Shariah Equity Process

To determine the Shariah status of our securities, our Shariah advisers have given blanket approval for managers to purchase stocks that have been approved by the Shariah Advisory Council of the Securities Commission in the case of Malaysian equities. For ex-Malaysian equities, the Shariah Advisers have given blanket approval for management to screen the Shariah status of a stock via Ideal Ratings system. The Shariah screening adopts a two-tier quantitative screening process which applies the business activity benchmark and the financial ratio benchmark. Securities will only be classified as Shariah-compliant if they are within the parameters of the benchmark, and will then be subjected to a qualitative screening process, where our advisers will look into matters such as general public perception of the respective companies’ image.