31 December 2014 CIMB Islamic Small Cap Fund A S S E T MA N A GE ME N T Available under the EPF Members Investment Scheme. INVESTMENT VOLATILITY FUND OBJECTIVE 3-year Fund Volatlity The objective of the Fund is to seek medium to long -term growth in capital by investing principally in emerging companies listed on Bursa Malaysia and this must be in accordance with the Shariah principles. 15.31 Very High FUND PERFORMANCE in MYR Lipper Analytcs 15 Dec 2014 FUND INFORMATION Kuala Lumpur, Malaysia Location Malaysia Domicile Ringgit Malaysia Fund Currency Fund Size (MYR) MYR 244.51 million Fund Unit 263.83 million units Fund Launch 30 April 2003 Fund Inception (MYR) 30 April 2003 Benchmark Dealing FTSE Bursa Malaysia Small Cap Index Daily (as per Bursa Malaysia trading day) 6.50% of the NAV per unit Application Fee Management Fee 1.85% p.a. of the NAV Trustee Fee 0.06% p.a. of the NAV Cumulative Performance (%) YTD 1 Month MYR 0.9267 Unit NAV (MYR) Fund Benchmark -9.85 -4.20 -5.05 -8.56 3 Months 6 Months -14.31 -19.45 -18.51 -16.15 1 Year 3 Years 5 Years -9.85 -4.20 44.77 28.84 Since Inception 81.46 47.90 117.12 165.34 Calendar Year Performance (%) Fund Benchmark 2013 2012 2011 2010 2009 2008 39.03 36.71 15.51 -1.63 -3.61 -7.57 30.04 24.19 46.46 55.14 -39.65 -46.56 Note: April 2003 to December 2014. 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. Source: Lipper CIMB-PRINCIPAL AWARDS AND ACCOLADES Currency MYR ISIN Code Bloomberg Ticker MYU1000AW001 BHLPDAZ MK CIMB-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.cimb-principal.com.my ^Based on the fund's portfolio returns as at 15 December 2014, the Volatility Factor (VF) for this fund is 15.31 and is classified as "Very High" (source: Lipper). "Very High" includes funds with VF that are above 12.975. 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. We recommend that you read and understand the contents of the Master Prospectus (Shariah-Compliant Funds) Issue No. 7 dated 30 June 2014, which has been duly registered with the Securities Commission Malaysia, before investing and that you keep the said Master Prospectus (Shariah-Compliant Funds) for your records. Any issue of units to which the Master Prospectus (Shariah-Compliant Funds) relates will only be made upon receipt of the completed application form referred to in and accompanying the Master Prospectus (Shariah-Compliant Funds), subject to the terms and conditions therein. Investments in the Fund are exposed to liquidity risk and stock specific risk. You can obtain a copy of the Master Prospectus (Shariah-Compliant Funds) from the head office of CIMB-Principal Asset Management Berhad or from any of our approved distributors. 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. Page 1 of 2 31 December 2014 CIMB Islamic Small Cap Fund A S S E T MA N A GE ME N T Available under the EPF Members Investment Scheme. FUND MANAGER'S REPORT PORTFOLIO ANALYSIS The Fund sank 5.05% in December 2014 but it out-performed the FTSE Bursa Malaysia Small Cap ("FBMSC") Index by 3.51%. The Fund was negatively impacted by the steep fall in the market. led by profit taking on mid-small cap stocks. The out-performance was the result of tactical changes to equity exposure and good stock selections. The defensive water and telcos sectors out-performed in the month. Construction and Oil & Gas stocks fell sharply. Year-to-date ("YTD"), the Fund was down 9.85% while the benchmark has fallen 4.20%. ASSET ALLOCATION Shariah-compliant Equities (Local) 70.69% Cash 29.31% 100.00% Total Malaysia faces a challenging year in 2015. Merrill Lynch has downgraded Malaysian Gross Domestic Product ("GDP") growth to 4.6%. Lower crude oil and Crude Palm oil ("CPO") prices have negative implications on our trade balance, government budget deficit and therefore the Ringgit. The implementation of Goods and Service Tax ("GST") in April 2015 and the relatively high household debt/GDP could crimp domestic consumption. At FTSE Bursa Malaysia Kuala Lumpur Composite Index ("KLCI") of 1,739, the market is at 15 price earnings ratio ("PER") of 14.8 times and 16 PER of 13.5 times, with corresponding earnings per share ("EPS") growth of 8.5% and 9.2%. However, earnings are at risk of being downgraded. Therefore, Bursa Malaysia valuations continue to appear elevated. SECTOR BREAKDOWN In terms of strategy, we will continue to position the Fund conservatively to limit downside risks. We will remain fairly invested and continue to shift to defensive stocks. In terms of sectors, we are mainly in food and beverages ("F&B"), Retail, Technology and Construction/Building Materials. Trading / Services 14.19% Industrials 11.98% IPC 11.33% Properties 9.51% Technology 5.67% Construction 5.66% Plantations 5.59% Finance 2.83% Consumer 2.00% SPAC 1.93% Cash 29.31% 100.00% Total RISK STATISTICS TOP HOLDINGS Beta 0.72 1 Cahya Mata Sarawak Berhad Malaysia 8.22% Information Ratio 0.37 2 Puncak Niaga Hldg Bhd Malaysia 7.75% Sharpe Ratio 0.65 3 UOA Development Bhd Malaysia 4.79% 4 Aeon Co. M Bhd Malaysia 4.15% 5 PBA Hldg Bhd Malaysia 3.96% 6 Time Dotcom Bhd Malaysia 3.58% 3 years monthly data Total 32.45% Page 2 of 2