Principal Islamic Conservative Wholesale Fund-of-Funds Report - July 2022

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1. 3-year Principal Islamic Conservative Wholesale Fund-of-Funds Fund Volatility 4 .60 31 July 2022 Low Lipper Analytics 15 Jul 2022 Fund Performance The fund aims to achieve capital stability by investing in a portfolio of Shariah-compliant collective investment schemes that invest in Shariah-compliant equities and/or Sukuk. The fund will invest at least 70% of its NAV in Shariah-compliant CIS investing predominantly in Sukuk and up to 30% of its NAV in Shariah-compliant CIS investing predominantly in Shariah-compliant equities. The fund may also invest up to 5% of its NAV in Shariah-compliant liquid assets such as Shariah-compliant money market instruments and/or Islamic Deposits for liquidity purposes. 20% 15% 10% 5% 0% -5% -10% Lipper Score Total Return Ja n2 01 8 Ma r2 01 Ma 8 y2 01 8 Ju l2 01 8 Se p2 01 No 8 v2 01 8 Ja n2 01 9 Ma r2 01 Ma 9 y2 01 9 Ju l2 01 9 Se p2 01 No 9 v2 01 9 Ja n2 02 0 Ma r2 02 Ma 0 y2 0 Ju 20 l2 02 0 Se p2 02 No 0 v2 02 0 Ja n2 02 1 Ma r2 02 Ma 1 y2 0 Ju 21 l2 02 1 Se p2 02 No 1 v2 02 1 Ja n2 02 2 Ma r2 02 Ma 2 y2 02 2 Ju l2 02 2 Fund Objective Consistent Return Fund Benchmark Past performance does not guarantee future results. Asset allocation and diversification do not ensure a profit or protect against a loss. Morningstar Rating Cumulative Performance (%)   YTD 1M 3M 6M 1Y 3Y 5Y Since Inception Fund -4.22 1.28 -1.49 -2.98 -3.27 2.64 N/A 5.77 Benchmark -2.45 1.30 -0.96 -1.30 -2.37 4.04 N/A 8.36 Calendar Year Returns (%) Fund Benchmark 2021 2020 2019 2018 2017 2016 0.25 5.81 4.18 -0.06 N/A N/A -1.51 6.68 5.15 -0.65 N/A N/A Fund Information Note: November 2017 to July 2022. ISIN Code MYU1000GS006 Performance data represents the combined income & capital return as a result of holding units in the fund for the specified length of time, based on bid to bid prices. Earnings are assumed to be reinvested. Lipper ID 68455647 Annualised yield is calculated as the most recent monthly dividend distribution multiplied by the Fund's dividend frequency and divided by the latest NAV. Source : Lipper Bloomberg Ticker CIMBICW MK Top Holdings Country % of Net Assets MYR Principal Islamic Lifetime Sukuk Malaysia 46.74 Base Currency MYR Principal Islamic Lifetime Enhanced Sukuk Malaysia 27.77 Fund Inception 24 Nov 2017 Principal DALI Equity Malaysia 17.97 Domicile Malaysia Currency Benchmark Application Fee Management Fee Trustee Fee 50% Quantshop GII Medium Index + 25% CIMB Islamic 1-month Fixed Return Income Account-I (FRIA-i) + 25% FTSE Bursa Malaysia EMAS Shariah Index. Nil Up to 1.20% per annum of the NAV of the Fund 0.035% per annum of the NAV of the Fund Fund Size (MYR) MYR 369.06 thousand Fund Unit 0.35 million units NAV per unit (As at 29 Jul 2022) MYR 1.0577 Fund Risk Statistics Beta -0.07 Sharpe Ratio -0.09 (3 years monthly data) The holdings listed do not constitute a recommendation to purchase or sell a particular security. Cash and/or derivative positions that are not part of the core investment strategy will not be reflected in the top holdings list. 1.05 Information Ratio
2. Principal Islamic Conservative Wholesale Fund-of-Funds 31 July 2022 Asset Allocation (%) Sector Allocation (%) 7.53% Cash 92.47% 0 25 7.53% Cash Collective Investments 50 75 Regional Allocation (%) 92.47% Collective Investments 100 0 25 7.53% Cash 50 75 92.47% Malaysia 100 0 25 50 75 100 Source: Factset. Fund holdings and allocations shown are unaudited and may not be representative of current or future investments. Percentages may not add up to 100% due to rounding and/or inclusion or exclusion of cash will not be reflected in the top holdings list. Fund Manager's Report The Fund rose 1.28% during the month, underperforming the benchmark by 0.02ppt. MSCI AC Asia ex Japan Islamic Index rose 1.8% in US$ terms in July as most countries posted positive returns except for China due to a brewing mortgage crisis and fluid Covid situation. The US 10-year bond yield declined 36bps to 2.65% as the US Fed commented on slowing the pace of rate increases. During the month, China faced escalating boycotts on mortgage payments across at least 300 stalled property developments to the tune of potentially RMB2 trillion. Given the manageable size of < 1% in relation to the total banking system loans, and increasing expectations of the government mobilising funds to aid the situation, we believe a full blown crisis can be averted. Separately a recent politburo statement removed any mention of economic goals, suggesting the government is downplaying the 5.5% GDP growth target and devoid of large infrastructure spending. We remain stock selective in China, favoring sectors that have secular tailwinds such as electric vehicles, renewables or innovators that continue to gain market share. As the Fed continues to tighten its monetary policy, most Asian central banks would have to follow a similar path or risk weakness in their currencies. The resultant economic growth path in reaction to the rate hike cycle would be keenly watched. The inflation trajectory would be the key determinant for the Fed’s ability to slow down its pace of rate hikes or even reverse course depending on the extent of the economic and/ or financial markets slowdown. Recent commentary from Fed Chair, Jerome Powell suggested of slowing the pace of rate increases provided a relief to investors. ^Based on the fund's portfolio returns as at 15 July 2022, the Volatility Factor (VF) for this fund is 4.6 and is classified as "Low" (source: FIMM). 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 FIMM 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. We recommend that you read and understand the contents of the Principal Islamic Conservative Wholesale Fund-of-Funds (formerly known as CIMB Islamic Conservative Wholesale Fund-of-Funds) Information Memorandum dated 26 September 2019, which have been deposited with Securities Commission Malaysia before investing and that you keep the said Information Memorandum for your record. Any issue of units to which the Information Memorandum relates will only be made upon receipt of the completed application form referred to in and accompanying the Information Memorandum, subject to the terms and conditions therein. The principal risks are returns not guaranteed, general market environment risk, inflation risk, manager's risk, financing risk and reclassification of Shariah status risk. The specific risks of the Target Fund are risk associated with investing in Shariah-compliant CIS, country risk and currency risk. You can obtain a copy of the Information Memorandum from the head office of Principal Asset Management Berhad or from any of our approved distributors. We suggest that you consider these fees and charges carefully prior to making an investment. Unit prices and income distributions, if any, may fall or rise. Past performance is not reflective of future performance and income distributions are not guaranteed. Product Highlight Sheet ("PHS") is available and that investors have the right to request for a PHS; and the PHS and any other product disclosure document should be read and understood before making any investment decision. There are fees and charges involved in investing in the funds. We suggest that you consider these fees and charges carefully prior to making an investment. Unit prices and income distributions, if any, may fall or rise. Past performance is not reflective of future performance and income distributions are not guaranteed. You are also advised to read and understand the contents of the Financing for Investment in Unit Trust Risk Disclosure Statement/Unit Trust Loan Financing Risk Disclosure Statement before deciding to borrow to purchase units. All performance figures have been extracted from Lipper. Where a unit split/distribution is declared, investors are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV; and where a unit split is declared, the value of your investment will remain unchanged after the distribution of the additional units. Carefully consider a fund's objective, risks, charges and expenses. Visit www.principal.com.my for a prospectus containing this and other information. Please read it carefully before investing. Principal Asset Management Berhad 10th Floor, Bangunan CIMB, Jalan Semantan Damansara Heights, 50490 Kuala Lumpur. Tel: (603) 2084 8888 Fax: (603) 2084 8899 Website: www.principal.com.my