TAKAFULINK FUND FACT SHEET

Takaful & Us
Takaful is a mutual assistance certicate based on the principles of shared responsibility, cooperation and common interest. Each covered participant contributes on the basis of Tabarru (donation) into a fund that will be used to support each other in times of need. The principle of Takaful is to uphold the principle of brotherhood. It strictly adheres to ethics and transparency of Shariah guidelines that prohibits uncertainty (Gharar), gambling/luck (Maisir), and interest (Riba). At PruBSN we uphold these values through professional practise in order to give the customers everything they need and more. Values that are clearly reected in each and every one of our transactions. Values that make us a prudent choice. We hold in our portfolio a variety of innovative products that covers you in every aspect of your life. From protection to savings to spiritual fulllment, each of our products are designed to make life worth living. PruBSN Link Series, our latest product provides total exibility in your hands to secure the best protection and savings deal for every stage in your life. Our other range of products include, PruBSN Ummah, PruBSN Protect, PruBSN CrisisCover, Takaful Rumahku, PruBSN Pelindung, PruBSN Kasih and Giro Takaful Series.

I nves t m en t O b ject ive

The Takafulink Dana Ekuiti Fund aims to maximize returns over medium to long-term by investing in high quality Shariah-approved shares listed on Bursa Malaysia.
I nves t m en t S t rat eg y & Ap p ro ach
We believe our disciplined, valuation-driven investment style can generate superior long-term returns. Pricing inefciencies driven by irrational investor behavior can be successfully exploited through active in-house research and portfolio management. Successful and sustainable exploitation of security mis-pricing requires the disciplined application of our valuation-driven approach. Our process seeks to eliminate the behavioral biases that lead to mis-pricing in the first instance. By imputing conservative assumptions to our earnings forecasts, ensures that our in-house valuation target is achievable, but at the same time we are not eliminating potential opportunities by taking calculated risk in periods of volatility that tend to be event driven. We aim for a high degree of consistency in long-term performance for all funds, whilst adhering to strict and professional investment guidelines. Invest in high-quality Shariah-approved shares listed on Bursa Malaysia.

A sse t A l lo c at io n
Up to 100% in Shariah-compliant Malaysian equities. Funds not invested in equities will be invested in Shariah-compliant money market instruments.

Pe r f o rm a n ce Ben ch m ark
87.5% FBMS + 12.5% MBB 1 month Tier 2 Islamic Deposit rate. Further information on MBB 1 month Tier 2 Islamic Deposit rate can be obtained at Maybank2U website. Further information on FBMS can be obtained at Bursa and Bloomberg website.

F u n d M an ag e r
Prudential Fund Management Berhad (531241-U).

FEES & CHARGES F u n d M an ag e m en t Ch arg e

1.5% p.a 1

TA KA FULI NK DA NA E K UI T I

FEATURES OF FUND

FUND PERFORMANCE
Notice: Past performance of the fund is not an indication of its future performance

Year 2010 2009 2008 2007 2006

Takafulink Dana Ekuiti 17.70% 36.13% -35.37% 35.81% N/A

Benchmark 16.18% 43.03% -43.52% 43.69% N/A

Warning: This is strictly the performance of the investment fund, and not the returns earned on the actual contribution paid of the investment-linked takaful product.
* 2007-2009 Benchmark: FBMS. 2010 Benchmark: 87.5% FBMS + 12.5% MBB 1 month Tier 2 Islamic Deposit rate.

U n it P ricin g
Unit pricing is done daily. Unit price is calculated based on the market value of the underlying assets of the fund, divided by the number of units issued. A Takafulink fund does not pay any dividend. All incomes and capital gains are automatically rolled up in its unit price. Unit price is the single price at which units are created and cancelled.

F o rw a rd P ricin g
Units are created and cancelled at the next pricing date following receipt of contribution or notication of claim respectively. Basis of calculation of past performance: = NAV* For Year n % NAV* For Year n-1

* NAV is per unit basis

RISK
Market Risk This risk refers to changes and developments in regulations, politics and the economy of the country. The very nature of investing in a fund, however, helps mitigate the risk because a fund would generally hold a well-diversified portfolio of securities from different market sectors that the collapse of any one security or any one market sector would not impact too greatly on the value of the fund. Liquidity Risk Liquidity refers to the ease of converting an investment into cash without incurring an overly signicant loss in value. If a fund has a large portfolio of stocks issued by smaller companies, the relatively less liquid nature of those stocks can cause the value of the fund to drop; this is because there are generally less ready buyers of such stocks as compared with the stocks of larger and more established companies. The risk is managed by taking greater care in stock selection and diversication. Interest Rate Risk Interest rate risk is a general risk affecting Shariah-based funds. This is so even though Shariah-based funds only invest in investments that are in accordance with Shariah requirements. The reason for this is because a high level of interest rates will inevitably affect corporate prots and this will have an impact on the value of both equity and debt securities. Stock Risk or Issuer Risk This risk refers to the individual risk of the respective companies issuing the securities. Specic risk includes, but is not limited to changes in consumer tastes and demand, legal suits, competitive operating environments, changing industry conditions and management omissions and errors. However, this risk is minimised through investing in a wide range of companies in different sectors and thus function independently from one another. Country Risk This risk refers to changes and developments in regulations, politics and the economy of the country. The investments may be affected by uncertainties in the investing country such as domestic political developments, restrictions on foreign investment and currency repatriation, changes in governmental policies, changes in taxation and other developments in the laws and regulations. In addition, the reduced availability of public information, the legal infrastructure and the lack of uniform accounting, auditing and nancial reporting standards or other regulatory practices and requirements may reduce the degree of investor protection afforded. Some of the securities may also be subjected to government taxes or incur higher custodian expenses which may reduce the yield on such securities.

Risk of Non-Compliance Non-adherence with laws, rules, regulations, prescribed practices, internal policies and procedures may result in tarnished reputation, limited business opportunities and reduced expansion potential for the management company. Investors investment goals may also be affected should the fund manager not adhere to the investment mandate. Such risk is mitigated by the compliance unit of the management company which oversees the entire compliance matters of the management company. Concentration Risk This is the risk of a fund focusing a greater portion of its assets in a smaller selection of investments. The fall in price of a particular equity investment will have a greater impact on the funds and thus greater losses. This risk may be minimised by the manager conducting even more rigorous fundamental analysis before investing in each security. Management Company Risk There is risk that the management company may not adhere to the investment mandate of the respective fund. With close monitoring by the investment committee, back ofce system is being incorporated with limits and controls, and regular reporting to the senior management team, the management company is able to manage such as risk. This risk is also mitigated by the existence of the custodian. Poor management of the fund may also jeopardise the investment of investors through the loss of the capital invested in the fund. Ination Risk Ination risk can be dened as potential intangible losses that may arise from the increase in prices of goods and services in an economy over a period of time. Ination causes the reduction in purchasing power and if the rate of ination is constantly higher than the rate of returns on investments, the eventual true value of investments could be negative. Investment Managers Risk Poor management of the fund due to lack of experience, knowledge, expertise and poor management techniques would have an adverse impact on the performance of the fund. This may result in investors suffering loss on their investment of the fund. Reclassication of Shariah Status Risk The risk that the currently held Shariah-compliant securities in the portfolio of Shariah-based funds may be reclassified to be Shariah non-compliant upon review of the securities by the SACSC performed twice yearly. If this occurs, the value of the fund may be adversely affected where the Manager will take the necessary steps to dispose of such securities in accordance with the SACSCs advice.

RISK MANAGEMENT
Forecasting Risk Potential risks are taken into consideration in the process of sector allocation and stock selection based on analysis on various key factors such as economic conditions, liquidity, qualitative and quantitative aspects of the securities. System Control Risk parameters are set internally for each fund, depending on clients risk prole. These risk parameters include limits of issuer bet, group issuer, sector rating and issue size of the securities held in the portfolio. CRTS is in place to monitor portfolio risks, serving as an auto lter for any limitations or breaches. CRTS is in place to monitor portfolio risks, serving as an auto lter for any limitations or breaches. Other Info Target Market For participants with high risk tolerance and medium to long term investment horizon. Basis & Frequency of unit Valuation Daily Forward pricing. Exceptional circumstances PruBSN reserves the right in exceptional circumstances (for example, when there is an unusually high volume of sale of investments within a short period) to defer the withdrawal of units and the surrender of the certicate for a period not exceeding six (6) months from the date of application. PruBSN may suspend unit pricing and certificate transaction if any of the exchanges in which the fund is invested is temporarily suspended for trading. In such event, written notice shall be given to participants of in force certicates.

Remarks: CRTS FBMS NAV SACSC MBB

- The Charles River Trading System - FTSE Bursa Malaysia Emas Shariah Index - Net Asset Value - Shariah Advisory Council of the Securities Commission - Malayan Banking Berhad 5

I nves t m en t O b ject ive

The Takafulink Dana Bon Fund aims to provide medium to long-term accumulation of capital by investing in selected IPDS and IFF.
I nves t m en t S t rat eg y & Ap p ro ach
We believe our disciplined, valuation-driven investment style can generate superior long-term returns. We aim to exploit opportunities at both the asset allocation and securities selection levels through active in-house research and portfolio management, with a focus on maximization of returns at an acceptable level of risks. We aim for a high degree of consistency in long-term performance for all funds, whilst adhering to strict and professional investment guidelines. Invest in selected IPDS and IFF.

A sse t A l lo c at io n
Up to 100% in Shariah-compliant Malaysian fixed income instruments. Funds not invested in fixed income instruments will be invested in Shariah-compliant money market instruments.

Pe r f o rm a n ce Ben ch m ark
75% 3 years GII + 25% MBB 1 month Tier 2 Islamic Deposit rate. Further information on MBB 1 month Tier 2 Islamic Deposit rate can be obtained at Maybank2U website. Further information on GII can be obtained at Bank Negara Malaysia website.

F u n d M an ag e r
Prudential Fund Management Berhad (531241-U).

FEES & CHARGES F u n d M an ag e m en t Ch arg e

0.5% p.a

TA KA FULI NK DA N A B ON

FEATURES OF FUND

FUND PERFORMANCE
Notice: Past performance of the fund is not an indication of its future performance

Year 2010 2009 2008 2007 2006

Takafulink Dana Bon 5.48% 5.01% 1.81% 4.15% N/A

Benchmark 3.37% 2.13% 2.90% 3.20% N/A

Warning: This is strictly the performance of the investment fund, and not the returns earned on the actual contribution paid of the investment-linked takaful product.
* 2007-2009 Benchmark: MBB 1 month Tier 2 Islamic Deposit rate. 2010 Benchmark: 75% 3 years GII + 25% MBB 1 month Tier 2 Islamic Deposit rate.

Unit Pricing
Unit pricing is done daily. Unit price is calculated based on the market value of the underlying assets of the fund, divided by the number of units issued. A Takafulink fund does not pay any dividend. All incomes and capital gains are automatically rolled up in its unit price. Unit price is the single price at which units are created and cancelled.

Forward Pricing
Units are created and cancelled at the next pricing date following receipt of contribution or notication of claim respectively. Basis of calculation of past performance: = NAV* For Year n % NAV* For Year n-1

* NAV is per unit basis

RISK
Market Risk This risk refers to changes and developments in regulations, politics and the economy of the country. The very nature investing in a fund, however, helps mitigate the risk because a fund would generally hold a well-diversified portfolio of securities from different market sectors that the collapse of any one security or any one market sector would not impact too greatly on the value of the fund. Liquidity Risk Liquidity refers to the ease of converting an investment into cash without incurring an overly signicant loss in value. Should there be negative developments on any of the issuers, this will increase liquidity risk of the particular security. This is because there are generally less ready buyers of such securities as the fear of a credit default increases. The risk is managed by taking greater care in security selection and diversication. Interest Rate Risk This risk is crucial in a Sukuk fund since Sukuk portfolio management depends on forecasting interest rate movements. Generally, demand for Sukuk move inversely to interest rate movements therefore as interest rates rise, the demand for Sukuk decrease and vice versa. Furthermore, Sukuk with longer maturity and lower prot rates are more susceptible to interest rate movements. Sukuk are subject to interest rate uctuations with longer maturity and lower prot rates Sukuk being more susceptible to such interest rate movements. To address the interest rate risk, we will seek to diversify the funds portfolio into Sukuk with varying maturity periods. Issuer Risk This risk refers to the individual risk of the respective companies issuing the securities. Specic risk includes, but is not limited to changes in consumer tastes and demand, legal suits, competitive operating environments, changing industry conditions and management omissions and errors. However, this risk is minimised through investing in a wide range of companies in different sectors and thus function independently from one another. Country Risk This risk refers to changes and developments in regulations, politics and the economy of the country. The investments may be affected by uncertainties in the investing country such as domestic political developments, restrictions on foreign investment and currency repatriation, changes in governmental policies, changes in taxation and other developments in the laws and regulations. In addition, the reduced availability of public information, the legal infrastructure and the lack of uniform accounting, auditing and nancial reporting standards or other regulatory practices and requirements may reduce the degree of investor protection afforded. Some of the securities may also be subjected to government taxes or incur higher custodian expenses which may reduce the yield on such securities. 9

Risk of Non-Compliance Non-adherence with laws, rules, regulations, prescribed practices, internal policies and procedures may result in tarnished reputation, limited business opportunities and reduced expansion potential for the management company. Investors investment goals may also be affected should the fund manager not adhere to the investment mandate. Such risk is mitigated by the compliance unit of the management company which oversees the entire compliance matters of the management company. Concentration Risk This is the risk of a fund focusing a greater portion of its assets in a smaller selection of investments. The fall in price of a particular xed income investment will have a greater impact on the funds and thus greater losses. This risk may be minimised by the manager conducting even more rigorous fundamental analysis before investing in each security. Management Company Risk There is risk that the management company may not adhere to the investment mandate of the respective fund. With close monitoring by the investment committee, back ofce system is being incorporated with limits and controls, and regular reporting to the senior management team, the management company is able to manage such as risk. This risk is also mitigated by the existence of the custodian. Poor management of the fund may also jeopardise the investment of investors through the loss of the capital invested in the fund. Ination Risk Ination risk can be dened as potential intangible losses that may arise from the increase in prices of goods and services in an economy over a period of time. Ination causes the reduction in purchasing power and if the rate of ination is constantly higher than the rate of returns on investments, the eventual true value of investments could be negative. Investment Managers Risk Poor management of the fund due to lack of experience, knowledge, expertise and poor management techniques would have an adverse impact on the performance of the fund. This may result in investors suffering loss on their investment of the fund. Credit / Default Risk Bonds are subject to credit/default risk in the event that the issuer of the instrument is faced with nancial difculties, which may decrease their credit worthiness. This in turn may lead to a default in the payment of principal and interest.

10

Reclassication of Shariah Status Risk The risk that the currently held Shariah-compliant securities in the portfolio of Shariah-based funds may be reclassified to be Shariah non-compliant upon review of the securities by the SACSC performed twice yearly. If this occurs, the value of the fund may be adversely affected where the Manager will take the necessary steps to dispose of such securities in accordance with the SACSCs advice.

RISK MANAGEMENT
Forecasting Risk Potential risks are taken into consideration in the process of sector allocation and stock selection based on analysis on various key factors such as economic conditions, liquidity, qualitative and quantitative aspects of the securities. System Control Risk parameters are set internally for each fund, depending on clients risk prole. These risk parameters include limits of issuer bet, group issuer, sector rating and issue size of the securities held in the portfolio. CRTS is in place to monitor portfolio risks, serving as an auto lter for any limitations or breaches. Other Info Target Market For participants with low to moderate risk horizon and medium to long term investment horizon. Basis & Frequency of unit Valuation Daily Forward pricing. Exceptional circumstances PruBSN reserves the right in exceptional circumstances (for example, when there is an unusually high volume of sale of investments within a short period) to defer the withdrawal of units and the surrender of the certicate for a period not exceeding six (6) months from the date of application. PruBSN may suspend unit pricing and certificate transaction if any of the exchanges in which the fund is invested is temporarily suspended for trading. In such event, written notice shall be given to participants of in force certicates. Remarks: CRTS IFF IPDS MBB NAV SACSC GII

- The Charles River Trading System - Islamic Financial Facility - Islamic Private Debt Securities - Malayan Banking Berhad - Net Asset Value - Shariah Advisory Council of the Securities Commission - Government Islamic Issue 11

The Takafulink Dana Urus Fund seeks to maximize returns over medium to long-term by investing in Shariah-approved shares, IPDS and IFF through Takafulink Dana Ekuiti and Takafulink Dana Bon, and in any other such Takafulink funds that may become available in the future.
I nves t m en t S t rat eg y & Ap p ro ach
We believe our disciplined, valuation-driven investment style can generate superior long-term returns. We aim to exploit opportunities at both the asset allocation and securities selection levels through active in-house research and portfolio management, with a focus on maximization of returns at an acceptable level of risks. Pricing inefciencies driven by irrational investor behavior can be successfully exploited through active in-house research and portfolio management. Successful and sustainable exploitation of security mis-pricing requires the disciplined application of our valuation-driven approach. Our process seeks to eliminate the behavioral biases that lead to mis-pricing in the first instance. By imputing conservative assumptions to our earnings forecasts, ensures that our in-house valuation target is achievable, but at the same time we are not eliminating potential opportunities by taking calculated risk in periods of volatility that tend to be event driven. We aim for a high degree of consistency in long-term performance for all funds, whilst adhering to strict and professional investment guidelines. Invest in Shariah-approved shares, IPDS and IFF through Takafulink Dana Ekuiti and Takafulink Dana Bon, and in any other such Takafulink funds that may become available in the future.

A sse t A l lo c at io n
Between 70% to 90% of the assets will be invested in Takafulink Dana Ekuiti and between 30% and 10% of the assets will be invested in Takafulink Dana Bon, assets not invested in the two funds will be invested in Shariah-compliant money market instruments.

Pe r f o rm a n ce Ben ch m ark
70% KLSI + 15% MBB 1 month Tier 2 Islamic Deposit rate + 15% 3 years GII. Further information on KLSI can be obtained at Bursa and Bloomberg website. Further information on MBB 1 month Tier 2 Islamic Deposit rate can be obtained at Maybank2U website. Further information on GII can be obtained at Bank Negara Malaysia website. 13

TA KA FULI NK DA NA UR US

FEATURES OF FUND I nves t m en t O b ject ive

Fund Manager
Prudential Fund Management Berhad (531241-U).

FEES & CHARGES Fund Management Charge

1.3% p.a

FUND PERFORMANCE
Notice: Past performance of the fund is not an indication of its future performance Year 2010 2009 2008 2007 2006 Takafulink Dana Urus 15.39% 29.17% -29.14% 29.21% N/A Benchmark 13.56% 34.02% -35.97% 30.22% N/A

Warning: This is strictly the performance of the investment fund, and not the returns earned on the actual contribution paid of the investment-linked takaful product.
* 2007: 70% FBMSHA + 15% MBB 1 month Tier 2 Islamic Deposit rate + 15% 3 years GII. 2008 & 2009 Benchmark: 80% FBMSHA + 20% MBB 1 month Tier 2 Islamic Deposit rate. 2010 Benchmark: 70% KLSI + 15% MBB 1 month Tier 2 Islamic Deposit rate + 15% 3 years GII.

Unit Pricing
Unit pricing is done daily. Unit price is calculated based on the market value of the underlying assets of the fund, divided by the number of units issued. A Takafulink fund does not pay any dividend. All incomes and capital gains are automatically rolled up in its unit price. Unit price is the single price at which units are created and cancelled.

Forward Pricing
Units are created and cancelled at the next pricing date following receipt of contribution or notication of claim respectively. Basis of calculation of past performance: = NAV* For Year n % NAV* For Year n-1

* NAV is per unit basis

14

RISK
Market Risk This risk refers to changes and developments in regulations, politics and the economy of the country. The very nature of investing in a fund, however, helps mitigate the risk because a fund would generally hold a well-diversified portfolio of securities from different market sectors that the collapse of any one security or any one market sector would not impact too greatly on the value of the fund. Liquidity Risk Liquidity refers to the ease of converting an investment into cash without incurring an overly signicant loss in value. If a fund has a large portfolio of stocks issued by smaller companies, the relatively less liquid nature of those stocks can cause the value of the fund to drop; this is because there are generally less ready buyers of such stocks as compared with the stocks of larger and more established companies. Should there be negative developments on any of the issuers, this will increase liquidity risk of the particular security. This is because there are generally less ready buyers of such securities as the fear of a credit default increases. The risk is managed by taking greater care in stock and security selection and diversication. Interest Rate Risk Interest rate risk is a general risk affecting Shariah-based funds. This is so even though Shariah-based funds only invest in investments that are in accordance with Shariah requirements. The reason for this is because a high level of interest rates will inevitably affect corporate prots and this will have an impact on the value of both equity and debt securities. This risk is crucial in a bond fund since bond portfolio management depends on forecasting interest rate movements. Prices of bonds move inversely to interest rate movements therefore as interest rates rise, the prices of bonds decrease and vice versa. Furthermore, bonds with longer maturity and lower prot rates are more susceptible to interest rate movements. Stock Risk or Isuer Risk This risk refers to the individual risk of the respective companies issuing the securities. Specic risk includes, but is not limited to changes in consumer tastes and demand, legal suits, competitive operating environments, changing industry conditions and management omissions and errors. However, this risk is minimised through investing in a wide range of companies in different sectors and thus function independently from one another. Country Risk This risk refers to changes and developments in regulations, politics and the economy of the country. The investments may be affected by uncertainties in the investing country such as domestic political developments, restrictions on foreign investment and currency repatriation, changes in governmental policies, changes in taxation and other developments in the laws and regulations. In addition, the reduced availability of public information, the legal infrastructure and the lack of uniform accounting, auditing and nancial reporting standards or 15

other regulatory practices and requirements may reduce the degree of investor protection afforded. Some of the securities may also be subjected to government taxes or incur higher custodian expenses which may reduce the yield on such securities. Risk of Non-Compliance Non-adherence with laws, rules, regulations, prescribed practices, internal policies and procedures may result in tarnished reputation, limited business opportunities and reduced expansion potential for the management company. Investors investment goals may also be affected should the fund manager not adhere to the investment mandate. Such risk is mitigated by the compliance unit of the management company which oversees the entire compliance matters of the management company. Concentration Risk This is the risk of a fund focusing a greater portion of its assets in a smaller selection of investments. The fall in price of a particular xed income investment will have a greater impact on the funds and thus greater losses. This risk may be minimised by the manager conducting even more rigorous fundamental analysis before investing in each security. Management Company Risk There is risk that the management company may not adhere to the investment mandate of the respective fund. With close monitoring by the investment committee, back ofce system is being incorporated with limits and controls, and regular reporting to the senior management team, the management company is able to manage such as risk. This risk is also mitigated by the existence of the custodian. Poor management of the fund may also jeopardise the investment of investors through the loss of the capital invested in the fund. Ination Risk Ination risk can be dened as potential intangible losses that may arise from the increase in prices of goods and services in an economy over a period of time. Ination causes the reduction in purchasing power and if the rate of ination is constantly higher than the rate of returns on investments, the eventual true value of investments could be negative. Investment Managers Risk Poor management of the fund due to lack of experience, knowledge, expertise and poor management techniques would have an adverse impact on the performance of the fund. This may result in investors suffering loss on their investment of the fund. Credit / Default Risk Bonds are subject to credit/default risk in the event that the issuer of the instrument is faced with nancial difculties, which may decrease their credit worthiness. This in turn may lead to a default in the payment of principal and interest.

16

Reclasication of Shariah Status Risk The risk that the currently held Shariah-compliant securities in the portfolio of Shariah-based funds may be reclassified to be Shariah non-compliant upon review of the securities by the SACSC performed twice yearly. If this occurs, the value of the fund may be adversely affected where the Manager will take the necessary steps to dispose of such securities in accordance with the SACSCs advice.

RISK MANAGEMENT
Forecasting Risk Potential risks are taken into consideration in the process of sector allocation and stock selection based on analysis on various key factors such as economic conditions, liquidity, qualitative and quantitative aspects of the securities. System Control Risk parameters are set internally for each fund, depending on clients risk prole. These risk parameters include limits of issuer bet, group issuer, sector rating and issue size of the securities held in the portfolio. CRTS is in place to monitor portfolio risks, serving as an auto lter for any limitations or breaches. Other Info Target Market Participants with moderate to high tolerance and medium to long investment horizon. Basis & Frequency of unit Valuation Daily Forward pricing. Exceptional circumstances PruBSN reserves the right in exceptional circumstances (for example, when there is an unusually high volume of sale of investments within a short period) to defer the withdrawal of units and the surrender of the certicate for a period not exceeding six (6) months from the date of application. PruBSN may suspend unit pricing and certificate transaction if any of the exchanges in which the fund is invested is temporarily suspended for trading. In such event, written notice shall be given to participants of inforce certicates. Remarks: CRTS FBMSHA IFF IPDS MBB NAV SACSC GII KLSI

- The Charles River Trading System - FTSE Bursa Malaysia Emas Shariah Index - Islamic Financial Facility - Islamic Private Debt Securities - Malayan Banking Berhad - Net Asset Value - Shariah Advisory Council of the Securities Commission - Government Investment Issue - Kuala Lumpur Syariah Index 17

I nves t m en t O b ject ive

The Takafulink Dana Ekuiti Dinasti Fund aims to provide long-term capital appreciation by investing in Shariah-compliant investments with exposure to the Greater China region.
I nves t m en t S t rat eg y & Ap p ro ach
PFMB employs a disciplined, valuation-driven investment style with the aim to generate superior long-term returns. In the emerging markets where majority of asset markets are not reasonably efcient, sufcient pricing inefciencies do exist to make active portfolio management worthwhile. Asset prices are driven by fundamentals, and deviations from the equilibrium represent Shariah-compliant investment opportunities. Our aim is to exploit these periodic opportunities at Shariah-compliant stock selection level, focusing on value investing to achieve prot maximization whilst minimizing risk. PFMB undertakes a disciplined approach of consistently monitoring Shariahcompliant stocks and the implementation of a systematic process of identifying potential gems, supported by an in-house research team, which give us an added advantage in our aim to generate superior long-term returns. By imputing conservative assumptions to our earnings forecasts, we ensure that our in-house valuation target is achievable, but at the same time we are not eliminating potential opportunities by taking calculated risk in periods of volatility that tend to be event driven. Where appropriate and should opportunity arise, such as expected liquidity surges, we may selectively adopt an active trading strategy for the purpose of enhancing returns. This may entail using a portion of the fund for short-term trading. The fund seeks to achieve its objective by investing primarily in the Prudential Dinasti Equity Fund managed by Prudential Fund Management Berhad (PFMB). The Prudential Dinasti Equity Fund in turn invests in Shariahcompliant equities and equity-related securities of companies based in the Greater China region which potentially offer attractive long-term value. These include Shariah-compliant securities of Greater China-based companies listed or to be listed on recognised exchanges of the Peoples Republic of China, Hong Kong, Taiwan and other administrative regions managed by the Peoples Republic of China, as well as Shariah-compliant securities of other recognised exchanges which include but not limited to recognised exchanges in Malaysia, Singapore and United States of America.

19

TA KA FULI NK DA NA EKUI TI DI NAS T I

FEATURES OF FUND

The fund may minimize potential equity downside risk by investing the balance of the funds NAV not invested in Shariah-compliant equities and equityrelated securities into Islamic nancial instruments which include sukuk, Islamic debentures and Islamic money market instruments such as American Depository Receipts and Global Depository Receipts as well as Shariah-based liquid assets. In order to achieve its objective, the fund will invest at least 70% of its NAV in Shariah compliant equities and equity-related securities. In the event the investment of the fund in Shariah-compliant equities and equities-related securities fall below 70%, we shall take the necessary actions to maintain the aforesaid allocation within reasonable time. The remaining of the NAV of the fund not invested in Shariah-compliant equities and equity-related securities will be invested in Islamic nancial instruments including but not limited to sukuk and Islamic debentures, Islamic money market instruments, Shariah-based deposit or Shariah-based liquid assets/cash, Islamic derivatives and Islamic structured products. The fund will mainly be adopting a bottom-up Shariah-compliant investment approach, with no benchmark constraint. At the initial stages as the fund size is growing, for efciency consideration the Manager may adopt a less active approach when managing the fund. This may include having the funds Shariah equity investment only in a selection of Shariah-compliant stocks from the benchmark. Islamic derivatives (such as Islamic futures contracts or options) may still be used to achieve the objectives. Other than Shariah-compliant stocks listed in the Greater China region such as Peoples Republic Of China, Special Administrative Regions (Hong Kong and Macau), and Taiwan, the fund has the flexibility to pick Shariah-compliant stocks of Greater China-based companies listed in other recognised exchanges. This includes but not limited to Malaysia, Singapore and United States of America.

20

Aset Allocation
The Takafulink Dana Ekuiti Dinasti Fund will feed up to 100% into the PRU Dinasti Equity Fund. At least 70% of the PRU Dinasti Equity Funds NAV to be invested in the Shariah-compliant equities and equity-related securities. The remaining of the NAV of the fund not invested in Shariah-compliant equities and equity-related securities will be invested in Islamic financial instruments.

Performance Benchmark
Dow Jones Islamic Market Greater China Index. Further information on benchmark can be obtained at Bloomberg website

Fund Manager
Prudential Fund Management Berhad (531241-U).

FEES & CHARGES Fund Management Charge

1.5% p.a

21

FUND PERFORMANCE
Notice: Past performance of the fund is not an indication of its future performance

Year 2010 2009 2008 2007 2006

Takafulink Dana Ekuiti Dinasti 9.41% N/A N/A N/A N/A

Benchmark 8.61% N/A N/A N/A N/A

Warning: This is strictly the performance of the investment fund, and not the returns earned on the actual contribution paid of the investment-linked takaful product.

U n it P ricin g
Unit pricing is done daily. Unit price is calculated based on the market value of the underlying assets of the fund, divided by the number of units issued. A Takafulink fund does not pay any dividend. All incomes and capital gains are automatically rolled up in its unit price. Unit price is the single price at which units are created and cancelled.

F o rw a rd P ricin g
Units are created and cancelled at the next pricing date following receipt of contribution or notication of claim respectively. Basis of calculation of past performance: = NAV* For Year n % NAV* For Year n-1

* NAV is per unit basis

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RISKS
Market Risk This risk refers to potential losses that may arise from changes in the market prices of the investments. The changes may be specic to the individual security or its issuer or factors affecting all securities traded in the market or a combination of all. It may be caused by various factors among others are movement of interest rates, volatility of the stocks, foreign exchange rates and share prices. A Shariah-based fund with a well-diversified portfolio of Shariahcompliant securities from different geographical areas and sectors helps mitigate this risk so that the collapse of any one Shariah-compliant security or any one geographical or sector area would not impact too greatly on the value of the fund. Liquidity Risk Liquidity refers to the ease of converting a Shariah-compliant investment into cash without incurring an overly significant loss in value. If a Shariah-based fund has a large portfolio of Shariah-compliant stocks issued by smaller companies, the relatively less liquid nature of those Shariah-compliant stocks can cause the value of the fund to drop; this is because there are generally less ready buyers of such Shariah-compliant stocks as compared with the Shariah-compliant stocks of larger and more established companies. The risk is managed by choosing Shariah-compliant stocks with better liquidity. Interest Rate Risk Interest rate risk is a general risk affecting Shariah-based funds. The reason for this is because a high level of interest rates will inevitably affect corporate prots, dampen investments and aggregate demand leading to an economic slowdown. This will have an impact on the value of Shariah-compliant equity and demand for sukuk. Investment in Islamic money market instruments may also be subject to unanticipated rise in interest rate. Sukuk are subject to interest rate uctuations with longer maturity and lower prot rates sukuk being more susceptible to such interest rate movements. In general, the demand for sukuk moves inversely with interest rate movements, therefore, demand for sukuk falls when interest rate rise and vice versa. To address the interest rate risk, we will seek to diversify the funds portfolio into sukuk with varying maturity periods. Stock Risk or Isuer Risk This risk refers to the individual risk of the respective companies issuing the securities. Specic risk includes, but is not limited to changes in consumer tastes and demand, legal suits, competitive operating environments, changing industry conditions and management omissions and errors. However, this risk is minimised through investing in a wide range of companies in different sectors and thus function independently from one another.

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Currency Risk This risk is associated with Shariah-compliant investments denominated in foreign currencies. The NAV of the fund will be lower if the foreign currency in which the Shariah compliant securities are denominated moves unfavourably against Ringgit Malaysia. Operational Risk The performance of the fund depends on the proper functioning of our systems and processes, both internal and external. An unforeseen disruption of such systems and processes, including that resulting from a market disruption or system interruption, may result in a delay in transactions involving the fund, which may in turn have an unfavourable effect on the performance of the fund. We will be prepared for, and have the necessary resources to manage, any internal operational issues arising from this investment, including receipt of principal and returns. Country Risk This risk refers to the risk of investing in foreign markets which subjects the fund to changes and developments in regulations, politics and the economy of the country. The investments may be affected by uncertainties in the investing country such as currency uctuations, international political developments, restrictions on foreign investment and currency repatriation, changes in governmental policies, changes in taxation policies and other developments in the laws and regulations of countries. In addition, the reduced availability of public information, the legal infrastructure and the lack of uniform accounting, auditing and nancial reporting standards or other regulatory practices and requirements may reduce the degree of investor protection afforded. Some of the Shariah-compliant securities may also be subjected to government taxes or incur higher custodian expenses which may reduce the yield on such Shariah-compliant securities. Investing in emerging markets such as the Peoples Republic of China subjects the fund to higher political risks, regulatory risks and liquidity risks than investments in developed markets. Such securities are therefore, in general, more volatile than those of developed countries, with the result that units in the funds investing in Shariah-compliant securities of emerging markets such as this fund may be subject to greater price volatility. Investing in developed markets in the Greater China region such as Hong kong as well as investing in Shariah-compliant securities of Greater China-based companies listed in other markets such as Singapore and Unites States of America may mitigate this risk. Political and/or Regulatory Risks The value of the assets of the fund may be affected by uncertainties such as international political developments, changes in government policies, changes in taxation policies, restrictions on foreign investment and currency repatriation, currency uctuations and other developments in the laws and regulations

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of countries in which an investment may be made. Furthermore, the legal infrastructure and accounting, auditing and reporting standards in certain countries in which an investment may be made may not provide the same degree of investor protection or information to investors as would generally apply in major equity markets. Foreign ownership restrictions in some markets may mean that corporate action entitlements in relation to the fund are invested into may not always be secured or may be restricted. Islamic Derivative Risk Islamic derivatives involve risks that are different from and may be greater than traditional Shariah-compliant securities investments and it is possible that the volatility of the NAV of a Shariah-based fund may be high when the fund invests more than 30% of its NAV in Islamic derivatives. Some of the risks associated with Islamic derivatives are market risk, management risk, credit risk and liquidity risk. As such, it is essential that investments in Islamic derivatives be monitored closely. In this case, a limit has been set in order to mitigate this risk. Islamic structured products may contain one or more embedded Islamic derivatives, including Islamic options. The value of such options depends on a variety of market factors, including movements in the underlying reference index, the variability or volatility of such index, interest rate levels, foreign exchange rates and other factors. In particular, the investor should be aware that the value of the option may not necessarily change in constant proportion to changes in the underlying reference index. Further, options by their nature will tend to decline in value over time, assuming that all other market factors remain unchanged. These factors affecting the value of the option will also be reected in the value of the investment in which it is embedded. Portfolio Risk The fund is intended for investors who can accept the risks associated with investing primarily in the Shariah-compliant securities with exposure to the Greater China Region. Investors in Shariah-compliant equities will be subject to the risks associated with Shariah-compliant equity and equity-related securities in the said region, including uctuations in market prices, adverse issuer or market information and the fact that Shariah-compliant equities and equityrelated interests are subordinate in the right of payment to other corporate Shariah-compliant securities, including sukuk. Likewise, investors will be subject to the risks associated with sukuk, including credit and interest rate risk, and the additional risks associated with high-yield sukuk, participations and Islamic derivative securities. In addition, investors should be aware of the risks associated with the active management techniques that are expected to be employed by the Manager. An investment in the fund does not constitute a complete Shariah-compliant investment program. Investors may wish to complement an investment in the fund with other types of investments.

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Counterparty Risk The fund will be exposed to credit risk on the counterparties with which it trades, such as the possibility of the insolvency, bankruptcy or default of a counterparty with which the fund trades, which could result in losses to the fund. Investing in instruments issued by counterparty with a minimum credit rating of AA3 and P2 or equivalent rating by recognized credit ratings agencies in Malaysia or any other internationally recognized ratings helps mitigate this risk. Prepayment & Commitment Risk Islamic structured product is designed as a hold-to-maturity investment. Therefore, the early redemption amount may be lesser than the principal amount originally invested or part thereof, in the case of partial redemptions. Any request to restructure the Islamic structured product, if agreed by the issuer, is effectively an early redemption by the fund. The full amount that would have been received is used to enter into a new Shariah-compliant investment on such terms that are applicable to the new investment. Such amount may factor in all accrued prot due (if any), losses due to market movements, break costs and other losses incurred in discharging a related hedging or other arrangements made in the design of the Islamic structured products. Credit / Default Risk Shariah-compliant investments are subject to credit/default risk in the event that the issuer of the instrument is faced with nancial difculties, which may decrease their credit worthiness. This in turn may lead to a default in the payment of principal and prot and ultimately a reduction in the value of funds. We manage this risk by setting minimum level of credit rating and regularly monitor the rating of the issuer. Reclassication of Shariah Status Risk The risk refers to the risk that currently held Shariah-compliant securities in the portfolio of Shariah-based funds may be reclassified to be Shariah noncompliant in the periodic review of the securities by the SACSC, the Shariah Advisor or the Shariah Boards of the relevant Islamic indices. If this occurs, the value of the fund may be adversely affected where the Manager will take the necessary steps to dispose of such securities in accordance with the advice from the SACSC, the Shariah Advisor and/or the Shariah Board of the relevant Islamic indices.

RISK MANAGEMENT
Forecasting Risk Potential risks are taken into consideration in the process of stock selection based on analysis on various key factors such as economic conditions, liquidity, qualitative and quantitative aspects of the stock.

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System Control Risk parameters are set internally for each fund, which are generally more stringent than the limits imposed by Security Commission. These risk parameters include limits of issuer bet, group issuer, sector rating and issue size of the securities held in the portfolio. CRTS is in place to monitor portfolio risks, serving as an auto lter for any limitations or breaches. Other Info Target Market Participants with high risk tolerance and long term investment horizon and wish to have exposure to Greater China region. Basis & Frequency of unit Valuation Daily Forward pricing. Exceptional circumstances PruBSN reserves the right in exceptional circumstances (for example, when there is an unusually high volume of sale of investments within a short period) to defer the withdrawal of units and the surrender of the certicate for a period not exceeding six (6) months from the date of application. PruBSN may suspend unit pricing and certificate transaction if any of the exchanges in which the Underlying Fund invests in is temporarily suspended for trading. In such event, written notice shall be given to participants of in force certicates. PruBSN may suspend unit pricing and certificate transaction if Prudential Fund Management Berhad suspends subscription to the Prudential Dinasti Equity Fund.

Remarks: CRTS - The Charles River Trading System NAV - Net Asset Value SACSC - Shariah Advisory Council of the Securities Commission 27

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www.prubsn.com.my

Prudential BSN Takaful Berhad (740651-H)

Level 8A, Menara Prudential, No. 10, Jalan Sultan Ismail, 50250 Kuala Lumpur. Tel: 03-2053 7188 Fax: 03-2072 6188 Email: customer@prubsn.com.my