GROUP MANAGING DIRECTOR S STATEMENT 3 FUND PROFILE 4 GLOBAL AND LOCAL ECONOMIC REVIEW 8 EQUITY AND FIXED INCOME MARKET REVIEW 10

Transcription

1

2 CONTENTS Page GROUP MANAGING DIRECTOR S STATEMENT 3 FUND PROFILE 4 GLOBAL AND LOCAL ECONOMIC REVIEW 8 EQUITY AND FIXED INCOME MARKET REVIEW 10 MARKET OUTLOOK AND INVESTMENT STRATEGY 12 FUND PERFORMANCE REPORT 14 SOFT COMMISSION RECEIVED FROM BROKERS 28 STATEMENT BY DIRECTORS 29 REPORT OF THE AUDITORS 30 STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2015 STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL PERIOD ENDED 31 DECEMBER 2014 STATEMENTS OF CHANGES IN NET ASSET VALUE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2015 STATEMENTS OF CHANGES IN NET ASSET VALUE FOR FINANCIAL PERIOD ENDED 31 DECEMBER CASH FLOW STATEMENT FOR FINANCIAL YEAR ENDED 31 DECEMBER CASH FLOW STATEMENT FOR FINANCIAL YEAR ENDED 31 DECEMBER NOTES TO THE FINANCIAL STATEMENTS 39 DETAILS OF INVESTMENTS 43 COMPARATIVE PERFORMANCE TABLE 57 P a g e 2

3 GROUP MANAGING DIRECTOR S STATEMENT It is my pleasure to present the Annual Report of Syarikat Takaful Malaysia Berhad s Investment-Linked Funds (ILP Funds) for the financial year ended 31 December was a challenging year for the domestic market arising from a confluence of various internal and external factors. The slowing down of the world s second largest economy, i.e. China was the first indicator followed by the capital outflows from the emerging markets in anticipation of rate hikes in the US. Declining commodity prices, the weakening of the ringgit (-18.5% year-on-year) and the increasing inflation due to GST implementation in April 2015 put a damper on consumer spending. As at 31 st December 2015, the FBM KLCI Index closed at 1, points which translated to a loss of 3.9% year-onyear while our benchmark, FBMEmas Shariah Index ended the year 2015 with a gain of 2.35% year-on-year. Regionally, the Malaysian market was at par with Philippines (-3.9%) but did not fare well as the Vietnam (+6.1%) and Korean (+2.4%) markets. Malaysia however performed better than markets such as India (-5.0%), Hong Kong (-7.2%) and Taiwan (-10.4%). China (-19.4%), Singapore (-14.3%) and Thailand (-14.0%) were the bottom 3 performers. Over in the US, the Dow Jones was down by 2.2% during the similar period. Amidst the challenging market conditions and the economic uncertainties impeding the country, be it political, economic or the stock market, I am pleased to report that we have recorded a constantly stable and healthy return on investment to our valued customers. We exercised prudent investment strategies in ensuring the long-term objectives of our customers funds are met while managing the investment risk and return efficiently. For the year 2015, most of our funds continued to register encouraging performance led by Istiqrar fund with a return of 3.50% against its benchmark performance of 3.07%, followed by our index tracker fund myequity fund with a registered return of 2.82%, outperforming its benchmark return of 2.35%. Similarly, our mybluechips Fund also gained about 2.43%, outperforming its benchmark return of 2.35% during the same period under review. You may find out more about the funds information and financial performance in the following pages. Year 2016 started on a positive note for the country following the recalibration of Government Budget 2016 which was announced on 28 th January 2016 factoring in a more realistic USD30-35/bbl average crude oil price assumption. The revised budget would give a level of certainty in the market with a total of 11 added measures introduced not only to boost the economy but also to provide some catalyst to uplift the market. As the market is expected to remain challenging for the year 2016 due to a slower economic growth and uncertain external environment, rest assured that we will continue to be prudent and vigilant in outlining our investment strategies for the funds, taking into account of the prevailing market conditions so as to ensure that the objectives of the funds and the target returns are achieved. On behalf of the Company, I would like to express our utmost appreciation and gratitude for the confidence you have shown in Takaful Malaysia and for your continuous support. We will continue to strive and work hard to serve you better and achieve our vision to be the preferred choice for insurance. Dato Sri Mohamed Hassan Kamil Group Managing Director P a g e 3

4 FUND PROFILE ITTIZAN Investment Objective To achieve reasonable returns and capital growth opportunities via selected investments in Shariah approved shares listed in Bursa Malaysia and Shariahcompliant Islamic debt securities/sukuk. Investment Strategy Invest in a balanced asset allocation comprising of Shariah-compliant equity and Islamic debt securities/sukuk and money market. Asset Allocation At least 30% and a maximum of 70% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission; The balance in cash, long and short term Islamic debt securities/sukuk and other liquid Islamic investments. Performance Benchmark 70% FBM Emas Shariah Index ( FBMSI ) and 30% one-month return Maybank General Investment Account rate ( GIA ). ISTIQRAR Investment Objective To achieve a relatively stable pattern of investment returns over medium term through selected investments in Shariah approved shares listed in Bursa Malaysia and Shariah-compliant fixed income securities/sukuk. Investment Strategy Invest in a balanced asset allocation comprising mainly of Islamic debt securities/sukuk with smaller exposure in Shariah-compliant equity. Asset Allocation A maximum of 35% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission; At least 65% and a maximum 100% in cash, long and short term Islamic debt securities/sukuk and other liquid Islamic investments. Performance Benchmark 30% FBM Emas Shariah Index ( FBMSI ) and 70% one-month return at Maybank General Investment Account rate ( GIA ). P a g e 4

5 myequity INDEX FUND Investment Objective To achieve returns that tracks the performance of the FBM Emas Shariah Index. Investment Strategy Invest mainly in the top 40 of the Index component stocks; closely tracking the movement of the Benchmark in the medium to long term; Constant rebalancing of the component stocks to closely track the benchmark performance. Asset Allocation 90% - 95% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission; The balance in Islamic money market instruments. Performance Benchmark FBM Emas Shariah Index ( FBMSI ). mygrowth FUND Investment Objective To achieve capital growth opportunities and dividend income through selective investments in Shariah approved shares listed in Bursa Malaysia. Investment Strategy Invest primarily in selected Shariah-compliant equities that comprise of a diversified portfolio of index-linked companies, blue-chip stocks and companies with growth prospects and attractive dividend yields that are listed on Bursa Malaysia; Active portfolio management constant review on asset allocation and stocks holding. Stock / portfolio turnover would be practically high in search for opportunities in capital gain and dividend yield stocks. Asset Allocation At least 50% and a maximum of 95% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission; The balance in cash, long and short term Islamic debt securities/sukuk and other liquid Islamic investments. Performance Benchmark FBM Emas Shariah Index ( FBMSI ). P a g e 5

6 myblue CHIPS FUND Investment Objective To achieve consistent capital growth in the long run through investments in Shariah-compliant Blue Chips Shares. Investment Strategy Invest primarily in Shariah-compliant equities with higher market capitalisation to achieve long term capital growth; Active portfolio management - constant review on asset allocation and stock holding in search of stocks that meet the objective of the Fund. Asset Allocation At least 40% and a maximum of 90% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission; The balance in Islamic money market instruments. Performance Benchmark FBM Emas Shariah Index ( FBMSI ). mydividend FUND Investment Objective To achieve dividend income in the long term through selective investments in high dividend yield shares that provide a minimum annual gross dividend of 4.00%. To achieve capital growth through selective investments in Blue Chips Shares that could potentially provide capital growth in the long run. Investment Strategy Invest primarily in dividend yield stocks that provide a minimum annual gross dividend of 4.00% as well as blue-chip stocks that could potentially grow in the long run; At all times, exposure in stocks that yield a minimum of 4% annual gross dividend shall be at least 50% of the equity exposure; Constant review on asset allocation and stock holding in search of stocks that comply with the objectives of the Fund. Asset Allocation At least 40% and a maximum of 90% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission; At least 50% of the equity exposure is in dividend yield shares; The balance in Islamic money market instruments. Performance Benchmark FBM Emas Shariah Index ( FBMSI ). P a g e 6

7 mybalanced FUND Investment Objective To achieve moderate streams of income and consistent capital growth over the medium-to-long term period by investing in a diversified portfolio of investments; To construct a diversified portfolio containing a balanced mixture of equities and fixed income securities. Investment Strategy Invest in a balanced asset allocation comprising of Shariah-compliant equity, Islamic debt securities/sukuk and money market. Asset Allocation At least 10% and a maximum of 40% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission; At least 10% and a maximum of 60% in Islamic debt securities/sukuk and Malaysian Government Investment Issues; The balance in Islamic money market instruments. Performance Benchmark 40% FBM Emas Shariah Index ( FBMSI ) and 60% 12 months return Maybank General Investment Account rate ( GIA ). P a g e 7

8 GLOBAL AND LOCAL ECONOMIC REVIEW Economic Review This annual report is for the financial year of 1 January 2015 to 31 December US GDP increased 2.0% in the 3Q 2015, according to the third estimate released by the Bureau of Economic Analysis. The growth rate was revised down 0.1 percentage point from the second estimate released in November. In the 2Q 2015, real GDP increased 3.9%. The third-quarter increase in real GDP mainly reflected a rise in consumer spending. Business investment, state and local government spending, residential investment, and exports also contributed to the increase. The pace of economic growth suggests a resilience that could help give the US Federal Reserve (the Fed) confidence to raise interest rates going forward. In December, US Federal Reserve decided to increase the interest rate by 25 basis points, leading to a 0.50% level for its federal fund rate. Currently the Fed is expecting US interest rate level to end year-end 2016 at 1.50%, and for the economy to grow by 2.4%, unemployment rate to reach 4.7% and for core PCE inflation to surge to 1.6%. The Eurozone s economy slipped in the third quarter as the slowdown in China and other emerging markets more than offset the benefit to consumers from low oil prices. GDP among the Eurozone s 19 members rose by 0.3% in the 3Q 2015, down from 0.4% in the 2Q China economy grew by 6.8% y-o-y in 4Q15, leading to an overall economic growth of 6.9% for year 2015, which is in line with economist consensus in Bloomberg. The government s statistics bureau said that for the first time services accounted for more than half of the economy, climbing to 50.5% from 48.1% the year before. Meanwhile, manufacturing s share shed more than two percentage points, falling to 40.5%. China is adopting a new exchange rate policy where it will be based on a new-trade weighted Yuan exchange rate index. Due to the inclusion of Yuan in the SDR currency basket by IMF in December, China is currently able to deviate its currency further from USD without risking massive capital outflow from the country, hence improving its export competitiveness. Crude oil prices dropped below $40 a barrel at the end of The decline in oil price was contributed by both demand and supply side factors. From the demand side the causes are; i) economic slowdown of emerging markets particularly due to China s slowdown, and ii) this year s El Nino which is said to be strongest on record, would lead to a warm winter next year. While from the supply side; i) OPEC is increasing its production to 31.9m b/d, compared to its own symbolic quota of 30m b/d, and ii) UN is lifting economic sanctions on Iran. Malaysia s real GDP growth slowed from 5.3% y-o-y in 1H15 to 4.7% in 3Q15, and economic growth looks likely to remain flat in 4Q15, due mainly to the domestic demand-led slowdown. Growth in domestic demand slowed from 4.6% y-o-y in 2Q15 to 4% in 3Q15, with private consumption deteriorating from 6.4% y-o-y in 2Q15 to 4.1% in 3Q15, as households may have continued to cut back on purchases, following the sharp depreciation of Ringgit, which have impacted on consumer sentiments. This was in tandem with the MIER s Consumer Sentiment Index, which fell further from 71.7 in 2Q15 to 70.2 in 3Q15, the lowest level on record. Growth in public consumption also slowed from 6.8% y-o-y in 2Q15 to 3.5% in 3Q15, due to lower government operating expenditures in both emoluments and supplies and services. However, growth in real exports turned around from -3.7% y-o-y in 2Q15 to 3.2% in 3Q15, posting a positive growth after declining for two straight quarters since 1Q15, due to the impact of ringgit depreciation on export value, especially in manufactured goods. Growth in gross exports accelerated significantly from 5.5% y-o-y in 3Q15 to 16.7% in October, the highest pace of growth since April 2014, and was led by higher growth in the exports of manufactured goods at 22.2% (mainly in E&E products), which offset the 7.6% decline in commodityrelated products as commodity prices remained soft. P a g e 8

9 December saw Malaysia recorded higher inflation year-on-year figure than the previous month at 2.68% due to higher prices of alcoholic beverages & tobacco as well as food. The December figure put the 2015 yearly inflation figure at 2.10%. Public rail transports saw record inflation figure at 48.3% yoy due to fare hikes in December but impact to the overall headline inflation was marginal. On 28 January 2016, the Government has announced a 2016 Budget Recalibration in view of the challenging economic realities. The revised budget takes into calculation of the oil price at USD30-35/bbl Brent average, from USD48/bbl as initially tabled in October Some of the main economic highlights were: (i) 2016 real GDP growth range revised to 4-4.5% (from 4-5%); (ii) 2016 fiscal deficit target unchanged at 3.1% of GDP; (iii) the national debt level will continue to be reduced and will not exceed the prudent level of 55% to GDP; (iv) no capital control or pegging of the ringgit; (v) maintain an accommodative monetary policy and interest rate at a level that supports domestic economic activity; and (vi) ensure sufficient liquidity in the financial system. Bank Negara Malaysia (BNM) has kept its Overnight Policy Rate (OPR) unchanged at 3.25% since July With a dual mandate to ensure a balance between inflation and economic growth, in view of global uncertainty, BNM will continue its focus to provide support on the sustainability of economic growth into P a g e 9

10 EQUITY AND FIXED INCOME MARKET REVIEW Equity Market The stock market was volatile in 2015, particularly in the second half of the year. The market started the year with a positive note with the FBM Emas Syariah index rising 7%, from 12,507 to a high of 13,389 in April. However since April, the market has started to turn lower and selling intensified in August. The index hit a 3-yearlow of 10,706 at the end of August. The market recovered part of the losses when bargain hunters seized opportunities in the selloff by buying into stocks which were sold down indiscriminately. The index closed the year at 12,801. For year-on-year, the FBM Emas Syariah Index rose a marginal 2.4%. The key events during the year were: (a) Weak crude oil prices which affected Malaysia s economy. Crude oil prices have been on a declining trend since mid In a matter of 6 months, crude prices had fallen 50% from USD107.7 to close 2014 at USD53.3. In 2015, crude continued to remain under pressure, falling another 30.5%. With such weak prices, the country s revenue had been affected. Overall, we are expecting a weaker economy with a growth of 4-5% in 2016 from an expected % in 2015 and 6% in (b) Slowing China s economy, yuan devaluation China s economy has been slowing for a large part of 2015 and this has prompted the Chinese Government to cut its benchmark interest rates six times in less than a year. Its economy fell below 7% for the first time since the global financial crisis when 3Q15 GDP grew 6.9%. In an unexpected move in August, the Government devalued the yuan by over 3% in 2 days. This caused selloffs in all Emerging Asia currencies which saw decline between %. (c) Slew of initiatives announced by the Malaysian Government In September, Prime Minister Dato Sri Najib announced a slew of measures recommended by the Special Economic Committee totaling RM28bn. Among these measures were the RM20bn market stabilization fund, RM2bn working capital guarantee scheme to assist the SMEs and RM4.5bn integrated development of Desaru Coast Destination Resort. The announcement stemmed further market losses and the index rallied 8.8% in one month. (d) Timing of US interest rate hikes Global markets had been preoccupied with the timing of rate hikes in the US for most part of Finally in mid-december, the Fed Chairman, Janet Yellen announced a 25 basis point hike in US rates, its first move in 7 years. Economists are now expecting more hikes throughout 2016 with a projection of another 75 basis point hikes, bringing rates to 1.25% by the end of The hike provided certainty to the market at a time when global markets were looking for fresh leads. Despite the hike, emerging market currencies and stock markets have remained relatively stable. P a g e 10

11 Fixed Income Market The US Treasury yields swung throughout the year, with the 10-year yield plunging to a record low of 1.64% in January before climbing to its peak of 2.48% in June. It ended in December 2015 at 2.27%. The erratic movements in the UST yields were largely attributed to the US Federal Reserve s reluctance to raise the fed funds rate until December 2015 amid global uncertainties. The yields for European bonds fell at the beginning of 2015, driven by multiple factors such as fear of deflation, worries on the possibility of a Grexit and prospects of further quantitative easing measures by the ECB. This continued until mid-april when a wave of positive macroeconomic indicators surprised the market, triggering a large sell-off in European government bonds and sending the yields up amid low secondary market liquidity. Yields went down again in the second half of 2015 in view of weak inflation, slow growth of euro zone economies as well as expectations that the ECB would step up its stimulus measures aggressively by December. Locally, the MGS yield curve steepened as yields on the longer end of the curve shifted higher but yields on the shorter end of the curve closed lower in view of slower growth and benign inflation replaced the earlier concern on possibility of OPR hike. Bearish ringgit performance and a slump in crude oil and other commodity prices led investors to shorten their portfolio duration. The 3yr/10yr Benchmark MGS spread doubled from 45 bps as at end December 2014 to 90 bps as at end December In terms of issuance, total new government offerings of MGS/GII increased to 29 securities worth RM92.5 billion compared with RM84.5 billion in The amount was slightly higher than projected as the government increased issuances in response to declining revenue as a result of falling crude oil prices. The government also raised a total of RM4.5 billion through three Sukuk Perumahan Kerajaan auctions. In the corporate debt market, a total gross issuance of RM85.0 billion was recorded in 2015, a drop of 1.1% from RM85.9 billion in The relatively lackluster primary market activities in 2015 reflected the challenging environment in the local bond market. Based on rating distribution, high grades still dominate the primary supply landscape whereby new issues with ratings of AA-rated or higher accounted for more than 94% of total supply in Money Market In regards to the Islamic money market, Bank Negara Malaysia (BNM) has kept its Overnight Policy Rate (OPR) unchanged at 3.25% since July The 1-month Maybank General Investment Account (GIA-i) Rate however was revised up by 100 bps from 3.0% to 4.0% in 2015 as under the new classification by BNM it reclassified into an investment product (against an Islamic deposit product previously). P a g e 11

12 MARKET OUTLOOK AND INVESTMENT STRATEGY Market Outlook The International Monetary Fund (IMF) in its latest World Economic Outlook Update (WEO Update, January 2016), released in January 2016, revised downward the 2016 annual growth estimate for the world economy to 3.4% (2015: 3.1%), representing 0.2 percentage point lower than October 2015 WEO estimate of 3.6%. The IMF also revised downward the global growth forecast for 2017 to 3.6%, down by 0.2 percentage point reflecting to a substantial degree, but not exclusively, a weaker pickup in emerging economies than was forecast in October Risks to the global outlook remain tilted to the downside and relate to ongoing adjustments in the global economy: a generalized slowdown in emerging market economies, China s rebalancing, lower commodity prices, and the gradual exit from extraordinarily accommodative monetary conditions in the United States. If these key challenges are not successfully managed, global growth could be derailed. For Malaysia, on 28 January 2016 a recalibration of its Budget 2016 was announced, of which the 2016 budget deficit target of -3.1% (2015E: -3.2%) is maintained despite lower crude oil price assumption of USD30-35/bbl against USD48/bbl previously. Revenues are projected to be RM7.8bn RM9.4bn lower, with about 60% coming from lower oil-related income, except Petronas dividend, which stays at RM16bn. To achieve the deficit target and keep Government debt within the self-imposed 55% of GDP limit, total spending is cut by RM8.0bn - RM9.5bn, with equal split between Operating Expenditure (OE: RM4.0bn RM4.5bn) and Gross Development Expenditure (GDE: RM4.0bn RM5.0bn). Real GDP growth forecast range is narrowed to 4.0%- 4.5% from 4.0%-5.0%. Measures to stimulate consumer spending were also announced which could boost GST revenue. With that, the year 2016 started on a positive note for the country which we believe, the recalibrated Budget 2016 would give a level of certainty in the market and regain foreign investors confidence with 11 added measures introduced to enhance the economy. In addition, in January 2016, Bank Negara Malaysia in an unexpected move has cut the Statutory Reserve Requirement from 4.0% to 3.5% to inject further liquidity into the financial system. It is anticipated that 2016 will be relatively a better year compared to From the valuation perspective, it seems that a lot of the bad news, whether on the political, economic or stock market fronts, has been priced in. Meanwhile downside risks for domestic markets are expected to be limited and will be well supported. This is on the pre text of various factors such as: (i) most foreign investors are currently underweight Malaysia, hence massive foreign sell-off may no longer be the key risk; (ii) Malaysia has a large pool of domestic dedicated funds which lend support in a declining market; (iii) The RM20bn injection into Value Cap will further provide stability to the market; and (iv) various government initiatives to support the economic growth which is expected to be forthcoming. Despite the above, we expect the market to continue to be volatile for 2016 due to some of the ongoing headwinds. Commodity prices in particular crude oil is expected to remain low. Ringgit seen a slight rebound P a g e 12

13 beginning of 2016 however we expect it to maintain within range (2015: range) amid dissipation of domestic political risk, fluid crude oil price situation, low commodity export growth, and the slowing down of the world s second largest importing country China. As for the rates market, OPR is forecasted to be maintained at 3.25% throughout 2016 against a backdrop of a relatively stable economic growth and contained inflation. The MGS yield to be volatile with upside pressure particularly on the longer end of the yield curve mainly premised on the effect from the Fed s interest rate hike and higher supply for long-dated issuances. Nonetheless the rise in MGS yields is expected to be contained as domestic institutional investors should provide critical support to local government bonds should there be a significant rise in yields. For the Corporate Sukuk market, yield curve is expected to move in line with the risk free rate albeit at a less volatile rate. New issuances are expected to remain lacklustre in view of slower economic growth and the general market sentiment turning cautious toward expansion and capex spending. In addition, the slower economic growth and challenging operating environment may also give rise to credit risks. Investment Strategy As such, we remain prudent and vigilant in our investment strategy focusing on stocks with good fundamentals, stable historical income, strong management team, long-term earnings visibility and solid balance sheet. We prefer stocks that are defensive in nature, to protect the capital from any potential downside risks while meeting the long-term objective of the funds. For certain funds which have exposure to investment in fixed income, the focus will be on corporate sukuk within AAA and AA segments to maintain the portfolio healthy credit profile as well as for better liquidity. Short to medium term papers are preferred at this juncture with BNM is expected to hold interest rates steady throughout As for the yields for longer dated papers, they are expected to rise due to inflationary pressure and expected gradual rise in US Treasury yields. P a g e 13

14 Return % FUND PERFORMANCE REPORT ITTIZAN Performance Review For the 12 months ended 31 December 2015, Ittizan recorded a positive return of 2.64% in tandem with the movement of the benchmark (70% FBMSI and 30% 1-Month GIA) which recorded a gain of 2.66% during the same period under review. 6.0 Ittizan vs Benchmark Ittizan Benchmark (2.0) (4.0) (6.0) Total Return (%) Average Annual Return (%) 1-Year 3-Year 5-Year 1-Year 3-Year 5-Year Ittizan Benchmark Asset Allocation In terms of asset allocation, the fund has invested 69.44% in equity, 29.50% in Sukuk and the remaining in money market / cash. On equity sectoral allocation, trading & services was the top sector that the fund invested in with 34.61% exposure. The details of asset allocation and the top 5 investment holdings are given below: % 29.50% 11.92% 8.10% 7.57% 3.20% Trading & Services Sukuk Plantation Industrial Products Construction Infrastructure Project P a g e 14

15 Money Market & Cash 1.06% Top 5 Investment Holding Digi.Com Bhd 3.20% Sukuk 29.50% Petronas Chemicals Group Bhd Sime Darby Berhad 3.35% 4.53% Equities 69.44% Axiata Group Berhad Tenaga Nasional Bhd 4.55% 6.58% Fees / Charges levied to the Fund Among the fees/charges levied to the fund are: a) Management fee which is calculated based on 1.5% per annum of the Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of debt securities. Details on Distribution There was no distribution declared for Ittizan for the period ended 31 December Descriptions of any changes in Fund s Objectives and Strategies There were no material changes in the fund s objectives and strategies for the period ended 31 December P a g e 15

16 Return % ISTIQRAR Performance Review For the 12 months ended 31 December 2015, Istiqrar has outperformed its benchmark, recording a return of 3.50% against its benchmark of 3.07% (30% FBMSI and 70% 1-Month GIA). 4.0 Istiqrar vs Benchmark Istiqrar Benchmark (1.0) (2.0) Total Return (%) Average Annual Return (%) 1-Year 3-Year 5-Year 1-Year 3-Year 5-Year Istiqrar Benchmark Asset Allocation In terms of asset allocation, the fund has invested 33.92% in equity, 52.10% in Sukuk and the remaining in money market / cash which is in accordance with its asset allocation strategy. On equity sectoral allocation, trading & services was the top sector the fund has invested in with 16.82% exposure. The details of asset allocation and the top 5 investment holdings are given below: % 16.82% 5.63% 3.95% 3.87% 1.58% Sukuk Trading/Services Plantation Industrial products Construction Infrastructure Project P a g e 16

17 Money Market & Cash 13.98% Top 5 Investment Holding Anih Berhad 4.06% Equities 33.92% Sarawak Energy Berhad Ranhill Powertron II Sdn Bhd 4.14% 4.14% Sukuk 52.10% Jimah Energy ventures Sdn Bhd BGSM Management Sdn Bhd 4.32% 4.38% Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.5% per annum of the Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of debt securities; Details on Distribution There was no distribution declared for Istiqrar for the period ended 31 December Descriptions of any changes in Fund s Objectives and Strategies There were no material changes in the fund s objectives and strategies for the period ended 31 December P a g e 17

18 Return % myequity INDEX FUND Performance Review For the period under review, myequity Index Fund recorded a positive return of 2.82%, outperforming the return of its benchmark FBMSI of 2.35%. Additionally, the tracking error was within the parameters set for the fund and its strategy as to closely track its benchmark. For the period, the fund s tracking error stood at (2.0) (4.0) (6.0) (8.0) (10.0) myequity Fund Index vs Benchmark myequity Index Fund (LHS) Benchmark (LHS) Tracking Error (RHS) Total Return (%) Average Annual Return (%) 1-Year 3-Year 5-Year 1-Year 3-Year 5-Year myequity Index Benchmark Tracking Error Note : Tracking error (also called active risk) is a measure of the deviation from the benchmark. It measures how closely a portfolio follows the index to which it is benchmarked. The index fund could have a tracking error close to zero, while an actively managed portfolio would normally have a higher tracking error. Asset Allocation In terms of asset allocation, the fund has invested 93.47% in equity and the remaining in money market / cash. On equity sectoral allocation, trading & services was the top sector the fund has invested in, which is in accordance to the Bursa Malaysia FBMSI index component allocation. The details of asset allocation and the top 5 investment holdings are given below: % 14.57% 7.72% 5.79% 5.44% 4.32% Trading/Services Industrial Product Plantation Infrastructure Project Construction Consumer P a g e 18

19 Top 5 Investment Holding Money Market & Cash 6.53% Petronas Chemicals Group Bhd Digi.Com Bhd 5.20% 5.22% Sime Darby Berhad 6.24% Equities 93.47% Axiata Group Berhad Tenaga Nasional Bhd 7.28% 10.51% Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.5% per annum of the equity market value and 1% of the remaining Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of debt securities. Details on Distribution There was no distribution declared for myequity Index Fund for the period ended 31 December Descriptions of any changes in Fund s Objectives and Strategies There were no material changes in fund s objectives and strategies for the period ended 31 December P a g e 19

20 Return (%) mygrowth FUND Performance Review For the financial year ended 31 December 2015, mygrowth Fund recorded a positive return of 1.89%, while its benchmark, FBMSI recorded a gain of 2.35% during the same period under review mygrowth Fund vs Benchmark mygrowth Fund Benchmark Total Return (%) Average Annual Return (%) 1-Year 3-Year 5-Year 1-Year 3-Year 5-Year mygrowth Benchmark Asset Allocation In terms of asset allocation, the fund has invested 78.90% in equity and the remaining is in money market / cash. On equity sectoral allocation, trading & services was the top sector the fund has invested in with 39.61% exposure. The details of asset allocation and the top 5 investment holdings are given below: % 13.32% 8.86% 7.02% 3.39% 3.29% Trading/Services Plantation Industrial Products Construction Infrastruture Project Consumer P a g e 20

21 Top 5 Investment Holding Money Market & Cash 21.10% Petronas Chemicals Group Bhd Berjaya Auto Berhad 4.29% 4.77% Axiata Group Berhad 5.61% Equities 78.90% Sime Darby Berhad 5.79% Tenaga Nasional Bhd 7.75% Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.5% per annum of the equity market value and 1% of the remaining Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of debt securities. Details on Distribution There was no distribution declared for mygrowth Fund for the period ended 31 December Descriptions of any changes in Fund s Objectives and Strategies There were no material changes in fund s objectives and strategies for the period ended 31 December P a g e 21

22 Return (%) myblue CHIPS FUND Performance Review For the period under review, mybluechips Fund recorded a positive return of 2.43%, outperforming the positive return of its benchmark, FBMSI of 2.35% mybluechips Fund vs Benchmark mybluechips Fund Benchmark Total Return (%) Average Annual Return (%) 1-Year 3-Year 5-Year 1-Year 3-Year 5-Year myblue Chips Benchmark Asset Allocation In terms of asset allocation, the fund has invested 80.29% in equity and the remaining in money market / cash. On equity sectoral allocation, trading and services was the top sector the fund has invested in as most of the blue chip companies are included in this sector. The details of asset allocation and the top 5 investment holdings are given below: % 13.65% 8.87% 7.21% 3.34% 3.26% Trading/Services Plantation Industrial Products Construction Infrastructure Project Consumer P a g e 22

23 Top 5 Investment Holding Money Market & Cash 19.71% Petronas Chemicals Group Bhd Berjaya Auto Berhad 4.31% 4.84% Axiata Group Berhad 5.58% Equities 80.29% Sime Darby Berhad 5.81% Tenaga Nasional Bhd 7.89% Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.5% per annum of the equity market value and 1% of the remaining Gross Net Asset Value (NAV). b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of debt securities. Details on Distribution There was no distribution declared for myblue Chips Fund for the period ended 31 December Descriptions of any changes in Fund s Objectives and Strategies There were no material changes in fund s objectives and strategies for the period ended 31 December P a g e 23

24 Return (%) mydividend FUND Performance Review For the 12 months ending 31 December 2015, mydividend Fund recorded a positive return of 1.55%. The fund which focused on high dividend yielding stocks tend to be less volatile as compared to the overall market thus the sudden spike in its benchmark performance at year-end was not in favor of the defensive nature of the fund mydividend Fund vs Benchmark mydividend Fund Benchmark Total Return (%) Average Annual Return (%) 1-Year 3-Year 5-Year 1-Year 3-Year 5-Year mydividend Benchmark Asset Allocation In terms of asset allocation, the fund has invested 77.63% in equity and the remaining is in money market/cash. On equity sectoral allocation, trading & services was the top sector the fund invested in with 39.09% allocation. The details of asset allocation and the top 5 investment holdings are shown below: % 12.81% 8.84% 6.88% 3.49% 3.19% Trading/Services Plantation Industrial Products Construction Consumer Infrastructure Project P a g e 24

25 Top 5 Investment Holding Money Market & Cash 22.37% Petronas Chemicals Group Bhd Berjaya Auto Berhad 4.32% 4.69% Axiata Group Berhad 5.45% Equities 77.63% Sime Darby Berhad 5.72% Tenaga Nasional Bhd 7.61% Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) management fee which is calculated based on 1.5% per annum of the equity market value and 1% of the remaining Gross Net Asset Value (NAV); b) custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of debt securities. Details on Distribution There was no distribution declared for mydividend Fund for the period ended 31 December Descriptions of any changes in Fund s Objectives and Strategies There were no material changes in fund s objectives and strategies for the period ended 31 December P a g e 25

26 Retrun (%) mybalanced FUND Performance Review For the financial year ended 31 December 2015, mybalanced Fund recorded a positive return of 2.89% in tandem with its blended benchmark of 40% FBMSI and 60% 12-Month Maybank GIA rate also recorded a positive return of 3.08% mybalanced Fund vs Benchmark mybalanced Fund Benchmark Total Return (%) Average Annual Return (%) 1-Year 3-Year 5-Year 1-Year 3-Year 5-Year mybalanced Benchmark Asset Allocation As at 31 December 2015, the majority of the fund s asset allocation is towards Sukuk in line with its stated asset allocation mandate to invest up to 60% in Sukuk. The fund had invested 42.07% in Sukuk and remaining in equity (37.06%) and money market/cash (20.87%). The details of asset allocation and the top 5 investment holdings are given below: % 18.42% 6.37% 4.38% 4.05% 1.72% Sukuk Trading/Services Plantation Industrial Products Construction Infrastructure Project P a g e 26

27 Top 5 Investment Holding Sukuk 42.07% Projek Lebuhraya Usahasama Bhd 3.27% Equities 37.06% Sarawak Energy Berhad Ranhill Powertron Ii Sdn Bhd 3.35% 3.36% Money Market & Cash 20.87% Jimah Energy Ventures Sdn Bhd Tenaga Nasional Bhd 3.50% 3.55% Fees / Charges levied to the fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.2% per annum of the Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of debt securities. Details on Distribution There was no distribution declared for mybalanced Fund for the period ended 31 December Descriptions of any changes in Fund s Objectives and Strategies There were no material changes in fund s objectives and strategies for the period ended 31 December P a g e 27

28 SOFT COMMISSION RECEIVED FROM BROKERS Soft commissions received from brokers may be retained by the Company on behalf of the funds; provided that the services rendered are related to the management of the investment-linked funds and of demonstrable benefit to certificate owners as per the requirements of Clause 6.2 of the Guidelines on Investment-Linked Insurance / Takaful Business. During the financial year under review, the management company had received on behalf of the funds, soft commissions in the form of research materials and investment related publications which are incidental to the investment management of the funds. Meanwhile, all dealings with brokers are executed at competitive market rates. P a g e 28

29 STATEMENT BY DIRECTORS In the opinion of the Manager, the Takaful Investment-Linked Funds ( Funds ) financial statements set out on pages 32 to 42, comprising the Statements of Assets and Liabilities as at 31 December 2015 and the related Statements of Income and Expenditure, Changes in Net Asset Value and cash flow of the Funds for the financial year ended 31 December 2015 together with the notes thereto, have been drawn up in accordance with the Guidelines on Investment- Linked Insurance / Takaful Business issued by Bank Negara Malaysia and give true and fair view of the financial position of the Funds as at 31 December 2015 and their financial performance and the movements in the Statements of Changes in Net Assets attributable to the unitholders of the Funds for year ended on that date. Signed in accordance with a resolution of the Directors: Dato Sri Mohamed Hassan Kamil Mahadzir Azizan Kuala Lumpur Date: 18 February 2016 P a g e 29

30 REPORT OF THE AUDITORS to the unitholders of the Takaful Malaysia s Investment-Linked Funds (Company No K) (Incorporated in Malaysia) Report on the Financial Statements We have audited the financial statements of Takaful Investment-Linked Funds ( Funds ) of Syarikat Takaful Malaysia Berhad, which comprise the Statements of Assets and Liabilities as at 31 December 2015, and the related Statements of Income and Expenditure, Changes in Net Asset Value and cash flow of the Funds for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 32 to 42. Directors Responsibility for the Financial Statements The Directors of the Manager are responsible for the preparation of these financial statements in accordance with the accounting policies set out in Note 1 to the financial statements and Guidelines on Investment-Linked Insurance/Takaful Business, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Funds preparation of the financial statements 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 Funds internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors of the Manager, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements as of 31 December 2015 and for the year then ended have been prepared, in all material respects in accordance with the accounting policies set out in Note 1 to the financial statements and the Guidelines on Investment-Linked Insurance/Takaful Business. P a g e 30

31 Other Matters This report is made solely to the unitholders of Takaful Investment-Linked Funds, as a body, in accordance with the Guidelines on Investment-Linked Insurance/Takaful Business and for no other purpose. We do not assume responsibility to any other person for the content of this report. KPMG Desa Megat & Co Firm Number: AF 0759 Chartered Accountants Petaling Jaya, Selangor Date: 18 February 2016 P a g e 31

32 STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2015 ASSETS ITTIZAN ISTIQRAR myequity INDEX mygrowth myblue CHIPS mydividend mybalanced Note RM RM RM RM RM RM RM Islamic Debt Securities 2 6,777,813 6,465, ,221,538 Quoted Shares 3 15,955,871 4,209,938 19,815,285 6,314,985 6,059,601 6,825,571 2,837,276 Other Assets 287, ,253 1,909, , , , ,678 Deposits with Financial Institutions Cash and Cash Equivalents 220,000 1,675,000 1,411,000 1,225,000 1,075,000 1,409,000 1,522, ,825 1, ,241,764 12,564,445 23,137,122 8,332,547 7,792,506 9,113,057 7,903,869 LIABILITIES Other Liabilities 264, ,353 1,937, , , , , , ,353 1,937, , , , ,186 Net Asset Value 22,977,064 12,410,092 21,199,201 8,003,942 7,547,029 8,791,957 7,656,683 REPRESENTED BY Certificate Holders Capital Accumulated Income Carried Forward 8,118,248 7,204,122 17,878,243 6,753,929 6,233,421 7,139,196 6,899,707 14,858,816 5,205,970 3,320,958 1,250,013 1,313,608 1,652, ,976 22,977,064 12,410,092 21,199,201 8,003,942 7,547,029 8,791,957 7,656,683 Number of Units 12,248,713 8,611,777 12,187,734 5,912,989 5,471,230 5,975,763 6,352,300 Net Asset Value Per Unit P a g e 32

33 STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2014 ITTIZAN ISTIQRAR myequity INDEX mygrowth myblue CHIPS mydividend mybalanced Note RM RM RM RM RM RM RM ASSETS Islamic Debt Securities 2 5,340,310 6,448, ,367,639 Quoted Shares 3 13,566,326 3,869,259 12,248,081 5,724,933 5,551,176 6,128,340 2,141,509 Other Assets 253, ,528 1,013, , , , ,600 Deposits with Financial Institutions Cash and Cash Equivalents 4,636,000 2,124,000 3,563,625 1,329,233 1,327,233 1,388,243 2,098,000 8,231 2,848 4, ,735 1,390 1,697 23,803,967 12,602,699 16,829,804 7,336,860 7,118,358 7,813,276 6,931,445 LIABILITIES Other Liabilities 418, ,869 1,048, , , , , , ,869 1,048, , , , ,674 Net Asset Value 23,385,210 12,400,830 15,781,182 7,013,066 6,832,540 7,461,149 6,725,771 REPRESENTED BY Certificate Holders Capital Accumulated Income Carried Forward 8,570,380 7,386,792 12,662,879 5,757,803 5,518,972 5,755,863 6,080,579 14,814,830 5,014,038 3,118,303 1,255,263 1,313,568 1,705, ,192 23,385,210 12,400,830 15,781,182 7,013,066 6,832,540 7,461,149 6,725,771 Number of Units 12,518,467 8,751,945 9,160,411 5,177,770 4,955,050 5,036,643 5,668,099 Net Asset Value Per Unit P a g e 33

34 STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2015 myequity myblue ITTIZAN ISTIQRAR INDEX mygrowth CHIPS mydividend mybalanced RM RM RM RM RM RM RM Income Gross Dividend Income 420, , , , , ,364 73,093 Profit Income: Islamic Debt Securities 322, , ,885 Islamic Investment Deposits with Financial 100,436 73,129 67,943 36,705 35,711 37,770 67,372 Institutions Profit on Disposal: Quoted Shares - 34,888 2, Unrealised Capital Gain , Outgo 843, , , , , , ,350 Fees (347,281) (185,972) (263,314) (107,059) (102,838) (115,060) (86,816) Loss on Disposal: Quoted Shares (95,253) - - (134,349) (80,443) (88,777) (5,851) Debt Securities (5,225) (18,967) (14,128) Unrealised Capital Loss (311,480) (141,728) (78,294) - (22,000) (89,754) (53,653) Other Outgo (40,623) (37,492) (45,873) (13,482) (13,517) (10,068) (21,118) (799,862) (384,159) (387,481) (254,890) (218,798) (303,659) (181,566) Excess of Income over Outgo / (Outgo over Income) Undistributed Income brought forward Amount Available for Distribution 43, , ,655 (5,250) 40 (52,525) 111,784 14,814,830 5,014,038 3,118,303 1,255,263 1,313,568 1,705, ,192 14,858,816 5,205,970 3,320,958 1,250,013 1,313,608 1,652, ,976 Undistributed Income carried forward 14,858,816 5,205,970 3,320,958 1,250,013 1,313,608 1,652, ,976 P a g e 34

35 STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL PERIOD ENDED 31 DECEMBER 2014 myequity myblue ITTIZAN ISTIQRAR INDEX mygrowth CHIPS mydividend mybalanced RM RM RM RM RM RM RM Income Gross Dividend Income 356,462 98, , , , ,599 49,675 Profit Income: Islamic Debt Securities 287, , ,346 Islamic Investment Deposits with Financial 130,330 61,746 77,020 35,794 35,891 41,357 39,835 Institutions Profit on Disposal: Quoted Shares 2,232, ,224 1,402, , , , ,288 Islamic Debt Securities 21,368 26, Other Income 236,525 63, ,762 64,987 63,800 63,817 23,869 3,264,832 1,142,255 1,898, , , , ,013 Outgo Fees (360,820) (187,380) (198,314) (95,285) (93,273) (107,606) (69,444) Unrealised Capital Loss (2,956,563) (795,431) (1,597,020) (812,341) (797,504) (797,706) (298,368) Other Outgo (256,466) (96,967) (157,830) (75,752) (74,163) (83,965) (43,655) (3,573,849) (1,079,778) (1,953,164) (983,378) (964,940) (989,277) (411,467) Excess of (Outgo over Income) / Income over Outgo Undistributed Income brought forward Amount Available for Distribution Undistributed Income carried forward (309,017) 62,477 (55,040) (159,720) (148,646) (41,906) 24,546 15,123,847 4,951,561 3,173,343 1,414,983 1,462,214 1,747, ,646 14,814,830 5,014,038 3,118,303 1,255,263 1,313,568 1,705, ,192 14,814,830 5,014,038 3,118,303 1,255,263 1,313,568 1,705, ,192 P a g e 35

36 STATEMENTS OF CHANGES IN NET ASSET VALUE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2015 ITTIZAN ISTIQRAR myequity INDEX mygrowth myblue CHIPS mydividend mybalanced RM RM RM RM RM RM RM Net Asset Value at the Beginning of the Financial Year Amount Received from Units Creation Amount Paid from Units Cancellation 23,385,210 12,400,830 15,781,182 7,013,066 6,832,540 7,461,149 6,725, , ,579 6,239,508 1,299,051 1,037,834 1,666,368 1,133,267 (1,037,591) (424,249) (1,024,144) (302,925) (323,385) (283,035) (314,139) Net Income / (Outgo) 43, , ,655 (5,250) 40 (52,525) 111,784 Net Asset Value at the End of Financial Year 22,977,064 12,410,092 21,199,201 8,003,942 7,547,029 8,791,957 7,656,683 STATEMENTS OF CHANGES IN NET ASSET VALUE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2014 ITTIZAN ISTIQRAR myequity INDEX mygrowth myblue CHIPS mydividend mybalanced RM RM RM RM RM RM RM Net Asset Value at the Beginning of the Financial Year Amount Received from Units Creation Amount Paid from Units Cancellation 24,457,762 12,532,966 12,377,754 6,254,346 6,067,297 6,687,265 5,146, , ,451 4,326,637 1,113,499 1,166,731 1,333,027 1,716,863 (1,384,036) (477,064) (868,169) (195,059) (252,842) (517,237) (162,008) Net (Outgo) / Income (309,017) 62,477 (55,040) (159,720) (148,646) (41,906) 24,546 Net Asset Value at the End of Financial Year 23,385,210 12,400,830 15,781,182 7,013,066 6,832,540 7,461,149 6,725,771 P a g e 36

37 CASH FLOW STATEMENT FOR FINANCIAL YEAR ENDED 31 DECEMBER 2015 ITTIZAN ISTIQRAR myequity INDEX mygrowth myblue CHIPS mydividend mybalanced 2015 RM RM RM RM RM RM RM Cash Flow from Operating Activities Income / (Outgo) Before Taxation 43, , ,655 (5,250) 40 (52,525) 111,784 Adjustment for: Profit Income (423,194) (423,478) (67,943) (36,705) (35,711) (37,770) (220,257) Gross Dividend Income (420,654) (117,725) (520,017) (193,496) (183,127) (213,364) (73,093) Profit on Disposal 100,478 (15,921) (2,176) 134,349 80,443 88,777 19,979 Unrealised Capital Loss 311, ,728 78,294 (19,439) 22,000 89,754 53,653 Outgo from Operations Before Changes in Operating Assets and Liabilities (387,904) (223,464) (309,187) (120,541) (116,355) (125,128) (107,934) Proceeds from Disposal of Investment 15,021,987 4,427,425 12,818,358 5,895,164 5,593,505 5,548,387 2,514,607 Purchase of Investment (14,844,993) (4,462,275) (18,309,054) (6,495,893) (5,952,140) (6,444,906) (3,561,906) Increase in Other Assets (34,417) (46,726) (896,299) (509,404) (420,453) (582,604) (77) (Decrease) / Increase in Other Liabilities (154,057) (47,516) 889,298 4,811 (40,341) (31,027) 41,512 Cash used in Operations (399,384) (352,556) (5,806,884) (1,225,863) (935,784) (1,635,278) (1,113,798) Profit Income Received 423, ,478 67,943 36,705 35,711 37, ,257 Gross Dividend Income Received 420, , , , , ,364 73,093 Net Cash generated from / (used in) Operating 444, ,647 (5,218,924) (995,662) (716,946) (1,384,144) (820,448) Activities Cash Flow from Financing Activities Proceeds from Creations of Units 585, ,579 6,239,508 1,299,051 1,037,834 1,666,368 1,133,267 Payment for Cancellation of Units (1,037,591) (424,249) (1,024,144) (302,925) (323,385) (283,035) (314,139) Net Cash (used in) / generated from (452,132) (182,670) 5,215, , ,449 1,383, ,128 Financing Activities Net (Decrease) / Increase in Cash and Cash (7,668) 5,977 (3,560) 464 (2,497) (811) (1,320) Equivalents Cash and Cash Equivalents at 1 8,231 2,848 4, ,735 1,390 1,697 January 2015 Cash and Cash Equivalents at 31 December ,825 1, P a g e 37

38 CASH FLOW STATEMENT FOR FINANCIAL YEAR ENDED 31 DECEMBER 2014 ITTIZAN ISTIQRAR myequity INDEX mygrowth myblue CHIPS mydividend mybalanced 2014 RM RM RM RM RM RM RM Cash Flow from Operating Activities (Outgo) / Income Before Taxation (309,017) 62,477 (55,040) (159,720) (148,646) (41,906) 24,546 Adjustment For: Profit Income (417,955) (411,450) (77,020) (35,794) (35,891) (41,357) (169,181) Gross Dividend Income (356,462) (98,043) (291,229) (137,722) (141,944) (144,599) (49,675) Profit on Disposal (2,253,890) (569,127) (1,402,113) (585,155) (574,659) (697,598) (193,288) Unrealised Capital Loss 2,956, ,431 1,597, , , , ,368 Outgo from Operations Before Changes in Operating Assets and (380,761) (220,712) (228,382) (106,050) (103,637) (127,754) (89,230) Liabilities Proceeds from Disposal of Investment 22,587,460 7,979,063 20,518,282 11,096,040 9,191,879 9,892,330 3,519,164 Purchase of Investment (22,012,824) (8,047,876) (24,379,936) (12,108,551) (10,246,286) (10,835,861) (5,177,419) Decrease / (Increase) in Other Assets 485, ,362 38,482 (6,638) 47,538 26,819 (57,162) (Decrease) / Increase in Other Liabilities (682,048) (214,702) 229,144 33,175 21,266 43,037 32,579 Cash used in Operations (3,149) (312,865) (3,822,410) (1,092,024) (1,089,240) (1,001,429) (1,772,068) Profit Income Received 417, ,450 77,020 35,794 35,891 41, ,181 Gross Dividend Income Received 356,462 98, , , , , Net Cash Generated from / (used In) Operating 771, ,628 (3,454,161) (918,508) (911,405) (815,473) (1,553,212) Activities Cash Flow from Financing Activities Proceeds from Creations of Units 620, ,451 4,326,637 1,113,499 1,166,731 1,333,027 1,716,863 Payment for Cancellation of Units (1,384,036) (477,064) (868,169) (195,059) (252,842) (517,237) (162,008) Net Cash (used in) / generated from (763,535) (194,613) 3,458, , , ,790 1,554,855 Financing Activities Net Increase / (Decrease) in Cash and Cash 7,733 2,015 4,307 (68) 2, ,643 Equivalents Cash and Cash Equivalents at 1 January , Cash and Cash Equivalents at 31 December ,231 2,848 4, ,735 1,390 1,697 P a g e 38

39 NOTES TO THE FINANCIAL STATEMENTS The Manager and its principal activities The Manager is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities Berhad. The address of its registered office and principal place of business of the Manager is located at: 26 th Floor, Annexe Block Menara Takaful Malaysia No.4, Jalan Sultan Sulaiman Kuala Lumpur The Manager is principally engaged in managing family and general takaful businesses. The family takaful business includes investment-linked products. The financial statements were approved by the Board of Directors of the Manager on 18 February Summary of significant accounting policies The accounting policies set out below have been applied consistently to periods presented in these financial statements, unless otherwise stated. (a) Basis of accounting The financial statements have been prepared in accordance with the notes set out in Note 1, The Guidelines on Investment-Linked Insurance/Takaful Business (issued by Bank Negara Malaysia) and the requirements of the certificate document. (b) Functional and presentation currency These financial statements are presented in Ringgit Malaysia (RM), which is the Funds functional currency. (c) Investments Quoted shares, which are Shariah approved, are stated at the closing market prices as at the date of the statement of assets and liabilities. Islamic debt securities are valued at cost adjusted for amortisation of premiums or accretion of discounts over their par values at the time of acquisition using the effective yield method. The carrying value is subsequently revalued to reflect their fair values by using price quoted by Bond Pricing Agency Malaysia. Any increase or decrease in value of investments at each reporting date is taken into Statement of Income and Expenditure. (d) Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and bank balances. (e) Net Creation of Units Net creation of units represents contributions paid by participants as payment for new certificate/top up for existing certificate. Net creation of units is recognized on a receipt basis. P a g e 39

40 (f) Net Cancellation of Units Net cancellation of units represents cancellation of units arising from the surrenders and withdrawals by participants. Net cancellation of units is recognized upon surrendering of/withdrawal from the related takaful certificates. (g) Income Recognition Dividend income is recognized when the right to receive payment is established. Income is recognized on time proportion basis that takes into account the effective yield of the asset. Gain or loss of disposal of quoted shares is credited or charged to the Statement of Income and Expenditure. (h) Investment management fees Investment management fees are calculated in accordance with the provisions of the certificate document. 2. Islamic debt securities (i) Ittizan 31 December 2015 RM 31 December 2014 RM Cost 6,962,996 5,484,341 Unrealised capital loss (185,183) (144,031) Market value 6,777,813 5,340,310 (ii) Istiqrar Cost 6,653,962 6,603,369 Unrealised capital loss (188,533) (155,305) Market value 6,465,429 6,448,064 (iii) mybalanced Cost 3,306,301 2,444,158 Unrealised capital loss (84,763) (76,519) Market value 3,221,538 2,367, Quoted shares (i) Ittizan 31 December 2015 RM 31 December 2014 RM Cost 15,767,205 13,107,332 Unrealised capital gain 188, ,994 Market value 15,955,871 13,566,326 P a g e 40

41 (ii) Istiqrar 31 December 2015 RM 31 December 2014 RM Cost 4,132,081 3,682,901 Unrealised capital gain 77, ,358 Market value 4,209,938 3,869,259 (iii) myequity Index Cost 19,530,441 11,884,944 Unrealised capital gain 284, ,137 Market value 19,815,285 12,248,081 (iv) mygrowth Cost 6,306,270 5,735,657 Unrealised capital gain/(loss) 8,715 (10,724) Market value 6,314,985 5,724,933 (v) myblue Chips Cost 6,023,557 5,493,132 Unrealised capital gain 36,044 58,044 Market value 6,059,601 5,551,176 (vi) mydividend Cost 6,802,568 6,015,583 Unrealised capital gain 23, ,757 Market value 6,825,571 6,128,340 (vii) mybalanced Cost 2,837,770 2,096,593 Unrealised capital (loss) / gain (494) 44,916 Market value 2,837,276 2,141, Financial Instruments The Funds are exposed to market, credit, liquidity and profit rate risks. Market risk Market risk arises when the value of securities fluctuates in response to the activities of the individual companies, general market or economic conditions. The market risk is managed through portfolio diversification and asset allocation whereby the securities exposure will be reduced in the event of anticipated market weakness. P a g e 41

42 Credit risk Credit risk refers to the ability of an issuer or a counterparty to make timely profit and principal payments. The maximum exposure to credit risk is represented by the carrying amount of each financial asset as disclosed in the Statement of Assets and Liabilities. Liquidity risk This may come about when realisation of units is required in excess of normal amounts. The extent of exposure to the risk is contained in provisions set out in the prospectus. Profit rate risk When the profit rate rises, bond prices fall and vice versa. The market risk is monitored through periodic reviews of its asset and liability positions with the objective to limit the net changes in the value of assets and liabilities arising from profit rate movements. Shariah risk Shariah risk arises when transaction entered by Islamic Financial Institution (IFI) are declared impermissible. Any profit sourced from shariah non compliance activities shall be cleansed in order to retain compliance and it also will impact the reputation of IFI. Fair values The fair values of investments have been disclosed in notes 2 and 3. The basis of deriving the fair values is disclosed in Note 1(c). P a g e 42

43 DETAILS OF INVESTMENTS ITTIZAN Security Name Construction Number of Units Total Cost Market Value % of NAV Gamuda Bhd 94, , , % IJM Corporation Bhd 138, , , % Ho Hup Construction Company Bhd 122, , , % Hock Seng Lee Bhd 86, , , % Mitrajaya Holdings Bhd 201, , , % Muhibbah Engineering (M) Bhd 136, , , % Consumer PPB Group Bhd 10, , , % Industrial Products Cahya Mata Sarawak Berhad 60, , , % Petronas Chemicals Group Bhd 106, , , % Petronas Gas Bhd 27, , , % SKP Resources Bhd 114, , , % Infrastructure Project Company Digi.Com Bhd 136, , , % Plantation Genting Plantations Bhd 62, , , % Felda Global Ventures Holdings Berhad 88, , , % IJM Plantations Bhd 80, , , % IOI Corporation Bhd 145, , , % Sarawak Oil Palms Bhd 100, , , % Kuala Lumpur Kepong Bhd 24, , , % Property SP Setia Bhd 47, , , % Sunway Bhd 48, , , % Technology Globetronics Technology Bhd 23, , , % Unisem (M) Bhd 63, , , % Inari Amertron Bhd 36, , , % P a g e 43

44 Trading/Services Axiata Group Berhad 162, ,544 1,044, % Berjaya Auto Berhad 286, , , % Dialog Group Bhd 172, , , % E.A. Technique(M) Berhad 123, , , % IHH Healthcare Berhad 72, , , % KPJ Healthcare Bhd 34, , , % Malakoff Corporation Bhd 187, , , % MISC Berhad 50, , , % Maxis Berhad 68, , , % MMC Corporation Bhd 115, , , % MyEG Services Bhd 78, , , % Sime Darby Berhad 134,452 1,228,002 1,042, % SapuraKencana Petroleum Berhad 73, , , % Telekom Malaysia Bhd 65, , , % Tenaga Nasional Bhd 113,487 1,350,163 1,511, % UEM Edgenta Berhad 50, , , % Westports Holdings Berhad 37, , , % Real Estate Investment Trust Axis Real Estate Investment Trust % Total Malaysian Equities 3,775,239 15,767,205 15,955, % Malaysian Debt Securities Kapar Energy Ventures Sdn Bhd 500, , , % BGSM Management Sdn Bhd 439, , , % Senari Synergy Sdn Bhd 250, , , % CIMB Islamic Bank Berhad 200, , , % Anih Berhad 500, , , % DRB Hicom Berhad 500, , , % Projek Lebuhraya Usahasama Berhad 500, , , % Jimah Energy Ventures Sdn Bhd 500, , , % Ranhill Powertron Ii Sdn Bhd 500, , , % TNB Northern Energy Bhd 600, , , % Alam Maritime Resources Bhd 500, , , % Sarawak Energy Berhad 500, , , % Cerah Sama Sdn Bhd 400, , , % Malakoff Power Berhad 400, , , % National Bank Of Abu Dhabi 400, , , % Total Malaysian Equities & Debt Securities 10,465,238 22,730,201 22,733, % P a g e 44

45 ISTIQRAR Security Name Number of Units Total Cost Market Value % of NAV Construction IJM Corporation Bhd 36, , , % Gamuda Bhd 29, , , % Hock Seng Lee Bhd 23,400 43,120 44, % Ho Hup Construction Company Bhd 32,000 44,412 33, % Mitrajaya Holdings Bhd 56,000 63,553 67, % Muhibbah Engineering (M) Bhd 35,600 80,451 78, % Consumer PPB Group Bhd 3,000 46,729 47, % Industrial Products Cahya Mata Sarawak Berhad 16,000 80,080 82, % Petronas Chemicals Group Bhd 28, , , % Petronas Gas Bhd 7, , , % SKP Resources Bhd 31,000 43,447 40, % Infrastructure Project Company Digi.Com Bhd 36, , , % Plantation Genting Plantations Bhd 16, , , % Felda Global Ventures Holdings Berhad 24,000 43,132 41, % IJM Plantations Bhd 21,000 77,091 74, % IOI Corporation Bhd 39, , , % Sarawak Oil Palms Bhd 27, , , % Kuala Lumpur Kepong Bhd 5, , , % Property SP Setia Berhad 13,000 43,563 41, % Sunway Berhad 13,000 43,299 40, % Technology Globetronics Technology Bhd 6,000 37,088 39, % Unisem (M) Bhd 17,800 40,950 42, % Inari Amertron Bhd 10,000 31,421 45, % Trading/Services Axiata Group Berhad 44, , , % Berjaya Auto Berhad 76, , , % Dialog Group Bhd 48,608 84,038 77, % E.A. Technique(M) Berhad 33,000 42,118 36, % IHH Healthcare Berhad 19,000 97, , % KPJ Healthcare Bhd 9,400 35,318 39, % Malakoff Corporation Bhd 49,300 84,913 78, % MISC Berhad 13, , , % Maxis Berhad 17, , , % MMC Corporation Bhd 31,000 71,219 60, % MyEG Services Bhd 20,000 59,278 86, % Sime Darby Berhad 35, , , % P a g e 45

46 Sapurakencana Petroleum Berhad 20,000 44,151 40, % Telekom Malaysia Bhd 18, , , % Tenaga Nasional Bhd 30, , , % Westports Holdings Berhad 10,000 43,028 41, % Real Estate Investment Trust Axis Real Estate Investment Trust % Total Malaysian Equities 1,002,782 4,132,081 4,209, % Malaysian Debt Securities Kapar Energy Ventures Sdn Bhd 500, , , % BGSM Management Sdn Bhd 509, , , % Senari Synergy Sdn Bhd 250, , , % CIMB Islamic Bank Berhad 400, , , % Anih Berhad 500, , , % DRB Hicom Berhad 500, , , % Jimah Energy Ventures Sdn Bhd 500, , , % Ranhill Powertron Ii Sdn Bhd 500, , , % TNB Northern Bhd 500, , , % Alam Maritime 500, , , % Sarawak Energy Berhad 500, , , % Cerah Sama Sdn Bhd 400, , , % Malakoff Power Berhad 400, , , % National Bank Of Abu Dhabi 400, , , % Total Malaysian Equities & Debt Securities 7,362,781 10,786,043 10,675, % P a g e 46

47 myequity INDEX Security Name Number of Units Total Cost Market Value % of NAV Construction Gamuda Bhd 112, , , % IJM Corporation Bhd 164, , , % Ho Hup Construction Company Berhad 10,000 13,879 10, % Mitrajaya Holdings Bhd 21,500 24,500 25, % Muhibbah Engineering (M) Bhd 17,500 38,797 38, % Consumer PPB Group Bhd 32, , , % QL Resources Bhd 29, , , % UMW Holdings Berhad 34, , , % Industrial Products Cahya Mata Sarawak Bhd 28, , , % Hartalega Holdings Bhd 38, , , % Kossan Rubber Industries Bhd 17, , , % Lafarge Malaysia Bhd 23, , , % Petronas Chemicals Group Bhd 151, ,496 1,102, % Petronas Gas Bhd 42, , , % Top Glove Corporation Bhd 22, , , % Infrastructure Project Company Digi.Com Bhd 204,800 1,170,141 1,105, % Time Dotcom Bhd 16, , , % Plantation Felda Global Ventures Holdings Bhd 98, , , % Genting Plantations Bhd 17, , , % IOI Corporation Berhad 142, , , % Kuala Lumpur Kepong Bhd 28, , , % Property IOI Properties Group Bhd 96, , , % Mah Sing Group Bhd 83, , , % SP Setia Berhad 45, , , % Sunway Berhad 40, , , % UEM Sunrise Bhd 84, ,777 94, % Technology Unisem (M) Bhd 25,700 59,193 61, % Inari Amertron Bhd 25,000 78, , % Globetronics Technology Bhd 8,700 48,492 56, % Trading/Services Axiata Group Berhad 240,685 1,474,162 1,542, % Berjaya Auto Berhad 32,800 82,531 70, % Bumi Armada Bhd 179, , , % Dialog Group Bhd 216, , , % IHH Healthcare Berhad 147, , , % P a g e 47

48 KPJ Healthcare Bhd 30, , , % MISC Berhad 78, , , % Malakoff Corporation Berhad 89, , , % Maxis Berhad 138, , , % MMC Corporation Bhd 44, ,484 86, % MyEG Services Bhd 38,500 99, , % Petronas Dagangan Berhad 16, , , % SapuraKencana Petroleum Bhd 202, , , % Sime Darby Berhad 170,714 1,538,013 1,323, % Telekom Malaysia Bhd 116, , , % Tenaga Nasional Bhd 167,325 2,109,404 2,228, % Westports Holdings Bhd 56, , , % Real Estate Investment Trust Axis Real Estate Investment Trust 1,194 1,898 1, % KLCC Property & KLCC Reits Staple Group 24, , , % Total Malaysian Equities 3,648,673 19,530,441 19,815, % P a g e 48

49 mygrowth Security Name Number of Units Total Cost Market Value % of NAV Construction Gamuda Bhd 49, , , % IJM Corporation Bhd 58, , , % Ho Hup Construction Company Bhd 56,000 77,721 59, % Hock Seng Lee Bhd 40,000 73,704 75, % Consumer QL Resources Berhad 19,000 77,977 81, % PPB Group Bhd 5,000 78,168 79, % UMW Holdings Berhad 13, , , % Industrial Products Petronas Chemicals Group Bhd 47, , , % Petronas Gas Bhd 12, , , % SKP Resources Bhd 56,000 78,192 73, % Infrastructure Project Company Time Dotcom Bhd 2,000 11,644 15, % Digi.Com Bhd 47, , , % Plantation Genting Plantations Bhd 26, , , % IJM Plantations Bhd 44, , , % IOI Corporation Berhad 53, , , % Kuala Lumpur Kepong Bhd 13, , , % Sarawak Oil Palms Bhd 18,000 85,778 78, % Property SP Setia Berhad 11,600 38,805 37, % Technology Globetronics Technology Bhd 13,000 80,356 84, % Unisem (M) Bhd 13,300 30,618 31, % Inari Amertron Bhd 26,000 81, , % Trading/Services Axiata Group Berhad 69, , , % Berjaya Auto Berhad 178, , , % Dialog Group Bhd 93, , , % E.A. Technique (M) Berhad 90, , , % IHH Healthcare Berhad 21, , , % KPJ Healthcare Bhd 15,300 57,620 64, % MISC Berhad 16, , , % Maxis Berhad 11,000 73,130 74, % MyEG Services Bhd 19,000 47,668 82, % Petronas Dagangan Berhad 2,500 62,695 62, % Prestariang Berhad 46, , , % Sime Darby Berhad 59, , , % SapuraKencana Petroleum Berhad 34,600 76,253 69, % Tenaga Nasional Bhd 46, , , % P a g e 49

50 Telekom Malaysia Bhd 27, , , % UEM Edgenta Berhad 11,600 37,005 38, % Real Estate Investment Trust Axis Real Estate Investment Trust % Total Malaysian Equities 1,369,287 6,306,270 6,314, % P a g e 50

51 mybluechips Security Name Number of Units Total Cost Market Value % of NAV Construction Gamuda Bhd 48, , , % IJM Corporation Bhd 56, , , % Ho Hup Construction Company Bhd 55,000 76,333 58, % Hock Seng Lee Bhd 38,000 70,014 71, % Consumer QL Resources Berhad 18,000 73,873 77, % PPB Group Bhd 4,700 73,479 74, % UMW Holdings Berhad 12, ,625 94, % Industrial Products Petronas Chemicals Group Bhd 44, , , % Petronas Gas Bhd 12, , , % SKP Resources Bhd 53,000 74,003 69, % Infrastructure Project Company Time Dotcom Bhd 1,100 6,424 8, % Digi.Com Bhd 45, , , % Plantation Genting Plantations Bhd 25, , , % IJM Plantations Bhd 42, , , % IOI Corporation Berhad 52, , , % Kuala Lumpur Kepong Bhd 13, , , % Sarawak Oil Palms Bhd 18,000 85,778 78, % Property SP Setia Berhad 9,600 32,173 30, % Technology Globetronics Technology Bhd 13,000 80,356 84, % Unisem (M) Bhd 13,200 30,406 31, % Inari Amertron Bhd 27,000 84, , % Real Estate Investment Trust Axis Real Estate Investment Trust % Trading/Services Axiata Group Berhad 65, , , % Berjaya Auto Berhad 170, , , % Dialog Group Bhd 89, , , % E.A. Technique (M) Berhad 85, ,742 95, % IHH Healthcare Berhad 20,000 95, , % KPJ Healthcare Bhd 15,000 56,358 63, % MISC Berhad 17, , , % Maxis Berhad 11,700 77,769 79, % MyEG Services Bhd 18,500 46,416 79, % Petronas Dagangan Berhad 2,400 60,187 59, % Prestariang Berhad 43, , , % P a g e 51

52 Sime Darby Berhad 56, , , % SapuraKencana Petroleum Berhad 33,900 75,068 68, % Telekom Malaysia Bhd 26, , , % Tenaga Nasional Bhd 44, , , % UEM Edgenta Berhad 10,200 32,538 33, % Total Malaysian Equities 1,313,336 6,023,557 6,059, % P a g e 52

53 mydividend Security Name Number of Units Total Cost Market Value % of NAV Construction Gamuda Bhd 53, , , % IJM Corporation Bhd 62, , , % Hock Seng Lee Bhd 42,900 79,047 81, % Ho Hup Construction Company Bhd 60,000 83,273 63, % Consumer QL Resources Berhad 21,000 86,185 90, % PPB Group Bhd 6, , , % UMW Holdings Berhad 14, , , % Industrial Products Petronas Gas Bhd 14, , , % Petronas Chemicals Group Bhd 52, , , % SKP Resources Bhd 61,000 85,173 79, % Infrastructure Project Company Digi.Com Bhd 51, , , % Plantation Genting Plantations Bhd 27, , , % IJM Plantations Bhd 48, , , % IOI Corporation Berhad 54, , , % Kuala Lumpur Kepong Bhd 15, , , % Sarawak Oil Palms Bhd 19,000 90,543 83, % Property SP Setia Berhad 12,000 40,143 38, % Technology Globetronics Technology Bhd 14,000 86,537 91, % Unisem (M) Bhd 14,500 33,409 34, % Inari Amertron Bhd 28,000 88, , % Real Estate Investment Trust Axis Real Estate Investment Trust 968 1,539 1, % Trading/Services Axiata Group Berhad 74, , , % Berjaya Auto Berhad 192, , , % Dialog Group Bhd 103, , , % E.A. Technique (M) Berhad 98, , , % IHH Healthcare Berhad 21, , , % KPJ Healthcare Bhd 16,500 61,976 69, % MISC Berhad 17, , , % Maxis Berhad 13,900 92,350 94, % MyEG Services Bhd 17,500 43,930 75, % Petronas Dagangan Berhad 3,500 60,083 87, % Prestariang Berhad 49, , , % P a g e 53

54 Sime Darby Berhad 64, , , % SapuraKencana Petroleum Berhad 38,900 85,937 78, % Telekom Malaysia Bhd 29, , , % Tenaga Nasional Bhd 50, , , % UEM Edgenta Berhad 12,000 38,281 39, % Total Malaysian Equities 1,477,980 6,802,568 6,825, % P a g e 54

55 mybalanced Security Name Number of Units Total Cost Market Value % of NAV Construction IJM Corporation Bhd 24,000 82,493 81, % Gamuda Bhd 17,900 91,569 83, % Ho Hup Construction Company Bhd 21,000 29,146 22, % Hock Seng Lee Bhd 14,500 26,748 27, % Mitrajaya Holdings Bhd 36,000 41,072 43, % Muhibbah Engineering (M) Bhd 23,700 53,191 52, % Consumer PPB Group Bhd 2,000 31,153 31, % Industrial Products Cahya Mata Sarawak Berhad 11,000 55,091 56, % Petronas Gas Bhd 5, , , % Petronas Chemicals Group Bhd 19, , , % SKP Resources Bhd 21,000 29,432 27, % Infrastructure Project Company Digi.Com Bhd 24, , , % Plantation Genting Plantations Bhd 11, , , % Felda Global Ventures Holdings Berhad 17,000 30,552 29, % IJM Plantations Bhd 15,000 55,050 53, % IOI Corporation Bhd 26, , , % Kuala Lumpur Kepong Bhd 4,100 92,073 93, % Sarawak Oil Palms Bhd 18,000 85,032 78, % Property SP Setia Berhad 8,000 26,812 25, % Sunway Berhad 8,000 26,645 24, % Technology Globetronics Technology Bhd 4,000 24,725 26, % Unisem (M) Bhd 11,000 25,355 26, % Inari Amertron Bhd 6,000 18,877 27, % Trading/Services Axiata Group Berhad 28, , , % Berjaya Auto Berhad 51, , , % Dialog Group Bhd 29,304 50,155 46, % E.A. Technique (M) Berhad 23,000 29,597 25, % IHH Healthcare Berhad 13,000 72,420 85, % KPJ Healthcare Bhd 5,500 20,684 23, % MISC Berhad 9,000 73,452 84, % Malakoff Corporation Bhd 32,300 55,525 51, % Maxis Berhad 12,300 82,023 83, % MMC Corporation Bhd 20,000 45,634 39, % MyEG Services Bhd 14,000 42,620 60, % P a g e 55

56 Sime Darby Berhad 22, , , % Sapurakencana Petroleum Berhad 14,000 30,906 28, % Telekom Malaysia Bhd 11,739 76,623 79, % Tenaga Nasional Bhd 20, , , % UEM Edgenta Berhad 9,000 28,711 29, % Wesports Holdings Berhad 7,000 30,121 28, % Real Estate Investment Trust Axis Real Estate Investment Trust % Total Malaysian Equities 671,480 2,837,770 2,837, % Malaysian Debt Securities BGSM Management Sdn Bhd 220, , , % Bank Islam Malaysia Berhad 200, , , % CIMB Islamic Bank Berhad 200, , , % Projek Lebuhraya Usahasama Berhad 250, , , % Jimah Energy Ventures Sdn Bhd 250, , , % Ranhill Powertron II Sdn Bhd 250, , , % TNB Northern Bhd 250, , , % Alam Maritime Resources Bhd 250, , , % Kapar Energy Ventures Sdn Bhd 250, , , % Sarawak Energy Berhad 250, , , % Cerah Sama Sdn Bhd 200, , , % Malakoff Power Berhad 200, , , % National Bank Of Abu Dhabi 200, , , % Jimah East Power Sdn Bhd 200, , , % Total Malaysian Equities & Debt Securities 3,841,480 6,144,071 6,058, % P a g e 56

57 COMPARATIVE PERFORMANCE TABLE ITTIZAN Portfolio Composition 31-Dec Dec Dec Dec Dec-11 (%) (%) (%) (%) (%) a. Equities: Construction Consumer Products Industrial Products Infrastructure Plantation Property Trading & Services REITs Derivatives b. Islamic Debt Securities c. Money Market & Cash TOTAL Dec Dec Dec Dec Dec-11 Total NAV (RM) 22,977,064 23,385,210 24,457,156 22,774,730 21,239,238 Number of units 12,248,713 12,518,467 12,926,122 13,530,802 13,871,401 NAV per Unit (RM) Highest NAV (RM) Lowest NAV (RM) Total Annual Return (% p.a) a) Capital Growth b) Income Distributions Average Annual Return : One-Year Three-Year Five-Year Benchmark Performance (70% FBM Shariah Index : 30% 1-Month GIA Rates Maybank) Average Annual Return : One-Year Three-Year Five-Year P a g e 57

58 ISTIQRAR Portfolio Composition 31-Dec Dec Dec Dec Dec-11 (%) (%) (%) (%) (%) a. Equities: Construction Consumer Products Industrial Products Infrastructure Plantation Property Trading & Services REITs b. Islamic Debt Securities c. Money Market & Cash TOTAL Dec Dec Dec Dec Dec-11 Total NAV (RM) 12,410,092 12,400,830 12,534,317 12,120,158 11,715,673 Number of units 8,611,777 8,751,945 8,904,600 9,203,208 9,423,878 NAV per Unit (RM) Highest NAV (RM) Lowest NAV (RM) Total Annual Return (% p.a) a) Capital Growth b) Income Distributions Average Annual Return : One-Year Three-Year Five-Year Benchmark Performance (30% FBM Shariah Index : 70% 1-Month GIA Rates Maybank) Average Annual Return : One-Year Three-Year Five-Year P a g e 58

59 myequity INDEX Portfolio Composition 31-Dec Dec Dec Dec Dec-11 (%) (%) (%) (%) (%) a. Equities: Construction Consumer Products Industrial Products Information Technology Infrastructure Plantation Property Trading & Services Warrants b. Islamic Debt Securities c. Money Market & Cash TOTAL Dec Dec Dec Dec Dec-11 Total NAV (RM) 21,199,201 15,781,182 12,377,753 7,722,366 5,058,579 Number of units 12,187,734 9,160,411 7,153,541 5,126,342 3,790,811 NAV per Unit (RM) Highest NAV (RM) Lowest NAV (RM) Total Annual Return (% p.a) a) Capital Growth b) Income Distributions Average Annual Return : One-Year Three-Year Five-Year Benchmark Performance (FBM Shariah Index) Average Annual Return : One-Year Three-Year Five-Year P a g e 59

60 mygrowth Portfolio Composition 31-Dec Dec Dec Dec Dec-11 (%) (%) (%) (%) (%) a. Equities: Construction Consumer Products Industrial Products Information Technology Infrastructure Plantation Property Trading & Services REITS b. Islamic Debt Securities c. Money Market & Cash TOTAL Dec Dec Dec Dec Dec-11 Total NAV (RM) 8,003,942 7,013,066 6,254,346 4,620,531 3,786,286 Number of units 5,912,989 5,177,770 4,510,356 3,867,556 3,383,972 NAV per Unit (RM) Highest NAV (RM) Lowest NAV (RM) Total Annual Return (% p.a) a) Capital Growth b) Income Distributions Average Annual Return : One-Year Three-Year Five-Year Benchmark Performance (FBM Shariah Index) Average Annual Return : One-Year Three-Year Five-Year P a g e 60

61 myblue CHIPS Portfolio Composition 31-Dec Dec Dec Dec Dec-11 (%) (%) (%) (%) (%) a. Equities: Construction Consumer Products Industrial Products Information Technology Infrastructure Plantation Property Trading & Services REITS b. Islamic Debt Securities c. Money Market & Cash TOTAL Dec Dec Dec Dec Dec-11 Total NAV (RM) 7,547,029 6,832,540 6,067,297 4,579,614 3,672,455 Number of units 5,471,230 4,955,050 4,302,222 3,733,835 3,335,751 NAV per Unit (RM) Highest NAV (RM) Lowest NAV (RM) Total Annual Return (% p.a) a) Capital Growth b) Income Distributions Average Annual Return : One-Year Three-Year Five-Year Benchmark Performance (FBM Shariah Index) Average Annual Return : One-Year Three-Year Five-Year P a g e 61

62 mydividend Portfolio Composition 31-Dec Dec Dec Dec Dec-11 (%) (%) (%) (%) (%) a. Equities: Construction Consumer Products Industrial Products Information Technology Infrastructure Plantation Property Trading & Services REITs b. Islamic Debt Securities c. Money Market & Cash TOTAL Dec Dec Dec Dec Dec-11 Total NAV (RM) 8,791,957 7,461,149 6,687,100 4,719,043 3,741,263 Number of units 5,975,763 5,036,643 4,487,083 3,638,863 3,306,250 NAV per Unit (RM) Highest NAV (RM) Lowest NAV (RM) Total Annual Return (% p.a) a) Capital Growth b) Income Distributions Average Annual Return : One-Year Three-Year Five-Year Benchmark Performance (FBM Shariah Index) Average Annual Return : One-Year Three-Year Five-Year P a g e 62

63 mybalanced Portfolio Composition 31-Dec Dec Dec Dec Dec-11 (%) (%) (%) (%) (%) a. Equities: Construction Consumer Products Industrial Products Information Technology Infrastructure Plantation Property Trading & Services REITs b. Islamic Debt Securities c. Money Market & Cash TOTAL Dec Dec Dec Dec Dec-11 Total NAV (RM) 7,656,683 6,725,771 5,146,369 4,141,321 3,458,390 Number of units 6,352,300 5,668,099 4,356,342 3,762,770 3,326,291 NAV per Unit (RM) Highest NAV (RM) Lowest NAV (RM) Total Annual Return (% p.a) a) Capital Growth b) Income Distributions Average Annual Return : One-Year Three-Year Five-Year Benchmark Performance (FBM Shariah Index) Average Annual Return : One-Year Three-Year Five-Year P a g e 63

64 P a g e 64