Principal Asset Management Berhad

199401018399 (304078-K)
Customer Care Centre
Level 10, Bangunan CIMB, Jalan Semantan, 50490, Kuala Lumpur
T +603 7723 7260 F +603 77183003
service@principal.com.my www.principal.com.my

Date: 13 February 2023

Dear valued unit holder,

NOTIFICATION ON THE ISSUANCE OF REPLACEMENT MASTER PROSPECTUS ISSUE NO.13 FOR ISLAMIC
FUNDS (“REPLACEMENT MASTER PROSPECTUS”) WHICH REPLACES AND SUPERSEDES THE MASTER
PROSPECTUS FOR ISLAMIC FUNDS ISSUE NO.12 DATED 1 JULY 2021

Thank you for investing with us.

We would like to inform you that the Replacement Master Prospectus will be registered with the Securities
Commission Malaysia (“SC”) to include, amongst others, changes in relation to the Guidelines on Unit Trust
Funds and Prospectus Guidelines for Collective Investment Schemes, the issuance of the Twenty Third
Supplemental Master Deed dated 27 June 2022 and Twenty Fourth Supplemental Master Deed dated 20
September 2022 (“Deeds”).

Table below shows the list of funds in the Replacement Master Prospectus:
No. Fund Name Abbreviation
1. Principal DALI Equity Growth Fund DALI
2. Principal DALI Equity Fund DALI2
3. Principal Islamic Malaysia Opportunities Fund iOP-MO
4. Principal DALI Asia Pacific Equity Growth Fund DALI4
5. Principal Islamic Enhanced Opportunities Fund iOP-EO
6. Principal Islamic Small Cap Opportunities Fund iOP-SCO
7. Principal Islamic Asia Pacific Dynamic Equity Fund iDY-APDE
8. Principal Islamic Lifetime Balanced Fund iLI-B
9. Principal Islamic Lifetime Balanced Growth Fund iLI-BG
10. Principal Islamic Lifetime Enhanced Sukuk Fund iLI-ES
11. Principal Islamic Lifetime Sukuk Fund iLI-S

(each a “Fund” and collectively known as “Funds”)

You may refer to Appendix 1 for a summary of the key amendments made to the Funds. Please note that the
summary of the key amendments does not represent all amendments made to the Replacement Master
Prospectus, may be subject to further changes as may be required by the SC and there may be other
changes made in the disclosure of the Replacement Master Prospectus. The effective date of the changes will
be the date of the Replacement Master Prospectus. Kindly refer to the Replacement Master Prospectus that will
be available on our website at www.principal.com.my after issuance of the Replacement Master Prospectus for
further information. Alternatively, you may obtain a copy of the Replacement Prospectus from our headquarters
or any of our branches convenient to you.
Principal Asset Management Berhad
199401018399 (304078-K)
Customer Care Centre
Level 10, Bangunan CIMB, Jalan Semantan, 50490, Kuala Lumpur
T +603 7723 7260 F +603 77183003
service@principal.com.my www.principal.com.my

Should you require clarification or further information with regards to the above, we would be most obliged to
assist you. Please do not hesitate to contact our Customer Care Centre at 03-7723 7260, whatsapp at
6016-299 9792, or e-mail us at service@principal.com.my.

Thank you.

Yours faithfully,
For Principal Asset Management Berhad,

MUNIRAH KHAIRUDDIN
Director/Chief Executive Officer
Principal Asset Management Berhad
199401018399 (304078-K)
Customer Care Centre
Level 10, Bangunan CIMB, Jalan Semantan, 50490, Kuala Lumpur
T +603 7723 7260 F +603 77183003
service@principal.com.my www.principal.com.my

Appendix 1 - Summary of the key amendments made to the Funds

The table below sets out a summary of the key amendments made to the Replacement Master Prospectus,
and/or Deeds, as the case may be, with effect from the date of the Replacement Master Prospectus. For further
information, please refer to the Replacement Master Prospectus.
No. Summary of the key amendments

1. The Funds will be converted to multi-class fund which allows for the establishment of more than one (1)
class. Each class may be different in terms of currency denomination, fees and charges, distribution policy
and hence, will have its respective net asset value per unit, denominated in its respective currency taking
into account the aforementioned features in the Replacement Master Prospectus. Although each of the
fund may have multiple Classes, unit holders should note that the assets of the Funds are pooled for
investment purpose.
2. Establishment of Class D for iDY-APDE and iLI-ES which allows transaction via the e-wallet App.

3. All references to “Investment Committee” have been revised to “person(s) or members of committee
undertaking the oversight function”.
4. Investment Policy and Strategy (applicable to DALI and iLI-BG only)
With effect from the date stated in the Replacement Master Prospectus, the funds may invest up to 25% of
its net asset value in any eligible market globally with some operations or businesses in Malaysia to
capture growth opportunities.
5. Investment Policy and Strategy (applicable to iOP-SCO only)
§ With effect from the date stated in the Replacement Master Prospectus, the fund may invest up to 25%
of its net asset value in emerging companies* that are listed in any eligible markets globally with some
operations or businesses in Malaysia to capture growth opportunities.
§ Revision of the market capitalization for emerging companies as follows:
Current position, With effect from the date stated in the Replacement
Master Prospectus,
*Emerging companies in this context refers to *Emerging companies in this context referring to the
companies that are listed on Bursa Malaysia following:
with market capitalization of up to three (3) (a) companies with market capitalization of up to five
billion MYR at the point of purchase. However, (5) billion MYR at the point of purchase; or
should there be lack of liquidity or when we (b) stocks of companies which form the bottom 15%
deem necessary to reduce volatility of the fund, of the cumulative market capitalisation of the market
the fund may invest up to 20% of its net asset which the Shariah-compliant stock is listed on at the
value in companies with market capitalization point of purchase.
above three (3) billion MYR at the point of However, the fund may invest up to 20% of its net
purchase. asset value in companies with market capitalization
above five (5) billion MYR at the point of purchase.
Principal Asset Management Berhad
199401018399 (304078-K)
Customer Care Centre
Level 10, Bangunan CIMB, Jalan Semantan, 50490, Kuala Lumpur
T +603 7723 7260 F +603 77183003
service@principal.com.my www.principal.com.my

6. Permitted Investments
The Funds is no longer restricted to invest in markets where the regulatory authorities are ordinary or
associate members of the International Organization of Securities Commissions; the Funds will invest in
eligible markets as permitted by the relevant laws
7. Specific risk associated with the investment portfolio of the funds
§ Inclusion of risk associated with investment in shariah-compliant warrants and/or Islamic options
(applicable to DALI, DALI2, iOP-MO, DALI4, iOP-EO, iOP-SCO, iLI-B, iLI-BG, iLI-ES, and iLI-S only).
§ Inclusion of interest rate risk (applicable to DALI4 and iOP-SCO only).
§ Inclusion of risk of investing in emerging markets (applicable to iDY-APDE only).
§ Inclusion of credit and default risk (DALI, DALI2, DALI4, and iOP-SCO only).
8. Other expenses
Change of the valuation fees paid to independent valuers for the benefit of the Funds to fees incurred for
the fund valuation and accounting of the Fund performed by a fund valuation agent.
§ Added remuneration and out of pocket expenses of the person(s) undertaking the oversight functions
of the Fund and/or the members of the Shariah committee or advisers (if any) of the Funds, unless we
decide to bear the same;
9. Processing a withdrawal
Change of the withdrawal proceeds payment period from within ten (10) calendar days from the date we
receive the complete application to seven (7) business days from the date we receive the complete
application.
10. Cooling-off period
§ Change of the cooling- off refund amount from withdrawing your investment at the same net asset
value per unit when the units were purchased to refunding the investment withdrawn at the net asset
value per unit when the units were purchased or prevailing net asset value per unit at the point of
cooling-off (whichever is lower).
§ Change of the payment period of the cooling-off refund amount from within ten (10) calendar days to
seven (7) business days from the date we receive the complete application.
11. Distribution payment (Applicable to IOP-EO and iLI-BG only)
Change of distribution payment from distributing out of realised income and realised gains to distributing
out of realised income, realised gains, unrealised income, unrealised gains, capital or combination of any of
the above. The change to distribution out of capital is to allow the Funds the ability to distribute income
with a defined frequency or to pursue the investment objective of the Fund. However, the effects of
making distribution out of capital has a risk of eroding the capital of the Fund.
After taking into consideration the level of capital and performance of the fund and subject to healthy cash
flow of the fund, any distribution out of capital is for the purpose of efficient portfolio management, to
reduce transaction cost and to ensure stability and sustainability of distribution of the fund.
Note: Distribution out of capital represent a return or withdrawal of part of the amount of your original
investment and/or capital gains attributable to the original investment and will result in a reduction in the
net asset value per unit of the classes and reduce the capital available for future investment and capital
growth. Future capital growth may therefore be constrained and the value of future returns would be
diminished.
Principal Asset Management Berhad
199401018399 (304078-K)
Customer Care Centre
Level 10, Bangunan CIMB, Jalan Semantan, 50490, Kuala Lumpur
T +603 7723 7260 F +603 77183003
service@principal.com.my www.principal.com.my

12. Termination of the Funds or Class(es)

The Funds and/or any of the class may be terminated or wound-up, without the need to seek unit holders’
prior approval, as proposed by us with the consent of the trustee of the Fund (which consent shall not be
unreasonably withheld) upon the occurrence of any of the following events, by giving a notice in writing to
the unit holders in accordance with the Guidelines on Unit Trust Funds and the SC’s requirements (i) if any
law shall be passed which renders it illegal or (ii) if in our reasonable opinion it is impracticable or
inadvisable to continue the Fund and/or the class, and the termination of the Fund and/or class is in the
best interests of the unit holders.
13. Meetings of unit holders
§ Removal of the requirement to publish an advertisement giving notice of the unit holders’ meeting in
a national language newspaper published daily and circulating generally throughout Malaysia, and in
one other newspaper as may be approved by the securities commission, for certain meetings convened
by us or trustee of the Fund.
§ Amendments on the quorum for a unit holders meeting:
where a Fund or class has only one (1) remaining unit holder, such unit holder, whether present in person
or by proxy, at the unit holders meeting shall constitute a quorum.
§ Inclusion of virtual meeting provisions to allow the use of any communication facility or technology or
method available to convene any unit holders’ meeting. Where such meeting is convened, unit holder
may present either remotely or virtually and the participation by a unit holder in such meeting using
the prescribed communication facility or technology or method shall be deemed as being present at
that meeting notwithstanding that the unit holder is not physically present at the main venue of that
meeting.