KAF AUSTRALIA ISLAMIC PROPERTY FUND

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1 Date: 1 August 2016 KAF AUSTRALIA ISLAMIC PROPERTY FUND RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors of KAF Investment Funds Berhad and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable enquiries, they confirm to the best of their knowledge and belief, there are no false or misleading statements, or omission of other facts which would make any statement in the Product Highlights Sheet false or misleading. STATEMENT OF DISCLAIMER A copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the KAF Australia Islamic Property 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 KAF Investment Funds Berhad responsible for the KAF Australia Islamic Property 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.

2 This Product Highlights Sheet only highlights the key features and risks of KAF Australia Islamic Property Fund. Investors are advised to request, read and understand the Information Memorandum before deciding to invest. PRODUCT HIGHLIGHTS SHEET KAF AUSTRALIA ISLAMIC PROPERTY FUND Name of Fund Fund Category Fund Type KAF Australia Islamic Property Fund Wholesale feeder (Shariah-compliant). Income and growth fund. Launch Date 1 August Initial Offer Period 21 days i.e. 1 August 2016 to 21 August Initial Offer Price Base currency Capital Protected / Guaranteed RM. No. : AUD per unit : RM per unit. WHO IS THE PRODUCT SUITABLE FOR? This Fund is suitable for Sophisticated Investors who: (a) (b) (c) seek regular income payments; PRODUCT SUITABILITY want a high degree of property and infrastructure exposure; and have at least a 5-years investment outlook. Sophisticated Investors refer to: an individual whose total net personal assets, or total net joint assets with his or her spouse, exceed RM3 million or its equivalent in foreign currencies, excluding the value of the individual s primary residence; an individual who has a gross annual income exceeding RM300,000 or its equivalent in foreign currencies per annum in the preceding twelve months; an individual who, jointly with his or her spouse, has a gross annual income exceeding RM400,000 or its equivalent in foreign currencies in the preceding twelve months; a corporation with total net assets exceeding RM10 million or its equivalent in foreign currencies based on the last audited accounts; a partnership with total net assets exceeding RM10 million or its equivalent in foreign currencies; a unit trust scheme or prescribed investment scheme; a private retirement scheme; a closed-end fund approved by the Securities Commission Malaysia; a company that is registered as a trust company under the Trust Companies Act 1949 which has assets under management exceeding RM10 million or its equivalent in foreign currencies; a corporation that is a public company under the Companies Act 1965 which is approved by the Securities Commission Malaysia to be a trustee under the Capital Markets and Services Act 2007 and has assets under management exceeding RM10 million or its equivalent in foreign currencies; a statutory body established by an Act of Parliament or an enactment of any state in Malaysia; a pension fund approved by the Director General of Inland Revenue under section 150 of the Income Tax Act 1967; a holder of a capital markets services licence or an executive director or a chief executive officer of a holder of a capital markets services licence; a licensed institution as defined in the Financial Services Act 2013; an Islamic bank as defined in the Islamic Financial Services Act 2013; an insurance company licensed under the Financial Services Act 2013; a takaful operator registered under the Islamic Financial Services Act 2013; a bank licensee or insurance licensee as defined under the Labuan Financial Services and Securities Act 2010; KAF Australia Islamic Property Fund 1

3 an Islamic bank licensee or takaful licensee as defined under the Labuan Islamic Financial Services and Securities Act 2010; and any other investor as may be defined by the Securities Commission Malaysia from time to time. WHAT ARE YOU INVESTING IN? KEY PRODUCT FEATURES The Fund aims to provide income^ and capital growth by investing in one target fund. Note: ^Please refer to the Fund s distribution policy. The target fund that the Fund invests into must be Shariah-compliant. Investment Strategy The Fund will invest principally in one target fund, i.e. Crescent Diversified Property Fund ( Crescent DPF ). Crescent DPF is a property trust which is registered as a managed investment scheme in Australia. Crescent DPF was launched on 20 February 2013 and is denominated in AUD. Crescent DPF is registered with the Australian Securities and Investments Commission under the Corporations Act The manager of Crescent DPF is Crescent Funds Management (Aust) Ltd. ( Crescent Funds ). Crescent Funds has appointed Freehold Investment Management as the investment manager for Crescent DPF. The investment objective of Crescent DPF is to provide total returns (income and capital growth) after costs and before tax, above the Crescent DPF s performance benchmark. Crescent DPF will invest in a diversified portfolio of listed^ and unlisted property securities^ as well as listed infrastructure securities^ that provide it exposure to a diversified property portfolio of industrial, office, retail and infrastructure assets in Australia. By investing in unlisted property securities, Crescent DPF gains exposure to direct property assets^. Although the Fund is passively managed, the investments of the Fund will be rebalanced from time to time to meet sales and redemptions transactions. This is to enable the proper and efficient management of the Fund. As the Fund is a feeder fund that invests at least 95% of its NAV in Crescent DPF, the risk management strategies and techniques employed will be at the Crescent DPF level. This also implied that the Manager will not undertake any temporary defensive position for the Fund. It also follows that if the Crescent DPF fails to adopt a successful defensive position in response to adverse market and economic conditions, there is a risk that the Fund will mirror the Crescent DPF s negative performance, if any. Also, investors should note that at all times the Fund is always subject to currency risk. Notwithstanding anything contained herein, the Manager may, in consultation with the Trustee and with the approval of the Unit Holders, replace the Crescent DPF with another fund of a similar objective if, in the Manager s opinion, the Crescent DPF no longer meets the Fund s investment objective, or when acting in the interest of the Unit Holders. ^Explanatory notes: listed property securities means real estate investment trusts ( REITs ) that are listed in the Australian stock exchange whereas unlisted property securities is referring to unlisted REITs. listed infrastructure securities means securities of companies that are listed in the Australian stock exchange which principally operate to hold and manage infrastructure assets such as roads, airports, sea ports, power generation, hospitals, schools; amongst others. property asset is referring to physical property asset. Unit Holders are advised to read and understand Crescent DPF s investment objective, strategy and approach as disclosed in the Information Memorandum. The Fund s portfolio will be structured as follows: At least 95% of NAV - Investments in units of Crescent DPF. 2% to 5% of NAV Asset Allocation - Investments in Islamic liquid assets including Islamic money market instruments and Islamic deposits with financial institutions. Reserve Bank of Australia Cash Rate plus 3%. Benchmark Distribution Policy The Fund will distribute income on a half-yearly basis, subject to the availability of income and/or realised gains. KAF Australia Islamic Property Fund 2

4 Parties Involved WHO ARE YOU INVESTING WITH? Manager Trustee Trustee s delegate Shariah adviser Tax adviser Auditors Solicitors KAF Investment Funds Berhad. CIMB Islamic Trustee Berhad. CIMB Islamic Bank Berhad. IBFIM. PricewaterhouseCoopers Taxation Services Sdn Bhd. PricewaterhouseCoopers. Wei Chien & Partners. WHAT ARE THE KEY RISKS OF THIS INVESTMENT? Specific risks of the Fund Fund management risk KEY RISKS As this Fund invests at least 95% of its NAV in the target fund, Crescent DPF, it is subject to the management risk of the management company and investment manager of Crescent DPF. Poor management of Crescent DPF due to lack of experience, knowledge, expertise and poor management techniques would have an adverse impact on the performance of Crescent DPF. This may jeopardise the investment of this Fund in Crescent DPF and in turn, the Unit Holders investment through the risk of reduced returns and in some cases loss of capital invested in this Fund. Currency risk The Fund s investment in Crescent DPF will be subject to currency risk as Crescent DPF is denominated in AUD, while the Base Currency is RM. When the AUD fluctuate with unfavourable movements against the Base Currency, it may cause the value of the Fund s investments in the Crescent DPF to diminish which may in turn affect the value of Unit Holders investments as expressed in RM. Unit Holders of is exposed to currency risk as the Fund invest in Crescent DPF that is denominated in AUD. Fluctuation between RM and AUD may affect the NAV of that Class and may affect the value of Unit Holders investments. Country risk As the Fund invests in Crescent DPF which is domiciled in Australia, it may be adversely affected by the risk specific to such country. Such risks include changes in the country s economic fundamentals, social and political instability as well as exchange control, changes in taxation, foreign investment policies and other restrictions and controls which may be imposed by the relevant authorities in Australia. Investment in Crescent DPF as associated with the following risks: Property investment Listed property, listed infrastructure and unlisted property securities Concentration risk Liquidity risk Withdrawal risk Risks specific to Islamic investing Derivatives risk Regulatory and taxation risk. These risks are elaborated in the Information Memorandum. KAF Australia Islamic Property Fund 3

5 FEES & CHARGES WHAT ARE THE FEES AND CHARGES OF THIS INVESTMENT? Charges directly incurred by Unit Holders Sales charge by distribution channels: Authorised IUTAs Sales representatives Repurchase charge Transfer fee Switching fee Other charges Up to 5.00% of NAV per unit. The sales charge is negotiable. The Manager may at its discretion impose a lower sales charge based on the size on investment and/or other criteria to be determined by the Manager Nil. Nil. Expenses indirectly incurred by Unit Holders. Annual management fee Annual trustee fee Other expenses directly related to the Fund Other expenses indirectly paid by an investor when investing in the Fund Not applicable. Switching facility is not available for this Fund. Charges, for instance bank charges, telegraphic transfer and courier charges, shall be borne by the Unit Holder in order to execute transactions on behalf of the Unit Holder. 1.80% per annum of NAV of the respective Class before deducting the Manager s and Trustee s fees for that particular day. A portion of the management fee received is paid to Crescent DPF s manager, Crescent Funds Management (Aust) Ltd ( Crescent Fund ). As this Fund invests in units of Crescent DPF, any management fee charged to the Crescent DPF by the Crescent Fund in relation to the Fund s investments in the Crescent DPF will be fully refunded to this Fund. Accordingly, there is NO DOUBLE CHARGING OF MANAGEMENT FEE. This means that Unit Holders will incur ONLY ONE MANAGEMENT FEE and ONLY AT THE FUND S LEVEL. 0.05% per annum of NAV, subject to a minimum trustee fee of RM12,000 per annum (excluding foreign custodian fees and charges). These expenses include auditors fees and other relevant professional fees, custodial charges, cost of distribution of quarterly/annual reports, tax certificates, reinvestment statements and other notices to Unit Holders, other transaction costs and taxes. As the Fund invests in units of Crescent DPF, the Fund is subject to the indirect expenses associated with the ownership and operation of Crescent DPF s asset. The indirect expenses which may be paid out from Crescent DPF are fees relating to activities involved in acquiring, disposing and operating Crescent DPF s direct properties investment and fees payable to third party professional service providers for acquisitions and disposal of Crescent DPF s assets. Note: All fees, charges and expenses disclosed above are expressed on a GST-exclusive basis. Accordingly, to the extent that services provided are subject to GST, the amount of GST payable on any related fees, charges and / or expenses will be payable by the Unit Holder and / or the Fund (as the case may be) in addition to the fees, charges and expenses as disclosed above. HOW OFTEN ARE VALUATIONS AVAILABLE? VALUATIONS AND EXITING FROM INVESTMENT The Fund will be valued at least once every Business Day except during the Fund s initial offer period. The valuation of the Fund will be conducted on the next day when the Manager is open for business as the valuation of the target fund, Crescent DPF would have been obtained by the Crescent DPF s manager. From time to time, Unit Holders will be able to obtain the unit price of the Fund at our website, or by contacting the Manager directly. HOW CAN YOU EXIT FROM THIS INVESTMENT AND WHAT ARE THE RISKS AND COSTS IN DOING SO? During the 21-day of the Fund s initial offer period, the repurchase price for the respective Classes is as follows: : AUD per unit : RM per unit. KAF Australia Islamic Property Fund 4

6 After the initial offer period of the respective Class, the repurchase price are calculated based on the forward pricing policy, whereby the repurchase price shall be the NAV per unit of the respective Class at the next valuation point following the receipt by the Manager a request to repurchase units of the respective Class. Unit Holders may redeem their investments in the Fund at any point in time by completing the prescribed repurchase request form and returning it to the Manager before the cut-off time of 4:00 a.m. on any Business Day. Any requests received after 4:00 p.m. on a Business Day, will be considered to be received on the next Business Day. The minimum repurchase units for the respective Classes is as follows: Class Minimum repurchase units 1,000 units or such other lower quantity as the Manager may from time to time decide. There is no restriction on the repurchase frequency or the number of times a Unit Holder can make a repurchase request. For partial redemption, the balance of units held after the redemption should be not less than the minimum investment balance for the respective Classes as follow: Class Minimum investment balance 1,000 units or such other lower quantity as the Manager may from time to time decide. Redemption proceeds will be paid within ten (10) days from the date on which the repurchase request is received by the Manager. However, in the case where the Crescent DPF s manager suspend redemptions of Crescent DPF, the time taken to pay the redemption proceeds to investors may be extended or delayed. If this occur, the Manager will pay the redemption proceeds within ten (10) days after receipt by the Manager of the redemption proceeds from the Crescent Fund s manager. HOW CAN YOU CONTACT US? CONTACT INFORMATION To contact the Manager or to find out about the distribution channels of the Fund, you may call our customer service number: at any time during our office hours: Mondays through Fridays from 9.00 a.m p.m. or your enquiries to investmentfund@kaf.com.my or visit our website, HOW DO YOU LODGE A COMPLAINT? 1. For internal dispute resolution, you may contact: (a) via phone to : (b) via fax to : (c) via to : investmentfund@kaf.com.my (d) via letter to : KAF Investment Funds Berhad Level 11, Chulan Tower No.3 Jalan Conlay Kuala Lumpur 2. If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the Securities Industry Dispute Resolution Corporation (SIDREC): (a) via phone to : (b) via fax to : (c) via to : info@sidrec.com.my (d) via letter to : Securities Industry Dispute Resolution Center (SIDREC) Unit A-9-A, Level 9, Tower A Menara UOA Bangsar No. 5, Jalan Bangsar Utama Kuala Lumpur 3. You can also direct your complaint to the Securities Commission Malaysia (SC) even if you have initiated a dispute resolution process with SIDREC. To make a complaint, please contact the SC s Investor Affairs & Complaints Department: (a) via phone to : (b) via fax to : KAF Australia Islamic Property Fund 5

7 (c) via to : aduan@seccom.com.my (d) via online complaint form available at (e) via letter to : Investor Affairs & Complaints Department AUD Bursa Malaysia Business Day Class(es) Crescent DPF Fund Securities Commission Malaysia No 3 Persiaran Bukit Kiara Bukit Kiara Kuala Lumpur GLOSSARY Australian Dollar, the lawful currency of Australia. The stock exchange managed and operated by Bursa Malaysia Securities Berhad. A day (other than Saturdays, Sundays and public holidays) on which Bursa Malaysia is open for trading or banks in Kuala Lumpur are open for business, and a day which is a business day in Sydney (i.e. a day other than Saturdays, Sundays, public holidays and any other day determined to be a non-business day) by the manager of Crescent DPF. Any number of class(es) of unit(s) representing similar interests in the assets of the Fund and such class(es) of unit(s) that may be issued by the Fund from time to time and Class means any one class of units. Crescent Diversified Property Fund. KAF Australia Islamic Property Fund. GST The tax levied on goods and services pursuant to the Goods and Services Tax Act Information Memorandum IUTA Net Asset Value (NAV) RM or Ringgit Malaysia Unit Unit Holders Information memorandum dated 1 August 2016 and its supplementary (ies) (if any). Institutional unit trust adviser registered with the Federation of Investment Managers Malaysia. The net asset value of the Fund or a Class is determined by deducting the value of all the Fund s liabilities (or the liabilities relating to the Class) from the value of all the Fund s assets (or assets relating to that Class), at the valuation point. The lawful currency of Malaysia. A unit of the Fund or the relevant Class and includes fractions of a unit of the Fund or the relevant Class. The person(s) for the time being registered under the provisions of the deed as the holder of Units and person(s) jointly registered. KAF Australia Islamic Property Fund 6