Compliance

Principal Asset Management Berhad (formerly known as CIMB-Principal Asset Management Berhad) ('Principal') has a compliance unit which is responsible to ensure that all business conducts and practices of the Company complies with securities laws, regulations and relevant guidelines which are gazetted and issued by the regulators.

The compliance unit reports directly to the board of directors and works closely with the senior management personnel on all compliance matters. The Unit also liaises with other departments within the Company to discharge the duties and functions effectively.

Other responsibilities include: Establishing, maintaining and administering the implementation of policies and procedures to detect and prevent breaches of securities laws, regulations and relevant guidelines; Preparing and tabling compliance reviews to the board of directors; Maintaining and reviewing compliance procedures for each area of the Company’s operation; Examining and investigating any irregularity in the Company’s operations; Assisting in training and educating staff members on compliance matters, industry and regulatory developments.

Principal has developed a set of "Rules of Business Conduct" which applies to all employees that set forth Principal's commitment to conduct its business lawfully with high credibility and integrity. The culture dictates that compliance is each employee's responsibility. Principal also has a Business Continuity Plan (BCP) in place that details the Company’s back-up plans for all key systems and proceeding of operations in the event of disaster.

Risk Management

Principal's risk management comprises dedicated risk management and compliance teams, and members of the investment committee.

The team works in tandem with the investment team to ensure the level of risk meets the expectations of clients' overall performance targets that are set against the appropriate benchmark. Portfolios are constructed and managed within pre-determined guidelines such as risk budgets that will be monitored regularly.

Investment Committee

Principal has appointed the investment committee for the Funds, pursuant to the requirements under the Securities Commission Malaysia (SC) guidelines. The investment committee currently consists of five (5) members including three (3) independent members.

Kim Teo Poh Jin | Chairman Independent member
Wong Fook Wah Independent member
A.Huzaime bin Dato' Abdul Hamid  Independent member
Mohamad Safri Shahrul Hamid  Non-Independent member
Alejandro Elias Echegorri Rodriguez  Non-Independent member

 

Generally, the investment committee meets once a month and is responsible for ensuring that the investment management of the Funds is consistent with the objectives of the Funds, the Deeds, the SC guidelines and relevant securities laws, any internal investment restrictions and policies of the Manager, as well as acceptable and efficacious investment management practices within the unit trust industry.

In this role, the powers and duties of the investment committee include formulating and monitoring the implementation by the Manager of appropriate investment management strategies for the Funds and the measurement and evaluation of the performance of the Manager.

The designated person for fund management function for all Principal Funds is the Chief Investment Officer:

Name: Patrick Chang Chian Ping
Designation: Chief Investment Officer, Malaysia
Experience: Patrick was appointed as the Chief Investment Officer, Malaysia on 22 February 2016. He comes with an extensive 15 year experience in asset management and is backed by numerous ASEAN awards from Malaysian pension funds in 2013 and 2015. He was previously the Head of ASEAN equities at BNP Paribas Investment Partners, Malaysia where he oversees ASEAN equities for both Malaysian and offshore clients from 2012. Prior to that, he served as Senior Vice President for Principal Asset Management where he specialised in Malaysia, ASEAN and Asia specialist funds. He also worked as a portfolio manager at Riggs and Co International Private Banking in London specializing in managing global ETF portfolios. MSc Finance from City University Business School and BSc Accounting and Financial Analysis from University of Warwick (Chevening Scholar), UK.

 

Investment Committee Members

Kim Teo Poh Jin*

Chairman, Investment Committee
Executive Director and Group Chief Executive Officer, Boardroom Limited
Director, Marina Yacht Services Pte. Ltd

Experience:
He has about 25 years of experience in the financial industry, having worked in senior positions of major financial institutions.

Qualification:
Bachelor of Arts (Hons) in Economics from the Heriot-Watt University of Edinburgh.

 

Wong Fook Wah*

Ex-Deputy Group Chief Executive, RAM Holdings Berhad

Experience:
Wong had served 20 years in RAM Holdings Bhd., from its inception as Malaysia’s first credit rating agency in 1991. He held several positions over the years including Managing Director/CEO of RAM Rating Services Sdn. Bhd. His last position was that of Deputy Group Executive Officer of RAM Holdings Berhad (“RAM”). He retired from RAM in March 2011.

Prior to joining RAM, Wong worked for the Ministry of Finance, Malaysia from 1977 to April 1991. He first served as an economist in the Economics Planning Division for the first 8 years. Then, for 4 years from 1987 to 1991, he worked as an analyst in a special task unit handling rehabilitational and restructuring work on ailing Government-owned enterprises.

He was on the Board of Directors of the Malaysia Derivatives Exchange Bhd. (MDEX) from 2001 to May 2004 as an appointee of the Ministry of Finance. He also served on the Board of Directors of RAM Rating Services Bhd., Bond Pricing Agency Sdn. Bhd. and RAM Credit Information Sdn. Bhd., representing the interest of RAM Holdings Bhd. prior to retirement.

Qualification:
Bachelor of Arts (Economics) from Universiti Malaya (1977) and a Masters degree in Policy Science from Saitama University, Japan (1987).

 

A.Huzaime Bin Dato’ Abdul Hamid*

Director, Principal Asset Management

Experience:
Has been a Director of Principal Asset Management since 2 May 2013.

Huzaime has spent 27 years in various aspects of finance, economics, and public policy advisory. 12 of those years was spent as a fund manager, where he was, among others, a Chief Investment Officer with Alliance Capital Asset Management and as a member of the Pacific Region Team and a Global Commodities Specialist with Hong Kong's Jardine Fleming Investment Management which is now part of JP Morgan, Chase and Co. He was an independent Investment Committee member for 6 years for Principal Asset Management as well as being the same for Principal Islamic Asset Management and CIMB Wealth Advisors Berhad for several years. He also served as an independent Investment Committee member for CIMB Aviva Assurance and CIMB Aviva Takaful for two years.

Huzaime is the Chairman & CEO of Ingenium Advisors, a financial economics advisory established in 2013. He was, prior to that, the Head of Strategic Operations at Malaysia's Employees Provident Fund, where he was deeply engaged in the reform of the Malaysian pension and social security system, which resulted in the private pension system, minimum wages, and minimum retirement age acts.

Huzaime also spent several years serving as a Senior Fellow at the then renowned Institute of Strategic and International Studies (ISIS) Malaysia, reporting directly to its late Chairman, Tan Sri Noordin Sopiee. He was most active in economic, finance, and geostrategic issues. He was engaged heavily in OIC and East Asian matters, and was appointed the Deputy Secretary General for the Malaysian chapter of the Network of East Asian Think-tanks (NEAT). Huzaime speaks, thinks, and writes in 5 languages.

Qualification:
Master of Science, Financial Economics, School of Oriental and African Studies (SOAS), University of London, United Kingdom, 2010; Advanced Certificate in Russian Language from the Russian Centre for Science and Culture, Kuala Lumpur and the Pushkin State Institute of Russian Language, Moscow, Russia, 2009, Bachelor of Science, Economics, Louisiana State University, Baton Rouge Louisiana, United States of America, 1988.

 

Mohamad Safri bin Shahul Hamid

Deputy Chief Executive Officer/ Senior Managing Director
CIMB Islamic (CIMB Investment Bank)

Experience:

2011-present Deputy Chief Executive Officer/ Senior Managing Director (since April 2014) – CIMB Islamic (CIMB Investment Bank)
2009 – 2011 Deputy Chief Executive Officer – MIDF Amanah Investment Bank, Kuala Lumpur
Feb 2008 – Dec 2008 Director – Global Markets & Regional Head, Islamic Structuring (Asia) of Deutsche Bank Dubai International Financial Centre (Dubai)
2003 – 2008 Director & Head – Debt Capital Markets, CIMB Islamic
2000 – 2003 Senior Analyst – Malaysian Rating Corporation Berhad

 

Qualification:
Master of Business Administration (Globalisation) from Maastricht School Of Management, The Netherlands; Bachelor of Accounting (Honours) from International Islamic University Malaysia; Chartered Accountant (CA) with the Malaysian Institute of Accountants (MIA).

 

Alejandro Elias Echegorri Rodriguez

Chief Investment Officer, Principal Global Asset Management Asia
Director, Principal Asset Management Berhad
Director, Principal Asset Management (S) Pte. Ltd.
Director, Principal Islamic Asset Management Sdn Bhd
Director, Principal Asset Management Company Limited
Commissioner, PT-Principal Asset Management
Director, i-Wealth Advisors Sdn Bhd
Director, CIMB Wealth Advisors Berhad

Experience:
He is the Chief Investment Officer for Principal Global Asset Management in Asia and as such he is responsible for the overall investment strategy and the investment process for the group and for overseeing the management of pension, mutual funds and general accounts in the Asia as well as for supporting the overall development of the asset management business in the region. Prior to that Mr. Echegorri was Chief Executive Officer, ASEAN Region of Principal Asset Management Berhad, with responsibilities over Malaysia, Indonesia, Thailand and Singapore. Previously he was the Chief Investment Officer for Principal International in Latin America. He joined Principal in 2003 as Head of Institutional Asset Management and Chief Investment Officer for Principal Financial Group in Mexico. Prior to that, he was the Senior Investment Officer for Citibank’s Pension Fund Business in Latin America. He had also held different positions in the investment area in countries such as Uruguay, Argentina, Chile, Mexico and the United Kingdom.

Qualification:
Degree in Economics from the Universidad Mayor de la Republica, Uruguay and a Master in Economics degree from Universidad Centro de Estudios Macroeconomics de Argentina.

 

* Independent Member.

 

Financial Information

In RM

2016
(Restated)

2017
(Restated)

2018

Paid-up Share Capital 123,474,795 438,000,000 438,000,000
Shareholders’ funds 602,047,744 601,441,290 599,067,403
Revenue 384,332,687 510,404,468 559,532,712
Profit or loss before tax 132,274,298 86,782,377 113,179,961
Profit or loss after tax 122,730,906 79,332,624 97,823,154

 

Total Number of Fund and Total Value of Funds Under Management 

As at 31 July 2019

Total Value of Asset Under Management - RM 56.58 billion

Total Number of Fund 
61 Conventional Unit Trust funds (including 2 Exchange-Traded Funds)
22 Islamic Unit Trust
10 PRS Funds
 

Shariah Adviser

Amanie Advisors Sdn Bhd (''Amanie'')

Amanie is a Shariah advisory, consultancy, training and research and development boutique for institutional and corporate clientele focusing on Islamic financial services. It is a registered Shariah advisory company for Islamic unit trust with the Securities Commission Malaysia (SC). Amanie was established with the aim of addressing the global needs for experts' and Shariah scholars' pro-active input. This will ultimately allow the players in the industry to manage and achieve their business and financial goals in accordance with the Shariah Principles. 

The roles of Shariah Adviser are:
1. Ensure that the Fund is managed and administered in accordance with Shariah Principles.
2. Provide expertise and guidance in all matters relating to Shariah Principles, including on the Fund's deed and prospectus, its structure and investment process, and other operational and administrative matters.
3. Consult with SC where there is any ambiguity or uncertainty as to an investment, instrument, system, procedure and/or process.
4. Act with due care, skill and diligence in carrying out its duties and responsibilities.
5. Responsible for scrutinising the Fund's compliance report as provided by the compliance officer and investment transaction reports provided by, or duly approved by, the Trustee to ensure that the Fund's investments are in line with Shariah Principles.
6. Prepare a report to be included in the Fund's interim and annual reports certifying whether the Fund have been managed and administered in accordance with Shariah Principles for the period concerned.

With more than fourteen (14) years of experience in the advisory role of unit trusts, Amanie has to date managed more than 170 funds locally and globally. 

Datuk Dr. Mohd Daud Bakar 
Executive Chairman, Amanie Advisors Sdn Bhd 

Datuk Dr. Mohd Daud Bakar is the Founder and Executive Chairman of Amanie Group. One of its flagship companies namely Amanie Advisors, is operating in few cities globally. He currently serves as the Chairman of the Shariah Advisory Council at the Central Bank of Malaysia, the Securities Commission of Malaysia, the Labuan Financial Services Authority, the First Abu Dhabi Bank, and Permodalan Nasional Berhad. He is also a Shariah board member of various global financial institutions, including the National Bank of Oman (Oman), Amundi Asset Management (France), Bank of London and Middle East (London), BNP Paribas Najma (Bahrain), Natixis Bank (Dubai), Oasis Asset Management (South Africa), Noor Islamic Bank (Dubai), Morgan Stanley (Dubai), Sedco Capital (Saudi and Luxembourg), and Dow Jones Islamic Market Index (New York) amongst many others.

Prior to this, Datuk was the Deputy Vice-Chancellor at the International Islamic University Malaysia. He received his first degree in Shariah from University of Kuwait in 1988 and obtained his PhD from University of St. Andrews, United Kingdom in 1993. In 2002, he completed his external Bachelor of Jurisprudence at University of Malaya.

Suhaida Mahpot
Chief Executive Officer, Amanie Advisors Sdn Bhd

Suhaida Mahpot joined Amanie in 2008 and was amongst the pioneers in the company. She is a specialist in sukuk advisory and has been partnering with Datuk Dr Mohd Daud Bakar for the last 10 years to advise numerous sukuk locally and internationally. Apart from sukuk advisory, her primarily focus is on Shariah governance, structuring, enhancement and conversion exercises, establishment of Islamic financial entities as well as development of Islamic products. 

She holds a Bachelor of Economics (Islamic Economic and Finance) from International Islamic University Malaysia, and currently pursuing MSc in Islamic Finance with INCEIF. 

 
Designated person for Shariah Matters;

Ahmad Anas Fadzil 
Senior Consultant, Amanie Advisors Sdn Bhd
Ahmad Anas focuses on advising and delivering projects for various global Islamic financial services and Shariah compliant products and instruments. Prior to joining Amanie Advisors, he was attached with Sigur Ros for Turkey’s Project of Century: Turkish Republic North Cyprus Water Supply project as the Project Accountant based in Turkey. 

Ahmad Anas holds a Master of Islamic Finance (MSc) from The Global University of Islamic Finance (INCEIF) and is an accounting graduate from MARA University of Technology (UiTM) and holds a professional certification of Certified Islamic Public Accountant (CIPA) from Accounting and Auditing Organisation for Islamic Financial Institution (AAOIFI). 

Nurul Liyana Kasman
Consultant, Amanie Advisors Sdn Bhd
Nurul Liyana holds Master of Science in Finance from International Islamic University of Malaysia (IIUM) and graduated with a Bachelor of Business Administration (HONS) Islamic Banking from Universiti Teknologi Mara (UiTM). She was previously attached to Amanie Global Technology Sdn Bhd doing market research and evaluation of modules for Islamic core banking system. She then joined Amanie Nexus Sdn Bhd where she was involved in assisting investors and fund managers to identify and monitor Shariah compliance stock for investment. 

Muhammad Hafizuddin
Assistant Consultant, Amanie Advisors Sdn Bhd
Muhammad Hafizuddin graduated with a Bachelor of Business Administration (HONS) Islamic Banking from Universiti Teknologi Mara (UiTM). He was exposed to the financial and Shariah advisory services such as Shariah stock screening, monitoring and compliance review during his internship with Amanie.

 

Sub-Managers

Principal Asset Management (S) Pte. Ltd. (formerly known as CIMB-Principal Asset Management (S) Pte. Ltd) (“Principal Singapore”)

Sub-Manager for:

  • CIMB Islamic DALI Equity Fund (foreign portion)
  • CIMB Islamic DALI Asia Pacific Equity Fund (foreign portion)
  • CIMB Islamic Balanced Fund (foreign portion)
  • CIMB Islamic Asia Pacific Equity Fund (foreign portion)
  • CIMB-Principal Asian Equity Fund
  • CIMB-Principal China-India-Indonesia Equity Fund
  • CIMB-Principal Equity Growth & Income Fund (foreign portion)
  • CIMB-Principal Equity Income Fund (foreign portion)
  • CIMB-Principal Global Titans Fund
  • CIMB-Principal Asia Pacific Dynamic Income Fund
  • CIMB-Principal Asia Pacific Dynamic Growth Fund
  • CIMB-Principal Asia Pacific Dynamic Mixed Asset Fund
  • CIMB-Principal Asia Pacific Target Return Fund 1
  • CIMB-Principal Dynamic Growth Fund

Principal Asset Management Berhad (“Principal Malaysia”) has appointed Principal Singapore as the Sub-Manager for the above funds, and was granted the discretion to manage, realise, invest, reinvest or howsoever deal with the respective portion of these funds allocated to foreign investments in accordance with the investment objectives of each of these funds. The Sub-Manager’s discretionary authority over the foreign investments of these funds is subject to the Guidelines on Unit Trust Funds issued by the Securities Commission Malaysia, the Capital Markets and Services Act 2007 and the internal policies and procedures. 

Principal Malaysia shall be responsible for the review, monitoring and oversight of Principal Singapore in the performance of its duties and obligations in respect of these funds.

Principal Singapore was incorporated in Singapore on 18 May 2006, and has been in the fund management industry for more than ten (10) years. The company is a wholly-owned subsidiary of Principal Malaysia. Principal Singapore is a regional asset management company established in Singapore offering both Islamic and conventional fund management services. The company manages regional investment activities for the Principal Asset Management group of companies. 

Principal Singapore is a licensed fund manager regulated by the Monetary Authority of Singapore. The company is the Fund Manager for the CIMB FTSE ASEAN 40 ETF and several other discretionary accounts and SGD 3.9 billion in Assets Under Management as of 31 December 2018.

Board of Directors of Principal Asset Management (S) Pte. Ltd.

Christopher Leow, Director & Chief Investment Officer  
Alejandro Elias Echegorri Rodriguez, Director  
 

Principal Global Investors, LLC (“PGI”)

Sub-Manager for:

  • CIMB-Principal Millennial Equity Fund 

PGI was appointed as the Sub-Manager for the above fund(s). As the Sub-Manager, PGI is responsible for the investment management function of the fund(s), which granted it with the discretion to manage, realize, invest, reinvest or howsoever deal with the fund(s) in accordance with the investment objective of the fund(s). The Sub-Manager’s discretionary authority over the investments of the fund(s) is subject to the Guidelines on Unit Trust Funds issued by the Securities Commission Malaysia and the internal policies and procedures. Principal Asset Management Berhad shall be responsible for the review, monitoring and oversight of PGI in the performance of its duties and obligations in respect of the fund(s).

PGI is a global investment management leader and wholly-owned subsidiary of the Principal Financial Group® (“The Principal®”), a public company listed on the New York Stock Exchange under ticker symbol PFG. The Principal® was founded in 1879, began managing retirement assets in 1941, and today operates four primary business segments: Principal Global Investors, Retirement and Investor Services, Principal International, and Insurance Solutions.

PGI was formed as a Delaware Limited Liability Company in 1998 and became a registered investment advisor with the U.S. Securities and Exchange Commission on October 26, 1998 bringing together more than six decades of asset management experience of the company into a single organization. There have been no major organizational or ownership changes to the firm since inception.

The multi-boutique strategy of PGI enables it to provide comprehensive investment solutions for its clients and encompasses a growing network of specialized investment boutiques and teams with focused expertise in equities, fixed income, real estate, and asset allocation, as well as currency management, stable value management, and other structured investment strategies.

Principal Global Equities (“PGE”) is a specialized investment management group within PGI. PGE has been investing in global equity markets since 1987 and Principal now manages more than US $675.4 billion of assets, which includes over US $442.4 billion of assets managed by Principal Global Investors as of 31 March 2019. PGE provides client-focused active fundamental strategies and systematic solutions across equity markets worldwide. 

 

Fund Outsourcing Providers

Deutsche Trustee Malaysia Berhad

The Manager has appointed Deutsche Trustee Malaysia Berhad to provide fund administration and fund accounting services. It is a wholly owned subsidiary of Deutsche Bank A.G. has built up an established presence in Kuala Lumpur since 1967.

Deutsche Trustee Malaysia Berhad’s roles and responsibilities include keeping proper records, performing valuations of the investments and fund accounting services, which would encompass the following services: 

  • Maintaining financial accounting record of portfolios including all transactions data, records and investment ledgers; 
  • Monitoring and recording of corporate actions; 
  • Performing cash and securities reconciliation with financial institutions and custodian records; 
  • Performing valuation of the investments and the Fund; 
  • Provision of a reporting package which includes the following: 
  1. Statement of Assets and Liabilities 
  2. Statement of Income and Expenditure 
  3. Portfolio Valuation Report 
  4. Transaction schedules 
  • Providing relevant information to facilitate the preparation of statistical returns for submission to regulatory bodies; 
  • Submitting accounts/accounting records to the appointed external auditors and providing relevant information for disclosure in the annual financial statements (whenever applicable)

HSBC (Malaysia) Trustee Berhad

The manager outsourced its fund valuation function to HSBC (Malaysia) Trustee Berhad (“HSBC”). HSBC is responsible to compute the fund’s NAV based on the method of calculation set out in the fund’s offering document and in accordance with the manager instruction. 

HSBC (Malaysia) Trustee Berhad is a company incorporated in Malaysia since 1937 and registered as a trust company under the Trust Companies Act 1949, with its registered address at 13th Floor, Bangunan HSBC, South Tower, No. 2, Leboh Ampang, 50100 Kuala Lumpur. Since 1993, the Trustee has acquired experience in the administration of trusts and has been appointed as trustee for unit trust funds, exchange traded funds, wholesale funds and funds under private retirement scheme.

Funds outsourced to HSBC (Malaysia) Trustee Berhad;

  • CIMB-Principal Emerging Markets Multi Asset Fund 
  • CIMB-Principal US Mortgage Fund 
  • CIMB-Principal Preferred Securities Fund 
  • CIMB-Principal China Multi Asset Income Fund 
  • CIMB-Principal Global Income Fund 
  • CIMB-Principal China Direct Opportunities Fund 
  • Principal World Selection Conservative Fund 
  • Principal World Selection Moderate Conservative Fund 
  • Principal World Selection Moderate Fund 
  • Principal World Selection Moderate Aggressive Fund 
  • Principal World Selection Aggressive Fund 
  • CIMB Islamic Global Sukuk Fund 

 

 

The compliance officer for Principal Asset Management Berhad is:

Mr. Irwan Bin Md Rejap 
Tel: +603 2084 8987 
Email: irwan.rejap@principal.com.my