Dana Al Munsif - BIMB Investment

BIMB DANA AL-MUNSIF UNAUDITED INTERIM REPORT FOR THE 6 MONTHS ENDED 28 FEBRUARY 2018 LAPORAN INTERIM TIDAK DIAUDIT BAGI TEMPOH 6 BULAN BERAKHIR 28 FEBRUARI 2018

MANAGER: BIMB INVESTMENT MANAGEMENT BERHAD (276246-X)

Table of Content No.

Particulars

Page

1.0

Manager’s Report

3

1.1

Fund Name/ Fund Type/ Fund Category/ Fund Investment Objective/ Fund Performance Benchmark/ Fund Distribution Policy

3

1.2

Performance for the Financial Period from 1 September 2017 to 28 February 2018

4

1.3

Economic and Market Review

7

1.4

Market Outlook and Strategy

11

1.5

Asset Allocation as at 28 February 2018

13

1.6

Other Performance Data for the Financial Period from 1 September 2017 to 28 February 2018

14

1.7

Unit Holdings as at 28 February 2018

15

1.8

Policy on Rebate and Soft Commission

16

2.0

Trustee’s Report

31

3.0

Shariah Committee’s Report

32

4.0

Directors’ Declaration Report

33

5.0

Financial Statements (unaudited)

34

7.0

Corporate Directory

62

2

1.0 Manager’s Report Dear Unit Holders, We are pleased to present the Manager’s report of BIMB Dana Al-Munsif for the financial period from 1 September 2017 to 28 February 2018. 1.1

Fund Name/ Fund Type/ Fund Category/ Fund Investment Objective/ Fund Performance Benchmark/ Fund Distribution Policy

Fund Name

BIMB Dana Al-Munsif

Fund Type

Income and Growth

Fund Category

Balanced

Fund Investment Objective

The principal investment objective of the Fund is to provide a steady and consistent income and capital appreciation of the Units over the medium to long term period. Accordingly, returns shall be in the form of long term capital growth and regular income distribution to the Unit Holders. Note: Any material change to the investment objective of the Fund would require Unit Holders’ approval.

Fund Performance Benchmark

60:40 ratio of the FBM Emas Shariah Index and 12-month Term Deposit-i Tawarruq (TDT-i) of Bank Islam.

Fund Distribution Policy

The Fund intends to pay out annual income distribution to Unit Holders if sufficient investment income has been accumulated during the year.

3

1.2

Performance for the Financial Period from 1 September 2017 to 28 February 2018

1.2.1

Performance review for BIMB Dana Al-Munsif For the 6 months period under review, BIMB Dana Al-Munsif (“the Fund”) registered a return of -2.84% as compared to its Benchmark’s return of 3.89%, thus underperformed the Benckmark’s return by -6.73%. The selected performance benchmark for the Fund is 60:40 ratio of the FBM Emas Shariah Index and 12-month Bank Islam Term Deposit-i Tawarruq (TDT-i) rates. From its commencement on 27 December 2001 to 28 February 2018, the Fund registered a total return of 102.83% as compared to its Benchmark’s return of 119.65%, thus underperformed the Benchmark’s return by 16.82%. Our strategy has consistently been to remain focus on well-established companies that could potentially pay sustainable dividends, have prospects for earnings growth and capital appreciation. As at 28 February 2018, the Fund has 59.7% exposure to equities and 40.3% exposure to cash, Islamic debt securities and money market instruments. Thus far, the Fund continues to be managed in line with its stated objective to provide dividends and capital growth for investors. The total Net Asset Value (NAV) of the Fund is RM10.67 million whereas the NAV per unit of Al-Munsif is RM0.4723. The Fund did not declare any interim distribution. For the financial period under review, there were no significant changes to the state of affairs of the Fund and no circumstances that materially affect the interest of unit holders that have taken place up to the date of this Manager’s report.

4

1.2.2

Total return and average total return for the respective financial period ended 28 February 2018

Period

6-Months (Sep’17 – Feb’18)

1-Year (Mar’17 – Feb’18)

3-Year (Mar’15 - Feb’18)

5-Year (Mar’13 – Feb’18)

1.2.3

BIMB Dana Al-Munsif Total Average Return Total Return (%) (%)

Benchmark Total Average Return Total Return (%) (%)

-2.84

-5.68

3.89

7.78

8.28

8.28

6.41

6.41

-5.61

-1.87

5.83

1.94

3.69

0.74

20.21

4.04

Total return for the last 5 financial years Total Return Financial Years

BIMB Dana Al-Munsif (%)

Benchmark (%)

31 August 2017

12.42

2.92

31 August 2016

0.13

6.58

31 August 2015

-13.15

-6.90

31 August 2014

5.14

7.14

31 August 2013

3.50

4.96

5

Figure 1: Movement of the Fund versus the Benchmark

Note: Data Source Data verified by Benchmark

: BIMB Investment Management Berhad : Novagni Analytics & Advisory Sdn. Bhd. : 60:40 ratio of the FBM Emas Shariah Index and 12-month Bank Islam Term Deposit-i Tawarruq (TDT-i) rates.

Notes: 1.

Total Return of the Fund has been verified by Novagni Analytics & Advisory Sdn. Bhd. (363145-W)

2.

Average Total Return is derived by this formula: Total Return Number of Years under Review

Past performance is not necessarily indicative of future performance and unit prices and investment returns may go down, as well as up.

6

1.3

Economic and Market Review

1.3.1

Global 

United States (US) Gross Domestic Product (GDP) grew by 2.9% in the fourth quarter of 2017 as compared to 3.2% growth in the third quarter of 2017 and 3.1% in the second quarter of 2017. The GDP result was driven by improvements in consumer spending, exports and government spending. US inflation rate remained at 2.2% in February 2018 and was unchanged compared to September 2017. US unemployment rate continues to improve to 4.1% in February 2018 as compared to 4.2% in September 2017.



The Euro zone economy grew by 0.6% in the fourth quarter of 2017 slightly lower from the 0.7% in the third quarter 2017 and 0.7% in the second quarter of 2017 . Growth for the quarter was driven by exports that were supported by the pickup in the global economy. Unemployment in the Euro Zone has fallen to 8.5% in February 2018 as compared to 8.9% in September 2017, the lowest level in 9 years against a backdrop of ultra-low interest rates implemented by the European Central Bank (ECB) to boost economic activity.



The Chinese economy grew by 6.8% for the fourth quarter of 2017, unchanged compared to the third quarter of 2017. During the fourth quarter, the economy’s industrial output and private consumption rebounded, aided by a robust property market and strong export growth. Overall, major global economies appear to be recovering in tandem while escaping the potential of a global downturn.

(Source: Bank Negara Malaysia, Bloomberg and RHB Research Institute Sdn Bhd) Local 

The Malaysian economy grew at 5.9% in the fourth quarter of 2017 as compared to 6.2% in the third quarter 2017 and 5.8% in the second quarter 2017. The GDP result for the period was focused on broad based growth particularly in the services, manufacturing, agriculture and exports sectors. Malaysia’s inflation decreased to 1.4% in February 2018 as compared to 4.3% in September 2017 as a result of lower transport cost during the quarter.



Bank Negara Malaysia has decided to raise the Overnight Policy Rate (OPR) at 3.25% at the Monetary Policy Committee (MPC) meeting on 25 January 2018. The degree of monetary accommodativeness is consistent with the policy stance to ensure that the domestic economy continues on a steady growth path amid lower inflation. Bank Negara Malaysia's (BNM) international reserves amounted to USD103.7 billion as at 28 February 2018. The reserves position is sufficient to finance 7.2 months of retained imports and is 1.1 times the short-term external debt.

(Source: Bloomberg, Department of Statistics Malaysia and Bank Negara Malaysia)

7

1.3.2

Market Review Equity FTSE Bursa Malaysia Emas Shariah Index (“FBM Shariah”) commenced the period under review at 12,749.09 points and rose to the highest level of 13,898.17 points on 9 January 2018. It closed the period under review at 13,427.51 points on 28 February 2018. For the period under review, the FBM Shariah increased by 678.42 points or 5.32%. Among the key factors that contributed to the movement of the index are highlighted below: 

In August 2017, the North Korea and U.S dispute escalated to new heights post of North Korea’s missile testing exercise that had prompted US President Trump to issue a retaliation warning. However, markets were quick to discount the negative news and sentiment recovered subsequently as the Fed announced of its quantitative tightening measures. The Fed plans to retire USD3.6 trillion or 50% of its quantitative easing money in the market in three years time along with more rate hikes in the short to medium term horizon.



In December 2017, extensive buying of heavyweight stocks such as Sime Darby Plantation, Maybank and DiGi on the domestic index is in-line with the upward momentum of regional peers. Benchmark index was supported by local and foreign funds towards the close of trading in December 2017, with the ringgit strengthening against the US dollar.



In February, newly appointed Federal Reserve Chairman Jerome Powell indicated further rising of U.S. interest rates to four times this year as the world’s largest economy may be shifting gear to faster growth and declining unemployment. Also during the month, US Commerce Department recommends steep tariffs on foreign steel and aluminum while declaring these imports as national security threat. Trade sanctions between U.S. and China will potentially worsen global trade issues and hurt the recovering momentum of the world economy.

(Source: Bloomberg and Bank Negara Malaysia)

8

Bond Market and Money Market Global For the period under review, US Treasuries (UST) yields spiked between 4098bps across most tenure; spurred by bigger than expected increases in wages and consumer prices. The front-end rates i.e. 3Y UST rose 98bps closing at 2.42% buoyed by expectations of Fed tightening in March Federal Open Market Committee (FOMC) whilst fears of inflationary pressures has also weighed on longer-maturity yields. The 10-year, which depicts as a benchmark for US mortgage rates, borrowing costs for municipalities and also inflation indication, saw the most volatility as it oscillated between a low of 2.12% and a high of 2.87%.

Figure 4: US Treasury Yields

US TREASURY (UST) YIELDS 28/2/2018

31/8/2017

3.20% 2.80%

2.87%

3.02%

3.13%

2.65%

2.70% 2.42%

2.73% 2.47%

2.20% 2.12% 1.95%

1.70% 1.44%

1.70%

TENURE

Source: US Treasury Department, 28 February 2018

9

UST-30Y

UST-20Y

UST-10Y

UST-5Y

UST-7Y

1.20% UST-3Y



YIELD

a)

b)

Local 

The Malaysian Government Securities (MGS) and Government Investment Issue (GII) dominated the local bond market activities with traded volume of RM344.05 billion for the period under review. There was commendable interest for MYR government bonds in February although foreign holdings of total Malaysian debt securities dropped for the first time in four months. The foreign holdings of RM183.9 billion in MGS and GII represent 27.5% of total outstanding MYR government bonds. Table 1: Sukuk/ Islamic Bond Yields 28 February 2018 (%)

30 August 2017 (%)

Change * (bps)

GII

3.73

3.54

19.0

AAA Corporate

4.24

4.16

8.0

GII

3.94

3.76

18.0

AAA Corporate

4.44

4.29

15.0

GII

4.08

3.98

10.0

AAA Corporate

4.59

4.44

15.0

GII

4.26

4.06

20.0

AAA Corporate

4.78

4.63

15.0

Tenure/Date 3-Year Bonds

5-Year Bonds

7-Year Bonds

10-Year Bonds

Source: Bond Pricing Agency Malaysia (BPAM), 28 February 2018

10

Figure 5: Overnight Policy Rate (OPR) OVERNIGHT POLICY RATE (OPR) 3.30%

28-Feb-2018, 3.25% 3.25%

3.20%

RATE

3.15%

3.10%

3.05%

3.00%

2.95%

Jan-18

Feb-18

Dec-17

Oct-17

Nov-17

Sep-17

Jul-17

Aug-17

Jun-17

Apr-17

May-17

Mar-17

Jan-17

Feb-17

Dec-16

Oct-16

Nov-16

Sep-16

Jul-16

Aug-16

Jun-16

Apr-16

May-16

Mar-16

Jan-16

Feb-16

Dec-15

2.90%

DATE

Source: Bank Negara Malaysia (BNM), 28 February 2018 1.4

Market Outlook and Strategy a)

•

•

Equity For 2018, the Malaysian equities are expected to catch-up in terms of performance, driven by strong GDP growth, corporate earnings recovery, national 2018 budget stimulus to spur consumption and growth, Ringgit’s continued performance against the US Dollar as well as the possibility of recovery in global crude oil price. Overall we are positive on the construction sector that will be the beneficiary from key project such as East Coast Rail Line (ECRL), Mass Rapid Transit Line 3 (MRT3) and the Kuala Lumpur-Singapore High Speed Rail (HSR). Subsequently, the export and health care sector will also be benefiting from improving global economic recovery and the US GDP growth performance. Consequently, as Malaysia’s economic performance has responded well to the pick-up in global trade, it is anticipated that, the stronger external demand is expected to spill over and lift domestic demand growth going forward.

11

b)

•



Sukuk Market and Money Market BNM raised the OPR by 25bps to 3.25% at the first MPC meeting held on 25 January 2018. This was Malaysia’s first hike since July 2014. The statement accompanying the decision remained hawkish and policymakers pointed towards brighter prospects for global growth and domestic demand. It is believed that the BNM will not rush for a second hike given the erosion of inflationary pressures from peak in recent months. Our money market strategy is to invest in money market investments to maximize return while providing liquidity and regular income for investors.

12

1.5

Asset allocation as at 28 February 2018 and as at 31 August of 2017, 2016 and 2015 28.2.2018 (%)

31.8.2017 (%)

31.8.2016 (%)

31.8.2015 (%)

-

-

1.18

0.75

11.47

1.52

1.74

0.37

-

-

2.31

1.97

15.19

20.08

14.77

4.77

Infrastructure

-

-

2.84

-

Plantation

-

-

3.70

2.41

Properties

-

-

5.52

3.83

Technology

17.72

35.60

10.07

-

Trading and services

14.76

1.55

18.07

9.93

0.59

-

-

-

59.73

58.75

60.20

24.03

37.53

22.40

30.72

33.88

2.74

18.85

9.08

42.09

100.00

100.00

100.00

100.00

BIMB Dana Al-Munsif Investment in Quoted Securities Construction Consumer products Finance Industrial products

Warrant

INVESTMENT IN ISLAMIC DEBT SECURITIES: CASH AND SHORT TERM INVESTMENTS:

13

1.6

Other Performance Data for the 6 months ended 28 February 2018 and three financial years ended 31 August 6 months ended 28.2.2018

31.8.2017

31.8.2016

31.8.2015

0.5144

0.4901

0.4654

0.5189

0.4675

0.4219

0.4324*

0.4407

Total NAV (RM)

10,674,392

17,964,710

31,310,926

36,519,502

Units in Circulation (UIC)

22,600,806

36,956,669

72,404,772

82,037,110

0.4723

0.4861

0.4324*

0.4452

(b)

-2.84

12.42

-2.88

-13.15

(c)

-

-

3.01

-

-2.84

12.42

0.13

-13.15

Gross Distribution per Unit (Sen)

-

-

1.34

-

Net Distribution per Unit (Sen)

-

-

1.34

-

-

-

0.4458

-

-

-

0.4324*

-

-

-

30 August 2016

-

1.95

1.86

1.79

1.71

1.13

1.18

14.51

7.52

BIMB Dana Al-Munsif Unit Prices (RM) Highest NAV per unit for the period/year Lowest NAV per unit for the period/year Net Asset Value (NAV) and Units in Circulation (UIC) as at the End of the Period/ Year

NAV per unit (RM) Return of Fund (%) Capital Growth (%) Income Return (%)

(a)

Return of Fund (%)

NAV per unit before distribution (RM) NAV per unit after distribution (RM) Date of distribution Management Expense Ratio (d) (%) Portfolio Turnover Ratio (e) (times)

* The price and net asset value per unit are ex-distribution.

14

Note:

1.7

a)

Return of the Fund

=

b)

Capital Growth

= Total Return of the Fund – Income Return

c)

Income Return

= {Income Distribution per Unit / NAV per Unit at 31 August 2017} x 100

d)

Management Expenses Ratio

= It is the total management expenses expressed as an annual percentage of the Fund’s average Net Asset Value.

e)

Portfolio Turnover Ratio

= It represents the average of the total acquisitions and disposals of the investment in the Fund for the annual period over the average Net Asset Value of the Fund calculated on a daily basis.

NAV per unit (end of period) - 1 NAV per unit (beginning of period)

Unit Holdings as at 28 February 2018 BIMB Dana Al-Munsif

Size of Holdings

No. of Unit Holders

No. of Units Held

No.

%

Units

%

5,000 and below

933

85.13

945,283.47

4.18

5,001 to 10,000

70

6.39

469,087.41

2.07

10,001 to 50,000

72

6.57

1,283,248.47

5.68

50,001 to 500,000

20

1.82

2,460,786.42

10.89

1

0.09

17,442,399.99

77.18

Units Held by Holders

1,096

100.00

22,600,805.76

100.00

Unit Held by Manager

0

0.00

0.00

0.00

1,096

100.00

22,600,805.76

100.00

500,001 and above *

Grand Total for the Fund

* included under this category are nominee accounts

15

1.8

Policy on Rebate and Soft Commission Any stock broking rebates received by the Manager will be directed to the account of the Fund. Any soft commissions received from the broker which are in the form of research and advisory services that assist in the decision-making process relating to the Fund’s investment may be retained by the Manager. The Manager did not receive any rebate and soft commission from broker during the period under review. For and on behalf of The Manager BIMB INVESTMENT MANAGEMENT BERHAD Date: 25 April 2018

16

1.0 Laporan Pengurus Para Pemegang Unit yang Dihormati, Kami dengan sukacitanya membentangkan laporan pengurus BIMB Dana Al-Munsif bagi tempoh kewangan bermula 1 September 2017 hingga 28 Februari 2018.

1.1

Nama Dana/ Jenis Dana/ Kategori Dana/ Objektif Pelaburan Dana/ Penanda Aras Dana/ Polisi Agihan Dana

Nama Dana

BIMB Dana Al-Munsif

Jenis Dana

Pendapatan dan Pertumbuhan

Kategori Dana

Seimbang

Objektif Pelaburan Dana

Objektif utama pelaburan Dana adalah untuk menyediakan pendapatan yang stabil serta konsisten dan peningkatan modal Unit dalam jangkamasa sederhana hingga jangkamasa panjang. Sehubungan dengan itu, pulangan adalah dalam bentuk pertumbuhan modal jangkamasa panjang dan pengagihan pendapatan yang tetap kepada Pemegang Unit. Nota: Sebarang perubahan ketara kepada objektif pelaburan Dana memerlukan kelulusan daripada Pemegang Unit.

Penanda Aras Dana

Nisbah 60:40 daripada Indeks FBM Emas Shariah dan kadar 12-bulan Deposit Bertempoh-i Tawarruq (TDT-i) Bank Islam.

Polisi Agihan Dana

Dana ini bertujuan untuk membayar agihan pendapatan terkumpul tahunan kepada Pemegang Unit sekiranya pendapatan pelaburan sepanjang tahun adalah mencukupi.

17

1.2

Pencapaian bagi Tempoh Kewangan bermula 1 September 2017 sehingga 28 Februari 2018

1.2.1

Kajian Pencapaian bagi BIMB Dana Al-Munsif Bagi tempoh 6 bulan dalam kajian, BIMB Dana Al-Munsif (“Dana”) mencatat pulangan sebanyak -2.84% berbanding pulangan penanda aras sebanyak 3.89%, sekaligus memperlihatkan pulangannya yang lebih rendah sebanyak -6.73%. Penanda aras terpilih prestasi Dana adalah berdasarkan kepada nisbah 60:40 Indeks Syariah Emas FBM dan kadar 12–bulan Deposit Bertempoh-i Tawarruq (TDT-i) Bank Islam. Sejak penubuhannya pada 27 Disember 2001 hingga 28 Februari 2018, Dana mencatatkan pulangan berjumlah 102.83% berbanding penanda aras yang meraih 119.65%, oleh yang demikian mencatatkan pencapaian Dana yang lebih rendah sebanyak 16.82%. Strategi kami secara konsisten adalah memberi tumpuan kepada syarikat-syarikat yang mantap dan berpotensi untuk membayar dividen secara berkekalan selain mempunyai prospek pertumbuhan pendapatan dan peningkatan modal. Setakat pada 28 Februari 2018, Dana mempunyai pendedahan sebanyak 59.7% dalam ekuiti dan 40.3% dalam tunai, sekuriti hutang Islam dan instrumen pasaran wang. Setakat ini, Dana kekal diuruskan sejajar dengan matlamatnya untuk menyediakan dividen dan pertumbuhan modal kepada para pelabur. Jumlah Nilai Aset Bersih (NAB) Dana adalah RM10.67 juta manakala NAB seunit Al-Munsif ialah RM0.4723. Dana tidak mengisytiharkan sebarang pengagihan interim. Bagi tahun kewangan dalam kajian, tidak terdapat sebarang perubahan ketara dalam hal ehwal pengurusan Dana dan tidak berlaku sebarang keadaan yang boleh menjejaskan kepentingan para pemegang unit sehingga tarikh Laporan Pengurus disediakan.

18

1.2.2

Jumlah pulangan dan purata jumlah pulangan bagi setiap tempoh berakhir 28 Februari 2018

Tempoh

6-Bulan (Sep’17 – Feb’18)

1-Tahun (Mac’17 – Feb’18)



1.2.3

BIMB Dana Al-Munsif Purata Jumlah Jumlah Pulangan Pulangan (%) (%)

Penanda Aras Purata Jumlah Jumlah Pulangan Pulangan (%) (%)

-2.84

-5.68

3.89

7.78

8.28

8.28

6.41

6.41

-5.61

-1.87

5.83

1.94

3.69

0.74

20.21

4.04

Jumlah pulangan tahunan bagi 5 tahun kewangan yang lalu Jumlah Pulangan Tahun Kewangan

BIMB Dana Al-Munsif (%)

Penanda Aras (%)

31 Ogos 2017

12.42

2.92

31 Ogos 2016

0.13

6.58

31 Ogos 2015

-13.15

-6.90

31 Ogos 2014

5.14

7.14

31 Ogos 2013

3.50

4.96

19

Rajah 2: Pergerakan Dana Berbanding Penanda Aras

Nota: Sumber Data : BIMB Investment Management Berhad Data disahkan oleh : Novagni Analytics & Advisory Sdn. Bhd. Penanda Aras : Nisbah 60:40 Indeks FBM Emas Shariah dan kadar 12bulan Deposit Bertempoh-i Tawarruq (TDT-i) Bank Islam.

Nota: 1.

Jumlah Pulangan telah disahkan oleh Novagni Analytics & Advisory Sdn. Bhd. (363145-W)

2.

Jumlah Pulangan Purata adalah berpandukan formula berikut: Jumlah Pulangan Bilangan Tahun Bawah Kajian

Prestasi tahun-tahun sebelum ini tidak semestinya menjadi petunjuk prestasi masa depan dan harga unit serta pulangan pelaburan mungkin turun dan naik.

20

1.3

Ekonomi dan Kajian Pasaran

1.3.1

Global 

Keluaran Dalam Negara Kasar (KDNK) Amerika Syarikat (AS) berkembang sebanyak 2.9% pada suku keempat 2017 berbanding pertumbuhan 3.2% pada suku ketiga 2017 dan 3.1% pada suku kedua pada tahun yang sama. Keputusan KDNK didorong oleh peningkatan perbelanjaan pengguna, peningkatan eksport dan petambahan perbelanjaan kerajaan. Kadar inflasi AS pula kekal pada 2.2% pada Februari 2018 dan tidak berubah berbanding September 2017. Kadar pengangguran AS bertambah baik kepada 4.1% pada Februari 2018 berbanding 4.2% pada September 2017.



Ekonomi zon Euro berkembang sebanyak 0.6% pada suku keempat 2017, merosot sedikit berbanding 0.7% pada suku ketiga 2017 dan 0.7% pada suku kedua tahun yang sama. Pertumbuhan pada suku tahun berkenaan didorong oleh eksport yang disokong oleh peningkatan ekonomi global. Kadar pengangguran di zon Euro bertambah baik kepada 8.5% pada Februari 2018 berbanding 8.9% pada September 2017, paras terendah dalam tempoh 9 tahun di sebalik kadar faedah yang amat rendah yang dilaksanakan oleh Bank Pusat Eropah (ECB) untuk menggalakkan aktiviti ekonomi .



Ekonomi China meningkat sebanyak 6.8% pada suku keempat 2017, kadarnya kekal seperti mana pada suku ketiga 2017. Sepanjang suku keempat, ekonominya menyaksikan pengeluaran industri dan penggunaan swasta melonjak semula, dibantu oleh pasaran hartanah yang berkembang pesat dan pertumbuhan eksport yang kukuh. Secara keseluruhannya, ekonomi negaranegara utama dunia kelihatan mengalami pemulihan secara selari sambil berjaya mengelakkan daripada kemungkinan berlakunya kelembapan ekonomi.

(Sumber: Bank Negara Malaysia, Bloomberg dan RHB Research Institute Sdn Bhd) Dalam Negara 

Ekonomi Malaysia berkembang pada kadar 5.9% pada suku keempat 2017 berbanding 6.2% pada suku tahun ketiga 2017 dan 5.8% pada suku kedua 2017. Pertumbuhan KDNK bagi tempoh berkenaan berlaku secara menyeluruh terutamanya dalam sektor perkhidmatan, perkilangan, pertanian dan eksport. Kadar inflasi Malaysia menurun kepada 1.4% pada Februari 2017 berbanding 4.3% pada September 2017 didorong oleh kos pengangkutan yang lebih rendah pada suku tersebut.

21



Bank Negara Malaysia (BNM) memutuskan untuk menaikan Kadar Dasar Semalaman (OPR) pada paras 3.25% dalam mesyuarat Jawatankuasa Dasar Monetari (MPC) yang diadakan pada 25 Januari 2018. Tahap keupayaan monetari adalah selaras dengan pendirian dasar untuk memastikan ekonomi domestik terus berada pada landasan pertumbuhan yang baik di tengah-tengah inflasi yang lebih rendah. Rizab antarabangsa Bank Negara Malaysia berjumlah AS$103.7 bilion setakat pada 28 Februari 2018. Kedudukan rizab ini mencukupi untuk membiayai import tertangguh selama 7.2 bulan dan hutang luar negara jangka pendek sebanyak 1.1 kali.

(Sumber: Bloomberg, Jabatan Statistik Malaysia dan Bank Negara Malaysia) 1.3.2

Kajian Pasaran Ekuiti Indeks Syariah Emas FTSE Bursa Malaysia ("FBM Syariah") memulakan tempoh dalam kajian pada paras 12,749.09 mata dan meningkat ke paras tertinggi 13,898.17 mata pada 9 Januari 2018. Ia mengakhiri tempoh berkenaan dengan mencapai paras 13,427.51 mata pada 28 Februari 2018. Bagi tempoh yang dikaji, FBM Syariah meningkat sebanyak 678.42 mata atau 5.32%. Antara faktor utama yang menyumbang kepada pergerakan indeks ini adalah dinyatakan di bawah: 

Pada Ogos 2017, pertikaian antara Korea Utara dengan AS semakin memuncak selepas Korea Utara melakukan ujian peluru berpandu sehingga Presiden Trump mengeluarkan amaran untuk bertindak balas. Walau bagaimanapun, pasaran bertindak cepat untuk tidak mengendahkan berita buruk tersebut dan sentimen kemudiannya pulih berikutan pengumuman Rizab Persekutuan AS akan memulakan langkah pengetatan kuantitatifnya. Rizab Persekutuan AS bercadang untuk mengurangkan program kelonggaran kuantitatif sebanyak AS$3.6 trilion atau 50% daripada wangnya dalam pasaran bagi tempoh tiga tahun akan datang selain melakukan lebih banyak kenaikan kadar faedah dalam jangka masa pendek ke sederhana.



Pada Disember 2017, pembelian saham-saham bermodal besar secara besarbesaran seperti Sime Darby Plantation, Maybank dan DiGi dalam indeks domestik adalah selari dengan kenaikan momentum yang dialami oleh pasaran-pasaran serantau. Indeks penanda aras disokong oleh dana-dana tempatan dan asing menjelang penutupan urus niaga pada Disember 2017, dengan nilai Ringgit menjadi lebih kukuh berbanding Dolar Amerika Syarikat.

22



Pada Februari, Pengerusi Rizab Persekutuan yang baru dilantik Jerome Powell membayangkan berlakunya lagi peningkatan kadar faedah AS sehingga empat kali tahun ini memandangkan negara kuasa besar ekonomi dunia itu mungkin menyaksikan pertumbuhan lebih pantas dan kadar pengangguran yang menurun. Dalam bulan berkenaan juga, Jabatan Perdagangan AS mencadangkan tarif yang tinggi dikenakan terhadap keluli dan aluminium keluaran asing apabila import barangan ini diisytiharkan mengancam keselamatan negara itu. Sekatan perdagangan antara AS dan China mempunyai potensi untuk memburukkan lagi kemelut perdagangan dunia dan menjejaskan momentum pemulihan ekonomi sejagat.

Pasaran Bon dan Pasaran Wang a) 

Global Untuk tempoh kajian, hasil Perbendaharaan AS (UST) meningkat antara 40-98 mps sepanjang tempoh pegangan; didorong oleh kenaikan gaji dan harga pengguna yang lebih tinggi berbanding jangkaan. Kadar hadapan iaitu 3Y UST meningkat 98mps untuk ditutup pada 2.42% disokong oleh jangkaan pengetatan dasar oleh Rizab Persekutuan pada Jawatankuasa Pasaran Terbuka Persekutuan (FOMC) bulan Mac ketika terdapat kebimbangan terhadap tekanan inflasi juga memberikan kesan kepada hasil yang mempunyai tempoh matang lebih panjang. Tempoh matang selama 10 tahun yang digambarkan sebagai satu penanda aras kadar gadai janji AS, kos pinjaman majlis perbandaran dan juga petunjuk inflasi, mengalami keadaan paling tidak menentu apabila ia berada antara paras rendah 2.12% hingga paras tinggi 2.87%.

23

Rajah 4: Kadar Pulangan Perbendaharaan AS

Sumber: Jabatan Perbendaharaan AS, 28 Februari 2018

b) 

Dalam Negara Sekuriti Kerajaan Malaysia (MGS) dan Terbitan Pelaburan Kerajaan (GII) menguasai aktiviti dalam pasaran bon tempatan dengan dagangan berjumlah RM344.05 bilion diniagakan bagi tempoh kajian. Terdapat minat yang memberangsangkan bagi bon MYR kerajaan pada bulan Februari walaupun pegangan asing bagi keseluruhan jumlah sekuriti hutang Malaysia jatuh buat kali pertamanya bagi tempoh empat bulan. Pegangan asing sebanyak RM183.9 bilion dalam MGS dan GII mewakili 27.5% daripada baki jumlah keseluruhan bon MYR kerajaan.

24

Jadual 1: Kadar Pulangan Sukuk/ Bon Islam 28 Februari 2018 (%)

30 Ogos 2017 (%)

Perubahan * (bps)

GII

3.73

3.54

19.0

Korporat AAA

4.24

4.16

8.0

GII

3.94

3.76

18.0

Korporat AAA

4.44

4.29

15.0

GII

4.08

3.98

10.0

Korporat AAA

4.59

4.44

15.0

GII

4.26

4.06

20.0

Korporat AAA

4.78

4.63

15.0

Tempoh/ Tarikh Bon 3 Tahun

Bon 5 Tahun

Bon 7 Tahun

Bon 10 Tahun

Sumber: Agensi Penetapan Harga Bon Malaysia (BPAM), 28 Februari 2018 Rajah 5: Kadar Polisi Semalaman (OPR)

Sumber: Bank Negara Malaysia (BNM), 28 Februari 2018 25

1.4

Tinjauan Pasaran dan Strategi a)

•

•

b)

•

•

Ekuiti Bagi 2018, ekuiti Malaysia dijangka kembali mencatat peningkatan dari segi prestasi, didorong oleh pertumbuhan KDNK yang kukuh, pemulihan pendapatan korporat, rangsangan belanjawan negara 2018 untuk menggalakkan penggunaan dan pertumbuhan, prestasi baik berterusan Ringgit berbanding Dolar AS dan juga kemungkinan pemulihan harga minyak mentah global. Secara keseluruhan, kami mempunyai pandangan yang positif terhadap sektor pembinaan yang akan menerima manfaat daripada pelaksanaan projek-projek utama seperti Laluan Pantai Timur (ECRL), Laluan Ketiga Transit Laluan Massa (Mass Rapid Transit Line 3 (MRT3)) dan Kereta Api Berkelajuan Tinggi Kuala Lumpur-Singapura (HSR). Sektor eksport dan penjagaan kesihatan juga akan mendapat manfaat daripada pemulihan ekonomi global dan prestasi pertumbuhan KDNK AS. Berikutan itu, memandangkan prestasi ekonomi Malaysia memberikan tindak balas yang baik terhadap peningkatan perdagangan global, permintaan luar yang dijangka lebih kukuh diunjur memberi kesan dan meningkatkan pertumbuhan permintaan domestik dalam melangkah ke hadapan. Pasaran Sukuk dan Pasaran Wang BNM menaikkan kadar dasar semalaman (OPR) sebanyak 25mps kepada 3.25% dalam mesyuarat MPC yang pertama yang diadakan pada 25 Januari 2018. Ini adalah kenaikan pertama dilakukan oleh Malaysia sejak Julai 2014. Berdasarkan kenyataan yang dikeluarkan, peningkatan itu dilakukan kerana para pembuat dasar menjangkakan prospek yang lebih cerah dalam pertumbuhan global dan permintaan domestik. BNM dijangka tidak akan tergesa-gesa untuk melakukan kenaikan kedua memandangkan terdapat pengurangan tekanan inflasi daripada paras tertingginya dalam beberapa bulan kebelakangan ini. Strategi pasaran wang kami adalah untuk melabur dalam pasaran wang dengan tujuan memaksimumkan pulangan sambil menyediakan kecairan dan pendapatan konsisten kepada para pelabur.

26

1.5

Peruntukan aset pada 28 Februari 2018 dan pada 31 Ogos 2017, 2016 dan 2015 28.2.2018 (%)

31.8.2017 (%)

31.8.2016 (%)

31.8.2015 (%)

-

-

1.18

0.75

11.47

1.52

1.74

0.37

-

-

2.31

1.97

15.19

20.08

14.77

4.77

Infrastruktur

-

-

2.84

-

Perladangan

-

-

3.70

2.41

Hartanah

-

-

5.52

3.83

Teknologi

17.72

35.60

10.07

-

Perdagangan dan perkhidmatan

14.76

1.55

18.07

9.93

0.59

-

-

-

59.73

58.75

60.20

24.03

37.53

22.40

30.72

33.88

2.74

18.85

9.08

42.09

100.00

100.00

100.00

100.00

BIMB Dana Al-Munsif Pelaburan Sekuriti Tersiarharga: Pembinaan Barangan pengguna Kewangan Barangan industri

Waran

PELABURAN DALAM SEKURITI HUTANG SECARA ISLAM: TUNAI DAN PELABURAN JANGKA PENDEK:

27

1.6

Lain-Lain data prestasi bagi tempoh 6 bulan berakhir 28 Februari 2018 dan tiga tahun kewangan berakhir 31 Ogos 6 bulan berakhir 28.2.2018

31.8.2017

31.8.2016

31.8.2015

0.5144

0.4901

0.4654

0.5189

0.4675

0.4219

0.4324*

0.4407

Jumlah NAB (RM)

10,674,392

17,964,710

31,310,926

36,519,502

Unit Dalam Edaran (UDE)

22,600,806

39,956,669

72,404,772

82,037,110

0.4723

0.4861

0.4324*

0.4452

-2.84

12.42

-2.88

-13.15

-

-

3.01

-

-2.84

12.42

0.13

-13.15

Agihan Kasar seunit (Sen)

-

-

1.34

-

Agihan Bersih seunit (Sen)

-

-

1.34

-

-

-

0.4458

-

-

-

0.4324*

-

-

-

30 Ogos 2016

-

1.95

1.86

1.79

1.71

1.13

1.18

14.51

7.52

BIMB Dana Al-Munsif Harga Unit (RM) NAB tertinggi seunit dalam tempoh/tahun NAB terendah seunit dalam tempoh/tahun Nilai asset Bersih (NAB) dan Unit Dalam Edaran (UDE) pada Akhir Tempoh/ Tahun

NAB seunit (RM) Jumlah Pulangan Dana (%) Pertumbuhan Modal (%)

(a)

(b)

Pulangan Pendapatan (%)

(c)

Jumlah Pulangan Dana (%)

Nilai Aset Bersih sebelum Pengagihan (RM) Nilai Aset Bersih selepas Pengagihan (RM) Tarikh Pengagihan Nisbah Perbelanjaan (d) Pengurusan (%) Nisbah Pusing Ganti Portfolio (e) (Kali) (%)

* Harga NAB selepas pengagihan pendapatan.

28

Nota:= Harga seunit (pada akhir tempoh) - 1 Harga seunit (pada awal tempoh)

a)

Pulangan ke atas Dana

b)

Penambahan Modal

= Pulangan Ke atas Dana – Pulangan Pendapatan

c)

Pulangan Pendapatan

= {Pengagihan Pendapatan Se Unit / NAB se unit pada 31 Ogos 2017} x 100

d)

Nisbah Perbelanjaan Pengurusan

= Ia dikira dengan mengambil jumlah perbelanjaan pengurusan sepertimana yang dinyatakan sebagai peratusan tahunan daripada jumlah purata Nilai Aset Bersih Dana.

e)

Nisbah Pusing Ganti Portfolio

= Ia dikira dengan mengambil purata jumlah perolehan dan pelupusan pelaburan dalam Dana bagi tempoh tahunan dibahagi dengan purata Nilai Aset Bersih Dana yang dikira pada asas harian.

1.7

Pecahan Pegangan Unit pada 28 Februari 2018 BIMB Dana Al-Munsif

Saiz Dipegang

Bilangan Pemegang Unit

Bilangan Pegangan Unit

Bilangan

%

Unit-unit

%

5,000 dan ke bawah

933

85.13

945,283.47

4.18

5,001 hingga 10,000

70

6.39

469,087.41

2.07

10,001 hingga 50,000

72

6.57

1,283,248.47

5.68

50,001 hingga 500,000

20

1.82

2,460,786.42

10.89

500,001 dan ke atas *

1

0.09

17,442,399.99

77.18

Unit yang dipegang oleh Pemegang unit

1,096

100.00

22,600,805.76

100.00

Unit yang dipegang oleh Pengurus

0

0.00

0.00

0.00

1,096

100.00

22,600,805.76

100.00

Jumlah Keseluruhan Dana

*Akaun penama juga termasuk di bawah kategori ini

29

1.8

Polisi Rebat dan Komisyen Bukan Tunai Sebarang rebat broker saham yang diterima oleh Pengurus akan dimasukkan secara terus ke dalam akaun Dana. Apa-apa komisyen bukan tunai yang diterima daripada broker dalam bentuk perkhidmatan penyelidikan dan nasihat yang membantu dalam proses membuat keputusan yang berkaitan dengan pelaburan Dana boleh disimpan oleh Pengurus. Pengurus tidak menerima sebarang rebat dan komisyen bukan tunai daripada broker bagi tempoh dalam kajian.

Untuk dan bagi pihak Pengurus BIMB INVESTMENT MANAGEMENT BERHAD

Tarikh: 25 April 2018

Nota: Laporan ini telah diterjemahkan daripada laporan asal (dalam Bahasa Inggeris). Jika terdapat perbezaan, sila rujuk kepada laporan Bahasa Inggeris.

30

2.0 Trustee’s Report SCBMB TRUSTEE BERHAD

UNAUDITED INTERIM REPORT FOR THE FINANCIAL PERIOD ENDED 28 FEBRUARY 2018

To the Unit Holders of BIMB Dana Al-Munsif We have acted as Trustee of BIMB Dana Al-Munsif, (“the Fund”) for the financial period ended 28 February 2018. To the best of our knowledge, BIMB Investment Management Berhad (“the Manager” or “the Management Company”) has managed the Fund in accordance with the following: 1. The limitations imposed on the investment powers of the Management Company and the Trustee under the Deed, the Securities Commission’s Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007 and other applicable laws; 2. The valuation or pricing of the Fund is carried out in accordance with the Deed and any regulatory requirement; and 3. The creation and cancellation of units of the Fund are carried out in accordance with the Deed and any regulatory requirement.

For SCBMB Trustee Berhad

…………………..………… Maziah Yong Head, Trustee Services

Date: 25 April 2018

31

3.0 Shariah Committee’s Report UNAUDITED INTERIM REPORT FOR THE FINANCIAL PERIOD ENDED 28 FEBRUARY 2018

‫ِيم‬ ِ ‫بِ ۡس ِم ٱهللِ ٱلرَّ ۡح َم ٰـ ِن ٱلرَّ ح‬ To the Unit Holders of BIMB Dana Al-Munsif We have acted as the Shariah Committee of BIMB Dana Al-Munsif. Our responsibilities are to ensure that the procedures and processes employed by BIMB Investment Management Berhad and that the provisions of the Deed dated 6 December 2001 are in accordance with Shariah principles. In our opinion, BIMB Investment Management Berhad has managed BIMB Dana Al-Munsif in accordance with Shariah principles and complied with applicable guidelines, rulings or decisions issued by the Securities Commission pertaining to Shariah matters for the financial period from 1 September 2017 to 28 February 2018. In addition, we also confirm that the investment portfolio of BIMB Dana Al-Munsif comprises securities which have been classified as Shariah-compliant by the Shariah Advisory Council (SAC) of the Securities Commission, as the case may be and that all deposits and money market instruments placed by the Fund are Shariah-compliant. ‫ﻭﷲ ﺃﻋلم‬ For and on behalf of the Shariah Committee

……………………………………………….. USTAZ DR. AHMAD SHAHBARI@SOBRI SALAMON (Chairman)

……………………………………………….. USTAZ DR. YUSOF RAMLI (Committee Member)

……………………………………………….. USTAZAH DR. ASMAK AB. RAHMAN (Committee Member) Date: 25 April 2018 32

4.0 Directors’ Declaration

UNAUDITED INTERIM REPORT FOR THE FINANCIAL PERIOD ENDED 28 FEBRUARY 2018

To the Unit Holders of BIMB Dana Al-Munsif We, Dato’ Ghazali Bin Awang and Najmuddin Bin Mohd Lutfi, being two of the directors of the Manager, BIMB Investment Management Berhad, for BIMB Dana Al-Munsif do hereby state that in our opinion, the accompanying Statement of Financial Position, Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Net Asset Value and Statement of Cash Flows are drawn up so as to give a true and fair view of the Statement of Financial Position of the Fund as at 28 February 2018 and Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Net Asset Value and Statement of Cash Flows for the period ended on that date.

For and on behalf on the Board of Directors, …………………………………………… Dato’ Ghazali Bin Awang (Non-Executive Independent Director) ………………………………………….. Najmuddin Bin Mohd Lutfi (Chief Executive Officer)

Date: 25 April 2018

33

5.0 Financial Statements (Unaudited) Fair Value of Financial Instruments

All Assets and Liabilities of the Fund are carried at fair values. The accounting policies on recognition and measurement of the fair value for the Fund’s investments are disclosed in their respective accounting policies.

The fair value for the amount due from/(to) stockbroker, amount due from/(to) the Manager, cash at bank, sundry receivables, sundry payables and accruals approximate their respective carrying amounts as at the balance sheet date due to the relatively shortterm maturity of these Financial Instruments.

34

5.1 Unaudited Statement of Financial Position as at 28 February 2018

Note

As at 28.2.2018 (unaudited) RM

As at 31.8.2017 (audited) RM

Assets Quoted securities

4

6,375,529

10,554,000

Islamic debt securities

5

4,006,120

4,024,920

145

1,306

Amount due from Manager Amount due from stockbroker Other receivables Cash and cash equivalent

6

Total assets

269,606

-

23,494

35,234

442,276

3,414,603

11,117,170

18,030,063

Liabilities Amount due to Manager Amount due to stockbroker Other payables Total liabilities Net asset value

48,672

9,813

343,264

-

50,842

55,540

442,778

65,353

10,674,392

17,964,710

Unitholders’ fund Unitholders’ capital

7

Accumulated losses Net asset value attributable to unitholders Number of units in circulation

7

Net asset value per unit (sen)

15,448,838

22,358,416

(4,774,446)

(4,393,706)

10,674,392

17,964,710

22,600,806

36,956,669

47.23

48.61

The notes on pages 39 to 61 form an integral part of these financial statements.

35

5.2 Unaudited Statement of Profit or Loss and Other Comprehensive Income for the 6 months financial period ended 28 February 2018

Note Income Gross dividends from shares quoted in Malaysia Gain/(Loss) on sale of quoted shares Gain on sale of Islamic debt securities Income from Islamic debt securities Income from short term investments Hibah from Al-Wadiah account Net unrealised (loss)/gain from financial instruments at fair value through profit or loss Amortisation of premium Gross (loss)/income Expenses Manager’s fee Trustee’s fee Audit fee Tax agent’s fee Administrative expenses

8 9

Net (loss)/income before taxation Taxation

11

Net (loss)/income after taxation Other comprehensive income for the period Total comprehensive income for the period Total comprehensive (loss)/income for the period consist of: Realised amount Unrealised amount

1.9.2017 to 28.2.2018 RM

1.9.2016 to 28.2.2017 RM

110,873

184,041

1,755,881 89,753 42,006 38

(2,309,254) 4,096 196,574 43,205 439

(2,216,431) (217,880) (2,203)

2,261,382 380,483 (12,482)

(220,083)

368,001

124,091 5,904 6,465 1,001 23,196

203,872 10,873 5,280 965 29,330

160,657

250,320

(380,740) -

117,681 -

(380,740)

117,681

-

-

(380,740)

117,681

1,835,691 (2,216,431)

(2,143,701) 2,261,382

(380,740)

117,681


36

5.3 Unaudited Statement of Changes in Net Asset Value for the 6 months financial period ended 28 February 2018

Unitholders’ capital RM

Accumulated losses RM

Total RM

As at 31 August 2016/ 1 September 2016

37,892,073

(6,581,147)

31,310,926

Creation of units via cash

24,713

-

24,713

Cancellation of units

(12,099,049)

-

(12,099,049)

Total attributable to unitholders Total comprehensive income for the period

(12,074,336)

-

(12,074,336)

-

117,681

117,681

As at 28 February 2017

25,817,737

(6,463,466)

19,354,271

As at 31 August 2017/ 1 September 2017

22,358,416

(4,393,706)

17,964,710

Creation of units via cash

36,015

-

36,015

Cancellation of units

(6,945,593)

-

(6,945,593)

Total attributable to unitholders Total comprehensive loss for the period

(6,909,578)

-

(6,909,578)

-

(380,740)

(380,740)

As at 28 February 2018

15,448,838

(4,774,446)

10,674,392


37

5.4 Unaudited Statement of Cash Flows for the 6 months financial period ended 28 February 2018 1.9.2017 to 28.2.2018 RM

1.9.2016 to 28.2.2017 RM

20,638,495

14,562,769

(16,830,319)

(7,221,355)

Cash flows from operating activities Proceeds from sale of quoted investments Purchase of quoted investments Maturity/Sales of Islamic debt securities Dividend received Income from Islamic debt securities and short term investments Management fee paid Trustee fee paid Audit fee paid Tax agent fee paid Payment for administrative expenses Net cash generated from operating activities

-

5,542,900

119,245

206,782

135,166

285,053

(132,143)

(225,336)

(6,629)

(11,885)

-

(22,000)

(4,500)

(4,500)

(22,084)

(29,741)

3,897,231

13,082,687

37,175

22,477

(6,906,733)

(12,234,168)

Cash flows from financing activities Cash receipt for creation of units Cash payment for cancellation of units Payment of distributions

-

(17,968)

(6,869,558)

(12,229,659)

(2,972,327)

853,028

3,414,603

2,944,389

442,276

3,797,417

Short term placements

332,959

3,696,573

Cash at bank

109,317

100,844

442,276

3,797,417

Net cash used in financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at 1 September Cash and cash equivalents at 28 February

Cash and cash equivalents comprise:


38

5.5 1.

Notes to the Financial Statements Information on the Fund BIMB Dana Al-Munsif (hereinafter referred to as “the Fund”) was constituted pursuant to the execution of a Deed dated 6 December 2001 between the Manager - BIMB Investment Management Berhad, the Trustee and the registered unitholders of the Fund. Effective from 5 September 2017, the trustee has been changed from Affin Hwang Trustee Berhad to SCBMB Trustee Berhad. The principal activity of the Fund is to invest in authorised investments as defined in the Deed, which include investments in stocks and shares of companies quoted on Bursa Malaysia, short term placements and Islamic debt securities. The Manager, BIMB Investment Management Berhad, a company incorporated in Malaysia, is a subsidiary of Bank Islam Malaysia Berhad. The financial statements were approved by the Board of Directors of the Manager on 25 April 2018.

2.

Basis of preparation (a)

Statement of compliance The financial statements of the Fund have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”), the Deed and Securities Commission’s Guidelines on Unit Trust Funds (“Guidelines”) in Malaysia. The following are accounting standards, interpretations and amendments that have been issued by the Malaysian Accounting Standards Board (“MASB”) but have not been adopted by the Fund: MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2018  MFRS 9, Financial Instruments (2014)  MFRS 15, Revenue from Contracts with Customers  Clarifications to MFRS 15, Revenue from Contracts with Customers  IC Interpretation 22, Foreign Currency Transactions and Advance Consideration  Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements to MFRS Standards 2014-2016 Cycle)  Amendments to MFRS 2, Share-based Payment – Classification and Measurement of Share-based Payment Transactions  Amendments to MFRS 4, Insurance Contracts – Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts

39

2.

Basis of preparation (continued) (a)

Statement of compliance (continued)  

Amendments to MFRS 128, Investments in Associates and Joint Ventures (Annual Improvements to MFRS Standards 2014-2016 Cycle) Amendments to MFRS 140, Investment Property – Transfers of Investment Property

MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2019  MFRS 16, Leases  IC Interpretation 23, Uncertainty over Income Tax Treatments  Amendments to MFRS 3, Business Combinations (Annual Improvements to MFRS Standards 2015-2017 Cycle)  Amendments to MFRS 9, Prepayment Features with Negative Compensation  Amendments to MFRS 11, Joint Arrangements (Annual Improvements to MFRS Standards 2015-2017 Cycle)  Amendments to MFRS 112, Income Taxes (Annual Improvements to MFRS Standards 2015-2017 Cycle)  Amendments to MFRS 123, Borrowing Costs (Annual Improvements to MFRS Standards 2015-2017 Cycle)  Amendments to MFRS 128, Investments in Associates and Joint Ventures – Long-term Interests in Associates and Joint Ventures MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2021  MFRS 17, Insurance Contracts MFRSs, Interpretations and amendments effective for a date yet to be confirmed  Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

40

2. Basis of preparation (continued) (a) Statement of compliance (continued) The Fund plans to apply the abovementioned interpretations and amendments, where applicable:

accounting

standards,



from the annual period beginning on 1 September 2018 for those accounting standards, interpretations and amendments that are effective for annual periods beginning on or after 1 January 2018;



from the annual period beginning on 1 September 2019 for those accounting standards, interpretations and amendments that are effective for annual periods beginning on or after 1 January 2019;



from the annual period beginning on 1 September 2021 for those accounting standards, interpretations and amendments that are effective for annual periods beginning on or after 1 January 2021.

The Fund will apply the abovementioned standards, interpretations and amendments that are applicable to the Company when they become effective. (b) Basis of measurement The financial statements are prepared on the historical cost basis except as disclosed in Note 3(a)(ii). (c) Functional and presentation currency These financial statements are presented in Ringgit Malaysia (“RM”), which is the Fund’s functional currency. (d) Use of estimates and judgments The preparation of the financial statements in conformity with MFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have significant effect on the amounts recognised in the financial statements.

41

3. Significant accounting policies The accounting policies set out below have been applied consistently to the periods presented in these financial statements, unless otherwise stated. (a) Financial instruments (i) Initial recognition and measurement A financial instrument is recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the instrument. A financial instrument is recognised initially, at its fair value plus, in the case of a financial instrument not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument. (ii) Financial instrument categories and subsequent measurement The Fund categorises financial instruments as follows: Financial assets (a)

Financial assets at fair value through profit or loss Fair value through profit or loss category comprises financial assets that are held for trading, or financial assets that are specifically designated into this category upon initial recognition. These include Islamic debt securities. Financial assets categorised as fair value through profit or loss are subsequently measured at their fair values with the gain or loss recognised in profit or loss.

(b)

Financing and receivables Financing and receivables category are debt instruments that are not quoted in an active market and these comprises of amount due from stockbroker, amount due from Manager, other receivables, cash and cash equivalent and short term investments. Financial assets categorised as financing and receivables are subsequently measured at amortised cost using the effective profit method.

All financial assets except for those measured at fair value through profit or loss, are subject to review for impairment, Note 3 (e). 42

3. Significant accounting policies (continued) (a) Financial instruments (continued) (ii) Financial instrument (continued)

categories

and

subsequent

measurement

Financial liabilities Financial liabilities measured at amortised cost comprises of amount due to stockbroker, amount due to Manager and other payables. (iii) Derecognition A financial asset or part of it is derecognised when, and only when the contractual rights to the cash flows from the financial asset expire or the financial asset is transferred to another party without retaining control or substaintially all risks and rewards of the asset. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain or loss that had been recognised in equity is recognised in profit or loss. A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss. (b) Income recognition (i) Dividend income Dividend income is recognised in profit or loss on the date the Fund’s right to receive payment is established, which in the case of quoted shares is the entitlement date. (ii) Income from short term investments and Islamic debt securities Income from short term investments and Islamic debt securities are recognised as it accrues, using the effective profit method in profit or loss.

43

3. Significant accounting policies (continued) (b) Income recognition (continued) (iii) Gain on sale of investments The realised gain on sale of investments is measured as the differenece between the net disposal proceeds and the carrying amount of the investments. The carrying amount for determining the realised gain on sales of investments is based on the weighted average cost method and where applicable adjusted for accretion for the discount and amortisation of premium. (c) Islamic debt securities Islamic debt securities are investments in sukuk which are held for trading. It is categorised as fair value through profit or loss and subsequently measured at their fair values with the gain or loss recognised in profit or loss. (d) Cash and cash equivalents Cash and cash equivalents consist of cash at bank and short term placements with licensed financial institutions which have insignificant risk of changes in fair value with original maturities of less than 30 days, and are used by the Fund in the management of its short term commitments. Cash and cash equivalents are categorised and measured as financing and receivables in accordance with policy Note 3(a)(ii)(b). (e) Impairment Financial assets All financial assets (except for financial assets categorised as fair value through profit or loss) are assessed at each reporting date whether there is any objective evidence of impairment as a result of one or more events having an impact on the estimated future cash flows of the asset. Losses expected as a result of future events, no matter how likely, are not recognised. An impairment loss in respect of financing and receivables is recognised in profit or loss and is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective profit rate. The carrying amount of the asset is reduced through the use of an allowance account.

44

3. Significant accounting policies (continued) (f) Income tax Income tax expense comprises current tax. Current tax is recognised in profit or loss except to the extent that it relates to items recognised directly in equity or other comprehensive income. Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or substantively enacted at the statement of financial position date, and any adjustment to tax payable in respect of previous years. (g) Unitholders’ capital The Fund issues cancellable units, which are cancelled at the unitholder’s option and are classified as equity. Cancellable units can be put back to the Fund at any time for cash equal to a proportionate share of the Fund’s net asset value. The outstanding units is carried at the redemption amount that is payable at the financial position date if the unitholder exercises the right to put the unit back to the Fund. Units are created and cancelled at the unitholder’s option at prices based on the Fund’s net assets value per unit at the time of creation or cancellation. The Fund’s net assets value per unit is calculated by dividing the net asset attributable to unitholders with the total number of outstanding units. In accordance with the Securities Commission’s Guidelines on Unit Trust Funds in Malaysia, investment positions are valued based on the last traded market price for the purpose of determining the net asset value per unit for creations and cancellations. The units in the Fund are puttable instruments, classified as equity, which entitle the unitholders to a pro-rata share of the net asset of the Fund. The units are subordinated and have identical features. There is no contractual obligation to deliver cash or another financial asset other than the obligation on the Fund to repurchase the units. The total expected cash flows from the units are based on the change in the net asset of the Fund. (h) Distribution Distribution is at the discretion of the Fund. A distribution to the Fund’s unitholders is accounted for as a deduction from realised reserves. A proposed distribution is recognised as a liability or equity in the period in which they are declared.

45

3. Significant accounting policies (continued) (i) Net Asset Value Net Asset Value is calculated after deducting the retained profits allocated for distribution. (j)

Fair value measurement The Fund adopted MFRS 13, Fair Value Measurement which prescribed that fair value of an asset or a liability, except for share-based payment and lease transactions, is determined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market or in the absence of a principal market, in the most advantageous market. For non-financial asset, the fair value measurement takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. When measuring the fair value of an asset or a liability, the Fund uses observable market data as far as possible. Fair value are categorised into different levels in a fair value hierarchy based on the input used in the valuation technique as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Fund can access at the measurement date. Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: unobservable inputs for the asset or liability. The Fund recognises transfers between levels of the fair value hierarchy as of the date of the event or change in circumstances that caused the transfers.

46

4.

Quoted securities

As at 28.2.2018 Company’s Name

Number of shares held

Cost RM

Market value RM

Percentage of value of Fund at 28.2.2018 %

780,000 190,000 203,000 1,173,000

771,284 399,153 303,286 1,473,723

741,000 311,600 171,535 1,224,135

6.94 2.92 1.61 11.47

23,500 10,000 237,000 54,400 38,000 362,900

277,635 87,128 577,135 312,138 112,669 1,366,705

274,480 85,700 620,940 528,224 112,480 1,621,824

2.57 0.80 5.82 4.95 1.05 15.19

980,000 119,000 88,000 17,000

398,043 321,880 130,758 105,029

323,400 296,310 127,600 105,400

3.03 2.78 1.19 0.99

38,500 210,000 1,300,000 2,752,500

403,269 676,033 189,181 2,224,193

352,660 569,100 117,000 1,891,470

3.30 5.33 1.10 17.72

2,538,000

815,071

736,020

6.90

50,000 722,000 3,310,000

19,906 868,330 1,703,307

16,000 823,080 1,575,100

0.15 7.71 14.76

450,000

75,821

63,000

0.59

6,843,749

6,375,529

59.73

Main Market (i)

(ii)

Consumer products Lay Hong Bhd. Power Root Bhd. Salutica Bhd.

Industrial products Hartalega Holdings Bhd. Kossan Rubber Industries Bhd. Supermax Corporation Bhd. Top Glove Corporation Bhd. V.S. Industry Bhd.

(iii) Technology AppAsia Bhd. Elsoft Research Bhd. GHL System Bhd. Globetronics Technology Bhd. Malaysian Pacific Industries Bhd. Unisem (M) Bhd. Vivocom Intl Holdings Bhd.

(iv) Trading and services Perak Transit Bhd. UMW Oil & Gas Corporation Bhd. Xin Hwa Holdings Bhd.

(v)

Warrant Perak Transit Bhd. - Warrant A

Total portfolio investment as at 28 February 2018

47

4.

Quoted securities (continued)

As at 31.8.2017 Company’s Name

Number of shares held

Cost

Market value

Percentage of value of fund at 31.8.2017

RM

RM

%

67,000

247,084

272,690

1.52

159,000 640,000 30,000 135,000 125,000 60,000 250,000

814,325 963,070 205,757 181,542 185,093 332,031 474,816

1,079,610 1,068,800 216,000 129,600 185,000 336,600 592,500

6.01 5.95 1.20 0.72 1.03 1.87 3.30

1,399,000

3,156,634

3,608,110

20.08

265,000 528,000

1,511,660 1,084,916

1,701,300 1,341,120

9.47 7.47

87,500 202,000 274,000

913,727 729,054 898,397

1,232,000 997,880 1,123,400

6.86 5.55 6.25

1,356,500

5,137,754

6,395,700

35.60

250,000

280,914

277,500

1.55

8,822,386

10,554,000

58.75

Main Market (i)

Consumer products IQ Group Holdings Bhd

(ii)

Industrial products Hartalega Holdings Bhd. HeveaBoard Bhd. Kossan Rubber Industries Bhd. Seacera Group Bhd. SKP Resources Bhd. Top Glove Corporation Bhd. V.S. Industry Bhd.

(iii) Technology Globetronics Technology Bhd. Inari Amertron Bhd. Malaysian Pacific Industries Bhd. Pentamaster Corporation Bhd. Unisem (M) Bhd.

(iv) Trading and services Xin Hwa Holdings Bhd. Total portfolio investment as at 31 August 2017

48

5.


As at 28.2.2018 Issuer Axis REIT Sukuk Berhad

As at 31.8.2017 Issuer Axis REIT Sukuk Berhad

Maturity date

12.07.2024

Maturity date

12.07.2024

Cost RM

Fair Value RM


4,032,891

4,006,120

37.53

Cost RM

Fair value RM


4,035,094

4,024,920

22.40

Rating*

AAA*

Rating*

AAA*

* Rating by Rating Agency Malaysia Berhad. 6.

Cash and cash equivalents

Short term placements with maturity less than 30 days: Wafiyah Investment Account* Commodity Murabahah Cash at bank*

As at 28.2.2018 RM

As at 31.8.2017 RM

332,959 109,317

3,090,138 324,465

442,276

3,414,603

* Wafiyah Investment Account and a partial cash at bank are placed with the holding company of the Manager, Bank Islam Malaysia Berhad.

49

7.

Unitholders’ capital

As at 31 August 2016/ 1 September 2016 Creation of units Cancellation of units As at 31 August 2017/ 1 September 2017 Creation of units Cancellation of units As at 28 February 2018 8.

No. of units 72,404,772 724,272 (36,172,375) 36,956,669 74,144 (14,430,007) 22,600,806

RM 37,892,073 344,706 (15,878,363) 22,358,416 36,015 (6,945,593) 15,448,838

Manager’s fee The manager’s fee payable to the Manager of the Fund is based on 1.50% (28.2.2017: 1.50%) per annum of the net asset value of the Fund calculated on a daily basis.

9.

Trustee’s fee The trustee’s fee payable to the trustee of the Fund is based on 0.05% (28.2.2017: 0.08%) per annum subject to a minimum of RM18,000 (28.2.2017: RM18,000) per annum of the net asset value of the Fund calculated on a daily basis.

10.

Units held by related party The number and value of units held legally or beneficially by a related party of the Manager is as follows: As at 28.2.2018 Units Bank Islam Malaysia Berhad

500,000

RM 236,150

As at 31.8.2017 Units 500,000

RM 243,050

The Manager does not hold any unit in the Fund as at 28 February 2018 and 31 August 2017.

50

11.

Taxation 1.9.2017 to 28.2.2018 RM

1.9.2016 to 28.2.2017 RM

-

-

(380,740)

117,681

Taxation - Current period

Reconciliation of effective tax expense Net (loss)/income before taxation

Income tax using Malaysian tax rate @ 24% Non-assessable income Non-deductible expenses Restrictions on the tax deductible expenses for Unit trust funds

51

(91,378)

28,243

(479,652)

(645,537)

534,130

560,058

36,900

57,236

-

-

12.

Transactions with related parties Other than as disclosed in Note 4, 6 and 10 of the financial statements, other transactions with related parties are as follows: Transaction as at 28.2.2018 31.8.2017 RM RM

Balance as at 28.2.2018 31.8.2017 RM RM

The Manager BIMB Investment Management Berhad - Amount due from Manager - Amount due to Manager - Management fee Holding company of the Manager Bank Islam Malaysia Berhad - Income from short term placements Related company of the Manager BIMB Securities Sdn. Bhd. - Sales - Purchase - Brokerage fee

-

-

145

1,306

-

-

(48,672)

(9,813)

124,091

347,740

(14,735)

(22,787)

23,956

56,696

-

1,479

1,291,610

2,382,987

-

-

1,305,743

573,924

-

-

9,159

9,785

-

-

5,904

18,546

(491)

(1,215)

The Trustee SCBMB Trustee Berhad - Trustee fee

52

13.

Transactions with related and other stockbroking companies Percentage of total Brokerage brokerage fee fee RM %

Value of trade RM

Percentage of total trade %

6,701,623

17.59

20,823

16.45

5,799,141 5,270,876 3,956,010 3,138,962 3,092,790 2,597,354 1,865,175 1,840,290

15.22 13.84 10.39 8.24 8.12 6.82 4.90 4.83

18,043 17,317 13,568 10,819 10,686 9,159 6,237 6,542

14.26 13.68 10.72 8.55 8.44 7.24 4.93 5.17

1,594,149

4.18

5,680

4.49

1.9.2017 to 28.2.2018 MIDF Amanah Investment Bank Bhd. TA Securities Holdings Bhd. RHB Investment Bank Bhd. Hong Leong Investment Bank Bhd. Maybank Investment Bank Bhd. Public Investment Bank Bhd. BIMB Securities Sdn. Bhd.* Alliance Investment Bank Bhd. Kenanga Investment Bank Bhd. Macquarie Capital Securities (Malaysia) Sdn. Bhd. Other brokers

2,236,776

5.87

7,678

6.07

38,093,146

100.00

126,552

100.00

Value of trade RM

Percentage of total trade %

3,182,097

12.14

9,347

13.23

3,046,915 2,726,281

11.63 10.40

8,298

11.75

2,670,099

10.19

8,225

11.65

2,646,896 2,454,763 2,227,934 1,641,722 1,377,227 1,166,923 3,069,844

10.10 9.37 8.50 6.26 5.25 4.45 11.71

7,947 7,807 7,315 5,484 4,862 4,064 7,280

11.25 11.05 10.36 7.77 6.88 5.75 10.31

26,210,701

100.00

70,629

100.00

Percentage of total brokerage Brokerage fee fee RM %

1.9.2016 to 28.2.2017 MIDF Amanah Investment Bank Bhd. Hong Leong Bank Bhd. Kenanga Investment Bank Bhd. KAF-Seagroatt & Campbell Securities Sdn Bhd. Hong Leong Investment Bank Bhd. TA Securities Holdings Bhd. Public Investment Bank Bhd. Maybank Investment Bank Bhd. CIMB Investment Bank Bhd. AmInvestment Bank Bhd. Other brokers

*Transactions with the related party has been entered into in the normal course of business and have been transacted at arm’s lengths basis. 53

14.

Management Expense Ratio (“MER”) The management expense ratio for the financial period is 1.95% (28.2.2017: 1.85%). Management expense ratio is the ratio of total fees and recovered expenses of the Fund expressed as a percentage of the Fund’s average net asset value. It is a total management expenses expressed as an annual percentage of the Fund’s average net asset value.

15.

Portfolio Turnover Ratio (“PTR”) The portfolio turnover ratio for the financial period is 1.13 times (28.2.2017: 7.02 times). It represents the average of total acquisitions and disposals of the investments in the Fund for the financial period over the average net asset value of the Fund calculated on a daily basis.

16.

Financial instruments 16.1

Categories of financial instruments The table below provides an analysis of financial instruments categorised as follows: (a) Financing and receivables (“F&R”); (b) Fair value through profit or loss (“FVTPL”); (c) Financial liabilities measured at amortised cost (“FL”).

Carrying amount RM

F&R/(FL) RM

FVTPL RM

Quoted securities

6,375,529

-

6,375,529


4,006,120

-

4,006,120

Other receivables

293,245

293,245

-

Cash and cash equivalents

442,276

442,276

-

11,117,170

735,521

10,381,649

(442,778)

(442,778)

-

As at 28.2.2018 Financial assets

Financial liabilities Payables

54

16.

Financial instruments (continued) 16.1

Categories of financial instruments (continued)

Carrying amount RM

F&R/(FL) RM

FVTPL RM

10,554,000

-

10,554,000

4,024,920

-

4,024,920

36,540

36,540

-

As at 31.8.2017 Financial assets Quoted securities Islamic debt securities Other receivables Cash and cash equivalents

3,414,603

3,414,603

-

18,030,063

3,451,143

14,578,920

(65,353)

(65,353)

-

Financial liabilities Payables 16.2

Net gains and losses arising from financial instruments 1.9.2017 to 28.2.2018 RM

1.9.2016 to 28.2.2017 RM

1,954,304

(1,937,025)

(2,216,431)

2,261,382

Net gains on: Fair value through profit or loss: -

Designated upon initial recognition Realised profit/(loss) Unrealised (loss)/profit

Financing and receivables

16.3

42,044

43,644

(220,083)

368,001

Financial risk management The Fund has exposure to the following risks from its use of financial instruments:    

Credit risk Liquidity risk Market risk Investment risk

55

16.


Credit risk Credit risk is the risk of a financial loss to the Fund if counterparty to a financial instrument fails to meet its contractual obligations. The Fund’s exposure to credit risk arises principally from its investment securities, receivables and cash and cash equivalents. Risk management objectives, policies and processes for managing the risk The Manager manages the credit risk by setting counterparty limits and undertaking credit evaluation to minimise the risk. The exposure to credit risk is monitored on an ongoing basis. Exposure to credit risk The Fund’s maximum credit risk exposure at the reporting date is represented by the respective carrying amounts of the relevant financial assets in the statement of financial position. The financial assets of the Fund are neither carried past due or impaired as at date of statement of financial position.

16.5

Liquidity risk Liquidity risk is the risk that the Fund will not be able to meet its financial obligations as they fall due. The Fund’s exposure to liquidity risk arises principally from its various payables. The Fund maintains sufficient level of liquid assets, after consultation with the Trustee, to meet anticipated payments and cancellation of units by unitholders. Liquid assets comprise cash at bank and other short term investments, which are capable of being converted into cash within 7 days.

56

16.


Market risk Market risk is the risk that changes in market prices, such as profit rates and market prices will affect the Fund’s financial position or cash flows. Profit rate risk The profit rate profile of the Fund’s significant profit-bearing financial instruments, based on carrying amounts as at the end of reporting period was: Effective profit rate per annum %

As at 28.2.2018 RM

Effective profit rate per annum %

As at 31.8.2017 RM

4.50

4,006,120

4.50

4,024,920

3.05

332,959

3.20-3.30

3,090,138

Fixed rate instruments Islamic debt securities Cash and cash equivalents - Short term placements with maturity less than 30 days

Fair value sensitivity analysis for fixed rate instruments The Fund accounts for the Islamic debt securities and short term investments with licensed financial institutions at fair value through profit and loss, and financing and receivables, respectively. An increase of 100 basis points (bp) in profit rates of Islamic debt securities at the end of the reporting period would have decreased on the unitholders’ fund and profit or loss by RM213,037 (31.8.2017: RM228,063). A decrease of 100 basis point (bp) in profit rates would have equal but opposite effect on the equity and profit or loss respectively. The Fund’s fixed rate of short term placements are not significantly exposed to profit rate risk. Market price risk Equity price risk arises from the Fund’s investments in quoted securities. Risk management objectives, policies and processes for managing the risk The Fund is restricted to invest in securities issued by any issuer of not more than a certain percentage of its net asset value. Under such restriction, the exposure risk to the securities of any issuer is mitigated. 57

16.


Market risk (continued) Market price risk (continued) Equity price risk sensitivity analysis This analysis assumes that all other variables remain constant and the Fund’s equity investments are positively correlated to each other. A 10% strengthening in the equity prices at the end of the reporting period would have increased the net asset value and unitholders’ fund by RM637,553 (31.8.2017: RM1,055,400). A 10% weakening in equity prices would have had equal but opposite effect on the net asset value and unitholders’ fund respectively.

16.7

Investment risk Investments are bound by Deed and prospectus that govern the maximum securities holdings and maximum liquid assets holdings. Investment risks for equity funds consist primarily of market risk, specific stock risk and liquidity risk. The mechanism employed to control investment risk for equity funds is by placing acceptable stock limits. Investment risks for fixed income funds are in the form of profit rate and credit risks. To manage these risks, investments will be in investment grade sukuk. Risk management objectives, policies and processes for managing the risk The Manager has written policies and guidelines on risk management, which set out the overall investment risks strategies and general risk management philosophies. These processes monitor, measure and control risks associated with the business. Matters relating to investment risks in respect of funds portfolio are discussed during the Investment Committee meetings of the Manager held at least 6 (31.8.2017: 6) times a year.

58

16.


Fair value of financial instruments The carrying amounts of cash and cash equivalents, short term receivables and payables approximate fair values due to the relatively short term nature of these financial instruments. The table below analyses financial instruments carried at fair value and carrying amounts shown in the statement of financial position. Fair value of financial instruments carried at fair value Level 1

Level 2

Level 3

Total

RM

RM

RM

RM

Carrying amount RM

-

-

6,375,529

6,375,529

6,375,529

4,006,120 4,006,120

-

4,006,120 10,381,649

4,006,120 10,381,649

10,554,000

-

-

10,554,000

10,554,000

10,554,000

4,024,920 4,024,920

-

4,024,920 14,578,920

4,024,920 14,578,920

As at 28.2.2018 Financial assets Quoted securities Islamic debt securities

6,375,529

As at 31.8.2017 Financial assets Quoted securities Islamic debt securities

Policy on transfer between levels The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused the transfer. Level 1 fair value Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical financial assets or liabilities that the entity can access at the measurement date.

59

16.


Fair value of financial instruments (continued) Level 1 fair value (continued) Quoted equities Quoted equities in Malaysia are valued at closing market price quoted on the Bursa Malaysia at the date of the statement of financial position, in accordance with the Deed. Unrealised gain or loss is taken to statement of profit or loss and other comprehensive income. Level 2 fair value Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the financial assets or liabilities, either directly or indirectly. Islamic debt securities Islamic debt securities issued by Malaysian corporations and rated by the Rating Agency of Malaysia Berhad are carried at fair value. In ariving at fair value gain/loss, the acquisition cost is adjusted for the amortisation of any premium or accretion of any discount over their par values at the time of acquisition. The premium or discount is amortised or accreted on a yield to maturity basis over the remaining term of the investments from the date of acquisition. This adjusted cost (carrying value) is then revalued to reflect its fair value (indicative market value) using the fair price quoted by an independent bond pricing agency (BPA) registered with the Securities Commission. If such quotations are not available, it will be valued on a weekly basis or as and when appropriate by reference to average indicative yield quoted by the three reputable financial institutions in over-the-counter markets as the close of trading. These institutions include investments banks and commercial banks. Transfers between Level 1 and Level 2 fair values There has been no transfer between Level 1 and 2 fair values during the financial period (31.8.2017: no transfer in either direction). Level 3 fair value Level 3 fair value is estimated using unobservable inputs for the financial assets and liabilities.

60

17.

Capital management The Fund’s capital is represented by the unitholders’ fund in the statement of financial position. The Manager of the Fund monitors the adequacy of capital on an ongoing basis. There is no external capital requirement imposed on the Fund.

61

6.0

Corporate Directory Manager

BIMB Investment Management Berhad Registered Office Level 32, Menara Bank Islam, No. 22, Jalan Perak 50450, Kuala Lumpur Business Office Level 19, Menara Bank Islam, No. 22, Jalan Perak 50450, Kuala Lumpur

Board of Directors

Nik Mohd Hasyudeen Yusoff (Chairman – Non-Executive Independent Director – Appointed w.e.f 13 September 2017) Khairul Kamarudin (Chairman – Non-Executive Non Independent Director – Resigned w.e.f 13 September 2017) Dato’ Ghazali Awang (Non-Executive Independent Director) Datuk Noripah Kamso (Non-Executive Independent Director) Dr. Mohd Hatta Dagap (Non-Executive Independent Director) Malkiat Singh @ Malkit Singh Maan (Non-Executive Non Independent Director) Mujibburrahman Abd Rashid (Non-Executive Non Independent Director– Appointed w.e.f. 5 December 2017) Najmuddin Mohd Lutfi (Chief Executive Officer)

Shariah Committee

Ustaz Dr. Ahmad Shahbari @ Sobri Salamon Ustaz Dr. Yusof Ramli Ustazah Dr. Asmak Ab. Rahman

Investment Committee

Khairul Muzamel Perera Abdullah (Chairman – Non Independent Member) Datuk Noripah Kamso (Independent Member) Mohd Radzuan Ahmad Tajuddin (Independent Member – Appointed w.e.f. 27 November 2017) Dato’ Darawati Hussain (Independent Member – Resigned w.e.f. 1 December 2017)

Audit Committee

Dato’ Ghazali Awang (Chairman - Independent Member) Dr. Mohd Hatta Dagap (Independent Member) Malkiat Singh @ Malkit Singh Maan (Non-Executive Non Independent Member) 62

Company Secretaries

Aidil Haznul Zulkifli (MACS 01638) Level 32, Menara Bank Islam, No.22 Jalan Perak, 50450 Kuala Lumpur Norhidayati Mohamat Salim (MIA 27364) Level 32, Menara Bank Islam, No. 22, Jalan Perak 50450, Kuala Lumpur

Key Management

Najmuddin Mohd Lutfi (Chief Executive Officer) Badrol Ahmad Fathan (Head of Investment) Mohd Hamidullah Che Hassan (Manager, Compliance)

Principal Banker

Standard Chartered Saadiq Bank Berhad Level 13A, Menara Standard Chartered 30, Jalan Sultan Ismail 50250 Kuala Lumpur

Trustee

SCBMB Trustee Berhad (1005793 T) Level 13A, Menara Standard Chartered 30, Jalan Sultan Ismail 50250 Kuala Lumpur

Federation of Investment Managers Malaysia (FIMM)

19-06-1, 6th Floor, Wisma Tune No.19, Lorong Dungun Damansara Heights 50490 Kuala Lumpur

Distributors

Bank Islam Malaysia Berhad Branches IFast Capital Sdn Bhd Phillip Mutual Berhad Johor Bharu Agency Office Bank Simpanan Nasional Registered Unit Trust Consultant with BIMB Investment Management Berhad Toll Free Number: 1-800-88-1196

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