responsibility statements - manulife investment

iMaster Prospectus

Responsibility StatementsThis Master Prospectus has been reviewed and approved by the directors of Manulife Asset Management Services Berhad and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable enquiries, they confirm to the best of their knowledge and belief, there are no false or misleading statements, or omission of other facts which would make any statement in this Master Prospectus false or misleading.

Statements of DisclaimerThe Securities Commission Malaysia has authorised the unit trust funds, and a copy of this Master Prospectus has been registered with the Securities Commission Malaysia.

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

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

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

Additional StatementsNo units of the Funds will be issued or sold based on this Master Prospectus later than one year after the date of this Master Prospectus.

Investors are advised to note that recourse for false or misleading statements or acts made in connection with this Master Prospectus is directly available through sections 248, 249 and 357 of the Capital Markets and Services Act 2007.

Manulife Investment Al-Faid, Manulife Investment Syariah Index Fund, Manulife Investment As-Saad, Manulife Investment Al-Fauzan, Manulife Investment Al-Umran, Manulife Investment Al-Ma’mun, Manulife Investment-CM Shariah Flexi Fund, Manulife Investment Shariah Asia-Pacific Fund, Manulife Investment Shariah Progress Fund and Manulife Investment-HW Shariah Flexi Fund have been certified as being Shariah-compliant by the Shariah Adviser appointed for the Funds.

ii Master Prospectus

Message from the CEO

Dear Investors,

Thank you for expressing your interest in Manulife Asset Management Services Berhad Funds (“Funds”).

Manulife Asset Management Services Berhad offers you a comprehensive range of conventional and Islamic Funds from equity, fixed income, money market to combination of two or more asset classes. In this Master Prospectus, you may find the main features, investment objectives, strategies, investor profiles and the risks related to the Funds in the Key Information section as well as in the Detailed Information Of The Funds section.

We wish to highlight that there are risks involved with investing in our Funds. Some of these specific risks associated with investments in the Funds are credit risk, interest rate risk, country risk, currency risk and non-compliance risk. For further details on the risk profile for each Fund, please refer to the Risk Factors section.

Should you invest in any of our Funds, there are fees and charges that may be imposed i.e. sales charge, repurchase charge, annual management and trustee fees and other expenses. The details of the fees and charges are disclosed in this Master Prospectus in the Fees, Charges and Expenses section.

Units are available for subscription from our authorised agents and at our branches and service centres. The list of our branches and service centres is available in the Network of Manulife Asset Management Services Berhad section of this Master Prospectus. For more information, kindly visit your nearest service centre or contact our Customer Service at 03-6256 8288. Alternatively, you may email your inquiries to [email protected] or visit our website, www.manulifeinvestment.com.my.

Yours faithfully,For and on behalf of Manulife Asset Management Services Berhad

Wong Boon ChoyChief Executive Officer

iiiMaster Prospectus

TABLE OF CONTENTS

SECTION PAGE1 DEFINITIONS 1 – 3 2 CORPORATE DIRECTORY 4 – 53 KEY INFORMATION 6 – 27

3.1 Fund’s Information 6 – 20 3.2 Fees And Charges 21 – 233.3 Transactions 233.4 Other Information 24 – 27

4 RISK FACTORS 28 – 364.1 General Risks 284.2 Specific Risks 28 – 36

5 DETAILED INFORMATION OF THE FUNDS 37 – 795.1 MANULIFE INVESTMENT GROWTH FUND 375.2 MANULIFE INVESTMENT PROGRESS FUND 385.3 MANULIFE INVESTMENT BOND FUND 395.4 MANULIFE INVESTMENT AL-FAID 405.5 MANULIFE INVESTMENT AS-SAAD 415.6 MANULIFE INVESTMENT SYARIAH INDEX FUND 425.7 MANULIFE INVESTMENT VALUE FUND 435.8 MANULIFE INVESTMENT BALANCED FUND 445.9 MANULIFE INVESTMENT EQUITY INDEX FUND 455.10 MANULIFE INVESTMENT REGULAR SAVINGS FUND 465.11 MANULIFE INVESTMENT MONEY MARKET FUND 475.12 MANULIFE INVESTMENT PACIFIC FUND 485.13 MANULIFE INVESTMENT-ML FLEXI FUND 495.14 MANULIFE INVESTMENT AL-FAUZAN 515.15 MANULIFE INVESTMENT DIVIDEND FUND 525.16 MANULIFE INVESTMENT AL-UMRAN 535.17 MANULIFE INVESTMENT-CM FLEXI FUND 545.18 MANULIFE INVESTMENT AL-MA’MUN 555.19 MANULIFE INVESTMENT ASIA-PACIFIC REIT FUND 575.20 MANULIFE INVESTMENT-HW FLEXI FUND 585.21 MANULIFE INVESTMENT-CM SHARIAH FLEXI FUND 605.22 MANULIFE INVESTMENT SHARIAH ASIA-PACIFIC FUND 615.23 MANULIFE INVESTMENT GREATER CHINA FUND 625.24 MANULIFE INVESTMENT U.S. EQUITY FUND 635.25 MANULIFE INVESTMENT INDONESIA EQUITY FUND 645.26 MANULIFE INVESTMENT SHARIAH PROGRESS FUND 655.27 MANULIFE INVESTMENT-HW SHARIAH FLEXI FUND 675.28 Permitted Investments 685.29 Shariah Investment Guidelines 715.30 Investment Limits And Restrictions 735.31 Bases Of Valuations Of Investments/Instruments 785.32 Valuation Point 795.33 Incorrect Pricing Policy 795.34 Stock Borrowing And Lending 795.35 Term Of The Funds 79

6 DETAILED INFORMATION ON THE TARGET FUNDS 80 – 886.1 About Pioneer Funds – U.S. Pioneer Fund (“the Target Fund”) 806.2 About Parvest Equity Indonesia (“the Target Fund”) 83

7 PERFORMANCE OF THE FUNDS 89 – 1087.1 Fund Performance 89 – 997.2 Distribution Of Income, Asset Allocation And Portfolio Turnover Ratio (PTR) 99 – 108

8 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS 109 – 1248.1 Financial Statements Of The Funds 109 – 1228.2 Total Annual Expenses Incurred 1238.3 Management Expenses Ratio (MER) 124

9 FEES, CHARGES AND EXPENSES 125 – 1289.1 Charges 1259.2 Fees And Expenses 126 – 1289.3 Switching And Transfer 1289.4 Autodebit/Standing Instruction Facilities 1289.5 Policy On Rebates And Soft Commissions 128

iv Master Prospectus

10 TRANSACTION INFORMATION 129 – 13110.1 Determination Of Prices 12910.2 Information On Purchasing And Repurchase Units 129 – 13010.3 Distribution Of Income And Reinvestment Policy 13110.4 Policy And Procedures On Unclaimed Monies 131

11 MANAGEMENT AND ADMINISTRATION OF THE FUNDS 132 – 13611.1 Background Of The Manager 13211.2 Role Of The Manager 13211.3 Summary Of Financial Position Of The Manager 13211.4 Functions Of The Board Of Directors 13211.5 The Board Of Directors 13211.6 Role Of The Investment Committee 13411.7 The Investment Committee 13411.8 Key Personnel 13411.9 Investment Team 13611.10 Litigation And Arbitration 13611.11 Management Company’s Delegate 136

12 INFORMATION OF THE FUND MANAGERS 137 – 13812.1 Functions Of The Fund Managers 13712.2 CIMB-Principal Asset Management Berhad (“CIMB-Principal”) 13712.3 Hwang Investment Management Berhad (“HwangIM”) 13712.4 Manulife Asset Management (Singapore) Pte. Ltd. 13812.5 Manulife Asset Management (Hong Kong) Limited 138

13 THE SHARIAH ADVISER 140 – 14113.1 Shariah Adviser 14013.2 General Information Of IBFIM 14013.3 Experience In Advisory And Services 14013.4 Roles And Responsibilities Of IBFIM As The Shariah Adviser 14013.5 Profile Of The Shariah Team 140

14 INFORMATION OF THE TRUSTEES 142 – 14714.1 HSBC (Malaysia) Trustee Berhad 14214.2 Maybank Trustees Berhad 14314.3 RHB Trustees Berhad (formerly known as OSK Trustees Berhad) 14514.4 Duties And Responsibilities Of The Trustees 14714.5 Trustees’ Statement Of Responsibility 147

15 SALIENT TERMS OF THE DEED 148 – 15115.1 Rights Of Unit Holders 14815.2 Liabilities Of Unit Holders 14815.3 Maximum Fees And Charges Permitted By The Deed 14815.4 Procedures To Increase The Direct And Indirect Fees And Charges 14915.5 Permitted Expenses 14915.6 Removal, Retirement And Replacement Of The Manager 15015.7 Power Of The Manager To Remove/Replace The Trustee 15015.8 Removal, Retirement And Replacement Of The Trustee 15015.9 Power Of The Trustee To Remove/Replace The Manager 15015.10 Termination Of The Fund 15115.11 Meeting Of Unit Holders 151

16 CONFLICT OF INTEREST 15217 TAX ADVISER’S LETTER ON TAXATION OF THE FUNDS & UNIT HOLDERS 15318 STATEMENT OF CONSENT 15519 ADDITIONAL INFORMATION 156 – 157

19.1 Variation/Exemption From The SC’s Guidelines 15619.2 Monitoring Development In The Funds 15619.3 Anti-Money Laundering Policies And Procedures 15719.4 Manager’s Discretion 15719.5 Representations 15719.6 The Deed 15719.7 Customer Service 157

20 DOCUMENTS AVAILABLE FOR INSPECTION 15821 DIRECTORS’ DECLARATION 15922 NETWORK OF MANULIFE ASSET MANAGEMENT SERVICES BERHAD 160

1Master Prospectus

1. DEFINITIONS

In this Master Prospectus, unless the context otherwise requires, the following words and abbreviations have the following meanings:

Act means the Capital Markets and Services Act 2007 as may be amended from time to time.

BNM means Bank Negara Malaysia.

Bursa Malaysia means Bursa Malaysia Securities Berhad.

Business Day means a day on which Bursa Malaysia is open for business.

Note: The Manager may declare certain Business Days to be non-business days, although Bursa Malaysia is open for business, if some of the foreign markets in which the Fund is invested therein are closed for business. This is to ensure that investors will be given a fair valuation of the Fund at all times, be it when buying or redeeming units of the Fund.

Commencement Date means the date which the Manager by notice in writing to the Trustee specifies as the date on which the Fund is to commence or, if no such notice is given by the Manager to the Trustee, the date of the first Prospectus.

Credit Rating means a published rating by a recognised rating agency of a creditor’s ability to pay interest/profit or principal owed on a debt.

Deed means the Master Deeds and Supplemental Deeds in respect of the Funds made between the Manager and the Trustees.

EPF means Employees Provident Fund.

EPF-MIS means Employees Provident Fund – Members Investment Scheme.

FBM100 means FTSE Bursa Malaysia Top 100 Index.

FBMEMAS means FTSE Bursa Malaysia Emas Index.

FBM KLCI means FTSE Bursa Malaysia KLCI.

FBMSHA means FTSE Bursa Malaysia Emas Shariah Index.

FD means Fixed Deposits.

Forward Pricing means the NAV per unit of the Fund for the purchase and redemption transaction which is determined at the next Valuation Point after a request for purchase or redemption is received by the Manager in a proper form.

Fund means any of the funds managed by the Manager and “Funds” means collectively as follows:

Fund No. Fund Code Fund Name1 MGF Manulife Investment Growth Fund

2 MPF Manulife Investment Progress Fund

3 MBF Manulife Investment Bond Fund

4 MAF Manulife Investment Al-Faid

5 MAS Manulife Investment As-Saad

6 MSIF Manulife Investment Syariah Index Fund

7 MVF Manulife Investment Value Fund

8 MBLF Manulife Investment Balanced Fund

9 MEIF Manulife Investment Equity Index Fund

10 MRSF Manulife Investment Regular Savings Fund

11 MMMF Manulife Investment Money Market Fund

12 MPCF Manulife Investment Pacific Fund

13 MNF Manulife Investment-ML Flexi Fund

14 MAFZ Manulife Investment Al-Fauzan

15 MDF Manulife Investment Dividend Fund

16 MAU Manulife Investment Al-Umran

17 MCF Manulife Investment-CM Flexi Fund

18 MAM Manulife Investment Al-Ma’mun

19 MAPR Manulife Investment Asia-Pacific REIT Fund

20 MHF Manulife Investment-HW Flexi Fund

2 Master Prospectus

Fund No. Fund Code Fund Name21 MCS Manulife Investment-CM Shariah Flexi Fund

22 MSAP Manulife Investment Shariah Asia-Pacific Fund

23 MGCF Manulife Investment Greater China Fund

24 MUS Manulife Investment U.S. Equity Fund

25 MIE Manulife Investment Indonesia Equity Fund

26 MSPF Manulife Investment Shariah Progress Fund

27 MHSF Manulife Investment-HW Shariah Flexi Fund

Fund Manager means Investment Team of the Manager, CIMB-Principal Asset Management Berhad, Hwang Investment Management Berhad, Manulife Asset Management (Singapore) Pte. Ltd. or Manulife Asset Management (Hong Kong) Limited and their successors-in-title and lawful assigns.

General Investment Account (GIA) refers to investment account that works on any Shariah contracts which applicable for investment purposes.

Guidelines means the Guidelines on Unit Trust Funds issued by the Securities Commission Malaysia and as amended, modified or varied from time to time by any written notices, circulars, conditions and guidelines issued by the Securities Commission Malaysia.

JCI means Jakarta Composite Index.

KLCI means Kuala Lumpur Composite Index which has been retired effective 6 July 2009.

Latest Practicable Date (LPD) means 28 February 2014.

Manager means Manulife Asset Management Services Berhad and its successors-in-title and lawful assigns.

MBI means Manulife Investment Balanced Index.

MDI means Manulife Investment Dividend Index.

MFI means Manulife Investment Flexi Index.

MGS means Malaysian Government Securities.

MIBI means Manulife Investment Islamic Balanced Index.

MIDI means Manulife Investment Islamic Dividend Index.

MIFI means Manulife Investment Islamic Flexi Index.

MPI means Manulife Investment Progress Index.

MRI means Manulife Investment Asia REIT Ex Japan Index

MSPI means Manulife Investment Shariah Progress Index

MXFEJ means Morgan Stanley Capital International All Countries Far East Ex-Japan Index.

Net Asset Value (NAV) means NAV of the Fund which is determined by deducting the value of all the Fund’s liabilities from the value of all the Fund’s assets, 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.

NAV per Unit means NAV of the Fund divided by the total number of units in circulation, at the Valuation Point.

Pioneer Funds is a fonds commun de placement with several separate sub-funds established under Part I of the Luxembourg law of 17 December 2010 on undertakings for collective investment and qualifying as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) for the purposes of European Parliament and Council Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities, as may be amended from time to time.

Portfolio Turnover Ratio (PTR) means the ratio of the average of the total purchase and sales of investments over the average NAV of the Fund for each financial period and it is expressed as a number of times. PTR is computed based on the following formula:

PTR = Total Purchase & Sales of Investments for the financial period / 2

Average NAV of the Fund calculated on daily basis

3Master Prospectus

The annual portfolio turnover ratio will tell an investor whether the Fund buys and sells securities frequently or whether it takes a longer term approach to investment management. A portfolio turnover ratio of 1 time means that the Fund has been turned over once for that particular year.

REIT(s) means Real Estate Investment Trust(s).

SACSC means Shariah Advisory Council of the Securities Commission.

Securities Commission Malaysia or SC means the Securities Commission of Malaysia established under the Securities Commission Act 1993.

Shariah means Islamic Law comprising the whole body of rulings pertaining to human conducts derived from sources of Shariah.

Shariah Adviser means IBFIM (763075-W) or any Shariah adviser appointed for the Funds which includes its permitted assigns, successors in title and any new or replacement Shariah adviser.

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

Special Resolution means a resolution passed at a meeting of Unit Holders duly convened in accordance with the Deed and carried by a majority in number representing at least three-fourths of the value of the units held by the Unit Holders voting at the meeting in person or by proxy.

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

SPXJIPU means FTSE Shariah Asia Pacific Ex-Japan, India and Pakistan Index.

S&P 500 means Standard & Poor’s 500 Index.

Target Fund means the target fund(s) or underlying fund(s) which a Fund may invest in.

Trustee means HSBC (Malaysia) Trustee Berhad, Maybank Trustees Berhad or RHB Trustees Berhad (formerly known as OSK Trustees Berhad) and their successors-in-title.

Units in Circulation means number of units created and fully paid for.

Unit Holder means the person registered as the holder of units including persons jointly registered.

U.S.A., U.S. or United States of America means the United States of America.

Valuation Point means such a time(s) on a Business Day which the Manager decides to conduct a valuation on the NAV of the Fund.

For MPCF, MNF, MAPR, MCF, MSAP, MGCF, MUS and MIE foreign investments that these Funds may invest in result in time zone differences and therefore, the valuation of the Funds will be conducted after the close of Bursa Malaysia and completed on the following Business Day (T+1).

(Please refer to Section 5.32 for details).

4 Master Prospectus

2. CORPORATE DIRECTORY

ManagerManulife Asset Management Services Berhad (834424-U)

Registered Address16th Floor, Menara ManulifeNo. 6 Jalan Gelenggang, Damansara Heights50490 Kuala Lumpur

Business Address13th Floor, Menara ManulifeNo. 6 Jalan Gelenggang, Damansara Heights50490 Kuala LumpurTel: (03) 2719 9228Fax: (03) 2094 7654

10th Floor, No. 566 Jalan Ipoh,51200 Kuala LumpurTel: (03) 6256 8288 Fax: (03) 6256 8298E-mail: [email protected]: www.manulifeinvestment.com.my

The Manager’s DelegateManulife Holdings Berhad (24851-H)(internal audit, human resource, finance, corporate secretarialand legal)

Registered Address & Business Office16th Floor, Menara ManulifeNo. 6, Jalan GelenggangDamansara Heights50490 Kuala LumpurTel: (03) 2719-9228 Fax: (03) 2095-3804Website: www.manulife.com.my

Manulife Insurance Berhad (814942-M)(marketing services)

Registered Address & Business Office16th Floor, Menara ManulifeNo. 6, Jalan GelenggangDamansara Heights50490 Kuala LumpurTel: (03) 2719-9228 Fax: (03) 2095-3804Website: www.manulife.com.my

Manulife Technology and Services Sdn Bhd (666350-U)(information technology services)

Register Address16th Floor, Menara ManulifeNo. 6, Jalan GelenggangDamansara Heights50490 Kuala LumpurTel: (03) 2719-9228Fax: (03) 2095-3804Website: www.manulife.com.my

Business Office13Ath Floor, Menara ManulifeNo. 6, Jalan GelenggangDamansara Heights50490 Kuala LumpurTel: (03) 2719-9228Fax: (03) 2095-3804

Manulife Data Services Inc.(investment back-office services)

Registered Address & Business OfficeManulife BuildingU.P. North Science & Technology ParkCommonwealth AvenueQuezon City, Metro Manila1101, PhilippinesTel: (632) 981-5802 Fax: (632) 441-0970Website: www.manulifeam.com

Board of Directors1. Datuk Seri Panglima Mohd Annuar Bin Zaini (Independent)2. Dato’ Md Agil Bin Mohd Natt (Independent)3. Edmond Cheah Swee Leng (Independent)4. Michael Floyd Dommermuth (Non-Independent)5. Chong Soon Min (Jason) (Non-Independent Executive)6. Wong Boon Choy (Executive)

Trustees

HSBC (Malaysia) Trustee Berhad (1281-T)13th Floor, Bangunan HSBC, South Tower,No 2, Leboh Ampang,50100 Kuala LumpurTel: (03) 2075-7800Fax: (03) 2026-1273

Trustee’s Delegate:

Local InvestmentThe Hong Kong and Shanghai Banking Corporation Limited(as custodian) and assets held through:

HSBC Nominees (Tempatan) Sdn Bhd (258854-D)No. 2 Leboh Ampang, 50100 Kuala LumpurTel: (03) 2070-0744 Fax: (03) 2072-9787

Foreign InvestmentHSBC Institutional Trust Services (Asia) Limited6th Floor, Tower One, HSBC CentreNo. 1 Sham Mong Road, Kowloon, Hong KongTel: (852) 2533-6333 Fax: (852) 2869-6120

Maybank Trustees Berhad (5004-P)8th Floor, Menara Maybank100 Jalan Tun Perak, 50050 Kuala LumpurTel: (03) 2078-8363, (03) 2070-8833Fax: (03) 2070 9387E-mail: [email protected]

Trustee’s Delegate:

Local InvestmentMalayan Banking Berhad(Maybank Custody Services)8th Floor, Menara Maybank100 Jalan Tun Perak, 50050 Kuala LumpurTel: (03) 2070-8833E-mail: [email protected]

Foreign CustodyStandard Chartered Bank Malaysia Berhad (115793-P)

Registered OfficeLevel 16, Menara Standard CharteredNo. 30 Jalan Sultan Ismail50250 Kuala LumpurTel: (03) 211 77777Website: www.standardchartered.com.my

5Master Prospectus

Business OfficeMezzanine Floor, Menara Standard CharteredNo. 30 Jalan Sultan Ismail50250 Kuala Lumpur Tel: (03) 2781-7319/ (03) 2781-7327Fax: (03) 2711-6060E-mail: [email protected]

RHB Trustees Berhad (573019-U) (formerly known as OSKTrustees Berhad)

Registered AddressLevel 10, Tower One, RHB Centre,Jalan Tun Razak,50400 Kuala LumpurTel: (03) 9287-8888 Fax: (03) 9280-6507

Business Address6th Floor, Plaza OSK,Jalan Ampang,50450 Kuala LumpurTel: (03) 9207-7777 Fax: (03) 2175-3288/2175-3223Email: [email protected]: www.rhbgroup.com

Trustee’s Delegate:Standard Chartered Bank Malaysia Berhad (115793-P)

Registered OfficeLevel 16, Menara Standard CharteredNo. 30 Jalan Sultan Ismail50250 Kuala LumpurTel: 03-2117 7777Website: www.standardchartered.com.my

Business OfficeMezzanine Floor, Menara Standard CharteredNo. 30 Jalan Sultan Ismail50250 Kuala LumpurTel: 03-2781 7319/ 03-2781 7327Fax No.: 03-2711 6060E-mail: [email protected]

Shariah AdviserIBFIM (763075-W)

Registered AddressNo: 149A, 149B, 151BPersiaran Raja Muda Musa42000 Port Klang,Selangor Darul Ehsan

Business Address3rd Floor, Menara Takaful MalaysiaJalan Sultan Sulaiman, 50000 Kuala LumpurTel: (03) 2031-1010 Fax: (03) 2078-5250Website: www.ibfim.com

Fund Managers

CIMB-Principal Asset Management Berhad (304078-K)Level 5, Menara Milenium8 Jalan DamanlelaBukit Damansara50490 Kuala LumpurTel: (03) 2084 2000 Fax: (03) 2084 2004

Hwang Investment Management Berhad (429786-T)Suite 11-01, 11th Floor, Menara Keck Seng203, Jalan Bukit Bintang, 55100 Kuala LumpurTel: (03) 2116-6000 Fax: (03) 2116-6112

Manulife Asset Management (Singapore) Pte. Ltd.1 Kim Seng Promenade#11-07/08Great World City, West TowerSingapore 237994Tel: (65) 6501 5438 Fax: (65) 6235 1138

Manulife Asset Management (Hong Kong) Limited47th Floor, The Lee Gardens33 Hysan Avenue, Causeway BayHong Kong SARTel: (852) 2910-2600 Fax: (852) 2907 2076

Operator of the Target Funds:

1) Pioneer Asset Management S.A 8-10, rue Jean Monnet L-2180 Luxembourg

2) BNP Paribas Investment Partners Luxembourg S.A. 33 rue de Gasperich, L-5826 Howald-Hesperange, Luxembourg. Website: www.bnpparibas-ip.com

Investment Committee1. Dato’ Md Agil Bin Mohd Natt (Independent)2. Edmond Cheah Swee Leng (Independent)3. Alex Wong Chi Kit (Non-Independent)4. Dato’ Dr Zaha Rina Zahari (Independent)5. Wong Boon Choy (Non-Independent)

Company SecretaryJasbender Kaur a/p Mehar Singh (LS 0009264)No.11, Jalan 22/4246300 Petaling JayaSelangor Darul Ehsan

Ling Chui Shee (MAICSA 7051434)46, Jalan SS2/8647300 Petaling JayaSelangor Darul Ehsan

AuditorsPricewaterhouseCoopers (AF 1146)Level 10, 1 SentralJalan Travers, Kuala Lumpur SentralP 0 Box 1019250706 Kuala Lumpur

Tax ConsultantsLMC Taxation Services Sdn Bhd (148926-H)Suite 1812, 18th Floor, Plaza PermataNo. 6, Jalan Kampar, Off Jalan Tun Razak50400 Kuala Lumpur

Principal BankerDeutsche Bank (Malaysia) Berhad (312552-W)Level 18-20, Menara IMC8 Jalan Sultan Ismail50250 Kuala Lumpur

SolicitorsOthman Hashim & CoAdvocates & Solicitors6th Floor, Wisma Kah MotorNo 566, Batu 3 ½ Jalan Ipoh51200 Kuala Lumpur

Federation of Investment Managers Malaysia (FiMM)19-06-1, 6th Floor, PNB Damansara19 Lorong Dungun, Damansara Heights50490 Kuala Lumpur

6 Master Prospectus

3. KEY INFORMATION

This section is only a summary of the salient information and investors should read and understand the whole Master Prospectus before making investment decisions.

3.1 Fund’s Information

CONVENTIONAL FUNDS

ASSET CLASS EQUITY

FUND NO. 1 2 7 8

FUND NAME MGF MPF MVF MBLF

FUND PROFILE● FundCategory● FundType

● Equity● Growth

● Equity● Small-cap


● Balanced● Growth&Income

INVESTMENT OBJECTIVE

To provide Unit Holders with a steady medium- to long-term capital growth at a reasonable level of risk through investments in a diversified portfolio of equities with large market capitalisation.

Please refer to Section 5.1 for details.

To provide Unit Holders with a steady long-term capital growth at a reasonable level of risk by investing in a diversified portfolio of small- to medium-size public-listed companies.


To target growth through capital appreciation by investing in high quality and high growth companies in Malaysia.


To achieve medium- to long-term capital appreciation and to provide dividend income.


INVESTMENT STRATEGY

The Fund invests in a diversified portfolio of Malaysian equities and money market instruments to meet its investment objective.

The Fund Manager adopts a bottom-up approach by identifying companies with growth and earnings prospects. The Fund may also invest in companies that have the potential of becoming blue chip stocks (established companies with earnings track record of at least 5 years) in future.

The pr imary focus is on the underlying growth fundamentals of the company although other factors such as macroeconomic variables, liquidity conditions and political risk factors are also considered important.


The Fund invests in a diversified portfolio of small-to medium-size companies listed in Bursa Malaysia which are not part of the FBM KLCI constituents (at the point of purchase).

The Fund Manager adopts a bottom-up approach in identifying companies with exceptional growth and visible earnings prospects during the stock selection process. Its value-based approach, on the other hand, seeks out companies which the Fund Manager considers are undervalued relative to their assessed true value.

The primary focus is on the underlying growth fundamentals of the company and its valuation relative to its intrinsic value although other factors such as macroeconomic v a r i a b l e s , l i q u i d i t y conditions and political risk factors are also considered important.

Please refer to Section 5.2 for details

The Fund invests in a diversified portfolio of growth stocks (stocks that can grow above industry/peers’ average) for capital appreciation. The Fund may also invest in dividend yielding stocks. The Fund Manager adopts a bottom-up approach to identify the companies with potential growth and/or pays dividends to shareholders. In identifying those companies, the Fund Manager relies on fundamental research where the f inancial strength, valuation, industry prospects, management and track records of the companies are considered.


The Fund invests in equities and fixed income instruments based on its assessment of the respective market outlook. The Fund Manager uses a macro-economic ‘top-down’ approach to decide on strategic asset allocation.

The Fund Manager constantly monitors and assesses the investment environment to identify emerging investment t rends and themes. More importantly, the Fund Manager evaluates macroeconomic variables and its impact on the asset classes in the asset allocation process.

The Fund Manager believes that given the increased interdependence among markets, a bird’s eye view of global financial markets is also critical to successful investment.


PERFORMANCE BENCHMARK

FBMEMAS MPI FBMEMAS MBI

7Master Prospectus

CONVENTIONAL FUNDS

ASSET CLASS EQUITY

FUND NO. 1 2 7 8

FUND NAME MGF MPF MVF MBLF

ASSET ALLOCATION(% of Fund’s NAV)

Equity investment● Minimum-70%

or lower as part of temporary defensive strategy

● Maximum-98%Liquid assets● Minimum-2%










Equity investment● 40to60%Bond investment● 40to60%Liquid assets● Minimum-2%


PRINCIPAL RISKS ● MarketRisk● FundManagement

Risk● ManagementCompany

Risk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● SpecificStockRisk● CreditRisk

Please refer to Section 4 for details.

● MarketRisk● FundManagement


Risk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● SpecificStockRisk● CreditRisk● Small-toMedium-Size

Companies Risk








Risk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● SpecificStockRisk● CreditRisk● InterestRateRisk


INVESTOR PROFILE Investors who● Haveahigherrisk

tolerance with low income requirement

● Haveamedium-tolong-term investment horizon


Investors who● Seekcapital

appreciation● Arewillingtoaccept

higher level of risk with low income requirement





higher level of risk with low income requirement



Investors who● Seekrelativelyhigher

returns than fixed deposits but dislike the higher risks associated with a full equity portfolio

● Seekregularincome● Areconservative


RECOMMENDED INVESTMENT TIME FRAME

3 - 5 years 3 - 5 years 3 - 5 years 3 - 5 years

DISTRIBUTION POLICY

Incidental Annually

MODE OF DISTRIBUTION

If income is distributed, it will automatically be re-invested via issuance of additional units in the respective Fund, based on NAV per unit at the Valuation Point immediately following the distribution date.

GENERAL INFORMATION● Trustee

● FundAccountingand Valuation Agent

● FinancialYearEnd● LaunchDate

● HSBC(Malaysia)Trustee Berhad

● RHBTrusteesBerhad

● 31July● 18February2002



● 31July● 18February2002

● MaybankTrusteesBerhad


● 31July● 28June1995



● 30June● 2May1991

APPROVED FOR EPF-MIS

Yes Yes Yes Yes

8 Master Prospectus

CONVENTIONAL FUNDS

ASSET CLASS EQUITY

FUND NO. 9 10 12 13

FUND NAME MEIF MRSF MPCF MNF

FUND PROFILE● FundCategory● FundType

● Equity● IndexTracking



● MixedAssets● Growth


To track the performance of the FBM KLCI at less than average market risk through its overall investment strategy of investing predominantly in index-linked stocks.


To provide long-term goal of capital appreciation by maintaining a minimum exposure of 80% inequities and equity-related instruments at all times.


To provide long-term cap i t a l apprec ia t ion through investment in equities and equity-related instruments listed on the stock exchanges within the Pacific region.


To provide Unit Holders with long-term capital appreciation.


INVESTMENT STRATEGY

The Fund Manager employs an index sampling approach to track the performance of the FBM KLCI.

The Fund typically invests up to 98% of its assetsin the Index. The Fund holds a range of equities, predominantly FBM KLCI stocks that, in aggregate, approximate the full FBM KLCI in terms of key characteristics including industry weightings and market capitalisation.

The Fund’s portfolio composition is rebalanced when necessary to take into account changes in weightings or corporate activities in order to minimise tracking errors.


The Fund invests in a diversified portfolio of Malaysian equities and equity-related instruments as well as money market instruments to meet its investment objectives with emphasis on growth (stocks that can grow above industry/peers’ average) and undervalued stocks relative to their assessed true value.


The Fund invests in a diversified portfolio of equities, equity-related instruments and money marke t i n s t rumen t s , with emphasis on high growth potential and/or undervalued stocks relative to their assessed true value.

The Fund Manager adopts an active strategy in meeting the investment objective of the Fund. In addition, any active and frequent trading strategy will depend on investment opportunities or valuations.

The Fund Manager focuses on China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand.


The Fund invests in a diversified portfolio of equities and equity-related instruments as well as fixed income and money market instruments.

The Fund adopts an aggressive approach which enables it to invest 98% inequities or fixed income instruments. The Fund may have a higher individual security concentration.

The Fund may invest in Asia-Pacific markets which include, but not limited to China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, S i n g a p o r e , Ta i w a n , Thailand and Japan.



FBM KLCI FBM100 MXFEJ MFI

9Master Prospectus

CONVENTIONAL FUNDS

ASSET CLASS EQUITY

FUND NO. 9 10 12 13

FUND NAME MEIF MRSF MPCF MNF


Equity investment● Maximum-98%of

Fund’s NAV with at least two-thirds in FBM KLCI-linked stocks.

Targets tracking accuracy● 95%to97%accuracyLiquid assets● Minimum-2%


Equity & equity-related investment

● Minimum-80%● Maximum-98%Liquid assets● Minimum-2%


Foreign equity & foreign equity-related investment

● Minimum-70%or lower as part of temporary defensive strategy



Equity & equity-related investment

● 0to98%Fixed income & money

market instruments● 2to100%Liquid assets● Minimum-2%












Risk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● SpecificStockRisk● CreditRisk● CountryRisk● RegulatoryRisk● CurrencyRisk




Risk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● SpecificStockRisk● CreditRisk● InterestRateRisk● CountryRisk● RegulatoryRisk● CurrencyRisk


INVESTOR PROFILE Investors who● Seekcapital

appreciation over long-term

● WanttotracktheFBMKLCI performance

● Havelowincomerequirements

● Havealong-terminvestment horizon


Investors who● Arewillingtoaccept

moderate to high level of risk


● Seekcapitalappreciation



moderate to high level of risk


● Seektodiversifyinvestment to include Pacific ex-Japan region




medium- to high-level of risk

● Donotseekregularincome stream




At least 5 years 3 - 5 years 3 - 5 years 3 - 5 years

DISTRIBUTION POLICY

Incidental








● 30June● 26May1997



● 30June● 8September2004



● 30September● 23June2005



● 31March● 6September2005


Yes Yes Yes (Frozen) Yes

10 Master Prospectus

CONVENTIONAL FUNDSASSET CLASS EQUITYFUND NO. 15 17 19 20FUND NAME MDF MCF MAPR MHFFUND PROFILE● FundCategory● FundType

● Equity● Income


● Fund-of-funds● Incomeandgrowth



To provide steady recurring income that is potentially higher than the prevailing fixed deposit rates. At the same time, the Fund also attempts to attain medium- to long-term capital appreciation.




To provide long-term capital appreciation and sustainable income through a combined investment in other collective investment schemes, namely REITs and infrastructure funds/trusts.




INVESTMENT STRATEGY

The Fund invests in stocks which have good dividend payouts or have the potential to become dividend yielding stocks and reasonable medium- to long-term capital appreciation opportunities. Stocks with good dividend payouts are those that have been paying consistent dividends over the last three to five years, and are expected to be able to sustain this trend at least over the next one year.


The Fund invests in a d ivers i f ied por t fo l io of equities and equity-related instruments. For defensive consideration, it will invest in a mix of equities, debentures and money market instruments depending on the short-term and long-term market outlook.

The Fund may invest up to 98% in equities andequity-related instruments. However, the Fund may turn totally defensive and invest in only fixed income and money market instruments should the Fund Manager foresees a bearish equity market. This allows the Fund the flexibility to switch to equities when the stock market is bullish and to switch to fixed income and money market instruments when the stock market is bearish. At any one time, the asset mix may also comprise all asset classes.

The Fund may invest in Asia-Pacific markets, namely China, Hong Kong, Indonesia, South Korea, the Philippines, Singapore, Taiwan and Thailand.


The Fund invests in REITs and infrastructure funds/trusts and related instruments attached to the invested REITs and inf ras t ructure funds/trusts that are listed on approved Asia-Pacific stock exchanges. The Fund focuses on REITs and infrastructure funds/trusts that display a potential for capital appreciation via asset growth.

The Fund Manager focuses primarily on China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Australia.


The Fund may invest up to 98% in equities andequity-related instruments. However, the Fund may also turn totally defensive and invest in fixed income and money marke t instruments, only should the Fund Manager foresees a severe decline in prices of the equity market, in order to safeguard the assets and total returns for the Fund. At any one time, the asset mix may also comprise all asset classes. The Fund will maintain at least 2% of itsNAV in liquid assets.

The Fund will invest in both the equity and fixed income securities of corporations in Malaysia that practises good corporate governance, a key driver in the selection of securities. Some of the criteria chosen are transparency, accountability and integrity. They include practices of having an adequate number of independent directors on the board, transparent business procedures and financial information, accessible management team to investors and protecting minority shareholders’ rights. However, the practice of good corporate governance in isolation does not necessarily lead to investment outperformance. Hence, in order to enhance returns to the Fund’s investors, the Fund Manager will also conduct fundamental analysis on potential investee companies to determine the appropriateness of the investment.



MDI MFI MRI MFI

11Master Prospectus

CONVENTIONAL FUNDSASSET CLASS EQUITYFUND NO. 15 17 19 20FUND NAME MDF MCF MAPR MHFASSET ALLOCATION(% of Fund’s NAV)



Liquid assets● Minimum-2%


Equity and equity-related investment

● 0to98%Fixed income and money

market instruments● 2to100%Liquid assets● Minimum2%


REITs and infrastructure funds/trusts investment

● Minimum-50%mustbe invested in Asia-Pacific REITs and the balance in infrastructure funds/trusts



Equity and equity-related investment

● 0to98%Fixed income and money

market instruments● 2to100%Liquid assets:● Minimum-2%

Please refer to Section 5.20 for details

PRINCIPAL RISKS ● MarketRisk● FundManagementRisk● ManagementCompany



● MarketRisk● FundManagementRisk● ManagementCompany

Risk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● CreditRisk● SpecificStockRisk● InterestRateRisk● CountryRisk● RegulatoryRisk● CurrencyRisk



Risk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● SpecificStockRisk● CreditRisk● CountryRisk● RegulatoryRisk● CurrencyRisk● PropertyTaxesRisk● RentalRisk● BuildingDepreciation

Risk● ManagementRisk



Risk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● SpecificStockRisk● CreditRisk● InterestRateRisk


INVESTOR PROFILE Investors who● Preferaregular

income stream, stable investment returns and potential for medium- to long-term capital appreciation

● Areconservative● Seekrelativelyhigher

returns than fixed deposits but are averse to higher risks associated with high equity exposure



medium to high level of risk






low to medium level of risk

● Wishtohaveinvestment exposure through a diversified portfolio of REITs and infrastructure funds/trusts within the Asia-Pacific region

● Areseekingasustainable distribution of income and long-term capital growth










3 - 5 years 3 - 5 years 3 - 5 years 3 - 5 years

DISTRIBUTION POLICY

Annually Incidental Annually, if any Incidental




● FundAccountingandValuation Agent




● 30April● 28March2006



● 31March● 23January2007



● 31August● 7June2007



● 31August● 26July2007


Yes Yes No Yes


CONVENTIONAL FUNDSASSET CLASS EQUITYFUND NO. 23 24 25FUND NAME MGCF MUS MIEFUND PROFILE● FundCategory● FundType

● Equity● LargeCap

● FeederFund(Equity)● Growth

● FeederFund(Equity)● Growth


To provide Unit Holders with capital growth over the medium- to long-term by investing in larger capitalised companies in the Greater China region namely China, Hong Kong and Taiwan markets, as well as China-based companies listed on approved overseas markets.


To achieve capital appreciation over the medium- to long-term by investing in equities and equity-related instruments predominantly in the U.S. market.


The Fund seeks to achieve capital appreciation over the long term through investments in equities and equities-related instruments predominantly in Indonesia market.


INVESTMENT STRATEGY

The Fund invests mainly in large capitalised companies to achieve capital growth over the medium- to long-term. The Fund focuses on the Greater China region, namely China, Hong Kong and Taiwan markets, as well as China-based companies (companies that derive more than 50% of assets and/or earnings fromChina) listed on approved overseas markets.

The Fund may also invest in collective investment schemes as well as unlisted equities with attractive potential returns, particularly companies that are seeking a listing within one year.

The Fund invests at least 95% ofits NAV in a collective investment scheme called the Pioneer Funds – U.S. Pioneer Fund which in turn invests primarily (minimum 51%)in a diversified portfolio of equities and equity-linked instruments of issuers incorporated, headquartered or having their principal business activities in the U.S.A. at the time of issuance of the Master Prospectus.

The Fund invests in Class I units in the USD pricing currency of the Target Fund.

The Fund Manager may adopt temporary defensive strategies to protect the Fund’s investment in adverse market, political or economic conditions by holdingmore than5%of the Fund’s NAV in cash or cash equivalents that may be inconsistent with the Fund’s principal investment strategy and asset allocation. As the temporary defensive strategies are adopted at the Fund’s level, the Fund Manager’s view on market outlook may differ from the view of the Target Fund’s Investment Manager. As a result, there is a risk that the Fund will not achieve its investment objective by adopting such defensive strategies. However, for all intents and purposes, the Fund Manager will resume the investment strategy to invest at least 95%of the Fund’sNAV in the Target Fund as soon as practical.

In addition, the Fund Manager may, in consultation with the Trustee and subject to Unit Holders’ approval, replace the Target Fund with another fund of a similar objective if, in the Fund Manager’s opinion, the Target Fund no longer meets this Fund’s investment objective, or when the Target Fund no longer acts in the interest of the Unit Holders.

Note: Although the Target Fund is allowed to use derivative instruments to implement short positions. However, as at LPD, the Target Fund is not engaged in any short positions.

The Fund invests at least 95% ofits NAV in a collective investment scheme called Parvest Equity Indonesia which in turn invests at least two-thirds of its total assets in shares or other similar securities of companies that have their registered offices or conduct the majority of their business activities in Indonesia and in financial derivative instruments on this type of asset, at the time of issuance of the Master Prospectus.

The Target Fund may also invest a maximum of one-third of its assets in any other transferable securities, money market instruments, financial derivative instruments or cash, provided that the investments in debt securities of any kind do not exceed 15%ofitsassetsandtheinvestmentsin other UCITS or UCI do not exceed 10%.

The Fund invests in Class “I” of the Target Fund which is denominated in U.S. Dollar.

The Fund Manager may adopt temporary defensive strategies to protect the Fund’s investment in adverse market, political or economic conditions by holdingmore than5%of the Fund’s NAV in cash or cash equivalents that may be inconsistent with the Fund’s principal investment strategy and asset allocation. As the temporary defensive strategies are adopted at the Fund’s level, the Fund Manager’s view on market outlook may differ from the view of the Target Fund’s Investment Manager. As a result, there is a risk that the Fund will not achieve its investment objective by adopting such defensive strategies. However, for all intents and purposes, the Fund Manager will resume the investment strategy to invest at least 95%of the Fund’sNAV in the Target Fund as soon as practical.


13Master Prospectus

CONVENTIONAL FUNDSASSET CLASS EQUITYFUND NO. 23 24 25FUND NAME MGCF MUS MIE



Note: The umbrella fund may acquire movables and immovable property indispensable for the direct performance of its activity. (There are no specific investment limits for this type of assets as those assets are not part of any portfolio of the Target Fund as such. This provision only deals with assets acquired by the umbrella fund pursuant to its corporate purpose to directly perform its activity. In practice, please note that this has never been enforced by the umbrella fund so far)



MSCI Golden Dragon Index S&P 500 JCI


Equities and equity-related securities:● Minimum-70%orloweraspart

of temporary defensive strategy, butitshallnotbelessthan50%

● Maximum-98%Liquid assets:● Minimum-2%


Collective investment scheme:● Minimum-95%● Maximum-98%Liquid assets:● Minimum2%


Collective investment scheme:● Minimum-95%● Maximum-98%Liquid assets:● Minimum2%


PRINCIPAL RISKS ● MarketRisk● FundManagementRisk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● SpecificStockRisk● CreditRisk● CountryRisk● RegulatoryRisk● CurrencyRisk


Risks of the Fund● CurrencyRisk● LiquidityRisk● ConcentrationRisk● RiskofNon-Compliance● RegulatoryRisk

Risks of the Target Fund● ForeignExchange/CurrencyRisk● StructuredProductsRisk● SpecialRisksofHedgingand

Income Enhancement Strategies● SpecialRiskConsiderationsfor

Investing in Equities and Equity-Linked Instruments

● DepositoryReceipts● InvestmentsinSpecific

Countries, Sectors, Regions or Markets

● ReinvestmentofCollateralReceived in Connection with Securities Lending and Repurchase Transactions

● GlobalExposureRisk● Sub-Underwriting● InvestmentinFinancial

Derivative Instruments● ShortPositions● CounterpartyRisks● CustodyRisk● InvestmentManagementand

Opposing Positions● ConflictsofInterest● SecuritiesLending● WithholdingTaxRisk


Risks of the Fund● CurrencyRisk● LiquidityRisk● ConcentrationRisk● RiskofNon-Compliance● RegulatoryRisk

Risks of the Target Fund● RiskLinkedtoShareMarkets● CountryRisk● LiquidityRisk● CurrencyExchangeRisk● InflationRisk● TaxationRisk● EmergingMarketRisk● DerivativesRisk● WarrantRisk● Risksrelatedtoinvestments

restrictions in some countries● CounterpartyRisk● Operational&CustodyRisk



CONVENTIONAL FUNDSASSET CLASS EQUITYFUND NO. 23 24 25FUND NAME MGCF MUS MIEINVESTOR PROFILE Investors who

● Seekcapitalappreciationoverthe long term

● Arewillingtoacceptahigherlevel of risk

● Haveamedium-tolong-terminvestment horizon


Investors who● WishtoparticipateintheU.S.

equity market● Seekcapitalappreciationover

medium to long-term● Haveamedium-tolong-term

investment horizon● Arewillingtoacceptahighlevel

of risk


Investors who● Wishtoparticipateinthe

Indonesia equity market● Seekcapitalappreciationover

the long-term● Havealong-terminvestment

horizon● Arewillingtoacceptahighlevel

of risk



3 - 5 years 3 - 5 years At least 5 years

DISTRIBUTION POLICY

Incidental



GENERAL INFORMATION● Trustee● FundAccounting

and Valuation Agent● FinancialYearEnd● LaunchDate

● RHBTrusteesBerhad● RHBTrusteesBerhad

● 31August● 21October2008


● 31May● 21October2009


● 31August● 19October2010

TARGET FUND INFORMATION● NameofTarget

Fund● TheOperator

● TheInvestmentManager

● Countryoforigin● Regulatory

Authority of the Target Fund

● RegulatoryAuthority of the Investment Manager

● Dateofestablishment

Not applicable ● PioneerFunds–U.S.PioneerFund

● PioneerAssetManagementS.A.

● PioneerInvestmentManagement,Inc.

● Luxembourg● RegulatoryAuthorityof

Luxembourg - Commission de Surveillance du Secteur Financier (CSSF)

● U.S.SecuritiesandExchangeCommission (SEC)

● 5October2001

● ParvestEquityIndonesia

● BNPParibasInvestmentPartnersLuxembourg S.A.

● BNPParibasInvestmentPartnersAsia Ltd.

● Luxembourg● RegulatoryAuthorityof

Luxembourg - Commission de Surveillance du Secteur Financier (CSSF)

● RegulatoryAuthorityofHongKong - Securities and Futures Commission

● 28March2007


No No No

15Master Prospectus

ASSET CLASSCONVENTIONAL FUNDS

BOND MONEY MARKETFUND NO. 3 11FUND NAME MBF MMMFFUND PROFILE● FundCategory● FundType

● Bond● Income

● MoneyMarket● Income


To provide Unit Holders with higher than average returns compared to fixed deposits in medium- to long-term periods by investing in bonds and other fixed income securities with minimum risk to capital invested.


To provide Unit Holders with liquidity and current income while maintaining capital stability.


INVESTMENT STRATEGY

The Fund Manager aims to meet the Fund’s investment objective by forming a diversified portfolio of fixed income instruments of which the asset allocation, sector allocation, overall credit quality, portfolio duration and individual fixed income security investment will depend on the Fund Manager’s assessment of the bond market’s and economic prospects.

The bulk of the Fund is invested in investment grade private debt securities which offer better returns than interest income from fixed deposits. Although the Fund is actively managed, the trading strategy will depend on market opportunities and interest rate expectations.


The Fund is essentially managed to provide liquidity to meet the short-term cash flow requirements of its Unit Holders while providing a reasonable income return. The Fund’s investments are largely confined to short-term money market instruments and short-dated fixed income securities that are highly liquid.

The Fund Manager adopts a prudent strategy in forming a portfolio of money market instruments which is in accordance with the Fund’s investment objective and the Fund Manager’s assessment of investment prospects in line with the underlying interest rates and economic outlook.



5-Year MGS Bond Index 1-Month FD Rate


Fixed income instruments● Minimum - 70% or lower as part of temporary

defensive strategy● Maximum-98%Liquid assets● Minimum-2%


Short-term money market instruments and fixed income securities that mature within 365 days or 1 year● 90to100%

Instruments with maturity periods exceeding 365 days but not longer than 732 days, which is equivalent to approximately 2 years● 0to10%


PRINCIPAL RISKS ● MarketRisk● FundManagementRisk● ManagementCompanyRisk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● CreditRisk● InterestRateRisk


● MarketRisk● FundManagementRisk● ManagementCompanyRisk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● CreditRisk● InterestRateRisk


INVESTOR PROFILE Investors who● Preferalowerlevelofrisk● Arelessconcernedoncapitalappreciation● Seek consistent, reasonable and stable income

distribution● Haveamedium-tolong-terminvestmenthorizon


Investors who● Areconservativeinnature● Aretemperamenttowardsrisk-rewardtrade-off● Haveashorter-terminvestmenthorizon● Wish to temporarily liquidate or reduce exposure in

equities



3 - 5 years Less than 1 - 3 years

DISTRIBUTION POLICY

Annually Incidental


If income is distributed, it will be automatically re-invested via issuance of additional units in the respective Fund, based on NAV per unit at the Valuation Point immediately following the distribution date.

GENERAL INFORMATION● Trustee● FundAccounting


● HSBC(Malaysia)TrusteeBerhad● RHBTrusteesBerhad

● 31October● 18February2002


● 31October● 8September2004


Yes Yes


ISLAMIC FUNDSASSET CLASS EQUITYFUND NO. 4 6 14 16FUND NAME MAF MSIF MAFZ MAUFUND PROFILE• FundCategory• FundType

• IslamicEquity• Growth

• IslamicEquity• IndexTracking

• IslamicEquity• Income

• Balanced(Islamic)• Growth&Income


To provide Unit Holders with a steady medium- to long-term capital growth at a reasonable level of risk through investments in a diversified portfolio of equities in companies with large market capitalisation which are Shar iah-compliant.


To track the performance of the FBMSHA. Also aims to generate annual distribution.


To provide Unit Holders with a steady recurring income that is potentially higher than the prevailing GIA rates. At the same time, the Fund also attempts to attain medium- to long- term capital appreciation.


To produce medium- to long-term capital appreciation and current income.


INVESTMENT STRATEGY

The Fund invests in a diversified portfolio of Shariah-compliant equities and Islamic money market instruments to meet its investment objective.

The Fund Manager adopts a bottom-up approach in identifying companies with growth and earnings prospects. The Fund may also invest in companies that have the potential of becoming blue chip stocks (established companies with earnings track record of at least 5 years) in future. The primary focus is on the underlying growth fundamental of the company although other factors such as macroeconomic variables, liquidity conditions and political risk are also considered important.


The Fund Manager employs an index sampling approach to track the performance of the FBMSHA. The Fund typically investsup to98%of its assets in the top tier Shariah-compliant stocks in the target index (covering nearly 80% of FBMSHA’smarket capitalisation) and in a representative sample of the remaining constituents.

The Fund holds a range of Shariah-compliant equities that, in aggregate, approximate the full FBMSHA in terms of key characteristics, including industry weightings and market capitalisation.

The Fund’s portfolio composition is rebalanced when necessary to take into account changes in weightings or corporate activities in order to minimise tracking errors.


The Fund invests in S h a r i a h - c o m p l i a n t stocks which have good dividend payouts or have the potential to become dividend yielding stocks and reasonable medium- to long-term capital appreciation opportunities. Shariah-compliant stocks with good dividend payouts are those that have been paying consistent dividends over the last three to five years, and will be able to sustain this trend at least over the next one year.


The Fund invests in Shariah-compliant equities and sukuk instruments based on its assessment of the respective market outlook. The Fund Manager uses a macro-economic ‘top-down’ approach to decide on strategic asset allocation.

The Fund Manager constantly monitors and assesses the investment environment to identify emerging investment t rends and themes. More importantly, the Fund Manager evaluates macroeconomic variables and its impact on the asset classes in the asset allocation process.



FBMSHA FBMSHA MIDI MIBI

17Master Prospectus

ISLAMIC FUNDSASSET CLASS EQUITYFUND NO. 4 6 14 16FUND NAME MAF MSIF MAFZ MAUASSET ALLOCATION(% of Fund’s NAV)

Shariah-compliant equities & equity-related investment● Minimum-70%


● Maximum-98%Islamic liquid assets● Minimum-2%


Shariah-compliant equity investment● Maximum-98%Targets tracking accuracy● 95%to97%accuracyIslamic liquid assets● Minimum-2%


Shariah-compliant equity investment● Minimum-70%


Islamic liquid assets● Minimum-2%


Shariah-compliant equity investment● 40to60%Sukuk● 40to60%Islamic liquid assets● Minimum-2%

Please refer Section 5.16 for details.



Risk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● SpecificStockRisk● CreditRisk● Reclassificationof

Shariah Status Risk





Shariah Status Risk





Shariah Status Risk




Risk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● SpecificStockRisk● CreditRisk● InterestRateRisk● Reclassificationof

Shariah Status Risk


INVESTOR PROFILE Investors who● Seekinvestmentsthat

comply with Shariah requirements

● Arewillingtoacceptmedium to high level of risk

● Havemedium-tolong-term investment horizon

● Seeklong-termcapitalappreciation


Investors who● SeekShariah-compliant

investment avenues● Seekcapital

appreciation over the long term


Investors who● Preferaregular

income stream, stable investment returns and potential for medium- to long-term capital appreciation

● Seekrelativelyhigherreturn than GIA rates but are averse to higher risks associated with high equity exposure

● Seekinvestmentsthatcomply with Shariah requirements


Investors who● Seekregularincome● Seekinvestmentsthat

comply with Shariah requirements

● Seekrelativelyhigherreturns than GIA rates but dislike the higher risks associated with full equity portfolio




3 - 5 years At least 5 years 3 - 5 years 3 - 5 years

DISTRIBUTION POLICY

Incidental Annually








● 31July● 30June2003



● 30June● 4January2002



● 30September● 6September2005



● 31May● 28March2006


Yes Yes Yes Yes


ISLAMIC FUNDSASSET CLASS EQUITYFUND NO. 21 22 26 27FUND NAME MCS MSAP MSPF MHSFFUND PROFILE● FundCategory● FundType

● MixedAssets(Islamic)● Growth

● IslamicEquity● Growth

● IslamicEquity● Small-cap

● MixedAssets(Islamic)● Growth




To provide long-term capital appreciation through investment in Shariah-compliant equities and equity-related instruments listed on approved stock exchanges within the Asia-Pacific region.


The Fund seeks to provide Unit Holders with steady long-term capital growth at a reasonable level of risk by investing in a diversified portfolio of small- to medium-capitalised Shariah-compliant equities and equity-related instruments.


The Fund seeks to provide Unit Holders with long-term* capital appreciation.

* long-term in this context refers to a period of at least 5 years.


INVESTMENT STRATEGY

The Fund invests in a d ivers i f ied por t fo l io of Shariah-compliant equities and equity-related instruments. For defensive consideration, the Fund invests in a mix of Shariah-compliant equities, Islamic debentures and Islamic money market instruments depending on the short-term and long-term market outlook.

The Fund may invest up to 98% in Shariah-compliantequities and equity-related instruments. However, the Fund may turn totally defensive and invest in only sukuk and Islamic money market instruments should the Fund Manager foresee a bearish equity market. This allows the Fund the flexibility to switch to equities when the stock market is bullish and to switch to sukuk and Islamic money market instruments when the stock market is bearish. At any one time, the asset mix may also comprise all asset classes.

The Fund will maintain at least 2% of its NAV inIslamic liquid assets.


The Fund invests in a diversified portfolio of Shariah-compliant foreign equities and equity-related instruments, and Islamic money market instruments with emphasis on high growth potential and/or undervalued stocks relative to their assessed true value. The Fund Manager adopts an active strategy in meeting the investment objective of the Fund.

The Fund Manager focuses primarily on China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Australia and New Zealand.


The Fund invests primarily in a diversified portfolio of small-to medium-size Malaysia equities which comply with Shariah requirements. The fundamental investment process will be geared t owards i den t i f y ing and investing in growth companies listed on Bursa Malaysia which are not part of the FTSE Bursa Malaysia KLCI (FBM KLCI) constituents (at the point of purchase). These companies would have the potential to achieve strong rates of growth and become future industry leaders.


The Fund invests in a d ivers i f ied por t fo l io of Shariah-compliant equities and equity-related instruments. The Fund is also able to invest in sukuk and Islamic money market instruments depending on the interest rate outlook for the market.

The Fund may invest up to 98% in Shariah-compliantequities and equity-related instruments. However, the Fund may also turn totally defensive and invest solely in sukuk and Islamic money market instruments, should the Fund Manager foresee a bearish equity market, for the purpose of capital preservation measure. At any one time, the asset mix may also comprise all asset classes. The Fund will maintain at least 2% of its NAV inIslamic liquid assets.

Please note that this Fund is not a capital guaranteed fund or a capital protected fund. Therefore, this Fund does not offer protection of your investment.



MIFI SPXJIPU MSPI MIFI

19Master Prospectus

ASSET CLASSISLAMIC FUNDS

EQUITYFUND NO. 21 22 26 27FUND NAME MCS MSAP MSPF MHSFASSET ALLOCATION(% of Fund’s NAV)

Shariah-compliant equities and equity-related investment● 0to98%Sukuk and Islamic money market instruments● 2to100%Islamic liquid assets● Minimum-2%


Shariah-compliant equities and equity-related investment● Minimum-70%

or lower as part of temporary defensive strategy, but it shall not belessthan50%

● Maximum-98%Islamic liquid assets● Minimum-2%


Shariah-compliant equity investment● Minimum-70%


● Maximum-98%Islamic liquid assets:● Minimum-2%


Shariah-compliant equities and equity-related instruments:● 0to98%Sukuk and Islamic money market instruments:● 0to98%Islamic liquid assets:● Minimum2%


PRINCIPAL RISKS ● MarketRisk● FundManagementRisk● ManagementCompany

Risk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● SpecificStockRisk● CreditRisk● InterestRateRisk● Reclassificationof

Shariah Status Risk



Risk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● SpecificStockRisk● CreditRisk● CountryRisk● RegulatoryRisk● CurrencyRisk● Reclassificationof

Shariah Status Risk




Shariah Status Risk● Small-toMedium-Size

Companies Risk


● MarketRisk● FundManagementRisk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● SpecificStockRisk● CreditRisk● InterestRateRisk● Reclassificationof

Shariah Status Risk


INVESTOR PROFILE Investors who● Arewillingtoaccept



● Seekinvestmentswhich conform to the requirements of the Shariah




Investors who● Seektoinvestina

diversified portfolio of stocks listed in the Asia-Pacific region that conforms with the requirements of the Shariah

● Seekamedium-tolong-term investment horizon

● Arewillingtoacceptmoderate to high level of risk


Investors who● Arewillingtoaccepta

higher level of risk● Seekcapital

appreciation from their investments

● Havealowincomestream requirement



Investors who:● Arewillingtoaccept



● Seekinvestmentswhich conform to the requirements of the Shariah


● Havealong-terminvestment horizon of at least 5 years.



3 - 5 years 3 - 5 years 3 - 5 years At least 5 years

DISTRIBUTION POLICY

Incidental


If income is distributed, it will be automatically re-invested via issuance of additional units in the respective Fund, based on NAV per unit at the Valuation Point immediately following the distribution date.


● FundAccountingandValuation Agent




● 30November● 6November2007



● 30September● 16January2008



● 30April● 20April2011



● 31January● 18October2012


Yes No No No


ISLAMIC FUNDSASSET CLASS BOND MONEY MARKETFUND NO. 5 18FUND NAME MAS MAMFUND PROFILE● FundCategory● FundType

● IslamicBond● Income

● IslamicMoneyMarket● Income


To provide Unit Holders with higher than average returns compared to fixed deposits in medium- to long-term periods by investing in bonds and other fixed income securities which are Shariah-compliant.


To provide Unit Holders with liquidity and current income while maintaining capital stability.


INVESTMENT STRATEGY

The Fund Manager aims to meet the Fund’s investment objective by forming a diversified portfolio of sukuk of which the asset allocation, sector allocation, overall credit quality, portfolio duration and individual sukuk will depend on the Fund Manager’s assessment of the sukuk market and investment prospects.

The bulk of the Fund is invested in investment grade sukuk which offer better returns than profit from GIA. Although the Fund is actively managed, the trading strategy will depend on market opportunities and interest rate expectations


The Fund is essentially managed to provide liquidity to meet the short-term cash flow requirements of its Unit Holders while providing a reasonable income return. The Fund’s investments are largely confined to short-term Islamic money market instruments and short-dated sukuk that are highly liquid.

The Fund Manager adopts a prudent strategy in forming a portfolio of sukuk, which is in accordance with the Fund’s investment objective and the Fund Manager’s assessment of investment prospects in line with the underlying interest rates and economic outlook.



5-Year MGS Bond Index 1-month GIA Rate


Sukuk● Minimum - 70% or lower as part of temporary

defensive strategy● Maximum-98%Islamic liquid assets● Minimum-2%


Short-term Islamic money market instruments and sukuk that mature within 365 days or 1 year● 90to100%

Shariah-compliant instruments with maturity periods exceeding 365 days but not longer than 732 days, which is equivalent to approximately 2 years● 0to10%


PRINCIPAL RISKS ● MarketRisk● FundManagementRisk● ManagementCompanyRisk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● CreditRisk● InterestRateRisk


● MarketRisk● FundManagementRisk● ManagementCompanyRisk● Non-ComplianceRisk● LiquidityRisk● LoanFinancingRisk● CreditRisk● InterestRateRisk


INVESTOR PROFILE Investors who● Prefertoinvestinsukukwithalowerlevelofrisk● Havelessconcernoncapitalappreciation● Haveamedium-tolong-terminvestmenthorizon● Seek consistent, reasonable and stable income

distribution● Seek investments that comply with Shariah

requirements


Investors who● Areconservativeinnature● Havealowtoleranceofrisk● Haveashort-terminvestmenthorizon● Wish to temporarily liquidate or reduce exposure in

equities● SeekShariah-compliantinvestmentavenues



3 - 5 years Less than 1 - 3 years

DISTRIBUTION POLICY

Annually Incidental



21Master Prospectus

ASSET CLASSISLAMIC FUNDS

BOND MONEY MARKETFUND NO. 5 18FUND NAME MAS MAMGENERAL INFORMATION● Trustee● FundAccounting



● 31October● 30June2003

● MaybankTrusteesBerhad● RHBTrusteesBerhad

● 30November● 23January2007

APPROVED FOREPF-MIS

Yes Yes

3.2 Fees And Charges

3.2.1 Charges Imposed on Buying or Repurchasing of Units

This table describes the charges that you may directly incur when you buy or redeem units of the Funds.

CONVENTIONAL FUNDS

ASSET CLASS EQUITY

FUND NO. 1 2 7 8 9 10 12 13 15 17 19 20 23 24 25

FUND NAME MGF MPF MVF MBLF MEIF MRSF MPCF MNF MDF MCF MAPR MHF MGCF MUS MIE

Sales charge per unitAgentsThe ManagerEPF(Please refer to Section 9.1.1)

Upto6.50%ofNAVperunit(forMAPR,upto5%ofNAVperunit)Upto6.50%ofNAVperunit(forMAPR,upto5%ofNAVperunit)Upto3%ofNAVperunit(applicabletoEPF-MISFunds)

Repurchase charge per unit(Please refer to Section 9.1.2)

No repurchase charge

CONVENTIONAL FUNDS

ISLAMIC FUNDS

ASSET CLASS BONDMONEY

MARKET EQUITY BONDMONEY

MARKET

FUND NO. 3 11 4 6 14 16 21 22 26 27 5 18

FUND NAME MBF MMMF MAF MSIF MAFZ MAU MCS MSAP MSPF MHSF MAS MAM

Sales charge per unitAgents

The Manager

EPF

(Please refer to Section 9.1.1)

Upto0.25%of NAV per unitUpto0.25%of NAV per unitUpto0.25%of NAV per unit

NIL

NIL

NIL

Upto6.5%ofNAVperunit(forMHSF,upto5.5%ofNAVperunit)

Upto6.5%ofNAVperunit(forMHSF,upto5.5%ofNAVperunit)

Upto3%ofNAVperunit(applicabletoEPF-MISFunds)

Upto0.25%of NAV per unitUpto0.25%of NAV per unitUpto0.25%of NAV per unit

NIL

NIL

NIL

Repurchase charge per unit(Please refer to Section 9.1.2)

No repurchase charge

The charges are negotiable.


FOR ALL FUNDS

Switching fee per unit(Please refer to Section 9.3)

The Manager charges switching fee as set out below:

To recipient Funds

Switching from

Equity/Balanced/Mixed Assets Funds (except

MHSF)

BondFunds

Money MarketFunds

Fund-of-Funds with investment

in REITs

MHSF

Equity/Balanced/Mixed Assets Funds (except MHSF)

RM25 ^ RM25 ^ RM25 ^ RM25 ^ RM25^

Bond/Money Market Funds – loaded units*

RM25 ^ RM25 ^ RM25 ^ RM25 ^ RM25^

Bond/Money Market Funds – low-load units **

Sales charge RM25 ^ RM25 ^ Sales charge Sales charge

Money Market Funds – no-load units***

Sales charge Sales charge RM25 ^ Sales charge Sales charge

Fund-of-Funds with investment in REITs

1%ofamountswitched if switched within 30 days of purchase



N/A 1%ofamountswitched if switched within 30 days of purchase

MHSF 1%ofamountswitched if switched within 90 days of purchase




N/A

Notes:* Loaded units are units that have incurred a sales charge of 5.00% or more at the point of purchase and a sales charge of 3.00% for investment through EPF.** Low-load units are units that have incurred a sales charge of 0.25% or less at the point of purchase.*** No-load units are units that have not incurred any sales charge at the point of purchase.^ No charge for the first six switches per calendar year for each Unit Holder’s account. The same applies to online switching but the amount is reduced to RM15.

Switching from a Shariah-compliant fund to a conventional fund is discouraged especially for Muslim Unit Holders.

Transfer of units(Please refer to Section 9.3)

Transfer of units within a fund is allowed subject to the payment of a fee of RM3.00 per transfer.

The Manager reserves the right to waive or reduce the charges from time to time at its absolute discretion.

3.2.2 Fees Incurred When Investing in the Funds

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

CONVENTIONAL FUNDS

ASSET CLASSEQUITY

FUND NO. 1 2 7 8 9 10 12 13 15 17 19 20 23 24 25

FUND NAME MGF MPF MVF MBLF MEIF MRSF MPCF MNF MDF MCF MAPR MHF MGCF MUS MIE

Annual Management Fee Upto1.5%ofNAVperannum

Up to 1.75%of NAV per annum



Upto1.80%ofNAV per annum

Annual Trustee Fee

Upto0.07%of NAV or a minimum of RM18,000 p.a., whichever is higher

Upto0.08%ofNAV

Up to 0.06%of NAV

Upto0.07%ofNAVoraminimum of RM18,000 p.a., whichever is higher

Upto0.08%ofNAVoraminimumofRM18,000p.a., whichever is higher

23Master Prospectus

CONVENTIONAL FUNDS

ISLAMIC FUNDS

ASSET CLASS BOND MONEY MARKET EQUITY BOND

MONEY MARKET

FUND NO. 3 11 4 6 14 16 27 21 26 22 5 18

FUND NAME MBF MMMF MAF MSIF MAFZ MAU MHSF MCS MSPF MSAP MAS MAM

Annual Management Fee

Up to 0.75%ofNAV per annum

Upto0.5%of NAV per annum

Upto1.5%ofNAVperannumUp to 1.75%of NAV per annum

Up to 0.75%ofNAV per annum


Annual Trustee Fee

Upto0.07%ofNAV or a minimum of RM18,000 p.a., whichever is higher

Up to 0.07%ofNAV or a minimum of RM18,000 p.a., whichever is higher






Note:Annual Trustee Fee for MRSF, MMMF, MNF and MAFZ

(i) IftheFundsinvestlocally,onlyupto0.07%ofNAVsubjecttominimumfeeofRM18,000perannum;or(ii) IftheFundsinvestbothlocallyandoverseas,upto0.07%forthelocalNetAsset(excludingforeigncustodianfeeandcharges)andupto

0.09%fortheForeignNetAssets(excludingforeigncustodianfee).ThisissubjecttoaminimumfeeofRM18,000perannum.

Annual Trustee Fee for MPCF, MDF, MAU, MCF, MAM, MAPR, MHF, MCS, MSAP, MGCF, MUS, MIE, MSPF and MHSF exclude foreign custodian fees and charges.

In administering the Funds, only expenses directly incurred will be paid out of the Funds. These include audit fee, tax fee and administrative expenses. (Please refer to Section 9.2.3 for details on expenses directly related to the Funds).

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 any fund, either generally (for all investors) or specifically (for any particular investor) and for any period or periods of time at its absolute discretion.

3.3 Transactions

Minimum Initial Investment**(Please refer to Section 10.2.1 for details)

RM1,000 / RM500*

Minimum Additional Investment**(Please refer to Section 10.2.1 for details)

RM500 / RM50*

Minimum Repurchase Units(Please refer to Section 10.2.4 for details)

500 units

Frequency of Repurchase(Please refer to Section 10.2.4 for details)

No restriction

Minimum Holding(Please refer to Section 10.2.4 for details)

1,000 units / 100 units*

Minimum Switch between Funds(Please refer to Section 10.2.5 for details)

1,000 units

Minimum Transfer of Units(Please refer to Section 10.2.5 for details)

1,000 units

Cooling-off Period(Please refer to Section 10.2.3 for details)

6 Business Days (Please note that the cooling-off period is applicable only to qualified investors)

*These figures are only applicable to MVF, MBLF and MEIF.**Subject to change at the Manager’s discretion.


3.4 Other Information

3.4.1 Deed

FUND NAME DEED

Manulife Investment Growth Fund -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment Progress Fund -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment Bond Fund -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment Al-Faid -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment As-Saad -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment Syariah Index Fund -Master Deed dated 26 December 2002-Supplemental Deed dated 18 December 2003-Supplemental Deed dated 11 June 2007-Supplemental Deed dated 3 June 2014

Manulife Investment Value Fund -Master Deed dated 15 October 1998-Supplemental Deed dated 12 July 1999-Supplemental Deed dated 17 April 2000-Supplemental Deed dated 18 December 2003-Supplemental Deed dated 11 June 2007-Supplemental Deed dated 26 August 2009-Supplemental Deed dated 3 June 2014

25Master Prospectus

FUND NAME DEED

Manulife Investment Balanced Fund -Master Deed dated 15 October 1998-Supplemental Deed dated 12 July 1999-Supplemental Deed dated 17 April 2000-Supplemental Deed dated 18 December 2003-Supplemental Deed dated 11 June 2007-Supplemental Deed dated 26 August 2009-Supplemental Deed dated 3 June 2014

Manulife Investment Equity Index Fund -Master Deed dated 15 October 1998-Supplemental Deed dated 12 July 1999-Supplemental Deed dated 17 April 2000-Supplemental Deed dated 18 December 2003-Supplemental Deed dated 11 June 2007-Supplemental Deed dated 25 June 2009-Supplemental Deed dated 26 August 2009-Supplemental Deed dated 3 June 2014

Manulife Investment Regular Savings Fund -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-3rd Supplemental Deed dated 26 August 2004-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment Money Market Fund -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-3rd Supplemental Deed dated 26 August 2004-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment Pacific Fund -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-4th Supplemental Deed dated 9 June 2005-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment-ML Flexi Fund -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-4th Supplemental Deed dated 9 June 2005-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment Al-Fauzan -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-4th Supplemental Deed dated 9 June 2005-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014


FUND NAME DEED

Manulife Investment Dividend Fund -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-4th Supplemental Deed dated 9 June 2005-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment Al-Umran -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-4th Supplemental Deed dated 9 June 2005-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment-CM Flexi Fund -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-5th Supplemental Deed dated 28 December 2006-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment Al-Ma’mun -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-5th Supplemental Deed dated 28 December 2006-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment Shariah Asia-Pacific Fund -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-6th Supplemental Deed dated 12 April 2007-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment Asia-Pacific REIT Fund -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-6th Supplemental Deed dated 12 April 2007-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

27Master Prospectus

FUND NAME DEED

Manulife Investment-HW Flexi Fund -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-7th Supplemental Deed dated 11 June 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment-CM Shariah Flexi fund -Master Deed dated 31 January 2002-1st Supplemental Deed dated 12 June 2003-2nd Supplemental Deed dated 18 March 2004-7th Supplemental Deed dated 11 June 2007-8th Supplemental Deed dated 16 August 2007-9th Supplemental Deed dated 6 November 2008-10th Supplemental Deed dated 13 December 2010

-11th Supplemental Deed dated 6 December 2011-12th Supplemental Deed dated 3 July 2012-13th Supplemental Deed dated 3 June 2014

Manulife Investment Greater China Fund -Master Deed dated 8 August 2008-6th Supplemental Deed dated 3 June 2014

Manulife Investment U.S. Equity Fund -Master Deed dated 8 August 2008-1st Supplemental Deed dated 6 August 2009-6th Supplemental Deed dated 3 June 2014

Manulife Investment Indonesia Equity Fund -Master Deed dated 8 August 2008-2nd Supplemental Deed dated 2 August 2010-6th Supplemental Deed dated 3 June 2014

Manulife Investment Shariah Progress Fund -Master Deed dated 8 August 2008-3rd Supplemental Deed dated 16 August 2010-5th Supplemental Deed dated 3 July 2012-6th Supplemental Deed dated 3 June 2014

Manulife Investment-HW Shariah Flexi Fund -Master Deed dated 8 August 2008-4th Supplemental Deed dated 23 April 2012-6th Supplemental Deed dated 3 June 2014

3.4.2 Avenues For Advice

Unit Holders can seek assistance from the Customer Service personnel at the Manager’s office or at any location listed in Section 22 during the stated office hours. Alternatively, investors can communicate with the Manager at 03-6256 8288 or email to [email protected]

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

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

For information concerning certain risk factors which should be considered by prospective investors, see “Risk Factors” commencing on page 28.

Past performance of the Funds is not an indication of the Funds’ future performance.


4. RISK FACTORS

The following risks are the general risks involved when investing in a unit trust fund and the specific risks associated with the securities/instruments that the Funds will be investing in:

4.1 General Risks

● Market Risk

Market risk is a risk inherent to the entire market which cannot be eliminated. There are economic-wide perils and uncertainties which threaten all businesses, and that is why Unit Holders are exposed to market uncertainties. Fluctuation in the market caused by uncertainties in the economy, political and social environment will affect the market price of a unit trust fund.

● Fund Management Risk

The selection of securities which make up the investments of a unit trust fund is subjective and the securities selected may perform better or worse than the overall market. Poor management of a unit trust fund may jeopardise this performance.

● Management Company Risk

This risk refers to the possibility that the Manager may not adhere to the investment guidelines and restrictions of a unit trust fund. Besides that, there are also risks that the Manager may face insolvency and/or non-compliance of certain conditions stipulated in the Guidelines and Act. However, this risk is mitigated by having the compliance department and internal audit department in the company to ensure that the Manager and the investments made by a unit trust fund adhere to all rules.

● Non-Compliance Risk

The risk arises from non-compliance with laws, rules, regulations, prescribed practices, investment mandate, internal policies and procedures. In order to mitigate this risk, the Manager has stringent internal controls and ensures that compliance monitoring processes are undertaken.

● 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. If a unit trust fund has a large portfolio of securities that are less liquid or difficult to sell, the securities may be sold at a discount to its fair value, hence affecting the value of a unit trust fund.

● Loan Financing Risk

Unit Holders should assess the inherent risk of investing with borrowed monies which includes the risk of an increase in interest rates. Should Unit Holders provide units as collateral, Unit Holders may be required to provide additional collateral should the Fund’s unit price fall beyond a certain level.

Shariah-compliant unit trust fund’s investors are advised to seek Islamic financing to finance their acquisition.

4.2 Specific Risks

● Specific Stock Risk

The Funds’ portfolios comprise a spread of different investments, such as different stocks including listed REITs. The performance of individual stock invested can affect the overall NAV of the Funds. The risk is mitigated by careful selection of stocks as well as diversification through a basket of stocks.

● Credit Risk

Credit risk arises when an issuer or counterparty of the securities/money market instruments/placement of deposits is unable to make timely payments on interest/profit, principals and proceeds from realisation of investments upon maturity. This may lead to a default in the payment of principal and interest/profit and ultimately a reduction in the value of a unit trust fund. The Funds have a specific investments policy whereby for investment in corporate bonds/sukuk, only those that are bank-guaranteed or rated at least “BBB’ by RAM Rating Services Berhad and/or The Malaysian Rating Corporation Berhad or “AA” by Standard & Poor’s or Moody’s can be accepted. These corporate bonds/sukuk are considered investment grade bonds/sukuk and have relatively good credit ratings. The credit risk is managed by ensuring that the Funds will only invest in fixed income instruments/sukuk which are considered safe and have good credit ratings.

● Interest Rate Risk

Unlisted fixed income securities/sukuk are sensitive to movements in interest rate. When interest rates rise, the values of unlisted fixed income securities/demand for sukuk fall and vice versa, thus affecting the valuation of the Fund. Such risk is managed through investing in unlisted fixed income securities with different durations and portfolio diversification whereby investments are diversified in a portfolio of securities from different market sectors.

29Master Prospectus

The above interest rate is a general economic indicator that will have an impact on the management of the fund regardless whether it is a Shariah-compliant unit trust fund or otherwise. It does not in any way suggest that the Shariah-compliant Fund will invest in conventional financial instruments. All the investments carried out for the Shariah-compliant Fund are in accordance with Shariah requirements.

● Country Risk

The investment of the Fund may be affected by risks specific to the country in which it invests. Such risks include changes in the country’s economic fundamentals, social and political stability, currency movements and foreign investment policies as well as other external factors. To mitigate the risk, the Fund Manager will diversify the Fund’s investments by investing into different sectors and countries.

● Regulatory Risk

This is the risk that any changes in national or economic policies or regulations may have an adverse effect on the capital markets and could consequentially have an impact on the investments of the Fund. To minimise the impact of regulatory risk, the Manager will seek to keep abreast of regulatory developments that may affect specific investments of the Fund while attempting to pre-empt any regulatory changes that may adversely impact the investments of the Fund.

● Currency Risk

Also known as foreign exchange risk. This risk is associated with investments that are denominated in foreign currencies. When the foreign currencies fluctuate unfavourably against Ringgit Malaysia, the investments will face currency losses in addition to the capital gains/losses. This will lead to a lower NAV of the Fund. Hedging may be applied to minimise the currency risk, if necessary.

● Reclassification of Shariah Status Risk

This is the risk that the currently held Shariah-compliant securities in the portfolio of Shariah-compliant Funds may be reclassified to be Shariah non-compliant in the periodic review of the securities by the SACSC, the Shariah Adviser or the Shariah Boards of the relevant Islamic indices. If this occurs, the Manager will take the necessary steps to dispose of such securities.

● Small- to Medium-Size Companies Risk

The Fund may be exposed to the risk of investing in small and medium market capitalisation companies (companies which are not part of FBM KLCI). Generally, the smaller the market capitalisation of a company, the less liquid are its shares being traded. Such companies’ stocks are also usually more volatile than their larger counterparts, and hence more risky. However, the risk taken is also relatively matched by a higher potential for gains. This risk is typically managed by adopting a bottom-up approach in the stock selection and focusing mainly on companies with high growth potential, solid earnings record and sound management, which therefore, has the potential to provide sufficient returns to offset the risk taken.

The specific risks associated with the securities/instruments that the Funds invest in are stated below:

ASSET CLASS

CONVENTIONAL FUNDS

EQUITY

FUND NO. 1 2 7 8 9 10 12 13 15 17 19 20 23

FUND NAME MGF MPF MVF MBLF MEIF MRSF MPCF MNF MDF MCF MAPR MHF MGCF

Specific Stock Risk √ √ √ √ √ √ √ √ √ √ √ √ √Credit Risk √ √ √ √ √ √ √ √ √ √ √ √ √Interest Rate Risk √ √ √ √Country Risk √ √ √ √ √Regulatory Risk √ √ √ √ √Currency Risk √ √ √ √ √Small- to Medium-Size Companies Risk

√

CONVENTIONAL FUNDS ISLAMIC FUNDS



MARKET

FUND NO. 3 11 4 6 14 16 21 22 26 27 5 18

FUND NAME MBF MMMF MAF MSIF MAFZ MAU MCS MSAP MSPF MHSF MAS MAM

Specific Stock Risk √ √ √ √ √ √ √ √Credit Risk √ √ √ √ √ √ √ √ √ √ √ √Interest Rate Risk √ √ √ √ √ √ √Country Risk √Regulatory Risk √Currency Risk √Reclassification of Shariah Status Risk

√ √ √ √ √ √ √ √

Small- to Medium-Size Companies Risk

√


Specific Risks Associated With Investment in MAPR

● Property Taxes Risk

Any increase in property taxes law or requirement could have an adverse impact to income gained from sales of any property. This risk is mitigated by diversifying the portfolio across various property sub-segments and lessened further by investments in multiple countries to minimise concentration in any single market or economy.

● Rental Risk

Any material changes in the regulatory limits on rent could have an adverse impact on the income rental which may reduce dividend payout. This risk is mitigated by investing in a wide range of property sub-segments across different counties in the permissible region of investments. A close monitoring of rental rates via channel checks by the Fund Manager is regularly required to ensure timely portfolio decision-making.

● Building Depreciation Risk

The book value of an asset acquired, as per the accounting practice, generally has a scheduled depreciation established over a period of time which may affect the book value of the asset. This risk is lessened through the process of portfolio diversification and consistent investment in stocks with good asset growth potentials.

● Management Risk

The loss of key personnel, or the ability of the relevant businesses to retain or replace qualified employees, could have an adverse effect on its operating results and its ability to generate cash and make distributions to Unit Holders. This risk is mitigated by limiting single stock exposure to certain observable thresholds.

● Liquidity Risk

Illiquid assets that may not be able to be sold for a price that equates to the valuation of the assets, and any sale of such assets under such circumstances may have an adverse effect on the NAV of the Fund. As a consequence, the realisable value of an asset may be less than the full value based on its estimated future cash flows. This risk is minimised through the process of stock selection and portfolio diversification by the Fund Manager.

Specific Risk Associated With Investment in MGCF

● Risk of Non-Compliance

TheFundisinvestingincompanieswithlargecapitalisationaswellasChina-basedcompanies(companiesthatderivemorethan50%ofassetsand/or earnings from China) listed on approved overseas markets. During the course of trading by the Fund, companies invested in may change their policies, causing their stocks to be non-compliant to the investment mandate.

Specific Risks Associated With Investment in MUS And MIE

Specific Risks Of The Feeder Fund

● Currency Risk

As the Fund is denominated in Ringgit Malaysia and the investments in Class I units of the Target Fund are denominated in US Dollar, the performance of the Fund will be affected by movements in the exchange rate between Ringgit Malaysia and US Dollar. When the US Dollar fluctuates unfavourably against Ringgit Malaysia, the investments will face currency losses in addition to the capital gains/losses. This will lead to a lower NAV of the Fund. Hedging may be applied to minimise the currency risk, if necessary.

● Liquidity Risk

Liquidity risk is associated to the Fund as the Target Fund may not be able to meet large redemption requests in a timely manner. Should there be large redemption requests from the Fund, the Target Fund may defer redemptions for such period as considered necessary to sell part of the Target Fund’s assets in order to be able to meet the substantial redemption requests. To mitigate the risk, the Manager monitors potential events that could trigger large redemptions and hold more of the assets of the Fund in cash or cash equivalents accordingly.

● Concentration Risk

The risk is associated to a feeder fund, where the investments of such funds are not diversified and are mainly invested in another collective investment scheme. The Fund’s risk is increased as any adverse effect on the Target Fund will inevitably affect the Fund. However, the risk is mitigated as the Target Fund invests in a diversified portfolio of equities and equity-related securities.

● Risk of Non-Compliance

The risk of non-compliance to the deed of the Target Fund, internal policies, securities law and the Target Fund’s manager may adversely affect the investment of the Fund. The risk is contained by constant monitoring of published non-compliance reports.

31Master Prospectus

● Regulatory Risk

Any changes in national or economic policies or regulations may hinder the Fund from its ability to continuously invest in the Target Fund and this may impact upon the investments of the Fund. To minimise the impact, the Manager seeks to keep abreast of regulatory developments that may affect the Fund’s ability to invest in the Target Fund while attempting to pre-empt any regulatory changes that may adversely impact the Fund’s investment in the Target Fund.

Specific Risks Of The Target Fund Of MUS

● Foreign Exchange/Currency Risk

Although different classes of units may be denominated in a specific pricing currency, the assets relating to that class of units of the Target Fund may be invested in securities denominated in other currencies. The NAV of the Target Fund as expressed in its base currency will fluctuate in accordance with the changes in the foreign exchange rate between the base currency of the Target Fund and the currencies in which the Target Fund’s investments are denominated. The Target Fund may therefore be exposed to foreign exchange/currency risk. It may not be possible or practicable to hedge against the consequent foreign exchange/currency risk exposure.

The appointed investment manager may enter into currency transactions (within the limits of the management regulations of the Target Fund) at its sole discretion, for the purposes of efficient portfolio management and for the purposes of hedging. There can be no assurance that such hedging transactions will be effective or beneficial or that there will be a hedge in place at any given time.

● Structured Products Risk

The Target Fund may invest in structured products. These include interests in entities organised solely for the purpose of restructuring the investment characteristics of certain other investments. These investments are purchased by the entities, which then issue transferable securities (the structured products) backed by, or representing interests in, the underlying investments. The cash flow on the underlying investments may be apportioned among the newly issued structured products to create transferable securities with different investment characteristics such as varying maturities, payment priorities or interest rate provisions. The extent of the payments made with respect to structured investments depends on the amount of the cash flow on the underlying investments.

When it is in the best interests of the unit holders, credit-linked notes issued by first class financial institutions may also be acquired. The use of credit-linked notes can overcome problems and mitigate certain risks associated with direct investment in the underlying assets. Credit-linked notes referenced to underlying securities, instruments, baskets or indices, which may be held, are subject to both issuer risk and the risk inherent in the underlying investment. When such credit linked notes will be traded on regulated markets, the Target Fund will comply with the investment limits described in the management regulations of the Target Fund. Should credit linked notes be not traded on regulated markets, they would be treated as equivalent to transferable securities as further described in the management regulations of the Target Fund. The investment limits will equally apply to the issuer of such instrument and to the underlying asset.

The Target Fund may also invest in indexed securities which are transferable securities linked to the performance of certain securities, indices, interest rates or currency exchange rates. The terms of such securities may provide that their principal amounts or just their coupon interest rates are adjusted upwards or downwards at maturity or on established coupon payment dates to reflect movements in various measures of underlying market or security while the obligation is outstanding.

Structured products are subject to the risks associated with the underlying market or security, and may be subject to greater volatility than direct investments in the underlying market or security. Structured products may entail the risk of loss of principal and/or interest payments as a result of movements in the underlying market or security.

● Special Risks of Hedging and Income Enhancement Strategies

The Target Fund may engage in various portfolio strategies to attempt to reduce certain risks of its investment and enhance return. These strategies may include the use of options, forward foreign exchange contracts, swaps, credit default swaps (as defined in the management regulations of the Target Fund), interest rate swaps, equity swaps, swaptions, total return swaps, currency swaps and inflation-linked swaps, futures contracts and options thereon, including international equity and bond indices, as well as efficient portfolio management techniques, including securities lending and borrowing and repurchase and reverse repurchase transactions, as described in the management regulations of the Target Fund.

The use of derivatives and efficient portfolio management techniques involves far higher risk than standard investment instruments and may have an adverse impact on the performance of the Target Fund. There can therefore be no assurance that the investment objectives of the Target Fund will be achieved.

In addition, the use of derivatives and efficient portfolio management techniques involves particular risk, mainly associated with leverage, whereby large liabilities can be incurred using relatively small financial means. This is the risk associated with the use of relatively small financial resources to obtain a large number of commitments.

● Special Risk Considerations for Investing in Equities and Equity-Linked Instruments

The buying and selling of equities and equity-linked instruments carries a number of risks, the most important being the volatility of the capital markets on which those securities are traded and the general insolvency risk associated with the issuers of equities, including index and basket certificates. Index and basket certificates rarely carry any entitlement to repayment of invested capital or to interest or dividend payments. The calculationof the reference indexorbasketusually takes accountof cost and/or fees; and the repaymentof invested capital is usually entirelydependent on the performance of the reference index or basket. Although index and basket certificates are debt instruments, the risk they carry is


inter alia an equity risk since the certificate performance depends on that of an index or basket which itself is dependent on the performance of its own components (e.g. securities). The value of certificates that inversely reflect the performance of their components may fall when markets rise. The risk that the Target Fund may lose all or part of its value cannot be excluded.

Potential investors should be aware of the additional risks as well as of the general price risks when investing in shares. By picking equities on the basis of earning potential rather than country or origin or industry, performance will not depend on general trends.

Equity-linked instruments may comprise warrants, which confer on the investor the right to subscribe a fixed number of ordinary shares in the relevant company at a pre-determined price for a fixed period. The cost of this right will be substantially less than the cost of the share itself. Consequently, the price movements in the share will be multiplied in the price movements of the warrant. This multiplier is the leverage or gearing factor. The higher the leverage is, the more attractive the warrant. By comparing, for a selection of warrants, the premium paid for this right and the leverage involved, their relative worth can be assessed. The levels of the premium and gearing can increase or decrease with investor sentiment.

Warrants are therefore more volatile and speculative than ordinary shares. Investors should be warned that prices of warrants are extremely volatile and that it may not always be possible to dispose of them. The leverage associated with warrants may lead to loss of the entire price or premium of the warrants involved.

● Depository Receipts

Investment in a given country may be made via direct investments into that market or by depository receipts traded on other international exchanges in order to benefit from increased liquidity in a particular security and other advantages. A depository receipt traded on an eligible market is deemed an eligible transferable security regardless of the eligibility of the market in which the security it relates to locally trades.

● Investments in Specific Countries, Sectors, Regions or Markets

Where an investment objective restricts investment to specific countries, sectors, regions or markets diversification may be limited. Performance may differ significantly from the general trend of the global equity markets.

● Reinvestment of Collateral Received in Connection With Securities Lending and Repurchase Transactions

Pioneer Funds may reinvest the cash collateral received in connection with securities lending and repurchase transactions in accordance with its management regulations. Reinvestment of collateral involves risks associated with the type of investments made.

Reinvestment of collateral may create a leverage effect which will be taken into account for the calculation of Pioneer Funds’ global exposure.

● Global Exposure Risk

Pioneer Funds must employ a risk-management process which enables it to monitor and measure at any time the risk of the positions in its portfolios, the use of efficient portfolio management techniques, the management of collateral and their contribution to the overall risk profile of each of the sub-fund of Pioneer Funds.

In relation to financial derivative instruments Pioneer Funds must employ a process for accurate and independent assessment of the value of OTC derivatives as referred to in the management regulations of Pioneer Funds and Pioneer Funds shall ensure for each sub-fund that its global risk exposure relating to financial derivative instruments does not exceed the total net value of its portfolio.

The global risk exposure is calculated taking into account the current value of the underlying assets, the counterparty risk, future market movements and the time available to liquidate the positions.

Each sub-fund within Pioneer Funds may invest, according to its investment policy and within the limits laid down in the management regulations of Pioneer Funds in financial derivative instruments, provided that the exposure to the underlying assets does not exceed in aggregate the investment limits laid down in the management regulations.

Pioneer Funds may use Value at Risk (“VAR”) in order to calculate the global risk exposure of each relevant sub-fund and to ensure that such global risk exposure relating to financial derivative instruments does not exceed the total net asset value of such sub-fund.

Attention is drawn to the potential additional leverage which may result from the use of a VAR methodology to calculate the global risk exposure relating to financial derivative instruments for the relevant sub-fund.

Where a sub-fund invests in index-based financial derivative instruments, these investments do not necessarily have to be combined to the limits laid down in the management regulations of Pioneer Funds.

Where a transferable security or money market instrument embeds a derivative, the latter must be taken into account when complying with the above outlined requirements.

● Sub-Underwriting

The Investment Manager may engage in sub-underwriting transactions on behalf of the Target Fund. In an underwriting transaction a bank, stock-broker, major shareholder of the company or other related or unrelated party may underwrite an entire issue of securities. The Target Fund may in turn sub-underwrite a portion of that issue of securities pursuant to a sub-underwriting transaction. The Investment Manager may only engage in

33Master Prospectus

sub-underwriting in relation to securities which the Target Fund could otherwise invest in directly in accordance with the investment objective and policies of the Target Fund and the relevant investment restrictions. The Target Fund must maintain at all times sufficient liquid assets or readily marketable securities to cover its obligations under any sub-underwriting arrangements.

● Investment in Financial Derivative Instruments

The Target Fund may invest a portion of its assets in financial derivative instruments. The risks posed by such instruments and techniques, which can be extremely complex and may involve leverage, include: (1) credit risks (the exposure to the possibility of loss resulting from a counterparty’sfailuretomeetitsfinancialobligations);(2)marketrisk(adversemovementsinthepriceofafinancialasset);(3)legalrisks(thecharacterisation of a transaction or a party’s legal capacity to enter into it could render the financial contract unenforceable and the insolvency or bankruptcyofacounterpartycouldpre-emptotherwiseenforceablecontractrights);(4)operationalrisk(inadequatecontrols,deficientprocedures,human error, system failure or fraud); (5) documentation risk (exposure to losses resulting from inadequate documentation); (6) liquidity risk(exposure to losses created by an inability prematurely to terminate the derivative); (7) system risk (the risk that financial difficulties in oneinstitution or amajormarket disruptionwill cause uncontrollable financial harm to the financial system); (8) concentration risk (exposure tolossesfromtheconcentrationofcloselyrelatedriskssuchasexposuretoaparticular industryorexposurelinkedtoaparticularentity);and(9)settlement risk (the risk faced when one party to a transaction has performed its obligations under a contract but has not yet received value from its counterparty).

Use of derivative techniques involves certain additional risks, including (i) dependence on the ability to predict movements in the price of the securitieshedged;(ii)imperfectcorrelationbetweenmovementsinthesecuritiesonwhichthederivativeisbasedandmovementsintheassetsoftheunderlyingportfolio;and(iii)possibleimpedimentstoeffectiveportfoliomanagementortheabilitytomeetshort-termobligationsbecauseapercentage of the portfolio’s assets is segregated to cover its obligations.

In hedging a particular position, any potential gain from an increase in value of such position may be limited.

● Short Positions

The Target Fund may use financial derivative instruments to implement synthetic short positions. The Target Fund may not necessarily off-set such short positions with corresponding long positions. Taking short positions involves leverage of the Target Fund’s assets and presents various risks. If the price of the instrument or market which the Target Fund has taken a short position on increases, then the Target Fund will incur a loss equal to the increase in price from the time that the short position was entered into plus any premiums and interest paid to a counterparty. Therefore, taking short positions involves the risk that losses may be exaggerated, potentially losing more money than the actual cost of the investment.

● Counterparty Risks

The Target Fund may enter into OTC derivative agreements, as well as efficient portfolio management techniques including swap agreements as more fully described in its investment policy. Such agreements may expose the Target Fund to risks with regard to the credit status of its counterparties and their capacity to meet the conditions of such agreements.

Consistent with best execution and at all times when it is in the best interests of the Target Fund and its unit holders, the Target Fund may also enter into such OTC derivative agreements and/or efficient portfolio management techniques with other companies in the same Group of Companies as the Management Company or Investment Manager.

The Target Fund is subject to the risk that the counterparty might not fulfil its obligations under the agreement concerned. The default risk arising fromsuchtransactionsmay,however,notexceed10%ofthenetassetsifthecounterpartyisacreditinstitution.Inallothercases,thelimitisamaximumof5%ofthenetassetvalueoftheTargetFund.

● Custody Risk

The Target Fund assets are deposited with the Société Générale Bank & Trust (“Depositary”) and identified in the Depositary’s books as belonging to the Target Fund. Assets, except cash, are segregated from other assets of the Depositary which mitigates but does not prevent the risk of non-restitution in the event of bankruptcy of the Depositary. Cash deposits are not segregated in this way and therefore exposed to increased risk in the event of bankruptcy.

The Target Fund assets are also held by sub-custodians appointed by the Depositary in countries where the Target Fund invests and, notwithstanding compliance by the Depositary with its legal obligations, are therefore exposed to the risk of bankruptcy of those sub-custodians. The Target Fund may invest in markets where custodial or settlement systems are not fully developed, where assets are held by a sub-custodian and where there may be a risk that the Depositary may have no liability for the return of those assets.

● Investment Management and Opposing Positions

The Investment Manager, or another member of the group of companies to which it belongs, may make investment decisions, undertake transactions and maintain investment positions for one or more clients that may impact the interests of other clients and that may pose a conflict of interest for the Investment Manager, particularly if the company and/or its staff earn higher compensation from one mandate, product or client than for another. Such conflicts, for instance, are present when the Investment Manager, or another member of the group of companies to which it belongs, buys and sells the same security at the same time for different clients or maintains market positions in the same instruments with market exposure in opposite directions at the same time for different clients. The Investment Manager and individual portfolio managers may manage long only, long-short or short only mandates where such conflicts of interest may be especially prevalent. Such investment decisions, transactions or positions are taken, made and maintained in accordance with established policies and procedures designed to ensure an appropriate aggregation and allocation of trades and investment decisions executed or taken without creating undue advantage or disadvantage to any of the Investment Manager’s mandates, products or client’s and in line with the relevant mandates and investment guidelines for such clients.


In certain situations though, management of these conflicts may result in a loss of investment opportunity for clients or may cause the Investment Manager to trade or maintain market exposures in a manner that is different from how it would trade if these conflicts were not present, which may negatively impact investment performance.

● Conflicts of Interest

The Management Company or its affiliates may effect transactions in which the Management Company or its affiliates have, directly or indirectly, an interest which may involve a potential conflict with the Management Company’s duty to the Target Fund. Neither the Management Company nor any of its affiliates shall be liable to account to the Target Fund for any profit, commission remuneration made or received from or by reason of such transactions or any connected transactions nor will the Management Company’s fees, unless otherwise provided, be adjusted. The Management Company will ensure that such transactions are effected on terms which are no less favourable to the Target Fund than if the potential conflict had not existed. Such potential conflicting interests or duties may arise because the Management Company or its affiliates may have invested directly or indirectly in the Target Fund. More specificially, the Management Company, under the rules of conduct applicable to it, must try to avoid conflicts of interests and, when they cannot be avoided, ensure that its clients (including the Target Fund) are fairly treated.

● Securities Lending

Securities lending involves the risk that the borrower may fail to return the securities in a timely manner or at all. As a result, the Target Fund may lose money and there may be a delay in recovering the lent securities. The Target Fund could also lose money if it does not recover the securities and/or the value of the collateral falls, including the value of investments made with cash collateral. The Target Fund’s portfolio exposure to market risk will not change by engaging in securities lending. However, securities lending carries the specific risk of counterparty defaulting. In such a case, the collateral provided will need to be sold and the lent securities repurchased at the prevailing price, which may lead to a loss in value of the Target Fund. Securities lending also carries operational risks such as the non-settlement of instructions associated with securities lending. Such operational risks are managed by means of procedures, controls and systems implemented by the securities lending agent and the Management Company.

● Withholding Tax Risk

Certain income of the Target Fund may be subject to withholding taxes, and any such taxes will reduce the return on the investments held by the Target Fund. However, the Target Fund (through the Management Company or its agents) may need to receive certain information from an investor, including from MUS, for the Target Fund to avoid certain withholding taxes. In particular, the Foreign Account Tax Compliance Act (“FATCA”) recently adopted in the United States will require the Target Fund (or the Management Company) to obtain certain identifying information about its investors and potentially provide that information to the United States Internal Reveneu Service. Subject to certain transition rules,investorsthatfailtoprovidetheManagementCompanyoritsagentswiththerequisiteinformationwillbesubjecttoa30%withholdingtaxon distributions to them and on proceeds from any sale or disposition. Any such withholding taxes imposed will be treated as a distribution to the investors that failed to provide the necessary information. In addition, the units of such investors shall be subject to compulsory redemption.

Specific Risks Of The Target Fund Of MIE

● Risk linked To Share Markets

The risks associated with investments in shares (and similar instruments) include significant fluctuations in prices, negative information about the issuer or market and the subordination of a company’s shares to its bonds. Moreover, any fluctuations are often amplified in the short term. The risk that one or more companies will suffer a downturn or fail to grow can have a negative impact on the performance of the overall portfolio at a given time.

There is no guarantee that investors will see an appreciation in value. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay.

There is no guarantee that the investment objective will actually be achieved.

The Target Fund may invest in initial public offerings (“IPOs”). In this case, there is a risk that the price of the newly-floated shares may see greater volatility as a result of factors such as the absence of an existing public market, non-seasonal transactions, the limited number of securities that can be traded and a lack of information about the issuer. The Target Fund may hold such securities for only a very short time, which tends to increase the costs.

The Target Fund invests in growth stocks which may be more volatile than the market in general and may react differently to economic, political and market developments and to specific information about the issuer. Growth stocks traditionally show higher volatility than other stocks, especially over short periods. These stocks may also be more expensive in relation to their profits than the market in general.

Consequently, growth stocks may react with more volatility to variations in profit growth.

The Target Fund may base its objective on simple equity market growth, which produces higher than average volatility.

Managers may temporarily adopt a more defensive attitude if they consider that the equity market or economy of the countries in which the Target Fund invests is experiencing excessive volatility, a persistent general decline, or other unfavourable conditions. In such circumstances, the Target Fund may be unable to pursue its investment objective.

35Master Prospectus

● Country Risk

The Target Fund invests in Indonesia market only. It may therefore show greater than average volatility due to a high degree of concentration, greater uncertainty because less information is available, less liquidity, or greater sensitivity to changes in market conditions (social, political and economic conditions). In addition, Indonesia market offers less security than the majority of international developed market. For this reason, services for portfolio transactions, liquidation and custody on behalf of the Target Fund invested in Indonesia market may carry greater risk.

● Liquidity Risk

There is a risk that investments made by the Target Fund may become illiquid due to an over-restricted market (often reflected by a very broad bid-askspreadorbysubstantialpricemovements),iftheir“rating”declinesoriftheeconomicsituationdeteriorates;consequently,itmaynotbepossible to sell or buy these investments quickly enough to prevent or minimize a loss in the Target Fund.

● Currency Exchange Risk

The Target Fund may hold assets denominated in currencies that differ from the Target Fund’s denomination currency, and may be affected by exchange rate fluctuations between the Target Fund’s denomination currency and the other currencies and by changes in exchange rate controls. If the currency in which a security is denominated appreciates in relation to the denomination currency of the Target Fund, the exchange value of the security in theTargetFund’s denomination currencywill appreciate; conversely, a depreciation of the currency inwhich the security isdenominated will lead to a depreciation in the exchange value of the security in the Target Fund’s denomination currency.

When the manager is willing to hedge the currency exchange risk of a transaction, there is no guarantee that such operation will be completely effective.

● Inflation Risk

All types of investments (refers to investments of the Target Fund) are concerned by this risk. Over time, return of investments may not keep pace with inflation, leading to a reduction in an investment’s purchasing power.

● Taxation Risk

The value of an investment may be affected by the application of tax laws in various countries, including withholding tax, changes in government, economic or monetary policy in the countries concerned. As such, no guarantee can be given that the financial objectives will actually be achieved.

Taxation laws modifications may be due to diverse reasons such as changes in government (different economic views), changes in economic or monetary policies in the countries where investments are concerned causing a taxation risk.

● Emerging Market Risk

Investing in emerging markets are likely to be subject to a higher than average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity, or due to greater sensitivity to changes in market conditions (social, political and economic conditions). In addition, some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio administration and transactions on behalf of funds invested in emerging markets may carry greater operational risk. The Target Fund and investors agree to bear these risks.

● Derivatives Risk

In order to hedge and/or to increase the Target Fund’s return, the Target Fund is allowed to use derivative investments’ techniques (such as hedging derivative investment strategy and trading derivative investment strategy) and instruments under the circumstances set forth in section 6.2.4 (in particular, (i) warrants on securities, (ii) agreements regarding the exchange of securities, rates, currencies, inflation, volatility and other financial derivative instruments, (iii) contracts for difference [CFDs], (iv) credit default swaps [CDSs], (v) futures and (vi) options on securities, rates or futures). The investor’s attention is drawn to the fact that these derivatives invested for trading purposes with the objective to create additional revenue will nevertheless increase the volatility of the Target Fund.

● Warrant Risk

The investor’s attention is drawn to the fact that warrants are complex, volatile, high-risk instruments: the risk of a total loss of the invested capital is great. In addition, one of the principal characteristics of warrants is the “leverage effect”, which is seen in the fact that a change in the value of the underlying asset can have a disproportionate effect on the value of the warrant. Finally, there is no guarantee that, in the event of an illiquid market, it will be possible to sell the warrant on a secondary market.

● Risks related to investments restrictions in some countries

Investments in some countries (China, India, Indonesia, Japan, Saudi Arabia, and Thailand) involve risks linked to restrictions imposed on foreign investors and counterparties, higher market volatility as compared to the international markets (such as London, New York and Paris) and the risk of lack of liquidity for some investments of the portfolio. Consequently, some shares may not be available to the Target Fund due to the number of foreign shareholders authorised or if the total investments permitted for foreign shareholders have been reached. In addition, the repatriation by foreign investors of their share of net profits, capital and dividends may be restricted or require the approval of the government. The Target Fund will only invest if it considers that the restrictions are acceptable. However, no guarantee can be given that additional restrictions will not be imposed in future.


● Counterparty Risk

This risk relates to the quality or the default of the counterparty with which the Target Fund negotiates, in particular involving payment for/delivery of financial instruments and the signing of agreements involving forward financial instruments. This risk is associated with the ability of the counterparty to fulfil its commitments (for example: payment, delivery and reimbursement).

● Operational & Custody Risk

Somemarkets are less regulated thanmostof the internationalmarkets;hence, the services related to custodyand liquidation for the fundsonsuch markets could be more risky.

Note: “Some markets” refer to China, India, Indonesia, Japan, Saudi Arabia, and Thailand while “international markets” includes London, New York and Paris.

37Master Prospectus

5. DETAILED INFORMATION OF THE FUNDS

The Manager believes that each investor is unique and has his/her preference in investment. Hence, each investor should be given choices in determining what type of unit trust is suitable for them. Our Funds are specifically designed to cater for different investment needs of the general investing public. As a guide to investors in choosing which Fund is best suited to their investment objectives, detailed information on each of the Funds is provided in this part of the Master Prospectus. Investors should read and understand the profile of the Funds carefully before making an investment decision, taking into consideration the investment objectives and principal investment strategies of the Funds which are presented in the accompanying pages.

5.1 MANULIFE INVESTMENT GROWTH FUND

Asset Class Equity (Conventional Fund)

Fund No. 1

Fund Category / Type Equity / Growth

Investment Objective MGF seeks to provide Unit Holders with a steady medium- to long-term capital growth at a reasonable level of risk through investments in a diversified portfolio of equities with a large market capitalisation.

Note: Any material changes to the Fund’s investment objective would require Unit Holders’ approval.

Investors’ Profile The Fund is designed for investors with a higher risk tolerance and low income requirement. Investors should ideally have a medium- to long-term investment horizon of between 3 and 5 years.

Investment Style & Strategy The Fund invests in a diversified portfolio of Malaysian equities and money market instruments to meet its investment objective. The Fund Manager adopts a bottom-up approach by identifying companies with growth and earnings prospects. The Fund may also invest in companies that have the potential of becoming blue chip stocks (established companies with earnings track record of at least 5 years) in future. The primary focus is on the underlying growth fundamental of the company although other factors such as macroeconomic variables, liquidity conditions and political risk factors are also considered important.

The Fund Manager emphasises strongly on internal research. Frequent company visits are made in order to obtain local knowledge and corporate information. Besides using traditional valuation yardsticks such as growth rate, price earnings (P/E) ratio, price-to-book (P/BV) ratio and price/earnings to growth (PEG) ratio, the Fund Manager focuses on the company’s capital structure, intrinsic value, cash flow, replacement costs, revised net asset value (RNAV), management and potential growth trend. In addition, any active and frequent trading strategy will depend on investment opportunities or valuations.

Type and Characteristic of Securities / Instruments

The Fund predominantly invests in the equity market. Money market instruments are only used to maintain liquidity position and also as a short-term alternative should the equity market become extremely volatile. Equities are stocks and shares of companies listed on approved exchanges where their prices are quoted every trading day. The risks associated with equity investment include price volatility where stocks prices may go up or down and trading status where stocks transactions may be suspended. As for money market instruments, these include term deposits, repo and short-term cash placements with financial institutions.

Asset Allocation Strategy

TheFundmayinvestupto98%ofitsNAVintheequitymarket.TheFundaimstobeatleast70%investedatalltimes;howeveraspartofthetemporary defensive strategy, the Fund may temporarily lower the equity exposure to below the above stated range and place the surplus cash into moneymarketinstruments.TheFundwillmaintainatleast2%ofitsNAVinliquidassets.

Performance Benchmark

The performance of the Fund is measured against the FBMEMAS or any other equivalent benchmark to be determined by the Manager. The benchmark is available at the Manager’s website.

Risk Management Strategies and Techniques

The Fund Manager actively monitors the investments to manage the risks of equity investment of the Fund. Although the Fund primarily invests in Malaysian equities, the level of equity investments changes as the Fund Manager purchases and/or sells equities. If the investment climate is unfavourable and the prospect of equity investments is not promising, the Fund Manager may sell shares in the Fund and reduce the Fund’s exposure in equity investments. This strategy will minimise the potential loss which may arise when share prices decline. The Fund Manager also structures the investments of the Fund so that they are well diversified across a range of securities in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industries to reduce sector/industry specific risk.


5.2 MANULIFE INVESTMENT PROGRESS FUND


Fund No. 2

Fund Category / Type Equity / Small-cap

Investment Objective MPF seeks to provide Unit Holders with steady long-term capital growth at a reasonable level of risk by investing in a diversified portfolio of small- to medium-size public-listed companies.


Investors’ Profile The Fund is designed for investors who are willing to accept a higher level of risk and for investors who seek capital appreciation from their investments. These investors should also have low income requirements and ideally have a medium- to long-term investment horizon of between 3 and 5 years.

Investment Style & Strategy The Fund invests in a diversified portfolio of small-to medium-size companies listed in Bursa Malaysia which are not part of the FBM KLCI constituents (at the point of purchase). The Fund Manager adopts a bottom-up approach in identifying companies with exceptional growth and visible earnings prospects during the stock selection process. Its value-based approach, on the other hand, seeks out companies which the Fund Manager considers are undervalued relative to their assessed true value. The primary focus is on the underlying growth fundamental of the company and its valuation relative to its intrinsic value although other factors such as macroeconomic variables, liquidity conditions and political risk factors are also considered important.

The Fund Manager emphasises strongly on internal research. Frequent company visits are made in order to obtain local knowledge and corporate information. Besides using traditional valuation yardsticks such as growth rate, price earnings (P/E) ratio, price to book (P/B) ratio and price/earnings to growth (PEG) ratio, the Fund Manager focuses on the company’s capital structure, intrinsic value, cash flow, replacement costs, revised net asset value (RNAV), management and potential growth trend. In addition, any active and frequent trading strategy will depend on investment opportunities or valuations.


The Fund invests in equities of companies listed in Bursa Malaysia which are not part of the FBM KLCI constituents (at the point of purchase). Money market instruments are only used to maintain liquidity position and also as a short-term alternative should the equity market become extremely volatile. Equities are stocks and shares of companies listed on approved stock exchanges where their prices are quoted every trading day. The risks associated with equity investments include price volatility where stocks prices may go up or down and trading status where stocks transactions may be suspended. As for money market instruments, these include term deposits, repo, short-term cash placements with financial institutions.


TheFundmay invest up to 98%of itsNAV in the equitymarket.TheFund aims to be at least 70% invested at all times, but as part of thetemporary defensive strategy, the Fund may temporarily lower the equity exposure to below the above stated range and place the surplus cash into moneymarketinstruments.TheFundwillmaintainatleast2%ofitsNAVinliquidassets.


TheperformanceoftheFundismeasuredagainstMPIcomprising50%FTSEBursaMalaysiaSmallCapIndex+50%FTSEBursaMalaysiaMid70 Index or any other equivalent benchmark to be determined by the Manager. These benchmarks are chosen to reflect the Fund’s investments in equities of companies listed in Bursa Malaysia which are not part of the FBM KLCI constituents. This composite benchmark is chosen as it represents the Fund’s strategy and expected portfolio exposure. The benchmark is available at the Manager’s website.


The Fund Manager actively monitors the investments to manage the risks of equity investment of the Fund. Although the Fund primarily invests in Malaysian equities, the level of equity investments changes as the Fund Manager purchases and/or sells equities. If the investment climate is unfavourable and the prospect of equity investments is not promising, the Fund Manager may sell shares in the Fund and reduce the Fund’s exposure in equity investments. This strategy will minimise the potential loss which may arise when share prices decline. The Fund Manager also structures the investments of the Fund so that they are well diversified across a range of securities in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industry to reduce sector/industry specific risk.

39Master Prospectus

5.3 MANULIFE INVESTMENT BOND FUND

Asset Class Bond (Conventional Fund)

Fund No. 3

Fund Category / Type Bond / Income

Investment Objective MBF seeks to provide Unit Holders with higher than average returns compared to fixed deposits in medium- to long-term periods by investing in bonds and other fixed income securities with minimum risk to capital invested.


Investors’ Profile The Fund is designed for investors who prefer a lower level of risk. The Fund is suitable for investors who are less concerned on capital appreciation but seek consistent, reasonable and stable income distribution from their investments. Investors should ideally have a medium- to long-term investment horizon of between 3 and 5 years.

Investment Style & Strategy The Fund Manager aims to meet the Fund’s investment objective by forming a diversified portfolio of fixed income instruments of which the asset allocation, sector allocation, overall credit quality, portfolio duration and individual fixed income security investment will depend on the Fund Manager’s assessment of the bond market’s and economic prospects. The bulk of the Fund is invested in investment grade private debt securities which offer better returns than interest income from fixed deposits. Although the Fund is actively managed, the trading strategy will depend on market opportunities and interest rate expectations

In selecting individual fixed income securities, issuers’ and/or guarantors’ industry prospects, balance sheet and gearing ratios, cash flow quality and volatility, future cash flow and the ability to service coupon payments and principal payment are taken into consideration. Duration analysis and interest rate sensitivity, collateral type, value, claims priority and yield to maturity are also characteristics taken into account. When selecting fixed income investments, the Fund Manager seeks quality investment grade issues with a minimum “BBB” rating (or equivalent) and above for long term private debt securities, or short term rating of “P2” (or equivalent) and above by RAM Rating Services Berhad (“RAM”) or “MARC-2” by Malaysian Rating Corporation Berhad (“MARC”) and investment grade rating by a recognised credit rating agency especially for investment in foreign fixed income securities.


The Fund predominantly invests in fixed income instruments. Such investments may include MGS, listed/unlisted corporate bonds, deposits in approved financial institutions and other fixed income securities. These investments generally yield fixed interest/profit pre-determined for specified periods. The risks associated with fixed income securities include credit risk, interest rate risk, liquidity risk and single issuer risk. In addition to these risks, currency and country risk can arise for investment in foreign fixed income securities.


TheFundmayinvestupto98%ofitsNAVinfixedincomeinstruments.TheFundaimstobeat least70%investedatall times,butaspartofthe temporary defensive strategy, the Fund may temporarily lower the fixed income securities exposure below the above stated range. This would effectivelyincreasethecashholdingswhichwillbeplacedinmoneymarketinstruments.TheFundwillmaintainatleast2%ofitsNAVinliquidassets.


The performance of the Fund is measured against the 5-year MGS Bond Index returns or any other equivalent benchmark to be determined by the Manager. The benchmark is available at the Manager’s website.


The allocation mix between fixed income instruments, money market, liquid assets and cash, and the profile of bonds in the portfolio are determined based on the Fund Manager’s assessment of the economic conditions and investment prospects. The Fund Manager structures the investments of the Fund so that they are well diversified across a range of private debt securities in order to minimise single issuer risk caused by specific risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industry to reduce sector/industries specific risk.


5.4 MANULIFE INVESTMENT AL-FAID

Asset Class Equity (Islamic Fund)

Fund No. 4

Fund Category / Type Islamic Equity / Growth

Investment Objective MAF is an Islamic equity growth fund. Its primary investment objective is to provide Unit Holders with a steady medium- to long-term capital growth at a reasonable level of risk through investments in a diversified portfolio of equities in companies with a large market capitalisation which are Shariah-compliant.


Investors’ Profile The Fund is designed for those seeking investments that comply with Shariah requirements and are willing to accept a medium to high level of risk. Investors should have a medium- to long-term investment horizon of between 3 and 5 years. The Fund is suitable for investors who seek long-term capital appreciation from their investments.

Investment Style & Strategy The Fund invests in a diversified portfolio of Shariah-compliant equities and Islamic money market instruments to meet its investment objective. The Fund Manager adopts a bottom-up approach in identifying companies with growth and earnings prospects. The Fund may also invest in companies that have the potential of becoming blue chip stocks (established companies with earnings track record of at least 5 years) in future. The primary focus is on the underlying growth fundamental of the company although other factors such as macroeconomic variables, liquidity conditions and political risk factors are also considered important.

The Fund Manager emphasises strongly on internal research. Frequent company visits are made in order to obtain local knowledge and corporate information. Besides using traditional valuation yardsticks such as price earnings (P/E) ratio, price to book (P/BV) ratio and price/earnings to growth (PEG) ratio, the Fund Manager focuses on the company’s capital structure, intrinsic value, cash flow, replacement costs, revised net asset value (RNAV), management and potential growth trend. In addition, any active and frequent trading strategy will depend on investment opportunities or valuations.


The Fund predominantly invests in the Shariah-compliant equity market. Islamic money market instruments are only used to maintain liquidity position and also as a short term alternative should the equity market becomes extremely volatile. Shariah-compliant equities are stocks and shares of companies listed on an approved exchange where their prices are quoted every trading day. The risks associated with equity investments include price volatility where Shariah-compliant stock prices may go up or down and trading status where Shariah-compliant stock transactions may be suspended. As for Islamic money market instruments, these include Islamic term deposit, Islamic repo and short term cash placements with financial institutions.


TheFundmay invest up to 98%of itsNAV in the equitymarket.TheFund aims to be at least 70% invested at all times, but as part of thetemporary defensive strategy, the Fund may temporarily lower the Shariah-compliant equity exposure to below the above stated range and place thesurpluscashintoIslamicmoneymarketinstruments.TheFundwillmaintainatleast2%ofitsNAVinIslamicliquidassets.


The performance of the Fund is measured against the FBMSHA or any other equivalent benchmark to be determined by the Manager. The benchmark is available at the Manager’s website.


The Fund Manager actively monitors the investments to manage the risks of equity investment of the Fund. Although the Fund primarily invests in Malaysian Shariah-compliant equities, the level of Shariah-compliant equity investments changes as the Fund Manager purchases and/or sells Shariah-compliant equities. If the investment climate is unfavourable and the prospect of Shariah-compliant equity investments is not promising, the Fund Manager may sell Shariah-compliant shares in the Fund and reduce the Fund’s exposure in Shariah-compliant equity investments. This strategy will minimise the potential loss which may arise when Shariah-compliant share prices decline. The Fund Manager also structures the investments of the Fund so that they are well diversified across a range of Shariah-compliant securities in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors /industry to reduce sector/industries specific risk.

41Master Prospectus

5.5 MANULIFE INVESTMENT AS-SAAD

Asset Class Bond (Islamic Fund)

Fund No. 5

Fund Category / Type Islamic Bond / Income

Investment Objective MAS is an Islamic bond fund. Its primary investment objective is to provide Unit Holders with higher than average returns compared to fixed deposits in medium- to long-term periods by investing in bonds and other fixed income securities which are Shariah-compliant.


Investors’ Profile The Fund is designed for investors who prefer to invest in sukuk with a lower level of risk. The Fund is suitable for investors who are less concerned on capital appreciation but seek consistent, reasonable and stable income distribution from their investments that comply with Shariah requirements. Investors should ideally have a medium- to long-term investment horizon of between 3 and 5 years.

Investment Style & Strategy The Fund Manager aims to meet the Fund’s investment objective by forming a diversified portfolio of sukuk of which the asset allocation, sector allocation, overall credit quality, portfolio duration and individual sukuk will depend on the Fund Manager’s assessment of the sukuk market and investment prospects. The bulk of the Fund is invested in investment grade sukuk which offer better returns than profit from GIA. Although the Fund is actively managed, the trading strategy will depend on market opportunities and interest rate expectations

In selecting individual sukuk, issuers’ and/or guarantors’ industry prospects, balance sheet and gearing ratios, cash flow quality and volatility, future cash flow and the ability to service profit and principal payments are taken into consideration. Duration analysis and interest rate sensitivity, collateral type, value, claims priority and yield to maturity are also characteristics taken into account. When selecting sukuk, the Fund Manager seeks quality investment grade issues with a minimum “BBB” rating (or equivalent) and above for long-term sukuk, or short-term rating of “P2” (or equivalent) and above by RAM Rating Services Berhad (“RAM”) or “MARC-2” by Malaysian Rating Corporation Berhad (“MARC”) and/or investment grade rating by a recognised credit rating agency especially for investment in foreign sukuk.


The Fund predominantly invests in sukuk. Such investments may include sukuk issued by the Malaysian Government, listed/unlisted corporate sukuk, and Islamic deposits. The risks associated with sukuk include credit risk, interest rate risk, liquidity risk and single issuer risk. In addition to these risks, currency and country risks arise for investment in foreign sukuk.


TheFundmay invest up to 98%of itsNAV in sukuk.TheFund aims to be at least 70% invested at all times, but as part of the temporarydefensive strategy, the Fund may temporarily lower the sukuk exposure below the above stated range. This would effectively increase the cash levelwhichwillbeplacedinIslamicmoneymarketinstruments.TheFundwillmaintainatleast2%ofitsNAVinIslamicliquidassets.


The performance of the Fund is measured against the 5-year MGS Bond index returns or any other equivalent benchmark to be determined by the Manager. The benchmark is available at the Manager’s website.


The allocation mix between sukuk, Islamic money market, Islamic liquid assets and cash, and the profile of sukuk in the portfolio, are determined based on the Fund Manager’s assessment of economic conditions and investment prospects. The Fund Manager structures the investments of the Fund so that they are well diversified across a range of sukuk in order to minimise single issuer risk caused by specific risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industry to reduce sector/industries specific risk. Interest rate risk is managed through the Fund Manager’s duration strategy which is determined by the Fund Manager’s view of interest rate trends.


5.6 MANULIFE INVESTMENT SYARIAH INDEX FUND


Fund No. 6

Fund Category / Type Islamic Equity / Index Tracking

Investment Objective MSIF is an Islamic equity index-tracking fund. Its primary investment objective is to track the performance of the FBMSHA. The Fund also aims to generate annual distribution.


Investors’ Profile The Fund is designed for investors who seek capital appreciation over the long term of at least 5 years. The Fund is suitable for investors seeking Shariah-compliant investment avenues.

Investment Style & Strategy The Fund Manager employs an index sampling approach to track the performance of the FBMSHA. The Fund typically invests up to 98%of its assets in the top-tier Shariah-compliant stocks of the target index(coveringnearly80%ofFBMSHA’smarketcapitalisation)and ina representativesampleof the remainingconstituents. The Fund holds a range of Shariah-compliant equities, predominantly in FBMSHA stocks that in aggregate, approximate the full FBMSHA in terms of key characteristics, including industry weightings and market capitalisation. The Fund’s portfolio composition is rebalanced when necessary to take into account changes in weightings or corporate activities in order to minimise tracking errors.


The Fund predominantly invests in the equity market. Islamic money market instruments are only used to maintain liquidity position. Shariah-compliant equities are stocks and shares of companies listed on Bursa Malaysia where their prices are quoted every trading day. The risks associated with Shariah-compliant equity investment include price volatility where stock prices may go up or down and trading status where stock transactions may be suspended. As for Islamic money market instruments, these include Islamic term deposits, Islamic repo and short-term Islamic deposits and short-term cash placements with financial institutions.


TheFundmayinvestupto98%ofitsNAVinShariah-compliantequityinvestments.TheFundaimstobefullyinvestedatalltimesandtargetstoachieveatrackingaccuracyof95%to97%.TheFundwillmaintainatleast2%ofitsNAVinIslamicliquidassets.


The performance of the Fund is measured against the FBMSHA or any other equivalent benchmark to be determined by the Manager. The benchmark is available at the Manager’s website.


As an index-tracking fund, the Fund primarily invests in the FBMSHA-linked stocks. Therefore, price volatility is the major risk factor to consider. The Fund Manager structures the investments of the Fund so that they are well diversified across a range of Shariah-compliant securities in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industry to reduce sector/industries specific risk.

Major changes in prices of index stocks, participating cash flows, deletion and addition of index stocks may result in tracking error unless the Fund’s portfolio is rebalanced. The portfolio of the Fund will be rebalanced accordingly based on the updated statistics of the index compositions and based on daily funds inflow and outflow.

Characteristics and General Composition of the FBMSHA

The FBMSHA comprises constituents of the FBMEMAS that are Shariah-compliant according to the Securities Commission’s SAC (Shariah Advisory Council) screening methodology and FTSE’s screens of free float, liquidity and investability.

The index has been designed to provide investors with a broad benchmark for Shariah-compliant investment. The index was developed with a base value of 100 as of 31 March 2006. Each component stock is weighted by means of free-float adjusted market capitalisation so that it will influence the index in proportion to its relative market importance. Stocks are free-float weighted to ensure that only the investable opportunity set is included within the index, and are also liquidity screened to ensure that the index is tradable. Bursa Malaysia defines this methodology based on its own rules and therefore, any error or adherence thereof may affect the accuracy and completeness in the calculation of the FBMSHA. Investors may obtain more information about the FBMSHA’s calculation mode and rules from Bursa Malaysia’s website: www.bursamalaysia.com.

The FBMSHA is a useful summary measure of current expectation of future outlook. The FBMSHA gives a big-picture view of the movement in prices of the key Shariah-compliant stocks and more often than not, serves as a broad indicator of the economic performance of the country mainly because it represents the breadth and depth of Shariah-compliant companies which are involved in the various sectors of the economy.

43Master Prospectus

Top 10 Component Stocks of FBMSHA and its equivalent weighting for the Fund as at LPD

Name FBMSHA Weightings MSIF WeightingsTenaga Nasional BhdAxiata Group BhdSime Darby BhdPetronas Chemicals Group BhdDigi.Com BhdPetronas Gas BhdMaxis BhdIOI Corporation BhdSapura Kencana Petroleum BhdKuala Lumpur Kepong Bhd

9.027.836.824.674.614.484.394.113.633.08

9.378.117.094.854.804.644.564.273.783.20

There is no guarantee or assurance of exact or identical replication at any time of the performance of the index.

The index composition may change and component securities of the underlying index may be delisted.

5.7 MANULIFE INVESTMENT VALUE FUND


Fund No. 7


Investment Objective MVF targets growth through capital appreciation by investing in high quality and high growth companies in Malaysia.


Investors’ Profile The Fund is designed for investors with higher risk tolerance and low income requirements. Investors should ideally have a medium- to long-term investment horizon of between 3 and 5 years. The Fund is suitable for investors who seek capital appreciation from their investments.

Investment Style & Strategy The Fund invests in a diversified portfolio of growth stocks (stocks that can grow above industry/peers’ average) for capital appreciation. The Fund may also invest in dividend yielding stocks. The Fund Manager adopts a bottom-up approach to identify the companies with potential growth and/or pays dividends to shareholders. In identifying those companies, the Fund Manager relies on fundamental research where the financial strength, valuation, industry prospects, management and track records of the companies are considered.

The Fund Manager emphasises strongly on internal research. Frequent company visits are made in order to obtain local knowledge and corporate information. Besides using traditional valuation yardsticks such as price earnings (P/E) ratio, price to book (P/B) ratio and price/earnings to growth (PEG) ratio, the Fund Manager focuses on the company’s capital structure, intrinsic value, cash flow, replacement costs, revised net asset value (RNAV), management and potential growth and income trends. In addition, any active and frequent trading strategy will depend on investment opportunities or valuations.


The Fund predominantly invests in the equity market. Money market instruments are only used to maintain liquidity position and also as a short-term alternative should the equity market become extremely volatile. Equities are stocks and shares of companies listed on approved stock exchanges where their prices are quoted every trading day. The risks associated with equity investments include price volatility where stocks prices may go up or down and trading status where stock transactions may be suspended. As for money market instruments, these include term deposits, repo, short-term cash placements with financial institutions.


TheFundmay invest up to 98%of itsNAV in the equitymarket.TheFund aims to be at least 70% invested at all times, but as part of thetemporary defensive strategy, the Fund may temporarily lower the equity exposure to below the above stated range and place the surplus cash into moneymarketinstruments.TheFundwillmaintainatleast2%ofitsNAVinliquidassets.


The performance of the Fund is measured against the FBMEMAS or any other equivalent benchmark to be determined by the Manager. The benchmark is available at the Manager’s website.



The Fund Manager actively monitors the investments to manage the risks of equity investment of the Fund. Although the Fund primarily invests in Malaysian equities, the level of equity investments changes as the Fund Manager purchases and/or sells equities. If the investment climate is unfavourable and the prospect of equity investments is not promising, the Fund Manager may sell shares in the Fund and reduce the Fund’s exposure in equity investments. This strategy will minimise the potential loss which may arise when share prices decline. The Fund Manager also structures the investments of the Fund so that they are well diversified across a range of securities in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors /industries to reduce sector/industry specific risk.

5.8 MANULIFE INVESTMENT BALANCED FUND


Fund No. 8

Fund Category / Type Balanced / Growth & Income

Investment Objective MBLF is a balanced income fund. Its primary investment objective is to achieve medium- to long-term capital appreciation and to provide dividend income.


Investors’ Profile The Fund is designed for investors who seek regular income. The Fund is suitable for conservative investors seeking relatively higher returns than fixed deposits but dislike the higher risks associated with a full equity portfolio.

Investment Style & Strategy The Fund invests in equities and fixed income instruments based on its assessment of the respective market outlook. The Fund Manager uses a macro-economic ‘top-down’ approach to decide on strategic asset allocation. The Fund Manager constantly monitors and assesses the investment environment to identify emerging investment trends and themes. More importantly, the Fund Manager evaluates macroeconomic variables and its impact on the asset classes in the asset allocation process. The Fund Manager believes that given the increased interdependence among markets, a bird’s eye view of global financial markets is also critical to successful investment.

In equity stock selection process, the Fund Manager emphasises strongly on internal research. Frequent company visits are made in order to obtain local knowledge and corporate information. Besides using traditional valuation yardsticks such as growth rate, price earnings (P/E) ratio, price-to-book (P/BV) ratio and price/earnings to growth (PEG) ratio, the Fund Manager focuses on capital structure, intrinsic value, cash flow, replacement costs, revised net asset value (RNAV), management and potential growth & income trend.

When selecting fixed income investments, the Fund Manager adopts a prudent strategy in forming a portfolio of debt instruments, which is in accordance with the Fund’s investment objective and the Fund Manager’s assessment of investment prospects in line with the underlying interest rates and economic outlook.


The Fund invests in equities and fixed income instruments. Money market instruments are only used to maintain liquidity position and also as a short term alternative should the equity or bond markets become extremely volatile. Equities are stocks and shares of companies listed on approved exchanges where prices are quoted every trading day. The risks associated with equity investments include price volatility where stock prices may go up or down and trading status where stock transactions may be suspended. Investments in fixed income instruments include listed/unlisted debt instruments issued by the Malaysian Government, its agencies, BNM and Malaysian corporates. These investments generally yield fixed interest/profit pre-determined for specified periods. The risks associated with fixed income securities include credit risk where the institution invested in may not be able to make the required interest/profit payments or repayment of principal and interest rate risk where prices of bonds may drop if interest rate rises. As for money market instruments, these include term deposits, repo and short-term cash placements with financial institutions.


Equities :40to60%oftheFund’sNAVBond :40to60%oftheFund’sNAVLiquid Assets :Minimum2%oftheFund’sNAV


TheperformanceoftheFundismeasuredagainstMBIcomprising50%FBM100+50%12-monthFDRateoranyotherequivalentbenchmarktobe determined by the Manager. The composite benchmark is chosen as it truly reflects the asset allocation strategy of the Fund. The benchmark is available at the Manager’s website.


The allocation mix between equities, fixed income securities and money market instruments and the profile of bonds in the portfolio is determined based on the Fund Manager’s assessment of the economic conditions. The Fund Manager structures the investments of the Fund so that they are well diversified across a range of equities and bonds in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industry to reduce sector/industries specific risk.

45Master Prospectus

5.9 MANULIFE INVESTMENT EQUITY INDEX FUND


Fund No. 9

Fund Category / Type Equity / Index Tracking

Investment Objective MEIF is an equity index-tracking fund. Its primary investment objective is to track the performance of the FBM KLCI at less than the average market risk through its overall investment strategy of investing predominantly in index-linked stocks.


Investors’ Profile The Fund is designed for investors who are seeking capital appreciation over the long term of at least 5 years. The Fund is suitable for investors who want to track the FBM KLCI performance, have low income requirements and ideally should have a long-term investment horizon of at least 5 years.

Investment Style & Strategy The Fund Manager employs an index sampling approach to track the performance of the FBM KLCI. The Fundtypicallyinvestsupto98%ofitsassetsintheIndex.TheFundholdsarangeofequities,predominantlyFBM KLCI stocks that in aggregate, approximate the full FBM KLCI in terms of key characteristics including industry weightings and market capitalisation. The Fund’s portfolio composition is rebalanced when necessary to take into account changes in weightings or corporate activities in order to minimise tracking errors.


The Fund predominantly invests in the equity market. Money market instruments are only used to maintain liquidity position. Equities are stocks and shares of companies listed on Bursa Malaysia where their prices are quoted every trading day. The risks associated with equity investment include price volatility where stock prices may go up or down and trading status where stocks transactions may be suspended. As for money market instruments, these include term deposits, repo and short-term cash placements with commercial banks, merchant banks and investment banks.


TheFundmayinvestupto98%ofitsNAVintheequitymarket,withatleasttwo-thirdsoftheminFBMKLCI-linkedstocks.TheFundaimstobefullyinvestedatalltimesandtargetstoachieveatrackingaccuracyof95%to97%.TheFundwillmaintainatleast2%ofitsNAVinliquidassets.


The performance of the Fund is measured against FBM KLCI, or any other equivalent benchmark to be determined by the Manager. The benchmark is available at the Manager’s website.


As an index-tracking fund, the Fund primarily invests in FBM KLCI-linked stocks. Therefore, price volatility is the major risk factor to be considered. Within the constraint of its index-tracking objective, the Fund Manager structures the investments of the Fund so that they are diversified across a range of securities in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industries to reduce sector/industry specific risk.

Major changes in prices of index stocks, participating cash flows, deletion and addition of index stocks may result in tracking errors unless the Fund’s portfolio is rebalanced. The portfolio of the Fund will be rebalanced accordingly based on the updated statistics of the index compositions and daily funds inflow and outflow.

Characteristics and General Composition of the FBM KLCI

The FBM KLCI is a weighted measure of the largest 30 stocks on the Main Market of Bursa Malaysia. The index is a market barometer made up of primary market movers that will more aptly define market activities while remaining representative of the Malaysian stock market. The index calculation methodology emphasises free float and liquidity screens to provide a highly investable and tradable index that reflects the characteristic of the underlying market.

A smaller basket of 30 stocks makes it easier to manage an index-tracking fund such as Manulife Investment Equity Index Fund. FTSE uses the real time and closing prices sourced from Bursa Malaysia to calculate the FBM KLCI. Calculation is based on a value-weighted formula and adjusted by a free float factor. The index values are calculated and disseminated on a real time basis every 15 seconds. Bursa Malaysia defines this methodology based on its own rules and therefore, any error or adherence thereof may affect the accuracy and completeness in the calculation of the FBM KLCI. Investors may obtain more information about the FBM KLCI’s calculation mode and rules from Bursa Malaysia’s website: www.bursamalaysia.com.


The index is reviewed by the FTSE Bursa Malaysia Index Advisory Committee on a semi-annual basis in June and December. Full market capitalisation data as at the last trading day of May and November is used for the review. Any constituent changes will be implemented after close of business on the 3rd Friday in June and December.

Bursa Malaysia is committed towards extending the Malaysian capital market’s global reach by offering competitive services and infrastructure through adoption of internationally accepted standards which are globally relevant. As such, Bursa Malaysia together with FTSE, its index partner, have integrated the KLCI with internationally accepted index calculations and methodology to provide a more investable, tradable and transparently managed index.

Top 10 Component Stocks of FBM KLCI and its equivalent weighting for the Fund as at LPDName FBM KLCI Weightings MSIF WeightingsPublic Bank BhdMalayan Banking BhdTenaga Nasional BhdCIMB Group Holdings BhdAxiata Group BhdSime Darby BhdGenting BhdPetronas Chemicals Group BhdDigi.Com BhdPetronas Gas Bhd

10.598.277.396.866.415.584.403.823.783.67

10.227.987.126.616.185.394.243.693.643.54

There is no guarantee or assurance of exact or identical replication at any time of the performance of the index.

The index composition may change and component securities of the underlying index may be delisted.

5.10 MANULIFE INVESTMENT REGULAR SAVINGS FUND


Fund No. 10


Investment Objective MRSFseekstoprovidelong-termgoalofcapitalappreciationbymaintainingaminimumexposureof80%in equities and equity-related instruments at all times.


Investors’ Profile The Fund is designed for investors who are willing to accept moderate to high level of risk. It is suitable for investors seeking capital appreciation. Investors should ideally have a medium- to long-term investment horizon of between 3 and 5 years.

Investment Style & Strategy The Fund invests in a diversified portfolio of Malaysian equities and equity-related instruments as well as money market instruments to meet its investment objectives, with emphasis on growth (stocks that can grow above industry/peers’ average) and undervalued stocks relative to their assessed true value.

Given the high investible level to be maintained by the Fund, the investment selection is vigorous and special attention is given to the selection process of its equity investments. The Fund Manager adopts a bottom-up approach in identifying companies with growth and visible earnings prospects during the stock selection process. The value-based criteria identify sound companies that have fallen out of favour, especially those with low valuations relative to their industry peers and those trading at huge discounts to their book or replacement value.

In identifying these companies, the Fund Manager relies on in-depth fundamental research on the financial health, industry prospects, quality of management and past track records of the companies. The Fund Manager emphasises strongly on internal research. Frequent company visits are made in order to obtain local knowledge and corporate information. Besides using traditional valuation yardsticks such as growth rate, price earnings (P/E) ratio, price-to-book (P/BV) ratio and price/earnings to growth (PEG) ratio, the Fund Manager focuses on the company’s capital structure, intrinsic value, cash flow, replacement costs, revised net asset value (RNAV), management and potential growth trend.

The investment strategy in relation to investment in equity-related instruments is the same as those applicable to conventional equity investments. In addition, any active and frequent trading strategy will depend on investment opportunities or valuations.


The equity investments of the Fund comprise a diversified portfolio with high emphasis on growth (stocks that can grow above industry/peers’ average) and undervalued stocks relative to their assessed true values. Largely, the focus is given to equity investments in companies with strong underlying growth potential and/or those with attractive valuations relative to their intrinsic value. Money market instruments are only used to maintain liquidity position and also as a short term alternative should the equity market become extremely volatile.

47Master Prospectus

Equities are stocks and shares of companies listed on approved exchanges where their prices are quoted every trading day. The risks associated with equity investment include price volatility where stocks prices may go up or down and trading status where stock transactions may be suspended. Equity-related instruments include transferable subscription rights and warrants, convertible loans, preference shares and ‘A’ shares. As for money market instruments, these include term deposits, repo and short-term cash placements with financial institutions.


TheFundmayinvestupto98%ofitsNAVintheequitymarket.Aminimumexposureof80%inequitiesandequity-relatedinvestmentswillbemaintainedatalltimes.TheFundwillalsomaintainatleast2%ofitsNAVinliquidassets.


The performance of the Fund is measured against the FBM100 or any other equivalent benchmark to be determined by the Manager. The benchmark is available at the Manager’s website.


The Fund Manager actively monitors the investments to manage the risks of equity investments of the Fund. Although the Fund primarily invests in Malaysian equities, the level of equity investments changes as the Fund Manager purchases and/or sells equities. If the investment climate is unfavourable and the prospect of equity investments is not promising, the Fund Manager may sell shares in the Fund and reduce the Fund’s exposure in equity investmentswhilemaintaining80% in equities at all times.This strategywillminimise the potential losswhichmay arisewhen share prices decline. The Fund Manager also structures the investments of the Fund so that they are well diversified across a range of securities in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors / industry to reduce sector / industry specific risk.

5.11 MANULIFE INVESTMENT MONEY MARKET FUND

Asset Class Money Market (Conventional Fund)

Fund No. 11

Fund Category / Type Money Market / Income

Investment Objective MMMF seeks to provide Unit Holders with liquidity and current income while maintaining capital stability.


Investors’ Profile The Fund is designed for investors who are conservative in nature and are temperament towards risk-reward trade-off. These investors should have a short-term investment horizon of less than 1 to 3 years and wish to temporarily liquidate or reduce exposure in equities.

Investment Style & Strategy The Fund is essentially managed to provide liquidity to meet the short-term cash flow requirements of its Unit Holders while providing a reasonable income return. The Fund’s investments are largely confined to short-term money market instruments and short-dated fixed income securities that are highly liquid.

The Fund Manager adopts a prudent strategy in forming a portfolio of money market instruments which is in accordance with the Fund’s investment objective and the Fund Manager’s assessment of investment prospects in line with the underlying interest rates and economic outlook.


The Fund predominantly invests in short-term money market instruments and short-dated fixed income securities that are highly liquid. Typically, the instruments include deposits and securities that mature within 365 days or 1 year.

Nevertheless, the Fund is permitted to invest in instruments with maturity periods exceeding 365 days but not longer than 732 days, which is equivalenttoapproximately2years.Theselongerdatedinvestmentsaresubjecttoacapof10%oftheNAVoftheFund.

The money market instruments include deposits, bankers’ acceptances, negotiable certificates of deposits (NCDs) and short-term private debt securities, which are also known as commercial papers. Its fixed income securities investments comprise government and government-sponsored bonds and private debt securities (listed and unlisted).


TheFund invests at least 90% to amaximumof 100%of itsNAV in short-termmoneymarket instruments and fixed income securities thatmaturewithin365daysor1year.TheFundmayinvestupto10%ofitsNAVininstrumentswithmaturityperiodsexceeding365daysbutnotlonger than 732 days, which is equivalent to approximately 2 years.


The performance of the Fund is measured against the 1-month FD Rate or any other equivalent benchmark to be determined by the Manager. The benchmark is available at the Manager’s website.


The risk profile of the Fund’s investments is higher than the risk profile of the benchmark and consequently, the Fund is expected to achieve a relatively higher potential returns or losses than the benchmark.


Not lower than90%of theNAVof theFundmustbe invested inmoneymarket instrumentsandprivatedebtsecurities thatmaturewithin365daysor1year.Anallowanceofupto10%oftheNAVoftheFundisgiventotheFundtoinvestininstrumentswithmaturityperiodsexceeding365 days but not longer than 732 days.

The credit risk assumed is limited to the extent that any bond invested must have credit ratings of not lower than BBB rating by RAM Rating Services Berhad (RAM) and/or Malaysian Rating Corporation Berhad (MARC) and/or investment grade rating from a recognised rating agency and/or P2 by RAM/MARC-2 by MARC for the short term rating. In the event that a fixed income instrument is placed under a negative outlook by any rating agencies, the Fund Manager will immediately assess its continued investability and take necessary steps to mitigate any negative impact to the Fund. Should the instrument be downgraded below the minimum investment grade, the Fund Manager will divest the instrument. However, in order to protect the best interest of the Fund, the Fund Manager has the discretion to take into consideration all relevant factors that affect fair value of the investment via an internal credit assessment process before deciding on the manner and time frame of the sale.

Furthermore, the above investments are subject to limits and restrictions that are precisely spelt out in the sections titled “Permitted Investments” and “Investment Limits And Restrictions”.

The structure of the Fund is such that it is confined to instruments of short duration to maturity in order to minimise the impact of fluctuations in interest rate on the performance of the Fund over the short term while the credit risks it may face are mitigated by strict limits on concentration of investments i.e. diversification and due diligence in the credit assessments by ensuring high credit ratings as mentioned earlier.

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

5.12 MANULIFE INVESTMENT PACIFIC FUND


Fund No. 12


Investment Objective MPCF’s primary investment objective is to provide long-term capital appreciation through investment in equities and equity-related instruments listed on the stock exchanges within the Pacific region.


Investors’ Profile The Fund is designed for investors who are willing to accept moderate to high level of risk. The Fund is suitable for those investors who are seeking to diversify their investments to include Pacific ex-Japan region, and investors should ideally have a medium- to long-term investment horizon of between 3 and 5 years.

Investment Style & Strategy The Fund invests in a diversified portfolio of equities, equity-related instruments and money market instruments, with emphasis on high growth potential and/or undervalued stocks relative to their assessed true value. The Fund Manager adopts an active strategy in meeting the investment objective of the Fund. In addition, any active and frequent trading strategy will depend on investment opportunities or valuations.

The Fund Manager focuses on China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand.


The Fund invests in foreign equities and equity-related markets. Money market instruments are only used to maintain liquidity position and also as a short term alternative should the equity markets become extremely volatile. Equities are stocks and shares of companies listed on approved exchanges where their prices are quoted every trading day. The risks associated with equity investments include price volatility where stock prices may go up or down and trading status where stock transactions may be suspended. As for money market instruments, these include term deposits, commercial paper, repo and short-term cash placements with financial institutions.


TheFundmayinvestupto98%ofitsNAVinforeignequitiesandequity-relatedmarkets.TheFundaimstobeatleast70%investedinforeignequities and equity-related securities at all times, but as part of the temporary defensive strategy, the Fund may temporarily lower its foreign equity exposure to below the above stated range. Any temporary excess cash holding will be deployed into money market instruments. The Fund willmaintainatleast2%ofitsNAVinliquidassets.

TheFundmayinvestinforeignmarketsupto50%ofthetotalNAVoftheFundsmanagedbytheManageroranyotherlimitthatmaybesetbyBNM or any other authorities from time to time.

49Master Prospectus


The performance of the Fund is measured against MXFEJ which is one of the commonly used Pacific stock market benchmark index or any other equivalent benchmark to be determined by the Manager. MXFEJ is a free float adjusted market capitalisation index that covers 9 countries in the Pacific region such as China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand. The benchmark is available at the Manager’s website.


The Fund Manager actively monitors the investments to manage the risks of equity investments of the Fund. Although the Fund primarily invests in equities and equity-related instruments, the equity weighting may change as the Fund Manager purchases and/or sells equities. In the event that the investment climate is unfavourable or the stock is not promising, the Fund Manager may sell the stock and reduce the Fund’s total equity exposure. This strategy will minimise the potential loss which may arise when share prices decline. The most prevalent risk would be associated with currency risk given that the Fund is invested in many different countries. On a day-to-day operation, the Fund Manager usually does not hedge its foreign currency exposure unless it will help to mitigate adverse currency movements. The Fund Manager also diversifies its investments across a range of securities in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industries to reduce a sector/industry specific risk. Diversification across markets / countries also helps to mitigate any country risk that may arise.

5.13 MANULIFE INVESTMENT-ML FLEXI FUND


Fund No. 13

Fund Category / Type Mixed Assets / Growth

Investment Objective MNF seeks to provide Unit Holders with long-term capital appreciation.


Investors’ Profile The Fund is designed for investors who seek capital appreciation and are willing to accept medium to high level of risk. The Fund is also suitable for investors who do not seek a regular income stream and ideally have a medium- to long-term investment horizon of between 3 and 5 years.

Investment Style & Strategy MNF invests in a diversified portfolio of equities and equity-related instruments as well as fixed income andmoneymarket instruments.TheFundadoptsanaggressiveapproachwhichenables it to invest98%inequities or fixed income instruments. The Fund may have a higher individual security concentration.

Strategy on equity investment broadly consists of the following:● Adopting a bottom-up approach in identifying companies with exceptional growth and visible

earnings prospects during the stock selection process.● Value-based criteriawhich identify fundamentally soundcompanies that have fallenoutof favour.

These would include those with low valuations relative to their industry peers and those trading at huge discounts to their intrinsic/book or replacement value. Focus is also on laggards and oversold stocks which may have a strong chance to rebound.

The Fund Manager emphasises strongly on internal research where in-depth fundamental research on financial health, industry prospects and management quality are stressed. The Fund Manager also adopts an active strategy in meeting the investment objective of the Fund and focuses on the company’s capital structure, intrinsic value, cash flow, replacement costs, revised net asset value (RNAV), management and potential growth trend. In addition, any active and frequent trading strategy will depend on investment opportunities or valuations.

Strategy on fixed income and money market investment:● Predominantlyinliquidfixedincomeandmoneymarketinstruments.Theliquidityoftheinstrument

will depend on market demand and supply for a particular issuer and/or duration and/or credit rating which will be in turn dependent on prevailing market and economic conditions.

● TheliquidnatureoffixedincomeandmoneymarketinstrumentsallowstheFundManagertoeasilyswitch to equities during conducive stock market or bullish periods.

The Fund may invest in Asia-Pacific markets which include, but not limited to China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Japan.


The Fund invests in equities, equity-related and fixed income instruments. Money market instruments, besides being used to maintain liquidity position, can also be used as a short-term alternative should the equity or bond markets become extremely volatile. Equities are stocks and shares of companies listed on approved exchanges where their prices are quoted every trading day. The risks associated with equity investments include price volatility where stock prices may go up or down and trading status where stock transactions may be suspended. Investments in fixed income instruments include listed/unlisted debt instruments issued by the Malaysian Government, its agencies, BNM and Malaysian corporates. These


investments generally yield fixed interest/profit pre-determined for specified periods. The risks associated with fixed income securities include credit risk where the institution invested in may not be able to make the required interest/profit payments or repayment of principal and interest rate risk where prices of bonds may drop if interest rate rises.

As for money market instruments, these include term deposits, repo and short-term cash placements with financial institutions. For foreign fixed income investments, the ratings must be of at least BBB and above as rated by any one of the internationally recognised rating agencies such as Standard and Poor’s, Moody’s or Fitch. In a situation where the rating of the investment in fixed income securities falls below the minimum level, the Fund Manager shall dispose of the papers within a reasonable time frame, taking into consideration the market condition and prevailing factors at that point of time.


The Fund may invest in any proportion in any asset class as mentioned below:

Equities & Equity-related Investments :0to98%oftheFund’sNAVFixed Income & Money Market Instruments :2to100%oftheFund’sNAVLiquid Assets :Minimum2%oftheFund’sNAV

WhiletheFundmayinvestinAsia-Pacificmarketsupto50%ofthetotalNAVoftheFundmanagedbytheManageroranyotherlimitthatmaybe set by BNM or any other authorities from time to time, as an EPF-MIS approved Fund, the Fund is only allowed to invest in Asia-Pacific marketsupto30%ofitsNAVoranyotherlimitsasspecifiedbyEPF.


TheperformanceoftheFundismeasuredagainstMFIcomprising50%FBM100+50%12-monthFDRateoranyotherequivalentbenchmarktobe determined by the Manager. The benchmark is available at the Manager’s website.

AstheFundadoptsanactiveandfrequenttradingstrategywithequityexposurerangefrom0%to98%oftheFund’sNAV,thebenchmarkchosenfor the Fund is a composite benchmark index comprising a hypothetical investment in the FBM100 and 12-month fixed deposit rate in a ratio of50:50.Therefore, the returns for thebenchmark index foranygivenperiodof timewouldcompriseof50%from the returnof theFBM100and50%fromthe12-monthfixeddeposit rate interestearnedfor thesameperiodof time.TheFBM100index isselectedas theFund’sequitybenchmarkas it ismorerepresentativeof the localmarket that theFundinvests in.Thiscompositebenchmarkof50%inFBM100and50%in12-month fixed deposit rate represents an appropriate performance benchmark for the Fund as it is reflective of the Fund’s allocation which will typically be a mix of equities and fixed income over the medium to long-term.


The Fund Manager actively monitors the investments to manage the risks of equity investments of the Fund. Although the Fund primarily invests in Malaysian equities, the level of equity investments changes as the Fund Manager purchases and/or sells equities. If the investment climate is unfavourable and the prospect of equity investments is not promising, the Fund Manager may sell shares in the Fund and reduce the Fund’s exposure in equity investments. This strategy will minimise the potential loss which may arise when share prices decline. Any temporary excess cash will be deployed into fixed income and money market instruments. The Fund Manager also structures the investments of the Fund so that they are well diversified across a range of securities in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors /industry to reduce sector/industries specific risk.

The Fund Manager usually does not hedge foreign currency exposure unless it will help to mitigate adverse currency movements. Any excess foreign cash balances is changed immediately to the base currency i.e. the Ringgit, which will also help to alleviate foreign currency exposure of domestic clients. Also, foreign investments are spread across different countries and hence, a diversified basket of currencies would help to mitigate adverse foreign currencies movements.

51Master Prospectus

5.14 MANULIFE INVESTMENT AL-FAUZAN


Fund No. 14

Fund Category / Type Islamic Equity / Income

Investment Objective MAFZ seeks to provide Unit Holders with a steady recurring income that is potentially higher than the prevailing GIA rates. At the same time, the Fund also attempts to attain medium- to long-term capital appreciation.


Investors’ Profile The Fund is designed for investors who prefer a regular income stream, stable investment returns and potential for medium- to long-term capital appreciation of between 3 and 5 years. It is suitable for conservative investors who seek relatively higher returns than GIA rates but are averse to higher risks associated with high equity exposures, and investments which comply with Shariah requirements.

Investment Style & Strategy The Fund invests in Shariah-compliant stocks which have good dividend payouts or have the potential to become dividend yielding stocks and reasonable medium- to long- term capital appreciation opportunities. Shariah-compliant stocks with good dividend payouts are those that have been paying consistent dividends over the last three to five years, and will be able to sustain this trend at least over the next one year.


The Fund adheres to a stringent investment process which encompasses mainly bottom-up analysis to ensure that only Shariah-compliant securities with strong fundamentals are considered. The Fund selects Shariah-compliant equities with good dividend yields or has the potential to become dividend yielding stocks and potential for medium- to long-term capital appreciation.

In identifying individual Shariah-compliant equity, the Fund Manager relies on fundamental research where macro-economic outlook, industry prospects, financial strength, past track records, expected earnings growth, expected dividend yield and relevant valuation methodologies are considered.


TheFundmay invest at least 70%of itsNAV inShariah-compliant equity investments.However as part of the temporary defensive strategy,the Fund may temporarily lower the Shariah-compliant equity exposure to below the above stated range and place the surplus cash into Islamic moneymarketinstruments.TheFundwillmaintainatleast2%ofitsNAVinIslamicliquidassets.


The performance of the Fund is measured against MIDI comprising 90% FBMSHA + 10% 12-month GIA Rate or any other equivalentbenchmark to be determined by the Manager. The selection of the benchmark is consistent with the Fund’s choice of investments which consists largely equities and some fixed deposits. The benchmark is available at the Manager’s website.


The Fund Manager structures the investments of the Fund so that they are well diversified across a range of Shariah-compliant equities in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industry to reduce sector/industry specific risk.


5.15 MANULIFE INVESTMENT DIVIDEND FUND


Fund No. 15

Fund Category / Type Equity / Income

Investment Objective MDF aims to provide a steady recurring income that is potentially higher than the prevailing fixed deposit rates. At the same time, the Fund also attempts to attain medium- to long-term capital appreciation.


Investors’ Profile The Fund is designed for investors who prefer a regular income stream, stable investment returns and potential for medium- to long-term capital appreciation between 3 and 5 years. It is suitable for conservative investors who seek relatively higher returns than fixed deposits but are averse to higher risks associated with high equity exposure.

Investment Style & Strategy The Fund invests in stocks which have good dividend payouts or have the potential to become dividend yielding stocks and reasonable medium- to long-term capital appreciation opportunities. Stocks with good dividend payouts are those that have been paying consistent dividends over the last three to five years, and are expected to be able to sustain this trend at least over the next one year.


The Fund adheres to a stringent investment process which encompasses mainly bottom-up analysis to ensure that only securities with strong fundamentals are considered. The Fund selects equities with good dividend yields or has the potential to become dividend yielding stocks and potential for medium- to long-term capital appreciation.

In identifying individual equity, the Fund Manager relies on fundamental research where macroeconomic outlook, industry prospects, financial strength, past track records, expected earnings growth, expected dividend yield and relevant valuation methodologies are considered.


The Fundmay invest at least 70% of its NAV in the equitymarket. However, as part of the temporary defensive strategy, the Fundmaytemporarily lower the equity exposure to below the above stated range and place the surplus cash into money market instruments. The Fund will maintainatleast2%ofitsNAVinliquidassets.


TheperformanceoftheFundismeasuredagainstMDIcomprising90%FBM100+10%12-monthFDRateoranyotherequivalentbenchmarktobe determined by the Manager. The selection of the benchmark is consistent with the Fund’s choice of investments which consists largely equities and some fixed deposits. The benchmark is available at the Manager’s website.


The Fund Manager structures the investments of the Fund so that they are well diversified across a range of equities in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industries to reduce sector/industry specific risk.

53Master Prospectus

5.16 MANULIFE INVESTMENT AL-UMRAN


Fund No. 16

Fund Category / Type Balanced (Islamic) / Growth & Income

Investment Objective MAU is an Islamic balanced income fund. Its primary investment objective is to produce medium- to long-term capital appreciation and current income.


Investors’ Profile The Fund is designed for investors who seek a regular income from investments which comply with Shariah requirements. The Fund is suitable for conservative investors seeking relatively higher returns than GIA rates but dislike the higher risks associated with a full equity portfolio. Investors should have a medium- to long-term investment horizon of between 3 and 5 years.

Investment Style & Strategy The Fund invests in Shariah-compliant equities and sukuk instruments based on its assessment of the respective market outlook. The Fund Manager uses a macroeconomic ‘top-down’ approach to decide on strategic asset allocation. The Fund Manager constantly monitors and assesses the investment environment to identify emerging investment trends and themes. More importantly, the Fund Manager evaluates macroeconomic variables and its impact on the asset classes in the asset allocation process.

In equity stock selection process, the Fund Manager emphasises strongly on internal research. Frequent company visits are made in order to obtain local knowledge and corporate information. Besides using traditional valuation yardsticks such as growth rate, price earnings (P/E) ratio, price-to-book (P/BV) ratio and price/earnings to growth (PEG) ratio, the Fund Manager focuses on capital structure, intrinsic value, cash flow, replacement costs, revised net asset value (RNAV), management and potential growth & income trend.

In selecting individual sukuk, issuers’ and/or guarantors’ industry prospects, balance sheet and gearing ratios, cash flow quality and volatility, future cash flow and the ability to service profit payments and principal payment are taken into consideration. Duration analysis and interest rate sensitivity, collateral type, value, claims priority and yield to maturity are also characteristics taken into account. When selecting sukuk, the Fund Manager seeks quality investment grade issues with a minimum “BBB” rating (or equivalent) and above for long term sukuk, or short term rating of “P2” (or equivalent) and above by RAM Rating Services Berhad (“RAM”) or “MARC-2” by Malaysian Rating Corporation Berhad (“MARC”), and investment grade rating by a recognised credit rating agency, especially for investments in foreign sukuk.

The Fund is firmly rooted in Shariah-compliant investment avenues which entail an investment management process incorporating Islamic values to deliver good performance returns and promoting socially and ethically responsible business practices.


The Fund invests in Shariah-compliant equities and sukuk. Islamic money market instruments are only used to maintain liquidity position and also as a short-term alternative should the equity or sukuk markets become extremely volatile. Shariah-compliant equities are stocks and shares of companies listed on approved exchanges where their prices are quoted every trading day. The risks associated with equity investment include price volatility where stock prices may go up or down and trading status where stock transactions may be suspended. Investments in sukuk include listed/unlisted sukuk issued by the Malaysian Government, its agencies, BNM and Malaysian corporates which comply with Shariah requirements. The risks associated with sukuk include credit risk where the institution invested in may not be able to make the required profit payments or payment of principal, and interest rate risk where demand for sukuk may drop if interest rate rises. As for Islamic money market instruments, these include Islamic repo and short-term cash placements with financial institutions.



Shariah-compliant equities :40to60%oftheFund’sNAVSukuk :40to60%oftheFund’sNAVIslamic liquid assets :Minimum2%oftheFund’sNAV


The performance of the Fund is measured against MIBI comprising 50% FBMSHA + 50% 12-month GIA Rate or any other equivalentbenchmark to be determined by the Manager. The composite benchmark is chosen as it truly reflects the asset allocation strategy of the Fund. The benchmark is available at the Manager’s website.



The allocation mix between Shariah-compliant equities, sukuk and Islamic money market instruments is determined based on the Fund Manager’s assessment of the economic conditions. The Fund Manager structures the investments of the Fund so that they are well diversified across a range of Shariah-compliant equities and sukuk in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industries to reduce sector/industry specific risk.

5.17 MANULIFE INVESTMENT-CM FLEXI FUND


Fund No. 17


Investment Objective MCF seeks to provide Unit Holders with long-term capital appreciation.



Investment Style & Strategy MCF invests in a diversified portfolio of equities and equity-related instruments. For defensive consideration, it will invest in a mix of equities, debentures and money market instruments depending on the short-term and long-term market outlook.

TheFundmay invest up to 98% in equities and equity-related instruments.However, theFundmay turntotally defensive and invest in only fixed income and money market instruments should the Fund Manager foresee a bearish equity market. This allows the Fund the flexibility to switch to equities when the stock market is bullish and to switch to fixed income and money market instruments when the stock market is bearish. At any one time, the asset mix may also comprise all asset classes.

Strategy on equity investments broadly consist of the following:

(i) The portfolio’s asset allocation is determined by the Fund Manager’s macro view. A bottom-up approach in the stock selection will then follow in determining exposure to certain sector(s) or theme(s). This process will include:

a) Identification of “growth” companies which have competitive advantages to support strong earningsprospects;and

b) Screening for “value” which identifies fundamentally sound companies whose stock prices have yet to reflect such value. These would include those with attractive valuations relative to their industry peers and those trading at significant discounts to their intrinsic/book or replacement value. Focus will also be put on laggards and oversold stocks which have the potential to rebound.

(ii) In addition to the quantitative factors included above, qualitative factors such as management and corporate governance will also be considered.

Strategy on fixed income and money market investment:

(i) Predominantly in short-term fixed income and money market instruments. These are typically deposits and fixed income securities.

(ii) For investment in bonds, the Fund Manager takes a top-down approach for asset allocation and a bottom-up approach for bond selection; looking for bondswith value, investing in bonds afterthorough credit evaluation and identifying the Relative Market Value.

(iii) The short-term nature of fixed income and money market instruments allows the Fund Manager to easily switch to equities during conducive stock market or bullish periods.

The Fund may invest in Asia-Pacific markets, namely China, Hong Kong, Indonesia, South Korea, the Philippines, Singapore, Taiwan and Thailand.


The Fund invests in equities, equity-related and fixed income instruments. Money market instruments, besides being used to maintain liquidity position, can also be used as a short-term alternative should the equity or bond markets become extremely volatile. Equities are stocks and shares of companies listed on approved exchanges where their prices are quoted every trading day. The risks associated with equity investment include price volatility where stock prices may go up or down and trading status where stock transactions may be suspended. Investments in fixed income instruments include listed/unlisted debt instruments issued by the Malaysian Government, its agencies, BNM and Malaysian corporates. These investments generally yield fixed interest predetermined for specific periods. The risks associated with fixed income securities include credit risk where the institution invested in may not be able to make the required interest payments or repayment of principal and interest rate risk where

55Master Prospectus

prices of bonds may drop if interest rate rises. As for money market instruments, these include term deposits, repo and short-term cash placements with financial institutions. For foreign fixed income investments, the ratings must be of at least BBB and above as rated by Standard and Poor’s and Fitch or Baa and above by Moody’s, or similar credit quality as rated by any other internationally recognised rating agencies. In a situation where the rating of the investment in fixed income securities fall below the minimum level, the Fund Manager shall dispose of the papers within a reasonable time frame, taking into consideration market condition and prevailing factors at that point of time.



Equity & Equity-related Investments :0to98%oftheFund’sNAVFixed Income & Money Market Instruments :2to100%oftheFund’sNAVLiquid Assets :Minimum2%oftheFund’sNAV

WhiletheFundmayinvestinAsia-Pacificmarketsupto50%ofthetotalNAVoftheFundmanagedbytheManageroranyotherlimitthatmaybe set by BNM or any other authorities from time to time, as an EPF-MIS approved Fund, the Fund is only allowed to invest in Asia-Pacific marketsupto30%ofitsNAVoranyotherlimitsasspecifiedbyEPF.


Theperformanceof theFundismeasuredagainstMFIcomprising50%FBM100+50%12-monthFDRate.Thebenchmarkisavailableat theManager’s website.



The Fund Manager adopts an active and frequent trading strategy to manage the risks of equity investments of the Fund. Although the Fund primarily invests in Malaysian equities, the level of equity investments changes as the Fund Manager purchases and/or sells equities. If the investment climate is unfavourable and the prospect of equity investments is not promising, the Fund Manager may sell shares in the Fund and reduce the Fund’s exposure in equity investments. This strategy will minimise the potential loss which may arise when share prices decline. The Fund Manager also structures the investments of the Fund so that they are well diversified across a range of securities in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industries to reduce sector/industry specific risk.

The Fund Manager usually does not hedge foreign currency exposure in the normal course of investment. Any excess foreign cash balances are changed immediately to the base currency i.e. the Ringgit, which will also help to alleviate foreign currency exposure of domestic clients. Also, foreign investments are spread across different countries and hence, a diversified basket of currencies would help to mitigate adverse foreign currency movements.

5.18 MANULIFE INVESTMENT AL-MA’MUN

Asset Class Money Market (Islamic Fund)

Fund No. 18

Fund Category / Type Islamic Money Market / Income

Investment Objective MAM seeks to provide Unit Holders with liquidity and current income while maintaining capital stability.


Investors’ Profile The Fund is designed for investors who are conservative in nature and have a low tolerance for risk. These investors should have a short-term investment horizon and wish to temporarily liquidate or reduce exposure in equities. It is suitable for investors who seek Shariah-compliant investment avenues.

Investment Style & Strategy The Fund is essentially managed to provide liquidity to meet the short-term cash flow requirements of its Unit Holders while providing a reasonable income return. The Fund’s investments are largely confined to short-term Islamic money market instruments and short-dated sukuk that are highly liquid.

The Fund Manager adopts a prudent strategy in forming a portfolio of sukuk, which is in accordance with the Fund’s investment objective and the Fund Manager’s assessment of investment prospects in line with the underlying interest rates and economic outlook.



The Fund invests in short-term Islamic money market instruments and short-dated sukuk with above average liquidity. Typically, the Shariah-compliant instruments include GIA and sukuk that mature within 365 days or 1 year.

Nevertheless, the Fund is permitted to invest in Shariah-compliant instruments with maturity periods exceeding 365 days but no longer than 732 days,whichisequivalenttoapproximately2years.Theselongerdatedinvestmentsaresubjecttoacapof10%oftheNAVoftheFund.

The Islamic money market instrument investments include GIA, Islamic Accepted Bills, Islamic Negotiable Instruments (INIS), repurchase order and short-term sukuk which are also known as Islamic commercial papers. Its sukuk comprise government and government-sponsored sukuk (listed and unlisted).


TheFundinvestsatleast90%toamaximumof100%ofitsNAVinshort-termIslamicmoneymarketinstrumentsandsukukthatmaturewithin365daysor1year.TheFundmayinvestupto10%ofitsNAVinShariah-compliantinstrumentswithmaturityperiodsexceeding365daysbutnot longer than 732 days, which is equivalent to approximately 2 years.


The performance of the Fund is measured against 1-month GIA Rate. The benchmark is available at the Manager’s website.

The risk profile of the Fund’s investments is higher than the risk profile of the benchmark and consequently, the Fund is expected to achieve a relatively higher potential returns or losses than the benchmark.


Notlowerthan90%oftheNAVoftheFundmustbeinvestedinIslamicmoneymarketinstrumentsandsukukthatmaturewithin365daysor1year.Anallowanceofupto10%oftheNAVoftheFundisgiventotheFundtoinvestinShariah-compliantinstrumentswithmaturityperiodsexceeding 365 days but no longer than 732 days.

The credit risk assumed is limited to the extent that any sukuk invested must have credit ratings of no lower than BBB rating by RAM Rating Services Berhad (RAM) and/or Malaysian Rating Corporation Berhad (MARC) and/or investment grade rating from a recognised rating agency and/or P2 by RAM/MARC-2 by MARC for the short term rating. In the event that a sukuk is placed under a negative outlook by any rating agency, the Fund Manager will immediately assess its continued investability and take necessary steps to mitigate any negative impact to the Fund. Should the instrument be downgraded below the minimum investment grade, the Fund Manager will divest the instrument. However, in order to protect the best interest of the Fund, the Fund Manager has the discretion to take into consideration all relevant factors that affect fair value of the investment via an internal credit assessment process before deciding on the manner and time frame of the sale.

Furthermore, the above investments are subject to limits and restrictions that are precisely spelt out in the sections titled “Authorised Investments” and “Investment Limits And Restrictions”.

The structure of the Fund is such that it is confined to Shariah-compliant instruments of short duration to maturity in order to minimise the impact of fluctuations in interest rate on the performance of the Fund over the short term while the credit risks it may face are mitigated by strict limits on concentration of investments i.e. diversification and due diligence in the credit assessments by ensuring high credit ratings as mentioned earlier.

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

57Master Prospectus

5.19 MANULIFE INVESTMENT ASIA-PACIFIC REIT FUND


Fund No. 19

Fund Category / Type Fund-of-Funds / Income and Growth

Investment Objective MAPR aims to provide long-term capital appreciation and sustainable income through a combined investment in other collective investment schemes, namely REITs and infrastructure funds/trusts.


Investors’ Profile The Fund is suitable for low to medium risk level investors who wish to have investment exposure through a diversified portfolio of REITs and infrastructure funds/trusts within the Asia-Pacific region. The Fund may also appeal to investors who are seeking a sustainable distribution of income and long-term capital growth with a medium- to long-term investment horizon of between 3 and 5 years.

Investment Style & Strategy The Fund invests in REITs and infrastructure funds/trusts and related instruments attached to the invested REITs and infrastructure funds/trusts that are listed on approved Asia-Pacific stock exchanges. The Fund focuses on REITs and infrastructure funds/trusts that display a potential for capital appreciation via asset growth.

The infrastructure funds/trusts focus primarily on but are not limited to utilities, transportation/logistics and communications:-

● Utilities include facilities for the recycling, treatment, distribution and supply ofwater, aswell asfacilities for the generation, transmission, distribution and supply of electricity and gas.

● Transportation/logisticsincludetollroads,railways,storageterminals,airportsandseaports.● Communications comprise broadcast transmission infrastructures, satellite systems and terrestrial

wireline and wireless network infrastructures.

The Fund Manager focuses primarily on China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Australia.


The Fund invests in listed Asia-Pacific REITs and infrastructure funds/trusts and related instruments attached to the invested REITs and infrastructure funds/trusts that are listed on approved exchanges where their prices are quoted every trading day. Cash Instruments are only used to maintain the liquidity position and also act, as a short-term alternative should the investment climate become unfavourable. Cash Instruments include term deposits, commercial papers, repo and short-term cash placements with financial institutions.

A REIT is an investment vehicle that invests primarily in income-producing real estate, real estate-related assets and/or single purpose companies whose principal assets comprise real estates, and uses the income from the properties, net of expenses, to provide returns, stable distributions and sustainable long-term growth to investors. In purchasing a REIT, one shares the benefits and risks of owning real estate assets held by the REIT. REITs are an attractive asset class for investors seeking strong dividend yields as REITs tend to distribute their distributable income to investors in the form of dividends at regular intervals. A REIT may be listed or unlisted.

Infrastructure funds/trusts typically invest in infrastructure assets and/or companies that are expected to benefit from trends and opportunities in the infrastructure industry, in particular the growth and potential of the Asia-Pacific infrastructure markets. Infrastructure funds/trusts tend to display stable long-term returns. The infrastructure funds/trusts focuses primarily on sectors like utilities, transport/logistics and communications.

Utilities include facilities for the recycling, treatment, distribution and supply of water, as well as facilities for the generation, transmission, distribution and supply of electricity and gas. Transportation/logistics include toll roads, railways, storage terminals, airports and seaports. Communications comprise broadcast transmission infrastructures, satellite systems and terrestrial wire-line and wireless network infrastructures.


TheFundinvestsuptoamaximumof98%ofitsNAVinAsia-PacificREITsandinfrastructurefund/trusts.Aminimumof50%mustbeinvestedin Asia-Pacific REITs at all times, while the balance can be invested in infrastructure funds/trusts. In accordance with the SC’s requirements, the Fundinvestsinaminimumoffive(5)collectiveinvestmentschemesatalltimes,withamaximumexposureof30%oftheFund’sNAVinanyone (1) collective investment scheme. The Fund Manager may take a defensive view by increasing the cash exposure that may be inconsistent with the Fund’s principal strategy in attempting to respond to adverse market, economic, political or any other conditions. The Fund will maintain atleast2%ofitsNAVinliquidassets.




The performance of the Fund is measured against MRI or any other equivalent benchmark to be determined by the Manager. MRI is an internally customised index. The customised index represents an appropriate benchmark for the Fund as it is reflective of the countries which the Fund invests in. The benchmark is available at the Manager’s website.


The Fund Manager together with its central compliance personnel monitor daily market valuations closely to help manage the risks of the Fund. Although the Fund primarily invests in REITs, infrastructure funds/trusts and other related instruments, the Fund Manager may take a defensive view by increasing the cash exposure that may be inconsistent with the Fund’s principal strategy in attempting to respond to unfavourable market conditions. In addition, the Fund Manager also adopts an active and frequent trading strategy to further manage the risks of the Fund. This strategy will minimise the potential loss that may arise from such adverse conditions. The most prevalent risk would be associated with currencies given that the Fund is invested in several different countries. On a day-to-day basis, the Fund Manager does not hedge their foreign currency exposure unless it will help mitigate adverse currency movements. The Fund Manager also diversifies its investments across a range of funds to spread and minimise specific or “unsystematic” risk exposure to any one investment. Diversification across different Pacific markets also helps to mitigate any country risk that may arise.

5.20 MANULIFE INVESTMENT-HW FLEXI FUND


Fund No. 20


Investment Objective MHF seeks to provide Unit Holders with long-term capital appreciation.



Investment Style & Strategy MHFmay invest up to 98% in equities and equity-related instruments.However, theFundmay also turntotally defensive and invest in fixed income and money market instruments, only should the Fund Manager foresee a severe decline in prices of the equity market, in order to safeguard the assets and total returns for the Fund. At any one time, the asset mix may also comprise all asset classes. The Fund will maintain at least 2%ofitsNAVinliquidassets.

The Fund invests in both the equity and fixed income securities of corporations in Malaysia that practises good corporate governance, a key driver in the selection of securities. Some of the criteria chosen are transparency, accountability and integrity. They include practices of having independent directors on the board, transparent business procedures and financial information, accessible management team to investors and protecting minority shareholders’ rights. However, the practice of good corporate governance in isolation does not necessarily lead to investment outperformance. Hence, in order to enhance returns to the Fund’s investors, the Fund Manager will also conduct fundamental analysis on potential investee companies to determine the appropriateness of the investment.

Strategy on equity investment broadly consist of the following considerations:

1) account information gathered during company visits, key earnings drivers and earnings revision trends,industryfundamentals,balancesheetstructure,valuations,andcompetencyofmanagement;

2) industryandbusinessmedium-tolong-termoutlook;3) managementtrackrecord/quality;4) treatmenttowardsminorityshareholdersbymanagementandcontrollingshareholders;5) financialstrengthandgearinglevels;6) earningsandcash-flowvolatility;7) expectedfutureearningsgrowth;8) expectedfuturedividendyield;and9) share price valuation.

In terms of the individual fixed income securities, the Fund follows a strict selection process to ensure only appropriate securities are invested in with respect to the investment objective. The selection of fixed income securities will depend largely on its credit quality. Focus will be on the respective issuers whether they have strong ability to meet their financial obligations and offer highest safety for timely payment of interest and principal. For non investment grade fixed income securities, the Fund Manager will assess and consider the ability of the issuer to meet their financial obligations and make timely payment of interest and principal in order to protect investors’ interest while delivering the expected returns to the Fund and meet the Fund’s investment objective. The Fund will select fixed income securities, the selection of which will depend largely on its credit quality, to assure relative certainty of principal repayment and overall total return stability.

59Master Prospectus

Strategy on individual fixed income securities investment broadly consists of the following considerations:

1) predominantly in short-term fixed income and money market instruments. These are typically deposits and fixed income securities.

2) the short-term nature of the fixed income and money market instruments allows the Fund Manager to easily switch to equities during conducive stock market or bullish periods.

3) issuer’sand/orguarantor’sindustryandbusinessmedium-tolong-termoutlook;4) issuer’sand/orguarantor’sfinancialstrengthandgearinglevels;5) issuer’sand/orguarantor’scash-flowqualityandvolatility;6) issuer’sand/orguarantor’sexpectedfuturecash-flowandabilitytopayinterestandprincipal;7) issuer’sand/orguarantor’sratingsbyRAMorMARCorarecognisedglobalcreditratingagency;8) durationandinterestratesensitivity;9) collateraltypeandvalue,andclaimspriority;and10) price and yield-to-maturity.


The Fund invests in equities, equity-related and fixed income instruments. Money market instruments, besides being used to maintain liquidity position, can also be used as a short-term alternative should the equity or bond markets become extremely volatile. Equities are stocks and shares of companies listed on approved exchanges where their prices are quoted every trading day. The risks associated with equity investments include price volatility where stock prices may go up or down and trading status where stock transactions may be suspended. Investments in fixed income instruments include listed/unlisted debt instruments issued by the Malaysian government, its agencies, BNM and Malaysian corporates. These investments generally yield fixed interest predetermined for specific periods. The risks associated with fixed income securities include credit risk where the institution invested in may not be able to make the required interest payments or repayment of principal, and interest rate risk where prices of bonds may drop if interest rate rises. As for money market instruments, these include term deposits, repo and short-term cash placements with financial institutions.



Equity & Equity-related Investments :0to98%oftheFund’sNAVFixed Income & Money Market Instruments :2to100%oftheFund’sNAVLiquid Assets :Minimum2%oftheFund’sNAV


TheperformanceoftheFundismeasuredagainstMFIcomprising50%FBM100+50%12-monthFDRateoranyotherequivalentbenchmarktobe determined by the Manager. The benchmark is available at the Manager’s website.



The Fund Manager adopts an active and frequent trading strategy to manage the risks of equity investments of the Fund. Although the Fund primarily invests in Malaysian equities, the level of equity investments changes as the Fund Manager purchases and/or sells equities. If the investment climate is unfavourable and the prospect of equity investments is not promising, the Fund Manager may sell shares in the Fund and reduce the Fund’s exposure in equity investments. This strategy will mitigate the potential loss which may arise when share prices decline. The Fund Manager also structures the investments of the Fund so that they are well diversified across a range of securities in order to mitigate specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industries to reduce sector/industry specific risk.

In a situation where the rating of the investment in fixed income securities fall below the minimum level, the Fund Manager shall dispose of the papers to replace with investment which closely matches the Fund’s objective.


5.21 MANULIFE INVESTMENT-CM SHARIAH FLEXI FUND


Fund No. 21

Fund Category / Type Mixed Assets (Islamic) / Growth

Investment Objective MCS seeks to provide Unit Holders with long-term capital appreciation.


Investors’ Profile The Fund is designed for investors who seek capital appreciation and are willing to accept medium to high level of risk. The Fund is suitable for investors who seek investments which conform to the requirements of the Shariah, who do not seek a regular income stream and ideally have a medium- to long-term investment horizon of between 3 and 5 years.

Investment Style & Strategy MCS invests in a diversified portfolio of Shariah-compliant equities and equity-related instruments. For defensive consideration, the Fund invests in a mix of Shariah-compliant equities, Islamic debentures and Islamic money market instruments depending on the short-term and long-term market outlook.

TheFundmayinvestupto98%inShariah-compliantequitiesandequity-relatedinstruments.However,theFund may turn totally defensive and invest in only sukuk and Islamic money market instruments should the Fund Manager foresee a bearish equity market. This allows the Fund the flexibility to switch to equities when the stock market is bullish and to switch to sukuk and Islamic money market instruments when the stock market is bearish. At any one time, the asset mix may also comprise all asset classes.

TheFundwillmaintainatleast2%ofitsNAVinIslamicliquidassets.

Strategy on Shariah-compliant equity investment broadly consists of the following:

1. The portfolio’s asset allocation is determined by the Fund Manager’s macro’s view. A bottom-up approach in the stock selection will then follow in determining exposure to certain sector(s) or theme(s). This process will include:

a) Identification of “growth” companies which have competitive advantages to support strong earnings prospects and

b) Screening for “value” which identifies fundamentally sound companies whose stock prices have yet to reflect such value. These would include those with attractive valuations relative to their industry peers and those trading at significant discounts to their intrinsic/book or replacement value. Focus will also be put on laggards and oversold stocks which have the potential to rebound.

2. In addition to the quantitative factors included above, qualitative factors such as management and corporate governance will also be considered.

Strategy on sukuk & Islamic money market investment

a) Predominantly in short-term sukuk and Islamic money market instruments. These are typically Islamic deposits and sukuk.

b) For investment in sukuk, the Fund Manager takes a top-down approach for asset allocation and abottom-up approach for sukuk selection; looking for sukukwithvalue, investing insukuk after thorough credit evaluation and identifying the Relative Market Value.

c) The short-term nature of the sukuk and Islamic money market instruments allows the Fund Manager to easily switch to Shariah-compliant equities during conducive stock market or bullish periods.


The Fund invests in Shariah-compliant equities and equity-related securities as well as sukuk. Islamic money market instruments, besides being used to maintain liquidity position, can also be used as a short-term alternative should the Shariah-compliant equity or sukuk markets become extremely volatile. Shariah-compliant equities are stocks and shares of companies listed on approved exchanges where their prices are quoted every trading day. The risks associated with Shariah-compliant equity investments include price volatility where stock prices may go up or down and trading status where stock transactions may be suspended. Investments in sukuk include listed/unlisted sukuk issued by the Malaysian Government, its agencies, BNM and Malaysian corporates. These investments generally yield fixed profit predetermined for specific periods. The risks associated with sukuk include credit risk where the institution invested in may not be able to make the required profit payments or payment of principal, and interest rate risk where demand of sukuk may drop if interest rate rises. As for Islamic money-market instruments, these include Islamic term deposits, Islamic repo and short-term cash placements with financial institutions. In a situation where the rating of the investment in sukuk fall below the minimum level, the Fund Manager shall dispose of the papers within a reasonable time frame, taking into consideration the market condition and prevailing factors at that point of time.

61Master Prospectus



Shariah-compliant Equity & Equity-related Investments :0to98%oftheFund’sNAVSukuk & Islamic Money Market Instruments :2to100%oftheFund’sNAVIslamic liquid Assets :Minimum2%oftheFund’sNAV


TheperformanceoftheFundismeasuredagainstMIFIcomprising50%FBMSHA+50%12-monthGIARateoranyotherequivalentbenchmarkto be determined by the Manager. The benchmark is available at the Manager’s website.

AstheFundadoptsanactiveandfrequenttradingstrategywithShariah-compliantequityexposurerangefrom0%to98%oftheFund’sNAV,thebenchmark chosen for the Fund is a composite benchmark index comprising a hypothetical investment in the FBMSHA and 12-month GIA Rate ina ratioof50:50.Therefore, thereturns for thebenchmark indexforanygivenperiodof timewouldcompriseof50%fromthereturnof theFBMSHAand50%fromthe12-monthGIARateforthesameperiodoftime.TheFBMSHAindexisselectedastheFund’sequitybenchmarkasitismorerepresentativeofthelocalmarketthattheFundinvestsin.Thiscompositebenchmarkof50%inFBMSHAand50%in12-monthGIARate represents an appropriate performance benchmark for the Fund as it is reflective of the Fund’s allocation which will typically be a mix of Shariah-compliant equities and sukuk over the medium to long-term.


The Fund Manager adopts an active and frequent trading strategy to manage the risks of equity investments of the Fund. Although the Fund primarily invests in Malaysian Shariah-compliant equities, the level of equity investments changes as the Fund Manager purchases and/or sells Shariah-compliant equities. If the investment climate is unfavourable and the prospect of Shariah-compliant equity investments is not promising, the Fund Manager may sell Shariah-compliant shares in the Fund and reduce the Fund’s exposure in Shariah-compliant equity investments. This strategy will minimise the potential loss which may arise when share prices decline. The Fund Manager also structures the investments of the Fund so that they are well diversified across a range of Shariah-compliant securities in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industries to reduce sector/industry specific risk.

5.22 MANULIFE INVESTMENT SHARIAH ASIA-PACIFIC FUND


Fund No. 22

Fund Category / Type Equity (Islamic) / Growth

Investment Objective MSAP aims to provide long-term capital appreciation through investments in Shariah-compliant equities and equity-related instruments listed on approved stock exchanges within the Asia-Pacific region.


Investors’ Profile The Fund is suitable for investors seeking to invest in a diversified portfolio of stocks listed in the Asia-Pacific region that conforms to the requirements of the Shariah. The Fund is also suitable for investors who seek a medium- to long-term investment horizon of between 3 and 5 years, and those who are willing to accept moderate to high level of risk.

Investment Style & Strategy The Fund invests in a diversified portfolio of Shariah-compliant foreign equities and equity-related instruments, and Islamic money market instruments with emphasis on high growth potential and/or undervalued stocks relative to their assessed true value. The Fund Manager adopts an active strategy in meeting the investment objective of the Fund.

The Fund Manager focuses primarily on China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Australia and New Zealand.


The Fund invests in Shariah-compliant foreign equity and equity-related markets. Islamic money market instruments are only used to maintain liquidity position and also as a short-term alternative should the Shariah-compliant equity markets become extremely volatile. Shariah-compliant equities are stocks and shares of companies listed on approved exchanges where their prices are quoted every trading day. The risks associated with Shariah-compliant equity investments include price volatility where stock prices may go up or down and trading status where stock transactions may be suspended. As for Islamic money market instruments, these include GIA, Islamic commercial papers, Islamic repurchase order and short-term cash placements with financial institutions.



TheFundmay invest up to amaximumof 98%of itsNAV inAsia-PacificShariah-compliant equities and equity-related securities.TheFundaims tobeat least70% invested inShariah-compliantequitiesandequity-relatedsecuritiesat all times.However, theFundManagermay takea temporary defensive view that may be inconsistent with the Fund’s principal strategy in attempting to respond to adverse market, economic, political or any other conditions. In such an event, the investments in the Shariah-compliant equities and equity-related securities may be lower than70%,butshallnotbelessthan50%.ThesurpluscashwillbedeployedintoIslamicmoneymarketinstruments.TheFundwillmaintainatleast2%inIslamicliquidassets.



The performance of the Fund is measured against the SPXJIPU or any other benchmark to be determined by the Manager. The benchmark is available at the Manager’s website.


The Fund Manager, together with its central compliance staff, monitor the daily market valuations closely to help manage the risks of Shariah-compliant equities and equity-related investments of the Fund. Although the Fund primarily invests in Shariah-compliant equities and equity-related instruments, the equity weighting may change as the Fund Manager purchases and/or sells Shariah-compliant equities. In the event that the investment climate is unfavourable or the stock is not promising, the Fund Manager may sell its investment in the Shariah-compliant stock and reduce the Fund’s total Shariah-compliant equity exposure. This strategy will minimise the potential loss which may arise when Shariah-compliant share prices decline. The most prevalent risk would be associated with currency risk, given that the Fund is invested in many different countries. On a day-to-day operation, the Fund Manager usually does not hedge its foreign currency exposure unless it will help to mitigate adverse currency movements. The Fund Manager also diversifies its investments across a range of Shariah-compliant securities in order to minimise specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industries to reduce a sector/industry specific risk. Diversification across markets/countries also helps to mitigate any country risk that may arise.

5.23 MANULIFE INVESTMENT GREATER CHINA FUND


Fund No. 23

Fund Category / Type Equity / Large Cap

Investment Objective MGCF aims to provide Unit Holders with capital growth over the medium- to long-term by investing in larger capitalised companies in the Greater China region namely China, Hong Kong and Taiwan markets, as well as China-based companies listed on approved overseas markets.


Investors’ Profile The Fund is suitable for investors who seek capital appreciation over long term and are willing to accept higher level of risk. The Fund is also suitable for investors who have a medium- to long-term investment horizon of between 3 and 5 years.

Investment Style & Strategy The Fund invests mainly in large capitalised companies to achieve capital growth over the medium- to long-term. The Fund focuses on the Greater China region, namely China, Hong Kong and Taiwan markets, as wellasChina-basedcompanies(companiesthatderivemorethan50%ofassetsand/orearningsfromChina)listed on approved overseas markets.

The Fund may also invest in collective investment schemes as well as unlisted equities with attractive potential returns, particularly companies that are seeking a listing within one year.

The Fund Manager focuses on large capitalised companies with exceptional growth and visible earnings prospects and/or companies which are undervalued relative to their assessed true values and/or net asset backing. The Fund Manager also emphasises on companies with good management, strong niche and those that are leaders with a dominant market share in their respective countries.

Types and Characteristics of Securities / Instruments

The Fund predominantly invests in equities of companies with a market capitalisation of more than USD 3 billion (at the point of purchase). Equities are stocks and shares of companies listed on approved stock exchanges where their prices are quoted every trading day.

The risks associated with equity investments include price volatility where stocks prices may go up or down and trading status where stock transactions may be suspended. As for money market instruments, these include term deposits, repo, short-term cash placements with commercial banks, merchant banks and investment banks.

63Master Prospectus


TheFundmayinvestuptoamaximumof98%ofitsNAVinequitiesandequity-relatedsecurities.TheFundaimstobeatleast70%investedinequities and equity-related securities at all times. However, the Fund Manager may adopt temporary defensive strategies by lowering the equity exposure of the Fund if the investment climate is deemed to be unfavourable and place the surplus cash into money market instruments. The investmentsinequitiesandequity-relatedsecuritiesmaybelowerthan70%,butitshallnotbelessthan50%.TheFundManagermayalsoinvestuptothemaximum98%iftheoutlookforequitymarketsremainspromising.TheFundwillmaintainatleast2%inliquidassets.



The performance of the Fund is measured against MSCI Golden Dragon Index or any other benchmark to be determined by the Manager. The benchmark is chosen as it represents the Fund’s strategy and intended portfolio exposure which focuses on the Greater China region. The benchmark is available at the Manager’s website.

Risk Management Strategies And Techniques

The asset allocation, liquidity management and diversification strategies employed are vital to the efforts of managing risks faced by the Fund. The Fund Manager may reduce equity exposures when a severe downturn in the equity markets is expected and liquidity risks are high.

The Fund’s investments are monitored closely to ensure potential returns are maximised in spite of political risk, regulatory risk, foreign exchange risk and liquidity risk as a result of foreign market investments.

The Fund focuses on markets where the prospects are promising and where political and regulatory risks are anticipated to be within acceptable levels.

5.24 MANULIFE INVESTMENT U.S. EQUITY FUND


Fund No. 24

Fund Category / Type Feeder Fund (Equity) / Growth

Investment Objective The Fund seeks to achieve capital appreciation over the medium- to long-term by investing in equities and equity-related instruments predominantly in the U.S. market.


Investors’ Profile The Fund is suitable for investors who wish to participate in the U.S. equity market. It is also suitable for investors who seek capital appreciation over medium to long term. The Fund may also be appropriate for investors with a medium- to long-term investment horizon of between 3 and 5 years, and for investors who are willing to accept a high level of risk.

Investment Style & Strategy TheFund invests at least 95%of itsNAV in a collective investment scheme called thePioneer Funds –U.S.PioneerFundwhichinturninvestsprimarily(minimum51%)inadiversifiedportfolioofequitiesandequity-linked instruments of issuers incorporated, headquartered or having their principal business activities in the U.S.A. at the time of issuance of the Master Prospectus.

The Fund invests in Class I units in the USD pricing currency of the Target Fund.

The Fund Manager may adopt temporary defensive strategies to protect the Fund’s investment in adverse market, political or economic conditions by holdingmore than 5% of the Fund’s NAV in cash or cashequivalents that may be inconsistent with the Fund’s principal investment strategy and asset allocation. As the temporary defensive strategies are adopted at the Fund’s level, the Fund Manager’s view on market outlook may differ from the view of the Target Fund’s Investment Manager. As a result, there is a risk that the Fund will not achieve its investment objective by adopting such defensive strategies. However, for all intents and purposes, theFundManagerwill resume the investment strategy to invest at least 95%of theFund’s NAV in the Target Fund as soon as practical.


Note: The Target Fund is allowed to use derivative instruments to implement short positions. However, as at LPD, the Target Fund is not engaged in any short positions.



The Fund invests in a collective investment scheme called the Pioneer Funds – U.S. Pioneer Fund which in turn seeks to achieve capital appreciation over the medium to long term by investing primarily in a diversified portfolio of equities and equity-linked instruments of issuers incorporated headquartered or having their principal business activities in the U.S.A.


TheFundmayinvestuptoamaximumof98%ofitsNAVintheTargetFund.TheFundaimstobeatleast95%investedintheTargetFundatalltimes.TheFundwillmaintainatleast2%inliquidassets.However,theFundManagermayadopttemporarydefensivestrategiesbyholdingmore than5%of theFund’sNAV incashor cashequivalents thatmaybe inconsistentwith theFund’sprincipal investment strategyandassetallocation.


The performance of the Fund is measured against the S&P 500. This benchmark is available at the Manager’s website.


TheFundmayinvestamaximumof98%ofitsNAVintheTargetFund.

The Fund may also engage in financial derivatives to hedge partially or fully the currency exposure of the Fund.

The Fund Manager may adopt temporary defensive strategies by holding more of the assets of the Fund in cash or cash equivalents in higher liquidity that may be inconsistent with the Fund’s principal investment strategy and asset allocation.

Note: Please refer to Section 6 for Detailed Information on the Target Funds.

5.25 MANULIFE INVESTMENT INDONESIA EQUITY FUND


Fund No. 25

Fund Category / Type Feeder Fund (Equity) / Growth

Investment Objective The Fund seeks to achieve capital appreciation over the long term through investments in equities and equity-related instruments predominantly in Indonesia market.


Investors’ Profile The Fund is suitable for investors who wish to participate in the Indonesia equity market. It is also suitable for investors who seek capital appreciation over the long term. The Fund may also be appropriate for investors with a long-term investment horizon of at least 5 years and for investors who are willing to accept a high level of risk.

Investment Style & Strategy TheFundinvestsatleast95%ofitsNAVinacollectiveinvestmentschemecalledParvestEquityIndonesiawhich in turn invests at least two-thirds of its total assets in shares or other similar securities of companies that have their registered offices or conduct the majority of their business activities in Indonesia and in financial derivative instruments on this type of asset, at the time of issuance of the Master Prospectus.

The Target Fund may also invest a maximum of one-third of its assets in any other transferable securities, money market instruments, financial derivative instruments or cash, provided that the investments in debt securities of anykinddonot exceed15%of its assets and the investments inotherUCITSorUCIdonotexceed10%.

The Fund invests in Class I of the Target Fund which is denominated in US Dollar.

The Fund Manager may adopt temporary defensive strategies to protect the Fund’s investments in adverse market, political or economic conditions by holdingmore than 5% of the Fund’s NAV in cash or cashequivalents that may be inconsistent with the Fund’s principal investment strategy and asset allocation. As the temporary defensive strategies are adopted at the Fund’s level, the Fund Manager’s view on market outlook may differ from the view of the Target Fund’s Investment Manager. As a result, there is a risk that the Fund will not achieve its investment objective by adopting such defensive strategies. However, for all intents and purposes, theFundManagerwill resume the investment strategy to invest at least 95%of theFund’s NAV in the Target Fund as soon as practical.

65Master Prospectus


Note: The umbrella fund may acquire movables and immovable property indispensable for the direct performance of its activity. (There are no specific investment limits for this type of assets as those assets are not part of any portfolio of the Target Fund as such. This provision only deals with assets acquired by the umbrella fund pursuant to its corporate purpose to directly perform its activity. In practice, please note that this has never been enforced by the umbrella fund so far)


The Fund invests in a collective investment scheme called Parvest Equity Indonesia which in turn seeks to achieve capital appreciation over the long term by investing at least two-thirds of its assets in the share capital of companies whose headquarters, or the majority of their economic activity, is carried out in Indonesia. It may also invest for a maximum of one-third of its assets in other securities other than loan capital, including moneymarketinstruments,derivativesandcashforamaximumof15%andinotherUCITSoropen-endedfundsforlessthan10%ofitsassets.


TheFundmayinvestuptoamaximumof98%ofitsNAVintheTargetFund.TheFundaimstobeatleast95%investedintheTargetFundatalltimes.TheFundwillmaintainatleast2%inliquidassets.However,theFundManagermayadopttemporarydefensivestrategiesbyholdingmore than5%of theFund’sNAV incashor cashequivalents thatmaybe inconsistentwith theFund’sprincipal investment strategyandassetallocation.


The performance of the Fund is measured against the JCI. This benchmark is available at the Manager’s website.


TheFundmayinvestamaximumof98%ofitsNAVintheTargetFund.

The Fund may also engage in financial derivatives to hedge partially or fully the currency exposure of the Fund.

TheFundManagermayadopttemporarydefensivestrategiesbyholdingmorethan5%oftheFund’sNAVincashorcashequivalentsthatmaybe inconsistent with the Fund’s principal investment strategy and asset allocation.

Note: Please refer to Section 6 for Detailed Information on the Target Funds.

5.26 MANULIFE INVESTMENT SHARIAH PROGRESS FUND


Fund No. 26

Fund Category / Type Islamic Equity / Small-cap

Investment Objective The Fund seeks to provide Unit Holders with steady long-term capital growth at a reasonable level of risk by investing in a diversified portfolio of small- to medium-capitalised Shariah-compliant equities and equity-related instruments.


Investors’ Profile The Fund is designed for investors who are willing to accept a higher level of risk and seek capital appreciation from their investments. These investors should also have a low income stream requirement and a medium- to long-term investment horizon of between 3 and 5 years.

Investment Style & Strategy Identifying Malaysia companies with strong growth potentialThe Fund invests primarily in a diversified portfolio of small-to medium-size Malaysia equities which comply with Shariah requirements. The fundamental investment process is geared towards identifying and investing mainly in growth companies listed in Bursa Malaysia which are not part of the FTSE Bursa Malaysia KLCI Index (FBM KLCI) constituents (at the point of purchase).

This strategy focuses the Fund Manager’s investable universe to those Shariah-compliant stocks which are not part of the largest 30 companies by market capitalisation in the FTSE Bursa Malaysia Emas Index. The Fund Manager believes that such companies would have the potential to achieve strong rates of growth, as well as key investment and sectorial themes prevailing in the market at any period in time. While such companies are normally associated with higher risks, the potential returns could also be very rewarding, if the right companies are selected.


The Fund Manager believes that there are Shariah-compliant companies in Malaysia that are not well followed by the investment community, but have the potential to develop into future industry leaders. Such companies could be involved in manufacturing, services or trading businesses that have not just Malaysia, but the whole world as their marketplace. These companies could also be providing supporting roles to multinationals and larger companies domestically and globally. The Fund Manager believes that these companies if in the right businesses and managed by competent management, generally have higher earnings potential that may translate to better returns for investors. The better returns could also come from higher valuations being accorded to these companies as they start gaining attention from the broader investment community – both domestically and foreign.

The Fund Manager dedicates resources through primary research including company visits and developing earnings models in search of these companies. Fundamental analysis is conducted to determine the attractiveness of specific stock ideas and/or sectorial themes. This analysis takes into account information gathered during company visits, key earnings drivers and earnings revision trends for the company, valuation relative to the Fund Manager’s estimates of intrinsic value as well as the competency of its management.

Various tools are used to facilitate the valuation process, including price over earnings ratio, the discounted cash flow model and enterprise value over earnings before interest, depreciation and taxation.

The Fund also favours companies that practise good corporate governance as they generally command higher market valuation and potentially better returns for investors over a medium investment horizon.

Whilst the investment process is driven by key investment and sectorial themes prevailing in the market at any period of time, the guiding principle to the selection of investments is premised on compliance with the Shariah requirements.

Temporary Defensive StrategyUnder adverse market conditions (due to economic, political or any other negative conditions for investments), the Fund Manager may take temporary defensive positions that may be inconsistent with the Fund’s principal strategy in attempting to respond to such conditions. Under such situations, a large proportion of the Fund may be temporarily invested in Islamic deposits and shorter term Islamic money market instruments.


The Fund invests in Shariah-compliant equities that are listed on Bursa Malaysia which are not part of the FTSE Bursa Malaysia KLCI (FBM KLCI) constituents (at the point of purchase). Islamic money market instruments are only used to maintain liquidity position and also as a short-term alternative should the equity market become extremely volatile. Shariah-compliant equities are stocks and shares of companies listed on approved stock exchanges where their prices are quoted every trading day. The risks associated with Shariah-compliant equity investments include price volatility where Shariah-compliant stocks prices may go up or down and trading status where Shariah-compliant stocks transactions may be suspended. As for Islamic money market instruments, these include term Islamic deposits, Islamic repo and short-term cash placements with financial institutions.


TheFundmayinvestuptoamaximumof98%ofitsNAVinMalaysianequitiesandequity-relatedinstrumentswhichareShariah-compliant.Atalltimes,theFundaimstobeatleast70%investedinMalaysianequitiesandequity-relatedinstrumentswhichareShariah-compliant.However,as part of the temporary defensive strategy, the Fund may temporarily lower the Shariah-compliant equity exposure to below the above stated range.TheFundwillmaintainatleast2%ofitsNAVinIslamicliquidassets.


Theperformance of theFund ismeasured againstMSPI comprising 50%of theFTSEBursaMalaysiaSmallCap Index+ 50%of theFTSEBursa Malaysia Mid 70 Index or any equivalent benchmark to be determined by the Fund Manager. This benchmark is available at the Manager’s website.

As there are no direct indices to track the similar strategy that the Fund intends to employ, a composite benchmark of the underlying exposures of the Fund is chosen as the Fund’s benchmark. The Fund’s strategy of focusing the investable universe to those Shariah-compliant stocks which are not part of the largest 30 companies by market capitalisation in the FTSE Bursa Malaysia Emas Index is not represented by any single index available at the current moment. As such, the composite benchmark chosen would be a better representation of the Fund’s strategy and expected effective exposure over the long term.


The Fund Manager adopts an active and frequent trading strategy to manage the risks of Shariah-compliant equity investment of the Fund. Although the Fund primarily invests in Shariah-compliant Malaysian equities, the level of Shariah-compliant equity investments changes as the Fund Manager purchases and/or sells Shariah-compliant equities. If the investment climate is unfavourable and the prospect of Shariah-compliant equity investments is not promising, the Fund Manager may sell Shariah-compliant shares in the Fund and reduce the Fund’s exposure in Shariah-compliant equity investments. This strategy will mitigate the potential loss which may arise when Shariah-compliant share prices decline. The Fund Manager also structures the investments of the Fund so that they are well diversified across a range of Shariah-compliant securities in order to mitigate specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industries to reduce sector/industry specific risk.

67Master Prospectus

5.27 MANULIFE INVESTMENT-HW SHARIAH FLEXI FUND

Asset Class Mixed Assets (Islamic)

Fund No. 27

Fund Category / Type Mixed Assets (Islamic) / Growth

Investment Objective The Fund seeks to provide Unit Holders with long-term* capital appreciation.

*long-term in this context refers to a period of at least 5 years.


Investors’ Profile The Fund is designed for investors who seek capital appreciation and are willing to accept medium to high level of risk. The Fund is suitable for investors who seek investments which conform to the requirements of the Shariah, who do not seek regular income stream and ideally have a long-term investment horizon of at least 5 years.

Investment Style & Strategy The Fund invests in a diversified portfolio of Shariah-compliant equities and equity-related instruments. The Fund is also able to invest in sukuk and Islamic money market instruments depending on the interest rate outlook for the market.

TheFundmay invest up to 98% in Shariah-compliant equities and equity-related instruments.However,the Fund may also turn totally defensive and invest solely in sukuk and Islamic money market instruments, should the Fund Manager foresee a bearish equity market, for the purpose of capital preservation measure. Atanyonetime,theassetmixmayalsocompriseallassetclasses.TheFundwillmaintainatleast2%ofitsNAV in Islamic liquid assets.

Please note that this Fund is not a capital guaranteed fund or a capital protected fund. Therefore, this Fund does not offer protection of your investment.

The Fund adopts an absolute return approach which seeks to provide investors with consistent returns across market cycles while managing the impact of the volatility.

In terms of investing in Shariah-compliant equity investment, the Fund Manager intends to invest in companiesthathaverecorded10%-15%growthinprofitsfromprecedingyear,aswellasqualitycompanieswhich the Fund Manager classifies as having strong balance sheets, positive cash flows and low gearing levels compared to business peers and sector norm. The quality of the management is also crucial when searching for an investment opportunity. The Fund Manager aims to identify mispricing opportunities as they occur and take advantage of them regardless of whether the companies exhibit growth, value or defensive characteristics. The Fund Manager also aims to identify investment themes that will eventually capture market interest.

In terms of investing in sukuk, the Fund follows a strict selection process to ensure only appropriate sukuk are invested in with respect to the investment objective. The selection process is in essence a screening process that selects quality sukuk with risk-return profiles that match the Fund’s requirements. The selection of sukuk will largely depend on the credit rating of the issuer to assure relative certainty of principal payment and overall total return stability. Similarly for Islamic deposits, the Fund will place the deposits with Islamic financial institutions whose credit profile the Fund Manager is comfortable with.

The Fund invests in both the Shariah-compliant equity and sukuk of corporations in Malaysia that practises good corporate governance, a key driver in the selection of securities. Some of the criteria chosen are transparency, accountability and integrity. These include having independent directors on the board, transparent business procedures and financial information, accessibility of the management team to investors and the protection of minority shareholders’ rights.


The Fund invests in Shariah-compliant equities and equity-related securities as well as sukuk. Islamic money market instruments can be used to maintain liquidity positions, and as an alternative investment instrument should the Shariah-compliant equity or sukuk markets become extremely volatile.

Shariah-compliant equities are stocks and shares of companies listed on approved exchanges where their prices are quoted every trading day. The risks associated with Shariah-compliant equity investments include price volatility where stock prices may go up or down and trading status where stock transactions may be suspended.

Investments in sukuk include listed/unlisted sukuk issued by the Malaysian Government, its agencies, BNM and Malaysian corporates with a minimum credit rating of BBB rated by the RAM Rating Services Berhad (RAM) or BBB by Malaysian Rating Corporation Berhad (MARC). These investments yield fixed profit predetermined for specific periods. The risks associated with sukuk include credit risk where the sukuk issuer may not be able to make the required profit payments or payment of principal and rising interest rates will generally cause sukuk demand to fall.

Investments in Islamic money-market instruments include Islamic deposits, Islamic repo and cash placements with financial institutions.




Shariah-compliantequities&equity-relatedinvestments :0to98%oftheFund’sNAVSukuk&Islamicmoneymarketinstruments :0to98%oftheFund’sNAVIslamicliquidassets :Minimum2%oftheFund’sNAV


TheperformanceoftheFundismeasuredagainstMIFIcomprising50%FBMSHA+50%Maybank12-monthGIARateoranyotherequivalentbenchmark to be determined by the Manager. The benchmark is available at the Manager’s website.

The benchmark reflects the investment and asset allocation strategies of the Fund, where the Fund is allowed to invest its asset in Shariah-compliant equities as well as sukuk and Islamic money market instruments, depending on the interest rate outlook for the market. The risk profile of the performance benchmark is not the same as the risk profile of the Fund.


The Fund Manager adopts an active and frequent trading strategy to manage the risks of equity investments of the Fund. Although the Fund may investup to98%inMalaysianShariah-compliantequities, the levelofequity investmentschangesas theFundManagerpurchasesand/orsells Shariah-compliant equities. If the investment climate and the prospect of Shariah-compliant equity investments is unfavourable, the Fund Manager may sell Shariah-compliant shares in the Fund and reduce the Fund’s exposure in Shariah-compliant equity investments. This strategy will mitigate the potential loss which may arise when share prices decline. The Fund Manager also structures the investments of the Fund so that they are well diversified across a range of Shariah-compliant securities in order to reduce specific (unsystematic) risk exposure to any one company or group of companies. The investments of the Fund are also diversified across a range of sectors/industry to reduce sector/industry specific risk. For sukuk and Islamic money market instruments, the Fund Manager focuses on managing credit/default risk where credit analysis will be conducted on the issuer(s) to determine its ability to service promised profit payments and principal payments.

5.28 Permitted Investments

The Funds are authorised by its Deed to invest in the following:

CONVENTIONAL FUNDSASSET CLASS EQUITYFUND NO. 1 2 7 8 9 10 12 13 15 17 19 20 23 24 25FUND NAME MGF MPF MVF MBLF MEIF MRSF MPCF MNF MDF MCF MAPR MHF MGCF MUS MIESecurities of companies listed on Bursa Malaysia.

√ √ √ √ √ √ √ √ √ √ √ √

Securities listed or traded on foreign markets where the regulatory authority is a member of the International Organization of Securities Commissions (IOSCO).

√ √ √ √ √ √ √ √ √

Exchange Traded Fund (“ETF”) listed on Bursa Malaysia and any other stock exchanges.

√ √ √ √ √ √ √ √ √ √ √ √

Cash at hand, fixed depos i t s , s t ruc tu red deposits and bankers acceptance.

√ √ √ √ √ √ √ √ √ √ √ √ √ √ √

Foreign currency balances, deposits and money market instruments placed with local and foreign c o m m e r c i a l b a n k s , investment banks and any other approved financial institutions.

√ √ √ √ √ √ √ √ √

U n l i s t e d s e c u r i t i e s i n c l u d i n g , w i t h o u t limitation, securities that have been approved by the relevant regulatory authorities for the listing of and quotation for such securities.

√ √ √ √ √ √ √ √ √ √ √

69Master Prospectus

CONVENTIONAL FUNDSASSET CLASS EQUITYFUND NO. 1 2 7 8 9 10 12 13 15 17 19 20 23 24 25FUND NAME MGF MPF MVF MBLF MEIF MRSF MPCF MNF MDF MCF MAPR MHF MGCF MUS MIEUnlisted fixed income securities of a Malaysian issuer.

√ √ √ √

MGS, Treasury Bills, BNM Certificates and Government Investment Certificates.

√ √ √ √ √ √ √ √ √

Cagamas bonds, sukuk, bankers acceptances, Islamic acceptance bills, unlisted loan stocks, Islamic debt securities and corporate bonds that are either bank-guaranteed or carrying at least a BBB rating by RAM Rating Services Berhad (RAM) and/or Malaysian Rating Corporation (MARC) and/or investment grade rating from a recognised rating agency.

√ √ √ √ √ √ √ √ √

Futures and opt ion contracts traded in futures and option market of an exchange approved under the Act.

√ √ √ √ √ √ √ √ √ √ √ √ √

Warrants. √ √ √ √ √ √ √ √ √ √ √ √ √Debentures including private debt securities and convertible debt securities.

√ √ √ √ √ √

Units/shares in collective investment schemes.

√ √ √ √ √ √ √ √ √ √ √ √

REITs and infrastructure funds/trusts (including initial public offerings) listed on the approved exchanges within Asia-Pacific region.

√

Any other form of investments as may be permitted by the SC and/or agreed upon by the Manager and/or Trustee from time to time.

√ √ √ √ √ √ √ √ √ √ √ √ √ √ √

The Target Fund or a collective investment scheme having a similar objective.

√ √

Liquid Assets. √ √

CONVENTIONAL FUNDS


MARKETFUND NO. 3 11FUND NAME MBF MMMFCash at hand, fixed income and money market instruments. √ √Unlisted fixed income securities of a Malaysian issuer. √ √MGS, Treasury Bills, BNM Certificates and Government Investment Certificates. √ √Treasury products. √Cagamas bonds, bankers acceptances, unlisted loan stocks and corporate bonds that are either bank-guaranteed or carrying at least a BBB rating by RAM Rating Services Berhad (RAM) and/or Malaysian Rating Corporation (MARC) and/or investment grade rating from a recognised rating agency.

√ √

Futures and option contracts traded in futures and option market of an exchange approved under the Act. √ √Foreign bonds and/or foreign private debt securities. √Fixed income securities of Malaysian companies listed on approved stock exchange(s). √ √Collective investment scheme in the form of units/shares of other money market funds. √


CONVENTIONAL FUNDS


MARKETFUND NO. 3 11FUND NAME MBF MMMFInvestment in other collective investment schemes √Any other form of investments as may be permitted by the SC and/or agreed upon by the Manager and/or Trustee from time to time.

√ √

ISLAMIC FUNDS

ASSET CLASS EQUITY BONDMONEY

MARKETFUND NO. 4 6 14 16 22 21 26 27 5 18FUND NAME MAF MSIF MAFZ MAU MSAP MCS MSPF MHSF MAS MAMShariah-compliant securities of companies listed on Bursa Malaysia.

√ √ √ √ √ √ √ √

Shariah-compliant securities listed or traded on foreign markets where the regulatory authority is a member of the International Organization of Securities Commissions (IOSCO).

√

Cash at hand, GIA and Islamic money market instruments.

√ √ √ √ √ √ √ √ √ √

Shariah-compliant Exchange Traded Fund (“ETF”) listed on Bursa Malaysia and any other stock exchanges.

√

Foreign currency balances, Islamic deposits and Islamic money market instruments placed with local and foreign commercial banks, investment banks and any other approved financial institutions.

√

Unlisted Shariah-compliant securities including, without limitation, Shariah-compliant securities that have been approved by the relevant regulatory authorities for the listing of and quotation for such securities.

√ √ √ √ √ √ √ √

Unlisted sukuk of a Malaysian issuer. √ √ √ √ √Shariah-compliant warrants. √Islamic treasury products. √Cagamas mudharabah sukuk, sukuk and Islamic acceptance bills that are either bank-guaranteed or carrying at least a BBB rating by RAM Rating Services Berhad (RAM) and/or Malaysian Rating Corporation (MARC) and/or investment grade rating from a recognised rating agency.

√ √ √ √ √ √ √

Government Investment Issues, Bank Negara Monetary Notes-i and any other government Islamic paper.

√ √ √ √ √ √ √

Islamic futures and option contracts traded in futures and option market of an exchange approved under the Act.

√ √ √ √ √ √ √ √

Sukuk of Malaysian companies listed on approved stock exchange(s).

√ √ √ √ √ √

Shariah-compliant collective investment scheme in the form of units/shares of other Islamic money market funds.

√ √ √ √ √ √

Foreign sukuk. √Units/shares in Shariah-compliant collective investment scheme.

√ √ √ √ √ √ √ √

Any other forms of investments as may be agreed upon by the Manager, the Trustee, the SACSC and/or the Shariah Adviser and in accordance to Shariah requirements from time to time.

√ √ √ √ √ √ √ √ √ √

All permitted investments related to Islamic Funds set out above must comply with requirements of the Shariah and as per SACSC and/or the advice of the Shariah Adviser.

71Master Prospectus

5.29 Shariah Investment Guidelines

The following matters are adopted by IBFIM in determining the Shariah status of equity investments of the Funds.

A. Investment in Malaysia

Equity:

Reference for investment in local securities is based on the list of Shariah-compliant securities issued by the SACSC twice yearly on the last Friday of May and November which is readily available at the Securities Commission Malaysia’s website.

However, for an Initial Public Offering (“IPO”) company that has yet to be determined the Shariah status by the SACSC, IBFIM adopted the following analysis in determining its Shariah status. These criteria are adopted by IBFIM as a temporary measure until the SACSC releases the Shariah status of that particular IPO company:

● Core Business Activities Analysis

Companies whose activities are not contrary to the Shariah will be classified as Shariah-compliant securities. On the other hand, companies will be classified as Shariah non-compliant if they are involved in the following core business activities:

a) Conventionalfinancialservices;b) Gamblingandgaming;c) Manufactureorsaleofnon-halalproductsorrelatedproducts(e.g.porkandliquor);d) Manufactureorsaleoftobacco-basedproductsorrelatedproducts;e) Pornography;f) Weaponry;g) EntertainmentactivitiesthatarenotpermittedbytheShariah;andh) Other activities deemed non-permissible according to the Shariah.

● Mixed Business Activities Analysis

For companies with activities comprising both permissible and non-permissible elements, IBFIM applies two analyses before they can be classified as Shariah-compliant. The analyses are as follows:

i. Qualitative Analysis

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

ii. Quantitative Analysis

Companies which passed the above qualitative analysis will be further subjected to quantitative analysis. IBFIM deduces the following to ensure that they are lower than the Shariah tolerable benchmarks:

a) Business Activity Benchmarks

The5%benchmarkwouldbeapplicabletothefollowingbusinessactivities:● Conventionalbanking;● Conventionalinsurance;● Gambling;● Liquorandliquor-relatedactivities;● Porkandpork-relatedactivities;● Non-halalfoodandbeverages;● Shariahnon-compliantentertainment;● Interestincomefromconventionalaccountsandinstruments;● Tobaccoandtobacco-relatedactivities;and● Other activities considered non-compliant according to Shariah.

The20%benchmarkwouldbeapplicabletothefollowingactivities:● Hotelandresortoperations;● Sharetrading;● Stockbrokingbusiness;● RentalreceivedfromShariahnon-compliantactivities;and● Other activities considered non-compliant according to Shariah.

The contribution of Shariah non-compliant activities to the overall revenue/sales/turnover/income and profit before tax of the companies will be calculated and compared against the relevant business activity benchmarks.

b) Financial Ratio Benchmarks

The financial ratios applied are as follows:


● Cash over Total Assets

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

● Debt over Total Assets

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

Bothratios,whichareintendedtomeasureribaandriba-basedelementswithinacompanies’balancesheet,mustbelowerthan33%.

Should any of the above deductions fail to meet the benchmarks, IBFIM will not accord Shariah-compliant status for the companies.

Sukuk and Islamic Money Market Instruments

IBFIM will review any sukuk and/or Islamic money market instruments based on the data available at Bond Info Hub (www.bondinfo.bnm.gov.my) and Fully Automated System For Issuing/Tendering (https://fast.bnm.gov.my).

B. Investment in Foreign Markets

Equity

● Core Business Activities Analysis

Companies whose activities are not contrary to the Shariah will be classified as Shariah-compliant securities. On the other hand, companies will be classified as Shariah non-compliant if they are involved in the following core business activities:

a) Conventionalfinancialservices;b) Gamblingandgaming;c) Manufactureorsaleofnon-halalproductsorrelatedproducts(e.g.porkandliquor);d) Manufactureorsaleoftobacco-basedproductsorrelatedproducts;e) Pornography;f) Weaponry;g) EntertainmentactivitiesthatarenotpermittedbytheShariah;andh) Other activities deemed non-permissible according to the Shariah.

● Mixed Business Activities Analysis

For companies with activities comprising both permissible and non-permissible elements, IBFIM applies two analyses before they can be classified as Shariah-compliant. The analyses are as follows:

i. Qualitative Analysis

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

ii. Quantitative Analysis

Companies which passed the above qualitative analysis will be further subjected to quantitative analysis. IBFIM deduces the following to ensure that they are lower than the Shariah tolerable benchmarks:a) Contributionofinterestincometothetotalincomeislowerthan5%ofthetotalincome;b) Total debt of the company (including all interest-bearing loans/debentures and their respective payables such as short term/long term

debts,short-term/long-termdebenturesandalldebenturespayables)islowerthan30%ofthetotalassetsofthecompany;c) Totalsumofcompany’scashandreceivablesislowerthan70%ofitstotalassets;andd) IncomegeneratedfromotherprohibitedcomponentfromShariahperspectiveislowerthan5%ofthecompany’stotalincome.

Should any of the above deductions fail to meet the benchmarks, IBFIM will not accord Shariah-compliant status for the companies.

Foreign sukuk:

IBFIM will review the information memoranda or prospectuses of the sukuk, its structures, utilisation of proceeds, Shariah contracts, Shariah pronouncements, etc.

5.29.1 Cleansing/Purification Process

Cleansing Process

a) Wrong Investment

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

73Master Prospectus

b) Reclassification of Shariah Status of the Funds’ Investment

Reclassification of Shariah status refers to security which was reclassified as Shariah non-compliant by the SACSC, the Shariah Adviser or the Shariah Boards of the relevant Islamic indices. The said security will be disposed soonest practical, once the total amount of dividends received and the market value held equal the original investment costs.

Any capital gains arising from the disposal of the Shariah non-compliant security made at the time of the announcement can be kept by the Fund. However, any excess capital gains derived from the disposal after the announcement day at a market price that is higher than the closing price on the announcement day is to be channelled to baitulmal or any charitable bodies as advised by the Shariah Adviser.

Purification Process

Zakat (tithe) For the Funds

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

5.30 Investment Limits And Restrictions

The investments shall be subject to the following limits or any other limit as may be prescribed by SC from time to time.

CONVENTIONAL FUNDSASSET CLASS EQUITYFUND NO. 1 2 7 8 9 10 12 13 15 17 19 20 23 24 25FUND NAME MGF MPF MVF MBLF MEIF MRSF MPCF MNF MDF MCF MAPR MHF MGCF MUS MIEThe value of the Fund’s investments in unlisted securities must not exceed 10%oftheFund’sNAV.

√ √ √ √ √ √ √ √ √ √ √ √

The value of the Fund’s investments in ordinary shares issued by any single issuermustnotexceed10%of the Fund’s NAV.

As for MEIF, whose principal objective is to track the FBM KLCI, the single issuer limit may be exceeded provided that the investment in any component securities does not exceed its respective weightings in the FBM KLCI.

√ √ √ √ √ √ √ √ √ √ √ √

The value of the Fund’s investments in transferable securities and money market instruments issued by any single issuer must not exceed 15% of theFund’s NAV.

√ √ √ √ √ √ √ √ √ √ √ √

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

√ √ √ √ √ √ √ √ √ √ √ √ √ √ √

For inves tments in derivatives:(i) the exposure to the

under ly ing asse t s must not exceed the investment spread limits stipulated in the Guidelines;and

(ii) the value of the Fund’s OTC derivative transaction with any single counter-party must not exceed 10%of the Fund’s NAV.

√ √ √ √ √ √ √ √ √ √ √ √


CONVENTIONAL FUNDSASSET CLASS EQUITYFUND NO. 1 2 7 8 9 10 12 13 15 17 19 20 23 24 25FUND NAME MGF MPF MVF MBLF MEIF MRSF MPCF MNF MDF MCF MAPR MHF MGCF MUS MIEThe aggregate value of the Fund’s investments in transferable securities, money market instruments, depos i t s and OTC derivatives issued by or placed with (as the case may be) any single issuer/institution must not exceed 25%oftheFund’sNAV.

√ √ √ √ √ √ √ √ √ √ √ √

The value of the Fund’s investments in units/shares of any collective investment scheme must not exceed 20% of theFund’s NAV.

√ √ √ √ √ √ √ √ √ √ √

The value of the Fund’s investments in transferable securities and money market instruments issued by any group of companies mustnotexceed20%oftheFund’s NAV.

As for MEIF, whose principal objective is to track the FBM KLCI, the single group limit may be exceeded provided that the investment in any component securities does not exceed its respective weightings in the FBM KLCI.

√ √ √ √ √ √ √ √ √ √ √ √

The Fund’s investments in transferable securities (other than debentures) must not exceed 10% ofthe securities issued by any single issuer.

√ √ √ √ √ √ √ √ √ √ √ √

The Fund’s investments in debentures must not exceed 20% of the debenturesissued by any single issuer.

√ √ √ √ √ √ √ √ √ √ √ √

The Fund’s investments in money market instruments mustnotexceed10%oftheinstruments issued by any single issuer.

This limit does not apply to money market instruments that do not have a pre-determined issue size.

√ √ √ √ √ √ √ √ √ √ √ √ √ √

The Fund’s investments in collective investment schemes must not exceed 25% of the units/sharesin any one collective investment scheme.

√ √ √ √ √ √ √ √ √ √ √ √

In order to comply with BNM guidelines and foreign investment restriction, the Manager may invest in foreign markets up to a maximum of 98% of theNAV of theFund,subjectto50%ofthetotal NAV of all the Funds managed by the Manager.

√ √ √ √ √ √ √ √ √ √ √ √

75Master Prospectus

CONVENTIONAL FUNDSASSET CLASS EQUITYFUND NO. 1 2 7 8 9 10 12 13 15 17 19 20 23 24 25FUND NAME MGF MPF MVF MBLF MEIF MRSF MPCF MNF MDF MCF MAPR MHF MGCF MUS MIEThe Fund’s exposure from derivatives position should not exceed the Fund’s NAV at all times.

√ √ √ √ √ √ √ √ √ √ √ √ √ √ √

The Fund-of-Funds must not invest in:-(i) a Fund-of Funds:(ii)aFeederFund;and(iii) any sub-fund of an

umbrella scheme which is a Fund-of-Funds or a Feeder Fund.

√ √ √

For Fund-of Funds that invests in a sub-fund of an umbrella scheme, the sub-fund of the umbrella scheme should be treated as if it is a separate collective investment scheme.

√

The Fund must invest in at least five collective investment schemes at all times.

√

The value of the Fund’s investment in units/shares of any collective investment scheme must not exceed 30% of theFund’s NAV.

√

The Target Fund must be regulated, registered, authorised or approved by the relevant regulatory authority in its home jurisdiction.

√ √

The Target Fund has to be managed by another management company or a foreign operator.

√ √

Where the Target Fund is a sub-fund of an umbrella scheme, the Target Fund should be treated as if it is a separate collective investment scheme.

√ √

CONVENTIONALFUNDS


MARKETFUND NO. 3 11FUND NAME MBF MMMFThevalueof theFund’splacement indepositswithanysingle financial institutionmustnotexceed20%ofthe Fund’s NAV.

√ √

The aggregate value of the Fund’s investments in transferable securities, money market instruments, deposits and OTC derivatives issued by or placed with (as the case may be) any single issuer/institution must not exceed25%oftheFund’sNAV.

√ √

TheFund’sinvestmentsindebenturesmustnotexceed20%ofthedebenturesissuedbyanysingleissuer. √ √TheFund’sinvestmentsinmoneymarketinstrumentsmustnotexceed10%oftheinstrumentsissuedbyanysingle issuer.This limit does not apply to money market instruments that do not have a pre-determined issue size.

√

TheFund’s investments in collective investment schemesmust not exceed 25%of the units/shares in anycollective investment scheme.

√ √

Thevalueof theFund’s investments indebentures issuedbyany single issuermustnot exceed20%of theFund’sNAV.The single issuer limitmaybe increased to 30% if the debentures are rated by anydomesticor global rating agency to be of the best quality and offer highest safety for timely payment of interest and principal.

√


CONVENTIONALFUNDS


MARKETFUND NO. 3 11FUND NAME MBF MMMFThe value of the Fund’s investments in debentures issued by any one group of companies must not exceed 30%oftheFund’sNAV. √

ThevalueoftheFund’sinvestmentsinpermittedinvestmentsmustnotbelessthan90%oftheFund’sNAV. √The value of the Fund’s investments in permitted investments which have a remaining maturity period of not morethan365daysmustnotbelessthan90%oftheFund’sNAV. √

The value of the Fund’s investments in permitted investments which have a remaining maturity period of morethan365daysbutfewerthan732daysmustnotexceed10%oftheFund’sNAV. √

The value of the Fund’s investments in debentures and money market instruments issued by any group of companiesmustnotexceed30%oftheFund’sNAV. √

TheFund’sinvestmentsinmoneymarketinstrumentsmustnotexceed20%oftheinstrumentsissuedbyanysingle issuer.

√

ISLAMIC FUNDS


MARKETFUND NO. 4 6 14 16 21 22 26 27 5 18FUND NAME MAF MSIF MAFZ MAU MCS MSAP MSPF MHSF MAS MAMThe value of the Fund’s investments in unlisted Shariah-compliant securitiesmust not exceed 10%of the Fund’s NAV.

√ √ √ √ √ √ √ √

The value of the Fund’s investments in ordinary Shariah-compliant shares issued by any single issuer mustnotexceed10%oftheFund’sNAV.

As for MSIF, whose principal objective is to track FBMSHA, the single issuer limit may be exceeded provided that the investment in any component securities does not exceed its respective weightings in the FBMSHA.

√ √ √ √ √ √ √ √

The value of the Fund’s investments in transferable Shariah-compliant securities and Islamic money market instruments issued by any single issuer must notexceed15%oftheFund’sNAV.

√ √ √ √ √ √ √ √

The value of the Fund’s placement in Islamic deposits with any single financial institution must notexceed20%oftheFund’sNAV.

√ √ √ √ √ √ √ √ √ √

For investments in Shariah-compliant derivatives:(i) the exposure to the underlying assets must not

exceed the investment spread limits stipulated in theGuidelines;and

(ii) the value of the Fund’s OTC Shariah-compliant derivative transaction with any single counter-partymustnotexceed10%oftheFund’sNAV.

√ √ √ √ √ √ √ √

The aggregate value of the Fund’s investments in transferable Shariah-compliant securities, Islamic money market instruments, Islamic deposits and OTC Shariah-compliant derivatives issued by or placed with (as the case may be) any single issuer/institutionmustnotexceed25%oftheFund’sNAV.

√ √ √ √ √ √ √ √ √ √

The value of the Fund’s investments in units/shares of any Shariah-compliant collective investment schememustnotexceed20%oftheFund’sNAV.

√ √ √ √ √ √ √

The value of the Fund’s investments in transferable Shariah-compliant securities and Islamic money market instruments issued by any group of companiesmustnotexceed20%oftheFund’sNAV.

As for MSIF, whose principal objective is to track FBMSHA, the single group limit may be exceeded provided that the investment in any component securities does not exceed its respective weightings in the FBMSHA.

√ √ √ √ √ √ √ √

77Master Prospectus

ISLAMIC FUNDS


MARKETFUND NO. 4 6 14 16 21 22 26 27 5 18FUND NAME MAF MSIF MAFZ MAU MCS MSAP MSPF MHSF MAS MAMThe Fund’s investments in transferable Shariah-compliant securities (other than Islamic debentures) mustnotexceed10%ofthesecuritiesissuedbyanysingle issuer.

√ √ √ √ √ √ √ √

The Fund’s investments in Islamic debentures must not exceed 20% of the debentures issued by anysingle issuer.

√ √ √ √ √ √ √

The Fund’s investments in Islamic money market instrumentsmustnotexceed10%oftheinstrumentsissued by any single issuer.

√ √ √ √ √ √ √ √ √

The Fund’s investments in Shariah-compliant collective investment schemes must not exceed 25%oftheunits/sharesinanycollectiveinvestmentscheme.

√ √ √ √ √ √ √ √ √ √

In order to comply with BNM guidelines and foreign investment restriction, the Manager may invest in foreign markets up to a maximum of 98% of theNAVof theFund, subject to 50%of the totalNAVof all the Funds managed by the Manager.

√

The Fund’s exposure from Shariah-compliant derivatives position should not exceed the Fund’s NAV at all times.

√ √ √ √ √ √ √ √

The value of the Fund’s investments in Islamic debentures issued by any single issuer must not exceed 20% of the Fund’sNAV.The single issuerlimit may be increased to 30% if the Islamicdebentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of profit and principal.

√

The value of the Fund’s investments in Islamic debentures issued by any one group of companies mustnotexceed30%oftheFund’sNAV.

√

The value of the Fund’s investments in permitted investmentsmustnotbelessthan90%oftheFund’sNAV.

√

The value of the Fund’s investments in permitted investments which have a remaining maturity period ofnotmorethan365daysmustnotbelessthan90%of the Fund’s NAV.

√

The value of the Fund’s investments in permitted investments which have a remaining maturity period of more than 365 days but fewer than 732 days must notexceed10%oftheFund’sNAV.

√

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

√

The Fund’s investments in Islamic money market instrumentsmustnotexceed20%oftheinstrumentsissued by any single issuer.

√

Investments in sukuk in the foreign markets are subject to approvals from the SC, provided the same is within the limit set by BNM.

The investment limits and restrictions must be complied with at all times based on the most up-to-date value of the Fund’s investment. However, a five percent (5%) allowance in excess of the restriction is permitted where the restriction is breached through an appreciation or depreciation of the NAV of the Fund (whether as a result of an appreciation or depreciation of the investment or as a result of payment made for repurchase of units from the Fund). The Manager will not make any further acquisitions to which the relevant limit is breached and will within a reasonable period of not more than three (3) months from the date of the breach take all necessary steps and actions to rectify the breach.


5.31 Bases Of Valuations Of Investments/Instruments

Valuation of the Funds will be carried out by the Manager in accordance with the Guidelines of Unit Trust Funds. The valuation bases for the authorised investments of the Funds are as below:

● Quoted/Listed Investments

Quoted investments in Malaysia are valued at the last done market price quoted on the Bursa Malaysia at 5.00 p.m. or such other time as may be specified by the Bursa Malaysia.

Quoted investments in foreign markets are valued based on the last done market price of the respective exchanges.

Where no market value is publicly available or where the use of the quoted market value is inappropriate, or where no market price is available, such investments will be valued at fair value determined in good faith by the Manager, based on methods approved by the Trustee after appropriate technical consultation.

● Unquoted Investments

Unquoted investments pending listing on Bursa Malaysia are valued at fair value as determined in good faith by the Manager, on methods or bases which have been verified by the auditors of the Fund and approved by the Trustee.

● Unlisted Investments

In the event the quoted investments/listed investments held by the Fund become unlisted investments, such investments are valued at book cost or at a valuation made by a professional person, verified by the auditors and approved by the Trustee.

● Fixed Income Securities/Sukuk

Unlisted fixed income securities/sukuk issued by Malaysian corporations and rated by RAM Rating Services Berhad (RAM) or Malaysian Rating Corporation Berhad (MARC) are valued on daily basis using fair value prices quoted by a bond pricing agency (BPA) registered with SC. Where the Manager is of the view that the price quoted by BPA for a specific bond differs from the “market price” by more than 20 basis points, the Manager may use the “market price”, provided that the Manager:

i. Recordsitsbasisforusinganon-BPAprice;ii. Obtainsnecessaryinternalapprovalstousethenon-BPAprice;andiii. Keeps an audit trail of all decisions and basis for adopting the “market yield”.

● Futures and Options

All futures and options contracts are valued based on the last done market price.

● Cash/Fixed Deposits/GIA

Deposits placed with financial institutions and bank bills are valued each day by reference to their nominal values and the accrued interest/profit thereon for the relevant period.

● Exchange Traded Fund (“ETF”)

Investments in ETF are valued in the same manner as other quoted investments.

● Collective investment schemes/Shariah-compliant collective investment schemes

Collective investment schemes which are unlisted are valued based on the last published repurchase price per unit.

● Suspended Counters

In the event the quoted investments/listed investments are suspended, the investments will be valued at their last done price prior to suspension. In the event of a suspension in the quotation of the securities for a period exceeding 14 days, or such shorter period as agreed by the Trustee, then the securities should be valued at fair value, as determined in good faith by the Manager on methods or bases which have been verified by the Auditor of the Fund and approved by the Trustee and adequately disclosed in the prospectus of the Fund.

● Foreign Assets

All foreign assets are translated into Ringgit based on the bid foreign exchange rate quoted by Bloomberg at U.K. time 4.00 pm the same day in accordance with FiMM’s Investment Management Standard, or such other time as may be prescribed from time to time by the relevant laws.

79Master Prospectus

5.32 Valuation Point

Valuation Point refers to a time(s) on a Business Day which the Manager decides to conduct a valuation on the NAV of the Funds. Under the normal circumstances, only one valuation is conducted each Business Day. Valuation will be carried out by the Manager in a fair and accurate manner and as per the Guidelines.

For the Funds consist of entire assets in Malaysia, the valuation is carried out at the end of the Business Day immediately upon the closing of Bursa Malaysia.

Foreign investments of the Funds result in time zone differences and therefore, the valuation of the Funds with exposures to foreign investments is conducted after the close of Bursa Malaysia but not later than 5.00 p.m. on the following day in which the Manager is open for business (T+1). As a result of having a Valuation Point on T+1, the daily prices of the Funds are published on the day following T+1. For the latest prices of the units, Unit Holders must contact the Manager directly.

The Manager may declare certain Business Days to be non-Business Days, although Bursa Malaysia is open for business, if some of the foreign markets in which the Fund is invested therein are closed for business. This is to ensure that the Unit Holders will be given a fair valuation of the Fund at all times.

5.33 Incorrect Pricing Policy

Incorrect pricing refers to the pricing discrepancies in the calculation of NAV of the Funds.

Should there be any incorrect pricing occur, the Manager is required to take immediate remedial action to rectify the unit pricing at the Fund level.TheManager’sremedialactionmustextendtothereimbursementofmoneyiftheerrorisatorabovethethresholdof0.5%oftheNAVperunit, unless the total impact on an individual account is less than RM10.00 in absolute amount, of which no reimbursement of money is required as the reprocessing costs may be greater than the amount of the adjustment.

TheManagerisneverthelessallowedtopayanyamounttotheUnitHoldersorformerUnitHolderseventhoughitislessthan0.5%oftheNAVper unit or RM10.00.

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

5.34 Stock Borrowing And Lending

Unless allowed by the SC Guidelines, the Fund does not intend to participate in securities lending and borrowing during the lifetime of this Master Prospectus.

5.35 Term Of The Funds

The duration of the Funds is indefinite. However, the Deed and the Act provide for a number of circumstances in which the Funds may be terminated.


6. DETAILED INFORMATION ON THE TARGET FUNDS

6.1 About Pioneer Funds – U.S. Pioneer Fund (“the Target Fund”)

The following definitions are meant for the Target Fund:

“EU” means European Union.

“Group of Companies” means companies belonging to the same body of undertakings and which draw up consolidated accounts in accordance with Council Directive 83/349/EEC of 13 June 1983, as amended from time to time, on consolidated accounts and according to recognised international accounting rules.

“Instruments” shall have the meaning ascribed to financial instruments in Section C Annex I of Directive 2004/39/EC on markets in financial instruments. Equity-linked instruments and debt-related instruments may include options, warrants, futures, swaps, forwards, any other derivative contracts and structured products and contracts for differences. Commodity-linked instruments and real estate-based financial instruments may include certificates, notes, investments through financial derivative instruments on commodities/real estate indices as well as units of investment funds within the limits set forth in Article 16 of the Management Regulations. For the purpose of the investment policies of the Target Fund, the term “equity-linked instruments” and, unless specified otherwise in the investment policies of the Target Fund, the term “debt-related instruments” shall not include convertible bonds and bonds with warrants attached. Where the investment policies of the Target Fund specify investment limits, direct investments and indirect investments by way of related Instruments shall be considered on a consolidated basis.

“Member State” means a member State of the European Union.

“Money Market Instruments” means Instruments normally dealt in on the money market which are liquid, and have a value which can be accurately determined at any time.

“Other Regulated Market” means a market which is regulated, operates regularly and is recognised and opened to the public, namely a market (i)thatmeetsthefollowingcumulativecriteria:liquidity;multilateralordermatching(generalmatchingofbidandaskpricesinordertoestablishasingleprice); transparency(thecirculationofcomplete information inorder togiveclients thepossibilityof tracking trades, therebyensuringthattheirordersareexecutedoncurrentconditions);(ii)onwhichthesecuritiesaredealtinatacertainfixedfrequency,(iii)whichisrecognisedby a State or by a public authority which has been delegated by that State or by another entity which is recognised by that State or by that public authority such as a professional association and (iv) on which the securities dealt are accessible to the public.

“Other State” means any country which is not a Member State.

“Regulatory Authority” means the Luxembourg authority or its successor in charge of the supervision of the UCI in the Grand Duchy of Luxembourg.

“Regulated Market” means a regulated market as defined in paragraph 14 of Article 4 of the Parliament and Council Directive 2004/39/EC of 21 April 2004 on markets in financial instruments as amended (“Directive 2004/39/EC”). A list of regulated markets is available from the European Commission or at the following internet address:http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2008:057:0021:0027:EN:PDF

“UCI” means undertaking for collective investment.

“UCITS” means undertaking for collective investment in Transferable Securities governed by the UCITS Directive.

“UCITS Directive” means European Parliament and Council Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferrable securities, as may be amended from time to time.

“Transferable Securities”means shares andother securities equivalent to shares; bonds andotherdebts instruments and anyothernegotiablesecurities which carry the right to acquire any such transferable securities by subscription or exchange with the exclusion of techniques and Instruments.

6.1.1 Investment Objective

The objective of the Target Fund is to seek to achieve capital appreciation over the medium to long-term by investing primarily in a diversified portfolio of equities and equity-linked instruments of issuers incorporated, headquartered or having their principal business activities in the U.S.A.

6.1.2 Investment Policy And Strategy

The Target Fund uses methods developed by the Investment Manager since 1928 to invest in a diversified portfolio of carefully selected securities issued by companies which do not necessarily aim to achieve above average earnings and revenue growth but whose securities nevertheless reflect a certain premium. Using these methods, the Investment Manager identifies securities with reasonable current prices relative to expected future values and consistently maintains these holdings until these expectations are realised.

The Target Fund has maximum flexibility to invest in securities of issuers across sectors and market capitalisations.

TheTargetFundmayinvestupto20%ofitsassets,atthetimeofpurchase,inthesecuritiesofnon-U.S.A.issuers.

81Master Prospectus

6.1.3 Specific Risks Of The Target Fund(Please refer to Section 4.2 for details)

6.1.4 Permitted Investments

A) Investments of the Target Fund shall consist solely of:1) TransferableSecuritiesandMoneyMarketInstrumentslistedordealtinonaRegulatedMarket;2) TransferableSecuritiesandMoneyMarketInstrumentsdealtonanOtherRegulatedMarketinaMemberState;3) Transferable Securities and Money Market Instruments admitted to official listing on a stock exchange of an Other State or dealt

inonanOtherRegulatedMarketinanOtherState;4) Recently issued Transferable Securities and Money Market Instruments provided that:

i) the terms of issue include an undertaking that application will be made for admission to official listing on a stock exchangeinanOtherStateoronanOtherRegulatedMarketasdescribedunder(1)to(3)above;

ii) suchadmissionissecuredwithinoneyearofissue;5) Shares or units of UCITS authorised according to the UCITS Directive (including units issued by one or several other sub-funds

of Pioneer Funds and shares or units of a master fund* qualifying as a UCITS, which shall neither itself be a feeder fund, nor hold shares or units of a feeder fund) and/or other UCIs within the meaning of Article 1, paragraph (2), points a) and b) of the UCITS Directive, whether established in a Member State or in an Other State, provided that:i) such other UCIs are authorised under laws which provide that they are subject to supervision considered by the

Regulatory Authority to be equivalent to that laid down in Community law, and that cooperation between authorities is sufficientlyensured(currentlytheUnitedStatesofAmerica,Canada,Switzerland,HongKong,NorwayandJapan);

ii) the level of protection for unit holders in such other UCIs is equivalent to that provided for unit holders in a UCITS, and in particular that the rules on assets segregation, borrowing, lending, and short sales of Transferable Securities and MoneyMarketInstrumentsareequivalenttotherequirementsofUCITSDirective;

iii) the business of the other UCIs is reported in half-yearly and annual reports to enable an assessment of the assets and liabilities,incomeandoperationsoverthereportingperiod;

iv) nomore than10%of theassetsof theUCITS(other thanamaster fund*)orof theotherUCIs,whoseacquisition iscontemplated, can according to their constitutional documents, in aggregate be invested in units of other UCITS or otherUCIs;

* The master fund may be a UCITS or sub-fund of a UCITS which has, amongst its unitholders, at least one feeder fund.6) Deposits with credit institutions which are repayable on demand or have the right to be withdrawn, and maturing in no more

than 12 months, provided that the credit institution has its registered office in a Member State or, if the registered office of the credit institution is situated in an Other State, provided that it is subject to prudential rules considered by the Regulatory AuthorityasequivalenttothoselaiddowninCommunitylaw;

7) Financial derivative instruments, i.e. in particular options, futures, including equivalent cash-settled instruments, dealt in on a Regulated Market or on an Other Regulated Market referred to in (1), (2) and (3) above, and/or financial derivative instruments dealt in over-the-counter (“OTC derivatives”), provided that:i) - the underlying consists of instruments covered by this Section A., financial indices, interest rates, foreign exchange

ratesorcurrencies,inwhichtheTargetFundmayinvestaccordingtoitsinvestmentobjectives;- the counterparties to OTC derivative transactions are institutions subject to prudential supervision, and belonging to the categories approved by the Regulatory Authority, and- the OTC derivatives are subject to reliable and verifiable valuation on a daily basis and can be sold, liquidated or closed by an offsetting transaction at any time at their fair value at the Target Fund’s initiative.

ii) under no circumstances shall these operations cause the Target Fund to diverge from its investment objectives.8) Money Market Instruments other than those dealt on a Regulated Market or on an Other Regulated Market, to the extent that the

issue or the issuer of such instruments is itself regulated for the purpose of protecting investors and savings, and provided that such instruments are:i) issued or guaranteed by a central, regional or local authority or by a central bank of a Member State, the European

Central Bank, the EU or the European Investment Bank, an Other State or, in case of a Federal State, by one of the members making up the federation, or by a public international body to which one or more Member States belong, or

ii) issued by an undertaking any securities of which are dealt in on Regulated Markets or on Other Regulated Markets referred to in (1), (2) or (3) above, or

iii) issued or guaranteed by an establishment subject to prudential supervision, in accordance with criteria defined by Community law, or by an establishment which is subject to and complies with prudential rules considered by the Regulatory Authority to be at least as stringent as those laid down by Community law, or

iv) issued by other bodies belonging to the categories approved by the Regulatory Authority provided that investments in such instruments are subject to investor protection equivalent to that laid down in the first, the second or the third indent and provided that the issuer is a company whose capital and reserves amount to at least euro ten million (euro 10,000,000) and which presents and publishes its annual accounts in accordance with directive 78/660/EEC, is an entity which, within a Group of Companies which includes one or several listed companies, is dedicated to the financing of the group or is an entity which is dedicated to the financing of securitisation vehicles which benefit from a banking liquidity line.

B) The Target Fund:1) shallnotinvestmorethan10%ofitsassetsinassetsinTransferrableSecuritiesorMoneyMarketInstrumentsotherthanthose

referredtoaboveunderA(1)through(8);2) shallnotacquireeitherpreciousmetalsorcertificatesrepresentingthem;3) mayholdancillaryliquidassets;4) mayborrowupto10%ofitsassets,providedthatsuchborrowingsaremadeonlyonatemporarybasis.Collateralarrangements

with respect to the writing of options or the purchase or sale of forward or futures contracts are not deemed to constitute “borrowings”forthepurposeofthisrestriction;

5) may acquire foreign currency by means of a back-to-back loan.


6.1.5 Investment Restrictions

A) Risk Diversification Rules:For the purpose of calculating the relevant restrictions hereunder, companies which are included in the same Group of Companies are regarded as a single issuer.

Transferable Securities and Money Market Instruments1) The Target Fund may not purchase additional Transferable Securities and Money Market Instruments of any single issuer if:

i) uponsuchpurchasemorethan10%ofitsassetswouldconsistofTransferableSecuritiesorMoneyMarketInstrumentsofonesingleissuer;or

ii) the total value of all Transferable Securities and Money Market Instruments of issuers in each of which it invests more than5%ofitsassetswouldexceed40%ofthevalueofitsassets.ThislimitationdoesnotapplytodepositsandOTCderivative transactions made with financial institutions subject to prudential supervision.

2) TheTarget Fundmay invest on a cumulative basis up to 20% of its assets in Transferable Securities andMoneyMarketInstruments issued by the same Group of Companies.

The limitof10%set forthaboveunder1) i) is increased to35%inrespectofTransferrableSecuritiesandMoneyMarket Instrumentsissued or guaranteed by a Member State, by its local authorities, by any Other State or by a public international body of which one or moreMemberState(s)aremember(s).Thesesecuritiesarenottobeincludedforthepurposesofcomputingtheceilingof40%setforthunder 1) ii).

Notwithstanding the ceilings set forth above, the Target Fund is authorised to invest, in accordance with the principle of risk spreading, up to 100%of its assets inTransferrable Securities andMoneyMarket Instruments issues or guaranteed by aMemberState, by itslocal authorities, by any other Member State of the Organisation for Economic Cooperation and Development (“OECD”) such as the United States of America or by a public international body of which one or more Member State(s) are member(s), provided that (i) such securitiesarepartofatleastsixdifferentissuesand(ii)thesecuritiesfromanysuchissuedonotaccountformorethan30%ofthetotalassets of the Target Fund.

Thelimitof20%israisedto35%wherethatprovestobejustifiedbyexceptionalmarketconditionsinparticularinRegulatedMarketswherecertainTransferrableSecuritiesorMoneyMarket Instrumentsarehighlydominantprovided thatany investmentup to this35%limit is only permitted for a single issuer.

Bank Deposits3) TheTargetFundmaynotinvestmorethan20%ofitsassetsindepositsmadewiththesamebody.

Combined limits4) Notwithstanding the individual limits laid down in A) 1) and A) 3) above, the Target Fund shall not combine where this would

leadtoinvestingmorethan20%ofitsassetsinasinglebody,anyofthefollowing:i) investments in Transferable Securities or Money Market Instruments issued by that body,ii) deposits made with that body, and/oriii) exposures arising from OTC derivative transactions undertaken with that body.

5) The limits set out in A) 1), A) 3) and A) 4) above may not be combined, and thus, investments in Transferable Securities or Money Market Instruments issued by the same body, in deposits or derivative instruments made with this body carried out in accordancewiththeforegoingmaynotexceedatotalof35%oftheassetsoftheTargetFund.

B) Limitations On Control:1) With regard to all UCITS under its management, the management company of Pioneer Funds may not acquire voting shares to

theextentthatitisableoveralltoexertamaterialinfluenceonthemanagementoftheissuer;2) PioneerFundsasawholemayacquirenomorethan10%oftheoutstandingnon-votingsharesofthesameissuer;

C) The Target Fund must invest primarily in a diversified portfolio of equities and equity-linked instruments of issuers incorporated, headquartered or having their principal business activities in the U.S.A.

D) TheTargetFundmayinvestupto20%ofitstotalassets(atthetimeofpurchase)insecuritiesofnon-U.S.issuers.

6.1.6 The Operator

Pioneer Asset Management S.A. is the Management Company of the Target Fund. The Management Company is organised in the form of a public limited company (“société anonyme”) under chapter 15 of the Law of 17 December 2010, has its registered office at 8-10, rue Jean Monnet, L-2180 Luxembourg in the Grand Duchy of Luxembourg and belongs to the UnCredit Banking Group. Its share capital amounts to euro 10,000,000.00 and its shares are fully owned by Pioneer Global Asset Management S.p.A. which is itself fully owned by UniCredit S.p.A. The Management Company was incorporated on 20 December 1996 for an unlimited period of time. Its Articles of Incorporation are published in the Mémorial of 28 January 1997 and have been amended for the last time on 4 October 2013. The Management Company currently also acts as management company for a range of other Luxembourg domiciled collective investment schemes. The Management Company manages the assets of the Target Fund in compliance with the management regulations in its own name, but for the sole benefit of the unit holders of the Target Fund.

83Master Prospectus

6.1.7 The Investment Manager

The Operator has appointed Pioneer Investment Management, Inc., Boston (the “Investment Manager”) as the investment manager to the Target Fund. Unit holders in the Target Fund, including the Fund, have no legal relationship with the Investment Manager. The Investment Manager is the Boston-based asset management company of the Pioneer Global Asset Management S.p.A. group of companies and was incorporated on 15 February 1962. In addition to acting as investment manager for the Pioneer Funds, the Investment Manager and its affiliates act as an investment manager and adviser for institutional accounts and for over 25 other investment funds with a variety of investment objectives, including investment objectives similar to those of the Pioneer Funds.

6.1.8 Regulatory Authority

The regulatory authority of the Target Fund is the Commission de Surveillance du Secteur Financier (Regulatory Authority of Luxembourg)

6.1.9 Applicable Legislation

Pioneer Funds – U.S. Pioneer Fund is a sub-fund of Pioneer Funds. Pioneer Funds is a fonds commun de placement with several separate sub-funds established under Part I of the Luxembourg law of 17 December 2010 on undertakings for collective investment and qualifying as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) for the purposes of European Parliament and Council Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities, as may be amended from time to time.

6.1.10 Fund Performance

Annual Trailing Return as at 31 December 2013

1-Year(%)

3-Year*(%)

5-Year*(%)

Class I units of Target Fund 32.02 11.35 14.55

S&P 500 32.39 16.16 17.93

*Annualised Return

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

6.1.11 Fees, Charges And Expenses

Fees

Sales Charge Charged By The Target Fund

No sales charge is imposed on Class I units of the Target Fund.

Repurchase Charge

No general repurchase charges are levied on the redemption of Class I units of the Target Fund.

Charges And Expenses

TheOperator isentitled to receive from theTargetFundamanagement feeof0.70%perannumcalculatedasapercentageof theNAVof therelevant class of units within the Target Fund. Such fee is calculated and accrued on each Valuation Day and is payable monthly in arrears on the basis of the average daily NAV of Class I units of the Target Fund.

The Guidelines provides that an annual management fee may only be charged once.

The management fee is charged at the Fund only. (Please refer to Section 9.2.1 for details)

6.2 About Parvest Equity Indonesia (“the Target Fund”)

The following definitions are meant for the Target Fund:

“Company” means PARVEST.

“Directive 78/660” means European Council Directive 78/660/EEC of 25 July 1978 based on Article 54 §3 (g) of the treaty and concerning the annual accounts of certain forms of companies, as amended.

“Directive 83/349” means European Council Directive 83/349/EEC of 13 June 1983 based on Article 54 §3 (g) of the treaty and concerning consolidated accounts, as amended.

“Directive 85/611” means European Council Directive 85/611/EEC of 20 December 1985 regarding the coordination of legislative, regulatory and administrative provisions concerning UCITS, as amended by Directives 2001/107/EC and 2001/108/EC (UCITS III).


“Directive 2004/39” means European Council Directive 2004/39/EC of 21 April 2004 on markets in financial instruments.

“Directive 2009/65” means The European Directive 2009/65/EC of 13 July 2009 of the European Parliament and the Council of European Union regarding the coordination of legislative, regulatory and administrative provisions concerning certain undertakings for collective investment in transferable securities (UCITS) (UCITS IV).

“EU” means European Union.

“Law” means Luxembourg law of 17 December 2010 concerning undertakings for collective investment. This law implements Directive 2009/65/EC (UCITS IV) of 13 July 2009 into Luxembourg law.

“UCI” means undertaking for collective investment.

“UCITS” means undertaking for collective investment in transferable securities.

6.2.1 Investment Objective

To increase asset value in the medium term.

6.2.2 Investment Policy And Strategy

The Target Fund invests at least 2/3 of its assets in shares or other similar securities of companies that have their registered offices or conduct the majority of their business activities in Indonesia and in financial derivative instruments on this type of asset..

The remaining portion, namely a maximum of 1/3 of its assets, may be invested in any other transferable securities, money market instruments, financialderivativeinstrumentsorcash,providedthatinvestmentsindebtsecuritiesofanykinddonotexceed15%ofitsassets,andupto10%of its assets may be invested in other UCITS or UCI.

6.2.3 Specific Risks Of The Target Fund(Please refer to Section 4.2 for details)

6.2.4 Investment Restrictions

1) The Target Fund’s investments consist exclusively of:a) transferablesecuritiesandmoneymarketinstrumentslistedortradedonaregulatedmarketasdefinedbyDirective2004/39;b) transferable securities and money market instruments traded on another market of a EU member state that is regulated, operating

regularly,recognisedandopentothepublic;c) transferable securities and money market instruments officially listed on a stock market in a state that is not part of the EU or

tradedonanothermarketinoneofthesestatesthatisregulated,operatingregularly,recognised,andopentothepublic;d) newly issued transferable securities and money market instruments, provided that:

− the issueconditions includeanundertaking that anapplication is tobemade forofficial listingona stockmarketorotherregulatedmarket,operatingregularly,recognised,andopentothepublic;

− admissiontolistingisobtainedwithinoneyearoftheissue;e) units in UCITS authorised under Directive 2009/65 and/or other UCIs, whether or not they are located in a EU member state,

provided that:− these other undertakings for collective investment are authorised in accordancewith legislation requiring that the

organisations are subject to supervision deemed by the CSSF as equivalent to that prescribed by EU legislation and that thereisasufficientguaranteeofcooperationbetweenthesupervisoryauthorities;

− thelevelofprotectionguaranteedtoholdersofunitsintheseotherUCIsisequivalenttothatprescribedforholdersofunits in UCITS and, in particular, that the rules regarding the division of assets, borrowings, loans, and short-selling of transferablesecuritiesandmoneymarketinstrumentsareequivalenttotherequirementsofDirective2009/65;

− the activities of these otherUCIs are described in interim and annual reports enabling a valuation of the assets andliabilities,profitsandtransactionsfortheperiodinquestion;

− theproportionof assets in theUCITSor otherUCIs that are to be acquired,which, according to their constitutionaldocuments,maybewhollyinvestedinunitsofotherUCITSorotherUCIs,doesnotexceed10%;

f) deposits with a credit institution that are redeemable on request or that may be withdrawn and have a maturity of twelve months or less, provided that the credit institution has its registered office in a EU member state or, if the registered office of the credit institution is located in another country, is subject to prudential rules deemed by the CSSF as equivalent to those prescribed in EUlegislation;

g) financial derivative instruments, including equivalent instruments with cash settlement, which are traded on a regulated market of the type described in clauses a), b) and c) above, and/or derivative financial instruments traded over the counter (“OTC derivatives”), provided that:− the underlying asset consists of instruments coming under this point 1, financial indexes, interest rates, exchange

or currency rates, in which the Target Fund may make investments in accordance with its investment objectives, as described in the Company’s Articles of Association.

− thecounterpartiestoOTCderivativestransactionsareestablishmentssubjecttoprudentialsupervisionandbelongingtocategories authorised by the CSSF, and

− theOTCderivativesarereliablyandverifiablyvaluedonadailybasisandcan,whenevertheCompanysochooses,besold,liquidatedorclosedbyasymmetricaltransaction,atanytimeandattheirfairvalue;

85Master Prospectus

h) money market instruments other than those traded on a regulated market and specified in Article 1 of the Law, as long as the issue or issuer of these instruments are themselves subject to regulations designed to protect investors and savings and that these instruments are:− issuedor guaranteed by a central, regional or local authority, by a central bankof amember state, by theEuropean

Central Bank, by the EU or the European Investment Bank, by a third-party state, or in the case of a federal state, by one of the members comprising the federation, or by an international public organisation to which one or more member states belong, or

− issuedbyacompanywhosesecuritiesaretradedontheregulatedmarketsspecifiedinclausesa),b)orc)above,or− issuedorguaranteedbyanestablishmentsubjecttoprudentialsupervisionaccordingtothecriteriadefinedbyEUlaw,

or by an establishment that is subject to and conforms to prudential regulations deemed by the CSSF as being at least as strict as those prescribed by EU legislation, or

− issuedbyotherentitiesbelongingtocategoriesapprovedbytheCSSFaslongastheinvestmentsintheseinstrumentsare subject to investor-protection rules that are equivalent to those prescribed in the first, second or third sub-clauses immediately preceding, and that the issuer is a company with capital and reserves totalling at least ten million euros (10,000,000 euros), which presents and publishes its annual accounts in accordance with Directive 78/660, or is an entity within a group of companies including one or more listed companies whose purpose is the financing of the group, or is an entity whose purpose is the financing of securitisation vehicles benefiting from a bank financing line.

2) Nevertheless:a) theTargetFundmayinvestamaximumof10%ofitsassetsintransferablesecuritiesandmoneymarketinstrumentsotherthan

thoselistedinpoint1;b) the Target Fund may not acquire gold, precious metals, commodities or certificates representing any of these.

The Target Fund may hold cash, on an ancillary basis.

3) The Company may acquire movables and immovable property indispensable for the direct performance of its activity.

4) a) TheTargetFundmaynotinvestmorethan10%ofitsassetsintransferablesecuritiesormoneymarketinstrumentsissuedbyasingle entity.TheTargetFundmaynotinvestmorethan20%ofitsassetsindepositsinvestedinasingleentity.ThecounterpartyriskfortheTargetFundinanOTCderivativestransactionmaynotexceed10%ofitsassetsifthecounterpartyisoneofthecreditinstitutionsspecifiedinclause1f),or5%ofitsassetsinothercases.

b) The total value of the transferable securities and money market instruments held by the Target Fund with issuers in each of whichitinvestsmorethan5%ofitsassetsmaynotexceed40%ofthevalueofitsassets.Thislimitdoesnotapplytodepositswith financial institutions under prudential supervision and OTC derivatives transactions with these institutions.Notwithstanding the individual limits defined in clause a), the Target Fund may not combine:− investmentsintransferablesecuritiesormoneymarketinstrumentsissuedbyasingleentity,− depositswithasingleentity,and/or− risksarisingfromOTCderivativestransactionswiththatentity,

c) Thelimitstipulatedinthefirstparagraphofclausea)maybeincreasedtoamaximumof35%if thetransferablesecuritiesormoney market instruments are issued or guaranteed by a EU member state, by its regional public authorities, by a third-party state or by international public organisations to which one or more member states belong.

d) The limit stipulated in the first paragraphof clause a)maybe increased to amaximumof25% for certainbonds, if they areissued by a credit institution which has its registered office in a EU member state and which is legally subject to special supervision by the public authorities that is designed to protect bondholders. In particular, funds arising from the issue of these bonds must be invested, in accordance with legislation, in assets which, throughout the lifetime of the bonds, are able to cover the debts resulting from the bonds and which, in the event of the issuer’s bankruptcy, would be used in priority for redemption of the principal and payment of the accrued interest.IftheTargetFundinvestsmorethan5%ofitsassetsinthebondsdescribedinthefirstparagraphandissuedbyasingleissuer,thetotalvalueoftheseinvestmentsmaynotexceed80%ofthevalueoftheTargetFund’sassets.

e) The transferable securities and money market instruments mentioned in clauses c) and d) are not included in the application of the40%limitmentionedinclauseb).The limits stipulated in clauses a), b), c) and d) cannot be combined; consequently, investments in transferable securities ormoney market instruments issued by a single entity, or in deposits or derivative instruments made with this entity in accordance withclausesa),b),c)andd),maynotintotalexceed35%oftheTargetFund’sassets.Companies that are grouped together into a consolidated accounting entity as defined by Directive 83/349 or in accordance with recognised international accounting rules are considered as a single entity for the calculation of the limits stipulated in this point 4.TheTarget Fundmay invest a cumulative total of up to 20%of its assets in the transferable securities andmoneymarketinstruments of a single group.

5) Withoutprejudicetothelimitsspecifiedinpoint8,thelimitsspecifiedinpoint4areincreasedtoamaximumof20%forinvestmentsinshares and/or bonds issued by a single entity, if the Target Fund’s investment policy is designed to replicate the composition of a specific equity or debt securities index that is recognised by the CSSF, provided that:− thecompositionoftheindexissufficientlydiversified;− theindexconstitutesarepresentativebenchmarkforthemarkettowhichitrefers;− appropriatepublicationhasbeenmade.The limit stipulated in the preceding sentence is 35% if this is justified by exceptionalmarket conditions, especially on regulatedmarkets where certain transferable securities or certain money market instruments are largely dominant. Investment to this limit is only permissible for a single issuer.


6) As an exception topoint 4, under theprincipleof thediversificationof risks, theTargetFundmay invest up to100%of its assets indifferent issues of transferable securities and money market instruments issued or guaranteed by a EU member state, by its regional public authorities, by another state part of the OECD, by Brazil, Indonesia, Russia, Singapore and South Africa or by international public organisations to which one or more member states of the EU belong.

Thesesecuritiesmustcomefromatleastsixdifferentissues,whilesecuritiesfromasingleissuemaynotaccountformorethan30%ofthe total.

7)a) The Target Fund may acquire units in UCITS and/or other UCIs specified in clause 1 e), provided that it does not invest more

than20%of itsassets inasingleUCITSorotherUCI.For thepurposesof theapplicationof this investment limit, theTargetFund in a multi-subfund UCI, as defined by Article 181 of the Law, is considered as a separate issuer, provided that the principle of segregation of the commitments of the different subfunds with regard to third parties is assured.

b) InvestmentsinunitsofUCIsotherthanUCITSmaynotintotalexceed30%oftheassetsoftheTargetFund.IftheTargetFundhas acquired units in UCITS and/or other UCIs, the assets of these UCITS or other UCIs are not combined for the purposes of the limits stipulated in point 4.

c) Due to the fact that the Company may invest in UCI units, the investor is exposed to a risk of fees doubling (for example, the management fees of the UCI in which the Company is invested).TheTargetFundmaynotinvestinaUCITSorotherUCI(underlying)withamanagementfeeexceeding2.50%perannum.When the Target Fund invests in other UCITS and/or other UCIs which are managed, directly or by delegation, by the same management company or by any other company with which the management company is associated within the context of a management or control community or significant* direct or indirect ownership, the Target Fund will not incur any subscription or redemption fee for the units of these underlying assets.The maximum annual management fee payable directly by the Target Fund is defined in Section 6.2.9.(* The term is not defined in the Target Fund’s prospectus)

8)a) The Company may not acquire shares accompanied by voting rights that entitle it to exercise significant influence on an issuer’s

management.b) In addition, the Company may not acquire more than:

− 10%ofshareswithoutvotingrightsinasingleissuer;− 10%ofbondsfromasingleissuer;− 25%ofunitsinasingleUCITSand/orotherUCI;− 10%ofmoneymarketinstrumentsissuedbyasingleissuer.The limits stipulated in the second, third and fourth indents above need not be respected at the time of acquisition if, at that time, the gross amount of bonds or money market instruments, or the net amount of securities issued, cannot be calculated.

c) Clauses a) and b) do not apply with regard to:− transferablesecuritiesandmoneymarketinstrumentsissuedorguaranteedbyaEUmemberstateoritsregionalpublic

authorities;− transferablesecuritiesandmoneymarketinstrumentsissuedorguaranteedbyastatethatisnotpartoftheEU;− transferablesecuritiesandmoneymarketinstrumentsissuedbyinternationalorganisationswithapublicremittowhich

oneormorememberstatesoftheEUbelong;− shares held by theCompany in the capital of a company froma state outside theEU investing its assetsmainly in

securities of issuers from that state when, by virtue of its legislation, such a holding constitutes for the Company the only possibility of investing in securities of issuers from this state. However, this exemption is only applicable if, in its investment policy, the company from the state outside the EU respects the limits established in points 4, 7 and 8 a) and b). In the event of the limits stipulated in points 4 and 7 being exceeded, point 9 will apply mutatis mutandis;

9) The Target Fund are not bound to conform to the limits stipulated in this Appendix during the exercise of subscription rights on transferable securities or money market instruments that form part of their assets.While continuing to respect the principle of the diversification of risks, newly authorised subfunds may be exempted from points 4, 5, 6 and 7 for six months following the date of their authorisation.If the limits stated in the first paragraph are exceeded by the Target Fund unintentionally or following the exercise of subscription rights, the Target Fund must aim as a priority in its sales transactions, to regularise this situation taking account of the interests of shareholders.

10) The Target Fund may acquire foreign currencies by means of back-to-back loan.The Target Fund may borrow provided that such borrowings:a) onatemporarybasisandrepresentnomorethan10%ofitsassets;b) toenabletheacquisitionofimmovablepropertyessentialforthedirectpursuitofitsbusinessandrepresentnomorethan10%

of its assets.Suchborrowingsshallnotexceed15%ofitsassetsintotal.

11) Without prejudice to the application of points 1, 2 and 3, the Target Fund may not grant credits or stand surety for a third party.The preceding paragraph does not prevent the Target Fund’s acquisition of transferable securities, money market instruments or other financial instruments specified in clauses 1.e), g) and h), that are not fully paid-up.The Target Fund may not short-sell transferable securities, money market instruments or other financial instruments specified in clauses 1 e), g) and h).

87Master Prospectus

12) The Target Fund may acquire shares of one or more other funds of the Company (the target sub-fund), provided that:-thetargetsub-funddoesnot,inturn,investintheTargetFund;-theproportionofassetsthateachtargetsub-fundinvestsinothertargetsub-fundsoftheCompanydoesnotexceed10%;- any voting rights attached to the shares of the target sub-funds shall be suspended as long as they are held by the Target Fund and withoutprejudiceofappropriatetreatmentintheaccountingandperiodicreports;- in all cases, as long as these target sub-fund shares are held by the Company, their value shall not be taken into account for the calculationofthenetassetsoftheCompanyforpurposesofverifyingtheminimumthresholdofnetassetsrequiredbylaw;- there shall be no duplication of management/subscription commissions or redemption between these commissions at the level of the Target Fund that invested in the target sub-fund and this target sub-fund.

As a general rule, the Company reserves the right to introduce other investment restrictions at any time when indispensable for conforming to the laws and regulations in force in certain states where the Company’s shares may be offered and sold. On the other hand, where permitted by current regulations applicable to the Company, the Company reserves the right to exempt the Target Fund from one or more of the investment restrictions specified above. These exceptions will be mentioned in the investment policies summarised in Target Fund’s prospectus.

6.2.5 The Operator

BNP Paribas Investment Partners Luxembourg SA is a wholly owned subsidiary of BNP Paribas Investment Partners SA which is wholly owned by BNP Paribas SA.

BNP Paribas SA

BNP Paribas (www.bnpparibas.com) is one of the largest bank in the eurozone by deposits. With a presence in more than 80 countries and more than 190,000 employees, including 145,000 in Europe, BNP Paribas is a leading European provider of financial services on a worldwide scale. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Retail Banking, the Group has four domestic markets: Belgium, France, Italy and Luxembourg. BNP Paribas is rolling out its integrated model across the Europe-Mediterranean zone and boasts a large network in the United States. BNP Paribas Personal Finance is the leader in consumer lending in Europe. In its Corporate & Investment Banking and Investment Solutions activities, BNP Paribas also enjoys top positions in Europe and solid and fast-growing businesses in Asia.

BNP Paribas Investment Partners SA

BNP Paribas Investment Partners is the dedicated autonomous asset management business of the BNP Paribas Group. BNP Paribas Investment Partners offers the full range of investment management services to both institutional and retail clients around the world. Central to the way we work is the concept of partnership – both in terms of how we behave as a family of companies and our relationships with our clients. Around 800 investment professionals work across our network of some 60 investment centres, each specialising in a particular asset class or type of product. With total assets under management of EUR 479 billion*, BNP Paribas Investment Partners is the 6th-largest asset manager in Europe*.

* Source: BNPP IP, per 31 December 2013

6.2.6 The Investment Manager

The Investment Manager is BNP Paribas Investment Partners Asia Limited, a wholly owned subsidiary of BNP Paribas Investment Partners SA which is wholly owned by BNP Paribas SA.

6.2.7 Regulatory Authority

The regulatory authority of the Target Fund is the Commission de surveillance du secteur Financier (CSSF).

6.2.8 Applicable Legislation

The Target Fund is a sub-fund of the Company. The Company is an open-ended investment company (société d’investissement à capital variable – abbreviated to “SICAV”), incorporated under Luxembourg law on 27 March 1990 for an indefinite period. The Company is currently governed by the provisions of Part I of the Law of 17 December 2010 governing undertakings for collective investment as well as by Directive 2009/65.

6.2.9 Fund Performance

Annual Trailing Return as at 31 December 2013

1-Year(%)

3-Year*(%)

Since Inception**(%)

Class I units of Target Fund -24.57 -7.15 10.07

JCI -21.85 -5.26 8.59

* Annualised Net of Fees Return** Since Inception (30/03/2007) - annualised

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


6.2.10 Fees, Charges And Expenses

Fees

Sales Charge Charged By The Target Fund

Amaximumsaleschargeof5%generallyappliestotheTargetFund.However,thesaleschargechargedbytheTargetFundwillbewaived.

Repurchase Charge

No general repurchase charges are levied on the redemption of Class I of the Target Fund.

Charges And Expenses

Management Fee

TheInvestmentManagerisentitledtoreceiveamanagementfeeof0.80%perannumoftheNAVoftheTargetFund.Suchfeeiscalculatedandaccrued on each Valuation Day and is payable monthly in arrears on the basis of the average daily NAV of the Target Fund.

The Guidelines provides that an annual management fee may only be charged once.

The management fee is charged at the Fund only. (Please refer to Section 9.2.1 for details)

Other Fee

Thereisalsootherfeesof0.35%perannumoftheNAVoftheTargetFundwhichincludefeescalculatedanddeductedmonthlyfromtheaveragenet assets of the Target Fund, share category, or share class and serving to cover general custody assets expenses (remuneration of the depositary) and daily administration expenses (NAV calculation, record and book keeping, notices to the shareholders, providing and printing the documents legally required for the shareholders, domiciliation, auditors cost and fees), except for brokerage fees, commissions for transactions not related to the deposit, director fees, interest and bank fees, extraordinary expenses, and the taxe d’abonnement in force in Luxembourg, as well as any other specific foreign tax and other regulator levy.

Custodian Fee

TheCustodianisentitledtoreceiveafeeofapproximately0.075%oftheNAVoftheTargetFundpayablemonthlyinarrears.

Investors may be subjected to higher fees arising from the layered investment structure of a feeder fund.

89Master Prospectus

7. PERFORMANCE OF THE FUNDS

7.1 Fund Performance

7.1.1 Manulife Investment Growth Fund

Average Total Return as at 31 July 2013

1-Year%

3-Year%

5-Year%

10-Year%

MGF 16.33 13.48 13.94 12.58FBMEMAS 10.35 10.21 9.79 9.41

Annual Total Return for the Financial Year Ended 31 July

2013%

2012%

2011%

2010%

2009%

2008%

2007%

2006%

2005%

2004%

MGF 16.33 2.63 22.42 22.09 7.61 (8.67) 64.79 0.19 1.31 11.51FBMEMAS 10.35 4.61 15.96 16.33 2.47 (17.39) 54.06 0.48 6.77 12.86

1-Year Fund Performance Review

TheFund’sNAVrose16.33%inthefinancialyearended31July2013,outperformingitsbenchmarkindexwhichincreasedby10.35%duringthesame period. The out-performance was mainly due to the selection of key stocks, which were re-rated post removal of the 13th General Election overhang in the market.

Note: The Fund’s benchmark has been changed from KLSE Emas Index to FBMEMAS following the cessation of the former, starting from financial year ended 31 July 2006.

7.1.2 Manulife Investment Progress Fund


1-Year%

3-Year%

5-Year%

10-Year%

MPF 29.17 15.98 15.90 14.15MPI 18.51 9.69 7.99 4.37


2013%

2012%

2011%

2010%

2009%

2008%

2007%

2006%

2005%

2004%

MPF 29.17 4.01 16.12 29.22 3.75 (15.21) 69.72 12.33 (2.72) 14.19MPI 18.51 1.87 9.30 16.51 (4.49) (26.35) 58.71 (1.04) (13.11) 3.94


TheFund’sNAVincreasedby29.17%inthefinancialyearended31July2013,outperformingitsbenchmarkindexwhichincreasedby18.51%during the same period. The out-performance was mainly due to strong selection of key stocks which did well.

Note: The Fund’s benchmark used for the periods under review has been changed to MPI on 21 September 2009 as it provide a more updated andbetterrepresentationofthesmallandmid-capmarketinMalaysia.TheMPIcomprises50%FTSEBursaMalaysiaSmallCapIndexand50%FTSE Bursa Malaysia Fledgling Index, which indices are periodically reviewed by FTSE. The index component stocks are also subject to FTSE international standards of liquidity and investability.

7.1.3 Manulife Investment Bond Fund

Average Total Return as at 31 October 2013

1-Year%

3-Year%

5-Year%

10-Year%

MBF 2.89 4.37 4.29 4.675-year MGS Bond Index 3.41 3.40 3.48 3.68


Annual Total Return for the Financial Year Ended 31 October

2013%

2012%

2011%

2010%

2009%

2008%

2007%

2006%

2005%

2004%

MBF 2.89 4.98 5.25 3.90 4.47 2.07 4.89 3.28 9.70 5.495-year MGS Bond Index 3.41 3.28 3.49 3.64 3.55 3.88 3.63 4.09 3.60 4.28


TheFund’sNAVincreasedby2.89%inthefinancialyearended31October2013,outperformingitsbenchmarkindexwhichincreasedby3.41%during the same period. The out-performance was due to the Fund’s holdings in quality debt papers, which held their value better that government bonds during the sell-off in emerging market bonds.

Note: The Fund’s benchmark has been changed from 1-Year Kuala Lumpur Interbank Offer Rate to 5-Year MGS Bond Index, starting from financial year ended 30 June 2004. The change of benchmark was to better reflect the Fund’s investments which are mainly in medium-term fixed income securities with average maturity of more than one year.

7.1.4 Manulife Investment Al-Faid


1-Year%

3-Year%

5-Year%

10-Year%

MAF 15.62 11.67 10.91 12.46FBMSHA 9.71 10.75 8.80 9.31


2013%

2012%

2011%

2010%

2009%

2008%

2007%

2006%

2005%

2004%

MAF 15.62 4.44 15.32 15.89 3.98 (12.88) 66.55 3.10 12.69 14.37FBMSHA 9.71 8.70 13.91 12.35 (0.10) (16.01) 54.87 0.67 7.19 13.87


TheFund’sNAVincreasedby15.62%in thefinancialyearended31July2013,outperforming itsbenchmark indexwhich increasedby9.71%during the same period. The out-performance was mainly due to the selection of key stocks, which was re-rated post removal of the 13th General Election overhang in the market.

Note: The Fund’s benchmark has been changed from KLSE Shariah Index to FBMSHA following the cessation of the former, starting from financial year ended 31 July 2008.

7.1.5 Manulife Investment As-Saad


1-Year%

3-Year%

5-Year%

10-Year%

MAS 2.28 3.74 4.41 4.635-year MGS Bond Index 3.41 3.40 3.48 3.68


2013%

2012%

2011%

2010%

2009%

2008%

2007%

2006%

2005%

2004%

MAS 2.28 4.50 4.46 4.56 6.31 1.78 4.42 3.96 10.17 4.135-year MGS Bond Index 3.41 3.28 3.49 3.64 3.55 3.88 3.63 4.09 3.60 4.28


TheFund’sNAV increasedby2.28% in the financial year ended31October 2013, underperforming its benchmark indexwhich increasedby3.41%duringthesameperiod.Theunder-performancewasmainlyduetotheFund’searlierpositioninginduration-heavysukuk,whichbroughtoverall performance down during the sell-off in emerging market sukuk.

Note: The Fund’s benchmark has been changed from 1-Year Kuala Lumpur Interbank Offer Rate to 5-Year MGS Bond Index, starting from financial year ended 30 June 2004. The change of benchmark was to better reflect the Fund’s investments which are mainly in medium-term sukuk with average maturity of more than one year.

91Master Prospectus

7.1.6 Manulife Investment Syariah Index Fund

Average Total Return as at 30 June 2013

1-Year%

3-Year%

5-Year%

10-Year%

MSIF 12.33 12.94 8.68 11.57FBMSHA 11.74 11.94 7.44 9.70

Annual Total Return for the Financial Year Ended 30 June

2013%

2012%

2011%

2010%

2009%

2008%

2007%

2006%

2005%

2004%

MSIF 12.33 7.08 19.77 17.11 (10.12) (5.09) 51.17 8.97 6.25 18.71FBMSHA 11.74 4.62 20.01 17.71 (13.29) (7.82) 52.48 2.89 3.26 18.08


TheFund’sNAVincreasedby12.33%inthefinancialyearended30June2013,outperformingitsbenchmarkindexwhichincreasedby11.74%during the same period.

Note: The Fund’s benchmark has been changed from KLSE Shariah Index to FBMSHA following the cessation of the former, starting from financial year ended 30 June 2008.

7.1.7 Manulife Investment Value Fund


1-Year%

3-Year%

5-Year%

10-Year%

MVF 19.16 13.60 14.34 12.59FBMEMAS 10.35 10.21 9.79 9.41


2013%

2012%

2011%

2010%

2009%

2008%

2007%

2006%

2005%

2004%

MVF 19.16 0.30 22.66 29.88 2.65 (14.01) 73.19 4.34 0.23 7.55FBMEMAS 10.35 4.61 15.96 16.33 2.47 (17.39) 54.06 0.48 6.77 12.86


TheFund’sNAVincreasedby19.16%inthefinancialyearended31July2013,outperformingitsbenchmarkindexwhichincreasedby10.35%during the same period. The out-performance was mainly due to strong selection of key stocks which did well.

Note: The Fund’s benchmark has been changed from KLSE Emas Index to FBMEMAS following the cessation of the former, starting from financial year ended 31 July 2006.

7.1.8 Manulife Investment Balanced Fund


1-Year%

3-Year%

5-Year%

10-Year%

MBLF 10.07 8.90 8.96 7.80MBI 9.31 8.77 7.23 7.66


2013%

2012%

2011%

2010%

2009%

2008%

2007%

2006%

2005%

2004%

MBLF 10.07 1.34 15.77 15.52 2.95 (7.99) 25.57 1.03 1.50 16.52MBI 9.31 1.93 15.48 14.37 (3.68) (6.79) 28.95 3.35 6.36 11.72


TheFund’sNAVincreasedby10.07%inthefinancialyearended30June2013,outperformingitsbenchmarkindexwhichroseby9.31%duringthe same period. The out-performance was mainly due to better selective stock performance.


Note: A component of the benchmark namely FBM KLCI has been changed to FBM100, starting from financial year ended 30 June 2010. FBM100 closely matches the old KLCI in terms of diversity compared to the FBM KLCI which only has 30 stocks, hence reducing investors’ concentrated risk exposure.

7.1.9 Manulife Investment Equity Index Fund


1-Year%

3-Year%

5-Year%

10-Year%

MEIF 12.43 12.70 11.19 12.20FBM KLCI 10.91 10.51 8.37 9.87


2013%

2012%

2011%

2010%

2009%

2008%

2007%

2006%

2005%

2004%

MEIF 12.43 3.66 22.81 24.35 (4.51) (9.11) 45.43 2.50 14.45 19.99FBM KLCI 10.91 1.27 20.17 22.21 (9.38) (12.39) 48.07 2.97 8.35 18.48


TheFund’sNAVincreasedby12.43%inthefinancialyearended30June2013,outperformingitsbenchmarkindexwhichroseby10.91%duringthe same period. The out-performance was due to an opportune timing of portfolio rebalancing.

Note: The Fund’s benchmark has been changed from KLCI Index to FBM KLCI following the cessation of the former, starting from 6 July 2009.

1.1.10 Manulife Investment Regular Savings Fund


1-Year%

3-Year%

5-Year%

Since Launch%

MRSF 17.53 15.36 13.92 11.62FBM100 12.45 11.81 9.20 8.93


2013%

2012%

2011%

2010%

2009%

2008%

2007%

2006%

2005*%

MRSF 17.53 3.46 26.27 25.80 (0.68) (10.89) 45.55 3.41 2.34FBM100 12.45 1.22 22.78 22.60 (9.38) (12.39) 48.07 2.97 2.42

* Annual return for the financial period from 8 September 2004 (date of commencement) to 30 June 2005


TheFund’sNAVincreasedby17.53%inthefinancialyearended30June2013,outperformingitsbenchmarkindexwhichroseby12.45%duringthe same period. The out-performance was mainly due better performance of largest capitalised stock selection in the Fund.

Note: The Fund’s benchmark has been changed from KLCI to FBM KLCI following the cessation of the former, starting from 6 July 2009. The Fund’s benchmark has been changed from FBM KLCI to FBM100 starting from financial year ended 30 June 2010. FBM100 closely matches the old KLCI in terms of diversity compared to the FBM KLCI which only has 30 stocks, hence reducing investors’ concentrated risk exposure.

7.1.11 Manulife Investment Money Market Fund


1-Year%

3-Year%

5-Year%

Since Launch%

MMMF 2.76 2.79 2.56 2.801-month FD Rate 3.00 2.80 2.58 2.82

93Master Prospectus


2013%

2012%

2011%

2010%

2009%

2008%

2007%

2006%

2005*%

MMMF 2.76 2.73 2.87 2.07 2.37 3.28 3.08 2.83 3.651-month FD Rate 3.00 2.64 2.76 2.32 2.17 2.98 3.08 3.18 3.67

* Annual return for the financial period from 8 September 2004 (date of commencement) to 31 October 2005


TheFund’sNAV increasedby2.76% in the financial year ended31October 2013, underperforming its benchmark indexwhich increasedby3.00%during the sameperiod.Theunder-performancewasmainlydue to its relativelyhighweighting incash, aimedatproviding liquidity tounitholders.

Note: The Fund’s benchmark has been changed from 3-Month Kuala Lumpur Interbank Offer Rate to 1-Month FD Rate, starting from financial year ended 31 October 2007. The change of benchmark was to better reflect the Fund’s investments which are mainly in short-term investments with average maturity of around one month.

7.1.12 Manulife Investment Pacific Fund

Average Total Return as at 30 September 2013

1-Year%

3-Year%

5-Year%

Since Launch%

MPCF 9.83 1.66 6.85 2.97MXFEJ 4.62 1.51 8.29 6.83

Annual Total Return for the Financial Year Ended 30 September

2013%

2012%

2011%

2010%

2009%

2008%

2007%

2006*%

MPCF 9.83 14.61 (16.54) (0.99) 33.89 (41.28) 38.35 12.57MXFEJ 4.62 17.93 (15.21) 15.76 22.99 (40.49) 56.87 24.18

* Annual return for the financial period from 23 June 2005 (date of commencement) to 30 September 2006


TheFund’sNAV increasedby9.83% in the financial year ended30September 2013, outperforming its benchmark indexwhich increasedby4.62%duringthesameperiod.Theout-performancewasmainlyduetoacombinationoftheFund’sstockselectionandUSdollarstrengthvis-a-vis the Ringgit.

7.1.13 Manulife Investment-ML Flexi Fund

Average Total Return as at 31 March 2014

1-Year%

3-Year%

5-Year%

Since Launch%

MNF 18.52 4.12 12.07 6.63MFI 6.94 4.91 10.12 6.46

Annual Total Return for the Financial Year Ended 31 March

2014%

2013%

2012%

2011%

2010%

2009%

2008%

2007%

2006*%

MNF 18.52 7.43 (11.35) 11.61 40.32 (21.29) (9.53) 35.19 1.83MFI 6.94 4.05 3.76 10.73 24.66 (15.43) 2.34 19.41 2.17

* Annual return for the financial period from 6 September 2005 (date of commencement) to 31 March 2006


TheFund’sNAVincreasedby18.52%inthefinancialyearended31March2014,outperformeditsbenchmarkreturnwhichincreasedby6.94%during the same period. The out-performance was mainly due to asset allocation of overweighting equities as well as the underlying stock selection.

Note: A component of the benchmark namely FBM KLCI has been changed to FBM100, starting from financial year ended 31 March 2010. FBM100 closely matches the old KLCI in terms of diversity compared to the FBM KLCI which only has 30 stocks, hence reducing investors’ concentrated risk exposure.


7.1.14 Manulife Investment Al-Fauzan


1-Year%

3-Year%

5-Year%

Since Launch%

MAFZ 13.05 12.90 14.83 13.11MIDI 8.50 9.05 10.62 8.45


2013%

2012%

2011%

2010%

2009%

2008%

2007%

2006*%

MAFZ 13.05 26.52 0.62 19.39 16.19 (11.82) 44.97 5.84MIDI 8.50 22.07 (2.10) 11.39 14.66 (17.02) 31.78 6.20

* Annual return for the financial period from 6 September 2005 (date of commencement) to 30 September 2006


TheFund’sNAV increasedby13.05% in the financialyearended30September2013,outperforming itsbenchmark indexwhich increasedby8.50%during the sameperiod.Theout-performancewasmainly due to theFund’s selection of high-yieldingShariah-compliant stockswhichprovided both earnings growth and valuation support.

7.1.15 Manulife Investment Dividend Fund

Average Total Return as at 30 April 2013

1-Year%

3-Year%

5-Year%

Since Launch%

MDF 15.61 15.17 13.06 14.71MDI 8.45 8.71 7.18 8.59

Annual Total Return for the Financial Year Ended 30 April

2013%

2012%

2011%

2010%

2009%

2008%

2007*%

MDF 15.61 8.95 21.27 32.78 (8.94) 4.92 36.56MDI 8.45 2.99 15.02 32.43 (16.84) (2.17) 29.63

* Annual return for the financial period from 28 March 2006 (date of commencement) to 30 April 2007


TheFund’sNAVincreasedby15.61%inthefinancialyearended30April2013,outperformingitsbenchmarkindexwhichincreasedby8.45%during the same period. The out-performance was mainly due to its defensive positioning and good selection of outperforming stocks that offer both superior dividend buffer as well as earnings visibility.

Note: A component of the benchmark namely FBM KLCI has been changed to FBM100, starting from financial year ended 30 April 2010. FBM100 closely matches the old KLCI in terms of diversity compared to the FBM KLCI which only has 30 stocks, hence reducing investors’ concentrated risk exposure.

7.1.16 Manulife Investment Al-Umran

Average Total Return as at 31 May 2013

1-Year%

3-Year%

5-Year%

Since Launch%

MAU 11.68 9.75 8.64 9.43MIBI 10.75 9.35 5.55 7.87

Annual Total Return for the Financial Year Ended 31 May

2013%

2012%

2011%

2010%

2009%

2008%

2007*%

MAU 11.68 1.22 16.95 14.78 (0.29) 3.42 22.03MIBI 10.75 3.42 14.16 11.18 (9.89) 0.21 31.18

* Annual return for the financial period from 28 March 2006 (date of commencement) to 31 May 2007

95Master Prospectus


For the financial year ended 31May2013, theNAVof theFund increased by 11.68%.TheFund outperformed its benchmark return,whichincreasedby10.75%.Theout-performancewasmainlyduetotheFund’sstockselectionprocessanditsinvestmentsinout-performingShariah-compliant equities and unquoted sukuk.

7.1.17 Manulife Investment-CM Flexi Fund

Average Total Return as at 31 March 2014

1-Year%

3-Year%

5-Year%

Since launch%

MCF 35.88 13.97 22.86 9.28MFI 6.90 4.87 9.86 4.88

Annual Total Return for the Financial Year Ended 31 March

2014%

2013%

2012%

2011%

2010%

2009%

2008*%

MCF 35.88 4.56 4.20 18.56 60.67 6.57 6.90MFI 6.90 4.00 3.73 10.73 25.32 7.08 9.37

* Annual return for the financial period from 23 January 2007 (date of commencement) to 31 March 2008


Forthefinancialyearended31March2014,theNAVoftheFundincreasedby35.88%.TheFundoutperformeditsbenchmark,whichincreasedby 6.90%.The out-performance for the financial year under reviewwas largely attributable to the decision to raise equity exposure and thetactical shift to mid-small cap stocks after the general election in early May 2013.

Note: A component of the benchmark namely FBM KLCI has been changed to FBM100, starting from financial year ended 31 March 2010. FBM100 closely matches the old KLCI in terms of diversity compared to the FBM KLCI which only has 30 stocks, hence reducing investors’ concentrated risk exposure.

7.1.18 Manulife Investment Al-Ma’mun

Average Total Return as at 30 November 2013

1-Year%

3-Year%

5-Year%

Since Launch%

MAM 2.81 2.81 2.56 2.681-month GIA 3.13 3.11 2.82 3.02

Annual Total Return for the Financial Year Ended 30 November

2013%

2012%

2011%

2010%

2009%

2008%

2007*%

MAM 2.81 2.82 2.79 1.89 2.50 3.15 2.391-month GIA 3.13 3.12 3.07 2.57 2.20 3.54 3.07

* Annual return for the financial period from 23 January 2007 (date of commencement) to 30 November 2007


TheFund’sNAVincreasedby2.81%inthefinancialyearended30November2013,underperformingitsbenchmarkindexwhichincreasedby3.13%duringthesameperiod.Theunder-performancewasprimarilyduetoaweakbond/sukukmarket,asbond/sukukpricesfellinanticipationof the US Federal Reserve’s quantitative easing programme taper.

7.1.19 Manulife Investment Asia-Pacific REIT Fund

Average Total Return as at 31 August 2013

1-Year%

3-Year%

5-Year%

Since Launch%

MAPR 1.46 9.28 9.47 4.05BBAREITEJ (16.74) (4.35) (5.74) (0.04)


Annual Total Return for the Financial Year Ended 31 August

2013%

2012%

2011%

2010%

2009%

2008*%

MAPR 1.46 18.77 8.30 17.98 2.06 (18.52)BBAREITEJ (16.74) 12.46 (6.53) 22.39 (30.52) (4.48)

BBAREITEJ: Bloomberg Asia REIT ex-Japan Index

* Annual return for the financial period from 7 June 2007 (date of commencement) to 31 August 2008


TheFund’sNAVincreasedby1.46%inthefinancialyearended31August2013,outperformingitsbenchmarkindexwhichdecreasedby16.74%during the same period. The out-performance was mainly due to the Fund’s relatively high cash position at the start of the calendar year and weighting in Hong Kong and Malaysia REITs.

Note: The Fund’s benchmark has been changed from Bloomberg Asia REIT Index to BBAREITEJ effective 1 July 2013. The change of benchmark will provide a more representative investment universe and a more suitable performance measures since the Fund does not invest in REITs listed in Japan.

7.1.20 Manulife Investment-HW Flexi Fund


1-Year%

3-Year%

5-Year%

Since Launch%

MHF 12.97 64.36 149.36 13.87MFI 4.72 18.07 38.51 3.97


2013%

2012%

2011%

2010%

2009%

2008*%

MHF 12.97 21.65 19.53 21.34 25.38 (11.39)MFI 4.72 8.42 3.97 11.27 5.44 (8.44)

* Annual return for the financial period from 26 July 2007 (date of commencement) to 31 August 2008


Forthefinancialyearended31August2013,theFundregisteredareturnof12.97%,outperformingitsbenchmark,of4.72%by8.25%.Theout-performance was due to judicious stock selection as the Fund Manager focused on stocks with quality management and strong growth prospects.

Note: A component of the benchmark namely FBM KLCI has been changed to FBM100, starting from financial year ended 31 August 2010. FBM100 closely matches the old KLCI in terms of diversity compared to the FBM KLCI which only has 30 stocks, hence reducing investors’ concentrated risk exposure.

7.1.21 Manulife Investment-CM Shariah Flexi Fund

Average Total Return as at 30 November 2013

1-Year%

3-Year%

5-Year%

Since Launch%

MCS 27.13 15.23 18.30 7.27MIFI 17.61 6.09 9.76 3.87

Annual Total Return for the Financial Year Ended 30 November

2013%

2012%

2011%

2010%

2009%

2008%

2007*%

MCS 27.13 13.01 6.50 15.31 31.30 (34.05) 6.58MIFI 17.61 7.11 1.80 9.62 21.71 (21.25) 7.32

* Annual return for the financial period from 6 November 2007 (date of commencement) to 30 November 2007

97Master Prospectus


Forthefinancialyearended30November2013,theNAVoftheFundincreasedby27.13%from30November2012.TheFundoutperformeditsbenchmarkwhichincreasedby9.52%overthefinancialyearunderreview.Theout-performancewasprimarilyduetothehighShariah-compliantequity exposure and good stock selections.

7.1.22 Manulife Investment Shariah Asia-Pacific Fund


1-Year%

3-Year%

5-Year%

Since Launch%

MSAP (2.91) (0.01) 5.31 0.94SPXJIPU 1.10 1.47 6.82 (0.36)


2013%

2012%

2011%

2010%

2009%

2008*%

MSAP (2.91) 12.14 (8.19) 3.57 25.10 (18.56)SPXJIPU 1.10 17.99 (12.40) 12.98 17.81 (29.57)

* Annual return for the financial period from 16 January 2008 (date of commencement) to 30 September 2008


TheFund’sNAVdecreasedby2.91%inthefinancialyearended30September2013,underperformingitsbenchmarkindexwhichincreasedby1.10%duringthesameperiod.Theunder-performancewasduetotheFund’sdefensiveholdingsofcashandbiastowardscyclicalstockswhichunderperformed the market.

Note: The Fund’s benchmark has been changed from Dow Jones Islamic Market Asia-Pacific ex-Japan Index to the SPXJIPU effective 1 January 2009 following the termination of service agreement with the former’s licensor, Dow Jones & Company, Inc.

7.1.23 Manulife Investment Greater China Fund


1-Year%

3-Year%

Since Launch%

MGCF 13.32 (1.30) 1.64MGCI 8.64 (1.27) 7.77


2013%

2012%

2011%

2010%

2009*%

MGCF 13.32 (6.61) (9.13) (9.58) 24.48MGCI 8.64 (10.66) (0.87) 3.69 44.16

* Annual return for the financial period from 21 October 2008 (date of commencement) to 31 August 2009.


TheFund’sNAVincreasedby13.32%inthefinancialyearended31August2013outperformingitsbenchmarkindexwhichincreasedby8.64%during the same period. The out-performance was mainly due to stock selection and timely implementation of tactical asset allocation decisions by deploying the high cash holding into oversold equities in April/May.

Note:MGCIcomprising35%HangSengChinaEnterprisesIndex,35%HangSendIndex,15%TSECTaiwan50Indexand15%CSI300Index.

7.1.24 Manulife Investment U.S. Equity Fund

Average Total Return as at 31 May 2013

1-Year%

3-Year%

Since Launch%

MUS 19.08 7.18 4.10S&P 500 24.45 14.39 12.06


Annual Total Return for the Financial Year Ended 31 May

2013%

2012%

2011%

2010*%

MUS 19.08 (8.14) 12.57 (6.12)S&P 500 24.45 (2.59) 23.47 0.75

* Annual return for the financial period from 21 October 2009 (date of commencement) to 31 May 2010.


For the financial year ended 31 May 2013, the NAV of the Fund increased by19.08%.TheFundunder-performeditsbenchmarkreturn,S&P500,whichincreasedby24.45%.Theunder-performanceoftheFundwasduetotheweakUSDwhichdepreciated2.63%againstRinggitandalsotheforeign exchange losses arisen from settlement of trades during the financial year under review.

7.1.25 Manulife Investment Indonesia Equity Fund


1-Year%

Since Launch%

MIE (6.75) (5.67)JCI 3.32 5.56


2013%

2012%

2011*%

MIE (6.75) (6.71) (2.76)JCI 3.32 5.62 7.00

* Annual return for the financial period from 19 October 2010 (date of commencement) to 31 August 2011.


TheFund’sNAVdecreased by -6.75% in the financial year ended31August 2013underperforming its benchmark indexwhich increased by3.32%duringthesameperiod.Theunder-performanceoftheFundwasduemainlytotheunder-performanceofitsunderlyingTargetFundwhichdeclined8.23%duringthefinancialyearunderreview.

7.1.26 Manulife Investment Shariah Progress Fund

Average Total Return as at 30 April 2013

1-Year%

Since Launch%

MSPF 18.91 16.58MSPI 2.84 1.19

Annual Total Return for the Financial Year Ended 30 April

2013%

2012*%

MSPF 18.91 14.88MSPI 2.84 (0.71)

* Annual return for the financial period from 20 April 2011 (date of commencement) to 30 April 2012.


For the financial year ended 30April 2013, the Fund registered a 18.91% return while its benchmark registered a return of 2.84%. Theoutperformance was due to successful stock selection that beat the benchmark return.

99Master Prospectus

1.1.27 Manulife Investment-HW Shariah Flexi Fund

Average Total Return as at 31 January 2014

1-Year%

Since Launch%

MHSF 30.04 31.44MIFI 8.30 7.07

Annual Total Return for the Financial Year Ended 31 January

2014*%

MHSF 23.60MIFI 5.44

* Annual return for the financial period from 18 October 2012 (date of commencement) to 31 January 2014.


Forthefinancialperiodunderreview,theFundregistereda31.44%returnwhileitsbenchmarkreturns,MIFI,registeredareturnof7.07%.Theoutperformance was due to judicious stock selection as the Manager focused on Shariah-compliant stocks with quality management and strong growth prospects.

7.2 Distribution Of Income, Asset Allocation And Portfolio Turnover Ratio (PTR)


Financial Year Ended

1.8.2012to

31.7.2013

1.8.2011to

31.7.2012

1.8.2010to

31.7.2011Distribution of IncomeGross distribution per unit (sen) 3.60 3.50 4.00

Net distribution per unit (sen) 3.55 3.25 3.91Asset Allocation (%)*Malaysian Equities 83.05 105.59 95.17

Cash Instruments 16.95 (5.59) 4.83PTR (Times)** 0.30 0.23 0.28

*Asat31July2013,theFundwas83.05%investedinMalaysianequitiesand16.95%incashinstruments.Thequotedinvestmentalsoreflectedthe amount of distribution payable,which accounted for 7.88%ofNAV.Stripping out the distribution payable, theFund’s equity investmentstoodat75.17%asat31 July2013.Thechanges inassetallocation towardsamoredefensive stancewithhighercash levelswas the resultofthe Fund Manager’s cautious view in light of potential QE tapping from the US and inflow of funds into the trust which was not deployed due to unattractive stock valuations.** The PTR for the financial year is higher compared to the previous financial year is mainly due to the decrease in average fund size.



1.8.2012to

31.7.2013

1.8.2011to

31.7.2012

1.8.2010to




*Asat31July2013,theFundwas60.66%investedinMalaysianequitiesand39.34%incashinstruments.Thequotedinvestmentalsoreflectedthe amount of distribution payable, which accounted for 7.26% of NAV. Stripping out the distribution payable, the Fund’s quoted equityinvestment stood at 53.40%as at 31 July 2013.The changes in asset allocation towards amore defensive stancewith higher cash levelswasthe result of the Fund Manager’s cautious view in light of potential QE tapping from the US and inflow of funds into the trust which was not deployed due to unattractive stock valuations.** The PTR for the financial year is higher than the previous financial year mainly due to the decrease in average fund size.




1.11.2012to

31.10.2013

1.11.2011to

31.10.2012

1.11.2010to


Net distribution per unit (sen) 3.00 3.50 2.80Asset Allocation (%)*Unquoted Fixed Income Securities 94.68 82.51 56.55

Short-Term Commercial Papers - 6.82 9.01

Cash Instruments 5.32 10.67 34.44PTR (Times)** 0.91 0.85 0.61

*Asat31October2013,theFundwas94.68%investedinunquotedfixedincomesecuritiesand5.32%incashinstruments.** The PTR for the financial year is higher as compared to the previous financial year mainly due to the increase in trading activities.



1.8.2012to

31.7.2013

1.8.2011to

31.7.2012

1.8.2010to


Net distribution per unit (sen) 3.37 3.42 4.40Asset Allocation (%)*Malaysian Shariah-compliant Equities 85.22 105.87 105.01

Cash Instruments 14.78 (5.87) (5.01)PTR (Times)** 0.26 0.24 0.24

*As at 31 July 2013, theFundwas 85.22% invested inMalaysianShariah-compliant equities and 14.78% in cash instruments.The quotedShariah-compliant equity investment also reflected the amount of distribution payable,which accounted for 7.78%ofNAV.Stripping out thedistributionpayable,theFund’sShariah-compliantequityinvestmentstoodat77.44%asat31July2013.Thechangesinassetallocationtowardsa more defensive stance with higher levels was the result of the Manager’s cautious view in light of potential QE tapping from the US and inflow of funds into the trust which was not deployed due to unattractive stock valuations.** The PTR for the financial year is higher compared to the previous financial year mainly due to the decrease in average fund size.



1.11.2012to

31.10.2013

1.11.2011to

31.10.2012

1.11.2010to


Net distribution per unit (sen) 3.75 4.00 3.75Asset Allocation (%)*Unquoted Sukuk 94.63 77.87 74.15

Short-Term Islamic Commercial Papers - 3.60 -


*Asat31October2013,theFundwas94.63%investedinunquotedsukukand5.37%inIslamicdepositsandcashinstruments.Theincreaseinthe total investment level is due to the Manager’s decision to deploy the Fund’s excess cash into a higher proportion of sukuk securities vis-a-vis cash deposits.** The PTR for the financial year is higher as compared to the previous financial year mainly due to the increase in trading activities.

101Master Prospectus



1.7.2012to

30.6.2013

1.7.2011to

30.6.2012

1.7.2010to


Net distribution per unit (sen) 5.38 6.78 5.33Asset Allocation (%)* Malaysian Shariah-compliant Equities 92.77 97.39 94.75


*Asat30June2013,theFundwas92.77%investedinMalaysianShariah-compliantequitiesand7.23%investedincashinstruments.** The PTR for the financial year is lower as compared to the previous financial year mainly due to the increase in NAV.



1.8.2012to

31.7.2013

1.8.2011to

31.7.2012

1.8.2010to



Cash Instruments 21.82 (0.41) (4.93)PTR (Times)** 0.40 0.61 0.67

*Asat31July2013,theFundwas78.18%investedinMalaysianequitiesand21.82%incashinstruments.Thequotedinvestmentalsoreflectedthe amount of distribution payable, which accounted for 7.49% of NAV. Stripping out the distribution payable, the Fund’s quoted equityinvestmentstoodat70.69%asat31July2013.Thechangesinassetallocationtowardsamoredefensivestancewithhighercashlevelswastheresult of the Manager’s cautious view in light of potential QE tapping from the US and inflow of funds into the trust which was not deployed due to unatrractive stock valuations.** The PTR for the financial year is lower as compared to the previous financial year mainly due to the decrease in trading activities.



1.7.2012to

30.6.2013

1.7.2011to

30.6.2012

1.7.2010to



Unquoted Fixed Income Securities 42.55 36.63 25.77

Short-Term Commercial Papers - 1.49 4.44

Cash Instruments (1.29) 0.09 9.11PTR (Times)** 0.41 0.29 0.30

*As at 30 June2013, theFundwas58.74% invested inMalaysian equities, 42.55% inunquoted fixed income securities and (1.29%) in cashinstruments.The quoted investments also reflected the amout of distribution payable,which accounted for 3.89%ofNAV.Stripping out thedistributionpayable, theFund’s equityand fixed income instruments stoodat97.49%as at30 June2013.The increase in the total investmentlevel is primarily due to an increase in allocation for fixed income securities.** The PTR for the financial year is higher as compared to previous financial year mainly due to the increase in trading activities.




1.7.2012to

30.6.2013

1.7.2011to

30.6.2012

1.7.2010to



Cash Instruments (2.41) (0.43) (4.78)PTR (Times)** 0.29 0.34 0.20

*As at 30 June 2013, theFundwas 102.41% invested inMalaysian equities and (2.41%) in cash instruments.The quoted investments alsoreflected the amount of distribution payable,which accounted for 8.60% ofNAV. Stripping out the distribution payable, the Fund’s equityinvestmentsstoodat93.82%asat30June2013.** The PTR for the financial year is lower as compared to the previous financial year mainly due to the decrease in trading activities.



1.7.2012to

30.6.2013

1.7.2011to

30.6.2012

1.7.2010to




*Asat30June2013,theFundwas89.39%investedinMalaysianequitiesand10.61%incashinstruments.Thequotedinvestmentsalsoreflectedtheamountofdistributionpayable,whichaccountedfor7.97%ofNAV.Strippingoutthedistributionpayable,theFund’sequityinvestmentstoodat81.42%asat30June2013.TheFundwillmaintainitsminimuminvestedlevelsat90%.** The PTR for the financial year is lower as compared to the previous financial year mainly due to significant decrease in trading activities.



1.11.2012to

31.10.2013

1.11.2011to

31.10.2012

1.11.2010to


Net distribution per unit (sen) 3.20 3.10 3.10Asset Allocation (%)*Unquoted Fixed Income Securities - - -

Short-Term Commercial Papers 63.08 86.89 76.54


*As at 31October 2013, the Fundwas 63.08% invested in short-term commercial papers and 36.92% in depositswith licensed financialinstitutions.

** The PTR for the financial year is lower as compared to the previous financial year mainly due to the decrease in trading activities.




1.10.2012to

30.9.2013

1.10.2011to

30.9.2012

1.10.2010to

30.9.2011Distribution of IncomeGross distribution per unit (sen) - - -

Net distribution per unit (sen) - - -Asset Allocation (%)*Malaysian Equities 2.90 4.90 5.46

Foreign Equities 92.62 88.63 83.37


*Asat30September2013, theFundwas95.52%investedinequities listedinmarkets includingHongKong/China,Singapore,Taiwan,SouthKorea, Malaysia, Thailand and Indonesia.The slight increase in investment reflects the Fund’s deployment of cash particularly to ASEAN markets.** The PTR for the financial year is higher as compared to the previous financial year mainly due to the increase in trading activities.



1.4.2013to

31.3.2014

1.4.2012to

31.3.2013

1.4.2011to





*Asat31March2014,thisFundwasfullyinvestedwith90.94%%inMalaysiaand12.94%inoverseasmarkets.** The PTR for the financial year is higher as compared to the previous financial year mainly due to the increase in trading activities.



1.10.2012to

30.9.2013

1.10.2011to

30.9.2012

1.10.2010to




*Asat30September2013,theFundwas83.36%investedinMalaysianShariah-compliantequitiesand16.64%incashinstruments.TheFund’sinvestment level reflects the Fund Manager’s continuous effort to realise profit and mobilise the new funds which were injected during the period.** The PTR for the financial year is lower as compared to the previous financial year is mainly due to the increase in average fund size.




1.5.2012to

30.4.2013

1.5.2011to

30.4.2012

1.5.2010to




*Asat30April2013,theFundwas99.73%investedinMalaysianequitiesand0.27%incashinstruments.Theincreaseintheinvestmentlevelreflects the Fund Manager’s expectation that defensive dividend stocks will continue to outperform due to uncertainty in the period leading up to the 13th General Election.** The PTR for the financial year remains consistent with the previous financial year.



1.6.2012to

31.5.2013

1.6.2011to

31.5.2012

1.6.2010to



Unquoted Sukuk 46.70 39.29 21.39

Short-Term Islamic Commercial Papers - - 10.44


*Asat31May2013,theFundwas54.39%investedinquotedMalaysianShariah-compliantequities,46.70%inunquotedsukuk,and(1.09%)incashinstruments.Thequotedinvestmentsalsoreflectedtheamountofdistributionpayable,whichaccountedfor6.64%ofNAV.Strippingoutthedistributionpayable,theFund’sShariah-compliantequityandsukukinvestmentsstoodat94.44%asat31May2013.** The PTR for the financial year remains fairly consistent with the previous financial year.



1.4.2013to

31.3.2014

1.4.2012to

31.3.2013

1.4.2011to




Cash Instruments 19.69 17.86 (2.46)PTR (Times)** 4.91 3.34 2.03

* Asat31March2014, theequityexposurewasat80.31%, slightlybelow the82.14% levelayearago. InMay2013, theFund raisedequityexposuretoabove95%andmadethetacticaldecisiontoshifttomid-smallcapstocks.** The PTR for the financial year is higher as compared to the previous financial year mainly due to the increase in trading activities.




1.12.2012To

30.11.2013

1.12.2011To

30.11.2012

1.12.2010To


Net distribution per unit (sen) 3.30 3.30 3.15Asset Allocation (%)*Sukuk 31.25 68.43 -

Short-Term Islamic Commercial Papers 19.23 22.62 62.96


*Asat30November2013, theFundwas31.25%invested insukuk,19.23%invested inshort-termIslamiccommercialpapersand49.52%incash instruments. The decreased weighting in total investments, when compared to the previous financial year, was partly due to increased Fund inflows towards the tail-end of the fiscal year.** The PTR for the financial year is lower as compared to the previous financial year mainly due to the increase in average fund size.



1.9.2012to

31.8.2013

1.9.2011to

31.8.2012

1.9.2010to


Net distribution per unit (sen) - - -Asset Allocation (%)*Malaysian REITs 23.69 15.02 35.64

Foreign REITs 69.52 52.60 58.59


*Asat31August2013, theFundwas93.21% invested inREITsand infrastructure funds,and6.79% incash instruments.The increase in theinvested levels reflected the Fund Manager’s optimistic outlook for REITs in the near to medium term.** The PTR for the financial year is higher as compared to the previous financial year mainly due to the increase in trading activities.



1.9.2012to

31.8.2013

1.9.2011to

31.8.2012

1.9.2010to




*Asat31August2013,theFundwas75.27%invested.Thiswasasignificantchangefromthe95.20%investedpositionasat31August2012.The Fund Manager has adopted a more cautious approach in view of the significant macro volatility.** The PTR for the financial year remains fairly consistent with previous financial year.




1.12.2012to

30.11.2013

1.12.2011to

30.11.2012

1.12.2010to


Net distribution per unit (sen) 2.19 1.98 2.45Asset Allocation (%)*Malaysian Shariah-compliant Equities 106.57 95.60 70.15


* As at 30 November 2013, the Fund fully invested to capitalise on the positive short-term sentiment after the Fed delayed tapering its bond purchases.Earlierin2013,equityexposurewasloweredtobelow60%forbriefperiodsoftimeduetothecountry’s13thGeneralElectionjitters.** The increase in PTR in the financial year as compared to the previous financial year is mainly due to the increase in trading activities.



1.10.2012to

30.9.2013

1.10.2011to

30.9.2012

1.10.2010to


Net distribution per unit (sen) - - -Asset Allocation (%)*Malaysian Shariah-compliant Equities 9.62 22.47 14.54

Foreign Shariah-compliant Equities 82.00 57.72 57.22


*As at 30September 2013, theFundwas 91.62% invested inShariah-compliant equities listed inmarkets includingMalaysia,HongKong/China, Taiwan, South Korea, Singapore, Indonesia and Australia. The increased investment reflects the deployment of excess cash inti Hong Kong, South Korea, Australia and Thailand.** The PTR for the financial year is higher as compared to the previous financial year mainly due to the increase in trading activities.



1.9.2012to

31.8.2013

1.9.2011to

31.8.2012

1.9.2010to


Net distribution per unit (sen) - - -Asset Allocation (%)*Malaysian Equities - - -



*Asat31August2013,theFundwas81.92%investedinequitiesandheld18.08%incash.Thecashholdingswereunchangedfromayearago,after selling into the recent rally.** The PTR for the financial year is higher than the previous financial year is mainly due to the increase in trading activities.




1.6.2012to

31.5.2013

1.6.2011to

31.5.2012

1.6.2010to


Net distribution per unit (sen) - - -Asset Allocation (%)*Collective Investment Scheme - Foreign 96.22 97.06 97.13


*Asat31May2013,theFundwas96.22%investedincollectiveinvestmentschemeand3.78%incashinstruments.** Lower PTR for the financial year was due to the relatively higher rate of reduction in trading activities as opposed to reduction in average fund size.



01.9.2012to

31.8.2013

01.9.2011to

31.8.2012

19.10.2010to


Net distribution per unit (sen) - - -Asset Allocation (%)*Collective Investment Scheme - Foreign 95.60 97.21 97.20


* Asat31August2013,theFundwas95.60%investedincollectiveinvestmentschemeand4.40%incashinstruments.** The PTR for the financial year is higher than the previous financial year mainly due to the decrease in average fund size.



01.5.2012to

30.4.2013

20.4.2011to

30.4.2012Distribution of IncomeGross distribution per unit (sen) 2.10 -

Net distribution per unit (sen) 2.08 -Asset Allocation (%)*Malaysian Shariah-compliant Equities 147.08 64.17

Cash Instruments (47.08) 35.83PTR (Times)** 1.54 2.23

*Asat30April2013,theFundwasaround147.08%investedand(47.08)%incashinstruments.Thehighassetallocationwasduetolargeunitcancellation on the last day of the financial year end.** The lower PTR for the financial year compared to the previous financial year is mainly due to the increase in average NAV.



18.10.2012to

31.01.2014Distribution of IncomeGross distribution per unit (sen) 2.40

Net distribution per unit (sen) 2.39Asset Allocation (%)*Malaysian Shariah-compliant Equities 82.99

Cash Instruments 17.01PTR (Times) 1.53

*Asat31January2014,theFundwas82.99%investedinShariah-compliantequities,downfrom89%attheendofDecember.Thisreflectsamore cautious outlook in light of the volatility in emerging markets.


Notes:

(i) Distribution

The mode of income distribution of the Funds is automatic reinvestment via issuance of additional units in the respective Funds, based on NAV per unit at the Valuation Point immediately following the distribution date. Prior to December 2003, Unit Holders of MBLF, MEIF, MSIF and MVF may opt for cash distribution.

(ii) Bases of calculation

1. Net Asset Value (NAV)

Net Asset Value of the Fund is determined by deducting the value of the Fund’s liabilities from the value of all the Fund’s assets, at the Valuation Point.

2. Net Asset Value per unit

Net Asset Value per unit is the Net Asset Value of the Fund divided by the number of Units in Circulation, at the Valuation Point.

3. Fund’s Return

The Fund’s return comprises both NAV return and Income return. The returns can be calculated based on the computation methods as follows:

TotalFund’sReturn =[(NAVReturn*SeriesofIncomeReturn)-1]x100%

NAVReturn ={[EndNAV(Ex-distribution)/BeginningNAV]-1}x100%

IncomeReturn =(GrossDistribution/Ex-NAVprice)x100%

Average Annual Return = (NAV Return*Series of Income Return)(365.25/n) x 100-100, where n = number of days between beginning and end date.

The 2014 financial year of MDF and MSPF falls on 30 April 2014 and the audited financial statement have yet to be made available as of LDP.

The 2014 financial year of MAU and MUS falls on 31 May 2014 and the audited financial statements have yet to be made available as of LPD.

The 2014 financial year of MSIF, MBLF, MEIF and MRSF falls on 30 June 2014 and the audited financial statements have yet to be made available as of LPD.

The 2014 financial year of MGF, MPF, MAF and MVF falls on 31 July 2014 and the audited financial statements have yet to be made available as of LPD.

The 2014 financial year of MAPR, MHF, MGCF and MIE falls on 31 August 2014 and the audited financial statements have yet to be made available as of LPD.

The 2014 financial year of MPCF, MAFZ and MSAP falls on 30 September 2014 and the audited financial statements have yet to be made available as of LPD.

The 2014 financial year of MBF, MAS and MMMF falls on 31 October 2014 and the audited financial statements have yet to be made available as of LPD.

The 2014 financial year of MAM and MCS falls on 30 November 2014 and the audited financial statements have yet to be made available as of LPD.

Past performance of the Funds is not an indication of the Funds’ future performance.


8. HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS

8.1 Financial Statements Of The Funds


Statement Of Comprehensive Income

1.8.2012 1.8.2011 1.8.2010

to to to

31.7.2013 31.7.2012 31.7.2011

RM RM RM

Investment Income 4,965,973 1,128,885 7,923,387 Total Expenses (625,740) (708,421) (724,970)

Net Income Before Taxation 4,340,233 420,464 7,198,417

Net Income After Taxation 4,310,226 367,511 7,081,111

Statement Of Financial Position

31.7.2013 31.7.2012 31.7.2011

RM RM RM

Current Assets 37,381,449 35,787,689 47,619,718

Total Assets 37,381,449 35,787,689 47,619,718

Total Liabilities (3,058,988) (3,227,056) (5,985,812)

Net Assets Attributable To Unit Holders 34,322,461 32,560,633 41,633,906 Net Asset Value 34,322,461 32,560,633 41,633,906



1.8.2012 1.8.2011 1.8.2010

to to to

31.7.2013 31.7.2012 31.7.2011

RM RM RM

Investment Income 14,189,981 1,408,492 13,115,548 Total Expenses (1,136,876) (1,204,164) (1,506,166)




31.7.2013 31.7.2012 31.7.2011

RM RM RM

Current Assets 85,264,483 58,496,504 89,620,745

Total Assets 85,264,483 58,496,504 89,620,745






1.11.2012 1.11.2011 1.11.2010

to to to

31.10.2013 31.10.2012 31.10.2011

RM RM RM

Investment Income 7,680,303 7,923,392 4,904,201 Total Expenses (1,674,774) (1,176,339) (723,585)

Net Income Before Taxation 6,005,529 6,747,053 4,180,616

Net Income After Taxation 6,005,529 6,747,053 4,180,616


31.10.2013 31.10.2012 31.10.2011

RM RM RMCurrent Assets 147,538,933 180,888,603 108,179,641

Total Assets 147,538,933 180,888,603 108,179,641





1.8.2012 1.8.2011 1.8.2010

to to to

31.7.2013 31.7.2012 31.7.2011

RM RM RM

Shariah-compliant Investment Income 25,023,324 14,896,560 37,710,432 Total Expenses (3,165,901) (4,197,481) (4,550,267)




31.7.2013 31.7.2012 31.7.2011

RM RM RM

Current Assets 196,962,768 195,071,888 287,850,018

Total Assets 196,962,768 195,071,888 287,850,018



Note: The Shariah Adviser confirms that the investment portfolio of Manulife Investment Al-Faid comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




1.11.2012 1.11.2011 1.11.2010

to to to

31.10.2013 31.10.2012 31.10.2011

RM RM RM

Shariah-compliant Investment Income 5,013,619 6,275,258 4,833,555 Total Expenses (1,422,113) (1,017,587) (829,351)




31.10.2013 31.10.2012 31.10.2011

RM RM RM

Current Assets 135,311,130 148,275,862 115,377,802

Total Assets 135,311,130 148,275,862 115,377,802



Note: The Shariah Adviser confirms that the investment portfolio of Manulife Investment As-Saad comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.



1.7.2012 1.7.2011 1.7.2010

to to to

30.6.2013 30.6.2012 30.6.2011

RM RM RM





30.6.2013 30.6.2012 30.6.2011

RM RM RM

Current Assets 74,523,846 82,294,373 73,454,683

Total Assets 74,523,846 82,294,373 73,454,683



Note: The Shariah Adviser confirms that the investment portfolio of Manulife Investment Syariah Index Fund comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




1.8.2012 1.8.2011 1.8.2010

to to to

31.7.2013 31.7.2012 31.7.2011

RM RM RM

Investment Income 12,543,399 402,868 22,019,615 Total Expenses (1,394,178) (1,928,372) (2,290,946)

Net Income/(Loss) Before Taxation 11,149,221 (1,525,504) 19,728,669

Net Income/(Loss) After Taxation 11,035,090 (1,738,383) 19,272,793


31.7.2013 31.7.2012 31.7.2011

RM RM RM

Current Assets 79,416,058 81,415,227 118,243,463

Total Assets 79,416,058 81,415,227 118,243,463





1.7.2012 1.7.2011 1.7.2010

to to to

30.6.2013 30.6.2012 30.6.2011

RM RM RM





30.6.2013 30.6.2012 30.6.2011

RM RM RM

Current Assets 104,954,078 105,007,153 115,800,552

Total Assets 104,954,078 105,007,153 115,800,552






1.7.2012 1.7.2011 1.7.2010

to to to

30.6.2013 30.6.2012 30.6.2011

RM RM RM





30.6.2013 30.6.2012 30.6.2011

RM RM RM

Current Assets 29,832,160 36,274,311 42,068,233

Total Assets 29,832,160 36,274,311 42,068,233





1.7.2012 1.7.2011 1.7.2010

to to to

30.6.2013 30.6.2012 30.6.2011

RM RM RM





30.6.2013 30.6.2012 30.6.2011

RM RM RM

Current Assets 31,140,975 28,025,060 34,126,554

Total Assets 31,140,975 28,025,060 34,126,554






1.11.2012 1.11.2011 1.11.2010

to to to

31.10.2013 31.10.2012 31.10.2011

RM RM RM

Investment Income 5,774,291 5,542,432 7,482,883 Total Expenses (1,032,800) (993,576) (1,284,115)




31.10.2013 31.10.2012 31.10.2011

RM RM RM

Current Assets 184,799,377 166,554,212 163,444,976

Total Assets 184,799,377 166,554,212 163,444,976





1.10.2012 1.10.2011 1.10.2010

to to to

30.9.2013 30.9.2012 30.9.2011

RM RM RM

Investment Income 3,025,215 4,561,626 (5,299,648) Total Expenses (664,204) (623,545) (858,444)

Net Income/(Loss) Before Taxation 2,361,011 3,938,081 (6,158,092)

Net Income/(Loss) After Taxation 2,308,024 3,879,244 (6,238,393)


30.9.2013 30.9.2012 30.9.2011

RM RM RM

Current Assets 26,623,175 28,773,097 30,488,885

Total Assets 26,623,175 28,773,097 30,488,885

Total Liabilities (445,805) (2,409,899) (1,185,286)





1.4.2013 1.4.2012 1.4.2011

to to to

31.3.2014 31.3.2013 31.3.2012

RM RM RM

Investment Income 4,004,258 1,769,786 (1,674,675) Total Expenses (583,163) (506,297) (478,665)

Net Income/(Loss) Before Taxation 3,421,095 1,263,489 (2,153,340)

Net Income/(Loss) After Taxation 3,405,865 1,231,843 (2,170,808)


31.3.2014 31.3.2013 31.3.2012

RM RM RM

Current Assets 23,044,610 21,300,509 19,936,993

Total Assets 23,044,610 21,300,509 19,936,993





1.10.2012 1.10.2011 1.10.2010

to to to

30.9.2013 30.9.2012 30.9.2011

RM RM RM


Net Income Before Taxation 31,419,633 38,357,673 266,107

Net Income/(Loss) After Taxation 31,128,861 38,138,217 (475,378)


30.9.2013 30.9.2012 30.9.2011

RM RM RM

Current Assets 310,582,264 216,122,189 130,284,789

Total Assets 310,582,264 216,122,189 130,284,789



Note: The Shariah Adviser confirms that the investment portfolio of Manulife Investment Al-Fauzan comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




1.5.2012 1.5.2011 1.5.2010

to to to

30.4.2013 30.4.2012 30.4.2011

RM RM RM





30.4.2013 30.4.2012 30.4.2011

RM RM RM

Current Assets 118,321,991 126,953,964 98,315,870

Total Assets 118,321,991 126,953,964 98,315,870





1.6.2012 1.6.2011 1.6.2010

to to to

31.5.2013 31.5.2012 31.5.2011

RM RM RM

Shariah-compliant Investment Income 7,049,906 1,734,598 5,540,585 Total Expenses (953,324) (961,952) (594,396)




31.5.2013 31.5.2012 31.5.2011

RM RM RM

Current Assets 53,981,164 58,045,861 51,173,963

Total Assets 53,981,164 58,045,861 51,173,963



Note: The Shariah Adviser confirms that the investment portfolio of Manulife Investment Al-Umran comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




1.4.2013 1.4.2012 1.4.2011

to to to

31.3.2014 31.3.2013 31.3.2012

RM RM RM





31.3.2014 31.3.2013 31.3.2012

RM RM RM

Current Assets 59,649,829 32,979,020 37,561,758

Total Assets 59,649,829 32,979,020 37,561,758





1.12.2012 1.12.2011 1.12.2010

to to to

30.11.2013 30.11.2012 30.11.2011

RM RM RM

Shariah-compliant Investment Income 3,350,554 2,602,226 1,761,791 Total Expenses (606,163) (471,841) (327,674)




30.11.2013 30.11.2012 30.11.2011

RM RM RM

Current Assets 144,158,644 95,084,439 57,387,063

Total Assets 144,158,644 95,084,439 57,387,063



Note: The Shariah Adviser confirms that the investment portfolio of Manulife Investment Al-Ma’mun comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




1.9.2012 1.9.2011 1.9.2010

to to to

31.8.2013 31.8.2012 31.8.2011

RM RM RM

Investment Income 324,178 1,422,235 1,065,965 Total Expenses (585,878) (174,809) (215,303)

Net (Loss)/Income Before Taxation (261,700) 1,247,426 850,662

Net (Loss)/Income After Taxation (331,695) 1,220,567 815,741


31.8.2013 31.8.2012 31.8.2011

RM RM RM

Current Assets 19,725,051 12,967,490 6,374,464

Total Assets 19,725,051 12,967,490 6,374,464

Total Liabilities (215,100) (41,501) (486,327)




1.9.2012 1.9.2011 1.9.2010

to to to

31.8.2013 31.8.2012 31.8.2011

RM RM RM





31.8.2013 31.8.2012 31.8.2011

RM RM RM

Current Assets 284,847,682 230,897,421 132,503,435

Total Assets 284,847,682 230,897,421 132,503,435






1.12.2012 1.12.2011 1.12.2010

to to to

30.11.2013 30.11.2012 30.11.2011

RM RM RM





30.11.2013 30.11.2012 30.11.2011

RM RM RM

Current Assets 256,470,364 135,538,679 72,721,118

Total Asssets 256,470,364 135,538,679 72,721,118



Note: The Shariah Adviser confirms that the investment portfolio of Manulife Investment-CM Shariah Flexi Fund comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.



1.10.2012 1.10.2011 1.10.2010

to to to

30.9.2013 30.9.2012 30.9.2011

RM RM RM

Shariah-compliant Investment Income (37,268) 1,362,544 (821,741) Total Expenses (319,440) (253,538) (462,173)

Net (Loss)/Income Before Taxation (356,708) 1,109,006 (1,283,914)

Net (Loss)/Income After Taxation (378,613) 1,085,717 (1,321,275)


30.9.2013 30.9.2012 30.9.2011

RM RM RM

Current Assets 7,570,992 9,499,519 10,338,864

Total Assets 7,570,992 9,499,519 10,338,864



Note: The Shariah Adviser confirms that the investment portfolio of Manulife Investment Shariah Asia-Pacific Fund comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




1.9.2012 1.9.2011 1.9.2010

to to to

31.8.2013 31.8.2012 31.8.2011

RM RM RM

Investment Income 2,792,567 (689,374) (1,700,336) Total Expenses (617,284) (444,086) (500,973)

Net Income/(Loss) Before Taxation 2,175,283 (1,133,460) (2,201,309)

Net Income/(Loss) After Taxation 2,142,710 (1,167,086) (2,222,204)


31.8.2013 31.8.2012 31.8.2011

RM RM RM

Current Assets 26,046,386 17,674,658 19,778,340

Total Assets 26,046,386 17,674,658 19,778,340




Statement of Comprehensive Income

1.6.2012 1.6.2011 1.6.2010

to to to

31.5.2013 31.5.2012 31.5.2011

RM RM RM

Investment Income 1,743,515 (1,187,447) 2,197,108 Total Expenses (142,802) (156,088) (141,495)

Net Income/(Loss) Before Taxation 1,600,713 (1,343,535) 2,055,613

Net Income/(Loss) After Taxation 1,600,713 (1,343,535) 2,055,613


31.5.2013 31.5.2012 31.5.2011

RM RM RM

Current Assets 9,576,356 11,294,623 15,365,683

Total Assets 9,576,356 11,294,623 15,365,683






1.9.2012 1.9.2011 21.10.2010

to to to

31.8.2013 31.8.2012 31.8.2011

RM RM RM

Investment Income (735,460) (649,964) 145,209 Total Expenses (135,717) (158,756) (143,241)

Net (Loss)/Income Before Taxation (871,177) (808,720) 1,968

Net (Loss)/Income After Taxation (871,177) (808,720) 1,968


31.8.2013 31.8.2012 31.8.2011RM RM RM

Current Assets 12,433,576 9,068,385 15,565,332

Total Assets 12,433,576 9,068,385 15,565,332

Total Liabilities (566,949) (71,223) (3,372,305)




1.5.2012 20.4.2011

to to

30.4.2013 30.4.2012

RM RM

Shariah-compliant Investment Income 5,751,852 2,313,602 Total Expenses (789,159) (511,225)

Net Income Before Taxation 4,962,693 1,802,377

Net Income After Taxation 4,948,339 1,802,377


30.4.2013 30.4.2012RM RM

Current Assets 36,089,580 30,281,970

Total Assets 36,089,580 30,281,970

Total Liabilities (16,012,533) (1,695,852)

Net Assets Attributable To Unit Holders 20,077,047 28,586,118

Net Asset Value 20,077,047 28,586,118

Note: The Shariah Adviser confirms that the investment portfolio of Manulife Investment Shariah Progress Fund comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.




18.10.2012

to

31.1.2014

RM

Shariah-compliant Investment Income 7,843,825 Total Expenses (922,756)

Net Income Before Taxation 6,921,069

Net Income After Taxation 6,910,268


31.1.2014RM

Current Assets 52,452,112

Total Assets 52,452,112

Total Liabilities (3,920,875)

Net Assets Attributable To Unit Holders 48,531,237 Net Asset Value 48,531,237

Note: The Shariah Adviser confirms that the investment portfolio of Manulife Investment-HW Shariah Flexi Fund comprises securities which have been classified as Shariah-compliant by the SACSC. As for the securities which are not certified by the SACSC, they have reviewed the said securities and opine that these securities are designated as Shariah-compliant.


8.2 Total Annual Expenses Incurred

The following table describes the total annual expenses incurred by the Funds as at the respective Fund’s latest financial year/period:

Fund Name

Management Trustee Fund

Total Annual ExpensesFee Fee Expenses

RM %* RM %* RM %* RM %*

Conventional Funds: Equity

MGF 496,508 1.50 23,170 0.07 106,062 0.32 625,740 1.89

MPF 880,902 1.50 41,109 0.07 214,865 0.37 1,136,876 1.94

MVF 1,074,261 1.50 57,294 0.08 262,623 0.37 1,394,178 1.95

MBLF 1,526,558 1.50 81,416 0.08 199,814 0.20 1,807,788 1.78

MEIF 487,936 1.50 19,518 0.06 111,161 0.34 618,615 1.90

MRSF 394,876 1.50 18,966 0.07 75,996 0.29 489,838 1.86

MPCF 439,901 1.50 20,532 0.07 203,771 0.69 664,204 2.26

MNF 307,231 1.50 18,000 0.09 257,932 1.26 583,163 2.85

MDF 1,993,544 1.50 93,032 0.07 317,433 0.24 2,404,009 1.81

MCF 581,630 1.50 31,020 0.08 1,235,750 3.19 1,848,400 4.77

MAPR 421,812 1.75 21,360 0.09 142,706 0.59 585,878 2.43

MHF 3,690,855 1.50 196,846 0.08 1,536,248 0.62 5,423,949 2.21

MGCF 440,162 1.75 20,763 0.08 156,359 0.62 617,284 2.45

MIE 104,463 1.02 18,000 0.18 13,254 0.13 135,717 1.33

MUS 101,057 1.12 18,000 0.20 23,745 0.26 142,802 1.59

Conventional Fund: Bond

MBF 1,497,951 0.75 139,809 0.07 37,014 0.02 1,674,774 0.84

Conventional Fund: Money Market

MMMF 872,513 0.50 122,152 0.07 38,135 0.02 1,032,800 0.59

Islamic Funds: Equity

MAF 2,620,742 1.50 122,301 0.07 422,858 0.24 3,165,901 1.81

MSIF 1,209,959 1.50 64,531 0.08 195,355 0.24 1,469,845 1.82

MAFZ 4,128,189 1.50 192,649 0.07 692,887 0.25 5,013,725 1.82

MAU 795,706 1.50 37,133 0.07 120,485 0.23 953,324 1.80

MSAP 154,945 1.75 18,000 0.20 146,495 1.65 319,440 3.61

MCS 2,029,035 1.50 108,215 0.08 2,567,971 1.90 4,705,221 3.48

MSPF 427,998 1.50 22,830 0.08 338,331 1.19 789,159 2.77

MHSF 547,590 1.94 31,011 0.11 344,155 1.22 922,756 3.26

Islamic Fund: Bond

MAS 1,261,737 0.75 117,762 0.07 42,614 0.03 1,422,113 0.85

Islamic Fund: Money Market

MAM 495,779 0.50 79,324 0.08 31,060 0.03 606,163 0.61

* Reflected as a percentage of average NAV.For MHSF, the financial period is from 18 October 2012 to 31 January 2014.


8.3 Management Expenses Ratio (MER)

The following table reflects the management expense ratio (MER) of the Funds for the three (3) most recent financial years:

Fund Name Financial Year End 2014 2013 2012 2011Conventional Funds: EquityMGF1 31 July 1.66 1.63 1.63

MPF1 31 July 1.65 1.62 1.60

MVF2 31 July 1.67 1.65 1.64

MBLF2 30 June 1.69 1.71 1.67

MEIF2 30 June 1.66 1.67 1.66

MRSF2 30 June 1.66 1.64 1.64

MPCF2 30 September 1.82 1.87 1.73

MNF6 31 March 1.79 1.65 1.95

MDF2 30 April 1.60 1.60 1.62

MCF6 31 March 1.71 1.63 1.73

MAPR4 31 August 1.97 2.44 2.35

MHF2 31 August 1.62 1.60 1.62

MGCF2 31 August 2.05 2.04 2.06

MIE4 31 August 1.33 1.37 1.16

MUS5 31 May 1.59 1.44 0.84Conventional Fund: BondMBF2 31 October 0.84 0.84 0.85Conventional Fund: Money MarketMMMF2 31 October 0.59 0.59 0.58Islamic Funds: EquityMAF1 31 July 1.64 1.60 1.60

MSIF2 30 June 1.63 1.63 1.63

MAFZ2 30 September 1.62 1.61 1.60

MAU2 31 May 1.64 1.66 1.64

MSAP6 30 September 3.17 2.37 2.18

MCS2 30 November 1.63 1.65 1.65

MSPF3 30 April 1.67 1.98

MHSF 31 January 2.20 Islamic Fund: BondMAS2 31 October 0.85 0.85 0.84Islamic Fund: Money MarketMAM2 30 November 0.61 0.62 0.63

1 The MER for the financial year is higher than the previous financial year mainly due to the decrease in average fund size.2 The MER for the financial year remains consistent with the previous financial year.3 The MER for the financial year is lower than the previous financial year mainly due to the increase in average fund size.4 The MER for the financial year is lower than the previous financial year mainly due to the decrease in expenses incurred.5 The MER for the financial year is higher than the previous financial year mainly due to the decrease in average fund size and higher expenses.6 The MER for the financial year is higher than the previous financial year mainly due to the increase in expenses incurred.

Notes:

The 2014 financial year of MDF and MSPF falls on 30 April 2014 and the audited financial statement have yet to be made available as of LPD.

The 2014 financial year of MAU and MUS falls on 31 May 2014 and the audited financial statements have yet to be made available as of LPD.

The 2014 financial year of MBLF, MSIF, MEIF and MRSF falls on 30 June 2014 and the audited financial statements have yet to be made available as of LPD.

The 2014 financial year of MGF, MPF, MVF and MAF falls on 31 July 2014 and the audited financial statements have yet to be made available as of LPD.

The 2014 financial year of MAPR, MHF, MGCF and MIE falls on 31 August 2014 and the audited financial statements have yet to be made available as of LPD.

The 2014 financial year of MPCF, MAFZ and MSAP falls on 30 September 2014 and the audited financial statements have yet to be made available as of LPD.

The 2014 financial year of MBF, MMMF, MAS and MIE falls on 31 October 2014 and the audited financial statements have yet to be made available as of LPD.

The 2014 financial year of MAM and MCS falls on 30 November 2014 and the audited financial statements have yet to be made available as of LPD.

The audited financial statements of the Funds are disclosed in the Funds’ annual report and the annual report is available upon request.

Past performance of the Funds is not an indication of the Funds’ future performance


9. FEES, CHARGES AND EXPENSES

9.1 Charges

9.1.1 Sales charge

The maximum sales charge levied on the purchase of units of the Fund from each distribution channel is as follows:

CONVENTIONAL FUNDSASSET CLASS EQUITYFUND NO. 1 2 7 8 9 10 12 13 15 17 19 20 23 24 25FUND NAME MGF MPF MVF MBLF MEIF MRSF MPCF MNF MDF MCF MAPR MHF MGCF MUS MIESales charge per unitAgentsThe ManagerEPF

Upto6.50%ofNAVperunit(forMAPR,upto5%ofNAVperunit)Upto6.50%ofNAVperunit(forMAPR,upto5%ofNAVperunit)Upto3%ofNAVperunit(applicabletoEPF-MISFunds)

CONVENTIONAL FUNDS

ISLAMIC FUNDS



MARKETFUND NO. 3 11 4 6 14 16 21 22 26 27 5 18FUND NAME MBF MMMF MAF MSIF MAFZ MAU MCS MSAP MSPF MHSF MAS MAMSales charge per unitAgents

The Manager

EPF

Up to 0.25%of NAV per unit



NIL

NIL

NIL

Up to 6.5%ofNAVper unit (forMHSF, up to 5.5%ofNAVperunit)

Up to 6.5%ofNAVper unit (forMHSF, up to 5.5%ofNAVperunit)

Upto3%ofNAVperunit(applicabletoEPF-MISFunds)




NIL

NIL

NIL

The charges are negotiable.

The Manager may at its discretion charge a lower sales charge, subject to qualifying criteria.

All charges will be rounded up to two (2) decimal places and will be retained by the Manager.

Commissions Payable

The sales and other commissions payable to the licensed sales representatives and/or unit trust advisers of the Manager are not paid from the Funds but from the sales charge and/or management fee retained by the Manager.

9.1.2 Repurchase charge

There is no repurchase charge levied on the repurchase of units.


9.2 Fees And Expenses

9.2.1 Annual Management Fee

For managing the Funds, the Manager is entitled to an annual management fee. Annual management fee for the Funds are as follows:


EQUITYFUND NO. 1 2 7 8 9 10 12 13 15 17 19 20 23 24 25FUND NAME MGF MPF MVF MBLF MEIF MRSF MPCF MNF MDF MCF MAPR MHF MGCF MUS MIEAnnual Management Fee

Upto1.5%ofNAVperannum Up to 1.75%of NAV per annum




ASSET CLASS


BONDMONEY


MARKETFUND NO. 3 11 4 6 14 16 21 26 27 22 5 18FUND NAME MBF MMMF MAF MSIF MAFZ MAU MCS MSPF MHSF MSAP MAS MAMAnnual Management Fee



Upto1.5%ofNAVperannum Up to 1.75%of NAV per annum



Calculation of Management Fee For All The Funds Except MUS and MIE

Illustration

Assuming that the NAV (before deducting the management fee and trustee fee) at the end of the Business Day for the Fund is RM200,000,000 and themanagement fee accrueddaily is 1.5%of theNAV (beforededucting themanagement fee and trustee fee), then the calculation of the management fee is as follows:

NAV (before deducting the management fee and trustee fee) RM200,000,000

Total number of days 365 days

Rate 1.5%Accrued management fee(on daily basis)

(RM200,000,000x1.5%)/365= RM8,219.18

Calculation of Management Fee For MUS and MIE

Illustration

An example of allocation of a feeder fund’s fee is as follows:

Assuming that the NAV (before deducting the management fee and trustee fee) at the end of the Business Day for the Fund is RM200,000,000, theTargetFund’smanagementfeeis0.70%p.a.andthemanagementfeefortheFundaccrueddailyis1.8%p.a.oftheNAV(beforedeductingthe management fee and trustee fee), then the calculation of the management fee is as follows:

RMInvestment in the Target Fund 190,000,000Others (liquid assets of receivables less payables) 10,000,000NAV (before deducting the management fee and trustee fee) 200,000,000



Rate 1.8%p.a.Accrued Management Fee(on daily basis)

(RM200,000,000x1.8%)/365= RM9,863.01


The details on the apportionment of the management fee between the Target Fund and the Fund are shown below:

Charged by the Target Fund (a)(RM190,000,000x0.70%)/365= RM3,643.83

Charged by the Fund (b)(RM190,000,000x1.10%)/365= RM5,726.03

(c)(RM10,000,000x1.8%)/365= RM493.15

(d) Total (b) + (c)= RM6,219.18

Total (a) + (d) = RM9,863.01

9.2.2 Annual Trustee Fee

For performing its functions as Trustee to the Funds, the Trustee will be entitled to an annual trustee fee (which includes local custody fee). Annual trustee fee for the Funds are as follows:


EQUITYFUND NO. 1 2 7 8 9 10 12 13 15 17 19 20 23 24 25FUND NAME MGF MPF MVF MBLF MEIF MRSF MPCF MNF MDF MCF MAPR MHF MGCF MUS MIEAnnual Trustee Fee

Upto0.07%of NAV or a minimum of RM18,000 p.a, whichever is higher

Upto0.08%ofNAV

Up to 0.06%of NAV

Upto0.07%ofNAVoraminimum of RM18,000 p.a, whichever is higher

Upto0.08%ofNAVoraminimumofRM18,000p.a, whichever is higher

ASSET CLASS


BONDMONEY


MARKETFUND NO. 3 11 4 6 14 16 27 21 22 26 5 18FUND NAME MBF MMMF MAF MSIF MAFZ MAU MHSF MCS MSAP MSPF MAS MAMAnnual Trustee Fee

Upto0.07%ofNAV or a minimum of RM18,000 p.a, whichever is higher

Up to 0.07%ofNAV or a minimum of RM18,000 p.a, whichever is higher






Notes:

Annual trustee fee for MRSF, MMMF, MNF and MAFZ

(i) IftheFundsinvestlocally,onlyupto0.07%ofNAVsubjecttominimumfeeofRM18,000perannum;or(ii) IftheFundsinvestbothlocallyandoverseas,upto0.07%forthelocalNetAsset(excludingforeigncustodianfeeandcharges)andupto

0.09%fortheForeignNetAssets(excludingforeigncustodianfee).ThisissubjecttoaminimumfeeofRM18,000perannum.

Annual trustee fee for MPCF, MDF, MAU, MCF, MAM, MAPR, MHF, MCS, MSAP, MGCF, MUS, MIE, MSPF and MHSF are excluding foreign custodian fees and charges.

Illustration

Assuming that the NAV (before deducting the management fee and trustee fee) at the end of the Business Day for MNF is RM200,000,000 and thetrusteefeeaccrueddailyis0.07%oftheNAV(beforedeductingthemanagementfeeandtrusteefee),thenthecalculationofthetrusteefeeisas follows:

Calculation of Trustee Fee



Rate 0.07%Accrued trustee fee(on daily basis)

(RM200,000,000x0.07%)/365= RM383.56


9.2.3 Expenses of the Funds

In administering the Funds, only fees and costs directly incurred will be paid out of the Funds. These would include (but not limited to) the following:

● Commissions/feespaidtobrokers/dealersineffectingdealingsintheinvestmentsoftheFunds;● Charges/feespaidtosub-custodians(wherethecustodialfunctionisdelegatedbytheTrustee);● TaxandotherdutieschargedontheFundsbythegovernmentandotherauthorities;● FeesandotherexpensesproperlyincurredbytheauditorappointedfortheFunds;● FeesforthevaluationofanyinvestmentsoftheFundsbyindependentvaluersforthebenefitoftheFunds;● CostsincurredforthemodificationoftheDeedotherthanthoseforthebenefitoftheManagerorTrustee;● CostsincurredforanymeetingofUnitHoldersotherthanthoseconvenedby,orforthebenefitof,theManagerorTrustee;and● CostsofprintinganddispatchingtoUnitHolderstheinterim/annualreports,taxvouchers,distributionstatements,noticesofmeetingsof

Unit Holders, and such other similar costs as may be approved by the Trustee.

All formation and issue expenses of the Funds pursuant to this Master Prospectus will be borne by the Manager.

9.3 Switching And Transfer

The Manager charges switching fee as set out below:

FOR ALL FUNDS

To recipient Funds

Switching from

Equity/Balanced/Mixed Assets Funds

(except MHSF)

BondFunds

Money MarketFunds


MHSF

Equity/Balanced/Mixed Assets Funds (except MHSF)

RM25 ^ RM25 ^ RM25 ^ RM25 ^ RM25^

Bond/Money Market Funds – loaded units*

RM25 ^ RM25 ^ RM25 ^ RM25 ^ RM25^

Bond/Money Market Funds – low-load units **

Sales charge RM25 ^ RM25 ^ Sales charge Sales charge

Money Market Funds – no-load units***

Sales charge Sales charge RM25 ^ Sales charge Sales charge





N/A 1%ofamountswitched if switched within 30 days of purchase

MHSF 1%ofamountswitched if switched within 90 days of purchase




N/A

Notes: * Loaded units are units that have incurred a sales charge of 5.00% or more at the point of purchase and a sales charge of 3.00% for investment through EPF.** Low-load units are units that have incurred a sales charge of 0.25% or less at the point of purchase.*** No-load units are units that have not incurred any sales charge at the point of purchase.^ No charge for the first six switches per calendar year for each Unit Holder’s account. The same applies to online switching but the amount is reduced

Unit Holders may transfer their units within a fund by paying a fee of RM3.00 per transfer.

Switching from a Shariah-compliant fund to a conventional fund is discouraged especially for Muslim Unit Holders.

9.4 Autodebit / Standing Instruction Facilities

Autodebit / standing instruction facilities are available at selected banks and handling charges will be borne by the Unit Holders. Please contact our Customer Service for more details.

9.5 Policy On Stockbroking Rebates And Soft Commissions

Goods and services (soft commissions) may be retained by the Manager or its delegate if the goods and services are of demonstrable benefits to Unit Holders, and dealings with the brokers/dealers are executed on terms which are the best available to the Funds.

The Manager and its delegate have subscribed but are not limited to the following goods and services which are demonstrably beneficial to Unit Holders such as Bloomberg, Reuters, Multex System, Thomson Financial, Nelson, IBES Earning Estimates, Portfolio Management System, Performance Analysis Tool and Investment Periodicals.

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


10. TRANSACTION INFORMATION

10.1 Determination Of Prices

10.1.1 Valuation Point

Valuation Point refers to such a time(s) on a Business Day as may be decided by the Manager wherein the NAV of the Fund is calculated.(Please refer to Section 5.31 for details)

10.1.2 Forward Pricing

The selling and repurchase transactions are traded at forward prices. Units would be created/redeemed on the NAV per unit as at the end of the Business Day on which the requests for purchase or redemption are received or deemed to have been received by the Manager at or before 3.00 p.m. (4.00 p.m. for online switching and online payment) and at 11.30 a.m. on a Bursa Malaysia half-day trading day. Any application received after this cut-off time would be considered as being transacted on the next Business Day.

10.1.3 NAV Per Unit

The NAV per unit is computed by dividing the NAV of the Fund with the total number of Units in Circulation, at the Valuation Point.

Illustration

Assuming that the total NAV of the Fund for a particular Business Day is RM50,000,000, then the computation of NAV per unit is as follows:

Total NAV RM50,000,000.00

Units in Circulation 100,000,000.00

NAV per unit RM0.5000

10.1.4 Computation Of Prices

Under the single pricing regime, the selling and repurchase units are transacted at a single price, which is the NAV per unit of the Fund. Sales charge and repurchase charge (if any) that are to be levied on the purchase and sale of units by investors will not be incorporated in the quoted prices of the Fund. These charges will be computed and charged separately.

10.1.5 Computation Of Sales Charge

UnitsaretransactedatNAVperunitoftheFund.UponpurchaseofunitsbytheUnitHolders,asaleschargeofupto6.50%oftheNAVperunitis levied.

Illustration

AssumingthataUnitHolderinvestsRM10,000.00intheFundatNAVperunitofRM0.5000andthesaleschargesis6.50%oftheNAVperunit.The total sales charge payable is as follows:

Amount invested by Unit Holder RM10,000.00

Number of units purchased RM10,000.00 / RM0.5000= 20,000 units

Salescharge:6.50%onNAVperunit 6.50%×RM0.5000×20,000units= RM650.00

Therefore, the total amount payable by the Unit Holder = RM10,000.00 + RM650.00 = RM10,650.00

10.1.6 Computation Of Repurchase Proceeds

The Manager has no intention to impose any repurchase charge during the duration of this Master Prospectus. Therefore, the Repurchase Price per unit of the Fund is equivalent to its NAV per unit as illustrated in Section 10.1.3.

10.2 Information On Purchasing And Repurchase Units

Units can be purchased and redeemed by completing the ‘Fund Application Form’ or ‘Repurchase/Switching Form’ which can be obtained from the Manager’s office, any of the Manager’s branches or service centres during office hours. Investors can call the Manager on the Customer Service Hotline to request for the ‘Fund Application Form’ or ‘Repurchase/Switching Form’ to be posted or faxed to them. The completed ‘Fund Application Form’ accompanied by the necessary remittance made out in a cheque in favour of ’MANULIFE ASSET MANAGEMENT SERVICES BERHAD’ can then be forwarded to the Manager by hand at Manulife Asset Management Services Berhad, 10th Floor, No. 566, Jalan Ipoh, 51200 Kuala Lumpur, branch offices or service centres of the Manager during business hours.

The Manager also maintains a tied agency force that markets its unit trust funds to potential investors. This agency force is duly registered with the Federation of Investment Managers Malaysia (FiMM).


10.2.1 Opening An Account And Making An Investment

Obtain the ‘Fund Application Form’ that comes together with the Master Prospectus. Read and understand the contents of the Master Prospectus before completing the ‘Fund Application Form’. For an initial investment*, the minimum amount required is RM1,000.00 (RM500 for MVF, MBLF and MEIF). Thereafter, the subsequent minimum investment* will be RM500.00 (RM50 for MVF, MBLF and MEIF).*Subject to change at the Manager’s discretion.

10.2.2 Processing Of Application

A valid application or additional investment received before the cut-off time on any Business Day will be processed upon clearance of payment using Forward Pricing. If the said application is received after the cut-off time or on a non-Business Day, the application will be processed on the next Business Day. The Trustee’s obligation in respect of monies paid by an investor for the application of units arises when the monies are received in the relevant account of the Trustee for the Funds.

Office Hours 8.30 a.m. to 5.30 p.m.

Business Days Monday to Friday, or Bursa Malaysia trading day

Cut-off time for transactions - walk-in

- online switching- online payment

3.00 p.m. or any other time that may be determined by the Manager and 11.30 a.m. on a Bursa Malaysia half-day trading day.4.00 p.m. and 11.30 a.m. on a Bursa Malaysia half-day trading day.4.00 p.m. and 11.30 a.m. on a Bursa Malaysia half-day trading day.

10.2.3 Cooling-Off Period

The cooling-off period is only applicable to any person investing for the first time in any unit trust funds managed by the Manager and excludes corporations/institutions, staff of the Manager and persons registered to deal in unit trusts. A Unit Holder has the right, within six (6) Business Days from the day of the receipt by the Manager of his/her application form, to call for a withdrawal of his/her investment. A full refund of the money initially invested will be refunded to the Unit Holder within 10 calendar days from the receipt of the application for cooling-off by the Manager, i.e. the total sum of:

(a) theNAVperunitonthedaytheunitswerefirstpurchased;and(b) the sales charge per unit originally imposed on the day the units were purchased.

Provided that, withdrawal proceeds will only be paid to the Unit Holder once the Manager has received the cleared payments for the original investment.

In the case of an investment via EPF-MIS, the cooling-off period is subject to EPF’s terms and conditions.

10.2.4 Redeeming An Investment

A Unit Holder may redeem part or all of his/her investment at any time by completing a ‘Repurchase/Switching Form’ which is available during office hours at the office of the Manager, its branches and service centres. The minimum redemption amount is 500 units. There is no limit to the frequency of redemptions as long as the Unit Holder maintains a minimum holding or balance in his/her account of 1,000 units (100 units for MVF, MBLF and MEIF). The redemption proceeds will be paid within ten (10) calendar days from the date on which the request to repurchase is received by the Manager and the Trustee’s obligation is discharged once it has paid the amount to the Manager.

The Manager’s Repurchase Price per unit of the Fund will be equal to NAV per unit of the Fund as at the next Valuation Point after the request to repurchase is received by the Manager (‘Forward Pricing’).

There is no repurchase charge levied on the repurchase of units.

Notwithstanding the above, for MVF, MEIF, MBLF and MSIF, the Manager has obtained the SC’s approval to pay redemption proceeds within fourteen(14)daysifthevalueofredemption,onanyoneBusinessDayinrespectofanyFund,equalsorexceeds20%ofthatFund’sNAV.Pleaserefer to Section 19.1 on Variations/Exemptions from the Guidelines for details of the special mechanism for redemption.

10.2.5 Switching And Transfer

Switching

Switching is a facility which enables a Unit Holder to convert units of a particular Fund to the units of other Funds managed by the Manager. A Unit Holder may switch part or all of his/her investment at any time by completing a ‘Repurchase/Switching Form’ which is available during office hours at the office of the Manager, its branches and service centres. The minimum switch quantity is 1,000 units. The switch will be effected subject to the minimum balance held by the Unit Holder and the terms and conditions applicable for the respective Fund(s).

Please refer to section 9.3 for details on the conditions for switching of units.

Transfer

A Unit Holder may transfer part or all of his/her units in a Fund to another person by completing a ‘Transfer Form’. The transfer will be effected subject to the minimum balance and the terms and conditions applicable for the respective Fund(s). The minimum transfer quantity is 1,000 units.


10.3 Distribution Of Income And Reinvestment Policy

Consistent with the objective of the Funds, distribution if any, will be credited into the respective Unit Holders’ accounts at no cost to the Unit Holders, by way of reinvestment based on the NAV per unit as at the Valuation Point immediately following the distribution date.

For distribution cheques, if any, which are left uncashed by Unit Holders after expiry of the six months cheque validity period (from the date of the distribution cheque), the Manager shall reinvest the distributions by purchasing additional units of the Fund on their behalf. The reinvestment will be executed based on the NAV per unit of the Fund on the closing of the fifteenth day of the following month or such earlier date as may be determined by the Manager.

10.4 Policy And Procedures On Unclaimed Monies

Any monies payable to Unit Holders which remain unclaimed after one year from the date of payment will be handled by the Manager in accordance with the requirements of the Unclaimed Monies Act, 1965.

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


11. MANAGEMENT AND ADMINISTRATION OF THE FUNDS

11.1 Background Of The Manager

The Manager, Manulife Asset Management Services Berhad, was incorporated in Malaysia on 30 September 2008 under the Companies Act, 1965. The Manager commenced operations as a unit trust management company in late 2009.

In 2012, pursuant to the rationalization and re-organization of the asset and unit trust management businesses of the Manulife group of companies where the business and assets of Manulife Asset Management (Malaysia) Sdn Bhd (“MAMM”) were transferred to the Manager, the Manager varied its Capital Markets and Services Licence for the regulated activity of “dealing in securities restricted to unit trust” to allow them to also conduct the regulated activity of “fund management” under the Act. With effect from 7 October 2012, the Manager is the holder of a Capital Markets Services Licence for the regulated activities of fund management dealing in securities restricted to unit trusts and dealing in private retirement scheme issued under the Act.

On 13 November 2013, Manulife Holdings Berhad entered into an agreement to fully acquire MAAKL Mutual Bhd. Following the completion of the acquisition by Manulife Holdings Berhad of the entire share capital of MAAKL Mutual Bhd on 31 December 2013, MAAKL Mutual Bhd became a wholly owned subsidiary of Manulife Holdings Berhad. Pursuant to a vesting order granted by the High Court of Malaya, the business and assets of MAAKL Mutual Bhd has been merged with Manulife Asset Management Services Berhad as at the date of this Master Prospectus.

As at 30 April 2014, the Manager manages 9 unit trust funds, 2 private retirement schemes with 3 funds under each scheme, as well as private mandates, while MAAKL Mutual Bhd manages 27 unit trust funds. The aggregate asset under management of both entities is approximately RM8.28 billion, with a combined staff strength of 149. The merged entity has more than 11 years of experience in the unit trust industry.

The investment professionals of the Manager form part of the Manulife group of companies’ asset management global network of investment professionals with more than 300 fund managers, analysts and traders who together provide comprehensive asset management solutions.

11.2 Role Of The Manager

TheManagerisresponsiblefortheoperationandadministrationoftheFund(s);investmentmanagementoftheFund(s)inaccordancewithamongothers,theprovisionsoftheapplicableDeedandtheManager’sinternalpoliciesandfortheimplementationoftheinvestmentstrategy;marketingof the Fund(s); servicingUnitHolders’ needs; keeping proper administrative records ofUnitHolders and accounting records of the Fund;ensuring that theFund/Units are correctlypriced; ensuring compliancewith stringent internal procedures andguidelinesof relevant authoritiesand relevant laws.

11.3 Summary Of Financial Position Of The Manager

The following is a summary of the past performance of the Manager based on audited accounts for the last three (3) years.

Financial Year Ended 31 December2013(RM)

2012(RM)

2011(RM)

TurnoverProfit/(Loss) Before TaxProfit/(Loss) After TaxIssued/Paid-up CapitalShareholders’ Funds

13,339,062(10,988,166)(10,988,166)47,000,00025,139,758

5,502,428(6,762,495)(6,762,495) 47,000,00036,127,924

1,563,039(1,947,191) (2,368,103) 17,000,000 12,890,419

11.4 Functions Of The Board Of Directors

The Directors, who meet at least once every quarter, are mainly responsible for the overall development of the Manager. Their functions include setting policies and guidelines of the Manager, overseeing activities of the Manager and reviewing the performance, financial and audit reports of the Manager.

In exercising their powers, the Directors will act honestly with diligence and with reasonable skill. Each Director has a fiduciary duty to the Manager and must not allow his or personal interests to conflict with that duty. Apart from the Manager’s Internal Code of Ethics and Conduct, the Directors have to comply with statutory duties set out in the Companies Act 1965 and other relevant legislations.

11.5 The Board Of Directors

The Board of Directors of the Manager consists of six (6) members of whom three (3) of them are independent. The following is the profile of each of the Directors:

Independent Directors

Datuk Seri Panglima Mohd Annuar bin Zaini (Independent Director) was appointed to the Board on 5 July 2011. He holds a Master of Arts in Law & Diplomacy from The Fletcher School of Laws & Diplomacy, Tufts University, USA and a Bachelor of Arts with honours in Economics from University Kebangsaan Malaysia.

He began his career as an Administrative and Diplomatic Officer in 1977. He served the Malaysian government at various ministries and departments and also the Perak State government until he chose to take an optional retirement from the government service in 1999.


He was the Chairman of Malaysian National News Agency (BERNAMA) from February 2004 to January 2010. In February 2004, HRH The Sultan of Perak consented his appointment as Member of the Council of Elders to HRH Sultan of Perak. He was an Advisor and the Chief Executive of Northern Corridor Implementation Authority from 2007 to 2009. He is a Member of the Perak Council of Islamic Religion and Malay Customs and the Board Member to the PKEINPK Sdn Bhd. He is also a Distinguished Fellow to the Institute of Strategic and International Studies (ISIS) Malaysia, Fellow Institute of Public Safety of Malaysia and Adjunct Professor of Northern Corridor Economic Region Research Centre, Universiti Utara Malaysia and Honorary Consultant to Office of Vice Chancellor, Universiti Teknologi Mara.

He sits on the Board of Dijaya Corporation Berhad and a few private limited companies.

Dato’ Md Agil bin Mohd Natt (Independent Director) was appointed to the Board on 29 June 2012. He holds a Bachelor of Science in Economics (Hons) degree from Brunel University, London and a Master of Science in Finance degree from the CASS Business School, London. He also attended the Advanced Management Program, Harvard Business School in the United States of America.

He started his career in Corporate Finance with Bumiputra Merchant Bankers Berhad in 1977 before serving as Senior General Manager (Finance) at Island & Peninsular Bhd in 1982. He was also the Regional Chief Representative of Kleinwort Benson Ltd before joining Malayan Banking Berhad (Maybank). Dato’ Agil Natt served the Maybank Group in various capacities including as Senior General Manager, Corporate Banking, Chief Executive Officer of Aseambankers Malaysia Berhad (now known as Maybank Investment Bank Berhad) and Executive Director/Deputy President of Maybank.

From 2006 until his retirement in 2011, Dato’Agil Natt served as President and Chief Executive Officer of the International Centre for Education in Islamic Finance (INCEIF), The Global University of Islamic Finance, set up by Bank Negara Malaysia.

He currently sits on the Boards of Cagamas Berhad, Export-Import Bank of Malaysia Bhd, Sogo (KL) Department Store Sdn Bhd, Sogo (KL) Sdn Bhd, Credit Guarantee Corporation Malaysia Berhad and Manulife Insurance Berhad. He is also a Member of the Board of Trustees of Yayasan Tun Abdul Razak.

Mr Edmond Cheah Swee Leng, (Independent Director) BA (Hons), A.C.A (England & Wales), CA (M), CFP, was appointed on 1 September 2014 and is an Investment Committee member of the Manager. Mr Cheah is a member of the Institute of Chartered Accountants of England and Wales and a Chartered Accountant of the Malaysian Institute of Accountants. His professional experience has been in the fields of audit, merchant banking, corporate and financial advising, portfolio and investment management and unit trust management. He was previously the Chief Executive Officer cum Executive Director and Investment Committee Member of Public Mutual Berhad, the largest private unit trust company in Malaysia. He was also formerly the President and founder member of the Financial Planning Association of Malaysia (FPAM), the Vice President and council member of the Federation of Investment Managers Malaysia (FiMM), a former Task Force Member on Islamic Finance for Labuan Offshore Financial Services Authority (LOFSA), a former member on the Securities Market Consultative Panel in Bursa Malaysia and currently the Treasurer for the Society for the Prevention of Cruelty to Animals (SPCA). He co-authored a financial planning book entitled “Financial Freedom – Your Guide to Lifetime Financial Planning” and a second book entitled “Financial Freedom – Through Malaysian Equities and Unit Trusts”. He also sits on the boards of several public companies.

Non-Independent Directors

Mr. Michael Floyd Dommermuth (Non-Independent Director) was appointed to the Board on 29 June 2012. He holds a Bachelor of Science in Mathematics and Management Science from Carnegie Mellon University, Pennsylvania, USA.

Mr Dommermuth is the President of Manulife Asset Management, Asia. He is a member of Manulife Asset Management’s Executive Committee and Manulife’s Asia Division Executive Committee. He joined the firm in 2001 and is located in Hong Kong.

Mr Dommermuth oversees all investment activities across Asia and Japan. He is responsible for managing Manulife’s rapidly growing assets within the region and ensuring the company’s investments complement the regulatory landscape. He is also responsible for establishing and executing business strategy, business development, regulatory and business risk management, client relationship management and local operational and managerial support for Asia.

Prior to his current appointment, Mr Dommermuth headed Manulife’s investment operations in Asia, ex-Hong Kong. From 2001 to 2004, he headed the company’s institutional spread-based business product development efforts based in Boston. Before joining Manulife in 2001, Michael was head of various units within a global rating agency, including leveraged finance and asset-backed securities based in New York, London and Sydney. He has a total of 22 years capital market experience.

Mr. Chong Soon Min (Jason) (Managing Director/ Chief Investment Officer/ Non-Independent Executive Director) was appointed to the Board on 21 May 2012. He was previously the Chief Investment Officer of UOB-OSK Asset Management Sdn Bhd, and has been responsible for the management of Malaysian equity as well as regional equity and fixed income funds, totaling about RM5 billion (approx. US$1.6 billion). Before joining the fund management industry, he spent 14 years as an investment analyst covering both local and foreign equities. His last posting was as the Head of Research at Merrill Lynch Malaysia/Smith Zain Securities Sdn Bhd.

He holds a Bachelor of Science degree in Economics and Finance (Honors) from the University of Southern New Hampshire, USA and a Capital Markets and Services Representative’s Licence in fund management.

Mr Wong Boon Choy, (Chief Executive Officer/ Non-Independent Executive Director) CA(M), CPA, CFP, was appointed as the Chief Executive Officer and Executive Director of Manulife Asset Management Services Berhad on 1 September 2014. Prior to his current appointment, he was the Chief Executive Officer and Executive Director of MAAKL Mutual Bhd from May 2004 to August 2014. He also served as the Senior General Manager of Public Mutual (formerly known as KL Mutual) in 1988 to 2004. Mr Wong has accumulated more than 20 years of experience in the Malaysian unit trust industry. Before joining KL Mutual, he was with an international accounting firm for eight years.

Mr Wong is a founder member and former President of the Financial Planning Association of Malaysia (FPAM). He was also involved in establishing the Federation of Investment Managers Malaysia when he was appointed the Founding Secretary.


A strong believer in financial planning, he co-authored a financial planning book entitled “Financial Freedom – Your Guide To Lifetime Financial Planning” and a second book entitled “Financial Freedom – Through Malaysian Equities and Unit Trusts”. In June 2008, Mr Wong co-authored a third book which revolves around the themes of health and wealth entitled “CHOICES – Live Well and Don’t Die Broke”.

11.6 Role Of The Investment Committee

The duties and responsibilities of the Investment Committee are as follows:(a) SelectingappropriatestrategiestoachievetheproperperformanceoftheFundsinaccordancewiththefundmanagementpolicies;(b) EnsuringthatthestrategiesselectedareproperlyandefficientlyimplementedbytheManager;and(c) Actively monitor, measure and evaluate the fund management performance of the Manager/Fund Manager.

The Investment Committee meets at least 4 times a year.

11.7 The Investment Committee

The Investment Committee consists of five (5) members as follows:

Independent Members

Dato’ Md Agil Bin Mohd Natt(as aforementioned in Section 11.5)

Mr Edmond Cheah Swee Leng(as aforementioned in Section 11.5)

Dato’ Dr Zaha Rina ZahariDato’ Dr Zaha Rina Zahari received her BA (Hons) Accounting and Finance from Leeds, UK, her MBA from Hull UK and holds a Doctorate in Business Administration, focusing on capital markets research and specializing in derivatives, Hull UK, International Centre for Leadership in Finance (ICLIF), Harvard Business School and Columbia Business School in July 2005.

Dato’ Dr Zaha Rina Zahari was a Consultant to Financial Technologies Middle East based in Bahrain for the set up of Bahrain Financial Exchange (BFX) launched in January 2009. Prior to this Dato’ Dr Zaha Rina Zahari was with Royal Bank of Scotland Group in Singapore from August 2007 to May 2008. Dato’ Dr Zaha Rina Zahari has more than 20 years experience in the financial, commodities and securities industry and the development of the Malaysian Capital Market, which includes managing a futures broking company, and was Chief Executive Officer of RHB Securities Sdn Bhd. She has previous Board appointments at the Commodity and Monetary Exchange of Malaysia (“COMMEX”) from 1993 to 1996, then as the Chief Operating Officer (“COO”) of Kuala Lumpur Options and Financial Futures Exchange (“KLOFFE”) in 2001.

Dato’ Dr Zaha Rina Zahari was then appointed Head of Exchanges, managing the operations of KLSE, MESDAQ, MDEX and Labuan International Financial Exchanges (LFX) in September 2003 prior to the KLSE’s (now known as Bursa Malaysia Securities Bhd) demutualization. Dato’ Dr Zaha Rina Zahari is also a regular speaker at many international conferences and forums.

Dato’ Dr Zaha Rina Zahari is also a director of Hong Leong Industries Bhd, Pacific & Orient Berhad and Tanah Makmur Berhad. She also holds directorships in several private limited companies. Dato’ Dr Zaha Rina Zahari is a Vice-President of Persatuan Chopin Malaysia and Divemaster with National Association of Underwater Instructors (NAUI). She was a member of Global Board of Advisers for XBRL until 2009 and was also on the Board of Trustee for Malaysian AIDS Foundation until May 2010.

Non- Independent Members

Mr. Alex Wong Chi KitMr. Alex Wong holds a first class honor degree in Actuarial Science from the University of Hong Kong and he is also a Fellow of the Society of Actuaries. He was a member of actuarial sub-committee of Life Insurance Association in Singapore. Alex Wong has more than 14 years of experience in actuarial profession with Asian market knowledge especially in life insurance, annuity and wealth management business. He has joined Manulife Financial since 1999 and held various roles in Manulife Financial’s offices in Hong Kong, Singapore and Malaysia.

Mr Wong Boon Choy(as aforementioned in Section 11.5)

11.8 Key Personnel

Mr Wong Boon Choy (Chief Executive Officer/Executive Director)(as aforementioned in Section 11.5)

Mr. Chong Soon Min (Jason) (Managing Director/Chief Investment Officer)(as aforementioned in Section 11.5)

Mr Patrick Nge Koh Nguong, CFP, was appointed as the Chief Operating Officer of Manulife Asset Management Services Berhad on 1 September 2014. Prior to his current appointment, he was the Senior General Manager of MAAKL Mutual Bhd since 2004 and was subsequently promoted to the position of Chief Operating Officer in 2011. He graduated from Bristol University, England, in Economics and Accounting and obtained his training in England and Malaysia with international accounting firms for about four years. Before joining MAAKL Mutual, he was the General Manager (Sales & Training) of Public Mutual (formerly known as KL Mutual). He joined KL Mutual as an agent in 1986 and was promoted to Group Agency Manager. He became the Branch Manager of Kota Kinabalu Branch in 1991. He was subsequently


promoted to Regional Sales Manager for East Malaysia in 1993. He assumed the position of Senior Manager – Sales and Marketing in 1994, and later, as Senior Manager – Sales and Training before being promoted as General Manager in 1999. He was responsible for Public Mutual’s national sales operations and distribution, and agency force training and development programmes.

Mr Soon Chen Loy, CFP, is the Assistant Vice President for Business Development of the Manager. He graduated from University of Arkansas, the USA, with a Bachelor of Science (Hons) in Business Administration. He has more than 18 years of working experience in financial services and management consulting. Prior to joining the Manager, he was the Assistant Vice President, Business Development of MAAKL Mutual Bhd and prior to that he was attached with Pacific Mutual Fund Bhd as the person leading the agency force and promotional activities. He is responsible for planning, developing and implementing marketing plans and strategies.

Mr Gan Boon Seng is the Assistant Vice President for Direct Corporate Sales of the Manager and focuses on corporate and institutional investors. Mr Gan holds a Bachelor of Business (Marketing) Degree from University of Southern Queensland, Australia, and an MBA (Marketing) from Charles Sturt University, Australia. Prior to joining the Manager, he was the Assistant Vice President, Direct Corporate Sales of MAAKL Mutual Bhd and prior to that the Senior Manager, Business Development, of MBf Unit Trust Management Bhd. He has more than 20 years of working experience in the financial industry.

Ms Sabrina Ang Bee Lin is the Head of Institutional Partnerships of the Manager. She is responsible for areas of sales and distribution with Institutional Unit Trust Advisors (IUTA). She has more than 12 years of experience in wealth management, covering sales and marketing. Prior to joining the Manager, she was the Head of IUTA of one of the top asset management companies since 2004. She holds a Bachelor of Business Administration (Hons) majoring in Marketing from Anglia Ruskin University, UK.

Mr Bor Ngee Wha, CPA, CFP, is the Chief Officer – Product Development and Fund Accounting of the Manager. He oversees Product and Fund Accounting Department and is responsible for product research and development as well as fund accounting and valuation matters of the company. Mr Bor was the Chief Financial Officer – Finance & Product of MAAKL Mutual Bhd from 2005 prior to his current appointment. Mr Bor graduated from City University, London, with a Bachelor (Hons) Degree in Economics and Accountancy. He is a qualified accountant with membership in the Malaysian Institute of Certified Public Accountants (MICPA) and also a certified member of the Financial Planning Association of Malaysia (FPAM). He has more than 20 years of auditing, accounting and finance background. Prior to joining MAAKL Mutual Bhd, he has been attached with various organisations involved in diverse industries, including property development, construction, resort management and software development. He has exposure in corporate finance, tax planning, strategic planning, business development and human resource support.

Ms Yooi Foong Hing, LL.B (Hons) Malaya, is the Head of Compliance – Unit Trust of the Manager. She is the designated person responsible for unit trust related compliance matters of the Manager. Ms Yooi graduated from University of Malaya with a LL.B (Hons) Degree and started her career as a practising lawyer. She has more than 21 years of experience in legal, corporate and financial services industry. Prior to joining the Manager, she was the Head of Compliance of MAAKL Mutual Bhd and prior to that the Compliance Manager of MBf Unit Trust Management Berhad. Prior to joining the unit trust industry, she was with a public-listed company involved in property development as the Manager in the Legal and Secretarial Department.

Mr Tew Sow Hume is the Assistant Vice President, Investment Operations of the Manager. He is responsible for overseeing the investment operations of the back office functions. Previously, he was with Pheim Asset Management Sdn Bhd for 15 years where he started his career as operations executive and rose to become operations manager responsible for managing the back office functions. He was later transferred to become the senior manager of compliance in the same organization. He is a fellow of the Association of Chartered Certified Accountants (ACCA).

Mr Tan Soo Siong is the Head of Operations of the Manager. Prior to joining the Manager, he has over 21 years experience in the banking and finance services including 8 years in the investment management and unit trust industry, covering various areas in fund (including trustee operations), customers and distributor services, investor operations and information technology. He holds a Diploma in International Advertising from the World Secretariat, International Advertising Association Incorporated USA.

Ms Wong Nyuk Lian is the Senior Manager in charge of Customer Service and MPC for the Manager. Ms Wong holds a Master’s Degree in Business Administration (General Management) from Central Queensland University, Australia. She has more than 15 years of working experience in the financial services and unit trust industry. Prior to joining the Manager, she was the Senior Manager of Customer Service in MAAKL Mutual Bhd and prior to that the Operations Manager of MBf Unit Trust Management Bhd where she was in charge of the overall operations of the business support unit, including Unit Holders’ administration and management of customer transactions and records. Before joining MBf Unit Trust Management Bhd, she was with a credit and leasing company for seven years, during which she gained vast experience and exposure in the field of credit processing for equipment financing.

Ms Kat Mui Ling, CFP, is the Senior Manager for Adviser Support Department of the Manager. She is responsible for the services and administration aspects of the agency force of the Manager. She holds a Bachelor of Economics (Hons) Degree in Business Administration and Master’s Degree in Business Administration (Marketing) from University of Malaya. She has more than 18 years of experience in the unit trust industry primarily in the areas of product development, sales and marketing, and customer and agency services. Prior to joining the Manager, she was the Senior Manager for Operations and Adviser Support Department of MAAKL Mutual Bhd and prior to that she was attached to MBf Unit Trust Management Bhd from 2001 to 2003 and Public Mutual (formerly known as KL Mutual) from 1995 to 2000.

Ms Linda Wong Yuet Kheng, is the Senior Manager of Marketing and Communications Department. She is responsible for the marketing, sales campaign, events, advertising, branding, social media and communications for the Manager. Prior to joining the Manager, she was the Senior Manager of Marketing and Communications Department of MAAKL Mutual Bhd and prior to that she was attached to Public Mutual Berhad for 8 years. She has over 18 years of experience in the unit trust industry. Having previously served in the electronic, chemicals and currently in the financial industry, she has accumulated vast sales and marketing experience in her career. Linda graduated from the Chartered Institute of Marketing (CIM), UK, and is also a Post Graduate Diploma holder in Business & Management from the University of Wales, UK. She subsequently pursued her MBA in Business & Management from the University of Lincolnshire & Humberside, UK.


11.9 Investment Team

Mr. Chong Soon Min (Jason) (Chief Investment Officer)(as aforementioned in Section 11.5)

Ms Tock Chin Hui (Head of Equities) – designated fund manager for MAF, MAFZ, MAU, MNF, MUS, MSIF, MDF, MPCF, MGF, MPF, MRSF, MBLF, MIE, MEIF and MVFMs Tock heads the equity team of the Manager in Malaysia and is the lead manager for third party equity strategies. She has more than 18 years of experience in the investment industry. Prior to joining the Manager, she was Deputy Head of Equities of UOB-OSK Asset Management Sdn Bhd. Ms Tock holds a Bachelor of Business (Accounting) degree from Monash University and is a Chartered Financial Analyst (CFA) charter holder. She is also a holder of the Capital Markets and Services Representative Licence in Fund Management.

Ms Elsie Tham Lai Ching (Senior Portfolio Manager of Fixed Income) – designated fund manager for MBF, MAS, MMMF and MAMMs Tham manages the fixed income portion of the Manager’s insurance funds as well as third party fixed income strategies. She has a total of 8 years experience in the investment industry. Before joining the Manager, she served as a Senior Credit Analyst in RAM Rating Services Berhad, providing credit analysis coverage on issuers in the Structured Finance, as well as Consumer Products segments. Ms Tham holds a Bachelor of Chemical Engineering with Environmental Protection degree from Loughborough University, UK. She is also a holder of the Capital Markets and Services Representative Licence in Fund Management.

11.10 Litigation And Arbitration

As at 30 April 2014, the Manager is not engaged in any material litigation and arbitration, including those pending or threatened, and is not aware of any facts likely to give rise to any proceedings which might materially affect the business/financial position of the Manager or any of its delegates.

11.11 Management Company’s Delegate

11.11.1 RHB Trustees Berhad

The Manager has appointed RHB Trustees Berhad to undertake the accounting and valuation function for the Funds by way of a service level agreement. Under the terms of the agreement, RHB Trustees Berhad maintains proper accounts, carries out daily valuation/pricing and sends the unit prices for publication in the newspapers. All fees and expenses arising out of this appointment are not charged to the Funds and are solely borne by the Manager as required by the Guidelines. (Please refer to section 14.3 for the corporate information of RHB Trustees Bhd)

11.11.2 Manulife Holdings Berhad (MHB)

MHB is responsible for the functions relating to internal audit, human resource, finance, corporate secretarial and legal.

MHB is the holding company and provides certain shared services to its subsidiaries and related companies.

11.11.3 Manulife Insurance Berhad (MIB)

Functions relating to marketing will be provided by MIB.

MIB commenced operations in year 2008 and is a wholly owned subsidiary of MHB and also provides certain shared services to the other subsidiaries of MHB.

11.11.4 Manulife Technology & Services Sdn Bhd (MTS)

MTS is responsible for providing information technology services.

MTS commenced operations in year 2004 and is global IT shared service centre for the Manulife group of companies in Asia and North America.

11.11.5 Manulife Data Services Inc. (MDSI)

MDSI is responsible for providing investment back-office services to the Manager.

Thefunctionoftheback-officethatMDSIprovidesincludes;reconciliation,transactionprocessing,datamanagement,securitypricingandNAVverification.

MDSI was established in 2006 by Manulife Financial Corporation (Manulife Financial) as s shared services provider operating in Manila providing accounting, back-office and technical services to Manulife Financial subsidiaries worldwide.


12. INFORMATION OF THE FUND MANAGERS

12.1 Functions Of The Fund Managers

The primary function of the Fund Managers is to actively manage the investments of the Funds in accordance with the Funds’ investment objectives. The Fund Managers will take into consideration the rules and guidelines issued by the relevant authorities and the Deed and will report on the status of the Funds’ investments and proposed investment strategies to the Investment Committee of the Funds at least once a month.

12.2 CIMB-Principal Asset Management Berhad (“CIMB-Principal”)

12.2.1 Background

CIMB-Principal holds a Capital Markets Services License for fund management and dealing with unit trust products under the CMSA and specialises in managing and operating unit trusts for investors, both institutional and retail. CIMB-Principal’s responsibilities include managing investment portfolios by providing fund management services to insurance companies, pension funds, unit trust companies, corporations and government institutions in Malaysia. In addition, CIMB-Principal is an approved private retirement scheme provider in Malaysia.

CIMB-Principal is a participating unit trust management company under the Malaysia EPF’s Members Investment Scheme and as at 30 April 2013, it was responsible for managing more than RM37.74billion on behalf of individuals and corporations in Malaysia.

It originally commenced its operations as a unit trust company in November 1995. As at 30 April 2014, CIMB-Principal has more than 18 years of experience in the unit trust industry.

As at 30April 2014, the shareholders of the company areCIMBGroupSdn.Bhd. (“CIMBGroup”) (60%) andPrincipal International (Asia)Limited(“PIA”)(40%).

CIMB Group is held in majority by CIMB Group Holdings Berhad. 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.

PIA is a private company incorporated in Hong Kong and its principal activity is the provision of consultancy services to other PFG group of companies. PIA is a subsidiary of the Principal Financial Group, which was established in 1879 and is a diversified global financial services group servicing more than 15 million customers.

As at 30 April 2014, CIMB-Principal managed 38 conventional unit trust funds (including 2 Exchange-Traded Funds) and 19 Islamic unit trust funds.

In addition to being able to draw on the financial and human resources of its shareholders, CIMB-Principal has staff strength of 313, comprising of 265 Executives and 48 Non-Executives, as at 30 April 2014.

12.2.2 Designated Fund Manager

The designated Fund Manager for MCF and MCS is Mr Tan Gid Loke.

Mr Tan Gid Loke has been attached to CIMB-Principal Asset Management since 2006. He has more than 10 years of experience as a sell side analyst before moving over to asset management in 2006. He graduated in Engineering from Monash University, Australia in 1988. He is a Charter Financial Analyst (CFA) since 1997.

12.2.3 Litigation And Arbitration

As at 30 April 2014, there is no litigation or arbitration proceeding current, pending or threatened against or initiated by CIMB-Principal nor is there any fact likely to give rise to any proceeding which might materially affect business/financial position of CIMB-Principal or any of its delegates.

12.3 Hwang Investment Management Berhad (“HwangIM”)

12.3.1 Background

The Manager has appointed HwangIM as the Fund Manager for MHF, MSPF and MHSF.

HwangIM was incorporated in Malaysia on 2 May 1997 under the Companies Act, 1965 and began operations under the name Hwang-DBS Unit Trust Berhad in 2001. It is supported by Hwang-DBS (M) Berhad (HDBS) whose principal subsidiary, HwangDBS Investment Bank Berhad has over 35 years of experience in the securities industry, and Nikko Asset Management Asia Limited (Nikko AM ASIA).

HwangIM is a holder of a valid and existing Capital Markets Services Licence under the CMSA and has an authorised paid up capital of RM 10 million as at 30April 2014.Shareholders ofHwangIMareNikkoAMASIA (30%) andAffinHoldings (70%).HwangIMdistributes its fundsthrough various channels as follows:-

(i) In-house/internalsalesteam;(ii) IUTA&CUTA(CorporateUnitTrustAdvisers);and


(iii) Unit trust consultants.

HwangIM’s head office is located in Kuala Lumpur and has a total of 5 main sales offices located in Peninsular and East Malaysia. They are in Penang, Ipoh, Johor Bharu, Kuching and Kota Kinabalu.

Milestones

As at 30 April 2014, HwangIM has in its stable a total of 30 unit trust funds and 25 wholesale funds, offering a complete and essential range of products, comprising conventional equity, balanced, bond, money market, capital guaranteed, capital protected, global, structured and feeder funds, as well as Shariah-compliant equity, Islamic money market and Islamic fixed income funds.

As at 30 April 2014, the total AUM, comprising in-house unit trust funds as well as corporate and discretionary portfolios stood at approximately RM25.86 billion.

As at 30 April 2014, HwangIM has a staff force of two hundred and twenty nine (229), of whom, two hundred and thirteen (213) are executives and nineteen (19) are non-executives.


The designated Fund Manager for MHF, MSPF and MHSF is Mr David Ng Kong Cheong.

Mr David Ng joined HwangIM in September 2002 as a portfolio manager and was appointed as Chief Investment Officer on 1 September 2006, to oversee the equities, fixed income and the central dealing units. He graduated with both Bachelor of Commerce (Accounting) and Bachelor of Law degrees from Monash University in Melbourne, Australia and he is also Chartered Financial Analyst charter holder. In total, David has over 17 years of investment experience in managing both institutional and unit trust funds.David’s key responsibilities at HwangIM are the setting of investment strategy for the assets under management and the management of selected portfolios.

12.3.3 Litigation And Arbitration

As at 30 April 2014, there are no material litigation and arbitration likely to give rise to any proceedings which might affect the business/financial position of HwangIM.

12.4 Manulife Asset Management (Singapore) Pte. Ltd.

12.4.1 Background

Manulife Asset Management (Singapore) Pte. Ltd. (“MAMS”) was incorporated in Singapore on 5 June 2007 and it commenced operations as an investment manager in July 2007. MAMS’s ultimate parent company is Manulife Financial Corporation. MAMS is part of Manulife Asset Management, the asset management arm of Manulife Financial Corporation. MAMS holds a Capital Markets Services licence issued by the Monetary Authority of Singapore. MAMS is included as a fund management company under the Central Provident Fund Investment Scheme and a member of Investment Management Association of Singapore.

MAMS has more than 6 years of experience in the investment management industry. As at 28 February 2014, the assets under management for MAMS stood at SGD4.125 billion. Besides managing life insurance accounts and 6 institutional discretionary segregated mandates, MAMS sub-advises 2 third party funds and is also responsible for 6 authorised, 5 recognised and 29 restricted schemes.


Ms Lisa Yong (Senior Equities Director) – designated fund manager for MAPRLisa Yong started her investment career in 1996 and joined Manulife Asset Management in July 2011 as senior equities director. She previously worked at three prominent asset management companies in Singapore where she managed a range of strategies from balanced mandates to South East Asian and dedicated Singapore strategies. One of the Singapore equities funds that she previously managed was awarded the best performing fund (over 5 years in February 2009) by Lipper. She also won the best performing fund (as a sub-manager over 10 years in February 2014) by Lipper.

12.4.3 Litigation and Arbitration

As at 28 February 2014, there was no litigation or arbitration, including those pending or threatened, or any facts likely to give rise to any proceedings which might metarially affect the business/financial position of MAMS.

12.5 Manulife Asset Management (Hong Kong) Limited

12.5.1 Background

Manulife Asset Management (Hong Kong) Limited (“MAMHK”) was incorporated in Hong Kong on 21 June 1994 and it commenced operations as an investment manager in June 2000. MAMHK’s ultimate parent company is Manulife Financial Corporation. MAMHK is part of Manulife Asset Management, the asset management arm of Manulife Financial Corporation. MAMHK provides comprehensive asset management solutions for institutional investors, investment funds and individuals in key markets around the world.

MAMHK is licensed with the Securities and Futures Commission (“SFC”) under the Securities and Futures Ordinance (“SFO”) to conduct the following regulated activities in Hong Kong:


Type 1 – Dealing in securitiesType 4 – Advising on securitiesType 5 – Advising on futures contractsType 9 – Asset management

MAMHK has more than 13 years of experience in the investment management industry. It has an investment division with 145 staff, of which 31 are in the investment teams covering equity, fixed income and asset allocation strategies. As of 28 February 2014, the assets under management for MAMHK stood at USD30.4 billion. The investment professionals of MAMHK form part of Manulife Asset Management’s global network of more than 330 investment professionals in 17 countries and territories.


Mr Chay Kai Kong, (Managing Director, Greater China Equities) – designated fund manager for MGCFKai Kong is a Managing Director and Senior Portfolio Manager for Greater China Equities. Based in Hong Kong, he oversees the Greater China equity desk and works closely with investment specialists based across Hong Kong, China and Taiwan to lead management of the firm’s Greater China portfolios and strategies.

Kai Kong is a seasoned investment professional with more than 16 years of investment experience covering Greater China markets, including 14 years as a portfolio manager. His career spans lead manager roles at two prominent asset management companies in Singapore and Hong Kong. He has also managed Greater China funds for two global asset management firms in Singapore. He has a strong performance track record which includes managing top-quartile-performing Greater China funds at his previous companies.

Kai Kong holds a Bachelor of Accountancy from Nanyang Technological University. He is a Chartered Financial Analyst and a member of the Association for Investment Management and Research (AIMR). He obtained his Type 4, 5 and 9 Representative License from Securities and Futures Commission in May 2011.

Ms Tan Kenglin (Senior Portfolio Manager, Equity) – designated fund manager for MSAPKenglin is a Managing Director, Equities. Based in Hong Kong, she is primarily responsible for analysing and selecting stocks for the ASEAN and Australia equities. She also covers Asia-Pacific (ex-Japan) equities and in the process, she works closely with portfolio managers covering markets in the North Asia region.

Having worked in the industry since 2000, Kenglin has buy- and sell-side equity analyst experience. She has covered stocks listed on stock exchanges in Hong Kong, Taiwan, ASEAN and Australia.

Kenglin holds a Bachelor of Business Administration, majoring in Finance, from the University of Putra Malaysia and is a CFA charterholder. She obtained her Type 4, 5 and 9 Representative Licence from Securities and Futures Commission in June 2009.

12.5.3 Litigation & Arbitration

As at 28 February 2014, there was no pending or threatened litigation or arbitration or any facts likely to give rise to any proceedings which might materially affect the business/financial position of MAMHK.


13. THE SHARIAH ADVISER

13.1 Shariah Adviser

IBFIM has been appointed as the Shariah Adviser for MAF, MAS, MSIF, MAFZ, MAU, MAM, MCS, MSAP, MSPF and MHSF (“the Funds”). Scheduled to meet the Manager and/or the Investment Committee of the Funds every quarter, where IBFIM will advise the Manager on the selection of investment tools to be adopted. IBFIM will also counsel the mechanism of the operations of the Funds’ activities to ensure that the operations of the Funds comply with Shariah requirements.

13.2 General Information On IBFIM

IBFIM was incorporated as a company limited by guarantee and not having share capital in Malaysia under the Companies Act, 1965 on 15 February 2007.

13.3 Experience in Advisory and Services

IBFIM is registered with the SC to act as a Shariah Adviser for Shariah-compliant collective investment schemes and sukuk issuance. IBFIM is also involved in numerous Shariah-compliant private mandates as well as the Shariah Adviser for Islamic REITs and Islamic asset management houses.

As at the 30 April 2014, IBFIM has total staff strength of 61 employees, and has 77 funds under its supervision.

13.4 Roles And Responsibilities Of IBFIM As The Shariah Adviser

As the Shariah Adviser, the role of IBFIM is to ensure that the operations and investments of the Funds are in compliance with Shariah requirements. The Shariah Adviser reviews the Funds’ investments on a monthly basis to ensure compliance with Shariah requirements at all times and meets with the Manager on a quarterly basis to review and advise on the Funds’ compliance with Shariah requirements. Final responsibility for ensuring Shariah compliance of the Funds with Shariah requirements in all relevant aspects rests solely with the Manager.

InlinewiththeSCGuidelines,therolesofIBFIMastheShariahAdviserare;

1. ensuring that the Shariah-compliant unit trust funds (“the Funds”) are managed and administered in accordance with the Shariah principles;

2. providing expertise and guidance for the Funds in all matters relating to Shariah principles, including on the Funds’ Deed and Prospectus, itsstructureandinvestmentprocess,andotheroperationalandadministrativematters;

3. consulting the SC who may consult the Shariah Advisory Council where there is any ambiguity or uncertainty as to an investment, instrument,system,procedureand/orprocess;

4. scrutinising the Funds’ compliance report as provided by the compliance officer, transaction report provided by or duly approved by the Trustee and any other report deemed necessary for the purpose of ensuring that the Funds’ investments are in line with the Shariah principles;

5. preparing a report to be included in the Funds’ interim and annual report certifying whether the Funds have been managed and administeredinaccordancewiththeShariahprinciples;

6. ensuringthattheFundscomplywithanyguideline,rulingordecisionissuedbytheSCwithregardstoShariahmatters;7. vettingandadvisingonthepromotionalmaterialsoftheFunds;8. assisting and attending to any ad-hoc meeting called by the SC and/or any other relevant authority.

13.5 Profile Of The Shariah Team

IBFIM’sShariahteamconsistsofthefollowingpersonnel;

Dato’ Mohd Bakir Bin Haji Mansor (Distinguished Shariah Advisor)

Dato’Mohd Bakir Bin Haji Mansor is a member of the Shariah Supervisory Council of Bank Islam Malaysia Berhad (BIMB), the Shariah Advisory Body of Syarikat Takaful Malaysia Berhad and sits on the Shariah Panel Committee of Amanah Ikhtiar Malaysia. He is also the Chairman of the Shariah Advisory Committee of the Employees Provident Fund, the Shariah Advisory Committee of BIMB Securities Sdn. Bhd.

Prior to joining IBFIM, Dato’ Mohd Bakir was the Shariah Coordinator at BIMB, from 1984 to 2001. Previously, he served at the National Council for Islamic Religious Affairs in the Prime Minister’s Department for 10 years from 1971. He was also a Chief Assistant Director at the Islamic Research Centre for 4 years from 1981. He holds a Shahadah Ulya from Kolej Islam Malaya.

Dato’ Mohd Bakir was awarded “Tokoh Maulidur Rasul 1434H/2013M” by the government of Malaysia for his contributions in promoting the Islamic finance industry.

Mohd Nasir Bin Ismail (Shariah Advisor)

Mohd Nasir Bin Ismail, IFP, has been with IBFIM since its incorporation. He is responsible in providing Shariah input on the advisory, consultancy and research functions with regard to Islamic banking, takaful, Islamic capital market and Shariah-compliant unit trust Fund. Prior to joining IBFIM, he was with Institut Pengajian Ilmu-Ilmu Islam, Kelantan. He graduated with a Bachelor of Shariah (Honours) from the University of Malaya in 1998. He is also the designated person responsible for Shariah matters related to the Fund.


Ahmad Zakirullah Bin Mohamed Shaarani (Senior Shariah Officer)

Ahmad Zakirullah Bin Mohamed Shaarani joined IBFIM in February 2008. He is responsible in providing Shariah input on the advisory, consultancy and research functions with regard to Islamic banking, takaful, Islamic capital market and Shariah-compliant unit trust Fund. Prior to joining IBFIM, he served at University Sains Islam Malaysia before joining PTPL College. He obtained his Master in Islamic Revealed Knowledge and Human Sciences from International Islamic University Malaysia (Honours), Bachelor of Shariah Islamiyyah (Honours) from Al-Azhar University, Egypt and Diploma of Shariah Islamiyyah (Honours) from Higher Institute of Islamic and Arabic Language (MADIWA). He is also the designated person responsible for Shariah matters related to the Fund.

Budeeman Mana (Senior Shariah Officer)

Budeeman Mana joined IBFIM in July 2011. He is responsible in providing Shariah input on the advisory, consultancy and research functions with regard to Islamic banking, takaful, Islamic capital market and Shariah-compliant unit trust funds. Prior to joining IBFIM, he served at Sri Cempaka School, Damansara Heights. He graduated with a Bachelor of Islamic Revealed Knowledge and Heritage (Fiqh and Usul al-Fiqh) (Honours) from International Islamic University Malaysia in 2010. He is also the designated person responsible for Shariah matters related to the Funds.


14. INFORMATION OF THE TRUSTEES

14.1 HSBC (Malaysia) Trustee Berhad

14.1.1 Background Information

HSBC (Malaysia) Trustee Berhad (Company No. 1281-T) is the Trustee for MGF, MPF, MBF, MAF, MAS, MRSF, MMMF, MPCF, MAFZ, MDF, MAPR and MSAP. HSBC (Malaysia) Trustee Berhad (Company No. 1281-T) is a company incorporated in Malaysia since 1937 and registered as a trust company under the Trust Companies Act 1949, with its registered address at 13th Floor, Bangunan HSBC, South Tower, No. 2, Leboh Ampang, 50100 Kuala Lumpur.

14.1.2 Financial Position

The Trustee has a paid-up capital of RM500,000.00. As at 31 December 2013, its shareholders’ funds totaled RM48.06 million and it achieved a profit before tax of RM13.38 million.

The following is a summary of the past performance of the Trustee based on audited accounts for the last 3 financial years:


2012(RM)

2011(RM)

Paid-up Share Capital 500,000 500,000 500,000

Shareholders’ Funds 48,058,506 38,785,020 30,214,518

Turnover 24,287,694 23,539,663 20,725,309

Profit Before Tax 12,381,200 11,289,951 9,139,041

Profit after Tax 9,273,605 8,570,502 6,883,965

14.1.3 Experience in Trustee Business

Since 1993, the Trustee has acquired experience in the administration of unit trusts and as at 30 April 2014, is the Trustee for 174 funds (including unit trust funds, exchange traded funds, wholesale funds and funds under private retirement scheme).

As at the 30 April 2014, the Trustee has a workforce of 54 employees consisting of 45 executives and 9 non-executives. A good number of the staff has been with the Trustee for many years.

14.1.4 Board of Directors

Mr Baldev Singh A/L Gurdial SinghMs Lim Liang HuaDato’ Ranita Mohd HusseinMs Zainon BabaMs On Bee Heong

14.1.5 Profile of Key Personnel

Mr Yee Yit Seeng - Chief Operating Officer/Acting Managing DirectorHe is responsible for the overall management of all operational functions of HSBC Trustee. He joined HSBC Trustee in July 1984. He holds a Diploma in Banking and Finance and is a Senior Associate of Institut Bank-Bank Malaysia. He has more than 22 years of experience in trust operations including client service, systems/projects & office administration, compliance, internal control & audit, and business development. He was also seconded to the HSBC Back-end Processing Office in Cyberjaya, Malaysia to support the global securities operations.

14.1.6 Trustee’s Disclosure of Material Litigation

As at the 30 April 2014, the Trustee is not engaged in any material litigation and arbitration, including those pending or threatened, and is not aware of any facts likely to give rise to any proceedings which might materially affect the business/financial position of the Trustee and any of its delegates.

14.1.7 Trustee’s Delegate

The Trustee has appointed The Hongkong and Shanghai Banking Corporation Ltd as custodian of the quoted and unquoted local investments of the Fund. The assets of the Fund are held through their nominee company, HSBC Nominees (Tempatan) Sdn Bhd. If and when the Fund should invest overseas, HSBC Institutional Trust Services (Asia) Limited will be appointed as the custodian of the foreign assets of the Fund. Both The Hongkong And Shanghai Banking Corporation Ltd and HSBC Institutional Trust Services (Asia) Limited are wholly owned subsidiaries of HSBC Holdings Plc, the holding company of the HSBC Group. The custodian’s comprehensive custody and clearing services cover traditional settlement processing and safekeeping as well as corporate related services including cash and security reporting, income collection and corporate events processing. All investments are registered in the name of the Fund or to the order of the Fund. The custodian acts only in accordance with instructions from the Trustee.

The Trustee shall be responsible for the acts and omissions of its delegate as though they were its own acts and omissions.


However, the Trustee is not liable for the acts, omissions or failure of third party depository such as central securities depositories, or clearing and/or settlement systems and/or authorised depository institutions, where the law or regulation of the relevant jurisdiction requires the Trustee to deal or hold any asset of the Fund through such third parties.

14.1.8 Related-Party Transactions/Conflict of Interest

As Trustee for the fund, there may be related party transaction involving or in connection with the fund in the following events:-

1) WherethefundinvestsininstrumentsofferedbytherelatedpartyoftheTrustee(e.gplacementofmonies,structuredproducts,etc);2) WherethefundisbeingdistributedbytherelatedpartyoftheTrusteeasInstitutionalUnitTrustAdviser(IUTA);3) Where the assets of the fund are being custodised by the related party of the Trustee both as sub-custodian and/or global custodian of the

fund(Trustee’sdelegate);and4) Where the fund obtains financing as permitted under the Guidelines, from the related party of the Trustee.

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

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

14.1.9 Anti-Money Laundering and Anti-Terrorism Financing Provisions

The Trustee has in place policies and procedures across the HSBC Group, which may exceed local regulations. Subject to any local regulations, the Trustee shall not be liable for any loss resulting from compliance of such policies, except in the case of negligence, wilful default or fraud of the Trustee.

14.1.10 Statement of Disclaimer

The Trustee is not liable for doing or failing to do any act for the purpose of complying with law, regulation or court orders.

14.1.11 Consent to Disclosure

TheTrusteeshallbeentitled toprocess, transfer, releaseanddisclose from time to timeany information relating to the investors/UnitHolders;to the Trustee’s parent company, subsidiaries, associate company, affiliates, delegates, service providers and/or agents (including outsourcing agents and data processors), whether within or outside Malaysia, necessary (i) for the due performance and carrying out of the Trustee’s obligationsundertheFundincludingfulfillingitsinternaloperatingprocedures;and(ii)aspartofitsfinancialcrimeandsanctioncomplianceriskmanagement policies, (who may also subsequently process, transfer, release and disclose such information for the abovementioned purposes) on thebasisthattherecipientsshallcontinuetomaintaintheconfidentialityofinformationdisclosed;asrequiredbylaw,regulationordirective,orinrelationtoanylegalaction;ortoanycourt,regulatoryagency,governmentbodyorauthority.

14.2 Maybank Trustees Berhad

14.2.1 Background Information

Maybank Trustees Berhad (“MTB”) is the Trustee of MVF, MBLF, MEIF, MNF, MSIF, MAU, MCF, MAM, MHF and MCS with its registered office at 8th Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur.

Maybank Trustees Berhad 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 the 30 April 2014, the Trustee has a total of thirty one (31) staff, comprising twenty five (25) executives and six (6) non-executives.

14.2.2 Financial Position

The following is a summary of the past performance of the Maybank Trustees Berhad based on audited accounts for the last 3 years:

31 December 2013(RM)

31 December 2012 (RM)

31 December 2011* (RM)

Paid-up Share Capital 500,000 500,000 500,000


Turnover 21,316,197 14,047,931 6,506,087

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

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

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


14.2.3 Experience In The Trustee Business

With more than 22 years of experience as Trustee to unit trust funds/schemes, Maybank Trustees Berhad has under its trusteeship a total of sixty (60) unit trust funds, three (3) wholesale funds, one (1) private retirement scheme (consisting of three (3) funds) and four (4) real estate investment trust/property trust funds as at 18 April 2014.

14.2.4 Board of Directors

En Zainal Abidin Jamal - Non Independent Non-Executive Director & ChairmanDato’ Mohd. Hanif bin Suadi - Non-Independent Non-Executive DirectorDato’ Dr Tan Tat Wai - Independent Non-Executive DirectorMs Ong Sau Yin - Independent Non-Executive Director

14.2.5 Profile of Key Personnel

Mr Samuel Hwa - Officer in ChargeHead, Business Development & StrategiesMr Samuel Hwa joined MTB in August 2013. He is responsible for the overall management of all operational functions of the MTB. He holds a Bachelor of Law degree from the University of London and a Bachelor of Science in Business from Pennsylvania State University double majoring in Finance and Marketing/Management. He started his career in America as a business analyst and later joined an insurance company in Malaysia. Prior to joining Maybank, he was with CIMB Investment Bank Berhad. Samuel has worked in the Securities Services industry for over 7 years.

Ms Bernice K.M Lau - Head, OperationsMs Bernice Lau was appointed as Head, Operations in November 2013. Prior to her appointment, she was the Head, Corporate Trust of MTB. She joined MTB in December 2008. Prior to joining MTB, she was a Legal & Compliance Officer of UOB Trustees Bhd which subsequently merged with OSK Trustees Berhad. She has more than eight (8) years of experience in trustee industry.

She holds a LL.B (Hons) from University of London and a Certificate in Legal Practice from Legal Profession Qualifying Board, Malaysia.

Ms Lim San San - Head, Unit TrustMs Lim San San joined MTB in June 2011. She has more than 13 years of experience in financial services and unit trust industry. She is a Fellow member of ACCA and a Chartered Accountant of MIA.

14.2.6 Trustee’s Delegate

Maybank Trustees Berhad has delegated its custodian function to Malayan Banking Berhad. 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 institutions/clients that have foreign investments.

Maybank Trustees Berhad has appointed Standard Chartered Bank Malaysia Berhad as the custodian of the foreign assets of MNF, MBLF, MCF and MVF. The assets are held in the name of the respective Funds through the custodian’s wholly owned subsidiary and nominee company, Cartaban Nominees (Tempatan) Sdn Bhd. The assets are also automatically registered into the name of the respective Funds. Standard Chartered in Malaysia has been providing custody services for more than twenty (20) years: providing sub-custody services to foreign clients since 1989 and the local custody services to local investors in Malaysia since 1995.

Both custodians act only in accordance with instructions from the Trustee.

14.2.7 Material Litigation and Arbitration

As at 18 April 2014, save for the suits mentioned herein below, the Trustee is not engaged in any material litigation as plaintiff or defendant and the Trustee is not aware of any proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially and adversely affect its financial position or business.

1. The bondholders of the Al-Bai Bithaman Ajil (“ABBA”) bonds (“bondholders”) issued by Pesaka Astana (M) Sdn Bhd (“PASB”) have sued PASB for its failure to meet its bonds payment obligations under Kuala Lumpur High Court Civil Suit No. D5(D6)-22-1810-2005 (the “ABBA Suit”) and cited the Trustee as one of 12 co-defendants in the ABBA Suit. The claim in the ABBA Suit is for RM149,315,000.00 or any other sum that the Court deems fit. The other defendants in the ABBA Suit include among others the Facility Agent, PASB’s Chief Executive Officer, one of PASB’s directors and associate companies of the Chief Executive Officer and the said director. The Trustee has defended the ABBA Suit and its trial has concluded.

The Trustee had appealed against the decision made by the High Court on 30 June 2010 in respect of the ABBA Suit in awarding judgement against it and another Defendant. The appeals proceeded on 22, 23, 26, 27, 28, 29 and 30 September 2011 and 3 October 2011. The Court of Appeal had on 8 November 2011 awarded the Trustee and another Defendant a limited indemnity against PASB, PASB’s Chief Executive Officer, one of PASB’s directors and associate companies of the Chief Executive Officer and the said director (collectively “PASB And Their Associated Defendants”) but found the Trustee and the other Defendant equally liable to the bondholders. The Federal Court had on 5 April 2012 granted the Trustee leave to appeal to the Federal Court against certain parts of the decision of the Court of Appeal (“Federal Court Appeal”). The Federal Court Appeal was heard on 6, 7, 8, 20, 21 and 23 November 2012 and on 2, 3 and 4 January 2013. The hearing dates of 17 to 19 October 2012 and 19 November 2012 were vacated.


The Federal Court had on 10 February 2014 delivered its decision (“Decision”) wherein it had, among others, allowed the Trustee a full indemnity against PASB And Their Associated Defendants and reduced the judgement sum against the Trustee to approximately RM107 million without apportionment of liability against the other Defendant.

PASB’s Chief Executive Officer and associate companies of the Chief Executive Officer have filed an application for the Federal Court to review its decision against them (“Review Application”). The Review Application is fixed for hearing on 29 April 2014.

2. Connected to the ABBA Suit, Amanah Short Deposits Berhad [now MIDF Amanah Investment Bank Berhad (“MIDF”)], a Noteholder of the Combined Commercial Papers and/or Medium Term Notes/Letters of Credit/Financial Guarantee Facilities (“CP/MTN”) totalling RM13 million and issued by PASB, has also sued PASB for full payment under the CP/MTN arising from a cross-default by PASB under its ABBA bonds under Kuala Lumpur High Court Civil Suit No. D2-22-1085-2006 (the “CP/MTN Suit”). The Trustee was cited as one of 5 co-defendants in the CP/MTN Suit. The claim in the CP/MTN Suit is for RM13 million or any other sum that the Court deems fit and damages. The other defendants in the CP/MTN Suit are the Facility Agent, PASB’s Chief Executive Officer and one of PASB’s directors. The Trustee is defending the CP/MTN Suit. Trial dates will be fixed by the High Court.

The Trustee has obtained leave of the court to proceed with the actions against PASB given that further to an unrelated suit a provisional liquidator had been appointed against PASB. The Trustee has also obtained leave of the court to proceed with the actions against PASB following the court’s order to wind-up PASB further to the unrelated suit.

In any event, any successful claim that may be established against the Trustee will be covered by the Trustee’s insurer and/or Malayan Banking Berhad as the ultimate holding company of the Trustee. As such, the ABBA Suit and the CP/MTN Suit will not materially affect the business or financial position of the Trustee.

3. Several holders of the bonds (“bondholders”) issued by Aldwich Berhad [In Receivership] (“Aldwich”) have sued Aldwich for its failure to settle its indebtedness to the bondholders following the default of the said bonds in 2010 and cited the Trustee as one of 6 co-defendants under Kuala Lumpur High Court Suit No. D-22NCC-1622-11/2012 (the “Aldwich Bondholders’ Suit”). The claim against the Trustee is for the sum of RM177,248,747.31 or any other sum that the Court deems fit. The other defendants are the holding company of Aldwich, the Chief Executive Officer of the holding company of Aldwich, the Security Agent and the Reporting Accountant. The Trustee does not admit liability to the Aldwich Bondholders’ Suit and shall defend it. The Aldwich Bondholders’ Suit will not materially affect the business or financial position of the Trustee. Trial is ongoing and will continue on 21 July 2014.

14.3 RHB Trustees Berhad (formerly known as OSK Trustees Berhad)

14.3.1 Background Of The Trustee

RHB Trustees Berhad (Company No. 573019-U) (formerly known as OSK Trustees Berhad) [“RHB Trustees Berhad”] is the Trustee for MGCF, MUS, MIE MSPF and MHSF. RHB Trustees Berhad was incorporated in Malaysia under the Companies Act, 1965 on 6 March 2002. It is registered as a trust company under the Trust Companies Act, 1949 and is also registered with the SC to conduct unit trust business. The principal activity of RHB Trustees Berhad is providing retail and corporate trustee services. RHB Trustees Berhad has been in the trustee business since 2002.

The present authorised share capital of RHB Trustees Berhad is RM25,000,000 comprising 2,500,000 ordinary shares of RM10.00 each, of which 1,200,000 are currently issued and credited as partially paid-up of RM5.00 each in RHB Trustees Berhad. The shareholders are as follows:

Shareholders %

RHB Capital Berhad 20RHB Investment Bank Berhad 20RHB Nominees (Tempatan) Sdn. Berhad 20RHB Nominees (Asing) Sdn. Berhad 20OSK Futures And Options Sdn. Berhad 20

14.3.2 Financial Position Of The Trustee

The following is a summary of the past performance of the Trustee based on audited accounts for the last 3 years:


2012(RM)

2013(RM)

Paid-up Share Capital 6,000,000 6,000,000 6,000,000


Turnover 6,625,528 7,566,249 7,629,601

Profit Before Tax 475,479 1,924,026 710,680

Profit After Tax 390,580 1,417,905 502,744

14.3.3 Experience In Trustee Business

RHB Trustees Berhad undertakes all types of trustee business allowed under the Trust Companies Act, 1949, ranging from corporate trustee services to retail services. RHB Trustees Berhad offers corporate trustee services such as trustee for real estate investment trusts (REITs), unit trust funds, private retirement schemes and custodian services. Its retail services include estate planning services (will writing, custodian and executor/trustee services) and private trustee services (private purpose trust, investment trust, charitable trust, insurance trust, business succession trust, estate administration trust, custodian and stakeholder services).


As at 30 April 2014, RHB Trustees Berhad is the trustee for nine (9) unit trust funds, eighteen (18) wholesale funds and three (3) REITs.

As at 30 April 2014, RHB Trustees Berhad’s staff strength comprises 39 executives and 5 non-executive staff.

14.3.4 The Board Of Directors

The following table sets out information regarding the Board of Directors of the Trustee:-

Name DirectorshipFoo San Kan Independent Non-Executive Director

Dato’ Nik Mohamed Din bin Datuk Nik Yusoff Non-Independent Non-Executive Director (Chairman)

Datuk Haji Faisal @ Ibrahim bin Siraj Independent Non-Executive Director

Ong Seng Pheow Independent Non-Executive Director

Tony Cheing Siong Ung Executive Director

14.3.5 Key Personnel

Tony Chieng Siong Ung, Executive DirectorMr Tony holds a Master of Business Administration specializing in finance from University of Southern Queensland and professional certification from The Institute of Chartered Secretaries & Administrators (ICSA). Prior to joining RHB Trustees Berhad, he is the Head of Operations with Maybank Securities Services managing a team of 45 staff that covers Trustee, Custodian and Fund Accounting services with over 60 unit trust funds (UTF), 85 private debt securities (PDS) & real estate investment trusts (REITs) and over 3500 accounts under custodianship with Asset under Custody (AUC) worth of more than RM70 billion. He has more than 17 years experience in financial services industry encompassing hands onexperienceindaytodayoperationsof trusteeshipsuchasUTF,PDS,REITs,EstateAdministrations,Will&Wasiat;custodianrolessuchastrade settlement and corporate action, fund accounting, asset management, stock broking and insurance. He is responsible for overall business direction and management of RHB Trustees Berhad, including but not limited to business development and day-to-day operations for UTF, REITS and PDS.

Beh Soo Ngoh, Associate Director, Unit TrustMs Soo holds a Bachelor of Commerce in Accounting from University of Southern Queensland and a Diploma in Business Studies from HELP University. Prior to joining RHB Trustees Berhad, she was a Fund Accounting Manager with RBC Investor Services, one of the top global custodian companies. She was responsible for daily operation of funds valuation, managing a team of 30 fund accountants, and had more than 250 offshore funds with AUM more than EUR20 billion under her management. She has worked in Malaysia leading unit trust companies since Year 2001, and since then has accumulated more than 12 years experience in financial services industry which includes fund accounting and reporting, product development and fund valuation for both onshore and offshore funds. Her scope of work at RHB Trustees Berhad includes the operations and business development of unit trust funds.

Cheah Kuan Yoon, Associate Director, Unit TrustMr Cheah holds a Bachelor of Arts majoring in Accountancy and Finance from University of Abertay Dundee, Scotland. Prior joining RHB Trustees Berhad, he was a functional consultant with OpenLink International Sdn Bhd. He was a manager in Operation Department, KAF Trustee Berhad for 4 years, where he specialised in fund accounting, administration and settlement operations of high net worth clients’ (institutional and individual) transactional records. He also involved in bond trustee activities including oversee and monitoring funds on designated accounts operations. Mr Cheah started his career as an Executive in CIMB Investment Bank Berhad for 3 years. He was in Financial Accounting Unit where he had extensive experience in firming the foundation of fund management for fixed income services and implementation projects in system user testing. His current scope of work includes managing administration and operations of the unit trust team.

Zulkifli Hassan, Senior Manager, Unit TrustMr. Zulkifli holds a Bachelor’s Degree in Economics majoring in Business Administration from the University of Malaya. He has more than 20 years of experience in the financial services industry including asset management, stock broking and retail banking services. Prior to joining RHB Trustees Berhad, he was an Assistant Manager with MIDF Amanah Asset Management Berhad and his main responsibility was then to oversee the company’s day-to-day operations. His current scope of work includes but is not limited to supervise the operations, administration and compliance of the trustee operations of unit trust funds.

Sazali Alias, Senior Manager, Internal Process and ManagementMr. Sazali holds a Bachelor of Arts in Business Administration (Marketing) from Benedictine College, Kansas, USA, and Diploma in Business Studies from University MARA Institute of Technology (UiTM).

He has more than 12 years experience in financial services industries encompassing hands on experience in day to day operations of nominees, trusteeship services such as unit trust funds, clubs, real estate investment trust and private debt securities. He was a Compliance Manager with AmTrustee Berhad (AmTB). Prior to AmTB, he was an Assistant Vice President in ABB Trustee Berhad (ABBT) and headed ABBT’s Finance & Operations Units. He is currently with RHB Trustees Berhad, and his scope of work includes compliance and business process flow of the Company.

14.3.6 Anti Money Laundering Provisions

RHB Trustees Berhad adopts the Anti-Money Laundering and Counter Financing of Terrorism (“AML/CFT”) Program for Investment Banking Business (“the Program”) in dealing with the principles to combat money laundering and terrorism financing.

The Program inter alia provides guidance to all employees of RHB Investment Banking Group (“RHB IB Group”) on the requirement of Know Your Client (“KYC”) / clients’ due diligence (“CDD”), whereby they are required to obtain satisfactory evidence to establish the identity and legal existence of any person applying to do business with any companies of RHB IB Group. The employees should not compromise any attempt to circumvent the CDD requirement.


The policies and procedures in the Program serve to prevent RHB Trustees Berhad from being used as a conduit for money laundering and terrorism financing activities. This is through the prevention and detection of AML/CFT suspicious transaction and fraud, and reporting of such activities to the relevant regulatory bodies.

14.3.7 The Trustee’s Declaration

RHB Trustees Berhad is independent of the Manager. The Trustee will carry out transactions on an arm’s length basis and on terms which are best available to the Fund, as well as act at all times in the best interest of the Unit Holders. The Trustee also has adequate procedures and processes in place to prevent or control conflicts of interest.

RHB Trustees Berhad’s Board of Directors declare that the requirements of the guidelines on allowing a person to be appointed or to act as trustee under subsection 290(1) of the Capital Markets and Services Act 2007 have been complied with at the point of application.

14.3.8 The Trustee’s Delegate

RHB Trustees Berhad has appointed Standard Chartered Bank Malaysia Berhad (“SCBMB”) as custodian of the quoted and unquoted investments of the Fund. The assets are held in the name of the Fund through the custodian’s wholly owned subsidiary and nominee company, Cartaban Nominees (Tempatan) Sdn Bhd. The assets are also automatically registered into the name of the Funds.

SCBMB was incorporated in Malaysia on 29 February 1984 under the Companies Act 1965 as a public limited company and is a subsidiary of Standard Chartered plc (the holding company of a global banking group). SCBMB was granted a license on 1 July 1994 under the Banking and Financial Institutions Act, 1989. SCBMB has been providing custody services for more than twenty (20) years. SCBMB has been providing sub-custody services to local investors in Malaysia since 1995.

The custodian acts only in accordance with instruction from the Trustee.

14.3.9 Disclosure on Related-Party Transactions/Conflict of Interests

There are no existing and/or proposed related party transactions involving or in connection with the Funds.

Should there be any proposed related party transaction(s) entered into by the Trustee, such transaction(s) will be on terms that there are no less favourable to the Funds, neither will it be detrimental to the interest of the Unit Holders.

14.3.10 Litigation and Arbitration

As at 30 April 2014, RHB Trustees Berhad is not engaged in any material litigation and arbitration, including those pending or threatened, and is not aware of any fact likely to give rise to any proceedings which might materially affect the business or financial position of RHB Trustees Berhad or any of its delegates.

14.4 Duties And Responsibility Of The Trustees

The Trustee’s functions, duties and responsibilities are set out in the Deed. The general function, duties and responsibility of the Trustee include, but are not limited to, the following:

(a) ActingastrusteeandsafeguardingtherightsandinterestsoftheUnitHolders;

(b) HoldingtheassetsoftheFundsforthebenefitoftheUnitHolders;and

(c) Exercising all the powers of a trustee and the powers that are incidental to the ownership of the assets of the Funds.

In respect of the application of units, the Trustee’s responsibility arises when the Fund’s assets are received in the relevant account of the Trustee for the Fund and in respect of redemption, the Trustee’s responsibility is discharged once the Fund’s asset has been delivered to the Manager.

The Trustee has covenanted in the Deed that it will exercise all due diligence and vigilance in carrying out its functions and duties, and in safeguarding the rights and interests of Unit Holders.

14.5 Trustees’ Statement Of Responsibility

The Trustees have given their willingness to assume the position as trustees of the Funds and all the obligations in accordance with the Deed, the Guidelines, securities laws and other relevant laws. The Trustees are entitled to be indemnified out of the assets of the Funds for any liability incurred by the Trustees in performing /exercising any of their powers or duties in relation to the Funds. This indemnity is in addition to any indemnity allowed by law. However, it does not extend to liabilities arising from a breach of trust or failure to show the due care and diligence required of the Trustees having regard to their powers, authorities and discretions under the Deed.


15. SALIENT TERMS OF THE DEED

15.1 Rights Of Unit Holders

A Unit Holder has the rights, among others, to the following:

● To receivedistributionsof income, participate in any increase in the valueof the units, and enjoy suchother rights andprivileges asprovidedforintheDeed;

● ToexercisetheCooling-offright(ifapplicable);● ToreceiveannualandinterimreportsoftheFunds;and● TocallforUnitHolders’meetingsandtovotefortheremovaloftheManagerortheTrusteethroughaSpecialResolution.

However, a Unit Holder would NOT have the right to the following:

● Requesttransfertohim/herofanyoftheinvestmentsorassetsoftheFunds;● Interferewithor toquestion theexerciseby theTrusteeor theManageronhis/herbehalf,of the rightsof theTrusteeas trusteeof the

investmentsoftheFunds;or● ByreasonofbeingaUnitHolder,toattendanymeetingofshareholders,stockholdersordebentureholdersortovoteortakepartinor

consent to any company or shareholders’, stockholders’ or debenture holders’ action.

15.2 Liabilities Of Unit Holders

● NoUnitHolderisliableforanyamountinexcessofthepurchasepricepaidfortheunitsasdeterminedinaccordancewiththeMasterProspectusandtheDeedatthetimetheunitswerepurchased;and

● AUnitHolder shall not beunder anyobligation to indemnify theManager and/or theTrustee in the event that the liabilities incurredby the Manager and/or the Trustee in the name of or on behalf of the Funds pursuant to and/or in the performance of the provisions of the Deed exceed the NAV of the Funds, and any right of indemnity of the Manager and/or the Trustee shall be limited to recourse to the Funds.

15.3 Maximum Fees And Charges Permitted By The Deed

15.3.1 Direct Fees And Charges

The maximum rate of direct fees and charges allowable by the Deed are as follows:

Fund NameSales Charge

(of NAV per unit)Repurchase Charge(of NAV per unit)

Conventional Funds: EquityMGF, MPF 8.00% 8sen

MVF 10.00% 1sen

MBLF 10.00% 1sen

MEIF 10.00% 1sen

MRSF, MCF, MAPR, MHF, MGCF, MUS, MIE 7.00% 7.00%MPCF, MNF, MDF 7.00% 5.00%Conventional Fund: BondMBF 0.30% 8senConventional Fund: Money MarketMMMF 7.00% 7.00%Islamic Funds: EquityMAF 8.00% 8sen

MSIF 10.00% 5.00%MAFZ, MAU 7.00% 5.00%MCS, MSAP, MSPF, MHSF 7.00% 7.00%Islamic Fund: BondMAS 0.30% 8senIslamic Fund: Money MarketMAM 7.00% 7.00%


15.3.2 Indirect Fees And Charges

The maximum rate of indirect fees and charges allowable by the Deed are as follows:

Fund NameAnnual Management Fee

(of NAV per annum)Annual Trustee Fee(of NAV per annum)

Conventional Funds: EquityMGF, MPF 1.50% 0.25%,subjecttoaminimumofRM30,000MVF 1.50% 0.08%MBLF 1.50% 0.08%MEIF 1.50% 0.08%MRSF 1.50% 0.25%,subjecttoaminimumofRM18,000MCF, MAPR, MHF, MGCF, MUS, MIE 2.50% 0.25%,subjecttoaminimumofRM18,000MPCF, MNF, MDF 1.50% 0.25%,subjecttoaminimumofRM18,000Conventional Fund: BondMBF 0.75% 0.25%,subjecttoaminimumofRM30,000Conventional Fund: Money MarketMMMF 1.50% 0.25%,subjecttoaminimumofRM18,000Islamic Funds: EquityMAF 1.50% 0.25%,subjecttoaminimumofRM30,000MSIF 2.00% 0.20%MAFZ, MAU 1.50% 0.25%,subjecttoaminimumofRM18,000

MCS, MSAP, MSPF, MHSF 2.50%0.25%,subjecttoaminimumofRM18,000

(excluding foreign custodian fees and charges)(excluding foreign custodian fees and charges)

Islamic Fund: BondMAS 0.75% 0.25%,subjecttoaminimumofRM30,000Islamic Fund: Money MarketMAM 2.50% 0.25%,subjecttoaminimumofRM18,000

15.4 Procedures To Increase The Direct And Indirect Fees And Charges

15.4.1 Sales Charge And Repurchase Charge

The Manager may not charge a sales charge/repurchase charge at a rate higher than that disclosed in the Master Prospectus unless:

● TheManagerhasnotifiedtheTrusteeofthehigherrateandthedateonwhichsuchhigherrateistobecomeeffective;● Asupplementalprospectusstatingthehigherrateisissuedthereafter;and● Suchtimeasmaybeprescribedbyanyrelevantlawshallhaveelapsedsincethesupplementalprospectusisissued.

15.4.2 Annual Management Fee And Trustee Fee

The Manager/Trustee may not charge an annual management fee/trustee fee at a rate higher than that disclosed in the Master Prospectus unless:

● TheManagerhascometoanagreementwiththeTrusteeonthehigherrate;● TheManagerhasnotifiedtheUnitHoldersofthehigherrateandthedateonwhichsuchhigherrateistobecomeeffective;● Asupplementalprospectusstatingthehigherrateisissuedthereafter;and● Suchtimeasmaybeprescribedbyanyrelevantlawshallhaveelapsedsincethesupplementalprospectusisissued.

15.4.3 Increase In Maximum Sales Charge And Annual Management Fee

The Manager may increase the maximum sales charge or annual management fee by way of:

● ObtainingapprovalinaUnitHolders’meeting;and● IssuanceofasupplementalDeed.

15.5 Permitted Expenses

Only the expenses (or parts thereof) which are directly related and necessary to the business of the Fund may be charged to the Fund. These would include (but are not limited to) the following:

● Commissions/fees paid to brokers in effecting dealings in the investments of theFund, shownon the contract notes or confirmationnotes;

● TaxesandotherdutieschargedontheFundbytheGovernmentand/orotherauthorities;● Costs,feesandexpensesproperlyincurredbytheAuditor;● Costs,feesandexpensesincurredforthevaluationofanyinvestmentoftheFundbyindependentvaluersforthebenefitoftheFund;● Costs,feesandexpensesincurredforanymodificationoftheDeedsavewheresuchmodificationisforthebenefitoftheManagerand/or

theTrustee;● Costs, fees and expenses incurred for anymeeting of theUnitHolders savewhere suchmeeting is convened for the benefit of the

Managerand/ortheTrustee;


● Costs,commissions,feesandexpensesofthesale,purchase,insuranceandanyotherdealingofanyassetoftheFund;● Costs, fees and expenses incurred in engaging any specialist approved by theTrustee for investigating or evaluating any proposed

investmentoftheFund;● Costs,feesandexpensesincurredinengaginganyvaluer,adviserorcontractorforthebenefitoftheFund;● Costs,feesandexpensesincurredinthepreparationandauditofthetaxation,returnsandaccountsoftheFund;● Costs,feesandexpensesincurredintheterminationoftheFundortheremovaloftheTrusteeortheManagerandtheappointmentofa

newtrusteeormanagementcompany;● Costs, fees and expenses incurred in relation to any arbitration or other proceedings concerning theFund or any asset of theFund,

including proceedings against the Trustee or the Manager by the other for the benefit of the Fund (save to the extent that legal costs incurredforthedefenceofeitherofthemarenotorderedbythecourttobereimbursedbytheFund);

● Remunerationandout-of-pocket expensesof the independentmembersof the InvestmentCommitteeof theFund,unless theManagerdecidesotherwise;

● Costs,feesandexpensesdeemedbytheManagertohavebeenincurredinconnectionwithanychangeortheneedtocomplywithanychange or introduction of any law, regulation or requirement (whether or not having the force of law) of any governmental or regulatory authority;and

● ThecostsofprintinganddespatchingtoUnitHoldersthereports,accountsoftheFund,taxcertificates,distributionwarrants,noticeofmeeting of Unit Holders, newspapers advertisements and any other such expenditure as may be approved by the Trustee.

15.6 Removal, Retirement And Replacement Of The Manager

The Manager may be removed by the Trustee, on the grounds that:

● TheManagerhasfailedorneglectedtocarryoutitsdutiestothesatisfactionoftheTrustee,andtheTrusteeconsidersthatitwouldbeinthe interests of Unit Holders for it to do so after the Trustee has given notice to it of that opinion and the reasons for that opinion, and has considered any representations made by the Manager in respect of that opinion, and after consultation with the relevant authorities and withtheapprovaloftheUnitHoldersbywayofaSpecialResolution;

● TheManager is inbreachofanyof itsobligationsordutiesunder theDeedor therelevant laws,orhasceasedtobeeligible tobetheManager under the relevant laws, unless expressly directed otherwise by the relevant authorities, or

● TheManagerhasgoneintoliquidation,exceptforthepurposeofamalgamationorreconstructionorsomesimilarpurpose,orhashadareceiver appointed or has ceased to carry on business.

The Manager may also have the power to retire in favour of some other corporation by giving to the Trustee the required notice in writing of its desire to do so, or such lesser time as the Manager and the Trustee may agree upon, and subject to the fulfilment of the following conditions:

● TheretiringManagershallappointsuchcorporationbywritingunderthesealoftheretiringManagerasthemanagementcompanyoftheFundinitssteadandassignandtransfertosuchcorporationallitsrightsanddutiesasmanagementcompanyoftheFund;

● SuchcorporationshallenterintosuchDeedorDeedsasarereferedtointheMasterDeed;● UponthepaymenttotheTrusteeofallsumsduefromtheretiringManagertotheTrusteehereunderatthedateofsuchretirement,the

retiring Manager shall be absolved and released from all further obligations hereunder but without prejudice to the rights of the Trustee or any Unit Holder or other person in respect of any act or omission on the part of the retiring Manager prior to such retirement, and the new management company may and shall thereafter exercise all the powers and enjoy all the rights and shall be subject to all the duties andobligationsoftheManagerhereunderasfullyasthoughsuchnewmanagementcompanyhadbeenoriginallyapartytothisDeed;

15.7 Power Of The Manager To Remove/Replace The Trustee

The Manager shall take all reasonable steps to replace the Trustee as soon as practicable after becoming aware that:

● TheTrusteehasceasedtoexist;● TheTrusteehasnotbeenvalidlyappointed;● TheTrusteeisnoteligibletobeappointedortoactastrusteeunderanyrelevantlaw;● TheTrusteehasfailedorrefusedtoactastrusteeinaccordancewiththeprovisionsorcovenantsofthisDeedoranyrelevantlaw;● AreceiverhasbeenappointedoverthewholeorasubstantialpartoftheassetsorundertakingoftheTrusteeandhasnotceasedtoact

underthatappointment;● ApetitionhasbeenpresentedforthewindingupoftheTrustee(otherthanforthepurposeofandfollowedbyareconstruction,unless

duringorfollowingsuchreconstructiontheTrusteebecomesorisdeclaredinsolvent);or● TheTrusteeisunderinvestigationforconductthatcontravenestheTrustCompaniesAct1949,theTrusteeAct1949,theCompaniesAct

1965 or any relevant law.

15.8 Removal, Retirement And Replacement Of The Trustee

The Trustee may retire upon giving the required 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 Securities Commission Malaysia.

The Trustee may be removed and another trustee may be appointed by Special Resolution of the Unit Holders at a Unit Holders’ meeting convened in accordance with the Deed or as stipulated in the Capital Markets and Services Act 2007.

15.9 Power Of The Trustee To Remove/Replace The Manager

The Manager may be removed by the Trustee, on the grounds that:

● TheManagerhasgoneintoliquidationexceptforthepurposeofamalgamationorreconstructionorsomeotherpurposeapprovedbytherelevantauthorities;

● TheManagerhashadareceiverappointedorhasceasedtocarryonbusiness;


● TheManager is in breach of its obligations under theDeed, theAct or theSC’sGuidelines onUnitTrust Funds or it has failed orneglected to carry out its duties to the satisfaction of the Trustee, and the Trustee considers that it would be in the interests of Unit Holders for it to do so after the Trustee has given notice to it of that opinion and the reasons for that opinion, and after consultation with theSCandwiththeapprovaloftheUnitHoldersbywayofaSpecialResolution;and

● TheManagerhasceasedtobeapprovedbytheSCtobetheManageroftheFund.

15.10 Termination Of The Fund

Termination of the Fund by the Manager

● TheManagermay determine the trust andwind up theFund in accordancewith the relevant laws orwith the prior approval of therelevant authorities

Termination of the Fund by the Trustee

The Fund may be terminated or wound up if a Special Resolution is passed at a Unit Holders’ meeting should the following events occur:

● if theManagerhasgone into liquidation,except for thepurposeof reconstructionoramalgamationupon termspreviouslyapproved inwritingbytheTrusteeandtherelevantauthorities;

● if,intheopinionoftheTrustee,theManagerhasceasedtocarryonbusiness;or● if, intheopinionoftheTrustee, theManagerhastotheprejudiceofUnitHoldersfailedtocomplywiththeprovisionsofthisDeedor

contravened any of the provisions of any relevant law

15.11 Meeting Of Unit Holders

A Unit Holders’ meeting may be called by the Manager, Trustee and/or Unit Holders. Any such meeting must be convened in accordance with the Deed and/or the Guidelines.

Every question arising at any meeting shall be decided in the first instance by a show of hands unless a poll is demanded or if it be a question which under the Deed requires a Special Resolution, in which case a poll shall be taken. On a show of hands every Unit Holder who is present in person or by proxy shall have one vote.

The quorum for a meeting of Unit Holders of the Fund is five (5) Unit Holders of the Fund, whether present in person or by proxy, provided always that for a meeting which requires a Special Resolution the quorum for that meeting shall be five (5) Unit Holders, whether present in personorbyproxy,holding inaggregateat least twentyfivepercent (25%)of theunits in issuefor theFundat the timeof themeeting. If theFund has five (5) or less Unit Holders, the quorum required shall be two (2) Unit Holders, whether present or by proxy, and if the meeting requires a Special Resolution the quorum for that meeting shall be two (2) Unit Holders, whether present in person or by proxy, holding in aggregateatleasttwentyfivepercent(25%)oftheunitsinissuefortheFundatthetimeofthemeeting.


16. CONFLICT OF INTEREST

The Manager has in place policies and procedures to deal with any conflict of interest situations that may arise such as the full disclosure of securities dealing by all its relevant employees to its compliance officer in the compliance unit for verification. All relevant employees are required to obtain Director’s approval before they are able to deal for their own account. However, employees of the Manager are generally discouraged from participating in any personal dealing of securities.

The Directors and Investment Committee members should avoid conflicts of interest arising, or if conflicts arise, should ensure that the Funds are not disadvantaged by the transaction concerned. Any transaction carried out for or on behalf of the Funds should be executed on terms that are the best available to the Funds and which are no less favourable to the Funds than at an arm’s length transactions between independent parties. In the event that any of the Directors or Investment Committee members is directly or indirectly involved, he or she would have to abstain from being involved with any decision-making process of the said transaction. If in doubt, the Trustee is to be empowered to act in accordance with the Deed or Guidelines and securities laws applicable at that point in time.

The Manager has also ensured that there are adequate segregation of duties in its company to ensure proper checks and balances are in place in the areas of fund management, sales administration and marketing.


17. TAX ADVISER’S LETTER ON TAXATION OF THE FUNDS & UNIT HOLDERS

The Board of DirectorsManulife Asset Management Services Berhad10th Floor, No. 566 Jalan Ipoh51200 Kuala Lumpur

Dear Sirs,

Taxation Of MANULIFE INVESTMENT GROWTH FUND, MANULIFE INVESTMENT PROGRESS FUND, MANULIFE INVESTMENT BOND FUND, MANULIFE INVESTMENT AL-FAID, MANULIFE INVESTMENT AS-SAAD, MANULIFE INVESTMENT SYARIAH INDEX FUND, MANULIFE INVESTMENT VALUE FUND, MANULIFE INVESTMENT BALANCED FUND, MANULIFE INVESTMENT EQUITY INDEX FUND, MANULIFE INVESTMENT REGULAR SAVINGS FUND, MANULIFE INVESTMENT MONEY MARKET FUND, MANULIFE INVESTMENT PACIFIC FUND, MANULIFE INVESTMENT-ML FLEXI FUND, MANULIFE INVESTMENT AL-FAUZAN, MANULIFE INVESTMENT DIVIDEND FUND, MANULIFE INVESTMENT AL-UMRAN, MANULIFE INVESTMENT-CM FLEXI FUND, MANULIFE INVESTMENT AL-MA’MUN, MANULIFE INVESTMENT ASIA-PACIFIC REIT FUND, MANULIFE INVESTMENT-HW FLEXI FUND, MANULIFE INVESTMENT-CM SHARIAH FLEXI FUND, MANULIFE INVESTMENT SHARIAH ASIA-PACIFIC FUND, MANULIFE INVESTMENT GREATER CHINA FUND, MANULIFE INVESTMENT U.S. EQUITY FUND, MANULIFE INVESTMENT INDONESIA EQUITY FUND, MANULIFE INVESTMENT SHARIAH PROGRESS FUND, MANULIFE INVESTMENT-HW SHARIAH FLEXI FUND (“the Funds”) AND Unit Holders

This letter has been prepared for the inclusion in this Master Prospectus to be dated 1 September 2014 in connection with the offer of units in the Funds.

Taxation Of the Funds

The Funds will be regarded as residents for Malaysian tax purpose since the Trustees of the Funds are residents in Malaysia.

There are no distinctive characteristics of the funds above in terms of participation in future contracts or investment in foreign securities. Nonetheless, Manulife Investment Al-Faid, Manulife Investment As-Saad, Manulife Investment Syariah Index Fund, Manulife Investment Al-Fauzan, Manulife Investment Al-Umran, Manulife Investment Al-Ma’mun, Manulife Investment-CM Shariah Flexi Fund, Manulife Investment Shariah Asia-Pacific Fund, Manulife Investment Shariah Progress Fund and Manulife Investment-HW Shariah Flexi Fund will only invest in securities which comply with Shariah requirements and as approved by the Shariah Advisory Council of the Securities Commission and /or Islamic Banking and Finance Institute Malaysia Sdn Bhd.

In addition, the activities of the Funds are governed by the Securities Commission Act 1993 and the guidelines and regulations set by the Securities Commission on Unit Trusts.

The taxation of income of the Funds is subject to the provisions of the Malaysian Income Tax Act, 1967 (“the Act”) and in particular Section 61 and 63B thereof which deal specifically with the taxation of trust bodies in Malaysia.

Subject to certain exemptions, the income of the Funds derived from interest income and other investment income is liable to Malaysian income taxatthecurrentrateof25%.

Gains from the realization of investments by the Funds will not be subject to income tax. However, with effect from 1 January 2014, chargeable gains from disposal of investment in shares of real property companies within 3 years and from the fourth year thereafter from the date of acquisitionwill be subject toRealPropertyGainsTax at tax rate of 30%and a gradual scale rate of 20% to5% respectively.A real propertycompany is a controlled company that owns or acquired 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 that does not have more than 50 members and is controlled by not more than 5 persons.

Under Section 2(7) of the Malaysian Income Tax Act 1967, any reference to interest shall apply, mutatis mutandis, to gains or profits received and expenses incurred, in lieu of interest, in transactions conducted in accordance with the principles of Shariah.

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

Exempt Income

The Funds will not be subject to further income tax on Malaysian dividends income received under the single-tier dividends system.

Any income received by the Funds from a Sukuk Issue which has been issued by the Malaysian Global Sukuk Inc will be exempt from tax.

Any income received by the funds from a Sukuk Ijarah, other than convertible loan stock issued in any currency by 1Malaysia Sukuk Global Berhad will be exempt from tax.

Any gains or profits received by the funds, in lieu of interest, derived from the sukuk wakala under the concept of Al-Wakala Bil Istismar other than convertible loan stock, issued in any currency by Wakala Global Sukuk Berhad will be exempt from tax.


Interest income or profit earned by the Funds from the following investments are exempted from tax:-(i) SecuritiesorbondsissuedorguaranteedbytheGovernment;(ii) DebenturesorIslamicSecurities,otherthanconvertibleloanstock,approvedbytheSecuritiesCommission;(iii) BonSimpananMalaysiaissuedbyCentralBankofMalaysia;(iv) BanksandfinancialinstitutionslicensedundertheBankingandFinancialInstitutionsAct1989ortheIslamicBankingAct1983;(Both

Acts have been repealed with the coming into force of the Financial Services Act 2013 and Islamic Financial Services Act 2013 on 30 June 2013 and exemption to tax is subject to the amendments to the Income Tax Act 1967).

(v) Bonds or securities issued by Pengurusan Danaharta Nasional Berhad.(vi) Islamic securities including sukuks originating from Malaysia, other than convertible loan stock, issued in any currency other than

Ringgit and approved by the Securities Commission or the Labuan Offshore Financial Services Authority.

Discounts or profits earned by the Funds in respect of investments in Malaysia as specified in items (i), (ii) and (iii) above are also exempted from income tax. However, such income may be subject to tax in the country from which it is derived.

Finally, income received by the Funds from foreign sources will be exempted from Malaysian income tax. However, such income may be subject to tax in the country from which it is derived.

Tax Allowable Expenses

Subject to the single-tier dividend system effective from 1 January, 2008 where expenses relating to the single-tier dividend income are disregarded, expenses incurred wholly and exclusively in the production of gross income are allowable as deductions under Section 33(1) of the Act. Pursuant to Section 63B of the Act, expenses such as manager’s remuneration, expenses on maintenance of register of Unit holders, share registration expenses, secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage which are not allowed underthegeneraldeductionrules,areallowedasaspecialdeductionbasedonaformulasubjecttoaminimumof10%andamaximumof25%ofsuch permitted expenses.

Taxation Of Unit Holders

Unit holders will be taxed on an amount equivalent to their share of the total taxable income of the Funds to the extent that this is distributed to them. The income distribution from the Funds will carry with it a tax credit in respect of the tax paid by the Funds. Unit holders will be entitled to utilize the tax credit as a set off against the tax chargeable on the income distribution received by them. No additional withholding tax will be imposed on the income distribution from the Funds.

Individuals and other non-corporate Unit holders who are tax residents in Malaysia will be subject to income tax at graduated scale rates ranging from0%to26%.

Individualandothernon-corporateUnitholderswhoarenottaxresidentsinMalaysiawillbesubjecttoincometaxat26%.

ResidentornonresidentcorporateUnitholdersinMalaysiawillbesubjecttoincometaxat25%.ResidentcorporateUnitholderswithapaidupordinarysharecapitalofRM2.5millionorlessonthefirstdayofthebasisperiodwillbesubjecttoincometaxat20%onthefirstRM500,000/-chargeableincomeandonchargeableincomeexceedingRM500,000/-willbesubjecttoincometaxatthecurrentrateof25%.However,the20%incometaxratewouldnotapplytocorporateUnitholdersifmorethan50%ofitspaidupordinarysharecapitalisdirectlyorindirectlyownedby a related company which has a paid up ordinary share capital of more than RM2.5 million on the first day of the basis period or vice versa or morethan50%ofthepaidupordinarysharecapitalofbothcompaniesaredirectlyorindirectlyownedbyanothercompany.

The tax credits attached to the distribution of income will be available to set off against the tax liabilities of all the Unit holders.

Non-resident unit holders may also be subject to taxes in their respective tax jurisdictions depending on the provisions of the relevant tax legislation and any existing double taxation agreement with Malaysia. The Malaysian tax suffered may be allowed as a tax credit in their respective tax jurisdictions.

The distribution of gains arising from the realization of investments of the Funds are exempted from tax in the hands of Unit holders. Any gains realized by Unit holders (other than dealers in securities, insurance companies or financial institutions) on the transfer or redemption of the units are generally treated as capital gains and will not be subject to Malaysian income tax. Unit holders electing to receive their income distribution by way of investment in the form of new units out of their income distribution after tax will be regarded as having purchased the new units out of their income distribution after tax.

The distribution of tax exempt and single-tier dividend income by the Funds will not be subject to tax in the hands of the Unit holders. Distribution of tax exempted foreign income by the Funds is exempt from tax in the hands of Unit holders.

Split units distributed by the Funds are not taxable in the hands of the Unit holders.

The above statements are based on current Malaysian tax laws and provisions. We recommend Unit holders to seek professional advice on their respective tax positions.

Yours faithfullyfor and on behalf ofLMC TAXATION SERVICES SDN BHD

Leong Siew HoongDirector


18. STATEMENT OF CONSENT

The consent of the Trustees and their delegates, the Fund Managers, the auditor, the banker, the solicitor and the company secretary to the inclusion in this Master Prospectus of their names in the manner and context in which such names appear have been given before the issue of this Master Prospectus and have not subsequently been withdrawn.

The consent of the Tax Adviser to the inclusion in this Master Prospectus of its name and the Tax Adviser’s Letter in the manner, context and form in which such name and Letter appear has been given before the issue of this Master Prospectus and has not subsequently been withdrawn.


19. ADDITIONAL INFORMATION

19.1 Variation / Exemption From The SC’s Guidelines

Clause 10.17 (a)According to Clause 10.17 (a) of the SC’s Guidelines on Unit Trust Funds, the Manager should pay the proceeds from the repurchase of units to the Unit Holders within ten (10) days of receiving a repurchase request. The Manager has sought and obtained the SC’s approval for a variation to Clause 10.17 (a) of the SC’s Guidelines on Unit Trust Funds for MVF, MEIF, MBLF and MSIF. The Manager will make such payment within fourteen (14) days (as against ten (10) days) of receiving a repurchase request if the value of that redemption request on any Business Day in respectofanyFundequalsorexceeds20%ofthatparticularFund’sNAV.Thisvariationissubject tothepriorwrittenconsentofallregisteredUnitHolders,whohold20%ormoreof thatparticularFund’sNAV,before implementationof thesaidvariation.The letterofconsentshallbeaddressed to the Trustee of the Funds. The inclusion of this variation is to enable the Manager more opportunities to liquidate investments of the Fund at reasonable prices without causing a huge loss in value to the Fund which will adversely affect the Unit Holders of that Fund.

Clause 10.19Further to the variation to Clause 10.17 (a) of the SC’s Guidelines on Unit Trust Funds, the Manager has also sought and obtained the SC’s approval for a variation to Clause 10.19 of the same Guidelines for MVF, MEIF, MBLF and MSIF. Clause 10.19 stipulates that the repurchase price for units should be based on the NAV per unit of the Fund as at the next valuation point after the redemption request is received by the Manager. The SC has allowed the Manager to pay the redemption proceeds, if the value of a repurchase request received on any Business Day in respectofanyFundequalsorexceeds20%ofthatparticularFund’sNAV,onastaggeredmannerbasedontherepurchaseprice,asandwhentheFund’sinvestmentsareliquidated.ThisvariationissubjecttothepriorwrittenconsentofallregisteredUnitHolders,whohold20%ormoreofthat particular Fund’s NAV, before implementation of the said variation. The letter of consent shall be addressed to the Trustee of the Funds.

Illustration

Let’s assume the liquidation of assets (investments) takes three days to complete. The following are details on computation of your redemption proceeds based on:-

(i) Fund size (units) 10,000,000 (NAV) RM10,000,000 NAV per unit RM1.00

(ii) Redemption requests received (on Business Day 1): InvestorA 2,000,000units(20%ofNAV) InvestorB 500,000units(5%ofNAV)

Business DayCash Available for Redemption(RM)

NAV per Unit(RM)

Total Units Available for Redemption

Redemption Quantum / Proceeds Payment of Redemption Proceeds to Investor

Investor A Investor B

Day 1 1,000,000 1.00 1,000,000 500,000 units /RM500,000

500,000 units /RM500,000

By Business Day 10

Day 2 990,000 0.9879 1,002,126 1,000,000 units /RM987,900

By Business Day 11

Day 3 510,000 1.0129 503,505 500,000 units /RM506,450

By Business Day 12

2,000,000 units /RM1,994,350

500,000 units /RM500,000

As illustrated, Investor A’s redemption request will be based on the repurchase price at three valuation points on three days, instead of just one valuation on the day the request is received by the Manager.

Asdemonstrated in the case of InvestorB, redemption requests of less than20%of theFund’sNAVdonot trigger the variations to theSC’sGuidelines. Hence, payment of redemption proceeds to the investor concerned will be made within ten (10) days of receiving the redemption request.

It should be noted that the number of tranches for liquidating investments of the Fund will depend on market conditions, the guiding principle being that such liquidation is effected at reasonable prices without undue and adverse impact on the Fund’s value and hence, its Unit Holders.

19.2 Monitoring Developments In The Funds

Apart from the regular Statements and Financial Reports, Unit Holders can keep abreast of developments in the Funds and monitor the value of their investments by referring to the national Bahasa Malaysia and English newspapers. The Funds’ NAV per unit will be published in these newspapers every weekday.The Manager will not be held liable for any error or omission in the price published as this is beyond the Manager’s control. Unit Holders can also login to the Manager’s website at www.manulifeinvestment.com.my


19.3 Anti-Money Laundering Policies And Procedures

In order to comply with the Anti-Money Laundering Act 2001 (‘AMLA’) and the relevant policies, procedures, guidelines and/or regulations aimed at the prevention of money laundering, the Manager will be required to obtain satisfactory evidence of customer’s identity and have effective procedures for verifying the bona fides of customers. The Manager conducts on-going due diligence and scrutiny of customers’ identity and their investment objectives which may be undertaken throughout the course of the business relationship to ensure that the transactions being conducted are consistent with the Manager’s knowledge of the customer, its business and its risk profile.

The Manager also reserves the right to request such information as are necessary to verify the source of the payment. The Manager may refuse to accept the application and the subscription monies if an applicant delays in producing or fails to produce any information required for the purposes of verification of identity or source of funds.

A transaction or a series of transactions shall be considered as ‘suspicious’ if the transaction in question is inconsistent with the customer’s known transaction profile or does not make economic sense. Suspicious transactions shall be submitted directly to the Financial Intelligence Unit of Bank Negara Malaysia.

19.4 Manager’s Discretion

As provided for in the Deed, the Manager has the absolute discretion to accept or reject, in whole or in part, any application for units.

19.5 Representations

Units of the Fund are offered to investors and Unit Holders on the basis of the information contained in this Master Prospectus and the Deed. Any other information or representation made by any person must be regarded as unauthorised and, accordingly, should not be relied upon.

19.6 The Deed

The Deed may be viewed free of charge at the offices of the Manager and/or the Trustee during normal business hours. Copies of the Deed may be obtained from the Manager and/or the Trustee at a cost of RM50.00 each.

The Trustee and the Manager may agree to modify the Deed by a supplemental deed, provided that in the opinion of the Trustee, such modification:

i. Does not materially prejudice the interests of the Unit Holders, does not operate to release to any material extent the Trustee or the Manager from any responsibility under the Deed, and will not result in an increase in the amount of costs and charges payable out of the Funds’ assets (except for any fees and expenses incurred in relation to the preparation of the supplemental deed) provided that such opinioniscertifiedinastatementbytheTrusteeandtheManager;

ii. Isnecessaryinordertocomplywithanyfiscal,statutoryorregulatoryrequirement;oriii. Is made to correct a manifest error.

In all other cases, a modification requires the sanction of a resolution passed by two-thirds of the Unit Holders at a meeting convened for that purpose. The SC may nevertheless require that such a resolution be obtained if it considers that the modification prejudices the interests of the Unit Holders.

19.7 Customer Service

Unit Holders may seek clarification on their investments from the Manager’s Customer Service personnel at (03) 6256-8288 or Facsimile No. (03) 6256 8298 during normal office hours. Inquiries can also be made through our e-mail at [email protected]. Alternatively, investors may visit the Manager’s office during office hours at 10th Floor, No. 566 Jalan Ipoh, 51200 Kuala Lumpur.


20. DOCUMENTS AVAILABLE FOR INSPECTION

The following documents or copies thereof are available for inspection, without charge for a period of not less than twelve (12) months, at the registered office during normal business hours:

i. TheDeedoftheFund;ii. Each contract disclosed in the Master Prospectus and, in the case of contracts not reduced into writing, a memorandum which gives full

particularsofthecontracts;iii. ThelatestannualandinterimreportsoftheFund;iv. The audited financial statements of the Fund and the Manager for the current financial year (where applicable) and the last three financial

yearsorfromthedateofestablishment/incorporation,iflessthanthreeyears,precedingthedateoftheMasterProspectus;v. All reports, letters or other documents, valuations and statements by any expert, any part of which is extracted or referred to in the

Master Prospectus. Where a summary expert’s report is included in the Master Prospectus, the corresponding full expert’s report should bemadeavailableforinspection;

vi. WritandrelevantcausepapersforallcurrentmateriallitigationandarbitrationdisclosedintheMasterProspectus;andvii. All consents given by experts disclosed in the Master Prospectus.


21. DIRECTORS’ DECLARATION

This Master Prospectus dated 1 September 2014 has been reviewed and approved by us, the directors of Manulife Asset Management Services Berhad and we collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable enquiries, we confirm to the best of our knowledge and belief, there are no false or misleading statements, or omission of other facts which would make any statement in this Master Prospectus false or misleading.

DIRECTORS:

Datuk Seri Panglima Mohd Annuar bin Zaini

Dato’ Md Agil bin Mohd Natt

Edmond Cheah Swee Leng

Michael Floyd Dommermuth

Chong Soon Min (Jason)

Wong Boon Choy


22. NETWORK OF MANULIFE ASSET MANAGEMENT SERVICES BERHAD

MAIN OFFICE10th Floor

No. 566, Jalan Ipoh,51200 Kuala LumpurTel: (03) 6256 8288Fax: (03) 6256 8298

Email: [email protected]: www.manulifeinvestment.com.my

BRANCHES

West Malaysia

IPOHNo. 4A,Persiaran Greentown 4, Block CGreentown Avenue30250 Ipoh, PerakTel: (05) 254-2428Fax: (05) 254-2429

PENANGMenara Zurich1.05, 1st Floor170, Jalan Argyll10050 PenangTel: (04) 226-6310Fax: (04) 229-6428

JOHOR BAHRUNo. 1-01Jalan Setia Tropika 1/15Taman Setia Tropika81200 Johor Bahru, JohorTel: (07) 234-5871Fax: (07) 234-4620

KLANG50-1 Lorong Batu Nilam 4BBandar Bukit Tinggi41200 KlangSelangor Darul EhsanTel: (03) 3318-6088Fax: (03) 3318-4011

SEREMBAN160-2 Taipan SenawangJalan Taman Komersil Senawang 170450 SerembanNegeri SembilanTel: (06) 671-5019Fax: (06) 678-0016

SG PETANILot 88, No. 17, 2nd FloorJalan Perdana Heights 2/2Perdana Heights08000 Sg Petani, KedahTel: (04) 423-3233Fax: (04) 423-3233

East Malaysia

KOTA KINABALULot J-60-2, Block J, 2nd Floor,Signature Office, KK Times Square88100 Kota KinabaluSabahTel: (088) 486-671 / (088) 486-672Fax: (088) 486-670

KUCHINGNo. 63 & 65, 2nd Floor,Jalan Tun Jugah,93350 Kuching, SarawakTel: (082) 593-380Fax: (082) 593-382

MIRILot 2468 – 2470, 2nd FloorJalan Boulevard UtamaBoulevard Commercial Centre98000 MiriSarawakTel: (085) 426-220 / (085) 428-220Fax: (085) 424-220

SANDAKANBlock J, Lot 70, Ground Floor,Bandar Pasaraya,Batu 4, Jalan Utara,90000 Sandakan,Sabah.Tel: (089) 220-220 / (089) 229 045Fax: (089) 226-868

SERVICE CENTRES

DATARAN SUNWAY26-2 & 28-2, Jalan PJU 5/8Dataran SunwayKota Damansara47810 Petaling JayaSelangorTel: (03) 6140-8101 / (03) 6140-8102Fax: (03) 6140-8103

MELAKA87-1 & 87-2, Jalan Melaka Raya 25Taman Melaka Raya 175000 MelakaTel: (06) 281-3866Fax: (06) 282-0587

TR-D Form

REQUEST FOR ACCOUNT NO.

REPURCHASE (Please complete A, B and D ) MPC

TRANSFER (Please complete A, C and D)

NON-EPF EPF

A ADMINISTRATOR / EXECUTOR

NRIC NO. (New) - - NRIC (Old) /PASSPORT NO.

NAME (As per NRIC)

MAILING ADDRESS

POSTCODE

CONTACT NO. (R) - (H/P) -

(O) - (FAX) -

being the Administrator / Executor of the estate of the late (name)authorise you to process the following to me.

B REPURCHASE REQUEST

REPURCHASE INSTRUCTION:(State the no. of units or ALL)

FUND . UNITS

FUND . UNITS

FUND . UNITS

MODE TO RELEASE REPURCHASE CHEQUEi) Please bank into my/our account below: "Please enclose a copy of your bank passbook, validated bank-in-slip or bank statement".

MBB / RHB BRANCH BANK ACCOUNT NO.

The bank account holder(s) must be the repurchase cheque payee(s)

ii) BY NORMAL MAIL iii) BY HAND MAMSB BRANCH

COURIER *

REGISTERED MAIL * (*Charges will be imposed )

C TRANSFER REQUEST

TRANSFER FROM(State the no. of units or ALL)

FUND . UNITS

FUND . UNITS

FUND . UNITS

TRANSFER TO EXISTING ACCOUNT NO. NEW ACCOUNT(Please fill up Account Opening Form )

NAME OF TRANSFEREE(S)

RELATIONSHIP

D SIGNATURE(S)

Signature of Administrator / Executor Date Signature of Administrator / Executor

Submitted by: TRANSACTION NO.

Walk-in Applicant

Witnessed by MAMSB Staff(Name, signature of staff and branch stamp) Remarks:

UT Adviser (Name, Code and Contact No.)

Remarks: Verified by / Date:

Manulife Asset Management Services Berhad (834424-U)

TRANSACTION REQUEST FOR DECEASED ACCOUNT

For office use only

10th Floor, No. 566, Jalan Ipoh, 51200 Kuala Lumpur. Tel: (03) 6256-8288 Fax: (03) 6256-8298 Email: [email protected] Website: www.manulifeinvestment.com.my

Branch stamp

Date Received

MAMSB/OPA/TR-D/01/0914

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MAMSB/OPA/TR/01/0814

TR Form TRANSFER FORM

ACCOUNT NO. � � NON-EPF EPF �� MPC �

A � PRINCIPAL HOLDER PARTICULARS

NRIC NO. (New) - - � � � � � NRIC (Old) / PASSPORT NO. � � � � �

NAME (As per NRIC) � � � B JOINT HOLDER PARTICULARS

NRIC NO. (New) - - � � � � � NRIC (Old) / PASSPORT NO. � � � � �

NAME (As per NRIC) � � � C CORPORATE PARTICULARS

ORGANISATION NAME � � � REGISTRATION NO. � � � CONTACT PERSON � � � D TRANSFER REQUEST

TRANSFER FROM ( State the no. of units or ALL) � TRANSFER TO __________________________________ FUND . UNITS � EXISTING ACCOUNT NO.:

__________________________________ FUND . UNITS � � __________________________________ FUND . UNITS �

__________________________________ FUND . UNITS �

__________________________________ FUND . UNITS � � __________________________________ FUND . UNITS � �

NAME OF TRANSFEREE(S) : ___________________________________________________________________________________________________________

RELATIONSHIP : _________________________________________________________________________________________ (Please enclose supporting documents)

E SIGNATURE OF UNIT HOLDER(S) / AUTHORISED SIGNATORY(IES) (Similar to MAMSB’s record)

I/ We AGREE that MAMSB accepts this Transfer request subject to the Terms and Conditions and in accordance with the relevant Deeds. Signature of Principal Holder/ Authorised Signatory(ies) Date Signature of Joint Holder/ Authorised Signatory(ies)

For Office Use Only

Submitted by: � � � TRANSACTION NO. : Walk-in Unit Holder � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

��Principal Holder� ��Joint Holder� ��Both Holders� � � � � � � � � � � � � � � � � � � � �

Witnessed by MAMSB Staff � � � � � � � � � � � � � Remarks : � � � � � � � � � � � � �

(Name, signature of staff and branch stamp) � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

UT Adviser (Name, Code and Contact No.) � � � � � � � � � � � � � � � ��Verified by / Date : � � � � � � � � � � �

Remarks : ��

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TERMS AND CONDITIONS

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NEW ACCOUNT (Please fill up the Account Opening Form)

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1. Transfer of units can only be done to person(s) related to the unit holder(s). 2. Documents required include a completed Transfer Form, a photocopy of NRIC

of transferor and transferee, documentations to support relationship, plus an Account Opening Form with Pre-Investment (PI) Form if the transferee is a first time investor of Manulife Asset Management Services Berhad (MAMSB).

3. A RM3.00 charge will be deducted for the transfer. 4. Request for transfer is not applicable for EPF scheme. 5. For partial transfer, please leave the minimum balance of units required to

maintain your funds account. 6. MAMSB shall not be held liable for any arrangement not contained in the

request that may subsist between the Transferor(s) and Transferee(s). 7. MAMSB reserves the rights to off-set and/or deduct any amount from the

transfer amount that may be owed by the unit holder(s) to MAMSB.

�� For full transfer of funds with Regular Investment Instruction, please advise the bank to cancel it immediately.�

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�� For Regular Investment to be continued in the new account, a new auto debit form is required to be submitted.�

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�� The unit holder signature(s) on the Transfer Form must be the same with the “Authority To Operate Account” and the specimen signatures(s) in MAMSB’s record. �

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�� For more information on transfer, please refer to the relevant Prospectus��

RIGHTS OF MANAGER

The Manager reserves the right to accept or reject any application in whole or part thereof without assigning any reasons. The unit holder shall indemnify and shall keep MAMSB fully indemnified against all losses, damages, fees, costs, charges and expenses which MAMSB may sustain or incur and which shall have arisen either directly or indirectly out of or in connection with carrying out this request.

Any inconsistency between the terms and conditions and prospectus(es), the later will prevail. If you require further clarification, please contact your personal UT Adviser, our branch nearest to you or our Customer Service at:

Manulife Asset Management Services Berhad (834424-U) 10th Floor, No. 566 Jalan Ipoh, 51200 Kuala Lumpur. Tel: (03) 6256 8288 Fax: (03) 6256 8298 Email: [email protected] Website: www.manulifeinvestment.com.my

MSI Form

Account No.: Effective Date:

Name of Principal Holder (as per NRIC)

NRIC No. (New) - -

NRIC No. (Old) / Passport No.

Name of Joint Holder (as per NRIC)

1

2

3

4

5

6

7

8

9

10

I hereby request you to:

stop my monthly switching

Signature of Applicant / Authorised Signatory(ies) Date Signature of Joint Applicant / Authorised Signatory(ies)

UT Adviser (Name) Remarks :

UT Adviser Code. Checked by / date:

UT Adviser Contact No. Verified by / date:

SIGNATURE OF APPLICANT (S) / AUTHORISED SIGNATORY (IES) (Similar to MAMSB's record)

I/We have read and agree to the Terms and Conditions as specified overleaf. This instruction will remain effective until further notice from me/us.

FOR OFFICE USE ONLYFOR UT ADVISER USE

CANCEL / STOP MONTHLY SWITCHING INSTRUCTION (MSI)

FUNDUNITSFUND

MONTHLY SWITCHING INSTRUCTION FORM

UNITHOLDER'S PARTICULARS

SWI TO

DD / MM / YY

MONTHLY SWITCHING INSTRUCTION (this shall supersede any existing MSI in similar account )

SWI FROM

Date Received

MAMSB/OPA/MSI/01/0914

TERMS & CONDITIONS FOR MONTHLY SWITCHING

1. Monthly Switching is transacted on 15th of every month.

2. All Applications must be submitted to MAMSB by the 5th of the month. Any Applications received after the 5th of the monthshall be processed on the following month.

3. There will be no Switching Fee for monthly switching transactions.

4. Unit Holder may select to cancel / replace the monthly switching instruction by 5th of the month and new submission requestfor Monthly Switching shall supersede any other earlier request in the similar accounts.

5. If the units in the accounts are insufficient for three (3) consecutive months, the request shall be considered null and void for all subsequent months.

6. The Manager will not entertain any fax or photocopy as part of the instructions.

7. Any delay and rejection due to incomplete information, the Manager reserves the right not to accept the request.

RIGHTS OF MANAGER

The Manager reserves the right to accept or reject any application in whole or part thereof without assigning any reasons.

The Unit Holder shall indemnify and shall keep MAMSB fully indemnified against all losses, damages, fees, costs, chargesand expenses which MAMSB may sustain or incur and which shall have arisen either directly or indirectly out of or inconnection with carrying out this request.

Thank you for reading these notes. If you require further clarification, please contact your personal UT Adviser, our branchnearest to you or our Customer Service at :

Manulife Asset Management Services Berhad (834424-U)10th Floor, No. 566, Jalan Ipoh, 51200 Kuala Lumpur. Tel: (03) 6256-8288 Fax: (03) 6256-8298 Email: [email protected] Website: www.manulifeinvestment.com.my

MAMSB/OPA/MSI/01/0914

FPX-M Form

Account Holder Name

NRIC No. (New) - - NRIC No. (Old)

Contact No. (H/P) - ( R ) -

Bank Name

Bank Account No.

Signature of Account HolderDate :

Received by / Date: Processed by / Date:

Signature verified by / Date: Checked by / Date:

Remark:

Manulife Asset Management Services Berhad (834424-U)10th Floor, No. 566, Jalan Ipoh, 51200 Kuala Lumpur. Tel: (03) 6256-8288 Fax: (03) 6256-8298 Email: [email protected] Website: www.manulifeinvestment.com.my

GRAND TOTAL AMOUNT (RM)

5

New Account

Existing Account

c) Total Amount (RM)A/C : _________________________

b) e)

a) d)

c) Total Amount (RM)

b) e)

a) d)


b) e)

a) d)


b) e)

a) d)

d)

b) e)

Fund Amount (RM) Fund Amount (RM)


a)

FPX DEDUCTION FOR MULTIPLE ACCOUNTS FORMBANK ACCOUNT HOLDER PARTICULARS

For office use only

SIGNATURE OF BANK ACCOUNT HOLDER (Similar to Bank's Record)

FPX DEDUCTION INTO MULTIPLE UNIT HOLDERS ACCOUNTS

Unitholder Account

A/C : _________________________

New Account

Existing Account1

No.

2

New Account

Existing Account

A/C : _________________________

3

New Account

Existing Account

A/C : _________________________

4

New Account

Existing Account

A/C : _________________________

Date Received

MAMSB/OPA/FPX-M/01/0914