Fund Information. Fund Name. Fund Category. Fund Investment Objective. Fund Performance Benchmark. Fund Distribution Policy. Foreign Exchange Rate

Transcription

1 Fund Information Fund Name (PDSF) Fund Category Equity Fund Investment Objective To provide steady recurring income by investing in a portfolio of stocks which offer or have the potential to offer attractive dividend yields*. * Stocks which offer attractive dividend yields refer to stocks with consistency in rewarding shareholders via dividend payouts. Fund Performance Benchmark The benchmarks of the Fund and their respective percentages are 90% FTSE Bursa Malaysia Top 100 Index (FBM 100) and 10% 3-Month Kuala Lumpur Interbank Offered Rates (KLIBOR). The PDSF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited ( FTSE ) or by Bursa Malaysia Berhad ( BURSA MALAYSIA ) or by the London Stock Exchange Group companies (the LSEG ) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA TOP 100 INDEX ( the Index ), and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. FTSE, FT-SE and Footsie are trade marks of LSEG and are used by FTSE under licence. BURSA MALAYSIA is a trade mark of BURSA MALAYSIA. Fund Distribution Policy Semi-annual Foreign Exchange Rate With effect from 5 January 2017, all foreign securities and assets are converted into Malaysian Ringgit ( MYR ) based on the bid exchange rate quoted by Thomson Reuters at United Kingdom time 4:00 p.m. the same day. Revision of Transfer Charges and Switching Fees with effect from 1 January 2018 With effect from 1 January 2018, transfer charges and switching fees for switching transactions made after 90 days will be revised as follows: i) Administration fee of up to RM50 will be charged for each transfer transaction. ii) Switching fee of up to RM50 will be imposed for switching transactions out of the fund.

2 Fund Information Fund Performance Breakdown of Unitholdings of PDSF as at 31 May 2017 Size of holdings No. of % of No. of units unitholders unitholders held (million) 5,000 and below 8, ,001 to 10,000 12, ,001 to 50,000 51, ,355 50,001 to 500,000 37, , ,001 and above 1, Total 111, ,043 Note: Excluding Manager s Stock. Fund Performance Average Total Return for the Following Years Ended 31 May 2017 Average Total Return of PDSF (%) 1 Year Years Years 5.17 Annual Total Return for the Financial Years Ended 31 May Year PDSF (%) The calculation of the above returns is based on computation methods of Lipper. Notes: 1. Total return of the Fund is derived by this formulae: End of Period FYCurrent Year NAV per ( End of Period FYPrevious Year NAV per unit) (Adjusted for unit split and distribution paid out for the period) The above total return of the Fund was sourced from Lipper. 2. Average total return is derived by this formulae: Total Return Number of Years Under Review - 1 Other Performance Data for the Past Three Financial Years Ended 31 May Unit Prices (MYR)* Highest NAV per unit for the year Lowest NAV per unit for the year Net Asset Value (NAV) and Units in Circulation (UIC) as at the End of the Year Total NAV (MYR 000) 1,936,666 1,838,421 1,776,463 UIC (in 000) 7,043,968 7,162,853 6,466,217 NAV per unit (MYR) Total Return for the Year (%) Capital growth (%) Income (%) Management Expense Ratio (%) Portfolio Turnover Ratio (time) * All prices quoted are ex-distribution. Notes: Management Expense Ratio is calculated by taking the total management expenses expressed as an annual percentage of the Fund s average net asset value. Portfolio Turnover Ratio is calculated by taking the average of the total acquisitions and disposals of the investments in the Fund for the year over the average net asset value of the Fund calculated on a daily basis. The Portfolio Turnover Ratio for the financial year 2017 dropped to 0.25 time from 0.33 time in the previous financial year on account of lower level of rebalancing activities performed by the Fund during the year. Distribution and Unit Split Financial year Date of distribution Final Interim Final Interim Final Interim Distribution per unit Gross (sen) Net (sen) Unit split Impact on NAV Arising from Distribution (Interim & Final) for the Financial Years Final Interim Final Interim Final Interim Sen Sen Sen Sen Sen Sen per unit per unit per unit per unit per unit per unit Net asset value before distribution Less: Net distribution per unit (0.30) (0.30) (0.25) (0.50) (1.00) (0.99) Net asset value after distribution Past performance is not necessarily indicative of future performance and unit prices and investment returns may go down, as well as up.

3 Fund Performance Fund Performance Asset Allocation for the Past Three Financial Years As at 31 May (Per Cent of Net Asset Value) % % % EQUITY SECURITIES Quoted Malaysia Basic Materials Communications Consumer, Cyclical Consumer, Non-cyclical Diversifi ed Energy Financial Industrial Technology Utilities Outside Malaysia Hong Kong Financial Korea Technology Singapore Consumer, Non-cyclical Taiwan Technology United States Communications Technology TOTAL QUOTED EQUITY SECURITIES COLLECTIVE INVESTMENT FUNDS Quoted Malaysia Financial Outside Malaysia Hong Kong Funds TOTAL QUOTED COLLECTIVE INVESTMENT FUNDS WARRANTS Quoted Malaysia Warrants TOTAL QUOTED WARRANTS Asset Allocation for the Past Three Financial Years (cont d) As at 31 May (Per Cent of Net Asset Value) % % % COLLECTIVE INVESTMENT SCHEMES Unquoted Funds TOTAL UNQUOTED COLLECTIVE INVESTMENT SCHEMES FIXED INCOME SECURITIES Unquoted Ringgit-denominated Redeemable Non-convertible Bonds TOTAL UNQUOTED FIXED INCOME SECURITIES DEPOSITS WITH FINANCIAL INSTITUTIONS OTHER ASSETS & LIABILITIES

4 Statement Of Distribution Of Returns Manager s Report Interim Final Sen Per Unit Sen Per Unit Gross Distribution Net Distribution Total Returns Effects of Distribution on NAV per unit before and after Distribution: Interim Final Before After Before After Distribution Distribution Distribution Distribution NAV per unit (MYR) Overview This Annual Report covers the financial year from 1 June 2016 to 31 May (PDSF or the Fund) aims to provide steady recurring income by investing in a portfolio of stocks which offer or have the potential to offer attractive dividend yields. For the financial year under review, the Fund registered a return of +9.53% as compared to its Benchmark s return of +9.52%. The Fund s equity portfolio registered a return of % while its bond and money market portfolios registered returns of +3.69% and +3.10% respectively during the financial year under review. A detailed performance attribution analysis is provided in the sections below. For the five financial years ended 31 May 2017, the Fund generated a total return of % and outperformed its Benchmark s return of % over the same period. As the Fund has made distributions for each of its respective financial years, the Manager is of the opinion that the Fund has met its objective to provide steady recurring income over the said period. Performance of PDSF from 31 May 2012 to 31 May % PDSF BENCHMARK Returns from Start of Period 20% 10% 0% -10% The Fund s Benchmark is a composite index of 90% FTSE Bursa Malaysia Top 100 Index (FBM 100) and 10% 3-Month Kuala Lumpur Interbank Offered Rate (KLIBOR). Income Distribution and Impact on NAV Arising from Distribution The total cumulative gross distribution of 0.60 sen per unit (net distribution of 0.60 sen per unit) for the fi nancial year ended 31 May 2017 had the effect of reducing the Net Asset Value (NAV) of the Fund after distribution. For example, the gross distribution of 0.30 sen per unit (net distribution of 0.30 sen per unit) declared for the month of May 2017 has reduced the NAV per unit of the Fund to RM from RM after distribution.

5 Manager s Report Manager s Report Effect of Distribution Reinvestment on Portfolio Exposures 31-May-17 Before Distribution After Distribution Reinvestment* Reinvestment* Equities & Related Securities 95.9% 94.9% Bonds & Other Fixed Income Securities 1.1% 1.0% Money Market 3.0% 4.1% * Assumes full reinvestment. Change in Portfolio Exposures from 31-May-16 to 31-May-17 Average 31-May May-17 Change Exposure Equities & Related Securities 84.4% 94.9% +10.5% 90.06% Bonds & Other Fixed Income Securities 0.5% 1.0% +0.5% 0.79% Money Market 15.1% 4.1% -11.0% 9.15% Returns Breakdown by Asset Class Market / Returns On Benchmark Benchmark Average Attributed Investments Returns Index Used Exposure Returns Equities & Related Securities 12.19% 10.19% FBM % 10.98% Bonds & Other Fixed Income Securities 3.69% 4.10% Bond Index 0.79% 0.03% Money Market 3.10% 3.18% 1M-KLIBOR 9.15% 0.28% less: Expenses -1.76% Total Net Return for the Year 9.53% FBM 100 = FTSE Bursa Malaysia Top 100 Index Bond Index = Quant Shop MGS All Index 1M-KLIBOR = 1-Month Kuala Lumpur Interbank Offered Rate Equity Portfolio Review For the fi nancial year under review, the Fund s equity portfolio registered a return of % and outperformed the equity Benchmark s return of %. The Fund s equity portfolio outperformed the equity Benchmark as it was overweighted in selected Financial and Technology stocks which outperformed the broad market during the financial year under review. The Fund commenced the fi nancial year under review with an equity exposure of 84.4%. The Fund s equity exposure was subsequently increased to above 90.0% in November 2016 to capitalise on investment opportunities in the domestic and regional markets. The Fund ended the fi nancial year under review with an equity exposure of 94.9%. Based on an average equity exposure of 90.06% over the fi nancial year under review, the Fund s equity portfolio is deemed to have registered a return of % to the Fund as a whole for the fi nancial year under review. A full review of the performance of the equity markets is tabled in the following sections. Sector Allocation In terms of sector allocation within the equity portfolio, the top 5 sectors accounted for 70.7% of the NAV of the Fund and 73.7% of the Fund s equity portfolio. The weightings of the top 5 sectors in Malaysia (unless otherwise indicated) are in the following order: Financial (31.0%), Consumer, Noncyclical (12.7%), Consumer, Cyclical (10.2%), Communications (9.0%) and Diversifi ed (7.8%). Bonds and Other Fixed Income Securities Portfolio Review For the fi nancial year under review, the Fund s bond portfolio registered a return of +3.69%. In comparison, the Quant Shop MGS All Index which tracks the performance of all Malaysian Government Securities (MGS) with maturities of 1 year and above, registered a return of +4.10% over the same period. The returns of the Fund s bond portfolio lagged the Quant Shop MGS All Index due to the Fund s holdings of shorter-tenured bonds. During the fi nancial year under review, the Fund s bond exposure increased from 0.5% to 1.0% as the Fund continued to capitalise on investment opportunities in the bond market. Based on an average exposure of 0.79%, the bond portfolio is estimated to have contributed +0.03% to the Fund s overall return for the fi nancial year under review. For a full review of the bond market, please refer to the following sections of this report. Money Market Portfolio Review During the fi nancial year under review, the Fund s money market portfolio, which was invested primarily in deposits, yielded a return of +3.10%. In comparison, the 1-Month Kuala Lumpur Interbank Offered Rate (1M-KLIBOR) registered a return of +3.18% over the same period. During the fi nancial year under review, the Fund s exposure to money market investments decreased from 15.1% to 4.1% as funds were mobilised into equity and bond investments. Based on an average exposure of 9.15%, the money market portfolio is estimated to have contributed +0.28% to the Fund s overall return for the fi nancial year under review. Stock Market Review Starting the fi nancial year under review at 1, points, the FTSE Bursa Malaysia KLCI (FBM KLCI) moved lower in mid-june 2016 due to uncertainties arising from Britain s referendum to exit the European Union (EU). The market started to recover in July, driven by buoyant global markets and the unexpected move by Bank Negara Malaysia (BNM) to reduce the Overnight Policy Rate (OPR) by 25 basis points (bps).

6 Manager s Report Manager s Report The FBM KLCI continued to climb higher in mid-august amid higher oil prices and firmer regional markets. The Index subsequently eased on the back of lacklustre global sentiment and weak corporate earnings for the second quarter of This prompted profit-taking activities in September and the market remained in a tight trading range in October. Investor sentiment turned cautious ahead of the U.S. presidential election in November Despite initial concerns over a Trump presidency, the U.S. market rallied on expectations that the new president would deliver on his pledges of fiscal stimulus and deregulation of the financial market. For the Malaysian market, foreign fund outflows continued in November amid anticipation of a rising interest rate environment in the U.S. going forward. However, the market trended up in December in tandem with rising oil prices. The FBM KLCI moved higher in January 2017, largely due to positive sentiment arising from the new U.S. president s pro-growth policies. The positive sentiment continued with the FBM KLCI surpassing the psychological level of 1,700 points in mid-february. After some profit-taking activities towards the end of February, the Index rebounded and resumed its uptrend on the back of strong buying interest from foreign investors in March and April. The Index rose further to touch a 2-year intraday high of 1, points in mid-may 2017, before retracing to close at 1, points and register a gain of 8.60% for the financial year under review. Index 1,830 1,790 1,750 1,710 1,670 1,630 1,590 1,550 May-16 FTSE Bursa Malaysia KLCI (31 May May 2017) Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 The regional equity markets, as proxied by the Morgan Stanley Capital International All Countries Far-East Ex-Japan (MSCI FExJ) Index, commenced the financial year under review at points. The Index traded range-bound in June 2016 as the U.S. Federal Reserve s decision to keep interest rates unchanged came in within market expectations. The MSCI FExJ Index rallied in the third quarter of 2016 on improving economic momentum in China and expectations of further delays in U.S. interest rate hikes. Regional markets retraced marginally in October on concerns over weakness in the Chinese Renminbi. The unexpected result of the U.S. presidential election led to further consolidation in most regional markets in November and December as funds fl owed back to developed markets. The MSCI FExJ Index started 2017 on a stronger note, supported by a weaker U.S. Dollar and better economic data from China. Resilient corporate earnings supported the regional markets in March and April. The Index advanced further in May 2017 to close at points, registering a gain of 25.87% (+30.48% in Ringgit terms) for the fi nancial year under review. Regional markets, namely the Taiwan, Korea, Hong Kong, Indonesia and Singapore markets registered returns of %, %, %, % and % (in Ringgit terms) respectively for the fi nancial year under review. Commencing the fi nancial year under review at 2, points, the U.S. equity market, as proxied by the S&P 500 Index, declined in June 2016 due to the unexpected Brexit voting result. The Index subsequently recovered in July on expectations of further delays in U.S. interest rate hikes and more loosening policies by central banks around the world amid concerns over a slowing global economy. The Index traded range-bound through August but declined ahead of two key central bank meetings in the U.S. and Japan in September The U.S. Federal Reserve s decision to keep interest rate hikes on hold resulted in a mild rebound in the U.S. market, led by interest rate-sensitive sectors such as utilities and telecommunication services. The S&P 500 Index eased in October following lacklustre corporate earnings and mixed economic data. The Index subsequently rose in November as the market rallied on expectations that the new U.S. president would deliver on his pledges of fi scal stimulus and deregulation of the fi nancial market. The Index continued to fi rm in December amid expectations of an improved U.S. economic outlook. During the month, the U.S. market was lifted by energy stocks from higher oil prices. The S&P 500 Index traded higher in January and February 2017 after President Trump promised to release a tax reform plan in the near term, but subsequently traded lower due to a setback on the new administration s healthcare plan in late March. Led by reduced political uncertainties following the market-friendly outcome of the French presidential election coupled with strong U.S. corporate earnings, the Index moved higher in April and May. The S&P 500 Index closed at 2, points in May 2017 to register a gain of 15.01% (+19.22% in Ringgit terms) for the fi nancial year under review.

7 Manager s Report Manager s Report Bond Market and Money Market Review The domestic bond market rallied towards the end of June 2016 following the Brexit vote as expectations of higher U.S. interest rates diminished due to heightened uncertainties in the global economic outlook. The market strengthened further in July following a reduction in the OPR from 3.25% to 3.00% on 13 July 2016, and remained well-supported in August amid subdued inflationary pressures in July and a moderating economic growth of 4.0% in 2Q The domestic bond market traded on a cautious tone in tandem with the weaker Ringgit amid uncertainties ahead of key meetings held by various global central banks in September In late October, the domestic bond market consolidated following the pullback in U.S. Treasuries as expectations of a Federal funds rate hike in December heightened. The market consolidation deepened following the unexpected outcome of the U.S. presidential election in November 2016, which spurred expectations of rising infl ation and interest rates under the new U.S. administration s aggressive expansionary fiscal plans. Most emerging market currencies and bond prices retraced amid concerns of capital outflows on expectations of higher U.S. interest rates. Aided by a rebound in crude oil prices, the domestic bond market staged a mild recovery in December 2016, which was sustained through January 2017 alongside a firmer Ringgit. The domestic bond market was mixed in February with the yields of long-tenured Malaysian Government Securities (MGS) trending lower due to firmer U.S. Treasuries. Domestic bonds were steadily traded following the Federal Open Market Committee (FOMC) meeting on March, where the U.S. Federal Reserve hiked the Federal funds rate by 25 bps to a range of 0.75%-1.00%. However, the buying eased towards the end of March as the domestic infl ation rate touched a high of 4.5% in February. The domestic bond market subsequently rebounded in April 2017 on the back of a stronger Ringgit. Domestic bonds continued to strengthen in May driven by the firmer Ringgit and the release of a better-than-expected 1Q 2017 GDP growth of 5.6% and a slightly lower April s Consumer Price Index (CPI) of 4.4%. For the fi nancial year under review, the yield of 3-year MGS rose by 4 bps to 3.29%, while the yield of 10-year MGS eased by 4 bps to 3.88%. The 1-Month Bank Negara Weighted Average Interbank Rate eased from 3.33% to 3.09%, averaging at 3.12% during the financial year under review following the 25 bps cut in the OPR. Economic Review Malaysia s GDP growth gained pace from 4.2% in 2016 to 5.6% in 1Q 2017 on the back of higher domestic demand and export growth. Growth in the services sector edged up from 5.6% in 2016 to 5.8% in 1Q Meanwhile, growth in manufacturing activities increased from 4.4% to 5.6% over the same period % Source: Bloomberg Malaysia s Annual GDP Growth Malaysia s export growth accelerated to 21.4% in 1Q 2017 from 1.1% in 2016 due mainly to higher exports of electrical and electronic products. Import growth surged to 27.7% from 1.9% over the same period. Malaysia s cumulative trade surplus narrowed to RM18.9 billion in 1Q 2017 compared to RM23.9 billion in the prior year. Due to capital outfl ows, Malaysia s foreign reserves decreased to US$96.1 billion as at end-april 2017 compared to US$97.0 billion for the corresponding period a year ago. Malaysia s infl ation rate rose to 4.3% in the fi rst four months of 2017 from 2.1% in 2016 amid higher transportation costs arising from elevated fuel prices. BNM maintained the OPR at 3.00% to support economic activities. Loans growth increased to 6.1% in the fi rst four months of 2017 from 5.3% in 2016 on the back of higher demand from the manufacturing and construction sectors. On the regional front, Singapore s GDP growth rose from 2.0% in 2016 to 2.7% in 1Q 2017 due to higher output from the manufacturing and services sectors. Indonesia s economic growth was sustained at 5.0% in 1Q 2017 compared to a similar growth rate in 2016 on the back of resilient domestic demand. In North Asia, China s GDP growth expanded from 6.7% in 2016 to 6.9% in 1Q 2017, driven by fi rmer growth in the industrial sector. Hong Kong s GDP growth accelerated from 2.0% in 2016 to 4.3% in 1Q 2017 due to higher consumer spending and export growth. Led by slower consumer and public spending, South Korea s GDP growth inched down from 2.8% in 2016 to 2.7% in 1Q Taiwan s GDP growth gained pace from 1.5% in 2016 to 2.6% in 1Q 2017 amid higher investment spending and export growth. Driven by higher investment spending and export growth, U.S. GDP growth rose from 1.6% in 2016 to 2.0% in 1Q Investment spending increased by 2.1% in 1Q 2017 compared to a contraction of 1.6% in 2016 due to higher investment in equipment. Meanwhile, export growth expanded to 3.1% in 1Q 2017 from 0.4% in

8 Manager s Report Manager s Report At the FOMC meeting in May 2017, the Federal Reserve maintained the Federal funds rate target range at 0.75%-1.00%. The FOMC members stated that job gains were solid and the slower economic growth registered in 1Q 2017 was likely to be temporary. Eurozone GDP growth was sustained at 1.7% in 1Q 2017 compared to a similar growth rate in 2016 on the back of resilient economic activities in Germany. At its monetary policy meeting on 27 April 2017, the European Central Bank (ECB) kept its main refinancing and deposit rates at 0.00% and -0.40% respectively. The ECB extended its quantitative-easing program from end-march 2017 until the end of However, it reduced the monthly pace of bond-buying from 80 billion to 60 billion with effect from April In a referendum held on 23 June 2016, British voters voted in favour of exiting the EU. The United Kingdom (U.K.) formally notified its exit from the EU under Article 50 on 29 March 2017, which commences a two-year process of trade negotiations with the EU. Outlook and Investment Strategy After trading on a mixed note in 1H 2016, global and regional markets strengthened in 2H 2016 amid an improved outlook for the U.S. and global economies. Global and regional equity markets trended higher in the first fi ve months of 2017 on expectations that the global economy would grow at a resilient pace. Looking ahead, the performance of equity markets will depend on the economic growth momentum and market valuations of the U.S., Europe and the Asia Pacific region. U.S. economic growth is projected to gain pace from 1.6% in 2016 to 2.2% in 2017, driven by a recovery in investment spending. In the Eurozone, economic growth is envisaged to be resilient at 1.7% in 2017 compared to a similar growth rate in 2016 amid a firm outlook for export growth. In North Asia, China s GDP growth is estimated to marginally ease from 6.7% in 2016 to 6.6% in 2017 as economic growth continues to moderate due to structural reforms to transform the country to a more consumption and service-driven economy. Meanwhile, China s inflation rate is projected to be sustained at 2.0% in 2017 compared to a similar rate in Hong Kong s GDP growth is expected to inch higher from 2.0% in 2016 to 2.1% in 2017 amid a recovery in external demand. Going forward, the Hong Kong government is anticipated to maintain its tightening stance on the residential property market. However, ample liquidity, demand for better living standards and resilient economic growth should lend support to Hong Kong s property market over the long term. South Korea s GDP growth is envisaged to ease from 2.8% in 2016 to 2.6% in 2017 due to slower domestic demand. Meanwhile, Taiwan s GDP growth is projected to strengthen from 1.5% in 2016 to 2.0% in 2017 as investment spending is envisaged to improve further. In South-East Asia, Singapore s GDP growth is estimated to tick up from 2.0% in 2016 to 2.1% in 2017 on expectations of resilient external demand. Indonesia s GDP growth is expected to expand from 5.0% in 2016 to 5.2% in 2017 amid sustained growth in domestic demand. On the domestic front, Malaysia s GDP growth is projected to edge up from 4.2% in 2016 to 4.6% in 2017 amid an anticipated strengthening of domestic demand. This will be supported by sustained consumer and investment spending backed by government measures to increase disposable incomes and the ongoing implementation of infrastructure projects. The budget defi cit is projected to widen to RM40.3 billion (3.0% of GDP) in 2017 from RM38.7 billion (3.1% of GDP) in 2016, with revenue expanding by 3.4% to RM219.7 billion. Meanwhile, operating expenditure and net development expenditure for 2017 are expected to register growth rates of 3.7% to RM214.8 billion and 2.4% to RM45.3 billion respectively. As at end-may 2017, the local stock market was trading at a prospective P/E ratio of 16.6x, which was above its 10-year average of 16.4x. The market s dividend yield of about 3.17% was above the 12-month fi xed deposit rate of 3.11%. Among the regional markets, South-East Asian markets were trading at premiums while North Asian markets were trading at discounts to their historical averages following their respective performances over the same period. Given the above factors, the Fund will continue to rebalance its investment portfolio accordingly with the objective of providing steady recurring income by investing in a portfolio of stocks which offer or have the potential to offer attractive dividend yields. Notes: Q = Quarter H = Half Cross-Trade Transactions Cross-trade transactions were undertaken by PDSF during portfolio rebalancing activities over the fi nancial year under review. Policy on Soft Commissions The management company may receive goods or services which include research materials, data and quotation services and investment related publications by way of soft commissions provided they are of demonstrable benefit to the Fund and unitholders. During the fi nancial year under review, PDSF has received data and quotation services by way of soft commissions. These services were used to provide fi nancial data on securities and price quotation information to the Fund Manager during the fi nancial year under review.

9 Statement Of Assets And Liabilities As at 31 May 2017 Statement Of Income And Expenditure MYR 000 MYR 000 Assets Investments 1,888,583 1,577,507 Due from brokers/financial institutions, net Tax recoverable Other receivables 7,860 6,351 Deposits with financial institutions 60, ,849 Cash at banks 5,860 10,808 1,963,247 1,858,329 Liabilities Due to brokers/financial institutions, net Due to the Manager, net 5,299 1,438 Other payables Distribution payable 21,132 17,907 26,581 19,908 Total net assets 1,936,666 1,838,421 Net asset value ( NAV ) attributable to unitholders (Total equity) 1,936,666 1,838,421 Units in circulation (in 000) 7,043,968 7,162,853 NAV per unit, ex-distribution (in sen) MYR 000 MYR 000 Income Interest income 5,511 8,447 Dividend income 56,969 49,792 Net gain/(loss) from investments 147,216 (102,379) Amortisation of premium, net of accretion of discount (2) (65) Net realised/unrealised foreign exchange (loss)/gain (224) 5, ,470 (38,902) Less: Expenses Trustee s fee Management fee 30,372 28,830 Audit fee 7 7 Tax agent s fee 3 5 Brokerage fee 2,454 3,120 Administrative fees and expenses ,697 32,828 Net income/(loss) before taxation 175,773 (71,730) Taxation (589) (374) Net income/(loss) after taxation 175,184 (72,104) Net income/(loss) after taxation is made up as follows: Realised 40,051 61,309 Unrealised 135,133 (133,413) 175,184 (72,104) Distributions for the financial year 42,793 52,052

10 Statement Of Changes In Net Asset Value Statement Of Cash Flows (Accumulated loss)/ Unitholders retained capital earnings Total MYR 000 MYR 000 MYR 000 As at 1 June ,768,050 8,413 1,776,463 Creation of units 205, ,392 Cancellation of units (19,278) - (19,278) Net loss after taxation - (72,104) (72,104) Distributions - (52,052) (52,052) As at 31 May ,954,164 (115,743) 1,838,421 As at 1 June ,954,164 (115,743) 1,838,421 Creation of units 67,585-67,585 Cancellation of units (101,731) - (101,731) Net income after taxation - 175, ,184 Distributions - (42,793) (42,793) As at 31 May ,920,018 16,648 1,936, MYR 000 MYR 000 Cash flows from operating activities Proceeds from sale/redemption of investments 403, ,254 Purchase of investments (570,451) (649,471) Subscription of rights - (1,520) Maturity of deposits 36,998,195 56,332,400 Placement of deposits (36,795,491) (56,401,608) Interest income received 5,434 8,547 Net dividend income received 54,882 46,575 Trustee s fee paid (636) (636) Management fee paid (30,210) (28,847) Audit fee paid (7) (7) Tax agent s fee paid (3) (5) Payment of other fees and expenses (216) (318) Net cash inflow/(outflow) from operating activities 65,370 (154,636) Cash flows from financing activities Cash proceeds from units created 68, ,035 Cash paid on units cancelled (99,427) (18,940) Distributions paid (39,568) (98,807) Net cash (outflow)/inflow from financing activities (70,015) 93,288 Net decrease in cash and cash equivalents (4,645) (61,348) Effect of change in foreign exchange rates (303) 5,261 Cash and cash equivalents at the beginning of the financial year 10,808 66,895 Cash and cash equivalents at the end of the financial year 5,860 10,808