3-year

Precious Metals Securities Fund Volatility

36.14
Very High
(formerly known as AmPrecious Metals) Lipper Analytics
31 May 2017

July 2017
Precious Metals Securities (the "Fund") aims to achieve capital appreciation by investing in a portfolio of global Shariah observant equity and equity-related securities (including, without limitation,
depository receipts and convertible securities, but excluding preferred shares, bonds, convertible bonds and warrants) of companies engaged in activities related to gold, silver, platinum or other
precious metals.
The Fund is suitable for investors who:
Target Fund's Top 5 Holdings* (as at 30 June 2017)
seek a global investment strategy that conforms to Shariah principles
want Medium to Long Term capital appreciation Randgold Resources Ltd 6.28%
want to invest in gold, silver, platinum and other precious metals equities, and their related OceanaGold Corp 6.21%
equities Agnico Eagle Mines Ltd 6.17%
Investment Strategy Centamin PLC 5.16%
A minimum of 95% of the Fund's NAV will be invested in the Deutsche Noor Precious Metals Fresnillo PLC 4.70%
Securities Fund (Target Fund) * As percentage of NAV. Please note that asset exposure for the fund is subject to frequent change on a daily basis.
Source: DWS Investment GmbH (Target Funds Investment Manager)
Asset Allocation
DWS Noor Precious Metals Securities 99.47%
Target Fund's Sector Allocation* (as at 30 June 2017)
Money Market Deposit 3.92%
Cash and others -3.39% Gold 81.30%
Source: AmFunds Management Berhad Silver 9.66%
Precious Metals & Minerals 7.67%
Fund Details
Cash 1.35%
Fund Category / Type Feeder (Islamic global equity) / Capital growth * As percentage of NAV. Please note that asset exposure for the fund is subject to frequent change on a daily basis.
Source: DWS Investment GmbH (Target Funds Investment Manager)
Fund Launch Date 15 November 2007
Offer Price at Launch MYR 1.0000
Target Fund's Country Allocation* (as at 30 June 2017)
NAV Per Unit (30 Jun 2017) MYR 0.4071
1-year NAV High (30 Jun 2017) MYR 0.5328 (03 Aug 2016) Canada 45.54%
1-year NAV Low (30 Jun 2017) MYR 0.3641 (16 Dec 2016) Others 17.99%
Total Units (30 Jun 2017) 982.23 million Australia 14.42%
Fund Size (30 Jun 2017) MYR 399.82 million United States 9.23%
Annual Management Fee Up to 1.80% p.a. of the NAV of the Fund Mali 6.28%
Annual Trustee Fee Up to 0.08% p.a. of the NAV of the Fund Jersey 5.16%
Entry Charge Up to 5% of the NAV per unit for cash sales Cash and other assets 1.35%
Exit Fee Nil * As percentage of NAV. Please note that asset exposure for the fund is subject to frequent change on a daily basis.
Source: DWS Investment GmbH (Target Funds Investment Manager)
Redemption Payment Period By the 10th day of receipt of a repurchase notice
Investment Manager AmIslamic Funds Management Sdn Bhd
Fund Performance (as at 30 June 2017)
Income Distribution Income distribution (if any) will be reinvested.
Source: AmFunds Management Berhad Cumulative performance over the period (%)
40.00
Target Fund Manager's Commentary
20.00
During the month of June, Palladium was the only precious metal that had a positive return of 3.06%. Silver, Platinum,
and Gold each had negative returns of -4.07%, -2.37%, and -2.16%, respectively. Gold and precious metals equities,
as measured by the S&P BMI Gold and Precious Metals Index (non-Sharia compliant), lost -2.55% during the period. 0.00
Gold ETFs had net inflows of 0.83mm oz, or about 1.4% of total known gold ETFs.

During the month, the DXY fell -1.34%. In addition, the last few days of June saw 2-year and 10-year US Treasury -20.00
yields jump over 10 basis points in a minor sell-off triggered by several central banks indicating the possibility of
fewer stimulus measures. The probability of another rate hike by the end of the year stood at 51.6% at the end of Q2
2017. -40.00
Gold posted its first monthly loss in 2017 during June following the well anticipated rate hike by the Fed during the
middle of the month. Last month, we discussed the link between rates, the dollar and Gold. We pointed out that -60.00
diverging political and economic policy climates can drive currencies separate and apart from changes in relative
yield spreads and that these currency moves can cause distortion when conducting analysis of the Gold price.
-80.00
During the month of June, yield on US Treasuries increased, which should attract investment flows and increase Nov-07 Precious Metals Securities FTSE Gold Mines Index Jun-17
demand for US dollars, driving up the value of the currency vs. peers. The increase in the dollar and yields should, in The value of units may go down as well as up. Past performance is not indicative of future performance.
turn, put downward pressure on the Gold price and result in poor performance. Indeed, the Gold price did sell-off Source: AmFunds Management Berhad
during June, but not according to the traditional relationship cited above. Rather, June saw the dollars worth fall
relative to trading peers in conjunction with the increase in yields. Further, the declining dollar did little to bolster Gold
Performance Data (as at 30 June 2017)
prices. So whats going on here?

An analysis of why the dollar is falling is required to get to the answer. We would propose that the dollar didnt
weaken because economic prospects in the US deteriorated perceptibly or because the case for holding US Dollar 1m 6m 1 yr 3 yrs 5 yrs
denominated debt (and realizing the associated yields) changed materially. Rather, it is our view that the decrease in
the value of the dollar at the end of the month was a direct result of an increase in the perceived value of the Euro
following hawkish comments by ECB president Mario Draghi. This is an important distinction; when the dollars Fund (%) -0.73 -0.97 -15.66 -10.47 -40.06
movements are more absolute in nature (driven by endogenous factors such as an improving US economy, lower
level of perceived risk or increasing investment flows due to relative yields) we expect Golds traditional inverse *Benchmark (%) -3.53 -1.17 -15.75 21.82 -29.07
relationship to hold. However, when the dollars movements become more relative in nature (falling because the
economic and/or rate environment is more positive elsewhere), the relationship can break down as it did during June. *FTSE Gold Mines Index
Source: *AmFunds Management Berhad, Verified by Novagni
Put differently, when things are good in the US but the dollar falls because things are good and getting better
elsewhere, Golds traditional value as a risk hedge can deteriorate (due at least partly to holders in those same
markets that are now deemed to be good and getting better reducing positioning in-line with their new [lower] risk Calendar Year Return
expectations for the future) by enough to overwhelm any boost the price might get from nominal USD depreciation.
The market is still not fully pricing another rate increase this year, which remains a potential downside risk for the
Gold price. 2016 2015 2014 2013 2012
One of the central tenets in the argument against holding Gold for many investors is the opportunity cost of parking
part of the portfolio in an asset that provides 100% of its contribution to portfolio total return in the form of capital Fund (%) 43.89 -18.35 -11.35 -41.21 -15.70
appreciation. This belief is centered on the assertion that the market is rich with safe, yield-paying alternatives to
Gold that should be able to provide portfolio total return from multiple sources. However, since the introduction of *Benchmark (%) 66.36 -3.40 -9.52 -49.67 -18.46
Zero Interest Rate Policy (ZIRP) and eventually, Negative Interest Rate Policy (NIRP), there has been a drastic shift
in the risk return profile of available alternatives to Gold. The suppression of rates across the globe has removed (or *FTSE Gold Mines Index
greatly reduced) the availability of low risk/acceptable yield securities. In essence, what this has done is reduce Source: *AmFunds Management Berhad, Verified by Novagni
the relative cost of holding Gold as part of the investment mix in an investors portfolio.
Income Distribution History
The current rate environment has been extremely constructive for Gold. Even if the Fed follows through with their
intended rate hikes this year, nominal interest rates in the United States will still be at historic lows and real rates will
be at the lowest levels since the 1980s. Both of these factors should continue to provide an attractive environment
in which to own Gold. In the short run, heightened market uncertainty should keep the Gold price bid as investors Payout(sen) Total(sen)
demand for safe-haven assets meets a relatively fixed supply. We believe Gold represents the cleanest and most
effective way to gain safe-haven exposure and that we should continue to see support for the yellow metal as long as FY 2011 - 7.00 7.00
uncertainty remains. * based on the NAV of the preceding financial year end
Source: AmFunds Management Berhad
We continue to keep the fund invested in companies with strong management teams that have shown the ability to
execute with operational stability and have a lower than average financial and operational risk profile. We believe
this approach will generate alpha through the entire price cycle. However, deploying this approach does leave the
fund underexposed to firms with extreme levels of operational and financial leverage. As such, the fund may
underperform in the short term, during periods with elevated upward Gold price volatility.

We believe our approach will more than make up for the lack of gearing to the Gold price in environments with
elevated volatility through company specific re-ratings. As portfolio firms demonstrate the increase in overall
production level and financial flexibility that accompany exiting the heavy spending portion of the capex cycle, we
believe investors will respond by increasing valuations relative to peers, driving alpha.

Source: DWS Investment GmbH (Target Funds Investment Manager)

 Disclaimer

Based on the Funds portfolio returns as at 31 May 2017, the Volatility Factor (VF) for this Fund is 36.14 and is classified as "Very High" (Source: Lipper). Very
High includes funds with VF that are more than 10.605 (source: Lipper). The VF means there is a possibility for the Fund in generating an upside return or
downside return around this VF. The Volatility Class (VC) is assigned by Lipper based on quintile ranks of VF for qualified funds. VF is subject to monthly
revision and VC will be revised every six months. The Funds portfolio may have changed since this date and there is no guarantee that the Fund will continue to
have the same VF or VC in the future. Presently, only funds launched in the market for at least 36 months will display the VF and its VC.

The information contained in this material is general information only and does not take into account your individual objectives, financial situations or needs. You
should seek your own financial advice from an appropriately licensed adviser before investing.You should be aware that investments in a unit trust fund carry
risks. An outline of some of the risks is contained in the Master Prospectus dated 10 September 2016 & 1st Supplemental Master Prospectus dated 31
December 2016 (collectively referred as the Prospectus). The specific risks associated with investment of the Fund are industry-specific risk, currency risk,
risk of a passive strategy, risk of not meeting the Fund's investment objective, Shariah non-compliance risk and liquidity risk as contained in the Prospectus.
Please also refer to the specific risks of the Target Fund before investing. Unit prices and income distribution, if any, may rise or fall. Past performance of a fund
is not indicative of future performance. Please consider the fees and charges involved before investing. Units will be issued upon receipt of completed
application form accompanying the Prospectus and subject to terms and conditions therein.

Where a distribution is declared, you are advised that following the distribution, the Net Asset Value (NAV") per unit will be reduced from cum-distribution NAV
to ex-distribution NAV. Where a unit split is declared, you are advised that following the issue of additional units, the NAV per unit will be reduced from pre-unit
split NAV to post-unit split NAV. Kindly take note that the value of your investment in Malaysian ringgit will remain unchanged after the distribution of the
additional units.

You have the right to request for a copy of Product Highlights Sheet for the Fund. You are advised to read and understand the contents of the Product Highlights
Sheet and the Prospectus before making an investment decision. The Prospectus has been registered with the Securities Commission Malaysia, who takes no
responsibility for its contents. You can obtain a copy of the Product Highlights Sheet and the Prospectus from any of our representative office and authorized
distributor. AmFunds Management Berhad does not guarantee any returns on the investments. In the event of any dispute or ambiguity arising out of the other
language translation in this leaflet, the English version shall prevail.

Note: All fees, charges and expenses disclosed in this material are expressed on a Goods and Services Tax (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(s) and/or
the Fund (as the case may be) in addition to the fees, charges and expenses disclosed in this material.

Privacy Notice: AmFunds Management Berhad (Company Registration: 154432-A) issued its Privacy Notice as required by Personal Data Protection Act 2010,
which details the use and processing of your personal information by AmFunds Management Berhad. The Privacy Notice can be accessed via
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to contact our Client Service Officers at Tel: +603 2032 2888 OR e-mail: enquiries@aminvest.com.

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