AmBon Islam Fund Report - July 2017

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1. 3-year Fund Volatility AmBon Islam 1 .68 Very Low July 2017 Lipper Analytics 31 May 2017 AmBon Islam (the "Fund") is a Medium to Long-Term Islamic bond fund that aims to provide a stream of halal income*. Note:The Income could be in the form of units or cash. Any material change to the investment objective of the fund would require Unit Holders' approval. The Fund is suitable for investors who: • require regular Shariah-compliant income* from investing in a Sukuk fund • have medium to long-term investment goals Investment Strategy • Short-term local credit rating of P2 (by RAM) or MARC2 (by MARC) • Long-term credit rating of BBB3 (by RAM) or BBB- (by MARC) • Conform to the principles of Shariah • Maturity profile is subject to duration management in view of the rate of return scenario • The duration of investment will not exceed 2 year from the benchmark Top Holdings* (as at 30 June 2017) Mudajaya Corporation Berhad / A2 Tanjung Bin Energy Issuer Berhad / AA3 Special Power Vehicle Berhad / A1 National Bank of Abu Dhabi P.J.S.C. Lebuhraya Duke Fasa 3 Sdn Bhd 8.32% 8.08% 7.69% 7.26% 6.97% * As percentage of NAV. Please note that asset exposure for the fund is subject to frequent change on a daily basis. Source: AmFunds Management Berhad Source: AmFunds Management Berhad Rating Allocation* (as at 30 June 2017) Fund Details Fund Category / Type Fund Launch Date Offer Price at Launch NAV (30 Jun 2017) 1-year NAV High (30 Jun 2017) 1-year NAV Low (30 Jun 2017) Total Units (30 Jun 2017) Fund Size (30 Jun 2017) Annual Management Fee Annual Trustee Fee Entry Charge Exit Fee Redemption Payment Period Investment Manager Income Distribution Sukuk / Income 26 November 2001 MYR 1.0000 MYR 1.2478 MYR 1.2717 (19 Sep 2016) MYR1.2303 (21 Mar 2017) 38.60 million MYR 48.17 million Up to 1.00% p.a. of the NAV of the Fund Up to 0.07% p.a. of the NAV of the Fund Nil Nil By the 10th day of receipt of a repurchase notice AmIslamic Funds Management Sdn Bhd Income Distribution (if any) is paid at least twice every year AA, 69.80% Cash, 10.00% A, 20.20% * As percentage of NAV. Please note that asset exposure for the fund is subject to frequent change on a daily basis. Source: AmFunds Management Berhad Source: AmFunds Management Berhad Fund Performance (as at 30 June 2017) Income Distribution History Cumulative performance over the period (%) 120.00 Payout (Sen) CY 2016 CY 2015 CY 2014 CY 2013 CY 2012 1.50 1.50 1.50 1.50 Total (Sen) 6.00 1.50 1.50 1.50 1.50 6.00 3.00 3.00 3.00 3.00 Source: AmFunds Management Berhad 100.00 80.00 60.00 40.00 20.00 0.00 -20.00 Nov-01 Manager's Commentary The second US FOMC (“Fed”) rate hike in 2017 was fully expected by most investors. The Fed also maintained its guidance for a gradual rate hike on the Fed Funds Rate (“FFR”) with median assessment of FFR at 1.375% by end2017, 2.125% by end-2018 and 2.875% by end-2019. More significantly, the Fed has also for the first time communicated its intention to begin the normalization of the Fed’s balance sheet size. The reduction is expected to begin sometime this year with a cap of USD10b per month (USD6b Treasuries and USD4b agency + Mortgage Backed Securities (“MBS”)) and will rise by USD10b on a quarterly basis to reach a USD50b cap per month (or USD600b per annum) within a year. As the FOMC decision was widely anticipated, investor’s reaction was generally muted. Nevertheless, with the European Central Bank (“ECB”) as well as Bank of England (“BOE”) talking up on the possibility of an end to the current dovish monetary policy, most investors are expected to exercise caution as we head into the 2H2017. Back in Malaysia, the worst of foreign selling on the bond market seems to be over. With two consecutive months of net foreign buying in April (RM6.0b) and May (RM10.0b) and no chunky MGS maturities until August 2017, there was a period of calm and strength as both the Malaysian bond market performance and Ringgit strengthened hand in hand. Indeed, the turnaround was also evident from the increase in BNM’s FX reserves to its highest YearTo-Date (“YTD”). Nonetheless, we opine that the period of calm and reprieve for the market is likely to turn less certain moving forward as local investors turn cautious as well due to more hawkish tone from the Fed and ECB, the possibility of an election in 2H2017 and speculation of an early OPR hike. While we opine that there is no pressure for BNM to hike rates in 2017, market would likely price in an earlier possibility if Malaysia’s economy continues to perform ahead of expectations and/or the hawkish sentiments spillover to our peers. Source: AmIslamic Funds Management Sdn Bhd AmBon Islam Jun-17 BPAM Corporates (3 years to 7 years) Sukuk Index The value of units may go down as well as up. Past performance is not indicative of future performance. Source: AmFunds Management Berhad Performance Data (as at 30 June 2017) Fund (%) *Benchmark (%) 1m 6m 1 yr 3 yrs 5 yrs 0.32 2.72 5.19 14.73 20.10 0.41 3.09 4.77 15.90 22.15 *Quantshop Medium GII Index Source: *AmFunds Management Berhad, Verified by Novagni Calendar Year Return Fund (%) *Benchmark (%) 2016 2015 2014 2013 2012 5.95 3.29 3.23 2.18 4.27 5.26 4.86 4.23 1.19 4.01 *Quantshop Medium Gll Index Source: AmFunds Management Berhad, Verified by Novagni
2. Disclaimer Based on the fund ’s portfolio returns as at 31 May 2017, the Volatility Factor (VF) for this fund is 1.68 and is classified as "Very Low" (Source: Lipper). "Very Low" includes funds with VF that are lower 1.785 (source: Lipper). The VF means there is a possibility for the fund in generating an upside return or downside return around this VF. The Volatility Class (VC) is assigned by Lipper based on quintile ranks of VF for qualified funds. VF is subject to monthly revision and VC will be revised every six months. The fund’s portfolio may have changed since this date and there is no guarantee that the fund will continue to have the same VF or VC in the future. Presently, only funds launched in the market for at least 36 months will display the VF and its VC. The information contained in this material is general information only and does not take into account your individual objectives, financial situations or needs. You should seek your own financial advice from an appropriately licensed adviser before investing. You should be aware that investments in a unit trust fund carry risks. An outline of some of the risks is contained in the Master Prospectus dated 10 September 2016 & 1st Supplemental Master Prospectus dated 31 December 2016 (collectively referred as the “Prospectus”). The specific risks associated with investment of the Fund are credit and default risk, currency risk, income distribution risk, rate of return risk, liquidity risk, shariah non-compliance risk and related party transaction risk as contained in the Prospectus. Unit prices and income distribution, if any, may rise or fall. Past performance of a fund is not indicative of future performance. Please consider the fees and charges involved before investing. Units will be issued upon receipt of completed application form accompanying the Prospectus and subject to terms and conditions therein. Where a distribution is declared, you are advised that following the distribution, the Net Asset Value (“NAV") per unit will be reduced from cum-distribution NAV to ex-distribution NAV. Where a unit split is declared, you are advised that following the issue of additional units, the NAV per unit will be reduced from pre-unit split NAV to post-unit split NAV.Kindly take note that the value of your investment in Malaysian ringgit will remain unchanged after the distribution of the additional units. You have the right to request for a copy of Product Highlights Sheet for the fund. You are advised to read and understand the contents of the Product Highlights Sheet and the Prospectus before making an investment decision. The Prospectus has been registered with the Securities Commission Malaysia, who takes no responsibility for its contents. You can obtain a copy of the Product Highlights Sheet and the Prospectus from any of our representative office and authorized distributor. AmFunds Management Berhad does not guarantee any returns on the investments. In the event of any dispute or ambiguity arising out of the other language translation in this leaflet, the English version shall prevail. Note:All fees, charges and expenses disclosed in this material are expressed on a Goods and Services Tax (“GST”)-exclusive basis. Accordingly, to the extent that services provided are subject to GST, the amount of GST payable on any related fees, charges and/or expenses will be payable by the unit holder(s) and/or the fund (as the case may be) in addition to the fees, charges and expenses disclosed in this material. Privacy Notice: AmFunds Management Berhad (Company Registration : 154432-A) issued its Privacy Notice as required by Personal Data Protection Act 2010, which details the use and processing of your personal information by AmFunds Management Berhad. The Privacy Notice can be accessed via www.aminvest.com and available at our head office. If you have any queries in relation to the Privacy Notice of AmFunds Management Berhad, please feel free to contact our Client Service Officers at Tel: +603 2032 2888 OR e-mail: enquiries@aminvest.com. Growing your investments in a changing world