Date of issuance: 31 December s019

Product Highlights Sheet

Principal Islamic Lifetime Sukuk Fund
(formerly known as CIMB Islamic Sukuk Fund)

Responsibility Statement
This Product Highlights Sheet has been reviewed by the directors or authorised committee or persons approved by the directors of
Principal Asset Management Berhad. Having made all reasonable inquiries, they confirm to the best of their knowledge and belief,
that there are no false or misleading statements or omission of other facts which would make any statement in this Product
Highlights Sheet false or misleading.

Statements of Disclaimer
The Securities Commission Malaysia has authorized/recognised the issuance of Principal Islamic Lifetime Sukuk Fund and a copy of
this Product Highlights Sheet has been lodged with the Securities Commission Malaysia.

The authorisation of Principal Islamic Lifetime Sukuk Fund and lodgement of this Product Highlights Sheet, should not be taken to
indicate that the Securities Commission Malaysia recommends Principal Islamic Lifetime Sukuk Fund or assumes responsibility for
the correctness of any statement made or opinion or report expressed in this Product Highlights Sheet.

The Securities Commission Malaysia is not liable for any non-disclosure on the part of Principal Asset Management Berhad
responsible for Principal Islamic Lifetime Sukuk Fund and takes no responsibility for the contents of this Product Highlights Sheet.
The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Product Highlights Sheet,
and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents.

The Manager
Principal Asset Management Berhad (formerly known as CIMB-Principal Asset Management Berhad) (“Principal Malaysia”) holds a
Capital Markets Services License for fund management and dealing in securities restricted to unit trust under the Capital Markets
and Services Act s007 and specializes in managing and operating unit trusts for investors, both institutional and retail. Principal
Malaysia’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, Principal Malaysia is an
approved private retirement scheme provider in Malaysia. Principal Malaysia originally commenced its operations as a unit trust
company in November 1995.

This Product Highlights Sheet only highlights the key features and risks of this unlisted capital market product. We
recommend that you read this Product Highlights Sheet together with the Replacement Master Prospectus (Islamic Funds)
dated 31 December 2019 and its supplementary (if any). You are advised to request, read and understand the Master
Prospectus (Islamic Funds) before deciding to invest.

In alliance with 1
Brief Information on Principal Islamic Lifetime Sukuk Fund
Principal Islamic Lifetime Sukuk Fund is a Sukuk fund issued by Principal Malaysia. The Fund aims to gain higher than average
income over the medium to long-term by investing in a diversified portfolio consisting principally of Sukuk, certificates of deposit,
short-term money market instruments and other permissible investments under the Shariah principles.

This is neither a capital protected nor capital guaranteed fund.

Product Suitability
The recommended investment timeframe for this Fund is three (3) years or more. This Fund is suitable for investors who:
 have a medium-term to long-term investment horizon;
 want a portfolio of investments that adhere to Shariah principles;
 want a diversified portfolio of Islamic fixed income securities;
 want to receive a regular income stream and maintain the value of their investment over medium-term to long-term; and/or
 look for a less volatile investment but can accept that returns may fluctuate over the short-term.

Key Product Features

Fund Category/Type Sukuk / Income

Benchmark Quantshop GII Medium Index for performance comparison purpose only.
Investment policy and In line with its objective, the investment strategy and policy of the Fund is to invest in a diversified
principal investment portfolio of Islamic fixed income securities consisting principally of Sukuk, which aim to provide a
strategy steady stream of income from the profit of Sukuk. A minimum of 70% and up to a maximum of 98%
of the Fund’s NAV may be invested in Sukuk carrying at least a “BBB3” or “Ps” rating by RAM or
equivalent rating by MARC or by local rating agency(ies) of the country of issuance; or “BBB-” by S&P
or equivalent rating by any other international rating agencies. The Fund may invest up to 40% of its
NAV in Unrated Sukuk and up to s8% of its NAV in other permissible Shariah-compliant investments.
The Fund may also opt to seek investment exposure via Islamic CIS that is in line with the Fund’s
objective, subject to the requirements of the SC Guidelines. The rest of the Fund is maintained in the
form of Islamic liquid assets to meet any withdrawal payments to Unit holders. The Fund may also
invest up to 30% of its NAV in foreign markets where the regulatory authorities are ordinary or
associate members of the IOSCO.

The asset allocation strategy for this Fund is as follows:

 between 70% to 98% (both inclusive) of the Fund’s NAV in Sukuk;
 up to s8% of the Fund’s NAV in other permissible Shariah-compliant investments;
 up to 40% of the Fund’s NAV in Unrated Sukuk; and
 at least s% of the Fund’s NAV in Islamic liquid assets.
Launch date 8 October s004
Financial year-end 31 August
Distribution policy Distribution (if any) is expected to be distributed annually, depending on the performance of the
Fund and at our discretion.
Manager Principal Asset Management Berhad (formerly known as CIMB-Principal Asset Management Berhad)
Trustee AmanahRaya Trustees Berhad
Shariah Adviser Amanie Advisors Sdn Bhd
Solicitors Soon Gan Dion & Partners

Key Risks

General risks of investing in a unit trust fund

Returns not The investment of the fund is subject to market fluctuations and its inherent risk. There is NO
guaranteed GUARANTEE on the investment returns, nor any assurance that the fund’s investment objective will
be achieved.
General market Market risk refers to the possibility that an investment will lose value because of a general decline in
environment risk financial markets, due to economic, political and/or other factors, which will result in a decline in the
fund’s NAV.
Inflation risk This is the risk that your investment in the unit trust fund may not grow or generate income at a rate
s
 that keeps pace with inflation. This would reduce your purchasing power even though the value of
the investment in monetary terms has increased.
Financing risk This risk occurs when you obtain financing to finance your investment. The inherent risk of investing
with money obtained from financing includes you being unable to service the financing payments.
Manager’s risk This risk refers to the day-to-day management of the fund by the manager which will impact the
performance of the fund, e.g. investment decisions undertaken by the manager, as a result of an
incorrect view of the market may adversely affect the performance of the fund.
Reclassification of This risk refers to the risk that the currently held Shariah-compliant securities in the fund may be
Shariah status risk reclassified as Shariah non-compliant in the periodic review of the securities by the SAC of the SC,
the Shariah Adviser or the Shariah boards of the relevant Islamic indices or Shariah-compliant
securities. If this occurs, we will take the necessary steps to dispose such Shariah-compliant
securities. There may be opportunity loss to the fund due to the fund not being allowed to retain the
capital excess gains derived from the disposal of the Shariah non-compliant securities.
In the event that the Shariah non-compliant securities are disposed at a price lower than the
investment cost, it may adversely affect the value of the fund. Thus, it may cause the NAV of the
fund or price of units to fall

Specific risks of the Fund

Credit and default risk Credit risk relates to the creditworthiness of the securities issuers or counterparties and their
expected ability to make timely payment of profit and/or principal. Default risk relates to the risk
that a securities issuer or counterparties either defaulting on payments or failing to make payments
in a timely manner. If the risk materializes, the value of the fund could be adversely affected.
Interest rate risk Interest rate risk refers to the impact of interest rate changes on the valuation of Sukuk and Islamic
money market instruments. When interest rates rise, Sukuk and Islamic money market instruments
prices generally decline and this may lower the market value of the Fund’s investment in Sukuk and
Islamic money market instruments. In managing the Sukuk, we take into account the coupon rate
and time to maturity of the Sukuk with an aim to mitigate the interest rate risk. As for Islamic money
market instruments, the typical tenor of these instruments are less than 1s-month maturity and
unlike Sukuk, any change to interest rate will only have a minor impact to the prices of these
instruments.
Please note that although Sukuk is a non-interest bearing instrument, its price movement is
correlated to the movement in the interest rates, which is herein referred to the general interest
rate of the country, which may affect the value of the investment of the Fund.
Risk of investing in Investment in emerging markets generally involves a higher degree of risk due to the greater
emerging markets possibility of political or economic instability and societal tensions. As such, you should be aware that
investments in emerging markets may be subject to higher price volatility and therefore will tend to
have a higher investment risk that will affect the fund's growth.
Risk associated with There are inherent risks associated with investment in warrants. The value of warrants is influenced
investment in warrants by the current market price of the underlying security, the exercise price of the contract, the time to
expiration of the contract and the estimate of the future volatility of the underlying security's price
over the life of the contract. Generally, the erosion in value of Shariah-compliant warrants
accelerates as it approaches its expiry date. Like securities, we will undertake fundamental research
and analysis on these instruments with an aim to mitigate its risks.
Country risk Investments of the Fund in any countries may be affected by changes in the economic and political
climate, restriction on currency repatriation or other developments in the laws or regulations of the
countries in which the Fund invests in. For example, the deteriorating economic condition of such
countries may adversely affect the Fund's NAV.
Currency risk As the investments of the Fund may be denominated in currencies other than the base currency of
the Fund, any fluctuation in the exchange rate between the base currency of the Fund and the
currencies in which the investments are denominated may have an impact on the value of these
investments. Any gains or losses arising from the fluctuation in the exchange rate may further
increase or decrease the returns of the investment.
Risk associated with Since the Fund may invest into Islamic CIS, there is a risk of concentration into Islamic CIS, in which
investing in CIS the Islamic CIS’s management company has absolute discretion over the Islamic CIS’s investment
technique and knowledge, operational controls and management. In the event of mismanagement
of the Islamic CIS and/or the management company, the NAV of the Fund, which invests into those
Islamic CIS would be affected negatively. Should the situation arise, we will seek for another Islamic
CIS that is consistent with the objective of this Fund.
Note: Please take note that if your investments are made through an IUTA via a nominee system of ownership, you would not be
deemed to be a Unit holder under the Deed and as a result, you may not exercise all the rights ordinarily conferred to a Unit holder
(e.g. the right to call for Unit holders’ meetings and the right to vote at a Unit holders’ meeting).

3
Fees & Charges

Application Fee Up to s.00% of the NAV per unit.

Withdrawal Fee Nil.
Switching Fee Switching is treated as a withdrawal from the Fund and an investment into another Principal Malaysia
Fund. You will be charged a Switching Fee equal to the difference (if any) between the Application
Fees of these two (s) funds. In addition, we may impose a RM100 administrative fee for every switch.
Transfer Fee A maximum of RM50.00 may be charged for each transfer.
Management Fee Up to 0.95% per annum of the NAV of the Fund.
Trustee Fee Up to 0.06% per annum of the NAV of the Fund.
Other charges payable Any applicable bank charges and other bank fees incurred as a result of an investment or withdrawal
directly by you when will be borne by you.
purchasing or
withdrawing the units

Expenses directly Only expenses that are directly related to the Fund can be charged to the Fund. Examples of relevant
related to the Fund expenses are audit fee and tax agent’s fee.
Note: All fees and charges are subject to any applicable taxes and/or duties as may be imposed by the government or other
authorities (if any) from time to time. As a result of changes in any rule, regulation, directive, notice and/or law issued by the
government or relevant authority, there may be additional cost to the fees, expenses, charges and/or taxes payable to and/or by the
Fund or you as disclosed in the PHS.

Despite the maximum Application Fee disclosed above, you may negotiate with us or our Distributors for lower fee or charges.
However, you should note that we or our Distributors may, for any reason at any time, where applicable, accept or reject your request
and without having to assign any reason, either generally (for all investors) or specifically (for any particular investor, a group of
investors or investments made via any digital platform) without prior notice to you. If you invest via EPF-MIS (where available), you
may be charged an Application Fee of up to 3.00% of the NAV per unit, or such other rate as may be determined by the EPF.

We may, for any reason at any time, where applicable, waive or reduce the amount of any fees (except the Trustee Fee) or other
charges payable by you in respect of the Fund, either generally (for all investors) or specifically (for any particular investor, a group of
investors or investments made via any digital platform) and for any period or periods of time at our absolute discretion.

Transaction Information

Minimum initial Non-RSP : RMs,000 or such other amount as we may decide from time to time.
investment#
RSP : RMs,000 or such other amount as we may decide from time to time.
Minimum additional Non-RSP : RM500 or such other amount as we may decide from time to time.
investment
RSP : RM500 or such other amount as we may decide from time to time.

Minimum withdrawal 500 units or such other number of units as we may decide from time to time.

Minimum balance 1,000 units or such other number of units as we may decide from time to time.
Switching Switching will be conducted based on the value of your investment in the Fund. The minimum
amount for a switch is subject to:
 For switching out of the Fund:
o the minimum withdrawal applicable to the Fund;
o the minimum balance required for the Fund, unless you are withdrawing from the Fund in
entirety; and
o the Withdrawal Fee of the Fund (if any).
 For switching into the Fund:
o the minimum initial investment amount or the minimum additional investment amount (as
the case may be) applicable to the Fund; and
o the Switching Fee applicable for the proposed switch (if any).
Transfer Transfer of unit holdings is allowed but this is subject to such terms and conditions as may be
stipulated in the Deed. However, we may allow or refuse any transfer of unit at our absolute
discretion.

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 Cooling-off period Six (6) Business Days from the date the application form is received and accepted by us or our
Distributors from the first time investor. However, Principal Malaysia’s staff and person(s) registered
to deal in unit trust of Principal Malaysia or any of our Distributors are not entitled to the cooling-off
right.
In addition, if you have invested via the EPF-MIS (where available), your cooling-off right is subject to
EPF’s terms and conditions.
#
The minimum initial investment for the EPF-MIS (where available) shall be RM1,000 (or such other amount as may be determined
by EPF) or as per the amount stated under the minimum initial investment column, whichever is higher. Please note that there may
be changes to the status of the eligibility of the Fund under the EPF-MIS from time to time. Please refer to our website at
http://www.principal.com.my or http://www.kwsp.gov.my for updated information.

Note: You may request for a lower amount or number of units when purchasing units (or additional units) or withdrawing units, which
will be at our sole and absolute discretion. However, you should note that we may, for any reason at any time, where applicable,
accept or reject a lower amount or number of units and without having to assign any reason, either generally (for all investors) or
specifically (for any particular investor, a group of investors or investments made via any digital platform) without prior notice to you.
We may also, for any reason at any time, where applicable, reduce the minimum balance, either generally (for all investors) or
specifically (for any particular investor, a group of investors or investments made via any digital platform) without prior notice to you.
For increase in the number of units for minimum withdrawal and minimum balance, we will require concurrence from the Trustee and
you will be notified of such changes before implementation.

YOU SHOULD NOT MAKE PAYMENT IN CASH TO A UNIT TRUST CONSULTANT OR ISSUE A CHEQUE IN THE NAME OF A
UNIT TRUST CONSULTANT.

Valuations
If the Fund does not have foreign investments:
We will value the Fund for a Business Day at the end of that Business Day (T day). The NAV per unit for a Business Day is available
on our website at http://www.principal.com.my after 10:00 a.m. on the following Business Day (T+1).

If the Fund has foreign investments:

We will value the Fund for a Business Day on the next Business Day (T+1) by 4:00 p.m. This is to cater for the currency translation of
the foreign securities/instruments to the Fund’s base currency. Currently, the currency translation is based on the bid exchange
rate quoted by Bloomberg or Reuters at UK time 4:00 p.m. (Malaysian time 11:00 p.m. or 1s:00 a.m.) on the same day, or such other
time as stipulated in the IMS. The NAV per unit for a Business Day is available on our website at http://www.principal.com.my after
5:30 p.m. on the following Business Day (T+1).

Please refer to the “Unit Pricing” section of the Master Prospectus (Islamic Funds) for more information.

Avenues to Exit This Investment

To exit from this investment, you may withdraw from the Fund, switch out of the Fund or transfer your unit holdings to other
investors. You may withdraw your investment at the NAV per unit of the Business Day.

Withdrawals can be made from the Fund by completing a withdrawal form and sending it to the relevant Distributor or our head
office. There is no restriction on the frequency of withdrawals. The amount that you will receive is calculated by the withdrawal
value less the Withdrawal Fee, if any. You will be paid in RM within ten (10) calendar days of receipt of the complete withdrawal
request. However, if the total withdrawal amount is fifteen percent (15%) or more of the total NAV of the Fund for a Business Day,
we will pay to you within fifteen (15) calendar days from the day we receive the withdrawal notice. You will have to bear the
applicable bank fees and charges, if any.

For more information on the withdrawals, switching, transfer facility and cooling-off period, please refer to the “Transaction
Information” chapter of the Master Prospectus (Islamic Funds). For more information on the fees and charges incur when you exit
from this investment, please refer to “Fees, Charges and Expenses” chapter of the Master Prospectus (Islamic Funds).

Fund Performance
Average total return of the Fund
FYE: 31 August 2019 in % 1-Year 3-Year 5-Year 10-year Since Inception
Fund 8.98 5.58 5.3s 4.77 4.s1
Benchmark 6.7s 4.18 4.76 4.30 4.5s
Note: All performance figures have been extracted from Lipper.

5
Annual total return of the Fund
FYE: 31 August, in % 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010

Fund 8.98 4.6s 3.s3 6.64 3.s3 3.37 s.s3 6.15 5.s6 4.15

Benchmark 6.7s 3.94 1.94 6.70 s.98 3.90 s.07 4.49 3.58 5.s5
Note: All performance figures have been extracted from Lipper.

For the financial year ended 31 August s019, the Fund delivered a total return of 8.98% versus the benchmark’s return of 6.7s%.

Basis of calculation and assumptions made in calculating the returns

Percentage = NAV on that day – NAV of previous day Average = Total returns of the years under review
growth --------------------------------------------------------------------------------- total return --------------------------------------------------------------------------------------
NAV of previous day Number of years under review

Portfolio Turnover Ratio (“PTR”)

FYE: 31 August 2019 2018 2017

Fund 0.80 0.94 0.6s

The Fund’s PTR was decreased from 0.94 times to 0.80 times due to increase in average NAV during financial year under review.

Distribution
FYE: 31 August 2019 2018 2017

Gross distribution per unit (Sen) 7.00 6.50 6.50

Fund
Net distribution per unit (Sen) 7.00 6.50 6.50

The Fund distributed a total net income of RM13.36 million to unit holders for the financial year ended 31 August s019.

PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF ITS FUTURE PERFORMANCE.

Contact for Further Information / Complaint

(i) You may contact our Customer Care Centre at (03) 7718 3000. Our Customer Care Centre is available between 8:45 a.m. and
5:45 p.m. (Malaysian time) on Mondays to Thursdays and between 8:45 a.m. and 4:45 p.m. (Malaysian time) on Fridays (except
on Selangor public holidays) or you can e-mail us at service@principal.com.my.

(ii) Alternatively, you may also contact:

(a) Securities Industry Dispute Resolution Center (SIDREC):
 via phone to : 03-ss8s ss80
 via fax to : 03-ss8s 3855
 via e-mail to : info@sidrec.com.my
 via letter to : Securities Industry Dispute Resolution Center (SIDREC)
Unit A-9-1, Level 9, Tower A, Menara UOA Bangsar
No.5, Jalan Bangsar Utama 1, 59000 Kuala Lumpur

(b) SC’s Consumer & Investor Office:

 via phone to : 03-6s04 8999
 via fax to : 03-6s04 8991
 via e-mail to : aduan@seccom.com.my
 via online complaint form available at www.sc.com.my
 via letter to : Consumer & Investor Office
Securities Commission Malaysia
No 3 Persiaran Bukit Kiara, Bukit Kiara, 50490 Kuala Lumpur

(c) Federation of Investment Managers Malaysia’s Complaints Bureau:

 via phone to : 03-s09s 3800
 via fax to : 03-s093 s700
 via e-mail to : complaints@fimm.com.my
 via online complaint form available at www.fimm.com.my
 via letter to : Legal, Secretarial & Regulatory Affairs
Federation of Investment Managers Malaysia
19-06-1, 6th Floor Wisma Tune
6
 No. 19, Lorong Dungun Damansara Heights, 50490 Kuala Lumpur

Appendix: Glossary
Application Fee - Preliminary charge on each investment.
Bursa Malaysia - Bursa Malaysia Securities Berhad.
Business Day - Mondays to Fridays when Bursa Malaysia is open for trading, and/or banks in Kuala Lumpur and/or
Selangor are open for business.
CIS - Refers to collective investment schemes as defined under the SC Guidelines.
Deed - The principal deed and all supplemental deed in respect of the Funds made between us and the Trustee,
in which Unit holders agree to be bound by the provisions of the deeds.
Distributor - Any relevant persons and bodies appointed by Principal Malaysia from time to time, who are responsible
for selling units of the Fund, including Principal Distributors and IUTAs.
EPF - Employees’ Provident Fund.
EPF-MIS - EPF’s Members Investment Scheme.
Fund or iLI-S - Principal Islamic Lifetime Sukuk Fund (formerly known as CIMB Islamic Sukuk Fund).
IMS - Investment Management Standards issued by the Federation of Investment Managers Malaysia.
IOSCO - International Organization of Securities Commissions. For further details, please refer to
http://www.iosco.org.
IUTA - Institutional Unit Trust Scheme Adviser.
MARC - Malaysian Rating Corporation Berhad.
Management Fee - A percentage of the NAV of the Fund that is paid to us for managing the portfolio of the Fund.
Master Prospectus - Refers to the disclosure document issued by us describing the details of the Fund.
(Islamic Funds)
NAV - Net Asset Value.
NAV of the Fund - The NAV of the Fund is the value of all Fund’s assets less the value of all the Fund’s liabilities, at the
point of valuation. For the purpose of computing the annual Management Fee (if any) and annual
Trustee Fee (if any), the NAV of the Fund should be inclusive of the Management Fee and Trustee Fee
for the relevant day.
NAV per unit - The NAV of the Fund divided by the number of units in circulation, at the valuation point.
Principal - Refers to the unit trust consultants of Principal Malaysia.
Distributors
Principal Malaysia - Principal Asset Management Berhad (formerly known as CIMB-Principal Asset Management Berhad).
or the Manager
PHS - Refers to Product Highlights Sheet; the disclosure document issued by the Manager that contains clear
and concise information of the salient features of the Fund.
RAM - RAM Rating Services Berhad.
RM or MYR - Malaysian Ringgit.
Quantshop GII - An index developed by Quant Shop Pty. Ltd. For further details, please refer to
Medium Index http://www.quantshop.com.
RSP - Regular Savings Plan.
S&P - Standard & Poor’s.
SAC - Shariah Advisory Council.
SC - Securities Commission Malaysia.
SC Guidelines - Guidelines on Unit Trust Funds issued by the SC.
Shariah - Islamic law, originating from the Qur'an (the holy book of Islam), and its practices and explanations
rendered by the prophet Muhammad (pbuh) and ijtihad of ulamak (personal effort by qualified Shariah
scholars to determine the true ruling of the divine law on matters whose revelations are not explicit).
Sukuk - Refers to certificates of equal value which evidence undivided ownership or investment in the assets
using Shariah principles and concepts.
Note: For local Sukuk, it must also comply with Shariah principles and concepts endorsed by the SAC of
SC.
Switching Fee - A charge that may be levied when switching is done from one (1) fund to another.
Transfer Fee - A nominal fee levied for each transfer of units from one (1) Unit holder to another.
Trustee Fee - A percentage of the NAV of the Fund that is paid to the Trustee for its services rendered as trustee of
the Fund.
UK - United Kingdom.

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Unrated Sukuk - Unrated Sukuk refers to Sukuk which are not rated by any rating agencies, including but not limited to
Islamic treasury bills, Sukuk issued by government, government agency, statutory board or a
corporation.
Note: In this context, Unrated Sukuk are not junk Sukuk. The Fund will only invest in Unrated Sukuk that
fulfils the selection criteria of the credit evaluation process.
Unit holder - The registered holder for the time being of a unit of the Fund including persons jointly so registered.
Withdrawal Fee - A charge levied upon withdrawal under certain terms and conditions (if applicable).

Note: Unless the context otherwise requires,

 words importing the singular number should include the plural number and vice versa;
 reference to any rules, regulations, guidelines, standards, directives, notices, legislation or statutes in this PHS shall be
reference to those rules, regulations, guidelines, standards, directives, notices, legislations or statutes for the time being in
force, as may be amended, varied, modified, updated, superseded and/or re-enacted, from time to time;
 time, day or date disclosed in this PHS shall be a reference to that time, day or date in Malaysia; and
 reference to “days” in this PHS will be taken to mean calendar days.

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