LIBRA EQUITYEXTRA FUND LIBRA INCOMEEXTRA FUND LIBRA DIVIDENDEXTRA FUND LIBRA CONSUMER AND LEISURE ASIA FUND

Transcription

1 ANNUAL REPORT 2017 LIBRA EQUITYEXTRA FUND LIBRA INCOMEEXTRA FUND LIBRA DIVIDENDEXTRA FUND LIBRA CONSUMER AND LEISURE ASIA FUND CONTENTS FUND & SERVICE DIRECTORY MANAGER S REPORT Market Review & Outlook 1 Libra EquityEXTRA Fund: Profile, History & Review 5 Libra IncomeEXTRA Fund: Profile, History & Review 11 Libra DividendEXTRA Fund: Profile, History & Review 16 Libra Consumer and Leisure Asia Fund: Profile, History & Review 22 ADDITIONAL INFOATION 28 TRUSTEES REPORT 31 AUDITED FINANCIAL STATEMENTS FOR LIBRA EQUITYEXTRA FUND Statement By Manager & Auditor s Report For Libra EquityEXTRA Fund AUDITED FINANCIAL STATEMENTS FOR LIBRA INCOMEEXTRA FUND Statement By Manager & Auditor s Report For Libra IncomeEXTRA Fund AUDITED FINANCIAL STATEMENTS FOR LIBRA DIVIDENDEXTRA FUND Statement By Manager & Auditor s Report For Libra DividendEXTRA Fund AUDITED FINANCIAL STATEMENTS FOR LIBRA CONSUMER AND LEISURE ASIA FUND Statement By Manager & Auditor s Report For Libra Consumer and Leisure Asia Fund

2 F U N D D I R E C T O R Y MANAGER Libra Invest Berhad ( D) (A member of the ECM Libra Group) Ground Floor, Bangunan ECM Libra 8 Jalan Damansara Endah Damansara Heights Kuala Lumpur General Line : Investor Care : Fax: & website: invest@ecmlibra.com TRUSTEES Maybank Trustees Berhad (5004-P) 8 th Floor, Menara Maybank 100, Jalan Tun Perak Kuala Lumpur Tel: ; Fax: CIMB Commerce Trustee Berhad ( A) Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral Kuala Lumpur Tel: ; Fax: AUDITOR Ernst & Young (AF 0039) Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara Kuala Lumpur Tel: ; Fax: TAX ADVISER PricewaterhouseCoopers Taxation Services Sdn Bhd ( M) Level 10, 1 Sentral Jalan Travers Kuala Lumpur Sentral P.O. Box Kuala Lumpur Tel: ; Fax: S E R V I C E D I R E C T O R Y HEAD OFFICE JOHOR JOHOR BAHRU Ground Floor No 105, Jalan Meranti Merah Bangunan ECM Libra Taman Melodies 8 Jalan Damansara Endah, Johor Bahru Damansara Heights Johor Kuala Lumpur. Tel: ; Fax: General Line : Investor Care : Fax: &

3 1 A N N U AL RE PO RT 2017 M a n a g e r s R e p o r t For The Year Ended 31 December 2017 MARKET REVIEW: EQUITIES Equity market in 2017 was undoubtedly a bull market grown on rising optimism. While the Dow Jones Industrial Average and the S&P 500 kept charting new highs in the US market, the optimism was contagious worldwide. The MSCI World Index (which represents the developed world markets) rallied 20.1%, MSCI Emerging Market Index soared 34.4%, while the MSCI All Country Asia Pacific ex. Japan Index surged a whopping 38.7% all within a single year! What underpinned the backdrop of such level of optimism were the rather satisfactory economic data of major economies, particularly US and China, and the US corporate tax cut in the works. The improving economic data also fostered the confidence of US Federal Reserve to normalise interest rate through three 25bps hikes in 2017, bringing the Fed Funds Rate to close the year at 1.5%, doubled from merely 0.75% at the beginning of the year. Besides the US, the European Union and Japan also saw signs of economic recovery, which gave rise to the theme of a global synchronised economic reflation. Closer to home, China being the second largest world economy also chalked up stronger-than-expected GDP growth at 6.9%. Reflecting the widespread optimism, the Hang Seng China Enterprise Index (representative of China companies listed in Hong Kong) jumped 24.6%, while the Hang Seng Index shot up by 36.0% bolstered by the south-bound flow from Hong Kong-Shenzhen Connect. Delving deeper into the surge in market indices revealed that the ascendant stocks are rather concentrated among the internet services and the financial firms. For instance, the top 3 index movers of S&P 500 were dominated by internet services companies namely Amazon (+56%), Google (+36%) and Priceline (+19%). Across the pacific, the top 5 index movers of Hang Seng Index were occupied also by technology and financial companies -Tencent (+114%), AAC Technologies (+98%), Hong Kong Exchanges & Clearing (+31%), Hang Seng Bank (+34%) and Ping An Insurance (+52%). In the global commodity market, the Brent crude oil price which has hovered around $50 level for a year since mid-2016, climbed sharply beginning mid-2017 to end the year at close to $70 as data showed that US commercial oil inventory started dipping and that OPEC as well as non-opec producers led by Russia agreed to extend oil output cuts until the end of Beyond energy, most base metals and precious metals recorded sharp price gains in 2017, with notable increases in copper (+32%), aluminum (+34%), and iron ore (+25%) prices, mainly driven by government led supply reform and consolidation in China. On the other hand, most soft commodities have seen their prices languish in 2017, notably rubber (-21%), crude palm oil (-20%) and sugar (-18%) prices, which are a bane to ASEAN economies. The Dollar Index which indicates the strength of the greenback against a basket of currencies fell significantly by 10% in On the contrary, our Malaysian Ringgit appreciated circa 11% against the US Dollar. Domestically, the KLCI underperformed regional peers in the ASEAN equity index, being the only one which registered sub-10% gains. Nonetheless, for foreign investors who invested in Malaysia, the 11% appreciation from Ringgit strengthening would have made their investment return more in line with that of other ASEAN markets. The performance of selected regional markets (in local currencies) over the year is as follows: Philippines (+25%), Indonesia (+20%), Singapore (+18%) and Thailand (+14%). MARKET REVIEW: FIXED INCOME / SUKUK The Malaysian government bond (MGS) market kicked off 2017 on a positive note, supported by strong buying interest as investors rebuilt their portfolios in the new year. Similarly, US Treasury prices remained stable despite the US Fed raising interest rates by 25bps to 0.75%-1.00% on 15 March, as the decision was widely anticipated and has already been priced in.

4 2 A N N U AL RE PO RT 2017 M a n a g e r s R e p o r t For The Year Ended 31 December 2017 On 13 April, Bank Negara Malaysia (BNM) unveiled a number of initiatives to improve liquidity in the bond market, which includes relaxing the foreign exchange framework, i.e. registered investors will be allowed to hedge up to 100% (previously capped at 25%) of their underlying assets, effective 2 May. These initiatives were deemed positive to both the Ringgit and the local bond market, causing market sentiment to turn bullish, triggering a rally in MGS across the board on strong local and foreign buying. Meanwhile as widely expected on 14 June, the US Fed raised interest rates for the second time in 2017 by 25bps to 1.00%-1.25%. Nonetheless, demand for US Treasuries remained solid as investors scrambled for safe haven assets following mixed US economic data and rising geopolitical tensions in Syria and North Korea. On 13 December, the US Fed retained its plan and normalised interest rates by another 25bps to 1.25%-1.50%. Meanwhile, the Malaysian economy expanded by 6.2% y-o-y in 3Q17, the fastest pace in three years and significantly outperforming market expectations of 5.7% (1Q17: 5.6%, 2Q17: 5.8%). Following the news, MGS prices rallied across the board, driven by foreign buying. In December, offshore holdings in MGS increased for the second consecutive month by 4.1billion, bringing total foreign holdings of MGS to 45.1% (164.4billion out of total 364.4billion). In tandem with the strong inflows, the Ringgit emerged as one of the top performing currencies against the USD after appreciating 9.8% y-o-y in Throughout the year, BNM kept the Overnight Policy Rate (OPR) unchanged at 3.00%, while acknowledging that the Malaysian economic growth has become more entrenched as domestic and external sectors continued to improve. Meanwhile, demand for primary corporate bond issuances remained robust given ample liquidity in the market. Some of the issuances were upsized to meet the strong demand e.g. Pengurusan Air SPV Bhd (upsized from 1.7billion to 2.1billion) and Imtiaz Sukuk II Bhd (Bank Rakyat, upsized from 500million to 1.2billion). Likewise, Tenaga Nasional Bhd (AAA) and Southern Power Generation (AA-, 51% owned by Tenaga Nasional) were oversubscribed by almost 6 and 4 times respectively. The secondary corporate bond market was also active amid strong buying interest, with trades concentrated on selective AAA and AA-rated bonds. MARKET OUTLOOK: EQUITIES Synchronised global reflation was emerging as one of the main themes as 2017 drew on an end, with major economies such as the US, EU and China posted better-than-expected economic growth. With the confidence arising from positive economic data, the US Fed Reserve continues down the path of interest rate normalisation with guidance for up to three rate hikes in Both the World Bank and IMF have also estimated global economic growth to pick up pace in 2018 from 2017, with World Bank forecasting 3.6% and IMF 3.1% this year. With such a backdrop of more entrenched global reflation, we think 2018 will turn out to be another good year for equity markets. Internationally, we will continue to position in the financial business as a rising interest rate environment will generally benefit banks profitability. We are also optimistic on the technology or internet-based businesses despite the share price rally. Contrary to the share price rally of tech firms in the dot com bubble period ( ), where share price valuation were based plainly on indicators such as number of clicks or eyeballs or subscribers, the technology and internet giants nowadays are generating real growing profits and have many more value-added services pending monetisation in the pipeline. At home ground, we are strategically positioned in businesses that will potentially benefit from a wave of mega infrastructure construction job contracts. There are billion worth of mega infrastructure projects pending award in 2018, which includes KL-Singapore High Speed Rail, MRT 3, East Coast Rail Link (ECRL), and Pan Borneo Highway. In terms of potential risk, we remain vigilant that any disappointment on the smooth implementation of corporate tax cut in the US might dampen the sentiment in the short-term, given that high expectations have

5 3 A N N U AL RE PO RT 2017 M a n a g e r s R e p o r t For The Year Ended 31 December 2017 been built in. If such hiccup does occur, investors should not panic and shall stand ready to capture opportunities presented by markets overreaction. We are also cognisant that the 14 th general election might bring about some uncertainties as well as some opportunities, nonetheless we will stick to our disciplined investment approach of buying good businesses with superior business models, possessing competitive advantages, armed with strong balance sheets as well as producing steady stream of free cash flow, at decent valuation. MARKET OUTLOOK: FIXED INCOME / SUKUK In January 2018, minutes from the US Fed s meeting in the previous month revealed that some members expressed uncertainty over the impact of the US tax reform bill (approved on 20 December) on consumer spending and business investment, although projections for US economic growth for 2018 were raised slightly to reflect a modest boost from the tax legislation. Moreover, the committee also remain divided about the path of future US inflation, with some suggesting that inflation may continue to stay below the Fed s 2.0% target for longer than expected. Given the murky inflation outlook and uncertainties in political and geopolitical risks, US Treasury prices may continue to be supported in the near to medium-term. Moreover, demand for US Treasuries is anticipated to continue to be buoyed by investors hunt for higher yields amid ongoing quantitative easing programmes in Europe and Japan. Locally, November headline inflation continued to ease for a second straight month to 3.4% y-o-y (September 4.3%, October 3.7%), mainly due to a slower rise in food and transportation costs. Furthermore, core inflation (which excludes items that are subject to volatile prices such as fuel) also trended lower for the fourth consecutive month to 2.0% y-o-y (July: 2.6%, August and September 2.4%, October: 2.3%), signalling weak underlying inflation and subdued demand pressure. Going forward, BNM expects domestic inflation to moderate from 3.0%-4.0% in 2017 to 2.5%-3.5% in 2018, on expectations of a smaller effect from global cost factors, although the trend will depend on global oil prices, while core inflation is expected to be sustained by robust domestic demand. The central bank also projects Malaysia s economic growth to ease from the estimated 5.2%-5.7% in 2017 to 5.0%-5.5% in 2018 with domestic demand to continue anchoring Malaysia s economic expansion. In view of the moderating economic growth and inflation outlook, BNM is expected to maintain accommodative monetary policy in the near term. Given that the interest rate outlook remains conducive for bond investments, overall prospects for the local bond market remain positive. For corporate bonds, market appetite may continue to be skewed towards liquid, AAA and AA-rated bonds for their enhanced yield relative to lower yielding MGS. Meanwhile, offshore demand for MGS may remain resilient in the near to medium-term, underpinned by Malaysia s strong underlying economic fundamentals. The bulk of offshore holdings in MGS comprise long-term fundamentalbased investors such as regional and global central banks, sovereign wealth funds, global pension funds and insurance companies; therefore mitigating risks of substantial outflows. Nevertheless given lingering macro uncertainties, we will stay vigilant and continuously monitor developments on both the local and global front. We will tread with caution and remain flexible in managing portfolio duration to enable a quick response to changes in market environment, while enhancing portfolio yields and managing risk exposure.

6 4 A N N U AL RE PO RT 2017 M a n a g e r s R e p o r t For The Year Ended 31 December 2017 Malaysian Government Securities 5-Year Private Debt Securities AVERAGE YIELD Tenure Rate 3 Years 3.34% 5 Years 3.56% 10 Years 3.91% Ratings Rate AAA 4.33% AA 4.64% A 6.36% Interbank Money Market (Overnight) Year Rate 31 December % Source: Bank Negara Malaysia (end of December 2017) OTHER MATTERS 1. Significant changes on state of affairs of Libra EquityEXTRA Fund, Libra IncomeEXTRA Fund, Libra DividendEXTRA Fund and Libra Consumer and Leisure Asia Fund. There are no significant changes on state of affairs of Libra EquityEXTRA Fund, Libra IncomeEXTRA Fund, Libra DividendEXTRA Fund and Libra Consumer and Leisure Asia Fund for the financial year ended 31 December Circumstances that materially affect any interests of the unitholders. Libra Invest Berhad and Libra EquityEXTRA Fund, Libra IncomeEXTRA Fund, Libra DividendEXTRA Fund and Libra Consumer and Leisure Asia Fund have no circumstances that materially affect any interest of the unitolders.

7 5 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A E Q U I T Y E X T R A F U N D Inception Date F U N D P R O F I L E 10 September 1999 (The Fund has no predetermined fixed period or termination date). Initial Offer Price per unit during the Initial Offer Period (IOP) of 21 days ended 30 September Pricing Policy Fund Category/ Type Benchmark Investment Objective Investment Policy Investment Strategy Distribution Policy Soft Commissions & Rebates Received From Brokers Investment and Liquidation at Net Asset Value per unit. Equity/Growth. An open-ended unit trust Fund with a medium to long-term investment horizon which invests primarily in equities and equity-related securities. FTSE Bursa Malaysia TOP 100 (FBM100). Libra EquityEXTRA seeks to maximise capital returns over a medium to long-term period by investing in an actively-managed, diversified portfolio of equities and equity related securities. Invest principally in an actively-managed, diversified portfolio of ordinary shares and equity-related securities such as convertible securities, preference shares and warrants listed on Bursa Malaysia or other public exchanges in Malaysia as approved by the Securities Commission. Following a top-down analysis, the strategy is to identify key sectors or groups of stocks that are expected to perform well under an anticipated economic condition. Individual stock selection is based on well-managed financially sound companies, with attractive relative valuations and potential for high earnings growth, over the medium to long-term time frame. The analysis methods will include ratio analysis on the financial performance of companies, trend analysis to forecast future performance, and stock valuation methods. It is the intention of the Management Company to declare distribution of income, annually for Libra EquityEXTRA, provided there are sufficient realised gains. The amount of income to be distributed will vary from period to period, depending on interest rates, market conditions, the performance and the objectives of the Fund. Income distributions may be made out of realised capital gains, net dividend income and other net income received by the Fund. It is also the Management Company s policy to automatically reinvest declared income distribution into additional units in the Fund at the end of the distribution day (at ex-distribution price) with no entry fee. Unitholders wanting to realise the capital gains on units held may, liquidate all or part of their units on any Business Day. The Management Company retains soft commissions received from stockbrokers, provided these are of demonstrable benefit and assist the decision-making process relating to the Fund s investments. The soft commissions may take the form of goods and services provided such as data and quotation services, computer software and investment related publications such as Bloomberg, BPAM, Thomson Reuters and etc which are incidental to the management of the Fund. During the period under review the Management Company received data and quotation services and investment related publications which are incidental to the Fund s investment. Rebates, if any, will be credited to the account of the Fund.

8 6 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A E Q U I T Y E X T R A F U N D F U N D P R O F I L E Profile of unitholdings * Excluding units held by the Management Company As at 31 December 2017 Unitholder Unit Holding No (million) % Size of Holding (Units) No % 5,000 and below ,001 to 10, ,001 to 50, ,001 to 500, ,001 and above *Total (Decimal Rounding)

9 7 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A E Q U I T Y E X T R A F U N D F U N D P E R F O R M A N C E NAV & PRICING as at 31 December Please refer to Note 1 for further information. Total Net Asset Value ( million) Units in circulation (million units) NAV per unit () HIGHEST & LOWEST NAV for the year ended 31 December Please refer to Note 1 for further information. Highest NAV per unit () Lowest NAV per unit () PORTFOLIO COMPOSITION % of NAV for the year ended 31 December Quoted equities & equity-related securities Main Board Construction Technologies Plantations Finance Consumer Products Industrial Products Properties Trading & Services Unquoted fixed income securities Bonds/Fixed income securities Cash & others Compared to the previous year, the fund had increased its exposure on market weakness during the year. Cash levels have decreased from 22.42% in 2016 to 10.01% in 2017 as funds were deployed to buy into weakness. Sector wise, the fund has taken some profit in the construction, industrial products and plantation names and reinvested them mainly into the technology, consumer products and trading & services on the back of the technology boom and stronger economic growth. EXPENSE/TURNOVER for the year ended 31 December Management expense ratio (MER) (%) Portfolio turnover ratio (PTR) (times) Please refer to page for further explanation on the difference in MER and PTR Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

10 8 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A E Q U I T Y E X T R A F U N D F U N D P E R F O R M A N C E RETURN (%) for the year ended 31 December Please refer to Note 2 for further information. TOTAL RETURN Total Returns Capital Returns Income Returns AVERAGE TOTAL RETURN 1-yr 3-yrs 5-yrs Libra EquityEXTRA Inception date: 10 September 1999 Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

11 9 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A E Q U I T Y E X T R A F U N D I N C O M E D I S T R I B U T I O N A N D U N I T S P L I T For the year ended 31 December Please refer to Note 3 for further information Distribution date Gross distribution (sen per unit) Net distribution (sen per unit) NAV before distribution (sen per unit) NAV after distribution (sen per unit) Unit Split F U N D R E V I E W For the year 2017, the fund posted a gain of 20.46%, significantly outperforming the FBM100 benchmark, which posted a gain of 12.74% for the same year. The outperformance was mainly due to stocks invested in the construction, tourism and selected oil and gas related counters. For 2018, we will continue to look for companies with the emphasis of growth and quality. The fund will continue to invest in companies with long-term track record of consistent performance and sustainable growth. NAV PER UNIT NAV per unit as at 31 December 2016 NAV per unit as at 31 December ASSET ALLOCATION as at 31 December Quoted equities & equity-related securities 89.99% 2 Cash & others 10.01% Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

12 10 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A E Q U I T Y E X T R A F U N D N O T E S Note 1: Selling of units by the Management Company (i.e. when you purchase units and invest in the funds) and redemption of units by the Management Company (i.e. when you redeem your units and liquidate your investments) will be carried out at NAV per unit (the actual value of a unit). The entry/exit fee (if any) would be computed separately based on your net investment/liquidation amount. Note 2: Fund performance figures are calculated based on NAV to NAV and assume reinvestment of distributions (if any) at NAV. The performance figures for the Fund and its Benchmark are sourced from Lipper. Note 3: There were no income distributions or unit split exercise for the year ended 31 December Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

13 11 A N N U AL RE PO RT M anager s R ep o r t For The Year Ended 31 December 2017 L I B R A I N C O M E E X T R A F U N D Inception Date F U N D P R O F I L E 10 September 1999 (The Fund has no predetermined fixed period or termination date). Initial Offer Price per unit during the Initial Offer Period (IOP) of 21 days ended 30 September Pricing Policy Fund Category/ Type Benchmark Investment Objective Investment Policy Investment Strategy Distribution Policy Investment and Liquidation at Net Asset Value per unit. Balanced/Income and Growth. Open-ended unit trust Fund, investing in fixed income securities (including money market instruments) and equities. 50% MSCI AC Asia Pacific ex-japan and 50% Maybank s 12-month fixed deposit rate. The Fund aims to provide investors with income 1 and capital appreciation over a medium to long-term investment horizon by investing in a balanced portfolio of fixed income instruments and equities. Note: 1 Distribution of income will primarily be done by way of reinvestment into additional units. Kindly refer to the distribution policy at page 70 of this Master Prospectus for full details. (Libra IncomeEXTRA adopted a new investment mandate as at 16th August 2011.) Invests in equities, fixed income securities (including money market instruments) and liquid assets. The Fund invests primarily in income-generating securities from both fixed income and equity asset classes. The Fund will be anchored by a relatively stable portfolio of fixed income securities which would be held for their regular income yield. Concurrently, the Fund will also invest in equities that offer high dividend yields. Growth will be the secondary objective of the Fund, which the Manager expects to derive from the gradual capital appreciation of the high-dividend yielding stocks, as well as from selected picks of fundamentally undervalued stocks. It is the intention of the Management Company to declare distribution of income, half yearly (if any) for Libra IncomeEXTRA, provided there is sufficient realised gains. The amount of income to be distributed will vary from period to period, depending on interest rates, market conditions, the performance and the objectives of the Fund. Income distributions may be made out of realised capital gains, net dividend income and other net income received by the Fund. It is also the Management Company s policy to automatically reinvest declared income distribution into additional units in the Fund at the end of the distribution day (at ex-distribution price) with no entry fee. Unitholders wanting to realise the capital gains on units held may, liquidate all or part of their units on any Business Day.

14 12 A N N U AL RE PO RT M anager s R ep o r t For The Year Ended 31 December 2017 L I B R A I N C O M E E X T R A F U N D F U N D P R O F I L E Soft Commissions & Rebates Received From Brokers Cross-Trade Transaction The Management Company retains soft commissions received from stockbrokers, provided these are of demonstrable benefit and assist the decision-making process relating to the Fund s investments. The soft commissions may take the form of goods and services provided such as data and quotation services, computer software and investment related publications such as Bloomberg, BPAM, Thomson Reuters and etc which are incidental to the management of the Fund. During the period under review the Management Company received data and quotation services and investment related publications which are incidental to the Fund s investment. Rebates, if any, will be credited to the account of the Fund. During the period under review, there were cross-trade transactions undertaken by the Fund. The transactions were executed through brokers/dealers on an arm s length and fair value basis and in the best interest of the unitholders. Profile of unitholdings * Excluding units held by the Management Company As at 31 December 2017 Unitholder Unit Holding Size of Holding (Units) No % No (million) % 5,000 and below ,001 to 10, ,001 to 50, ,001 to 500, ,001 and above *Total (Decimal Rounding)

15 13 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A I N C O M E E X T R A F U N D F U N D P E R F O R M A N C E NAV & PRICING as at 31 December Please refer to Note 1 for further information. Total Net Asset Value ( million) Units in circulation (million units) NAV per unit () HIGHEST & LOWEST NAV for the year ended 31 December Please refer to Note 1 for further information. Highest NAV per unit () Lowest NAV per unit () PORTFOLIO COMPOSITION % of NAV for the year ended 31 December Quoted equities & equity-related securities Securities quoted in Malaysia Main Board Construction Finance Trading & Services Industrial Products Technologies Consumer Products Securities quoted in Hong Kong Securities quoted in Singapore Securities quoted in Indonesia Securities quoted in Philippines Securities quoted in Thailand Unquoted fixed income securities Bonds Cash & others The fund s equity exposure decreased compared to the previous year. There was a significant change in allocation in the region as exposures in Indonesia, Philippines and Hong Kong were reduced and channelled back into the Malaysian market due to the strengthening of the Ringgit. Sector wise, the fund increased its exposure in the construction, technology and consumer products sector on the back of the rollout of mega infrastructure projects, technology boom and stronger economic growth. EXPENSE/TURNOVER for the year ended 31 December Management expense ratio (MER) (%) Portfolio turnover ratio (PTR) (times) Please refer to page 73 for further explanation on the difference in MER and PTR Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

16 14 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A I N C O M E E X T R A F U N D F U N D P E R F O R M A N C E RETURN (%) for the year ended 31 December Please refer to Note 2 for further information. TOTAL RETURN Total Returns Capital Returns Income Returns AVERAGE TOTAL RETURN 1-yr 3-yrs 5-yrs Libra IncomeEXTRA Inception date: 10 September 1999 * IE Benchmark 50% MSCI AC Asia Pacific ex-japan and 50% Maybank s 12-month fixed deposit rate. Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

17 For the year ended 31 December Please refer to Note 3 for further information. Distribution date Gross distribution (sen per unit) Net distribution (sen per unit) NAV before distribution (sen per unit) NAV after distribution (sen per unit) 15 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A I N C O M E E X T R A F U N D I N C O M E D I S T R I B U T I O N A N D U N I T S P L I T Nov 4.00 (8 Nov) 4.00 (8 Nov) (7 Nov) (8 Nov) 27 Oct 3.50 (27 Oct) 3.50 (27 Oct) (26 Oct) (27 Oct) Unit Split F U N D R E V I E W For the year 2017, the fund registered a slight loss of -0.44%, underperforming the benchmark return of 11.54%. This was mainly due to a decline in a few names of illiquid stocks held in the portfolio. For 2018, we will continue to look for companies with the emphasis of growth and quality. The fund will continue to invest in companies with that offer high or growing dividend yields as well as allocating some portion for active trading in order to capture expected volatility. NAV PER UNIT NAV per unit as at 31 December 2016 NAV per unit as at 31 December 2017 ASSET ALLOCATION as at 31 December Quoted securities 57.60% 2 Unquoted fixed income securities 26.14% 3 Cash & others 16.26% N O T E S Note 1: Selling of units by the Management Company (i.e. when you purchase units and invest in the funds) and redemption of units by the Management Company (i.e. when you redeem your units and liquidate your investments) will be carried out at NAV per unit (the actual value of a unit). The entry/exit fee (if any) would be computed separately based on your net investment/liquidation amount. Note 2: Fund performance figures are calculated based on NAV to NAV and assume reinvestment of distributions (if any) at NAV. The performance figures for the Fund and its Benchmark are sourced from Lipper. Note 3: Distribution of 4.00 sen per unit was declared on 8 November 2017 were automatically reinvested into additional units on the same day at NAV after distribution with no entry fee. There were no unit split exercises for the year ended 31 December Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

18 Inception Date 16 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A D I V I D E N D E X T R A F U N D F U N D P R O F I L E 18 March 2005 (The Fund has no predetermined fixed period or termination date). Initial Offer Price per unit during the Initial Offer Period (IOP) of 21 days ended 7 April Pricing Policy Fund Category/ Type Benchmark Investment Objective Investment Policy Investment Strategy Distribution Policy Soft Commissions & Rebates Received From Brokers Investment and Liquidation at Net Asset Value per unit. Equity/Income. Open-ended unit trust Fund with a medium to long-term investment horizon, which invests principally in high dividend yield stocks. FTSE Bursa Malaysia TOP 100 (FBM100). Libra DividendEXTRA seeks to achieve relatively stable returns via income and capital appreciation, over the medium to long-term, by investing principally in high dividend 1 yield stocks. Note : 1 Above market average Invest primarily in ordinary shares and other equity-related securities such as convertible securities, preference shares, warrants listed on Bursa Malaysia or foreign markets recognised by the Securities Commission, as well as in liquid assets and fixed income securities. Libra DividendEXTRA will invest principally in high dividend yield stocks. Libra DividendEXTRA is a Malaysian focus Fund but it may invest up to 30% of its NAV offshore. It is the intention of the Management Company to declare distribution of income, annually for Libra DividendEXTRA, provided there are sufficient realised gains. The amount of income to be distributed will vary from period to period, depending on interest rates, market conditions, the performance and the objectives of the Fund. Income distributions may be made out of realised capital gains, net dividend income and other net income received by the Fund. It is also the Management Company s policy to automatically reinvest declared income distribution into additional units in the Fund at the end of the distribution day (at ex-distribution price) with no entry fee. Unitholders wanting to realise the capital gains on units held may, liquidate all or part of their units on any Business Day. The Management Company retains soft commissions received from stockbrokers, provided these are of demonstrable benefit and assist the decision-making process relating to the Fund s investments. The soft commissions may take the form of goods and services provided such as data and quotation services, computer software and investment related publications such as Bloomberg, BPAM, Thomson Reuters and etc which are incidental to the management of the Fund. During the period under review the Management Company received data and quotation services and investment related publications which are incidental to the Fund s investment. Rebates, if any, will be credited to the account of the Fund.

19 17 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A D I V I D E N D E X T R A F U N D Profile of unitholdings * Excluding units held by the Management Company F U N D P R O F I L E As at 31 December 2017 Unitholder Unit Holding Size of Holding (Units) No % No (million) % 5,000 and below ,001 to 10, ,001 to 50, ,001 to 500, ,001 and above *Total (Decimal Rounding)

20 18 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A D I V I D E N D E X T R A F U N D F U N D P E R F O R M A N C E NAV & PRICING as at 31 December Please refer to Note 1 for further information. Total Net Asset Value ( million) Units in circulation (million units) NAV per unit () HIGHEST & LOWEST NAV for the year ended 31 December Please refer to Note 1 for further information. Highest NAV per unit () Lowest NAV per unit () PORTFOLIO COMPOSITION % of NAV for the year ended 31 December Quoted equities & equity-related securities Securities quoted in Malaysia Main Board Construction Technologies Finance Consumer Products Industrial Products Properties Trading & Services Plantation REITS Securities quoted in Hong Kong Securities quoted in Singapore Securities quoted in Thailand Cash & others Compared to the previous year, the fund had increased its exposure on market weakness during the year. Cash levels have decreased from 26.31% in 2016 to 14.43% in 2017 as funds were deployed to buy into weakness. Exposures in the other countries have reduced and were channelled back to the Malaysian market due to the strengthening of the Ringgit. Sector wise, the fund increased its exposure into the finance, industrial products and consumer products on the back of rising interest rate environment and stronger economic growth. EXPENSE/TURNOVER for the year ended 31 December Management expense ratio (MER) (%) Portfolio turnover ratio (PTR) (times) Please refer to page 102 for further explanation on the difference in MER and PTR Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

21 RETURN (%) for the year ended 31 December Please refer to Note 2 for further information. 19 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A D I V I D E N D E X T R A F U N D F U N D P E R F O R M A N C E TOTAL RETURN Total Returns Capital Returns Income Returns AVERAGE TOTAL RETURN 1-yr 3-yrs 5-yrs Libra DividendEXTRA Inception date: 18 March 2005 Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

22 For the year ended 31 December Please refer to Note 3 for further information. 20 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A D I V I D E N D E X T R A F U N D I N C O M E D I S T R I B U T I O N A N D U N I T S P L I T Distribution date 30 Oct 27 Oct - Gross distribution (sen per unit) 4.00 (30 Oct) 4.00 (27 Oct) - Net distribution (sen per unit) 4.00 (30 Oct) 4.00 (27 Oct) - NAV before distribution (sen per unit) (27 Oct) (26 Oct) - NAV after distribution (sen per unit) (30 Oct) (27 Oct) - Unit Split F U N D R E V I E W For the year 2017, the fund posted gains of 17.80%, outperforming its FBM100 benchmark, which registered a return of 12.74% for the same year. This was mainly due to outperformance in the construction, technology and trading/services stocks held. For 2018, we will continue to look for companies with the emphasis of growth and quality. The fund will continue to invest in companies with high or growing dividend yields. Overall, the fund continues to meet its objective of achieving relatively stable return over a medium to longterm. NAV PER UNIT NAV per unit as at 31 December 2016 NAV per unit as at 31 December ASSET ALLOCATION as at 31 December Quoted equities & equity-related securities 85.57% 2 Cash & others 14.43% 1 Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

23 21 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A D I V I D E N D E X T R A F U N D N O T E S Note 1: Selling of units by the Management Company (i.e. when you purchase units and invest in the funds) and redemption of units by the Management Company (i.e. when you redeem your units and liquidate your investments) will be carried out at NAV per unit (the actual value of a unit). The entry/exit fee (if any) would be computed separately based on your net investment/liquidation amount. Note 2: Fund performance figures are calculated based on NAV to NAV and assume reinvestment of distributions (if any) at NAV. The performance figures for the Fund and its Benchmark are sourced from Lipper. Note 3: Distribution of 4.00 sen per unit was declared on 30 October 2017 were automatically reinvested into additional units on the same day at NAV after distribution with no entry fee. There were no unit split exercises for the year ended 31 December Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

24 22 A N N U AL RE PO RT M anager s R ep o r t For The Year Ended 31 December 2017 L I B R A C O N S U M E R A N D L E I S U R E A S I A F U N D F U N D P R O F I L E Inception Date Initial Offer Price Pricing Policy Fund Category/ Type Benchmark Investment Objective Investment Policy Investment Strategy Distribution Policy Soft Commissions & Rebates Received From Brokers 18 July 2007 (The Fund has no predetermined fixed period or termination date) per unit during the Initial Offer Period (IOP) of 21 days ended 7 August Investment and Liquidation at Net Asset Value per unit. Equity/Growth. An open-ended regional unit trust Fund, which seeks to offer investors a wider investment universe of quality growth stocks by investing primarily in those that offer exposure to the consumer and leisure sectors in Asia. Morgan Stanley Capital International All Country Asia Consumer Discretionary Index (MSCI AC Asia Consumer Discretionary Index) The Fund s seeks to provide capital appreciation over the medium to long-term by investing in a diversified portfolio comprising stocks of companies in Asia which are considered to have strong growth prospects and are able to benefit from the rising wealth effect of the region s middle class population. Invest principally in equities and in non-malaysian equities (Hong Kong, India, Indonesia, Japan, Korea, Philippines, Singapore, Taiwan and Thailand markets), as well as in liquid assets and fixed income securities within Malaysia. The Fund will have two concurrent strategies. On a macro level, the Fund will look for upcoming trends or emerging areas of growth in the Asian consumer and leisure sectors. These could arise, for example, from new developments in other global markets or from new direct investments. On a micro level, the Fund will seek undervalued consumer and leisure related companies that have yet to be re-rated to their intrinsic values. These companies should have a strong business franchise, be professionally managed and have proven business strategies. It is the intention of the Management Company to declare distribution of income, annually for Libra Consumer and Leisure Asia Fund, provided there are sufficient realised gains. The amount of income to be distributed will vary from period to period, depending on interest rates, market conditions, the performance and the objectives of the Fund. Income distributions may be made out of realised capital gains, net dividend income and other net income received by the Fund. It is also the Management Company s policy to automatically reinvest declared income distribution into additional units in the Fund at the end of the distribution day (at ex-distribution price) with no entry fee. Unitholders wanting to realise the capital gains on units held may, liquidate all or part of their units on any Business Day. The Management Company retains soft commissions received from stockbrokers, provided these are of demonstrable benefit and assist the decision-making process relating to the Fund s investments. The soft commissions may take the form of goods and services provided such as data and quotation services, computer software and investment related publications such as Bloomberg, BPAM, Thomson Reuters and etc which are incidental to the management of the Fund. During the period under review the Management Company received data and quotation services and investment related publications which are incidental to the Fund s investment. Rebates, if any, will be credited to the account of the Fund.

25 23 A N N U AL RE PO RT M anager s R ep o r t For The Year Ended 31 December 2017 L I B R A C O N S U M E R A N D L E I S U R E A S I A F U N D Profile of unitholdings * Excluding units held by the Management Company F U N D P R O F I L E As at 31 December 2017 Unitholder Unit Holding Size of Holding (Units) No % No (million) % 5,000 and below ,001 to 10, ,001 to 50, ,001 to 500, ,001 and above Total* (Decimal Rounding)

26 24 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A C O N S U M E R A N D L E I S U R E A S I A F U N D F U N D P E R F O R M A N C E NAV & PRICING as at 31 December Please refer to Note 1 for further information. Total Net Asset Value ( million) Units in circulation (million units) NAV per unit () HIGHEST & LOWEST NAV for the year ended 31 December Please refer to Note 1 for further information. Highest NAV per unit () Lowest NAV per unit () PORTFOLIO COMPOSITION % of NAV for the year ended 31 December Quoted equities & equity-related securities Securities quoted in Malaysia Main Board Finance Trading & Services Consumer Products Industrial Products Technologies Securities quoted in Hong Kong Securities quoted in Singapore Securities quoted in Philippines Securities quoted in Indonesia Unquoted fixed income securities Bonds/Fixed income securities Cash & others Compared to the previous year, the fund had increased its exposure on market weakness during the year. Cash levels have decreased from 11.56% in 2016 to 6.01% in 2017 as funds were deployed to buy into weakness. The fund took profit of some investments in the region as exposures in Indonesia, Philippines and Singapore were reduced and channelled back into the Malaysian market due to the strengthening of the Ringgit. Sector wise, the fund increased its exposure in the consumer names on the back of stronger economic data in the local market. EXPENSE/TURNOVER for the year ended 31 December Management expense ratio (MER) (%) Portfolio turnover ratio (PTR) (times) Please refer to page for further explanation on the difference in MER and PTR Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

27 25 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A C O N S U M E R A N D L E I S U R E A S I A F U N D F U N D P E R F O R M A N C E RETURN (%) for the year ended 31 December Please refer to Note 2 for further information. TOTAL RETURN Total Returns Capital Returns Income Returns AVERAGE TOTAL RETURN 1-yr 3-yrs 5-yrs Libra Consumer and Leisure Asia Inception date: 18 July 2007 Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

28 26 A N N U AL RE PO RT M anager s R ep o rt For The Year Ended 31 December 2017 L I B R A C O N S U M E R A N D L E I S U R E A S I A F U N D I N C O M E D I S T R I B U T I O N A N D U N I T S P L I T For the year ended 31 December Please refer to Note 3 for further information Distribution date Gross distribution (sen per unit) Net distribution (sen per unit) NAV before distribution (sen per unit) NAV after distribution (sen per unit) Unit split F U N D R E V I E W For the year 2017, the fund posted a negative return of -4.11%, underperforming its benchmark return of 13.71% for the same year. The underperformance was mainly due to a sell down of a number of illiquid stocks held in the portfolio during the year. For 2018, we will continue to look for companies with the emphasis of growth and quality through bottom-up combined with top-down approach. The fund will continue to invest in companies with long-term track record of consistent performance and sustainable growth. Overall, the Fund continues to meet its objectives of maximizing capital returns over a medium to long-term. NAV PER UNIT NAV per unit as at 31 December 2016 NAV per unit as at 31 December ASSET ALLOCATION as at 31 December Quoted equities & equity-related securities 81.15% 2 Unquoted Fixed Income Securities 12.84% 3 Cash & others 6.01% Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.