Fund Performance Report

Transcription

1 AXA AFFIN Life Insurance Berhad Incorporated in February 2006, AXA AFFIN Life Insurance Berhad (AXA AFFIN) is a joint venture company between AXA Asia Pacific Holdings Ltd and AFFIN Holdings Berhad. AXA AFFIN is part of the AXA Group, a worldwide financial protection leader. Leveraging on the AXA Group strength as a financial protection expert and AFFIN Holdings local knowledge and diversified network, AXA AFFIN is focused on helping individuals manage risk and achieve their financial goals. AXA AFFIN will strive to build close and lasting relationship with our customers, offering them care, support and advice with the highest standard of professional ethics Performance Report part of AXA Group Global Leader In Financial Protection Global Financial Strength Global Network Global Expertise Trusted by 80 million clients worldwide 90 billion in revenues and 4 billion in underlying earnings Present in 56 countries 214,000 peoples worldwide 1 trillion in assets under management 2009 Data as of 31 December AXA AFFIN Life Insurance Berhad (723739W) 8 th Floor, Chulan Tower No. 3, Jalan Conlay Kuala Lumpur Tel : Fax :

2 2009 Performance Report Contents CEO Message Objectives Market Review, Outlook and Strategy 1 Malaysian Market 1.1 Market Review 1.2 Market Outlook and Strategy 2 Stock Markets Review 2.1 Malaysia Market Bursa Malaysia Securities 3 Market Outlook and Strategy Asia Pacific Growth () Active () Active () ( ) Statement of Assets and Liabilities Statement of Income and Expenditure Statement of Changes in Net Asset Value Cash Flow Statement Notes to Financial Statements Statement by Manager Report of the Auditors

3 CEO Message CEO Message Dear Valued Policyholder, On behalf of AXA AFFIN Life Insurance Berhad, we are pleased to share with you the overview performance of your investment with us for the financial year ending 31 st December was a spectacular year for the Malaysian equity market. After hitting a low of in March, the Malaysian equity market started to trend up on rising optimism that the global economic contraction has passed its worst and the global economy is heading towards recovery. The FBM KLCI broke through the important psychological 1,200-mark in Q3 and closed at 1, points chalking up a credible performance of 43.7% for the year. With the spectacular recovery from the stock market, our four funds Active, Active, and Asia Pacific Growth have performed well and outperformed their respective benchmarks for 2009 and since the funds established. Since inception* Return Benchmark (%) (%) Return (%) FY2009 Benchmark (%) Active Active Asia Pacific Growth *Established in September This page is intentionally left blank. With the global and local economic recovery firmly taking hold, the Malaysian equity market has got off to a good start for Valuations are also back to normal levels. However, we expect the Central Bank, along with other central banks around the world, to start normalizing interest rates in the coming months as more signs of economic recovery emerge to prevent imbalances in the financial system. However, the pace of normalization is likely to be on a measured pace. We are therefore positive on the outlook of the Malaysian equity market in We would like to express our sincere appreciation for the trust and confidence that you have placed in us and AXA AFFIN Life as part of the Global Leader in Financial Protection will endeavour to deliver financial solutions that meet your financial goals. Yours sincerely, AXA AFFIN Life Insurance Berhad LOKE KAH MENG Chief Executive Officer 1

4 Market Review, Outlook and Strategy Objectives Market Review, Outlook and Strategy The Asia Pacific Growth aims to seek high capital growth over the medium to long-term period through investments in situational and high growth stocks. Investor Profile Seeking medium to long-term capital growth Wish to participate in the upside of Regional (i.e Asia Pacific) stock markets excluding Japan markets Can withstand extended periods of market highs and lows in pursuit of capital growth Medium to long-term investment horizon The Active aims to provide a steady stream of income through investment in money market and private debt securities with limited exposure to equities. Investor Profile Conservative risk-reward temperament Seek stable annual income Medium term investor The Active aims to provide a steady income and capital growth over the medium to long-term period. Investor Profile Conservative to moderate risk-reward temperament Preference for receiving regular income and a respectable measure of capital growth Medium to long-term investor The aims to provide a steady income and capital growth over the medium to long-term period by investing in a portfolio of investments that complies with Syariah requirements. Investor Profile Conservative to moderate risk-reward temperament Preference for receiving regular income and a respectable measure of capital growth Medium to long-term investor Malaysian Market Market Review The year began with the global financial markets deep in crisis as the collapse of Lehman Brothers in October 2008 froze capital flows and threatened to push the global economies to their worst recession. The threat of domestic recession slowed down capital flows, dampening the currency and foreign direct investment. As a result, fund flows went into the safe haven government debt markets. In addition, to pre-empt a deep contraction in the Malaysian economy, and reflecting the general direction of global interest rates, Bank Negara Malaysia s policy makers went on a rate cutting course, reducing the Overnight Policy Rate (OPR) from 3.50% in November 2008 to 2.00% before the end of 1Q09. The Ringgit bond market started off with strong gains, aided by safe haven flows. However, even before the end of the first quarter of 2009, supply concerns came into play as the government projected to raise fiscal spending. 67 billion worth of fiscal stimulus packages were announced. Selling pressure was initially focused along the longer-end of the yield curve as the original auction calendar had more offerings with longer duration. The unveiling of the revised calendar after the announcement of the second stimulus package resulted in selling pressure to also affect the bellies of the yield curve as the new calendar saw high frequency for medium tenured bond auctions. There were more gains from holding corporate bonds in 2009, with an average monthly gain of 0.68% during Jan-Nov 09 (+0.21% returns in Jan-Nov 08). However, the PDS segment froze up during most of 2009, reflecting the sluggish economy and business environment. Nonetheless issuances gained traction towards 2H09, bringing total Corporate bond issuances as at end November 2009 to 50 billion, compared with 48.7 billion during the whole of Market Outlook and Strategy We expect market volatility to ease in However, the majority of central banks around the world are currently at the tail-end of their accommodative monetary cycle. Therefore, there is a risk of a potential interest rate up-cycle as inflationary pressure kicks in especially towards the second half of the year. Given that economic recovery and inflation outlook are still subdued, there is little impetus for BNM to raise the OPR in the first quarter of the year. On the supply front, we can expect smaller MGS/GII supply due to the narrower budget deficit of 5.6% of GDP in 2010, down from 7.4% of GDP in Domestic financing may reach 60 billion in 2010 (93 billion in 2009). For the corporate bond market, the primary 2 s Objectives 3

5 Market Review, Outlook and Strategy bond offerings is expected to remain buoyant as the recovery in the economy picks up pace. Issuers could take advantage of the small window of opportunity before interest rates potentially rise in 2H10. We will be selective in investing in short dated high-grade bonds/ sukuk to avoid the volatility in the market. Stock Markets Review Malaysia Market Bursa Malaysia Securities Despite underperforming most of its regional peers, 2009 has been a spectacular year for the Malaysian equity market. The FBM KLCI benchmark chalked up a 45.2% and this is not surprising given the first year of a recovery following a sharp downturn in the global economic cycle. After hitting a low of on 12 March 2009, the FBM KLCI benchmark started to rebound and trend up on account of rising optimism that the global economic contraction has passed its worst and will gradually head towards recovery in the quarters ahead. This was in tandem with global equities, which rallied as investors were cheered by a spate of betterthan-expected economic readings around the globe, particularly the US and China. Apart from intermittent profit-taking activities, the market was generally on an uptrend as there was growing consensus that the worst global economic contraction was over. Confidence improved further as the FBM KLCI benchmark shot past the psychological important 1,000-mark on 4 May More significant profit-taking activities emerged only after mid-june and the local bourse went into a consolidation mode until mid-july on account of a more challenging external environment. The market, however, regained its upward trajectory after that as investors were cheered by a series of positive news flow, including better-than-expected US corporate earnings reports and more upbeat 2Q09 GDP numbers. Investor confidence was bolstered by improving outlook of the US economy, which contracted by a much smaller annualised rate of 1.0% in the 2Q, from a revised 6.4% contraction recorded in the 1Q. Similarly, Japan emerged from a year-long recession as its GDP grew at an annualised pace of 3.7% in the 2Q, after shrinking a revised 11.7% in the 1Q. The local benchmark rose to a new high of 1, on 14 August. Subsequently, the market succumbed to more significant profit-taking activities as there were growing concerns that some of the bank lending in China have gone into non-productive sectors, such as speculative asset purchases. The market, however, came back after a breather, partly caused by extremely low interest rates globally, high liquidity and the trend of a weakening dollar, despite ongoing concerns over the strength of the global economic recovery. The FBM KLCI benchmark breached the important psychological 1,200-mark on 8 September and closed at 1, points on 31 December. For the whole year of 2009, the top performing sector was rubber glove sector, followed by banking and finance sector, which is the best proxy to any economic recovery, plantation and property. In contrast, the telecommunications & technology, industrial, consumer, services &trading, construction and industrial products underperformed the FBM KLCI benchmark. Market Outlook and Strategy The year 2010 has indeed kicked off to a strong start. However, the optimism was short lived as the rally was dampened by tightening policies in China as well as strengthening of US dollar. While we do not expect such strong returns to continue throughout the year, we do hold the view that 2010 will continue to deliver positive returns, although on a much smaller magnitude compared to An observation of past returns indicate that during the first year of recovery, i.e, 2009 in this case, returns have traditionally been the best but Asian markets continue to deliver positive returns in the second year of recovery. Going into 2010, we expect the upside to equity markets to be driven by earnings growth of about 26% - 30%. The average return of the MXASJ Index during the first year of recovery has been 42% and that has been followed with returns of 19% in the second year of recovery. The 68% rise witnessed during 2009 was not exceptionally high, especially given the 54% drop in 2008, and hence a continued recovery into 2010 can be expected, especially given an environment where there is ample liquidity, a recovery in corporate earnings, a continuation of fiscal stimulus programmes, and relatively strong fiscal balances across Asian countries. Fears that bubbles are forming in Asian equity markets are valid as they do eventually occur but an observation of past trends indicate that Asian markets are far from hitting levels at which investors should be worried. Hence, for 2010, a decent low teens return for investors would not translate to levels where investors should worry about equity bubbles forming in Apart from a recovery in earnings growth, markets will likely be held up by announcements of the economic recovery broadening out both in Asia as well as in developed countries like the U.S. In the US, recent economic releases indicate that the recovery appears to be broadening to housing, capex and consumption. The Case-Shiller Index of house prices has risen for the last 5 consecutive months while US non-financial corporate cashflows as a percentage of GDP of about 3.5% is at the highest levels since the 1950s. Although uneven, retail sales (excluding the cash for clunkers programme) have been up for the last 5 out 4 Market Review, Outlook and Strategy 5

6 Asia Pacific Growth () Asia Pacific Growth () of 6 months. Similarly, for many Asian markets, indicators for exports as well as domestic demand are recovering well. Concerns about asset bubbles and rising interest rates are valid but raising rates from these low absolute levels of interest rates should not give rise to any alarm. Indeed, Asian policy makers are expected to raise interest rates earlier than in the US or Europe given the speed of the economic recovery here and well as the rise in asset price. However, policy makers raising interest rates at this juncture are akin to drivers lifting their foot off the accelerator of a car as opposed to stepping on the brakes to stop the car. Given such an environment, the year 2010 will be a year for stock picking. Countries that continue to offer value include Korea, Thailand and the Philippines while sectors that we favour include early cyclicals like commodities, technology and financials for the play in economic recovery, oil & gas for the exposure to rising spending in this sector, infrastructure and building materials that benefit from the fiscal stimulus programmes of the various countries. We would also focus on stocks that offer value and Thailand, India and China would be countries that allows for selective stock picking. Performance Table Portfolio Composition Category of Investments Comparative Performance Portfolio Composition By Sector Portfolio Composition By Country Allocation Portfolio Composition Performance of Asia Pacific Growth Against The KLCI Since Inception Performance Table FY2009 FY2008 FY2007 Net Asset Value (NAV) (/unit) Units in circulation 15,625,361 22,413,129 21,535,815 Total NAV () 20,494,571 18,166,800 27,304,418 Highest NAV (/unit) Lowest NAV (/unit) Kuala Lumpur Composite Index Return (%) Average Annual Return - One Year Three Years 8.5 Average Annual Return - Benchmark One Year Three Years 5.7 Portfolio Composition Category of Investments FY2009 FY2008 FY2007 Equity 89% 89% 75% Deposits & Cash 11% 11% 25% 6 Market Review, Outlook and Strategy 7

7 Asia Pacific Growth () Comparative Performance Portfolio Composition By Sector (as a percentage of total equity) Composition of s Trust 3% Trading/Services 8% Telecommunications 4% Construction 7% Consumer Products 2% Diversified 3% Infrastructure 2% Equity Basic Material % Construction 6.7% 6.8% 7.0% Consumer Products 1.8% 2.9% 2.5% Diversified 3.3% 2.1% 1.3% Energy and Water - 0.3% 2.0% Electronics (ETF) - 6.3% 4.6% Finance 14.6% 19.2% 13.7% Industrial Products 10.0% 7.3% 6.0% Infrastructure 2.0% 0.9% 2.0% Manufacturing 0.8% 1.4% 1.3% Mining 13.4% 8.8% - Oil & Gas - 2.7% 1.3% Pharmaceutical - 0.6% - Plantation 17.6% 9.2% 7.6% Properties 5.7% 5.5% 2.8% Technology 10.3% 5.7% 3.1% Telecommunications 3.4% 4.7% 7.2% Trading/Services 8.0% 7.2% 6.2% Trust (REIT) 2.6% 0.9% 6.9% Utilities % Fixed Income Fixed and call deposits - 7.4% 18.2% 100.0% 100.0% 100.0% Technology 9% Properties 4% Plantation 18% Portfolio Composition By Country Allocation Hong Kong/China 16% Taiwan 8% Thailand 2% Singapore 11% Philippines 7% Finance 16% Industrial Products 10% Manufacturing 1% Mining 13% Indonesia 18% Korea 9% Malaysia 29% Currency Breakdown 2009 % Hong Kong Dollar 14.2 Indonesion Rupiah 11.7 Korean Won 8.4 Malaysian Ringgit 30.3 Philippine Peso 5.9 % Singapore Dollar 7.6 Thailand Baht 2.0 New Taiwan Dollar 10.3 US Dollar Asia Pacific Growth () 9

8 Asia Pacific Growth () Portfolio Composition Equities No. of Units Held Cost ( 000) Market Value ( 000) Per Cent of Net Asset Value (%) Constructions Chip Eng Seng Ltd 206, , , EEI Corporation 1,248, , , GS Engineering & Construction , , WCT Engineering Bhd 50,000 70, , YTL Corporation Bhd 68, , , ,573,005 1,260,854 1,221, Consumer Products Hyundai Motor Co Ltd , , Ramayana Lestari Sentosa 810, , , , , , Diversified Keppel Corp Ltd 30, , , , , , Finance Bangkok Bank PCL - Foreign 20, , , Bank of China Ltd 'H' 25, , , China Construction Bank Corp Ltd 'H' 100, , , Industrial & Commercial Bank of China 'H' 222, , , KB Financial Group Inc 1, , , Malayan Banking Bhd 77, , , Metropolitan Bank & Trust Co. 78, , , Shinhan Financial Group Ltd 2, , , ,385 2,348,989 2,662, Equities No. of Units Held Cost ( 000) Market Value ( 000) Per Cent of Net Asset Value (%) Industrial Products AKR Corporindo Tbk 770, , , China Zhongwang Holdings Ltd 83, , , Evergreen Fibreboard Bhd 78,000 93, , Hiap Teck Venture Bhd 100, , , Java Inc Bhd 195, , , KNM Group Bhd 400, , , Mediatek Inc 6, , , Ta Ann Holdings Bhd 46, , , ,678,072 2,113,848 1,820, Infrastructure DIGI.Com Bhd 10, , , Metro Pacific Investments Co 707, , , , , , Manufacturing Hyundai Mobis , , , , Mining Adaro Energy Tbk 1,220, , , Bumi Resources Tbk 210, , , International Nickel Indonesia Tbk 480, , , Straits Asia Resources Ltd 25,000 59, , Timah Tbk 265, , , Zijin Mining Group Co. Ltd 150, , , ,350,000 2,170,112 2,437, Plantation BW Plantation Tbk 1,260, , , Golden Agri-Resources Ltd 330, , , IOI Corporation Bhd 154, , , Kuala Lumpur Kepong Bhd 55, , , Perusahaan Perkebunan London Sumatra Indon Tbk 205, , , TSH Resources Bhd 90, , , ,094,666 2,836,050 3,204, Asia Pacific Growth () 11

9 Asia Pacific Growth () Equities No. of Units Held Cost ( 000) Market Value ( 000) Per Cent of Net Asset Value (%) Properties Alam Sutera Realty Tbk Pt 4,060, , , Filinvest Land Inc 3,960, , , Guacoland Ltd 52, , , Megaworld Corporation 3,000, , , ,072,000 1,090,734 1,037, Performance of Asia Pacific Growth Against The KLCI Since Inception (as at 9 August 2006) 60% 50% 40% 30% 20% 10% Asia Pacific Growth vs Benchmark vs KLCI Technology Asustek Computer Inc 28, , , Hana Microelectronics PCL - NVDR 75, , , Hon Hai Precision Industry Co., Ltd 31, , , Samsung Electronics Co. Ltd , , Samsung Electronics Co. Ltd - Preferred 45 83,481 69, Taiwan Semiconductor 65, , , % 10% 20% 30% 9-Aug-06 6-Sep-06 4-Oct-06 1-Nov Nov Dec Jan Feb Mar Apr May Jun Jul-07 8-Aug-07 5-Sep-07 3-Oct Oct Nov Dec Jan Feb Mar Apr May Jun-08 9-Jul-08 6-Aug-08 3-Sep-08 1-Oct Oct Nov Dec Jan Feb Mar-09 Asia Pacific Growth KLCI Benchmark 15-Apr May Jun-09 8-Jul-09 5-Aug-09 2-Sep Sep Oct Nov Dec ,648 1,814,444 1,871, Telecommunications China Mobile (HK) Ltd 16, , , SK Telecom Co Ltd , , , , , Trading/Services Dialog Group Bhd 156, , , Genting Malaysia Bhd 165, , , Korea Electric Power Corp ,151 55, Tanjong plc 15, , , Tenaga Nasional Bhd 20, , , Wing Tai Holdings Ltd 70, , , ,550 1,531,455 1,458, Trust IShares MSCI China Tracker 50, , , , , , Total Equities 21,545,230 17,916,414 18,237, Asia Pacific Growth () 13

10 Active () Active () Comparative Performance Performance Table Portfolio Composition Category of Investments Comparative Performance Portfolio Composition by Sector Portfolio Composition Performance of Active Against The KLCI Since Inception Performance Table FY2009 FY2008 FY2007 Net Asset Value (NAV) (/unit) Units in circulation 3,428,280 5,596,992 5,080,850 Total NAV () 4,710,324 6,382,617 5,735,360 Highest NAV (/unit) Lowest NAV (/unit) Kuala Lumpur Composite Index Return (%) Average Annual Return - One Year Three Years 9.7 Average Annual Return - Benchmark One Year Three Years 3.9 Portfolio Composition Category of Investments FY2009 FY2008 FY2007 Fixed Income - 16% 36% Equity 26% 10% 2% Deposits & Cash 74% 74% 62% Composition of s Equity Construction - 1.3% - Consumer Products 4.0% - - Finance 3.5% 1.2% - Infrastructure 1.8% 2.0% - Plantation - 1.0% - Properties 3.7% 2.0% - Technology 2.8% - - Trading/Services 10.6% 0.5% - Trust (REIT) - 4.2% 1.9% Fixed Income Unquoted corporate debt securities of corporations % Malaysia Government securities % Fixed and call deposits 73.6% 87.8% 62.1% Portfolio Composition by Sector Not meaningful % 100.0% 100.0% 14 Active () 15

11 Active () Portfolio Composition Equities No. of Units Held Cost ( 000) Market Value ( 000) Per Cent of Net Asset Value (%) Consumer Products Tan Chong Motor Holdings Bhd 35,000 41, , UMW Holdings Bhd 12,000 74,665 76, , , , Finance Malayan Banking Bhd 15,000 98, , Public Bank Bhd 5,000 50,366 56, , , , Trading/Services BJTOTO (MK) 32, , , GENM (MK) 35,000 67,052 98, SIME (MK) 10,000 82,291 89, TANJONG (MK) 5,000 69,044 84, TENAGA (MK) 9,000 73,141 75, , , , Infrastructure Lingkaran Trans Kota Hldgs Bhd 30,000 79,682 83, ,000 79,682 83, Properties IGB Corporation Bhd 45,000 92,777 90, KLCC Property Holdings Bhd 23,000 73,862 79, , , , Technology Unisem (M) Bhd 77, , , , , , Performance of Active () Against The KLCI Since Inception (as at 9 August 2006) 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% 9-Aug-06 6-Sep-06 4-Oct-06 1-Nov Nov Dec Jan Feb-07 Active () vs Benchmark vs KLCI 21-Mar Apr May Jun Jul-07 8-Aug-07 5-Sep-07 3-Oct Oct Nov Dec Jan Feb Mar Apr May-08 Active ()) KLCI Benchmark 11-Jun-08 9-Jul-08 6-Aug-08 3-Sep-08 1-Oct Oct Nov Dec Jan Feb Mar Apr May Jun-09 8-Jul-09 5-Aug-09 2-Sep Sep Oct Nov Dec-09 Total Equities 333,142 1,058,406 1,211, Active () 17

12 Active () Active () Comparative Performance Performance Table Portfolio Composition Category of Investments Comparative Performance Portfolio Composition By Sector Portfolio Composition Performance of Active Against The KLCI Since Inception Performance Table FY2009 FY2008 FY2007 Net Asset Value (NAV) (/unit) Units in circulation 5,175,009 6,896,624 5,850,829 Total NAV () 7,486,883 7,083,635 7,783,359 Highest NAV (/unit) Lowest NAV (/unit) Kuala Lumpur Composite Index Return (%) Average Annual Return - One Year Three Years 10.1 Average Annual Return - Benchmark One Year Three Years 5.2 Composition of s Equity Construction 7.6% 14.4% 6.0% Consumer Products 3.6% 1.8% 1.1% Diversified % Finance 11.1% 8.6% 3.6% Industrial Products 15.8% 5.6% - Infrastructure % Plantation 6.3% 6.3% 8.0% Properties 4.8% 5.6% 1.9% Technology 1.7% - 0.2% Trading/Services 15.5% 11.4% 12.3% Trust (REIT) - 0.8% 1.1% Fixed Income Unquoted corporate debt securities of corporations % Fixed and call deposits 33.6% 45.5% 49.2% 100.0% 100.0% 100.0% Portfolio Composition Category of Investments FY2009 FY2008 FY2007 Equity 62% 54% 44% Fixed Income - - 6% Deposits & Cash 38% 46% 50% Portfolio Composition By Sector (as a percentage of total equity) Technology 3% Trading/Services 23% Constructions 12% Consumer Products 8% Property 6% Finance 18% Plantation 9% Industrial Products 21% 18 Active () 19

13 Active () Portfolio Composition Equities No. of Units Held Cost ( 000) Market Value ( 000) Per Cent of Net Asset Value (%) Consumer Products Tan Chong Motor Holdings Bhd 30,000 35,827 93, UMW Holdings Bhd 25, , , , , , Industrial Products Evergreen Fibreboard Bhd 103, , , Hiap Tek Venture Bhd 20,000 19,840 28, Kinsteel Bhd 250, , , KNM Group Bhd 150, , , Lingui Developments Bhd 180, , , Malaysia Steel Works (KL) Bhd 64,000 74,589 63, Petronas Gas Bhd 15, , , Ta Ann Holdings Bhd 40, , , ,200 1,205,377 1,103, Constructions IJM Corporation Bhd 30,400 57, , IJM Corporation Bhd - Warrant C 5,040 1,260 5, Malaysian Resources Corp Bhd 75, , , WCT Bhd 109, , , WCT Bhd - Warrant B 7,644 1,911 4, , , , Finance CIMB Bhd 20, , , Malayan Banking Bhd 40, , , Public Bank Bhd 22, , , , , , Equities No. of Units Held Cost ( 000) Market Value ( 000) Per Cent of Net Asset Value (%) Trading/Services Astro All Asia Networks plc 27,500 96,416 82, Genting Malaysia Bhd 91, , , Pantech Group Holdings Bhd 100,000 95,217 90, Sime Darby Bhd 35, , , Tanjong plc 15, , , Tenaga Nasional Bhd 10,000 65,437 84, ,000 1,071,076 1,087, Properties IGB Corporation Bhd 80, , , IJM Land Bhd 45, , , TA Global Bhd 90,000 45,000 40, TA Global Bhd - ICPS 90,000 45,000 31, , , , Plantation IOI Corporation Bhd 21,546 96, , Kuala Lumpur Kepong Bhd 16, , , TSH Resources Bhd 25,000 34,660 49, , , , Technology Unisem (M) Bhd 71, , , , , , Total Equities 1,905,411 4,305,735 4,647, Active () 21

14 ( ) Performance of Active () Against The KLCI Since Inception (as at 9 August 2006) 65% 60% 55% 50% Active () vs Benchmark vs KLCI ( ) Performance Table Portfolio Composition Category of Investments Comparative Performance Portfolio Composition By Sector Portfolio Composition Performance of Against The KLCI Since Inception 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% 9-Aug-06 6-Sep-06 4-Oct-06 1-Nov Nov Dec Jan Feb Mar Apr May Jun Jul-07 8-Aug-07 5-Sep-07 3-Oct Oct Nov Dec Jan Feb Mar Apr May Jun-08 9-Jul-08 6-Aug-08 3-Sep-08 1-Oct Oct Nov Dec Jan Feb Mar Apr May-09 Active () KLCI Benchmark 10-Jun-09 8-Jul-09 5-Aug-09 2-Sep Sep Oct Nov Dec-09 Performance Table FY2009 FY2008 FY2007 Net Asset Value (NAV) (/unit) Units in circulation 4,138,102 5,731,579 5,290,270 Total NAV () 5,669,431 5,664,917 6,959,830 Highest NAV (/unit) Lowest NAV (/unit) Kuala Lumpur Composite Index Return (%) Average Annual Return - One Year Three Years 8.4 Average Annual Return - Benchmark One Year Three Years 4.8 Portfolio Composition Category of Investments FY2009 FY2008 FY2007 Equity 60% 53% 43% Deposits & Cash 40% 47% 57% 22 Active () 23

15 ( ) Comparative Performance Portfolio Composition Composition of s Equity Basic Material % Construction 7.6% 12.7% 6.6% Consumer Products 7.7% 5.1% - Industrial Products 13.6% 8.8% 9.3% Infrastructure - 2.4% 1.6% Plantation 9.1% 7.5% 9.2% Properties 4.8% 8.1% 2.1% Technology 2.8% - 0.3% Trading/Services 20.2% 4.3% 11.5% Trust (REIT) - 3.7% - Fixed Income Fixed and call deposits 34.3% 47.3% 57.6% 100.0% 100.0% 100.0% Equities Consumer Products No. of Units Held Cost ( 000) Market Value ( 000) Per Cent of Net Asset Value (%) PPB Group Bhd 20, , , UMW Holdings Bhd 13,000 76,689 82, Industrial Products 33, , , Evergreen Fibreboard Bhd 108, , , Hiap Tek Venture Bhd 20,000 19,840 28, Kinsteel Bhd 200, , , KNM Group Bhd 211, , , Petronas Gas Bhd 10,000 98,337 98, Ta Ann Holdings Bhd 18, ,303 87, , , , Portfolio Composition By Sector (as a percentage of total equity) Trading/Services 31% Technology 4% Properties 7% Plantation 14% Construction 11% Consumer Products 12% Industrial Products 21% Constructions IJM Corporation Bhd 22,000 46,429 98, IJM Corporation Bhd - Warrant C 4,200 1,050 4, Malaysian Resources Corp Bhd 65,000 86,757 89, WCT Bhd 75, , , WCT Bhd - Warrant B 7,955 1,989 4, Trading/Services 175, , , Axiata Bhd 50, , , Dialog Group Bhd 168, , , Pantech Group Holdings Bhd 75,000 71,413 67, Sime Darby Bhd 40, , , Tenaga Nasional Bhd 30, , , , ,984 1,053, ( ) 25

16 ( ) Equities Properties No. of Units Held Cost ( 000) Market Value ( 000) Per Cent of Net Asset Value (%) IJM Land Bhd 91, , , KLCC Property Holdings Bhd 10,000 28,999 34, , , , Plantation IOI Corporation Bhd 42, , , Kuala Lumpur Kepong Bhd 11, , , Kim Loong Resources Bhd 14,000 26,907 29, TSH Resources Bhd 15,000 20,838 29, , , , Technology Unisem (M) Bhd 90, , , , , , Performance of ( ) Against The KLCI Since Inception (as at 9 August 2006) 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% 9-Aug-06 6-Sep-06 4-Oct-06 1-Nov Nov Dec Jan-07 ( ) vs Benchmark vs KLCI 21-Feb Mar Apr May Jun Jul-07 8-Aug-07 5-Sep-07 3-Oct Oct Nov Dec Jan Feb Mar Apr May-08 ( ) KLCI Benchmark 11-Jun-08 9-Jul-08 6-Aug-08 3-Sep-08 1-Oct Oct Nov Dec Jan Feb Mar Apr May Jun-09 8-Jul-09 5-Aug-09 2-Sep Sep Oct Nov Dec-09 Total Equities 1,412,618 2,928,039 3,429, ( ) 27

17 Statement of Assets and Liabilities Statement of Assets and Liabilities Statement of Assets and Liabilities as at 31 December 2009 Note Securities held for trading: 3a Equity securities, quoted in Malaysia 5,304,971 1,211,568 4,647,402 3,429,374 Equity securities, quoted outside Malaysia 12,461, Unit trust, quoted outside Malaysia 470, Fixed and call deposits 3c - 3,375,259 2,354,372 1,788,974 18,237,407 4,586,827 7,001,774 5,218,348 Tax recoverable ,710 26,369 Interest and dividend receivable 1,968 2,825 7,170 3,277 Cash and bank balances 3,603, , , ,383 3,605, , , ,029 Total assets 21,843,006 4,841,398 7,726,621 5,876,377 Deferred tax liabilities 4 (22,093) (9,555) (27,334) (40,107) Other payables (1,042,572) (109,768) (186,641) (142,831) Amount due to Manager (85,764) (11,751) (25,763) (23,008) Current tax liabilities (198,006) Total liabilities (1,348,435) (131,074) (239,738) (206,946) Net asset value of fund 20,494,571 4,710,324 7,486,883 5,669,431 Represented by: Policyholders capital 5 14,301,454 3,188,145 5,288,589 3,841,935 Undistributed income carried forward 6,193,117 1,522,179 2,198,294 1,827,496 20,494,571 4,710,324 7,486,883 5,669,431 Units in circulation 5 15,625,361 3,428,280 5,175,009 4,138,102 Net asset value per unit The accompanying notes form an integral part of these financial statements. Statement of Assets and Liabilities as at 31 December 2008 Note Investments: 3b Malaysian Government securities - 1,005, Equity securities, quoted in Malaysia 4,640, ,612 3,771,935 2,790,009 Equity securities, quoted outside Malaysia 10,220, Unit trust, quoted in Malaysia 161, ,490 54, ,500 Unit trust, quoted outside Malaysia 1,093, Fixed and call deposits 3c 1,283,683 4,646,837 3,196,049 2,701,070 17,399,662 6,296,939 7,022,274 5,704,579 Deferred tax assets 4 605,317 22, , ,592 Interest and dividend receivable 146,614 29,474 68,766 43,770 Amount due from Manager - 289,697 8,150 - Cash and bank balances 1,091,492 69,181 9,702 1,133 1,843, , , ,495 Total assets 19,243,085 6,707,514 7,234,969 5,870,074 Other payables (313,303) (259,583) (47,726) (29,307) Amount due to Manager (467,187) - - (72,905) Current tax liabilities (295,795) (65,314) (103,608) (102,945) Total liabilities (1,076,285) (324,897) (151,334) (205,157) Net asset value of fund 18,166,800 6,382,617 7,083,635 5,664,917 Represented by: Policyholders capital 5 22,004,259 5,566,670 7,140,981 5,704,975 (Accumulated losses)/ undistributed income carried forward (3,837,459) 815,947 (57,346) (40,058) 18,166,800 6,382,617 7,083,635 5,664,917 Units in circulation 5 22,413,129 5,596,992 6,896,624 5,731,579 Net asset value per unit The accompanying notes form an integral part of these financial statements. 28 Statement of Assets and Liabilities 29

18 Statement of Income and Expenditure Statement of Income and Expenditure Statement of Income and Expenditure for the Financial Year ended 31 December 2009 Statement of Income and Expenditure for the Financial Year ended 31 December 2008 Note Investment income: Interest income 39, ,138 76,323 60,406 Dividend income 677,435 64, , ,083 Unrealised capital gain on investments 7,887, ,847 1,917,623 2,008,749 Realised foreign exchange gains 259, Net realised gains on disposal of investments 2,313, , ,125 - Total income 11,178, ,578 2,526,464 2,174,238 Net realised loss on disposal of investments (81,200) Management fees (237,192) (37,936) (74,684) (63,090) Total expenses (237,192) (37,936) (74,684) (144,290) Net income before taxation 10,940, ,642 2,451,780 2,029,948 Current tax (282,822) (29,632) (42,730) (1,695) Deferred tax (627,410) (31,778) (153,410) (160,699) Net income after taxation 10,030, ,232 2,255,640 1,867,554 (Accumulated losses)/ undistributed income brought forward (3,837,459) 815,947 (57,346) (40,058) Undistributed income carried forward 6,193,117 1,522,179 2,198,294 1,827,496 The accompanying notes form an integral part of these financial statements. Note Investment income: Interest income 84, , , ,925 Dividend income 698,950 46, , ,163 Net realised gain on disposal of investments - 117,457 2, ,127 Total income 783, , , ,215 Amortisation of premiums - (1,273) (3,494) - Unrealised capital loss on investments (9,693,638) (242,536) (2,238,420) (2,194,027) Realised foreign exchange losses (373,122) Net realised loss on disposal of investments (801,021) Management fees (175,777) (30,394) (60,016) (50,145) Total expenses (11,043,558) (274,203) (2,301,930) (2,244,172) Net (loss)/income before taxation (10,260,276) 116,510 (1,997,662) (1,841,957) Current tax (11,717) (13,438) (19,635) (28,341) Deferred tax 789,415 21, , ,522 Net (loss)/income after taxation (9,482,578) 124,217 (1,838,224) (1,694,776) Undistributed income brought forward 5,645, ,730 1,780,878 1,654,718 (Accumulated losses)/ undistributed income carried forward (3,837,459) 815,947 (57,346) (40,058) The accompanying notes form an integral part of these financial statements. 30 Statement of Income and Expenditure 31

19 Statement of Changes in Net Asset Value Statement of Changes in Net Asset Value Statement of Changes in Net Asset Value for the Financial Year ended 31 December 2009 Net asset value at beginning of the financial year 18,166,800 6,382,617 7,083,635 5,664,917 Movement due to units created and cancelled during the financial period: Net creation of units 3,772, ,172 1,712,892 1,179,050 Net cancellation of units (11,475,336) (3,135,697) (3,565,284) (3,042,090) (7,702,805) (2,378,525) (1,852,392) (1,863,040) Net income for the financial year: Net realised income 2,770, , ,427 19,504 Unrealised gain on investments, net of tax 7,260, ,069 1,764,213 1,848,050 10,030, ,232 2,255,640 1,867,554 Net asset value at end of the financial year 20,494,571 4,710,324 7,486,883 5,669,431 Statement of Changes in Net Asset Value for the Financial Year ended 31 December 2008 Net asset value at beginning of the financial year 27,304,418 5,735,360 7,783,359 6,959,830 Movement due to units created and cancelled during the financial period: Net creation of units 578, ,633 1,273, Net cancellation of units (233,981) (15,593) (135,142) (109,000) 344, ,040 1,138, ,863 Net income for the financial period: Net realised (loss)/income (578,355) 345, , ,731 Unrealised loss on investments, net of tax (8,904,223) (221,391) (2,059,346) (2,018,507) (9,482,578) 124,217 (1,838,224) (1,694,776) Net asset value at end of the financial year 18,166,800 6,382,617 7,083,635 5,664, Statement of Changes in Net Asset Value 33

20 Cash Flow Statement Cash Flow Statement Cash Flow Statement for the Financial Year ended 31 December 2009 Cash Flow Statement for the Financial Year ended 31 December 2008 CASH FLOW FROM OPERATING ACTIVITIES Proceeds from disposal of investments 27,737,715 2,466,336 6,111,207 5,378,846 Purchase of investments (19,397,965) (2,410,897) (4,659,636) (3,877,181) Decrease in fixed and call deposits 1,283,683 1,271, , ,096 Decrease in receivables - 289,697 8,150 - Increase in payables 556, , ,028 45,334 Interest income received 39, ,684 76,000 60,406 Dividend income received 686,597 65, , ,447 Payment of fund expenses (310,566) (36,493) (78,729) (8,649) Tax paid (380,611) (95,320) (151,048) (131,009) Net cash inflow from operating activities 10,214,944 2,560,716 2,555,657 2,490,290 CASH FLOW FROM FINANCING ACTIVITIES Cash proceeds from units created 3,772, ,172 1,712,892 1,179,050 Cash paid on units cancelled (11,475,336) (3,135,697) (3,565,284) (3,042,090) Net cash outflow from financing activities (7,702,805) (2,378,525) (1,852,392) (1,863,040) Net increase in cash and cash equivalents 2,512, , , ,250 Cash and cash equivalents at beginning of the financial year 1,091,492 69,181 9,702 1,133 Cash and cash equivalents at end of the financial year 3,603, , , ,383 Cash and cash equivalents comprise: Cash and bank balances 3,603, , , ,383 CASH FLOW FROM OPERATING ACTIVITIES Proceeds from disposal of investments 12,382,675 3,466,186 3,978,511 3,266,069 Purchase of investments (19,105,530) (3,100,511) (6,086,246) (5,297,645) Decrease/(increase) in fixed and call deposits 3,220,964 (1,136,584) 635,086 1,353,654 Increase in receivables - (284,991) (8,150) - Increase in payables 271, ,307 37,540 20,039 Interest income received 84, , ,419 69,155 Dividend income received 552,336 35,191 71, ,933 Payment of fund expenses 233,644 (30,394) (159,520) (799) Tax paid (32,256) (1,652) (8,202) (8,511) Net cash outflow from operating activities (2,392,344) (548,663) (1,344,431) (410,105) CASH FLOW FROM FINANCING ACTIVITIES Cash proceeds from units created 578, ,633 1,273, ,863 Cash paid on units cancelled (233,981) (15,593) (135,142) (109,000) Net cash inflow from financing activities 344, ,040 1,138, ,863 Net decrease in cash and cash equivalents (2,047,384) (25,623) (205,931) (10,242) Cash and cash equivalents at beginning of the financial year 3,138,876 94, ,633 11,375 Cash and cash equivalents at end of the financial period 1,091,492 69,181 9,702 1,133 Cash and cash equivalents comprise: Cash and bank balances 1,091,492 69,181 9,702 1, Cash Flow Statement 35

21 Notes to Financial Statements Notes to Financial Statements - 31 December 2009 Notes to Financial Statements - 31 December 2009 (Continued) 1 PRINCIPAL ACTIVITIES AND GENERAL INFOATION The principal activities of Asia Pacific Growth ( ), Active ( ), Active ( ) and ( ) (hereinafter referred to collectively as the s ) are to invest in authorised investments. The Asia Pacific Growth ( ) which commenced on 9 August 2006, seeks high capital growth over the medium to long-term period through investments in situational and high growth stocks. The Active ( ) which commenced on 9 August 2006, aims to provide a steady stream of income through investment in money market and private debt securities with limited exposure to equities. The Active ( ) which commenced on 9 August 2006, aims to provide a steady income and capital growth over the medium to long-term period. The ( ) which commenced on 9 August 2006, aims to provide a steady income and capital growth over the medium to long-term period by investing in a portfolio of investments that complies with Syariah requirements. The Manager of the s is AXA AFFIN Life Insurance Berhad, a company incorporated in Malaysia, whose principal activity consist of the underwriting of life insurance business, including investment-linked business. The financial statements were authorised for issue by the Board of Directors of the Manager in accordance with their resolution dated 16 March SIGNIFICANT ACCOUNTING POLICIES The following accounting policies have been used consistently in dealing with items which are considered material in relation to the financial statements. (a) Basis of preparation The financial statements of the s have been prepared under the historical cost convention except for investments which are stated at fair value as disclosed in the significant accounting policies. The financial statements comply with Financial Reporting Standards ( FRS ), the MASB Approved Accounting Standards in Malaysia for Entities Other than Private Entities, the Insurance Act, 1996 and Guidelines/Circulars issued by Bank Negara Malaysia (BNM). 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (a) Basis of preparation (Continued) Standards that are relevant and applicable to the s but not yet effective The following standards will be effective for annual period beginning on or after 1 January The s will apply these standards from financial periods beginning on 1 January The s has applied the transitional provision in the respective standards which exempts entities from disclosing the possible impact arising from the initial application of the standard on the financial statements of the s. FRS 139 Financial Instruments: Recognition and Measurement FRS 7 Financial Instruments: Disclosures (b) Use of estimates and judgements The preparation of financial statements in conformity with FRS requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported year. It also requires Directors to exercise their judgement in the process of applying the Company s accounting policies. Although these estimates and judgement are based on the Directors best knowledge of current events and actions, actual results may differ. However, the Directors are of the opinion that there are currently no areas where assumptions and estimates that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year and no accounting policies which requires significant judgement to be exercised. (c) Foreign currency Functional and presentation currency These financial statements are presented in Ringgit Malaysia (), which is the s functional currency. Foreign currency transactions Transactions in foreign currencies are retranslated to the functional currency using the exchange rates prevailing at the dates of the transaction. Foreign currency gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of income and expenditure. 36 Notes to Financial Statements 37

22 Notes to Financial Statements Notes to Financial Statements - 31 December 2009 (Continued) Notes to Financial Statements - 31 December 2009 (Continued) 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (d) Securities held-for-trading ( HFT ) Securities held under the investment-linked business are classified as HFT. Securities are classified as HFT if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term or it is part of a portfolio of identified securities that are managed together and for which there is evidence of a recent actual pattern of short term profit taking. Securities HFT are stated at fair value, and any gain or loss arising from a change in the fair value is recognised in the income statements/revenue accounts. Interest from the securities HFT, calculated using the effective interest method, is recognised in the income statements/revenue accounts. (e) Investments Quoted investments are valued at the market price quoted on any stock exchange as at the last transacted price available on the relevant stock exchange on the valuation date. If no traded price is available, the last available closing price as at the valuation date will be used. The unrealised gains and losses as a result of marking to market the quoted investments are recognised in the statement of income and expenditure. Unquoted investments are stated at cost adjusted for the amortisation of premiums or accretion of discounts, at the date of purchase using the effective yield method. The carrying values of the unquoted investments are subsequently revalued to reflect its fair value by using the quotation from brokers. The unrealised gains and losses on revaluation of the unquoted investments are recognised in the statement of income and expenditure. Investment in unit trusts, mutual funds or other such collective investments are priced using the last published price available on valuation date. (f) Receivables Receivables are initially recognised at their cost when the contractual right to receive cash or another financial asset from another entity is established. Subsequent to initial recognition, receivables are stated at cost less allowance for doubtful debts. 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (g) Payables Payables are measured initially and subsequently at cost. Payables are recognised when there is a contractual obligation to deliver cash or another financial asset to another entity. (h) Net creation of units Net creation of units represents premiums paid by policyholders as payment for new contract or subsequent payments to increase the amount of that contract. Net creation of units is recognised on a receipt basis. (i) Net cancellation of units Net cancellation of units represents cancellation of units arising from surrenders and withdrawals by policyholders. Cancellation is recognised upon surrendering of the related insurance contract. (j) Income recognition Interest income, including the amount of amortisation of premiums and accretion of discounts, is recognised on a time proportion basis that takes into account the effective yield of the asset. Dividend income is recognised when the right to receive payment is established. Gains or losses arising from disposal of investments are credited or charged to the statement of income and expenditure. (k) Income taxes Current tax expense is determined according to the tax laws of the jurisdiction in which the s operate and include all taxes based upon the taxable profits. Deferred tax is recognised in full, using the liability method, on temporary differences arising between the amounts attributed to assets and liabilities for tax purpose and their carrying amounts in the financial statements. However, deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences or unused tax losses can be utilised. 38 Notes to Financial Statements 39