AMB DIVIDEND TRUST FUND ANNUAL REPORT. Manager's Report Trustee's Report 12. Statement by Manager 13. Independent Auditors' Report 14-17

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2 AMB DIVIDEND TRUST FUND ANNUAL REPORT For the Financial Year Ended 30 April 2018 Contents Page Manager's Report 2-11 Trustee's Report 12 Statement by Manager 13 Independent Auditors' Report Statement of Comprehensive Income Statement of Financial Position 20 Statement of Changes in Equity 21 Statement of Cash Flows 22 Notes to the Financial Statements Corporate Information 58 1

3 MANAGER S REPORT AMB DIVIDEND TRUST FUND Dear Unit Holders, Amanah Mutual Berhad (AMB), as Manager of AMB Dividend Trust Fund ( AMBDTF or the Fund ), is pleased to present the Manager s Report of AMBDTF for the financial year ended 30 April CATEGORY / TYPE Equity Fund / Income and Growth Fund 2. INVESTMENT OBJECTIVE The investment objective of AMBDTF is to provide investors with a regular income stream and to attain medium to long-term capital appreciation through investing in high (and potentially high) dividend yielding equities (including foreign equities). 3. ASSET ALLOCATION Minimum 70%; maximum 99.80% in equities Maximum 20% in listed REITs Minimum 0.20%; maximum 30% in fixed income securities and cash Up to 30% of the Fund s total net asset value (NAV) may be invested in Asian ex- Japan markets and/or the Investment Manager may choose to invest solely in the domestic market. 4. PERFOANCE BENCHMARK A combination of: 70% of FTSE Bursa Malaysia KLCI (FBM KLCI); and 30% of MSCI Asia Pacific ex-japan Index. 5. LAUNCH DATE / COMMENCEMENT DATE 6 June 2006 / 5 July

4 6. FUND DISTRIBUTION POLICY Income distribution, if any, is expected to be distributed semi-annually or annually at the Manager s discretion, subject to the trustee s approval. Income distribution declared will be reinvested as additional units. No sales charge is charged to the reinvestment of income distributions. 7. UNITHOLDING STATISTICS Breakdown of unit holdings by size as at 30 April 2018 are as follows: Size of Holdings No. of Unit Holders No. of Units Held No. % Units % 5,000 and below , ,001 to 10, ,393, ,001 to 50,000 2, ,847, ,001 to 500,000 3, ,420, ,001 and above ,507, TOTAL 7, *1,401,012, * Excludes units kept by the Manager. 8. FUND PERFOANCE For Financial Year Total net asset value (NAV) ( 000) As at 30/04/18 As at 30/04/17 As at 30/04/16 308, , ,553 Units in circulation ( 000) 1,401,040 1,134, ,215 Unit NAV () NAV per unit (ex-date) NAV per unit (highest) NAV per unit (lowest)

5 9. INVESTMENT PORTFOLIO Sector Quoted Equity Securities Local As at 30/04/18 % As at 30/04/17 % As at 30/04/16 % Construction Nil Consumer Products 4.17 Nil 9.20 Finance Industrial Products Infrastructure Nil Plantations Properties REITs Technology Nil Trading & Services Total Local Quoted Equity Securities Foreign Agriculture Nil Nil 1.29 Basic Industry & Chemicals Nil Nil 3.70 Consumer Discretionary Nil Nil Nil Consumer Product Nil Financials Health Care Nil Nil 0.71 Infrastructure/Utility/Transport Nil Nil 1.87 Industrial Nil Materials Industry Nil 1.67 Nil Services Nil Nil 2.08 Technology Transportation / Telecommunication Information Technology 1.24 Nil Nil Utilities 2.02 Nil Nil Total Foreign Quoted Equity & REITs Securities Foreign (REITs) Total Collective Investment Schemes Cash (5.05) TOTAL Note: The abovementioned percentages are based on total NAV at the end of the financial period. 4

6 10. PERFOANCE DATA 10.1 Average Total Return per Annum of AMBDTF against Benchmark Period Average Total Return Per Annum (%) AMBDTF *Benchmark One year Three years Five years Since commencement Source: Lipper *Benchmark = 70% of FBM KLCI and 30% of MSCI Asia Pacific ex-japan Index. Note: Annualised return (Average total return per annum) (%) = [{(1+r1) (1+r2)... (1+rn)} 1/n - 1] x 100 Where r = rate of return, n = number of years 10.2 Annual Total Returns of AMBDTF for the Last Five Financial Years For Financial Period/ Year 30/04/18 30/04/17 30/04/16 30/04/15 30/04/14 Capital return (%) (15.93) (4.34) (1.79) Income return (%) Total return of AMBDTF (%) (2.15) Total return of *benchmark(%) (7.72) (1.53) 7.66 Source: Lipper *Benchmark = 70% of FBM KLCI and 30% of MSCI Asia Pacific ex-japan Index. Note: 1. Capital return (%) = NAV per unit on ex-date NAV per unit at the beginning of the financial year 2. Income return (%) = Gross income distribution declared NAV per unit at the beginning of the financial year -1 x 100 x Total return (%) = Capital return (%) + Income return (%) Past performance is not necessarily indicative of future performance and unit prices and investment returns may go down as well as up. 5

7 10.3 Income Distribution for the Financial Year For Financial Year 30/04/ /04/17 30/04/16 Net income distributed ( 000) 24,352 15,158 24,372 Distributions (sen) Gross Net Distribution date 02/05/18 30/04/17 30/04/ Impact on NAV Arising from Distribution For Financial Year per unit NAV before Distribution as at 30 April Less: Distribution of 1.75 sen per unit (gross) 1.73 sen per unit (net) NAV per unit after distribution Other Data For Financial Year Management expense ratio (MER) (%) Portfolio turnover ratio (PTR) (times) As at 30/04/18 As at 30/04/17 As at 30/04/ # Note: MER The MER is the ratio of the sum of fees and expenses incurred by the Fund for the financial period to the average NAV of the Fund calculated on a daily basis. PTR The PTR is the ratio of average acquisitions and disposals of the Fund for the financial period to the average NAV of the Fund calculated on a daily basis. # The PTR is lower than the previous financial year due to the decrease in trading activities during the period under review. 6

8 11. PERFOANCE REVIEW AMBDTF has met its investment objective during the period under review. During the period, AMBDTF registered a total return of 9.04% against its benchmark s total return of 5.76%, thus outperformed the benchmark by 3.28%. The outperformance of the Fund was mainly due to better stock selection. The NAV per unit of the Fund increased to as at 30 April 2018 from as at 30 April On 30 April 2018, AMBDTF declared a gross income distribution at 1.75 sen per unit (net: 1.73 sen per unit). The NAV per unit decreased accordingly to Performance of AMBDTF for the One Year Period (30 April 2017 to 30 April 2018) AMBDTF: 9.04% Benchmark: 5.76% Source: Lipper *Benchmark = 70% of FBM KLCI and 30% of MSCI Asia Pacific ex-japan Index. For the last five financial years, AMBDTF registered a compounded return of 42.56%. The benchmark s compounded return for the same period was 16.53%. AMBDTF outperformed the benchmark by 26.03% for the 5-year period. Performance of AMBDTF for the Last Five Financial Years (30 April 2013 to 30 April 2018) AMBDTF: 42.56% Benchmark: 16.53% Source: Lipper *Benchmark = 70% of FBM KLCI and 30% of MSCI Asia Pacific ex-japan Index. 7

9 12. EQUITY MARKET REVIEW (1 May April 2018) During the period under review, the FBM KLCI Index was up by 5.8% while the FBM Small Cap index shed 17.4%. Effective 2 May 2017, Bank Negara Malaysia (BNM) released their second initiatives by allowing all residents to participate in short-selling activities and allowing registered non-bank entities to fully hedge their underlying assets. June 2017 saw the FBM KLCI fall marginally by 0.12% and the Ringgit weaken by 0.3% month-on-month (mom). The market also turned slightly cautious as foreign net buying tapered off to MYR0.4 million. The FBM KLCI rose by 0.75% in August 2017 before declining 1.0% in September 2017 as foreign institutions remained net sellers for the second consecutive month. The FBM KLCI declined in October and November 2017 with net foreign outflows of 0.3 billion and 15 million during the respective months. The FBM KLCI subsequently jumped 79 points to 1, points in December 2017 on the back of window dressing activities, driven by banking and technology stocks. The FBM KLCI started strong in January 2018 on the back of a stronger Ringgit, higher oil prices, net foreign inflows, hike in overnight policy rate and overall stronger global economies. Despite this, the FBM KLCI underperformed the MSCI Asia Pacific ex-japan which gained 6.7% in January In February 2018, investors began re-pricing more interest rate hikes in the United States (US) on the back of higher inflation expectations. In line with the global rout, the FBM KLCI corrected points to 1, points. The FBM KLCI rose by 7 points in March 2018 to 1,863 points despite rising concerns of escalating US-China trade disputes. In the first quarter of 2018, the FBM KLCI rose 3.7% supported by net foreign inflows of 2.2 billion. Mounting US-China trade tensions have unnerved equity markets and volatility in the equity markets is expected to remain high until a firm resolution on the US-China trade war is reached. 13. MONEY MARKET REVIEW (1 May April 2018) During the period under review, money market rates traded higher across the board as Bank Negara Malaysia (BNM) hiked the Overnight Policy Rate (OPR) by 25 bps in January Headline inflation rate rose to a high of 4.3% year-on-year (yoy) in September 2017 due to increased transportation cost and averaged at 3.7% for the whole of Subsequently, headline inflation moderated to 1.3% yoy in March 2018 due to lower food and non-alcoholic beverages, utilities and transportation costs. BNM raised the OPR to 3.25% on 25 January 2018 in a pre-emptive move to prevent the build-up of risks arising from a prolonged period of low interest rates. BNM maintained the OPR on 7 March 2018 as it views the current degree of 8

10 monetary accommodativeness to be consistent with its policy stance. BNM expects the headline inflation rate to moderate to between 2.0%-3.0% in 2018 due to a high base effect and a stronger Ringgit. At the end of the period, the overnight, 1-month, 3-month, 6-month and 12- month rates rose 24 to 25 bps to 3.23%, 3.41%, 3.67%, 3.78% and 3.88% respectively. 14. STRATEGY EMPLOYED BY PORTFOLIO MANAGER FOR THE PERIOD UNDER REVIEW (1 May April 2018) We continue to remain highly invested in Malaysia & regional front, having trimmed our position in tech stocks such as Unisem. The Fund remained highly invested during the year with an average asset allocation of more than 90% and an overweight position in the banking and consumer sectors, providing a positive impact on fund performance. On the regional front, the Fund s overweight position in technology and financial sectors in Singapore and technology sector in Korea contributed positively to the Fund. This is consistent with the increase in technology spend globally and the positive impact of interest rate hikes on financial stocks. Conversely, the industrial sectors in Hong Kong and Indonesia negatively impacted the Fund due to fears of reduced spending by the governments. Venture Corp and DBS Group Holdings in Singapore were the main contributors for regional stocks. Venture is an Original Equipment Manufacturer (OEM) and benefitted from the increase in global trade and technology spend. DBS saw a recovery in loans growth and higher margins from the rise in interest rates. Meanwhile, China State Construction and Perumahan Persero in Indonesia were the main detractors with the former affected by fears of slowdown in contracts driven by liquidity constraint in China whereas the latter was sold down with the general market sell down in Indonesia due to the weakening Indonesian Rupiah. Domestically, sectors which did well for the Fund include banking and consumer names while the sector that underperformed in early 2018 was the tech space. The domestic stocks which outperformed include CIMB, Maybank, Dialog, Tenaga, FNN and Nestle while stocks which underperformed include Unisem and VS Industry. 9

11 The asset allocation for the period under review is tabulated below: Asset Allocation As at 30 April 2018 As at 30 April 2017 % % Quoted Equity Securities 307,085, ,366, Collective Investment Scheme 16,784, ,058, Cash and Cash Equivalent 15,969, ,978, TOTAL 339,839, ,402, ECONOMIC REVIEW AND OUTLOOK The United States (US) economy expanded by a weaker 2.3% in the first quarter of 2018 (1Q18) compared to the 2.9% recorded in fourth quarter 2017 (4Q17), amid slower domestic demand. The job market continued to strengthen with the unemployment rate at 4.1% in March Going forward, the US deficitfinanced tax cuts for corporations and individuals is expected to boost consumer spending and business investment in The international Monetary Fund (IMF) revised the US growth forecast for 2018 upward from 2.7% to 2.9%. The Eurozone economy grew by 2.5% year-on-year (yoy) in 1Q18 from 2.8% in 4Q17. The United Kingdom s (UK) economy grew at a weaker 1.2% in 1Q18 from 1.4% in 4Q17 due to slower construction activity and weaker manufacturing growth. Growth in the Eurozone economy is projected to pick up to 2.4% in 2018 amid stronger-than-expected domestic and external demand. Japan s economy grew 1.6% yoy in 4Q17, higher than the preliminary reading of +0.5% attributed to stronger gains in capital expenditure, driven by investment in information and communications products. China s 1Q18 gross domestic product (GDP) growth came in at 6.8%, unchanged from 4Q17. The IMF expects China's GDP growth to moderate to 6.6% in 2018 from 6.9% in 2017 as the authorities pull back on fiscal stimulus and rein in credit growth to strengthen its financial system. Meanwhile, Singapore, Indonesia, and Thailand grew by 4.3%, 5.2%, and 4.0% respectively in 4Q17. Malaysia s GDP expanded by 5.9% in 4Q17 driven by private sector demand and a positive spillover from the external sector. Overall, the economy grew by 5.9% in 2017 compared to 4.2% in BNM is upbeat on global growth and expects the global growth momentum to have a positive spillover effect on the domestic economy. BNM projected Malaysia s GDP growth to be between 5.5%-6.0% in 2018, underpinned by resilient domestic demand and stronger global growth. 16. INVESTMENT STRATEGY MOVING FORWARD Generally, the Fund will continue to focus on quality cash flow generative companies that are able to churn out consistent dividends. Emphasis will be placed on sustainability of business, balance sheets and management 10

12 capability. The strategy employed is an evergreen strategy and has proven to outperform the general market over time with lower volatility. Sectors we favour for 2018 include banks, consumer and oil & gas. Banks should fare well for the year as net interest margins improve and on expectation of a loan growth pick up. The consumer sector is benefitting from the increased BR1M payments which will stretch to August 2018 while the stronger Ringgit should also lead to better margins. The strategy with regards to the oil & gas sector is to remain invested in quality names like Dialog, Petronas Gas and Petronas Dagangan. On the regional front, the Fund will remain invested in foreign markets for diversification and to benefit in the event of any Ringgit weakness. The Fund will overweight Hong Kong, China and Singapore markets. The Hong Kong and China markets continue to have the lowest valuations regionally while growth is expected to be amongst the highest whereas Singapore is expected to experience a sustained recovery in the banking and property sectors. 17. SIGNIFICANT CHANGES ON STATE OF AFFAIRS OF AMBDTF There are no significant changes on the state of affairs of AMBDTF during the period under review. 18. CIRCUMSTANCES THAT MATERIALLY AFFECT ANY INTERESTS OF THE UNIT HOLDERS. AMB and AMBDTF have no circumstances that materially affect any interests of the unit holders. 19. POLICY ON SOFT COMMISSIONS RECEIVED FROM BROKERS During the period under review, AMB did not receive any soft commission from brokers and/or any related body corporate in relation to their management of AMBDTF. However, the Portfolio Manager of AMBDTF receives soft commissions in the form of Bloomberg annual subscriptions and terminals which are of demonstrable benefit to the Fund s performance. The Manager AMANAH MUTUAL BERHAD 11

13 TRUSTEE'S REPORT TO THE UNIT HOLDERS OF AMB DIVIDEND TRUST FUND We have acted as Trustee of AMB Dividend Trust Fund ( the Fund ) for the financial year ended 30 April To the best of our knowledge, Amanah Mutual Berhad ( the Manager ), has operated and managed the Trust in accordance with the following:- (a) (b) (c) Company and the Trustee under the Deed, the Securities Commission s Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007, and other applicable laws; valuation/pricing is carried out in accordance with the Deed and any regulatory requirements; and creation and cancellation of units are carried out in accordance with the Deed and any regulatory requirements. During this financial year, the distribution of 1.75 sen per unit (gross) has been distributed to the unit holders of the Fund. We are of the view that the distribution is not inconsistent with the objective of the Fund. For HSBC (Malaysia) Trustee Berhad TAN BEE NIE Head, Trustee Operations Kuala Lumpur 12

14 STATEMENT BY MANAGER TO THE UNIT HOLDERS OF AMB DIVIDEND TRUST FUND We, being two of the Directors of AMANAH MUTUAL BERHAD, the Manager of AMB DIVIDEND TRUST FUND ("the Trust") do hereby state that, in the opinion of the Manager, the accompanying financial statements of the Trust for the year ended 30 April 2018, together with the notes thereto, have been properly drawn up in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards, so as to give a true and fair view of the financial position of the Trust as at 30 April 2018, and of its financial performance and cash flows for the year then ended. Signed on behalf of AMANAH MUTUAL BERHAD, being the Manager of AMB DIVIDEND TRUST FUND, in accordance with a resolution of the Directors. Tan Sri Abdul Wahid bin Omar Chairman Dato' Abdul Rahman bin Ahmad Director Kuala Lumpur, Malaysia 13

15 Independent auditors report to the unit holders of AMB Dividend Trust Fund Report on the audit of the financial statements Opinion We have audited the financial statements of AMB Dividend Trust Fund ("the Trust"), which comprise the statement of financial position as at 30 April 2018, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of accounting policies, as set out on pages 18 to 58. In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Trust as at 30 April 2018, and of its financial performance and cash flows for the year then ended in accordance with Malaysian Financial Reporting Standard and International Financial Reporting Standards. Basis for opinion We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence and other ethical responsibilities We are independent of the Trust in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants ( By-Laws ) and the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants ( IESBA Code ), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code. Responsibility of the Manager and Trustee for the financial statements The Manager is responsible for the preparation of financial statements of the Trust that give a true and fair view in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards. The Manager is also responsible for such internal control as the Manager determines is necessary to enable the preparation of financial statements of the Trust that are free from material misstatement, whether due to fraud or error. 14

16 Independent auditors report to the unit holders of AMB Dividend Trust Fund (Contd.) Responsibility of the Manager and Trustee for the financial statements (cont'd.) In preparing the financial statements of the Trust, the Manager is responsible for assessing the Trust s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Manager either intend to liquidate the Trust or to cease operations, or have no realistic alternative but to do so. The Trustee is responsible for overseeing the Trust's financial reporting process. The Trustee is also responsible for ensuring that the Manager maintains proper accounting and other records as are necessary to enable true and fair presentation of these financial statements. Information other than the financial statements and auditors report thereon The Manager of the Trust is responsible for the other information. The other information comprises the information included in the Annual Report of the Trust but does not include the financial statements and our auditors report thereon. Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and to report such facts as necessary. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Auditors responsibility for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements of the Trust as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 15

17 Independent auditors report to the unit holders of AMB Dividend Trust Fund (Contd.) Auditors responsibility for the audit of the financial statements (cont'd.) As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements of the Trust, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Manager. Conclude on the appropriateness of the Manager s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Trust s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the financial statements of the Trust or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Trust to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements of the Trust, including the disclosures, and whether the financial statements of the Trust represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with the Manager regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 16

18 Independent auditors report to the unit holders of AMB Dividend Trust Fund Other matters This report is made solely to the unit holders of the Trust, as a body, in accordance with the Guidelines on Unit Trust Funds issued by the Securities Commission Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report. Ernst & Young AF: 0039 Chartered Accountants Muhammad Syarizal bin Abdul Rahim No /01/2019 J Chartered Accountant Kuala Lumpur, Malaysia 17

19 AMB DIVIDEND TRUST FUND STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 30 APRIL 2018 INCOME Note Dividend income 9,785,381 6,699,115 Interest and other income 332, ,874 Net foreign currency exchange gains 7 1,083,023 2,775,010 Net gain on fair value changes of FVTPL investments 26,607,701 20,093,573 37,808,939 30,255,572 EXPENSES Manager's fee 4 4,962,615 3,129,778 Trustee's fee 5 231, ,056 Auditors' remuneration 12,750 12,000 Tax agent's fee 4,500 4,500 Brokerage and other transaction fees 2,617,000 2,187,856 Administrative expenses 504, ,519 8,332,842 5,821,709 NET INCOME BEFORE TAXATION 29,476,097 24,433,863 TAXATION 6 (224,158) (153,135) NET INCOME AFTER TAXATION, REPRESENTING TOTAL COMPREHENSIVE INCOME FOR THE YEAR 29,251,939 24,280,728 Total comprehensive income for the year is made up of the following: Realised 32,926,731 12,529,064 Unrealised (3,674,792) 11,751,664 29,251,939 24,280,728 The accompanying notes form an integral part of the financial statements. 18

20 AMB DIVIDEND TRUST FUND STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 30 APRIL 2018 Note Net distribution for the year 12 24,351,772 15,157,756 Gross distribution per unit (sen) Net distribution per unit (sen) Gross distribution yield (%) 8.03% 6.51% Distribution date 30 April April 2017 Net Asset Value Per Unit, Cum-Distribution (Published Price) Net Asset Value Per Unit, Ex-Distribution (Published Price) The accompanying notes form an integral part of the financial statements. 19

21 AMB DIVIDEND TRUST FUND STATEMENT OF FINANCIAL POSITION AS AT 30 APRIL 2018 Note ASSETS Investments at FVTPL 8 323,870, ,424,381 Deposits with financial institutions 9 150,061 10,652,927 Tax recoverable - 10,307 Other receivables 10 69, ,255 Amount due from stockbrokers 5,529,334 3,115,531 Amount due from Manager 11(i) 491, ,952 Cash at bank 15,819,665 14,325,480 TOTAL ASSETS 345,930, ,317,833 LIABILITIES Provision for distribution 12 24,351,772 15,157,756 Provision for taxation - 40,722 Other payables 72,150 76,176 Amount due to stockbrokers 12,357,833 7,759,253 Amount due to Manager 11(ii) 816,757 2,128,099 Amount due to Trustee 20,021 14,626 TOTAL LIABILITIES 37,618,533 25,176,632 NET ASSET VALUE OF THE TRUST 308,311, ,141,201 EQUITY Unit holders' capital ,962, ,692,643 Reserves 12,348,725 7,448,558 TOTAL EQUITY/NET ASSET VALUE ATTRIBUTABLE TO UNIT HOLDERS 308,311, ,141,201 TOTAL EQUITY AND LIABILITIES 345,930, ,317,833 NUMBER OF UNITS IN CIRCULATION 13 1,401,040,000 1,134,140,000 NET ASSET VALUE PER UNIT, EX-DISTRIBUTION The accompanying notes form an integral part of the financial statements. 20

22 AMB DIVIDEND TRUST FUND STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 30 APRIL 2018 Reserves Unrealised Unit holders' Realised Non- Capital Distributable distributable Total Equity At 1 May ,692,643 3,959,716 3,488, ,141,201 Total comprehensive income/ (loss) for the year - 32,926,731 (3,674,792) 29,251,939 Creation of units for sale 142,665, ,665,108 Creation of units for - distribution (30 April 2017) 13,003, ,003,122 Cancellation of units (99,218,880) - - (99,218,880) Distribution equalisation for the year (179,181) - - (179,181) Distribution for the year - (24,351,772) - (24,351,772) At 30 April ,962,812 12,534,675 (185,950) 308,311,537 At 1 May ,359,005 5,457,106 (8,262,822) 149,553,289 Total comprehensive income for the year - 12,529,064 11,751,664 24,280,728 Creation of units for sale 93,926, ,926,200 Creation of units for - distribution (30 April 2016) 20,585, ,585,188 Cancellation of units (27,177,750) - - (27,177,750) Distribution equalisation for the year 1,131, ,131,302 Distribution for the year (1,131,302) (14,026,454) - (15,157,756) At 30 April ,692,643 3,959,716 3,488, ,141,201 The accompanying notes form an integral part of the financial statements. 21

23 AMB DIVIDEND TRUST FUND STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 30 APRIL 2018 CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES Proceeds from sale of investments 376,122, ,653,058 Purchase of investments (429,309,855) (384,180,503) Interest received 307, ,179 Net dividend received 9,616,999 6,490,801 Manager's fee paid (5,163,550) (3,029,264) Trustee's fee paid (240,966) (141,365) Auditors' remuneration paid (12,000) (12,750) Payment for other fees and expenses (182,305) (320,693) Net cash used in operating and investing activities (48,861,775) (80,840,537) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from creation of units 167,084, ,568,111 Payments for cancellation of units (112,073,179) (27,044,359) Distribution to unit holders (15,157,781) (24,372,019) Net cash generated from financing activities 39,853,094 65,151,733 NET DECREASE IN CASH AND CASH EQUIVALENTS (9,008,681) (15,688,804) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 24,978,407 40,667,211 CASH AND CASH EQUIVALENTS AT END OF THE YEAR 15,969,726 24,978,407 CASH AND CASH EQUIVALENTS COMPRISE: Cash at bank 15,819,665 14,325,480 Deposits with financial institutions (Note 9) - With maturity less than 3 months 150,061 10,652,927 15,969,726 24,978,407 The accompanying notes form an integral part of the financial statements. 22

24 AMB DIVIDEND TRUST FUND NOTES TO THE FINANCIAL STATEMENTS - 30 APRIL THE TRUST, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES AMB Dividend Trust Fund (hereinafter referred to as "the Trust") was constituted pursuant to the executed Deed dated 2 May 2006 between Amanah Mutual Berhad ("AMB") as the Manager and HSBC (Malaysia) Trustee Berhad as the Trustee and the Registered Holders of the Trust. The Trust commenced operations on 6 June 2006 and will continue to be in operations until terminated by the Trustee as provided under the Deed. The principal activity of the Trust is to invest in a well-diversified equity portfolio which will focus on high dividend yielding Malaysian and Asian ex-japan equities, as well as in such other markets where approval has been obtained from the authorities from time to time. The portfolio is an actively managed defensive equity fund that may also invest in fixed income securities as a tactical defensive measure depending on market conditions. Amanah Saham Nasional Berhad ("ASNB") and Permodalan Nasional Berhad ("PNB"), companies incorporated in Malaysia, are the holding and ultimate holding company of the Manager, respectively. The Manager, a company incorporated in Malaysia, is principally engaged in the management of unit trust funds. The financial statements were authorised for issue by the Board of Directors of AMB in accordance with the resolution of the Directors. 2. BASIS OF PREPARATION The financial statements for the year ended 30 April 2018 have been prepared in accordance with Malaysian Financial Reporting Standards ("MFRS") and International Financial Reporting Standards ("IFRS"). (a) Early adoption of MFRS 9 Financial Instruments : Classification and Measurement ("MFRS 9") The Trust has applied MFRS 9 Financial Instruments ("MFRS 9") (as issued in November 2009 and revised in October 2010) and the related consequential amendments in advance of their effective dates. The date of initial application (i.e the date on which the Trust has assessed its existing financial assets and financial liabilities) is 1 May

25 2. BASIS OF PREPARATION (CONTD.) (b) Changes in accounting policies The new and revised MFRSs which are mandatory for companies with financial period beginning on or after 1 May 2017 do not give rise to any significant effects on the financial statements of the Trust. (c) Standards issued but are not yet effective The Standards, Amendments and Issues Committee ( IC ) Interpretations that have been issued bythe Malaysian Accounting Standards Board ( MASB ) as at the date of authorisation of these financial statements are not relevant to the Trust. Effective for financial periods beginning on or after 1 January 2018 MFRS 9 Financial Instruments (IFRS 9 as issued by IASB in July 2014) On 24 July 2014, the International Accounting Standard Boards ("IASB") issued the final version of IFRS 9 which includes the three phases of the financial instruments projects; Classification and measurement, Impairment (Expected credit losses) and Hedge accounting. Subsequently, MASB issued a pronouncement on 17 November 2014 to fully adopt the new IFRS 9 requirements. As the Trust has early adopted the previous version of MFRS 9 prior to 31 January 2015, the Trust may continue to apply that version of MFRS 9 until the mandatory effective date of 1 January The Trust is still in the process of quantifying the effect of the adoption of the final version of MFRS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Financial Instruments Financial assets and financial liabilities are recognised when the Trust becomes a party to the contractual provision of the instrument. 24

26 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.) (a) Financial Instruments (contd.) Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. (b) Financial assets All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place. All recognised financial assets are subsequently measured in their entirety at amortised cost or fair value, depending on the classification of the assets. (i) Classification of financial assets Unless designated as at FVTPL on initial recognition, debt instruments that meet the following conditions are subsequently measured at amortised cost less impairment loss: the asssets are held within a business model whose objectives is to hold assets in order to collect contractual cash flows; and the contractual terms of the instrument give rise on specified dates tocash flows that are solely payments of principal and interest on the principal amount outstanding. Equity instruments are classified as either FVTPL or FVTOCI, depending on the investment objectives. 25

27 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.) (b) Financial assets (contd.) (ii) Financial assets at fair value through profit or loss ("FVTPL") Investments in equity instruments are classified as FVTPL, unless the Trust designates an investment that is not held for trading as fair value through other comprehensive income ("FVTOCI") on initial recognition. A financial asset is held for trading if: it has been acquired principally for the purpose of selling it in the near term; or on initial recognition it is part of the portfolio of identified financial instruments that the Trust manages together and has evidence of a recent actual pattern of short-term profit-taking; or it is a derivative that is not designated and effective as a hedging instrument or a financial guarantee. Debt instruments that donot meet the amortised cost criteria (see above) are measured at FVTPL. In addition, debt instruments that meet the amortised cost criteria but are designated as at FVTPL are measured at FVTPL. A debt instrument may be designated as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities or recognising the gains and losses on them on different bases. Debt instruments are reclassified from amortised cost to FVTPL when the business model is changed such that the amortised cost criteria are no longer met. Reclassification of debt instruments that are designated as at FVTPL on initial recognition is not allowed. Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on remeasurement recognised in profit or loss. Interest income on debt instruments as at FVTPL is disclosed separately in the profit or loss. Dividend income on investments in equity instruments at FVTPL is recognised in profit or loss when the Trust's right to receive dividends is established in accordance with MFRS 118 Revenue and is disclosed separately in the profit or loss. 26

28 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.) (b) Financial assets (contd.) (iii) Financial assets at fair value through other comprehensive income ("FVTOCI") On initial recognition, the Trust can make an irrevocable election (on an instrument-by-instrument basis) to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading. Financial assets at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the unrealised reserve. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the investments. (iv) Impairment of financial assets Financial assets that are measured at amortised cost are assessed for impairment at the end of each reporting period. Financial assets are considered tobe impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial assets, estimated future cash flows of the asset have been affected. Objective evidence of impairment could include: Significant financial difficulty of the issuer or counterparty; or Breach of contract, such as default or delinquency in interest or principal payments; or It becomes probable that the borrower will enter bankruptcy or financial reorganisation; or The disappearance of an active market for that financial asset because of financial difficulties. 27

29 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.) (b) Financial assets (contd.) (iv) Impairment of financial assets (contd.) The amount of the impairment loss recognised is the difference between the asset's carrying amount and the present value of the estimated future cash flows reflecting the amount of collateral and guarantee, discounted at the financial asset's original effective interest rate. The carrying amount of the financial asset is directly reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are recognised in profit or loss. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. (v) Derecognition of financial assets The Trust derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Trust neither transfers nor retains substantially all the risks and rewards of ownership and continues tocontrol the transferred asset, the Trust recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Trust retains substantially all the risks and rewards of ownership of a transferred financial asset, the Trust continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received. On derecognition of financial asset classified as FVTOCI, the cumulative gain or loss previously accumulated in unrealised reserve is not reclassified toprofit or loss, but is reclassified to distributable realised reserve. On derecognition of financial asset classified as FVTPL, the cumulative unrealised gain or loss previously recognised is transferred to realised gain or loss on disposal in profit or loss. 28

30 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.) (c) Financial liabilities and equity instruments (i) Classification as debt or equity Debt and equity instruments issued by the Trust are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. (ii) Financial liabilities Financial liabilities, within the scope of MFRS 9, are recognised in the statement of financial position when, and only when, the Trust becomes a party to the contractual provisions of the financial instruments. (iii) Derecognition of financial liabilities The Trust derecognises financial liabilities when, and only when, the Trust s obligations are discharged, cancelled or expire. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss. (iv) Unit holders' Capital The unit holders' contributions to the Trust meet the definition of puttable instruments classified as equity instruments under the revised MFRS 132 Financial Instruments: Presentation. Distribution equalisation represents the average distributable amount included in the creation and cancellation prices of units. The amount is either refunded to unit holders by way of distribution and/or adjusted accordingly when units are cancelled. 29

31 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.) (d) Foreign currency (i) Functional and presentation currency The financial statements of the Trust are measured using the currency of the primary economic environment in which the Trust operates ("the functional currency"). The financial statements are presented in Ringgit Malaysia (""), which is also the Trust's functional currency. (ii) Foreign currency transactions Transactions in foreign currencies are measured in the functional currency of the Trust and are recorded on initial recognition in the functional currency at exchange rates approximating those ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary items denominated in foreign currencies that are measured at historical cost are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items denominated in foreign currencies measured at fair value are translated using the exchange rates at the date when the fair value was determined. Exchange differences arising on the settlement of monetary items or on translating monetary items at the reporting date are recognised in profit or loss. Exchange differences arising on the translation of non-monetary items carried at fair value are included in profit or loss for the period except for the differences arising on the translation of non-monetary items in respect of which gains and losses are recognised directly in equity. Exchange differences arising from such non-monetary items are also recognised directly in equity. (e) Income recognition Dividend income from investments are recognised on a declared basis when the right to receive dividends has been established. Realised gain on disposal of investments is measured as the difference between the net proceeds and its carrying amount. Income from investments at amortised cost are accounted for on an accrual basis based on effective interest rate method. (f) Cash and cash equivalents For the purposes of the statement of cash flows, cash and cash equivalents include cash at bank, deposit at call and highly liquid instruments, which have an insignificant risk of changes in value. 30

32 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.) (g) Income tax Current t ax asset s and liabilit ies are measured at t he amount expect ed t o be recovered from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the Current t axes are recognised in profit or loss except t o t he ext ent t hat t he t ax relat es t o it ems recognised out side profit or loss, eit her in ot her comprehensive income or directly in equity. No deferred t ax is recognised as t here are no mat erial t emporary differences. (h) Fair value measurement The Trust measures its investments at FVTPL at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell or transfer the liability takes place either: In the principal market for the asset or liability, or In the absence of a principal market, in the most advantageous market for the asset or liabilit y. The principal or the most advantageous market must be accessible to by the Trust. The fair value of an asset or a liability is measured using the assumptions that market part icipant s would use when pricing t he asset or liabilit y, assuming t hat market participants act in their economic best interest. The Trust uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable input s and minimising t he use of unobservable input s. All assets for which fair value is measured or disclosed in the financial statements are cat egorised wit hin t he fair value hierarchy, described as follows, based on t he lowest level input that is significant to the fair value measurement as a whole: Level 1: Quot ed prices (unadjust ed) in act ive market s for ident ical asset s or liabilit ies. Level 2: Input s t hat are based on observable market dat a, eit her direct ly or indirect ly. Level 3: Inputs that are not based on observable market data. For assets that are recognised in the financial statements on a recurring basis, the Trust determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to t he fair value measurement as a whole) at t he end of each report ing period. 31