09 June 2008

CIMB-Principal MENA Equity Fund

Investment Services Department +60 (3) 7718 5043

Fund Strategy

Up to 98% of the NAV will be invested in equities or securities of companies principally established
and listed in the MENA region. The targeted fund invests in company such as Emaar Properties
(Dubai), First Gulf Bank (UAE), Qatar Navigation and many more profitable companies.

Launched in February 2008, CIMB-PRINCIPAL MENA EQUITY FUND is an equity fund established
in Malaysia. The Objective of this fund is total return. The fund invests as a feeder fund in the Ocean
Fund – equities MENA opportunities which invest in equities of companies domiciled or having
significant operations, and listed in the middle eastern & North African Countries.

Fund Performance

Source: Bloomberg

Referring to the chart above, MENA fund has been moving upward since inception. The mother fund,
Ocean fund equities MENA opportunities is performing well and so does the MENA fund as they will
be managed with similar investment philosophy and style.

This commentary has been based on information obtained from sources believed to be reliable, no representation or warranty is made by
CIMB Wealth Advisors Berhad and its investment managers, CIMB-Principal Asset Management Berhad nor the acceptance of any
responsibility or liability is made as to its accuracy, completeness or correctness of the information contained herein. Expressions of opinion
contained herein are those entirely of CIMB Wealth Advisors and the information is subject to change without notice. This commentary is
provided for information purposes only and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell
securities. It may not be reproduced, distributed or published by any recipient for any other purpose.
 09 June 2008
CIMB-Principal MENA Equity Fund

Investment Services Department +60 (3) 7718 5043

Sub’s manager comment on mother fund - Ocean Fund Equities MENA Opportunities

The MENA markets performed well during the month of April as positive first quarter results set the
tone for the coming year. The Gulf Cooperation Council (GCC) markets were particularly strong, with
Qatar the clear leader, rising 18.1%, as banking and property gained. The Saudi and Omani markets
also performed well, rising 12% and 11.1% respectively. Non-GCC markets were less bullish with
Egypt and Jordan rising by a 5.5% and 2.4% respectively, while Morocco was the region’s worst
performing market and the only market to post a negative return, declining by 2.95%.

In April the Fund rose around 8%. Notable holdings included Qatar Real Estate and Qatar Electricity
and Water, which both posted gains of close to 20%. The Fund also benefited from its Omani
holdings, with Oman Cement and Galfar Engineering performing strongly. On the downside, the Fund
was held back by its holdings in Kuwaiti banking stocks which, in line with the Kuwaiti market,
underperformed.

We remain positive on the outlook for the MENA asset class. The GCC investment programme still
continues at a rapid pace. Inflationary pressure remains the greatest risk to the region, although we
do not see this as a major reason for concern at this stage as it is a natural by product of the region’s
vast investment program. More importantly from the Fund’s point of view, the region’s companies
have been successful in passing on inflationary costs. We still feel the valuations in MENA markets
are attractive, particularly given the positive outlook for the GCC economies in the coming few years.

Market Outlook

Economic growth driven by oil revenues

World oil demand is increasing year on year. The demand grew 1.1% p.a. during year 1988 to 2003
and is expected to grow 1.4%p.a for the next 20 years. Demand has outpaced supply and driven high
oil prices. In China, oil consumption is increasing at a faster rate of 7.5% a year compared to US’s
1.1% a year due to an increasing private automobile ownership from rising incomes. The increasing
of oil consumption is a key to MENA’s growth as Middle East represents 60% of global oil reserves
and produces 1/3 of global oil supply. MENA countries have achieved a fiscal surplus position from
1.5% in early 2000s to 14.5% in 2006; its strong performances have created a trade surplus of 24.5%
of regional GDP in 2006.

Foreign Direct Investment Increasing

MENA region has FDI flows of US$24.4 in 2006 which was up almost 40% in the year and triples the
level of 2004. The sharp increase was due to a major privatization deals and increased investments
in the energy, infrastructure, real estate and tourism sector. In Egypt and Morocco, FDIs in 2006 was
more than 10 times the level of 5 years earlier.

This commentary has been based on information obtained from sources believed to be reliable, no representation or warranty is made by
CIMB Wealth Advisors Berhad and its investment managers, CIMB-Principal Asset Management Berhad nor the acceptance of any
responsibility or liability is made as to its accuracy, completeness or correctness of the information contained herein. Expressions of opinion
contained herein are those entirely of CIMB Wealth Advisors and the information is subject to change without notice. This commentary is
provided for information purposes only and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell
securities. It may not be reproduced, distributed or published by any recipient for any other purpose.
 09 June 2008
CIMB-Principal MENA Equity Fund

Investment Services Department +60 (3) 7718 5043

Massive government expenditure on infrastructure

GCC countries are planning on spending US$1.5 Trillion on infrastructure in the next 5 years and this
is expected to boost for economic growth in the MENA region. Government focuses on building
strong industrial base in order for an improvement in petrochemical and downstream activities,
transport and logistic business.

Population growth – strong future domestic demand

GCC region has population of 100 million, which its population growth rate is increasing year on year
and higher than developed and emerging market. Half of the region population is below the age of 20
implies a large emerging consumer market and large labour force. The higher population growth has
a strong domestic demand which drives a long term stable growth.

Undervalued markets – attractive valuations

MENA markets are undervalued markets with attractive valuation. This undervalued region has
attractive stock markets, with reasonable valuations and strong IPO activities, which will lead to a
potential strong future growth.

High market capitalization and turnover

GCC economies form 16.5% of global emerging market capitalization with high liquidity. For instance,
Saudi Arabia has the higher market capitalization of US$420.39b and trading value of US$2092m
over three 3 months, followed by Kuwait which has market capitalization of US$189.15 and trading
value of US$532m.

Low correlation to World Markets

MENA markets have low correlations to world market. The correlations to global equities are much
lower compared to world Asia, Latin America or Emerging Markets. This delivers portfolio
diversification with powerful potential growth. During time of jitters, MENA has been more resilient
compared to other emerging markets implying a more defensive strategy in an EM portfolio by MENA
in times of high volatility.

Under researched region/market

Interest in MENA markets is increasing as the research coverage is gradually increasing. There is an
opportunity to enter the market in the early stages, provided the PEs for the region are relatively low
currenltly, in order to discover undervalued stocks and exploit inefficiencies.

This commentary has been based on information obtained from sources believed to be reliable, no representation or warranty is made by
CIMB Wealth Advisors Berhad and its investment managers, CIMB-Principal Asset Management Berhad nor the acceptance of any
responsibility or liability is made as to its accuracy, completeness or correctness of the information contained herein. Expressions of opinion
contained herein are those entirely of CIMB Wealth Advisors and the information is subject to change without notice. This commentary is
provided for information purposes only and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell
securities. It may not be reproduced, distributed or published by any recipient for any other purpose.
 09 June 2008
CIMB-Principal MENA Equity Fund

Investment Services Department +60 (3) 7718 5043

Portfolio breakdown in term of sector:

Percentage of each sector in portfolio

Pharmaceuticals &
Biotechnology Others
4% 7%
Materials Real Estate
5% 24%

Utilities
5%

Capital Goods
7%

Consumer Services
8%

Diversified Financials
Transportation 21%
9%
Banks
10%
Source: CIMB-Principal Asset Management

This commentary has been based on information obtained from sources believed to be reliable, no representation or warranty is made by
CIMB Wealth Advisors Berhad and its investment managers, CIMB-Principal Asset Management Berhad nor the acceptance of any
responsibility or liability is made as to its accuracy, completeness or correctness of the information contained herein. Expressions of opinion
contained herein are those entirely of CIMB Wealth Advisors and the information is subject to change without notice. This commentary is
provided for information purposes only and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell
securities. It may not be reproduced, distributed or published by any recipient for any other purpose.
 09 June 2008
CIMB-Principal MENA Equity Fund

Investment Services Department +60 (3) 7718 5043

Top 10 Holdings of the fund:

Top 10 Holdings Country Details

Emaar Properties UAE One of the world’s largest real estate companies by mkt cap. Emaar provides
(Dubai) property investment and development, property management services,
education, healthcare, hospitality and investments in providers of financial
services. Profit growth: 35%(2006).
First Gulf Bank UAE One of the leading banks in the UAE. Shareholder equity of AED 9bn makes
(Abu it one of the largest equity based banks in the UAE. Profit growth in 2006:
Dhabi) 44%.
Saudi Arabia Saudi Open ended fund investing principally in equities in the Saudi stock market.
Investment Fund Arabia
Dubai Financial UAE Operates as a secondary market for the trading of securities.
Market (Dubai)
Qatar Navigation Qatar Engaged in the marine transport and allied business. Their transport and
shipping companies deals with shipping agencies, marine transport, logistics
management and navigation freight services. Profit growth: 53.1%(2007)
Top 10 Holdings Country Details

Global Investment Kuwait Largest investment house in the Persian Gulf region. Largest private equity
House team in the region: US$1.1bn. Assets under management: US$8.4bn. Profit
growth: 16%(2006).
Egyptian For Egypt Egypt-based company engaged in the construction of tourist and resort
Tourism projects in the Red Sea province. Profit growth: 72.34%(2006)

Qatar REIT Qatar The Qatar Real Estate Investment Company develops industrial, residential
and retail projects.

Egyptian Egypt A manufacturer and exporter of pharmaceuticals which produces over 200
International products in 24 therapeutic groups, including anesthetics and analgesics.
Pharmaceuticals Exports to around 42 countries including Africa, Asia and Europe. Profit
growth: 26.37%(2006)
Agility Kuwait Engaged in the provision of end-to-end supply chain solutions. It provides
warehousing facilities, transportation and freight management services
associates. Globally, it supplies project logistics solutions and global freight
management. Profit growth: 18.5%(2006)
Source: CIMB-Principal Asset Management

This commentary has been based on information obtained from sources believed to be reliable, no representation or warranty is made by
CIMB Wealth Advisors Berhad and its investment managers, CIMB-Principal Asset Management Berhad nor the acceptance of any
responsibility or liability is made as to its accuracy, completeness or correctness of the information contained herein. Expressions of opinion
contained herein are those entirely of CIMB Wealth Advisors and the information is subject to change without notice. This commentary is
provided for information purposes only and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell
securities. It may not be reproduced, distributed or published by any recipient for any other purpose.