Monthly Fund Fact Sheet - June 2018

Monthly Fund Fact Sheet - June 2018

Monthly Fund Fact Sheet - June 2018

HLA Venture Growth Fund (HLAVGF) Monthly Fund Fact Sheet — June 2018

Monthly Fund Fact Sheet - June 2018

Contents Daily Valuation Funds HLA Venture Growth Fund . . 1 HLA Venture Blue Chip Fund . . 3 HLA Venture Dana Putra . . 5 HLA Venture Flexi Fund . . 7 HLA Value Fund . . 9 Hong Leong SMART Invest Fund . . 12 Hong Leong SMART Growth Fund . . 15 HLA Venture Global Fund . . 18 HLA Venture Managed Fund . . 21 HLA Venture Income Fund . . 24 Weekly Valuation Funds HLA EverGreen Funds . . 26 HLA Dana Suria . . 32 HLA Secure Fund . . 35 HLA Cash Fund . . 38 Fund Risk Type & Customer Risk Appetite .

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Monthly Fund Fact Sheet - June 2018

HLA Venture Growth Fund (HLAVGF) Hong Leong Assurance Berhad (94613-X) Level 3, Tower B, PJ City Development, No. 15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor. Telephone 03-7650 1818 Fascimile 03-7650 1991 Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 1 HLA Venture Growth Fund June 2018 Fund Features 1. Investment Objective The objective of the fund is to achieve higher returns than the general stock market by investing into growth stocks which potentially generate more superior returns. 2. Investment Strategy & Approach This fund focuses on growth stocks listed in Bursa Malaysia and/or in any foreign stock exchanges that provide potentially higher capital gains.

3. Asset Allocation The fund may invest up to 95% of its NAV in equities. 4. Target Market This fund is suitable for investors with moderate to high-risk appetite with a medium to long-term investment horizon. Fund Details Unit Price (29/6/2018) :RM2.1206 Fund Size (29/6/2018) :RM377.0mil Fund Management Fee (effective as at 01/11/2016) : 1.45% p.a. (capped at 1.50%) Fund Manager :Hong Leong Assurance Berhad Fund Category :Equity Fund Inception :19 Jan 2000 Benchmark :FTSE Bursa Malaysia KLCI Index (FBM KLCI) Frequency of Unit Valuation :Daily The Company reserves the right to change the cap of Fund Management Fee (% p.a.) by giving the Policy Owner ninety (90) days prior written notice.

The Fund Management Fee will be reviewed monthly and will be revised if the previous month end actual asset allocation deviates by more than ten percent (10%) of the initial asset allocation.

Top 10 Holdings for HLAVGF as at 29 Jun 2018 % 1. MAYBANK 8.4 2. CIMB 8.3 3. TENAGA 7.4 4. DIALOG 5.9 5. TENCENT 4.8 6. YINSON 4.6 7. INARI 3.4 8. AXIATA 3.2 9. SIMEPLT 2.8 10 GENTING 2.6 Total Top 10 51.4 Historical Performance YTD 1 month 1 year 3 years 5 years 10 years Since Inception HLAVGF -12.58% -1.81% -6.04% 3.42% 2.49% 53.17% 112.06% Benchmark* -5.86% -2.82% -4.09% -0.89% -4.63% 42.55% 81.22% Relative -6.72% 1.01% -1.95% 4.31% 7.12% 10.61% 30.84% *Source: Bloomberg Market Review, Outlook & Strategy June was a volatile month for global equity markets which took the cue from the many macro and geo-political events.

The decision by US President Donald Trump on the US$50b in tariffs on Chinese imports and China’s subsequent retaliation spooked investors once again. As such, emerging markets were the worst affected on the back of escalating trade war tensions as money flowed back to developed markets in particular the US, on the back of a strong US dollar. A more apparent synchronized tightening of liquidity in global markets also did not help markets. The European Central Bank signaled a close to its quantitative easing program while the Fed raised rates, followed by the guidance of 2 more hikes for the rest of the year.

Domestically, foreign selling continued with total cumulative net selling of RM7b on a year to date basis. Investors were mainly concerned over short term policy uncertainty, opting to sell ahead of any potential negative news. The government was also seen undertaking GLC reform initiatives following the resignation of heads in Telekom Malaysia, MRCB, Malaysian Airports and the chairman of PNB. The Government also announced Datuk Nor Shamsiah as the new Bank Negara governor following Tan Sri Muhammad Ibrahim’s resignation. Following the retracement in oil prices which came under pressure from a proposed initiative by Opec and Russia to ease up on global supply cuts despite softening demand, the Ringgit depreciated in tandem to above RM4/US$ level.

During the month, the KLCI fell by 2.8% mom to close at 1,691.50pts on the back of a heavy sell down in the banking and telco sectors. Similarly broader markets also fell in tandem. FTSE Emas fell 1.4% mom in June and FTSE Emas Shariah was down by 0.7% mom, FTSE Bursa Small Cap index posted an increase of 1.5% mom in June as it had fallen substantially much earlier. The Ringgit depreciated by 1.5% mom against the US$ to 4.0385. Going forward, regional markets are expected to be volatile in the second half of the year due to short term uncertainties especially as trade war brick bats between the two super powers continue whilst China’s economy is starting to slow down.

Domestically markets will also be volatile taking its cue from the region compounded by the ongoing review on mega projects, higher minimum wages, potential break up of monopolies and possible downgrade of corporate earnings. Among the key events to watch for will be the upcoming Budget 2019 in November as well as new policies introduced following the formation of the new cabinet. However, a volatile market does offer buying opportunities and themes that we still like are: 1) rising consumerism following more positive consumer sentiment, 2) elevated crude oil prices and 3) blue chips with defensive earnings quality that offers steady dividend yield.

Equity - Foreign 11.3% Equity - Construction 4.1% Equity - Finance 16.7% Equity - Industrial Product 3.3% Equity - Infrastructure 1.1% Equity - Manufacturing 3.4% Equity - Plantation 4.5% Equity - Properties 1.3% Equity - Trading/ Services 35.1% Cash 19.2% Asset & Sector Allocation of HLAVGF as at 29 June 2018 0.40 0.90 1.40 1.90 2.40 2.90 19-Jan-00 19-Jan-01 19-Jan-02 19-Jan-03 19-Jan-04 19-Jan-05 19-Jan-06 19-Jan-07 19-Jan-08 19-Jan-09 19-Jan-10 19-Jan-11 19-Jan-12 19-Jan-13 19-Jan-14 19-Jan-15 19-Jan-16 19-Jan-17 19-Jan-18 I n d e x e d Period HLAVGF Benchmark

Monthly Fund Fact Sheet - June 2018

HLA Venture Growth Fund (HLAVGF) 2 Actual Annual Investment Returns for the Past Five (5) Calendar Years Year 2013 2014 2015 2016 2017 Benchmark 10.5% -5.7% -3.9% -3.0% 9.5% HLAVGF- Gross 16.3% -3.2% -0.6% -0.1% 26.0% HLAVGF - Net 13.6% -4.4% -1.9% -1.5% 22.5% Net returns are adjusted for tax and fund management fees.

Those are the actual returns in the past five (5) years, or since inception if shorter, and are strictly the performance of the investment-linked fund. Thus, the returns are not earned on the actual premium paid of the investment-linked product.

Investment Risks All investments carry risks. Policy Owners must be prepared to accept certain degree of risk associated with this Investment. The following are the non- exhaustive list of risks associated to this fund. 1. Market Risk Market risk stems from the fact that there are other economy-wide perils, which threaten all businesses. It is mainly caused by uncertainties in the economy, political and social environment. 2. Liquidity Risk Liquidity risk is the risk that the fund invested cannot be readily sold and converted into cash. This may arise when the trading volume is low and/or where there is a lack of demand for the security.

3. Credit Risk This refers to the possibility that the issuer of a security will not be able to make timely payments of interest or principal repayment on the maturity date. The default may lead to a fall in the value of the funds. 4. Interest Rate Risk The level of interest rates has an impact on the value of investments. Any increase in rates will lead to a fall in the value of securities, thus affecting the value of the funds. 5. Country Risk The foreign investment of a fund may be affected by the political & economic conditions of the country which the investments are made. 6. Currency Risk This risk is associated with investments that are denominated in foreign currencies.

Fluctuation in foreign exchange rates will have an impact on the value of the funds.

Basis of Unit Valuation 1. The assets of every fund are to be valued to determine the value at which units of a particular fund can be liquidated or purchased for investment purposes. 2. The unit price of a unit of a fund shall be determined by the Company but in any event shall not be less than the value of fund of the relevant fund (as defined below), divided by the number of units of the given fund in issue on the business day before the valuation date, and the result adjusted to the nearest one hundredth of a cent.

3. The maximum value of any asset of any fund shall not exceed the following price: a) The last transacted market price at which those assets could be purchased or sold on the business day before the valuation date; or b) In the case of securities for which market values are not readily available, the price at which, in our Investment Manager’s opinion, the asset may have been purchased on the business day before the valuation date; plus any expenses which would have been incurred in its acquisition.

4. To ensure fair treatment to all unit holders, the cost of acquiring and disposing of assets is recouped by making a transaction cost adjustment to the net asset value per unit.

Exceptional Circumstances The Company reserves the right to defer the payment of benefits (other than death benefit) under this Policy for a period not exceeding six (6) months from the date the payment would have been normally effected if not for intervening events such as temporary closure of any Stock Exchange in which the fund is invested which the Company, in its discretion, may consider exceptional. Basis of Calculation of Past Performance The historical performance of the fund is calculated based on the price difference over the period in consideration compared to the older price of the period in consideration.

Unit Pricet − Unit Pricet-1 Unit Price t-1 Others HLA Venture Growth Fund is managed by Hong Leong Assurance Berhad (HLA). Any amount invested in this fund is invested by HLA on behalf of Policy Owner in equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instrument/s. If the financial institutions and/or corporations issuing the equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instruments defaults or insolvent, the Policy Owner risks losing part or all of his/her amount that were invested into the instruments on his/her behalf by HLA.

THIS IS AN INSURANCE PRODUCT THAT IS TIED TO THE PERFORMANCE OF THE UNDERLYING ASSETS, AND IS NOT A PURE INVESTMENT PRODUCT SUCH AS UNIT TRUSTS.

Disclaimer: Policy Owner must evaluate your options carefully and satisfy yourself that the investment-linked fund chosen meets your risk appetite. Past performance of the fund is not an indication of its future performance. The intention of this document is to enable Policy Owner to better understand the fund features and details in order to assist Policy Owner to making an informed decision. This document shall not be construed as professional advice on investment choices.

HLA Venture Blue Chip Fund (HLAVBCF) Hong Leong Assurance Berhad (94613-X) Level 3, Tower B, PJ City Development, No.

15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor. Telephone 03-7650 1818 Fascimile 03-7650 1991 Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 3 HLA Venture Blue Chip Fund June 2018 Fund Features 1. Investment Objective The objective of the fund is to achieve returns comparable to the general stock market by taking average risks, with focus on well- capitalised and financially sound “blue chip” stocks to achieve a balance of capital gains and dividend income.

2. Investment Strategy & Approach This fund provides participation in the stock market without taking excessive risk by focusing on fundamentally strong “blue chip” stocks listed in Bursa Malaysia and/or in any foreign stock exchanges. This fund is suitable for investors with moderate risk tolerance and expects returns that are comparable to the market as represented by the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI). 3. Asset Allocation The fund may invest up to 95% of its NAV in equities. 4. Target Market This fund is suitable for investors with moderate risk tolerance and expects returns that are comparable to the market as represented by the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI).

Fund Details Unit Price (29/6/2018) : RM2.392 Fund Size (29/6/2018) : RM207.6mil Fund Management Fee (effective as at 01/04/2017) : 1.48% p.a. (capped at 1.50%) Fund Manager : Hong Leong Assurance Berhad Fund Category : Equity Fund Inception : 19 Jan 2000 Benchmark : FTSE Bursa Malaysia KLCI Index (FBM KLCI) Frequency of Unit Valuation : Daily The Company reserves the right to change the cap of Fund Management Fee (% p.a.) by giving the Policy Owner ninety (90) days prior written notice. The Fund Management Fee will be reviewed monthly and will be revised if the previous month end actual asset allocation deviates by more than ten percent (10%) of the initial asset allocation.

Top 10 Holdings for HLAVBCF as at 29 Jun 2018 % 1. CIMB 8.3 2. MAYBANK 8.0 3. TENAGA 6.7 4. YINSON 6.6 5. TENCENT 4.1 6. PBBANK 4.1 7. INARI 3.5 8. AXIATA 3.0 9. GENM 3.0 10 DIGI 2.5 Total Top 10 49.7 Historical Performance YTD 1 month 1 year 3 years 5 years 10 years Since Inception HLAVBCF -12.38% -1.70% -6.61% 1.64% 11.25% 79.03% 139.20% Benchmark* -5.86% -2.82% -4.09% -0.89% -4.63% 42.55% 81.22% Relative -6.52% 1.12% -2.51% 2.53% 15.88% 36.47% 57.98% *Source: Bloomberg Market Review, Outlook & Strategy June was a volatile month for global equity markets which took the cue from the many macro and geo-political events.

The decision by US President Donald Trump on the US$50b in tariffs on Chinese imports and China’s subsequent retaliation spooked investors once again. As such, emerging markets were the worst affected on the back of escalating trade war tensions as money flowed back to developed markets in particular the US, on the back of a strong US dollar. A more apparent synchronized tightening of liquidity in global markets also did not help markets. The European Central Bank signaled a close to its quantitative easing program while the Fed raised rates, followed by the guidance of 2 more hikes for the rest of the year.

Domestically, foreign selling continued with total cumulative net selling of RM7b on a year to date basis. Investors were mainly concerned over short term policy uncertainty, opting to sell ahead of any potential negative news. The government was also seen undertaking GLC reform initiatives following the resignation of heads in Telekom Malaysia, MRCB, Malaysian Airports and the chairman of PNB. The Government also announced Datuk Nor Shamsiah as the new Bank Negara governor following Tan Sri Muhammad Ibrahim’s resignation. Following the retracement in oil prices which came under pressure from a proposed initiative by Opec and Russia to ease up on global supply cuts despite softening demand, the Ringgit depreciated in tandem to above RM4/US$ level.

During the month, the KLCI fell by 2.8% mom to close at 1,691.50pts on the back of a heavy sell down in the banking and telco sectors. Similarly broader markets also fell in tandem. FTSE Emas fell 1.4% mom in June and FTSE Emas Shariah was down by 0.7% mom, FTSE Bursa Small Cap index posted an increase of 1.5% mom in June as it had fallen substantially much earlier. The Ringgit depreciated by 1.5% mom against the US$ to 4.0385. Going forward, regional markets are expected to be volatile in the second half of the year due to short term uncertainties especially as trade war brick bats between the two super powers continue whilst China’s economy is starting to slow down.

Domestically markets will also be volatile taking its cue from the region compounded by the ongoing review on mega projects, higher minimum wages, potential break up of monopolies and possible downgrade of corporate earnings. Among the key events to watch for will be the upcoming Budget 2019 in November as well as new policies introduced following the formation of the new cabinet. However, a volatile market does offer buying opportunities and themes that we still like are: 1) rising consumerism following more positive consumer sentiment, 2) elevated crude oil prices and 3) blue chips with defensive earnings quality that offers steady dividend yield.

Equity - Foreign 10.4% Equity - Construction 4.1% Equity - Finance 20.3% Equity - Industrial Product 4.6% Equity - Infrastructure 0.8% Equity - Manufacturing 3.5% Equity - Plantation 3.3% Equity - Properties 1.5% Equity - Reits 1.1% Equity - Trading/ Services 31.4% Cash 19.1% Asset & Sector Allocation of HLAVBCF as at 29 Jun 2018 0.40 0.80 1.20 1.60 2.00 2.40 2.80 31-Jan-00 31-Jan-01 31-Jan-02 31-Jan-03 31-Jan-04 31-Jan-05 31-Jan-06 31-Jan-07 31-Jan-08 31-Jan-09 31-Jan-10 31-Jan-11 31-Jan-12 31-Jan-13 31-Jan-14 31-Jan-15 31-Jan-16 31-Jan-17 31-Jan-18 I n d e x e d Period HLAVBCF Benchmark

HLA Venture Blue Chip Fund (HLAVBCF) 4 Actual Annual Investment Returns for the Past Five (5) Calendar Years Year 2013 2014 2015 2016 2017 Benchmark 10.5% -5.7% -3.9% -3.0% 9.5% HLAVBF- Gross 21.4% 3.2% 1.1% -0.1% 23.6% HLAVBF - Net 18.3% 1.5% -0.4% -1.6% 20.3% Net returns are adjusted for tax and fund management fees. Those are the actual returns in the past five (5) years, or since inception if shorter, and are strictly the performance of the investment-linked fund. Thus, the returns are not earned on the actual premium paid of the investment-linked product.

Investment Risks All investments carry risks.

Policy Owners must be prepared to accept certain degree of risk associated with this Investment. The following are the non- exhaustive list of risks associated to this fund. 1. Market Risk Market risk stems from the fact that there are other economy-wide perils, which threaten all businesses. It is mainly caused by uncertainties in the economy, political and social environment. 2. Liquidity Risk Liquidity risk is the risk that the fund invested cannot be readily sold and converted into cash. This may arise when the trading volume is low and/or where there is a lack of demand for the security.

3. Credit Risk This refers to the possibility that the issuer of a security will not be able to make timely payments of interest or principal repayment on the maturity date. The default may lead to a fall in the value of the funds. 4. Interest Rate Risk The level of interest rates has an impact on the value of investments. Any increase in rates will lead to a fall in the value of securities, thus affecting the value of the funds. 5. Country Risk The foreign investment of a fund may be affected by the political & economic conditions of the country which the investments are made. 6. Currency Risk This risk is associated with investments that are denominated in foreign currencies.

Fluctuation in foreign exchange rates will have an impact on the value of the funds.

Risk Management The Company has in place its Authorized Investment Framework which forms part of the Risk Management process. The authority framework will cover the nature and scope of the investment authority that is exercisable by various parties in managing the Company’s investments. Besides this, sensitivity and stress testing is conducted to inform the Company’s management the profit & loss profiles of their investments under different pre-defined risk scenarios and the necessary action to be taken if the potential losses exceed the Company’s risk tolerance level. Basis of Unit Valuation 1.

The assets of every fund are to be valued to determine the value at which units of a particular fund can be liquidated or purchased for investment purposes.

2. The unit price of a unit of a fund shall be determined by the Company but in any event shall not be less than the value of fund of the relevant fund (as defined below), divided by the number of units of the given fund in issue on the business day before the valuation date, and the result adjusted to the nearest one hundredth of a cent. 3. The maximum value of any asset of any fund shall not exceed the following price: a) The last transacted market price at which those assets could be purchased or sold on the business day before the valuation date; or b) In the case of securities for which market values are not readily available, the price at which, in our Investment Manager’s opinion, the asset may have been purchased on the business day before the valuation date; plus any expenses which would have been incurred in its acquisition.

4. To ensure fair treatment to all unit holders, the cost of acquiring and disposing of assets is recouped by making a transaction cost adjustment to the net asset value per unit.

Exceptional Circumstances The Company reserves the right to defer the payment of benefits (other than death benefit) under this Policy for a period not exceeding six (6) months from the date the payment would have been normally effected if not for intervening events such as temporary closure of any Stock Exchange in which the fund is invested which the Company, in its discretion, may consider exceptional. Basis of Calculation of Past Performance The historical performance of the fund is calculated based on the price difference over the period in consideration compared to the older price of the period in consideration.

Unit Pricet − Unit Pricet-1 Unit Price t-1 Others HLA Venture Blue Chip Fund is managed by Hong Leong Assurance Berhad (HLA). Any amount invested in this fund is invested by HLA on behalf of Policy Owner in equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instrument/s. If the financial institutions and/or corporations issuing the equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instruments defaults or insolvent, the Policy Owner risks losing part or all of his/her amount that were invested into the instruments on his/her behalf by HLA.

THIS IS AN INSURANCE PRODUCT THAT IS TIED TO THE PERFORMANCE OF THE UNDERLYING ASSETS, AND IS NOT A PURE INVESTMENT PRODUCT SUCH AS UNIT TRUSTS.

Disclaimer: Policy Owner must evaluate your options carefully and satisfy yourself that the investment-linked fund chosen meets your risk appetite. Past performance of the fund is not an indication of its future performance. The intention of this document is to enable Policy Owner to better understand the fund features and details in order to assist Policy Owner to making an informed decision. This document shall not be construed as professional advice on investment choices.

HLA Venture Dana Putra (HLAVDP) Hong Leong Assurance Berhad (94613-X) Level 3, Tower B, PJ City Development, No.

15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor. Telephone 03-7650 1818 Fascimile 03-7650 1991 Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 5 June 2018 Fund Features 1. Investment Objective The objective of the fund is to achieve capital growth over the medium to long term. 2. Investment Strategy & Approach This fund invests in Syariah-approved securities and money market instruments. This is a balanced fund with a medium risk profile. 3. Asset Allocation The fund will invest up to 90% but not less than 40% of its NAV in equities.

4. Target Market This fund is suitable for investors who are willing to take moderate risk. Fund Details Unit Price (29/6/2018) : RM2.4668 Fund Size (29/6/2018) : RM68.3mil Fund Management Fee (effective as at 01/09/2016) : 1.40% p.a. (capped at 1.40%) Fund Manager : Hong Leong Assurance Berhad Fund Category : Equity Fund Inception : 19 Jul 2000 Benchmark : FBM EmasShariah Index (KL Shariah Index) Frequency of Unit Valuation : Daily The Company reserves the right to change the cap of Fund Management Fee (% p.a.) by giving the Policy Owner ninety (90) days prior written notice. The Fund Management Fee will be reviewed monthly and will be revised if the previous month end actual asset allocation deviates by more than ten percent (10%) of the initial asset allocation.

Top 10 Holdings for HLAVDP as at 29 Jun 2018 % 1. TENAGA 8.0 2. QL 5.3 3. INARI 4.2 4. DIALOG 4.2 5. YINSON 3.8 6. IOICORP 3.1 7. SIMEPLT 3.1 8. KERJAYA 2.9 9. AXIATA 2.7 10 SPSETIA 2.4 Total Top 10 39.7 Historical Performance YTD 1 month 1 year 3 years 5 years 10 years Since Inception HLAVDP -11.06% 0.81% -5.36% 2.54% 10.92% 54.45% 146.68% Benchmark* -9.10% -0.69% -5.69% -0.95% -1.64% 40.82% 90.96% Relative -1.96% 1.50% 0.33% 3.49% 12.56% 13.63% 55.72% Source: Bloomberg Market Review, Outlook & Strategy June was a volatile month for global equity markets which took the cue from the many macro and geo-political events.

The decision by US President Donald Trump on the US$50b in tariffs on Chinese imports and China’s subsequent retaliation spooked investors once again. As such, emerging markets were the worst affected on the back of escalating trade war tensions as money flowed back to developed markets in particular the US, on the back of a strong US dollar. A more apparent synchronized tightening of liquidity in global markets also did not help markets. The European Central Bank signaled a close to its quantitative easing program while the Fed raised rates, followed by the guidance of 2 more hikes for the rest of the year.

Domestically, foreign selling continued with total cumulative net selling of RM7b on a year to date basis. Investors were mainly concerned over short term policy uncertainty, opting to sell ahead of any potential negative news. The government was also seen undertaking GLC reform initiatives following the resignation of heads in Telekom Malaysia, MRCB, Malaysian Airports and the chairman of PNB. The Government also announced Datuk Nor Shamsiah as the new Bank Negara governor following Tan Sri Muhammad Ibrahim’s resignation. Following the retracement in oil prices which came under pressure from a proposed initiative by Opec and Russia to ease up on global supply cuts despite softening demand, the Ringgit depreciated in tandem to above RM4/US$ level.

During the month, the KLCI fell by 2.8% mom to close at 1,691.50pts on the back of a heavy sell down in the banking and telco sectors. Similarly broader markets also fell in tandem. FTSE Emas fell 1.4% mom in June and FTSE Emas Shariah was down by 0.7% mom, FTSE Bursa Small Cap index posted an increase of 1.5% mom in June as it had fallen substantially much earlier. The Ringgit depreciated by 1.5% mom against the US$ to 4.0385.

Going forward, regional markets are expected to be volatile in the second half of the year due to short term uncertainties especially as trade war brick bats between the two super powers continue whilst China’s economy is starting to slow down. Domestically markets will also be volatile taking its cue from the region compounded by the ongoing review on mega projects, higher minimum wages, potential break up of monopolies and possible downgrade of corporate earnings. Among the key events to watch for will be the upcoming Budget 2019 in November as well as new policies introduced following the formation of the new cabinet.

However, a volatile market does offer buying opportunities and themes that we still like are: 1) rising consumerism following more positive consumer sentiment, 2) elevated crude oil prices and 3) blue chips with defensive earnings quality that offers steady dividend yield. HLA Venture Dana Putra Equity - Construction 3.3% Equity - Consumer 8.0% Equity - Industrial Products 10.2% Equity - Finance 1.8% Equity - Manufacturin g 4.3% Equity - Plantation 8.1% Equity - Properties 3.6% Equity - Technology 3.0% Equity - Trading/ Services 27.1% Cash 30.8% Asset & Sector Allocation of HLAVDP as at 29 Jun 2018 0.60 1.10 1.60 2.10 2.60 3.10 19/Jul/00 19/Jul/01 19/Jul/02 19/Jul/03 19/Jul/04 19/Jul/05 19/Jul/06 19/Jul/07 19/Jul/08 19/Jul/09 19/Jul/10 19/Jul/11 19/Jul/12 19/Jul/13 19/Jul/14 19/Jul/15 19/Jul/16 19/Jul/17 I n d e x e d Period HLAVDP Benchmark

HLA Venture Dana Putra (HLAVDP) 6 Actual Annual Investment Returns for the Past Five (5) Calendar Years Year 2013 2014 2015 2016 2017 Benchmark 13.3% -4.2% 2.4% -6.1% 10.7% HLAVDP- Gross 32.6% -1.1% 4.9% -2.4% 20.8% HLAVDP - Net 28.6% -2.4% 3.1% -3.6% 17.7% Net returns are adjusted for tax and fund management fees. Those are the actual returns in the past five (5) years, or since inception if shorter, and are strictly the performance of the investment-linked fund. Thus, the returns are not earned on the actual premium paid of the investment-linked product.

Investment Risks All investments carry risks.

Policy Owners must be prepared to accept certain degree of risk associated with this Investment. The following are the non- exhaustive list of risks associated to this fund. 1. Market Risk Market risk stems from the fact that there are other economy-wide perils, which threaten all businesses. It is mainly caused by uncertainties in the economy, political and social environment. 2. Liquidity Risk Liquidity risk is the risk that the fund invested cannot be readily sold and converted into cash. This may arise when the trading volume is low and/or where there is a lack of demand for the security.

3. Credit Risk This refers to the possibility that the issuer of a security will not be able to make timely payments of interest or principal repayment on the maturity date. The default may lead to a fall in the value of the funds. 4. Interest Rate Risk The level of interest rates has an impact on the value of investments. Any increase in rates will lead to a fall in the value of securities, thus affecting the value of the funds. Risk Management The Company has in place its Authorized Investment Framework which forms part of the Risk Management process. The authority framework will cover the nature and scope of the investment authority that is exercisable by various parties in managing the Company’s investments.

Besides this, sensitivity and stress testing is conducted to inform the Company’s management the profit & loss profiles of their investments under different pre-defined risk scenarios and the necessary action to be taken if the potential losses exceed the Company’s risk tolerance level. Basis of Unit Valuation 1. The assets of every fund are to be valued to determine the value at which units of a particular fund can be liquidated or purchased for investment purposes.

2. The unit price of a unit of a fund shall be determined by the Company but in any event shall not be less than the value of fund of the relevant fund (as defined below), divided by the number of units of the given fund in issue on the business day before the valuation date, and the result adjusted to the nearest one hundredth of a cent. 3. The maximum value of any asset of any fund shall not exceed the following price: a) The last transacted market price at which those assets could be purchased or sold on the business day before the valuation date; or b) In the case of securities for which market values are not readily available, the price at which, in our Investment Manager’s opinion, the asset may have been purchased on the business day before the valuation date; plus any expenses which would have been incurred in its acquisition.

4. To ensure fair treatment to all unit holders, the cost of acquiring and disposing of assets is recouped by making a transaction cost adjustment to the net asset value per unit.

Exceptional Circumstances The Company reserves the right to defer the payment of benefits (other than death benefit) under this Policy for a period not exceeding six (6) months from the date the payment would have been normally effected if not for intervening events such as temporary closure of any Stock Exchange in which the fund is invested which the Company, in its discretion, may consider exceptional. Basis of Calculation of Past Performance The historical performance of the fund is calculated based on the price difference over the period in consideration compared to the older price of the period in consideration.

Unit Pricet − Unit Pricet-1 Unit Price t-1 Others HLA Venture Dana Putra is managed by Hong Leong Assurance Berhad (HLA). Any amount invested in this fund is invested by HLA on behalf of Policy Owner in equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instrument/s. If the financial institutions and/or corporations issuing the equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instruments defaults or insolvent, the Policy Owner risks losing part or all of his/her amount that were invested into the instruments on his/her behalf by HLA.

THIS IS AN INSURANCE PRODUCT THAT IS TIED TO THE PERFORMANCE OF THE UNDERLYING ASSETS, AND IS NOT A PURE INVESTMENT PRODUCT SUCH AS UNIT TRUSTS.

Disclaimer: Policy Owner must evaluate your options carefully and satisfy yourself that the investment-linked fund chosen meets your risk appetite. Past performance of the fund is not an indication of its future performance. The intention of this document is to enable Policy Owner to better understand the fund features and details in order to assist Policy Owner to making an informed decision. This document shall not be construed as professional advice on investment choices.

HLA Venture Flexi Fund (HLAVFF) Hong Leong Assurance Berhad (94613-X) Level 3, Tower B, PJ City Development, No.

15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor. Telephone 03-7650 1818 Fascimile 03-7650 1991 Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 7 HLA Venture Flexi Fund June 2018 Fund Features 1. Investment Objective The objective of the fund is to provide investors the opportunity to enjoy medium to long-term capital appreciation from the prevailing sectorial and investment themes in Malaysian equities market. 2. Investment Strategy & Approach The fund would be actively managed, rotating between sectors deemed to benefit the most at any given point in time, and would comprise several Core Sectors and Trading / Rotational Sectors which would vary depending on prevailing market conditions.

The strategy will be to identify the themes in its early phase to capitalize on its growth. This fund is suitable for aggressive investors who are willing to take higher risk and wish to seek higher returns from a diversified portfolio with thematic investment opportunities. 3. Asset Allocation The fund will invest a minimum of 30% and up to 95% of its NAV in equities.

4. Target Market This fund is suitable for aggressive investors who are willing to take higher risk and wish to seek higher returns from a diversified portfolio with thematic investment opportunities. Fund Details Unit Price (29/6/2018) : RM0.9083 Fund Size (29/6/2018) : RM45.9mil Fund Management Fee (effective as at 01/09/2016) : 1.45% p.a. (capped at 1.48%) Fund Manager : Hong Leong Assurance Berhad Fund Category : Equity Fund Inception : 06 April 2009 Benchmark : FTSE Bursa Malaysia KLCI Index (FBM KLCI) Frequency of Unit Valuation : Daily The Company reserves the right to change the cap of Fund Management Fee (% p.a.) by giving the Policy Owner ninety (90) days prior written notice.

The Fund Management Fee will be reviewed monthly and will be revised if the previous month end actual asset allocation deviates by more than ten percent (10%) of the initial asset allocation.

Top 10 Holdings for HLAVFF as at 29 Jun 2018 % 1. MAYBANK 7.9 2. CIMB 7.5 3. TENAGA 4.8 4. INARI 4.0 5. YINSON 3.5 6. GENM 2.7 7. LAYHONG 2.5 8. MMSV 2.5 9. AXIATA 2.4 10 DIALOG 2.0 Total Top 10 39.7 Historical Performance YTD 1 month 1 year 3 years 5 years Since Inception HLAVFF -17.52% -0.62% -11.13% 4.47% 12.32% 81.66% Benchmark* -5.86% -2.82% -4.09% -0.89% -4.63% 83.11% Relative -11.66% 2.20% -7.04% 5.36% 16.94% -1.45% *Source: Bloomberg Market Review, Outlook & Strategy June was a volatile month for global equity markets which took the cue from the many macro and geo-political events.

The decision by US President Donald Trump on the US$50b in tariffs on Chinese imports and China’s subsequent retaliation spooked investors once again. As such, emerging markets were the worst affected on the back of escalating trade war tensions as money flowed back to developed markets in particular the US, on the back of a strong US dollar. A more apparent synchronized tightening of liquidity in global markets also did not help markets. The European Central Bank signaled a close to its quantitative easing program while the Fed raised rates, followed by the guidance of 2 more hikes for the rest of the year.

Domestically, foreign selling continued with total cumulative net selling of RM7b on a year to date basis. Investors were mainly concerned over short term policy uncertainty, opting to sell ahead of any potential negative news. The government was also seen undertaking GLC reform initiatives following the resignation of heads in Telekom Malaysia, MRCB, Malaysian Airports and the chairman of PNB. The Government also announced Datuk Nor Shamsiah as the new Bank Negara governor following Tan Sri Muhammad Ibrahim’s resignation. Following the retracement in oil prices which came under pressure from a proposed initiative by Opec and Russia to ease up on global supply cuts despite softening demand, the Ringgit depreciated in tandem to above RM4/US$ level.

During the month, the KLCI fell by 2.8% mom to close at 1,691.50pts on the back of a heavy sell down in the banking and telco sectors. Similarly broader markets also fell in tandem. FTSE Emas fell 1.4% mom in June and FTSE Emas Shariah was down by 0.7% mom, FTSE Bursa Small Cap index posted an increase of 1.5% mom in June as it had fallen substantially much earlier. The Ringgit depreciated by 1.5% mom against the US$ to 4.0385.

Going forward, regional markets are expected to be volatile in the second half of the year due to short term uncertainties especially as trade war brick bats between the two super powers continue whilst China’s economy is starting to slow down. Domestically markets will also be volatile taking its cue from the region compounded by the ongoing review on mega projects, higher minimum wages, potential break up of monopolies and possible downgrade of corporate earnings. Among the key events to watch for will be the upcoming Budget 2019 in November as well as new policies introduced following the formation of the new cabinet.

However, a volatile market does offer buying opportunities and themes that we still like are: 1) rising consumerism following more positive consumer sentiment, 2) elevated crude oil prices and 3) blue chips with defensive earnings quality that offers steady dividend yield. Equity - Construction 11.47% Equity - Consumer 3.2% Equity - Finance 15.3% Equity - Industrial Products 8.6% Equity - Infrastructure 1.4% Equity - Manufacturing 4.0% Equity - Plantation 4.1% Equity - Properties 2.4% Equity - REITS 1.1% Equity - Technology 3.8% Equity - Trading/ Services 28.3% Cash 24.3% Asset & Sector Allocation of HLAVFF as at 29 Jun 2018 0.80 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40 6-Apr-09 6-Oct-09 6-Apr-10 6-Oct-10 6-Apr-11 6-Oct-11 6-Apr-12 6-Oct-12 6-Apr-13 6-Oct-13 6-Apr-14 6-Oct-14 6-Apr-15 6-Oct-15 6-Apr-16 6-Oct-16 6-Apr-17 6-Oct-17 6-Apr-18 I n d e x e d Period Benchmark HLAVFF

HLA Venture Flexi Fund (HLAVFF) 8 Actual Annual Investment Returns for the Past Five (5) Calendar Years Year 2013 2014 2015 2016 2017 Benchmark 10.5% -5.7% -3.9% -3.0% 9.5% HLAVFF- Gross 24.1% -3.9% 12.2% -2.4% 30.6% HLAVFF - Net 20.8% -5.0% 9.8% -3.7% 26.7% Net returns are adjusted for tax and fund management fees. Those are the actual returns in the past five (5) years, or since inception if shorter, and are strictly the performance of the investment-linked fund. Thus, the returns are not earned on the actual premium paid of the investment-linked product.

Investment Risks All investments carry risks.

Policy Owners must be prepared to accept certain degree of risk associated with this Investment. The following are the non- exhaustive list of risks associated to this fund. 1. Market Risk Market risk stems from the fact that there are other economy-wide perils, which threaten all businesses. It is mainly caused by uncertainties in the economy, political and social environment. 2. Liquidity Risk Liquidity risk is the risk that the fund invested cannot be readily sold and converted into cash. This may arise when the trading volume is low and/or where there is a lack of demand for the security.

3. Credit Risk This refers to the possibility that the issuer of a security will not be able to make timely payments of interest or principal repayment on the maturity date. The default may lead to a fall in the value of the funds. 4. Interest Rate Risk The level of interest rates has an impact on the value of investments. Any increase in rates will lead to a fall in the value of securities, thus affecting the value of the funds. 5. Country Risk The foreign investment of a fund may be affected by the political & economic conditions of the country which the investments are made. 6. Currency Risk This risk is associated with investments that are denominated in foreign currencies.

Fluctuation in foreign exchange rates will have an impact on the value of the funds.

Risk Management The Company has in place its Authorized Investment Framework which forms part of the Risk Management process. The authority framework will cover the nature and scope of the investment authority that is exercisable by various parties in managing the Company’s investments. Besides this, sensitivity and stress testing is conducted to inform the Company’s management the profit & loss profiles of their investments under different pre-defined risk scenarios and the necessary action to be taken if the potential losses exceed the Company’s risk tolerance level. Basis of Unit Valuation 1.

The assets of every fund are to be valued to determine the value at which units of a particular fund can be liquidated or purchased for investment purposes.

2. The unit price of a unit of a fund shall be determined by the Company but in any event shall not be less than the value of fund of the relevant fund (as defined below), divided by the number of units of the given fund in issue on the business day before the valuation date, and the result adjusted to the nearest one hundredth of a cent. 3. The maximum value of any asset of any fund shall not exceed the following price: a) The last transacted market price at which those assets could be purchased or sold on the business day before the valuation date; or b) In the case of securities for which market values are not readily available, the price at which, in our Investment Manager’s opinion, the asset may have been purchased on the business day before the valuation date; plus any expenses which would have been incurred in its acquisition.

4. To ensure fair treatment to all unit holders, the cost of acquiring and disposing of assets is recouped by making a transaction cost adjustment to the net asset value per unit.

Exceptional Circumstances The Company reserves the right to defer the payment of benefits (other than death benefit) under this Policy for a period not exceeding six (6) months from the date the payment would have been normally effected if not for intervening events such as temporary closure of any Stock Exchange in which the fund is invested which the Company, in its discretion, may consider exceptional. Basis of Calculation of Past Performance The historical performance of the fund is calculated based on the price difference over the period in consideration compared to the older price of the period in consideration.

Unit Pricet − Unit Pricet-1 Unit Price t-1 Others HLA Venture Flexi Fund is managed by Hong Leong Assurance Berhad (HLA). Any amount invested in this fund is invested by HLA on behalf of Policy Owner in equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instrument/s. If the financial institutions and/or corporations issuing the equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instruments defaults or insolvent, the Policy Owner risks losing part or all of his/her amount that were invested into the instruments on his/her behalf by HLA.

THIS IS AN INSURANCE PRODUCT THAT IS TIED TO THE PERFORMANCE OF THE UNDERLYING ASSETS, AND IS NOT A PURE INVESTMENT PRODUCT SUCH AS UNIT TRUSTS.

Disclaimer: Policy Owner must evaluate your options carefully and satisfy yourself that the investment-linked fund chosen meets your risk appetite. Past performance of the fund is not an indication of its future performance. The intention of this document is to enable Policy Owner to better understand the fund features and details in order to assist Policy Owner to making an informed decision. This document shall not be construed as professional advice on investment choices.

HLA Value Fund (HLVF) Hong Leong Assurance Berhad (94613-X) Level 3, Tower B, PJ City Development, No.

15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor. Telephone 03-7650 1818 Fascimile 03-7650 1991 Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 9 HLA Value Fund June 2018 Fund Features 1. Investment Objective The objective of the fund is to achieve large capital gains by investing in companies that are well-managed and financially stable which are undervalued or at deep discount to their net tangible asset values.

2. Investment Strategy & Approach The strategy is to provide investors an access into a diversified portfolio of value stocks listed on Bursa Malaysia and/or in any foreign stock exchanges that offer potential capital appreciation. The fund may feed into collective investment schemes that meet the fund’s objective. At inception, the fund will invest by feeding into Hong Leong Penny Stock Fund (‘Target Fund’) with the option to increase the number of funds or replace the Target Fund in future. The Target Fund will invest with a value investment strategy across equity securities of all market capitalization level of companies operating in Malaysia.

Generally, companies that have valuations at a discount to the market and/or its sector peers are selected. Additionally, the Target Fund may also invest in stocks with market capitalization of up to RM1 billion that are not well covered by equity research houses and stockbrokers.

3. Plough Back Mechanism In the event that the net fund performance is below 5% per annum based on the performance assessment on the last business day of September of each year, an amount equivalent to 0.5% per annum of the fund’s Net Asset Value (NAV) will be ploughed back to the fund in four equal weekly payments. The first payment will be due on the first business day of October of each year. 4. Asset Allocation The indicative asset allocation for Hong Leong Penny Stock Fund (‘Target Fund’) is to invest a minimum of 70% of its NAV in equities and maximum 30% of its NAV in fixed income securities.

Generally, HLA Value Fund may invest up to 95% of its NAV in equities. 5. Target Market This fund is suitable for investors who have a higher than average risk tolerance level, medium-term investment horizon, and are able to accept the anticipated higher volatility of the fund. Fund Details Unit Price (29/6/2018) : RM 1.1601 Fund Size (29/6/2018) : RM 71.4mil Fund Management Fee (effective as at 01/10/2015) : 1.45% p.a.

Fund Manager : Hong Leong Assurance Berhad Fund Category : Equity Fund Inception : 01 October 2015 Benchmark : FTSE Bursa Malaysia EMAS Frequency of Unit Valuation : Daily Fund management charge of underlying Collective Investment Scheme(s) is part of Fund Management Fee as stated in table above. There are no additional charges being charged to the Policy Owner. The Company reserves the right to change the Fund Management Fee (% p.a.) by giving the Policy Owner ninety (90) days prior written notice. Top 10 Holdings for HLVF as at 29 Jun 2018 % 1. MALAYAN BANKING BERHAD 7.1 2. GAMUDA BERHAD 6.5 3.

BURSA MALAYSIA BERHAD 6.4 4. IHH HEALTHCARE BERHAD 5.8 5. GENTING MALAYSIA BERHAD 5.6 6. PUBLIC BANK BERHAD 5.0 7. FRASER & NEAVE HOLDINGS BERHAD 4.9 8. MALAYSIA AIRPORTS HOLDINGS BERHAD 4.9 9. TENAGA NASIONAL BERHAD 4.8 10 AEON CREDIT SERVICE M BHD 4.6 Total Top 10 55.5 Historical Performance YTD 1 month 6 months 1 year 2 years Since Inception HLVF - 4.79% -1.30% - 4.79% 1.66% 16.36% 16.01% Benchmark* - 7.58% -1.39% - 7.58% -5.06% 3.74% 6.10% Relative 2.79% 0.08% 2.79% 6.72% 12.62% 9.91% *Source: Bloomberg Market Review, Outlook & Strategy During the month, the FTSE BM KLCI declined 2.8% to close at 1,692 points.

The broader market outperformed as the FTSE BM EMAS Index declined 1.4% to close at 11,961 points. Small caps outperformed as the FTSE BM Small Cap Index rose 1.5% to close at 14,013 points.

Foreign outflow continued unabated during the month. Regional market weakness also contributed to the overall poor market sentiment. On the corporate front, Sapura Energy Berhad secured nine contracts worth about RM1.8 billion. MISC Berhad clinched a long-term charter contract to own and operate four specialist tankers from Petrobas. MyEG Services Berhad’s contract with the Immigration Department to implement the government’s rehiring exercise of undocumented foreign workers will be terminated by the end of June. The Fund will continue to invest in companies that would benefit from superior pricing power and efficient cost management.

Equity - Construction 6.5% Equity - Consumer 6.4% Equity - Finance 33.1% Equity - Industrial Products 7.1% Equity - Technology 3.3% Equity - Trading/ Services 25.1% Collective Investment Schemes 3.2% Infrastructure Project Companies 4.3% Cash 11.0% Asset & Sector Allocation of HLVF as at 29 Jun 2018 0.92 0.97 1.02 1.07 1.12 1.17 1.22 1.27 1.32 1-Oct-15 1-Dec-15 1-Feb-16 1-Apr-16 1-Jun-16 1-Aug-16 1-Oct-16 1-Dec-16 1-Feb-17 1-Apr-17 1-Jun-17 1-Aug-17 1-Oct-17 1-Dec-17 1-Feb-18 1-Apr-18 1-Jun-18 I n d e x e d Period Benchmark HLAVF