Worried about uncertainties in global financial markets?

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In a climate of
global uncertainty,
look no further
than Malaysia……

…a defensive
economy driven by
domestic factors

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Oil & gas sector thriving on high global oil prices

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Plantations sector thriving on rising CPO prices

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Construction sector beneficiary of 9MP projects

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 ….and other future emerging investment themes

Capitalise on Malaysian companies riding on

global & domestic investment themes…..
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CIMB Islamic DALI Equity Theme Fund

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Fund Benefits

Identifies future emerging investment themes

Invest in stocks in the most promising sectors

based on sustainable investment themes

Take advantage of investment themes early on to

capitalise on its opportunities

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Fund Benefits
Invest in Malaysian companies benefiting from
global & domestic investment themes

Shariah compliant – Investments in an ethical

way, approved by experienced Shariah advisors

Eligible for EPF Members Investment Scheme

No foreign exchange rate risk – Pure domestic

play

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Investment Objective

The Fund aims to provide investors with medium to

long term capital appreciation through investments
in securities of Malaysian companies that will
benefit from prevailing investment themes and that
conform with Shariah principles.

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Investment Strategy
At least 2% of NAV in
Shariah-compliant
liquid assets

Up to 98% of NAV in Shariah-

compliant Malaysian equity
securities

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Stock & Sector Selection
Identify the potential sector(s) in light of the prevailing
domestic and/or global investment themes

Study impact of the prevailing economic and political

conditions

Select particular sectors based primarily on the

growth prospects and valuation of that sector

Invest in stocks of Malaysian companies in the

chosen sectors based on the stocks’ potential for
appreciation relative to the outlook for that sector

Review sector and stock picks monthly

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Stock Selection Criteria

Companies

Attractive Increasing
Improving
relative investor
fundamentals
valuations expectations

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 Asset Allocation / Stock & Sector Selection
Weekly Global Top Down
Investment Macroeconomic
Meetings Factors Domestic
GDP, Currencies, Economy &
Monthly Asset Inflation, Interest Sectors
Allocation rates Asset Allocation &
Monetary/Fiscal
policies, growth Sector
Monthly Portfolio sectors of economy Over/Underweight
Reviews Equity Exposure,

APT* Optimizer
Sector calls
Daily Morning

PORTFOLIO
Meetings

Inv. Objectives
& Risk Profile

Inv. Policies Stock Database

& Guidelines
Stock Reviews Qualifying Stock
List
Performance
Attribution Company Visits,
PER, EPS growth, *APT = Arbitrage
Fundamentals ROE, Stock liquidity Pricing Theory
Risk & Compliance
Review Bursa Malaysia
stocks Bottom Up
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Changes in stock decisions – Domestic Equities

• Valuation against domestic peer group

• Valuation against regional peer group
Changing
valuations • Valuation against history
(10%) • Valuation against market

Changing • Increasing/decreasing broker/sell side

Investor coverage
sentiment • Earnings revision (rate of change)
(30%) • Quant screening changes
• Thematic
• Improving/deteriorating business
Changing company environment
Fundamentals
• Improving/deteriorating operating
(60%) margins
• Improving/deteriorating balance
sheets/income/ cashflow
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Shariah-compliant process
The FTSE Bursa Malaysia EMAS Shariah Index comprises constituents that are
Shariah-compliant according to the Securities Commission’s Shariah Advisory
Council (SAC) screening methodology.

Source: FTSE

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FBMS is less volatile compared to China and India
Annualised Volatility as at 28 Dec 07
40%

35%

30%

25%

20%

15%

10%

5%

0%
1 Yr 2 Yr 3 Yr 5 Yr
FBMS Index (USD) 23% 18% 16% 15%
MXCN Index (USD) 37% 30% 26% 27%
MXIN Index (USD) 27% 26% 24% 23%
MXASJ Index (USD) 23% 20% 18% 18%
MXEF Index (USD) 23% 21% 19% 18%

Source: Bloomberg

Lower volatility → Portfolio stability

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FBMS shone in 2007 despite subprime debacle, returning 55%

MSCI Asia x
US subprime Japan
crisis FBMS

MSCI EM

S&P500

Source: Bloomberg

High growth with less volatility = An investor’s dream!

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FBMS’ quick recovery after fallout from US subprime crisis

MSCI Asia x
Japan
FBMS

US subprime MSCI EM
crisis

S&P500

FBMS recovered quickly after the subprime explosion, returning 14%

since mid July compared to S&P500’s -5.2%, MSCI Asia x Japan’s 10% and
MSCI Emerging Markets’ 9%
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Source: Bloomberg
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 Malaysia had
one of the least
declines as other
markets took a
major dive
Source: NST, 23 Jan 2008

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Malaysia resilient against global backdrop

9Malaysian economy to sustain a steady pace of economic growth of

5.8% in 2008 and 6.2% in 2009

9Growth catalysts - strong domestic demand and higher investment

spending

9The IDR has attracted RM8.1bn worth of investments comprising

RM5.6bn from foreign investors and RM2.5bn from domestic
developers.

9Malaysia’s economic growth in 2008 will continue to be driven by

internal forces rather than external forces

9Soft decoupling from the US given the resilient domestic demand

and higher investments by both the government and private sector

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Growth corridors - principal growth catalyst

IDR, NCER and ECER to spearhead rapid economic expansion

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Domestic factors to lead Malaysian growth story

Domestic demand will

bolster overall growth

Private consumption
the main driver of
growth, forecast to
increase by 8.5% in
2008

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Private investment growth to accelerate in 2008-09

Private investment is expected to accelerate by 10.0% in 2008 and

11.4% in 2009

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Consumer spending on positive growth trends

Car sales, imports of

consumption goods,
as well as loans for
consumption on the
rise yoy.

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FDI into Malaysia on an uptrend since 2001

Malaysia is ranked the world’s 14th most attractive investment

destination*
*Source: World Investment Prospects Survey for 2007-09

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Economic growth to continue into 2008-09

Real GDP growth to remain resilient despite external

uncertainties

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Government development expenditure to remain high

Increased disbursement of funds as 9th Malaysia Plan

gathers pace in 2008

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Favourable monetary conditions

Liquidity remains
ample

Interest rate stable

amid low inflation

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Sector outlook on key investment themes
Oil & Gas Oil prices have touched USD100/barrel justifying further greater
investments into this sector. With strong demand and unpredictable
supply; the high prices are likely here to stay. Malaysia, with its
new deep waters and just as worthy marginal fields, should see
increasing activities which will be beneficial for the country’s
economic health. Malaysia’s oil & gas players should see more
contracts coming their way as demonstrated by the Government’s
intention to build up the oil & gas sector via initiatives such as the
Eastern Corridor and Petronas’ preference for the use of domestic
players in grooming local oil & gas companies.
Plantation Structural changes in oil & seed demand will keep the plantation
sector attractive to investors. Global agricultural production is not
expanding fast enough to meet global food production needs and
an increased demand for biofuels. In the EU, with the subsidy for
biodiesel, farmers are cultivating more rapeseed to feed biodiesel
requirements. The current crude palm oil (CPO) price levels are not
a cause for concern as CPO is a substitute for soya bean oil and
rapeseed oil, shortage in the latter will provide support to CPO
prices.

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Sector outlook on key investment themes
Retail With the continued robust local economy and the positive
momentum on the local stock market, the consumption boom is
expected to sustain well into 2008. In terms of actual earnings,
retailers reported better than expected numbers for 3Q07 and we
believe they are set to beat expectations again in the coming
quarters. This should cause a further re-rating of the sector in
2008.
Construction The sector is set to gather steam, rising by 6.0% in 2008 (4.8%
in 2007), thanks to the ongoing 9MP infrastructure projects and
continued development of both residential and non-residential
sectors. Given the construction sector’s multiplier effect of 2.2x,
this should stimulate demand for construction-related building
materials and services such as transportation, quarrying, retailing
and hardware.

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Fund Details
Annual Up to
Management
Fee 1.50%
Minimum Investment of
Trustee
Fee
0.08%1 RM1,000
To Start

Application Up to
Fee 6.5%

Application Up to 3%
Fee (EPF)

Withdrawal Up to 1subject to minimum of RM18,000 p.a.

Fee 1.0%2 2chargeable

within 3 months from the
commencement date

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Thank You

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DISCLAIMER
This document is provided to you for information purposes only and it
may not be reproduced, distributed or published by any recipient for
any other purpose. It should not be construed as an offer or a
solicitation of an offer to purchase or subscribe.

The information contained herein has been derived from sources

believed to be reliable and is current as at the date of publication. No
representation or warranty is made nor is there acceptance of any
responsibility or liability made as to the accuracy, completeness or
correctness of the information contained herein. Expressions of
opinion contained herein are subject to change without notice. Persons
wishing to rely upon this information should consult directly with the
source of information or obtain professional advice.

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