 ─────────

1,169,376 591,319 ───────── 1,760,695 ─────────

1,148,103 475,625 ───────── 1,623,728 ─────────

Trade receivables Non-trade receivables,

5.6.13

26,045,085

68,703,067

12,293,740

10,514,612

12,612,865

deposit and prepayments Amount due from a related

5.6.14

3,135,471

2,806,697

2,246,191

1,269,399

297,933

company Tax recoverable

5.6.17

1,279,822 -

116,374 -

9,522 -

96,037 -

451,055

13,752,633 4,537,128

13,583,364 6,990,635

13,917,183 3,881,132

10,293,489 1,723,919

7,439,028 11,582,365

───────── 48,750,139

───────── 92,200,137

───────── 32,347,768

───────── 23,897,456

───────── 32,383,246

─────────

─────────

─────────

─────────

─────────

Note

NON CURRENT LIABILITY Deferred taxation

NON CURRENT ASSETS Property, plant and equipment Intangible asset Subsidiary Other investment

CURRENT ASSETS

Money market investments Cash and bank balances

CURRENT LIABILITIES Trade payables

5.6.15

20,463,614

69,228,957

13,563,539

9,302,163

21,311,259

Non-trade payables and accruals

5.6.16

5,249,798

3,538,550

883,617

743,476

1,455,513

Amounts owing to related companies

5.6.17

Provision for taxation

NET CURRENT ASSETS

782,839

843,771

1,205,369

1,297,168

526,942

752,954 ─────────

679,057 ─────────

321,314 ─────────

175,855 ─────────

─────────

27,249,205 ─────────

74,290,335 ─────────

15,973,839 ─────────

11,518,662 ─────────

23,293,714 ─────────

21,500,934

17,909,802

16,373,929

12,378,794

9,089,532

───────── 28,536,997

───────── 20,546,151

───────── 17,730,069

───────── 14,139,489

───────── 10,713,260

═════════

═════════

═════════

═════════

═════════

41

5

INFORMATION ON THE COMPANY (CONTINUED)

5.5

Summary of significant accounting policies The following accounting policies have been used consistently in dealing with items which are considered material in relation to the financial statements. (a)

Basis of preparation The financial statements of the Company have been prepared under the historical cost convention except as disclosed in this summary of significant accounting policies. The financial statements have been prepared to comply with MASB Approved Accounting Standards for Entities Other than Private Entities and the provisions of the Companies Act 1965. The adoption of the new/revised Financial Reporting Standards (FRS) that are applicable to the Company for accounting periods beginning on or after 1 January 2006 are as follows: FRS 2 Share-based Payments FRS 3 Business Combinations FRS 101 Presentation of Financial Statements FRS 102 Inventories FRS 108 Accounting Policies, Changes in Accounting Estimates and Errors FRS 118 Revenue Recognition FRS 110 Events after the Balance Sheet Date FRS 116 Property, Plant and Equipment FRS 121 The Effects of Changes in Foreign Exchange Rates FRS 127 Consolidated and Separate Financial Statements FRS 132 Financial Instruments: Disclosure and Presentation FRS 136 Impairment of Assets FRS 138 Intangible Assets The adoption of the new/revised FRS do not have any significant impact to the Company except for the following FRS: (i) FRS 2: Share-based payment; (ii) FRS 118: Revenue recognition; and (ii) FRS 138: Intangible Assets There are no changes in the accounting policy of the Company during the financial year except for the application of FRS 2, FRS 118 and FRS 138 as discussed above and as disclosed in paragraph 5.7. The new standards, amendments to published standards and interpretations that are mandatory for the Company’s financial periods beginning on or after 1 January 2007 or later periods, but which the Company have not early adopted, are as follows:

(b)

•

FRS 124 Related Party Disclosures (effective for accounting periods beginning on or after 1 October 2006). This standard will affect the identification of related parties and some other related party disclosures. The Company will apply this standard from financial periods beginning on or after 1 January 2007.

•

FRS 139 Financial Instruments: Recognition and Measurement (effective date yet to be determined by Malaysian Accounting Standards Board). This new standard establishes principles for recognising and measuring financial assets, financial liabilities and some contracts to buy and sell non-financial items. Hedge accounting is permitted only under strict circumstances. The Company will apply this standard when effective.

•

IC Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities (effective for accounting periods beginning on or after 1 July 2007). This interpretation deals with changes in the estimated timing or amount of the outflow of resources required to settle the obligation, or a change in the discount rate. The Company will apply this IC Interpretation from financial periods beginning on 1 January 2008.

•

IC Interpretation 8 Scope of FRS 2 (effective for accounting periods beginning on or after 1 July 2007). This interpretation clarifies that FRS 2 Share-based Payment applies even in the absence of specifically identifiable goods and services. The Company will apply this IC interpretation from financial periods beginning on 1 January 2008.

Revenue recognition Initial service charge and management fee are recognised as income on an accrual basis at the rates provided for in the prospectus of unit trust funds and investment mandate of separately managed funds. Management fees comprises of management fees income and performance fee income. Management fee income is recognised on an accrual basis. Performance fee income is recognised on an accrual basis and is calculated in the event that the portfolio outperforms the benchmark as agreed between the Company and the client. Interest income from short term deposits, bankers acceptances and staff loans is recognised on an accrual basis.

42

5

INFORMATION ON THE COMPANY (CONTINUED)

5.5

Summary of significant accounting policies (continued) (c)

Property, plant and equipment Property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced asset is derecognised. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. Property, plant and equipment are depreciated on a straight line basis to write off the cost of the assets to their residual values over their estimated useful lives, summarised as follows: % Renovation 20 Furniture and fittings 10 Office equipment 10 Computer 20 to 33 1/3 Motor vehicles 20 Residual values and useful lives of assets are reviewed and adjusted if appropriate, at each balance sheet date. At each balance sheet date, the Company assesses whether there is any indication of impairment. If such indication exist, an analysis is performed to assess whether the carrying amount of the asset is fully recoverable. A write down is made if the carrying amount exceeds the recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount and are included in profit/(loss) from operations.

(d)

Intangible assets Computer software Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortised over their estimated useful lives. Costs associated with developing or maintaining computer software programmes are recognised as an expense when incurred. Costs that are directly associated with identifiable and unique software products controlled by the Company, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as intangible assets. Costs include employee costs incurred as a result of developing software and an appropriate portion of relevant overheads. Computer software development costs recognised as assets are amortised using the straight line method over their estimated useful lives, not exceeding a period of 3 years.

(e)

Subsidiary Investments in subsidiary is shown at cost. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. See paragraph 5.5(g) on impairment of assets. On disposal of an investment, the difference between net disposal proceeds and its carrying amount is charged / credited to the income statement. Consolidated financial statements incorporating the financial statements of the subsidiary referred to in paragraph 5.6.11 have not been presented as the Company is exempted under FRS 127, Consolidated and Separate Financial Statements from presenting consolidated financial statements.

(f)

Investments Investments in other non-current investments are shown at cost and an allowance for diminution in value is made where, in the opinion of the Directors, there is a decline other than temporary in the value of such investments. Where there has been a decline other than temporary in the value of an investment, such a decline is recognized as an expense in the period in which the decline is identified. Marketable securities or unit trusts are carried at the lower of cost and market value. Market value is calculated by reference to quoted or published selling prices at the close of business on the balance sheet date. Increases/decreases in the carrying amount of marketable securities or unit trusts are credited/charged to the income statement. On disposal of an investment, the difference between net disposal proceeds and its carrying amount is charged/credited to the income statement.

43

5

INFORMATION ON THE COMPANY (CONTINUED)

5.5

Summary of significant accounting policies (continued) (g)

Impairment of non-financial assets Assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment. Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the asset exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

(g)

Impairment of non-financial assets (continued) The impairment loss is charged to the income statement unless it reverses a previous revaluation in which case it is charged to the revaluation surplus. Impairment losses on goodwill are not reversed. In respect of other assets, any subsequent increase in recoverable amount is recognized in the income statement unless it reverses an impairment loss on a revalued asset in which case it is taken to revaluation surplus.

(h)

Operating leases Leases of assets where a significant portion of the risk and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the income statements on the straight line basis over the lease period.

(i)

Non-current assets classified as assets held for sale Non-current assets are classified as assets held for sale and stated at the lower of carrying amount and fair value less costs to sell if their carrying amount is recovered principally through a sale transaction rather than through a continuing use.

(j)

Trade receivables Trade receivables are carried at invoiced amount less an allowance for doubtful debts. The allowance is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of receivables. Bad debts are written off when identified.

(k)

Cash and cash equivalents For the purpose of the cash flow statement, cash and cash equivalents comprise cash in hand, bank balances, demand deposits and other short-term, highly liquid investment with original maturities of three months or less.

(l)

Income tax Current tax expense is determined according to Malaysian tax laws and include all taxes based upon the taxable profits. Deferred tax is recognised in full, using the liability method, on temporary differences arising between the amount attributable to assets and liabilities for tax purposes and their carrying amount in the financial statements. However, deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences or unused tax losses can be utilised. Deferred tax is recognized on temporary differences arising on investments in subsidiary except where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and tax laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

44

5

INFORMATION ON THE COMPANY (CONTINUED)

5.5

Summary of significant accounting policies (continued) (m)

Employment benefits Short term employee benefits The Company recognizes a liability and an expense for bonuses and profit-sharing, based on a formula that takes into consideration the profit attributable to the Company’s shareholders after certain adjustments. The Company recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation. Wages, salaries, paid annual leave and sick leave, bonuses and non-monetary benefits are accrued in the period in which the associated services are rendered by employees of the Company. Post-employment benefits The Company’s contributions to the Employee Provident Fund is charged to the income statement in the period to which they relate. Once the contributions have been paid, the Company has no further payment obligations. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available. Share based compensation The ultimate holding company of the Company operates an equity-settled, share-based compensation plan for the Directors of the Company. Employee services received in exchange for the grant of the share options is recognised as an expense in the income statement over the vesting periods of the grant with a corresponding increase in equity. The total amount to be expensed over the vesting period is determined by reference to the fair value of the share options granted, excluding the impact of any non-market vesting conditions (for example, profitability and sales growth targets). Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. At each balance sheet date, the Group revises its estimates of the number of share options that are expected to vest. It recognises the impact of the revision of original estimates, if any, in the income statement, with a corresponding adjustment to equity. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised. As allowed in the transitional provisions for FRS 2, the Company has elected not to apply FRS 2 to those equity settled share options which were granted: (i) (ii)

(n)

Before 31 December 2004 After 31 December 2004 but had vested before 1 January 2006

Contingent liabilities The Company does not recognize a contingent liability but discloses its existence in the financial statements. A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in the extremely rare case where there is a liability that cannot be recognized because it cannot be measured reliably.

(o)

Foreign currencies Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.

45

5

INFORMATION ON THE COMPANY (CONTINUED)

5.5

Summary of significant accounting policies (continued) (p)

Financial instruments Description A financial instrument is any contract that gives rise to both a financial asset of an enterprise and a financial liability or equity instrument of another enterprise. A financial asset is an asset that is cash, a contractual right to receive cash or another financial asset from another enterprise, a contractual visit to exchange financial instruments with another enterprise under conditions that are potentially favourable, or an equity instrument of another enterprise. A financial liability is any liability that is contractual obligation to deliver cash or another financial asset to another enterprise, or to exchange financial instruments with another enterprise under conditions that are potentially unfavourable. The particular recognition method adopted financial instruments recognized on the balance sheet is disclosed in the individual accounting policy statements associated with each item. The fair value of publicly traded securities is based on quoted market prices at the balance sheet date. The face values of financial assets and financial liabilities with a maturity period of less than one year are assumed to approximate their fair values.

(q)

Critical accounting estimates and judgements Estimates and judgements are continually evaluated by the Directors and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revenue recognition The Company estimates the revenue derived from the performance of certain portfolios of funds under management against their respective benchmark. The performance fee is calculated in the event that the portfolio outperforms the benchmark and each calculation differs based on criteria stated in the respective Investment Management Agreements. Performance fee is calculated at the end of the financial year and is recognised on an accrual basis. Upon agreement with the investors and receipt of actual performance fee, the estimated performance fee would be revised accordingly.

5.6

Notes to the financial statements for the financial year ended 31 December 2006

5.6.1

General information The principal activities of the Company consist of the establishment and the management of unit trust funds and fund management business. There was no significant change in the nature of these activities during the financial year. The unit trust funds managed by the Company during the financial year are Future Goals Fund, Balanced Returns Fund, Income Plus Fund, Lifetime Bond Fund, Lifetime Dana Mubarak Fund, Lifetime Dana Barakah Fund, Steady Returns Bond Fund, Steady Returns Bond Fund 2, CT Institutional Bond Fund, Strategic Bond Fund, Xcess Cash Fund, Hidden Treasures Fund, Lifetime Dana Wafiq, Global Titans Fund, Hidden Values Fund, Lifetime Dana Fayyad, Xcess Income Fund, Asia Pacific Adil Fund, Multi Maturity Income Fund, CT Institutional Bond Fund 2 and Global Asset Spectra Fund. The Company also provides investment management and advisory services to leading corporate, insurance, pension and unit trust funds and Government institutions. These services involve the Company making allocations and purchase and sales decision in relation to a wide range of financial instruments. Financial assets and liabilities in these unit trust funds and institutional client mandates are held under a fiduciary capacity and are not included in the financial statements of the Company. As at 31 December 2006, the Company had net financial assets under administration before distribution amounting to RM7,350,210,491. The Company is a limited liability company, incorporated and domiciled in Malaysia. The holding company is CIMB Group Sdn. Bhd. and the Directors regard Bumiputra-Commerce Holdings Berhad as the company’s ultimate holding company. Both companies are incorporated in Malaysia. The Company’s registered office is located at 5th Floor, Bangunan CIMB, Jalan Semantan, Damansara Heights, 50490 Kuala Lumpur, Malaysia. The Company’s principal place of business is located at Level 5, Menara Milenium, 8, Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur.

46

5

INFORMATION ON THE COMPANY (CONTINUED)

5.6

Notes to the financial statements for the financial year ended 31 December 2006 (continued)

5.6.2

Financial risk management The Company’s income is mainly derived from management fees based on the market value of the portfolio managed by the Company. As such, the Company’s activities expose it to a variety of financial risks, including operational risk, market risk, price risk, credit risk and interest rate risk. Financial risk management is carried out mainly through risk reviews and internal control systems. (a)

Operational risk Operational risk includes risks that arise from internal processes of an organization. These may result from inadequacies or failure in processes, controls or projects due to fraud, unauthorised activities, error, omission, inefficiency, systems failure or from external events. In order to reduce or mitigate these risks, the Company has established and maintained various control mechanisms at different levels throughout the organisation to ensure that operational policies and procedures are being followed.

(b)

Market, price and credit risks The Company is exposed to market, price and credit risks due to the nature of its business of managing unit trust funds. Market risk is the risk that the value of the portfolio will fluctuate as a result of changes in market prices caused by factors specific to the individual security or its issuer or factors affecting all securities traded in the market. Price risk is the sensitivity of portfolio value to changes in interest rates and changes in equity market prices. Credit risk is the risk that the value of the portfolio will fluctuate as a result of changes in credit ratings and bond issuer defaulting in payments. In managing the funds, the Company has an effective, comprehensive investment structure, risk management process and sophisticated investment and risk management tools. The Company manages the price risk through the exposure limit set by the Investment Panel Committee and may participate in futures and option contracts to help reduce equity price risk. The Company reports to the Investment Panel Committee on a regular basis on the status of the portfolio and investment strategy. The Investment Panel Committee oversees the funds’ exposure to price risk and ensures that the investment objectives of the funds are met and within the defined limits. The investment strategies, which include the assets allocation and exposure limits, are governed by the Deed and Securities Commission’s Guidelines.

(c)

Interest rate risk Interest rate risk is the risk that the value of the portfolio will fluctuate due to changes in market interest rates. The following table summarises the Company’s exposure to interest rate risk. Included in the table are the Company’s assets and liabilities at their full carrying amounts, categorised by the earlier of contractual repricing or maturity dates. As interest rates and yield curves change over time, the Company may be exposed to a loss in earnings due to the effects of interest rates on the structure of the balance sheet. Sensitivity to interest rates arises from mismatches in the repricing dates, cash flows and other characteristics of the assets and their corresponding liability funding.The Company’s income is mainly derived from management fees based on the market value of the unit trust funds. As such, the Company’s activities expose it to a variety of financial risks, including operational risk, market risk, price risk, credit risk and interest rate risk. Financial risk management is carried out mainly through risk reviews and internal control systems.

47

5

INFORMATION ON THE COMPANY (CONTINUED)

5.6

Notes to the financial statements for the financial year ended 31 December 2006 (continued)

5.6.2

Financial risk management (continued) (c)

Interest rate risk (continued)

Financial assets Cash in hand Cash at bank Short term deposit Trade receivables Non trade receivables and deposits Amount due from ultimate holding company Amount due from a subsidiary company Amount due from a related company Total financial assets

Financial liabilities Trade payables Non-trade payables and accruals Amount due to holding company Total financial liabilities Current tax liabilities Total financial liabilities

Net interest gap

(c)

31 December 2006 Noninterest bearing Total RM RM

Up to 1 year RM

1-5 years RM

Over 5 years RM

13,752,633 -

-

-

3,758 4,533,370 26,045,085

3,758 4,533,370 13,752,633 26,045,085

-

-

-

3,135,471

3,135,471

-

-

-

3,633

3,633

-

-

-

376,233

376,233

──────── 13,752,633 ════════

──────── ════════

──────── ════════

899,966 ──────── 34,997,506 ════════

899,966 ──────── 48,750,139 ════════

31 December 2006 Noninterest bearing Total RM RM

Up to 1 year RM

1-5 years RM

Over 5 years RM

──────── ──────── ════════

──────── ──────── ════════

──────── ──────── ════════

20,463,614 5,249,798 782,839 ──────── 26,496,251 752,954 ──────── 27,249,205 ════════

20,463,614 5,249,798 782,839 ──────── 26,496,251 752,954 ──────── 27,249,205 ════════

13,752,633 ════════

════════

════════

7,748,301 ════════

21,500,934 ════════

Interest rate risk (continued)

The table below summarises the weighted average interest rates per annum of interest bearing financial assets as at 31 December 2006. % Financial assets Deposits with a related licensed bank Deposits with other licensed banks

3.16 3.47 ══════

48

5

INFORMATION ON THE COMPANY (CONTINUED)

5.6

Notes to the financial statements for the financial year ended 31 December 2006 (continued)

5.6.3

Revenue Revenue comprises the following: RM Initial service charge

18,769,875

Net management fees

37,652,794

Interest income

416,577 ───────── 56,839,246 ═════════

5.6.4

Staff costs RM Wages, salaries & bonus Contribution to Employee Provident Fund Other employee benefits

10,603,800 1,271,384 1,423,480 ───────── 13,298,664 ═════════

5.6.5

Profit before taxation The following items have been charged in arriving at profit before taxation: RM Auditor’s remuneration

42,000

Directors’ remuneration: - emoluments

912,428

- fees

51,000

Hire of equipment

69,452

Property, plant and equipment written off

49,150 ═════════

5.6.6

Taxation (a) Tax charge for the year RM Current tax Deferred tax (note 5.6.8)

3,470,833 (30,598) ──────── 3,440,235 ════════

49

5

INFORMATION ON THE COMPANY (CONTINUED)

5.6

Notes to the financial statements for the financial year ended 31 December 2006 (continued)

5.6.6

Taxation (continued) (b) Numerical reconciliation of income tax expenses The explanation of the relationship between tax charge and profit before taxation is as follows: RM Profit tax before taxation

11,418,679 ════════

Tax calculated at the rate of 28%

3,197,230

Tax effects of: - expenses not deductible for tax purposes - others

263,974 (20,969) ────────

Tax charge

3,440,235 ════════

5.6.7

Share capital RM Authorised: Ordinary shares of RM1 each

10,000,000 ═════════

Issued and fully paid: Ordinary shares of RM1 each

7,000,000 ═════════

5.6.8

Deferred taxation At 1 January 2006 Transfer to income statement (note 5.6.6) Transfer from a fellow subsidiary company

320,867 30,598 ─────────

At 31 December 2006

290,269 ═════════

The amount during the year relating to deferred taxation is as follows: Deferred tax liabilities Property, plant and equipment Receivables

262,022 28,247 ───────── 290,269 ═════════

50

5

INFORMATION ON THE COMPANY (CONTINUED)

5.6

Notes to the financial statements for the financial year ended 31 December 2006 (continued)

5.6.9

Property, plant and equipment The details of property, plant and equipment are as follows:

Renovation RM

Furniture and fittings RM

Office equipment RM

Computer RM

Motor vehicles RM

Total RM

Net book value At 1 January 2006 Additions Write-off Disposals Depreciation charge At 31 December 2006

499,485 480,861 455,181 183,502 583,509 2,202,538 187,660 83,080 150,284 237,463 623,300 1,281,787 (13,083) (1,666) (2,242) (3,450) (20,441) (40,901) (8,249) (49,150) (171,750) (71,627) (91,126) (169,378) (218,128) (722,009) ──────── ──────── ──────── ──────── ──────── ──────── 461,411 482,399 512,097 248,137 988,681 2,692,725 ════════ ════════ ════════ ════════ ════════ ════════

At 31 December 2006 Cost Accumulated depreciation Net book value

5.6.10

851,759 675,035 897,182 1,126,542 1,382,224 4,932,742 (390,348) (192,636) (385,085) (878,405) (393,543) (2,240,017) ──────── ──────── ──────── ──────── ──────── ──────── 461,411 482,399 512,097 248,137 988,681 2,692,725 ════════ ════════ ════════ ════════ ════════ ════════

Intangible assets Computer software RM Net book value At 1 January 2006 Additions Amortisation charge At 31 December 2006

433,811 107,798 (231,303) ──────── 310,306 ════════

At 31 December 2006 Cost Accumulated amortisation Net book value

5.6.11

1,584,281 (1,273,975) ──────── 310,306 ════════

Subsidiary RM Investment in subsidiary at cost: - unquoted shares

2,332,002 ═════════

51

5

INFORMATION ON THE COMPANY (CONTINUED)

5.6

Notes to the financial statements for the financial year ended 31 December 2006 (continued)

5.6.11

Subsidiary (continued) Details of the subsidiary are as follows: Name of subsidiary

Effective

Principal

equity interest

activity

100%

Dormant

CIMB-Principal Asset Management (S) Pte Ltd 5.6.12

Other investments RM Quoted unit trust fund: - at cost

1,701,030 ═════════

At market value

1,686,497 ═════════

The Directors are of the opinion that no allowance for diminution in value is necessary as the decline in the value of investment is temporary in nature. 5.6.13

Trade receivables RM Amount due from trustees for cancellation of units

7,062,035

Management fees receivable

5,809,891

Amount due from agents from sale of units

5,754,756

Advances for EPF sales

5,497,818

Others

1,920,585 ───────── 26,045,085 ═════════

Trade receivables are denominated in Ringgit Malaysia and the credit terms range from 7 to 30 days. 5.6.14

Non-trade receivables, deposits and prepayments RM Interest receivable Deposit and prepayments Other receivables

100,883 1,391,213 1,643,375 ───────── 3,135,471 ═════════

52

5

INFORMATION ON THE COMPANY (CONTINUED)

5.6

Notes to the financial statements for the financial year ended 31 December 2006 (continued)

5.6.15

Trade payables RM Amount due to trustees for creation of units

10,347,747

Amount due to unit holders for redemption of units

7,787,382

Commission & brokerage fees payable to agents

1,998,756

Management fee payable

311,846

Others

17,883 ───────── 20,463,614 ═════════

5.6.16

Non-trade payables RM Accrued expenses

4,616,666

Sundry payables

633,132 ───────── 5,249,798 ═════════

5.6.17

Significant related party transactions and balances (a)

Related parties and relationship The related parties and their relationship with the Company are as follows:

(b)

Related party

Relationship

Bumiputra-Commerce Holdings Berhad

Ultimate holding company

CIMB Group Sdn Bhd

Holding company

CIMB Investment Bank Berhad

Related company

CIMB Bank Berhad

Fellow subsidiary company

CIMBS Sdn Bhd

Fellow subsidiary company

CIMB Nominees (Tempatan) Sdn Bhd

Fellow subsidiary company

Commerce Asset Fund Managers Sdn Bhd

Fellow subsidiary company

CIMB-Principal Asset Management (S) Pte Ltd

Subsidiary company

Significant related party transactions RM

Income: Interest income received and receivable from a CIMB Bank Berhad

313,305

════════

53

5

INFORMATION ON THE COMPANY (CONTINUED)

5.6

Notes to the financial statements for the financial year ended 31 December 2006 (continued)

5.6.17

Significant related party transactions and balances (continued) (b)

Significant related party transactions (continued) RM

Expenditure: Management fees paid and payable to a Commerce Asset Fund Managers Sdn Bhd Brokerage fees paid and payable to CIMB Bank Berhad

3,615,639

Commissions paid and payable to Bumiputra-Commerce Bank Berhad

631,508

Commissions paid and payable to Bumiputra-Commerce Holdings Berhad

371,052 ════════

The terms of the above transactions are established based on prices agreed between the Company and its related parties. (c) Significant related party balances Included in the Company’s balance sheet are the following significant related party balances arising from normal business transactions: RM Amount owing from a subsidiary company: CIMB-Principal Asset Management (S) Pte Ltd Amount owing from a related company: CIMB Investment Bank Berhad Amount owing to a related company: CIMB Bank Berhad Deposits with CIMB Bank Berhad

376,233 800,000 (411,160) 11,678,633 ═════════

The amounts owing from/(to) related company, holding company, and ultimate holding company are unsecured, interest free and repayable on demand. (c) Significant related party balances Included in the Company’s balance sheet are the following significant related party balances arising from normal business transactions: RM Amount owing from a subsidiary company: CIMB-Principal Asset Management (S) Pte Ltd Amount owing from a related company: CIMB Investment Bank Berhad Amount owing to a related company: CIMB Bank Berhad Deposits with CIMB Bank Berhad

376,233 800,000 (411,160) 11,678,633 ═════════

54

5

INFORMATION ON THE COMPANY (CONTINUED)

5.6

Notes to the financial statements for the financial year ended 31 December 2006 (continued)

5.6.17

Significant related party transactions and balances (continued) The amounts owing from/(to) related company, holding company, and ultimate holding company are unsecured, interest free and repayable on demand.

5.6.18

Cash and cash equivalents Cash and cash equivalents included in the cash flow statement comprise the following: RM Deposits with a related licensed bank Deposits with other licensed banks Cash and bank balances

11,678,633 2,074,000 4,537,128 ───────── 18,289,761 ═════════ The deposits of the Company have an average maturity period of 71 days. Bank balances are deposits held at call with banks. 5.6.19

Fair value of financial instruments Fair value is the amount at which a financial asset could be exchanged or a financial liability settled, between knowledgeable and willing parties in an arm length’s transaction. The carrying amounts of all financial assets and liabilities of the Company at the balance sheet date approximated their fair values. The following methods and assumptions were used to estimate the fair value: (a)

Quoted unit trust fund The fair value of investment in quoted unit trust fund is determined based on quoted or published selling prices at the close of business on the balance sheet date.

(b)

Short term deposits The fair value of short term deposits is taken to approximate its carrying value as the maturities are less than 12 months.

(c)

Amounts due to/from ultimate holding company and related companies The fair value amounts due to/from ultimate holding company and related companies is taken to approximate their carrying values as the amounts are repayable on demand.

5.6.20

Significant post balance sheet event On 5 December 2006, the Company entered into an agreement with BHL Ventures Berhad and BHLB Asset Management to acquire 100% equity interests in CIMB Wealth Advisors Sdn Bhd (“CIMB WA”) and SBB Asset Management Sdn Bhd (“SBBAM”) for a total cash consideration of RM481 million (“Proposed Acquisition”). The purchase consideration was arrived based on a willing buyer-willing seller basis; after taking into consideration the assets under management of CIMB WA and SBBAM as well as the agency distribution network of CIMB WA. The said transaction was completed on 7 February 2007. Pursuant to the Proposed Acquisition, the Company’s authorised share capital was increased from RM10 million to RM200 million on 7 February 2007. The Proposed Acquisition will be financed using internally generated funds derived from the issuance of rights issues to CIMB Group Sdn Bhd and Principal International (Asia) Ltd.

55

5

INFORMATION ON THE COMPANY (CONTINUED)

5.6

Notes to the financial statements for the financial year ended 31 December 2006 (continued)

5.6.21

Option reserve Executive employee share option scheme The share options granted to Directors and employees of the company are that of the company’s ultimate holding company, Bumiputera Commerce Holdings Berhad (“BCHB”). The terms of the share options granted are disclosed in Note 5.6.22. Movements in the number of share options outstanding and their related weighted average exercise prices for share options captured under FRS 2, are as follows: Average exercise price RM/share

Options (units ‘000)

At start of financial year*

4.61

79.08

Exercised

4.61

(2.22)

────────

────────

At end of financial year

4.61

76.86

════════

════════

* Pursuant to the CIMBB Restructuring, all CIMBB share options have been converted to BCHB share options on the ratio of 1:1.146. The BCHB share options have been classified as balances at the start of the financial year as the option holders retain the right to exercise the options during the conversion period. The weighted average fair value of options granted under Tranche 4 of the ESOS 2005/2009 programme, which is deemed as an equity-settled payment under FRS 2 (“Share-based Payment”), determined using the Trinomial valuation model was RM1.50 per option. The significant inputs into the model were as follows: Valuation assumptions: - expected volatility - expected dividend yield - expected option life Weighted average share price at grant date Weighted average risk-free interest rate

28.45% 2.04% 5 years RM4.40 3.49%

The volatility measured at the standard deviation on daily share price returns is based on statistical analysis of daily prices over the last 1 year from grant date. Out of the outstanding options, 17,777 units of options were exercisable. The weighted average share price during the period, should the options have been exercised on a regular basis throughout the period was RM6.37 per share. The options outstanding at year end had exercise prices ranging from RM4.39 to RM4.84, and a weighted average remaining contractual life of 3 years. 5.6.22

Employee benefits Executive Employee Share Option Scheme (“EESOS”) The share options granted to Directors and employees of the company are that of the company’s ultimate holding company, Bumiputra-Commerce Holdings Berhad (“BCHB”). The Employee Share Option Scheme (“ESOS 2005/2009”) was granted on 11 March 2005 and is governed by the by-laws approved by BCHB shareholders on 8 September 2005. However, pursuant to the CIMBB Restructuring, the existing ESOS 2005/2009 was absorbed by a trust, set up to subscribe for all the remaining CIMBB shares through an accelerated vesting of the unexercisable tranches under the ESOS 2005/2009. The exercise price under the EESOS is the average of the mean market quotation of the shares of the Company as quoted in the Daily Official List issued by the Bursa Malaysia Securities Berhad for the five market days preceding the offer date, or the par value of the shares of the Company of RM1, whichever is the higher. Options granted are vested across different exercise periods on 11 March 2005, 30 December 2005, 30 December 2006, 30 December 2007, 30 December 2008 and will expire on 29 December 2009. The Group has no legal or constructive obligation to repurchase or settle the options in cash.

56

5

INFORMATION ON THE COMPANY (CONTINUED)

5.6

Notes to the financial statements for the financial year ended 31 December 2006 (continued)

5.6.22

Employee benefits (continued) The main features of the EESOS are as follows: •

The total number of ordinary shares issued by the Company under the EESOS shall not exceed 10% of the total issued and paid-up ordinary shares of the Company.

•

The subscription price of EESOS options shall be the higher of the weighted average market price of the Company’s shares for the five market days immediately preceding the date at which the EESOS options are granted to the employees, and the par value of the shares of the Company. Notwithstanding that, in the event the offer was made prior to the Company’s admission on the Main Board of the Malaysian Securities Exchange Berhad (“the Exchange”), the subscription price shall be the higher of the public issue offer price and the par value of the shares of the Company.

•

In the event of capital distribution, the subscription price and/or the number of new shares of the Company may be adjusted in such a manner as the Board of the Company in their discretion deem fair and reasonable.

•

The share options shall not carry any rights to vote at any general meeting of the Bank. The share option holders shall not be entitled to any dividends, rights or other entitlement on his unexercised share options.

•

Option holders are required to remain in the Group’s employment till the respective vesting dates for the relevant amount of options to vest in the hands of the holder.

Movements in the number of share options outstanding and their related weighted average exercise prices, for share options not captured under FRS 2, are as follows:

At start of financial year* Exercised At end of financial year

Average exercise price RM/share

Options (units ‘000)

3.50 3.76 ──────── 3.51 ════════

1,686 (8) ──────── 1,678 ════════

* Pursuant to the CIMBB Restructuring, all CIMBB share options have been converted to BCHB share options on the ratio of 1:1.146. The BCHB share options have been classified as balances at the start of the financial year as the option holders retain the right to exercise the options during the conversion period. The weighted average share price during the period, had the options have been exercised on a regular basis throughout the period was RM6.37 per share. The options outstanding at year end had exercise prices ranging from RM1.27 to RM4.39, and a weighted average remaining contractual life of 2 years. 5.7

Change in accounting policy The following describes the impact of new standards on the financial statements of the Company.

5.7.1

Adoption of FRS 2 “Share-based Payment” The adoption of FRS 2 has resulted in a change in the accounting policy for share-based payments. In previous years, the provision of share options to employees did not result in a charge to the income statement. Upon adoption of FRS 2, the Company recognises the fair value of such share options as an expense in the income statement over the vesting period of the grant with a corresponding increase in equity. 2006 RM The adoption of FRS 2 resulted in: Increase in staff cost Decrease in profit before taxation Decrease in profit attributable to shareholders

43,000 (43,000) (43,000) ════════

The new accounting policy has been applied retrospectively with comparatives restated in respect of options granted to employees after 31 December 2004 and which had not vested at the beginning of the period.

57

5

INFORMATION ON THE COMPANY (CONTINUED)

5.7

Change in accounting policy (continued)

5.7.1

Adoption of FRS 2 “Share-based Payment” (continued) Profit before taxation RM

31 December 2005 Staff cost RM Income statement items - As previously reported - ESOS expense

8,683,421 43,000 ───────── 8,726,421 ════════

- As restated 5.7.2

12,895,437 (43,000) ───────── 12,852,437 ════════

Profit attributable to shareholders RM 9,265,157 (43,000) ───────── 9,222,157 ════════

Adoption of FRS 138 “Intangible Asset” FRS 138 has resulted in the reclassification of computer software (that is not integral part of the computer hardware) from property, plant and equipment to intangible assets. The effect of the change of presentation to the balance sheet for prior period are as set out below:

Property, plant and equipment - as previously reported - reclassified computer software to intangible assets

2005 RM

2004 RM

2003 RM

2002 RM

2,636,349

1,356,140

1,760,695

1,623,728

(433,811) (371,989) (591,319) (475,625) ──────── ──────── ──────── ──────── 2,202,538 984,151 1,169,376 1,148,103 ════════ ════════ ════════ ════════

- as restated

The effect of this standard on the current year’s financial statements is an increase in intangible assets amounting to RM 310,306. 5.7.3

Revenue Previously, revenue of the Company represents value of units sold and cancelled and management fee. Sales value of units is recognised on the approval of a unitholder’s application and value from the cancellation of the units is recognised upon the approval by the Trustee. The Company ceased recognising the sale of units as revenue with effect from 1 January 2006 because the Company acts as a Manager of the unit trust funds it manages and is not exposed to significant benefits and risks associated with the sale of the units. Instead, the Company is entitled to the initial service charge and management fee based on the rates provided for in the prospectuses of the respective unit trust funds. This change in accounting policy is applied retrospectively and has affected the presentation of revenue in the financial statements. As a result, the prior year financial statements are restated from the amounts previously reported to conform with the change. The effect of the change of presentation to the Income Statement for the current and prior periods are as set out below:

Revenue - as previously reported - as restated

Year ended 31.12.2005 RM

Year ended 31.12.2004 RM

Year ended 31.12.2003 RM

Year ended 31.12.2002 RM

2,124,431,827 ═══════════

2,039,740,343 ═══════════

1,600,382,664 ═══════════

1,050,298,594 ═══════════

55,570,439 ═══════════

33,988,892 ═══════════

29,339,806 ═══════════

27,666,059 ═══════════

The revenue for the current year financial statements amounting to RM56,839,246 represents the initial service charge, management fees and interest income.

58

5

INFORMATION ON THE COMPANY (CONTINUED)

5.8

Subsequent financial statements No audited financial statements of the Company have been made up in respect of any period subsequent to 31 December 2006. Yours faithfully,

PRICEWATERHOUSECOOPERS (No. AF: 1146) Chartered Accountants

SRIDHARAN NAIR (No. 2656/05/08 (J)) Partner of the firm

59

Consent PricewaterhouseCoopers Taxation Services Sdn Bhd, PricewaterhouseCoopers and Mayban Trustees Berhad have contained herein their written consent to act in their respective capacity and have not subsequently withdrawn their consent to the inclusion of their names and/or letter/report in the form and context in which it appears in this prospectus.

60

Who is the Distributor of the Fund? The CIMB-Principal ASEAN Equity Fund is available from the following distributor and its branches: CIMB Wealth Advisors Berhad (209627-H) (Formerly known as SBB Mutual Berhad). Head Office 52 & 54, Jalan SS21/39 Damansara Utama 47400 Petaling Jaya Selangor Tel: (03) 7718 3000

61

Directors' Declaration This Prospectus has been seen and approved by the directors of CIMB-Principal and they collectively and individually accept full responsibility for the accuracy of all information contain herein and confirm that, after having made all enquiries which are reasonable in the circumstances, and to the best of their knowledge and belief, there are no other facts the omission of which would make any statement herein misleading.

Signed by the Directors:

Charon Wardini bin Mokhzani Noripah Hj Kamso Raja Noorma Binti Raja Othman Peter William England Harald F. Rueckle Rex Auyeung J C Tupling** Brig Gen (R) Dato’ Arif bin Dato’ Awang* Loong Chun Nee* Dato’ Anwar bin Aji* * Independent director ** Alternate director to Rex Auyeung

62

Appendix I – ETF risks Principal Risks Market Risk The net asset value will change with changes in the market value of the securities it holds. The price of units and the income from them may go down as well as up. Investors may not get back their original investment. Investment in the ETF involves risks similar to those of inherent in any fund of equity securities traded on an exchange, such as market fluctuations caused by factors like economic and political developments, changes in interest rates and foreign exchange. A significant decline in the value of the Index can therefore be expected to result in a similar decline in the net asset value of the units. Passive Investment The ETF is not actively managed. Accordingly, the fund may be affected by a decline in world market segments relating to the index. Tracking Error Risk Factors such as the fees and expenses of the ETF, imperfect correlation between the fund's assets and the index securities constituting the index, rounding of share prices, changes to the index and regulatory policies may affect the manager's ability to achieve close correlation with the performance of the index. The fund's returns may therefore deviate from the index. Concentration If the index comprises index securities that are concentrated in a particular group of stocks, industry or group of industries, the ETF may be adversely affected by the performance of those stocks and be subject to price volatility. In addition, if the fund is concentrated in a single stock, group of stocks, industry or group of industries, it may be more susceptible to any single economic, market, political or regulatory occurrence. Foreign Security Risk An investment in units of the ETF involves risks similar to those of investing in a broad-based portfolio of equity securities traded on exchanges in the relevant overseas securities market, including market fluctuations caused by factors such as economic and political developments, changes in interest rates and perceived trends in stock prices. The principal risk factors, which could decrease the value of your investment, are listed and described below: ƒ less liquid and less efficient securities markets; ƒ greater price volatility; ƒ exchange rate fluctuations and exchange controls; ƒ less publicly available information about issuers; ƒ the imposition of restrictions on the expatriation of funds or other assets of the ETF; ƒ higher transaction and custody costs and delays and risks of loss attendant in settlement procedures; ƒ difficulties in enforcing contractual obligations; ƒ lesser levels of regulation of the securities markets; ƒ different accounting, disclosure and reporting requirements; ƒ more substantial government involvement in the economy; ƒ higher rates of inflation; and ƒ greater social, economic, and political uncertainty and the risk of nationalization or expropriation of assets and risk of war or terrorism. Foreign Exchange Risk As the ETF’s investments are generally invested in other markets, such that a substantial portion of the revenue and income of the fund may be received in a currency other than the fund’s base currency, any fluctuation in the exchange rate of the US dollar relative to the relevant foreign currency will affect the net asset value of the ETF. Trading Risk The ETF is structured as an index fund and the net asset value of units of an index fund will fluctuate with changes in the market value of the index fund's holdings of securities and changes in the exchange rate between the US dollar and the subject foreign currency. The market prices of units will fluctuate in accordance with changes in net asset value and supply and demand on any exchange on which units are listed. The manager cannot predict whether units will trade below, at or above their net asset value. Price differences may be due, in large part, to the fact that supply and demand forces in the secondary trading market for units will be closely related, but not identical, to the same forces influencing the prices of the securities trading individually or in the aggregate at any point in time. Absence of prior active market Although application has been made for the units to be listed for trading on the stock exchange, there can be no assurance that an active trading market will be developed or be maintained. There is no certain basis for predicting the actual price levels at, or sizes in,

63

which units may trade. Further, there can be no assurance that investors in the units will experience trading or pricing patterns similar to those of market-traded shares which are issued by investment companies in other jurisdictions or which are based upon indices other than the index. Dealing Risk Following listing on the stock exchange, it is likely that the units will initially not be widely held. Accordingly any investor buying units in small numbers may not necessarily be able to find other buyers should that investor wish to sell. In order to address such dealing risk, a market maker has been appointed for trading of the units. Creation and Redemption through participating dealers only Investors may generally not create or redeem units and in any event can only create or redeem Units through participating dealers who are under no obligation to agree to do so on behalf of any investor. Each participating dealers may, in its absolute discretion, refuse to accept a creation order from an investor and can charge such fees as it may determine. If an investor has been allowed to create units through a participating dealers, such investor may only request a redemption of the units through the same participating dealers and the relevant participating dealers may, in its absolute discretion, refuse to accept a redemption request from an investor. The willingness of a participating dealers to redeem units may depend upon, but is not limited to, that participating dealers ’s ability to sell the relevant index securities as well as any agreement which may be reached between the investor and the participating dealers. In addition, participating dealers will not be able to create or redeem units if some other event occurs which impedes the calculation of the net asset value of the fund or disposal of the ETF’s portfolio securities cannot be effected. Risk of investment diminution The value of the securities which the ETF invest may go down as well as go up. Stock values could decline generally or could underperform other types of investments. Investors may not get back their original investment. Risk inherent in index securities As the ETF invests in index securities, the price of units may fluctuate in response to changes in interest rates, foreign exchange, economic and political conditions and the financial condition of issuers of the index securities. Lack of discretion by manager to adapt to market changes The index securities held by the fund will passively reflect the distribution of companies whose securities are included in the index. Therefore, adverse changes in the financial condition or share performance of any company included in the index will not result in the sale of the shares of such company, and will be likely to affect adversely the ETF’s value and the trading price of the units. The manager will have limited discretion to remove the securities of such company from the fund. Units may trade at prices other than at net asset value The net asset value of the fund represents the fair price for buying or selling units. As with any listed fund, the secondary market price of units may sometimes trade above or below net asset value. There is a risk, therefore, that unitholders may not be able to buy or sell at a price close to this net asset value. The deviation from net asset value is dependent on a number of factors, but will be accentuated when there is a large imbalance between market supply and demand for units. However, given that the units can be created and redeemed in creation and redemption unit sizes by participating dealers, as applicable, it is not anticipated that large discounts or premiums will be sustained. Trading in units on the stock exchange may be suspended Investors will not be able to purchase or sell units on the stock exchange during any period that the stock exchange suspends trading in the units. The stock exchange may suspend the trading of units whenever the stock exchange determines that it is appropriate in the interests of a fair and orderly market to protect investors. The creation and redemption of units will also be suspended in the event that the trading of units on the stock exchange is suspended. The stock exchange imposes certain requirements for the continued listing of securities, including the units, on the stock exchange. Investors cannot be assured that the ETF will continue to meet the requirements necessary to maintain the listing of units on the stock exchange or that the stock exchange will not change the listing requirements. The ETF may be terminated if units are delisted from the stock exchange. The ETF is different from a typical unit trust Investors should note that the ETF is not like a typical unit trust offered to the public in Malaysia. Units may only be created and redeemed in application unit sizes by participating dealers and units may not be subscribed for, or redeemed, directly by investors. Participating dealers will not be able to create or redeem units during any period when, amongst other things, dealings on the stock exchange is restricted or suspended, settlement or clearing of securities is disrupted or the index is not compiled or published. Investors may generally only realise the value of their units by selling their units on the stock exchange. These features are not usually present in a typical unit trust offered to the public in Malaysia, where units can generally be purchased and redeemed directly by the public.

64

Minimum creation and redemption size Units will normally only be issued or redeemed in creation unit or redemption unit size. Investors who do not hold redemption unit size aggregates may only be able to realise the value of their units by selling their units on the stock exchange. Investing in derivatives As the ETF may invest in derivatives, it may be subject to risks associated with such investments. Investments in derivatives may require the deposit of initial margin and additional deposit of margin on short notice if the market moves against the investment positions. If no provision is made for the required margin within the prescribed time, the fund's investments may be liquidated at a loss. Therefore, it is essential that such investments in derivatives be monitored closely. The manager has the necessary controls for investment in derivatives and has in place systems to monitor any derivative positions for the fund. Use of futures and options contracts involve certain risks The manager may use futures and options contracts for the purpose of hedging and achieving the ETF's investment objective. The manager may invest the fund's assets in futures and options contracts in order to try to minimise tracking error between the index and the value of the fund. There is no guarantee that such techniques will achieve their desired result. There are certain investment risks in using futures and options contracts. Such risks may include: (i) the inability to close out a futures and options contracts caused by the non-existence of a liquid secondary market; and (ii) an imperfect correlation between price movements of the futures and options contracts with price movements of the index securities. Further, the risk of loss in trading futures and options contracts is potentially great, due to both the low margin deposits required, and the extremely high degree of leverage involved in futures pricing. As a result, a relatively small price movement in a futures and options contract may result in immediate and substantial loss (or gain) to the fund. Minimum Fund Size The ETF is structured as an index fund with a low total expense ratio. As with any fund, in order to remain viable, the size of the fund must be sufficient to cover at least its fixed operating costs; given the relatively low fees charged to and payable by the fund, this means, that the minimum size of the fund needs to be significantly larger than other typical unit trust. Registration or cross-listing of Fund in other markets There is a likelihood that the fund may in the future be registered on other markets, or cross-listed on other exchanges, or otherwise offered in other jurisdictions. As this is expected to improve the liquidity for existing unitholders and result in more efficient secondary market pricing due to increased scope for arbitrage, the manager may be permitted by the trustee to charge the related costs to the fund.

Risk Factors Relating to the index Errors or inaccuracies in the index There may be inaccuracies, errors, omissions or mistakes in the compilation or calculation of the index, which may result in significant deviations between the net asset value of the units and the index. The manager and the trustee are not responsible or involved in the compilation or calculation of the index, and thus cannot be held responsible or liable for any inaccuracies, errors, omissions or mistakes in such compilation or calculation. Index is subject to fluctuations The performance of the units should correspond closely with the performance of the index. The index may experience periods of volatility in the future. If the index experiences volatility or declines, the price of the units will vary or decline accordingly. Composition of and weightings in the index may change The securities which comprise the index are changed from time to time. The price of the units may rise or fall as a result of such changes. The composition of the index may also change if one of the constituent companies were to delist its securities or if a new eligible company were to list its securities and be added to the index. If this happens, the weighting or composition of the index securities invested by the fund would be changed as considered appropriate by the manager in order to achieve the investment objective. Thus, an investment in units will generally reflect the index as its constituents change from time to time, and not necessarily the way it is comprised at the time of an investment in the units. License to use the index may be terminated The manager has been granted a licence to use the index in connection with the operation, marketing and promotion of the ETF. Any such replacement index will be notified to unitholders. Compilation of the index No warranty, representation or guarantee is given as to the accuracy or completeness of the index and its computation or any information related thereto. The process and the basis of computing and compiling the Index and any of its related formula, constituent companies and factors may at any time be changed or altered by index provider.

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CIMB-Principal ASEAN Equity Fund Application Form

CIMB-Principal ASEAN Equity Fund Application Form Please complete this form in BLOCK letters using BLACK ink. To be accepted, individual and joint applicant (if any) must provide a copy of identity card, passport or other identification. Corporate applicants must provide a certified copy of Memorandum and Articles of Association, certified true copy of a Board Resolution appointing the Authorised Signatories and Specimen Signatures. Please make your account payee cheque payable to “CIMB-Principal Asset Management Berhad A/C 1”. Please send with the relevant particulars to: CIMB-Principal Asset Management Berhad, Lot 5-02, Level 5, Menara Milenium, 8, Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur PLEASE INDICATE WHEREVER REQUIRED.

Investor Details Are you an existing CIMB-Principal investor? For joint applicants (if applicable):

No

Yes

Investor No.

Both applicants to sign for all transactions

Either applicants to sign for all transactions

Note: Non-indication of the operating mandate will be automatically defaulted to either one of the applicants to sign.

Particulars of Individual Applicant Title

Name (underline surname)

Date of Birth (dd/mm/yy)

Nationality

NRIC/Passport No.

Occupation

Race

Preferred reading language Bahasa Chinese Malaysia

English

Mother’s maiden name (This is a security feature) Bumiputera

Chinese

Indian

Others

Particulars of Joint Applicant (if any) Title

Name (underline surname)

Date of Birth (dd/mm/yy)

Nationality

NRIC/Passport No.

Occupation

Race Bumiputera

Chinese

Indian

Others

Particulars of Corporate Account Name of Company

Company Registration No.

Country of Incorporation

Nature of Business

Contact Person

Status Bumiputera Controlled

Non-Bumiputera Controlled

Non-Malaysian Controlled

Contact Details Address of First Applicant/Company (For existing investors, kindly fill in if there is a change in address/contact number)

Contact numbers

Work

Home

Mobile

E-Mail

In the event that you would like to have the option of taking up a loan to finance your investment(s) in the Fund(s), please refer to the application form for the "Unit Trust Loan Financing Risk Disclosure Statement" to understand the implications of this option and sign your acknowledgement.

Investment Amount Please make cheque payable to “CIMB-Principal Asset Management Berhad A/C 1”. Please select and indicate the amount you wish to invest: Total Investment

RM

Investment Payment Instructions Cheque/Banker’s Draft/Money Order/Cashier’s Order

Bank branch

Cheque No.

Cash (for applications at CIMB Bank or any CIMB-Principal approved banks) Debit Bank Account No.

(For Distributors use only)

Bank branch

Bank

Easy Investment Plan I would like to invest the following amount each month for the following period: Monthly Investment Amount RM

My monthly investment will be paid by:

For

Months

Post-dated cheques (minimum 6 - please attach)

Standing instructions

(Please indicate the months that you would like to invest your EIP)

Debit Bank Account No.

Bank

General Declaration and Signature(s) I/we have read and understood the prospectus to which this application relates and agree, consent and acknowledge the declarations, conditions and acknowledgements provided at the bottom and declare that all the details given in this application are true and correct.

Individual Applicant signature/Company stamp

Joint Applicant signature

Date

Date

Declarations, conditions and acknowledgements By completing the application form you: • Affirm that you are not an undischarged bankrupt and that as at the date hereof no bankruptcy proceedings have been commenced against you; • Agree to be bound by the provisions of the Deed for CIMB-Principal ASEANEquity Fund; • Acknowledge that the Trustee is entitled to deduct taxes paid (or payable) from any amount withdrawn; • Consent to the payment of commission to Approved Distributors; • Consent to CIMB-Principal Asset Management Berhad providing your financial adviser with personal investment details; • Consent to CIMB-Principal Asset Management Berhad withdrawing any investment falling below the minimum balance; • Acknowledge that the application attached to this prospectus and the declarations and acknowledgements made herein cover future applications and switch requests; • Acknowledge that future investment will be made into the Fund unless otherwise directed; • Acknowledge that there may be changes to the investment options or other changes within the Fund (including the addition of investment options) which, in the case of significant changes will be notified by CIMB-Principal Asset Management Berhad sending all relevant information to your registered address; • Acknowledge that an investment in the Fund does not represent either a deposit with or liability of CIMB-Principal Asset Management Berhad, member companies of the CIMB Group or Principal Financial Group and the Trustee does not guarantee the repayment of capital; • Accept that in the case of joint unit holders, all correspondence and payments will be sent to the first registered unit holder; • Accept that in relation to using, CIMB-Principal Online and any new services which CIMB-Principal Asset Management Berhad may introduce in the future, you will be sent a Personal Identification Number (“PIN”) and that you are responsible for the confidentiality of your PIN; • Acknowledge that access of, CIMBPrincipal Online and any new services which CIMB-Principal Asset Management Berhad may introduce in the future, will be given to any person who uses your PIN or complies with any other security procedures which may be instituted by CIMB-Principal Asset Management Berhad from time to time; • Consent to CIMB-Principal Asset Management Berhad suspending access or canceling CIMB-Principal Online and any new services which CIMB-Principal Asset Management Berhad may introduce in the future, at any time without notice; • Acknowledge that the services under CIMB-Principal Online and any new services which CIMB-Principal Asset Management Berhad may introduce in the future may not be available to all investors but only to clients of selected approved distributors; and • Acknowledge that any recommendation made to you, if any, is based on accurate and complete information supplied by yourself to the advisor. CIMB-Principal will not be held liable for any investment losses suffered by yourself due to reliance on any recommendation made if it is found that the information provided by you is inaccurate or incomplete. CIMB-Principal Asset Management Berhad may vary these conditions at any time after giving you notice in writing

CIMB-Principal Office/Distributors Use Only Agent Code

Agent Name

NRIC/Passport sighted and copy made

Acknowledge receipt of payment

Agent signature

Branch stamp

Date of payment

Lead Generator Details Name

Branch

Staff ID

Unit Trust Loan Financing Risk Disclosure Statement

Investing in a unit trust scheme with borrowed money is more risky than investing with your own savings. You should assess if loan financing is suitable for you in light of your objectives, attitude to risk and financial circumstances. You should be aware of the risks, which would include the following – 1. The higher the margin of financing (that is, the amount of money you borrow for every Ringgit of your own money that you put in as deposit or down payment) the greater the potential for losses as well as gains. 2. You should assess whether you have the ability to service the repayments on the proposed loan. If your loan is a variable rate loan, and if interest rates rise, your total repayment amount will be increased. 3. If unit prices fall beyond a certain level, you may be asked to provide additional acceptable collateral or pay additional amounts on top of your normal instalments. If you fail to comply within the time prescribed, your units may be sold to settle your loan. 4. Returns on unit trusts are not guaranteed and may not be earned evenly over time. This means that there may be some years where returns are high and other years where losses are experienced instead. Whether you eventually realize a gain or loss may be affected by the timing of the sale of your units. The value of units may fall just when you want your money back even though the investment may have done well in the past. 5. Given the nature of the Fund’s expected returns, marginal financing will not be appropriate. The brief statement cannot disclose all the risks and other aspects of loan financing. You should therefore carefully study the terms and conditions before you decide to take the loan. If you are in doubt in respect of any aspect of this Risk Disclosures Statement or the terms of the loan financing, you should consult the institution offering the loan. ACKNOWLEDGEMENT OF RECEIPT OF RISK DISCLOSURE STATEMENT I acknowledge that I have received a copy of this Unit Trust Loan Financing Risk Disclosure Statement and understand its contents.

Signature

:

Full name

:

Date

: