BIMB i DIVIDEND FUND

Transcription

1 BIMB i DIVIDEND FUND ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2017 LAPORAN TAHUNAN BAGI TAHUN KEWANGAN BERAKHIR 31 OKTOBER 2017 MANAGER: BIMB INVESTMENT MANAGEMENT BERHAD ( X)

2 TABLE OF CONTENT 1.0 Manager s Report Fund Name/ Fund Type/ Fund Category/ Fund Investment Objective Performance for the Financial Year Ended 31 October Economic and Market Review Market Outlook and Strategy Asset Allocation as at 31 October Other Performance Data for the Financial Year Ended 31 October Unit Holdings as at 31 October Policy on Rebate and Soft Commission Trustee s Report Shariah Committee s Report Directors Declaration Report Independent Auditors Report Financial Statements (Audited) Corporate Directory 59 2

3 1.0 Manager s Report Dear Unitholders, We are pleased to present the Manager s report of BIMB i Dividend Fund for the financial year ended 31 October Fund Name/ Fund Type/ Fund Category/ Fund Investment Objective/ Fund Performance Benchmark/ Fund Distribution Policy Fund Name Fund Type Fund Category Fund Investment Objective BIMB i Dividend Fund Income and Growth Equity This Fund aims to primarily provide investors with a combination of steady and recurring income and capital growth in the medium to long term* through investments in Shariah-compliant dividend yielding equities, which historically offered solid performance and is generally less volatile when compared to the broader equity market. Note: Any material change to the investment objective of the Fund would require Unit Holders approval. Fund Performance Benchmark The Fund will be measured against an absolute return benchmark of 6% per annum. This is not a guaranteed return and it is only a measurement of the Fund s performance. The Fund may or may not achieve 6% per annum growth rate in any particular financial year but targets to achieve this growth rate through long term. Fund Distribution Policy The Manager will declare annual distributions (subject to the availability of income). * medium to long term in this context refers to three (3) years or more. 3

4 1.2 Performance for the Financial Year Ended 31 October Performance review for BIMB i Dividend Fund For the financial year under review, BIMB i Dividend Fund (the Fund) declared a net income distribution of 1.54 sen per unit, equivalent to a yield of 7.54% per annum. The selected performance benchmark for this Fund is an absolute return benchmark of 6.00% per annum. The Fund registered a return of 9.50% as compared to its Benchmark s return of 6.00%. For the financial year under review, the FTSE Bursa Malaysia EMAS Shariah Index registered a gain of 5.64% as foreign investors returned to Malaysia to increase their holdings in local equities. Our strategy has consistently remained to focus on investing in stocks with consistent track record of dividend distribution and potential capital growth over medium to long term. During the financial year ended 31 October 2017, the Fund was able to deliver higher than its historical dividend yield as better market conditions and stronger than expected GDP growth for Malaysia had help shore up local stocks share price performance in Hence, for the financial year under review, the Fund has met its objectives of providing investors with a steady annual income stream and capital growth through investments in dividend yielding equities that historically tends to offer good returns during equity market recovery periods. As at 31 October 2017, the fund had 97.40% exposure to equities and continues to be managed in line with its stated objective by investing in dividend yielding equities. For the year ended 31 October 2017, there were no significant changes to the state of affairs of the Fund and no circumstances that materially affect the interest of Unit Holders that have taken place up to the date of this Manager s Report. 4

5 1.2.2 Total Return and Average Total Return for the Financial Year Ended 31 October Year Period (Nov16 Oct17) 3-Year Period (Nov14 Oct17) 5-Year Period (Nov12 Oct17) BIMB i Dividend Fund Total Average Return Total Return (%) (%) Total Return (%) Benchmark Average Total Return (%) Total Return for the Last 5 Financial Years Financial Years BIMB i Dividend Fund (%) Total Return Benchmark (%) 31 October October October October October Income Distribution for the Last 5 Financial Years Financial Years Income Distribution Distribution (sen)/ unit Distribution Yield per annum (%) Benchmark per annum (%) 31 October October October October October

6 Figure 1: Performance of the Fund versus the Benchmark TOTAL RETURN FUNDAND BENCHMARK TOTAL RETURN 13.0% BIMB I-Dividend Benchmark 8.0% 3.0% 3.04% 6.00% 6.00% 4.70% 6.00% 6.00% 6.00% 9.50% -2.0% -7.0% 31-Oct Oct Oct Oct Oct % -12.0% % Note: Data Source Data verified by Benchmark : BIMB Investment Management Berhad : Novagni Analytics & Advisory Sdn. Bhd. : Absolute return of 6% per annum Notes: 1. Total Return of the Fund has been verified by Novagni Analytics & Advisory Sdn. Bhd. 2. Average Total return is derived by this formula: Total Return Number of Years under Review Past performance is not necessarily indicative of future performance and unit prices and investment returns may go down, as well as up. 6

7 1.3 Economic and Market Review Economy a) Global United States (US) Gross Domestic Product (GDP) grew by 3.3% in the third quarter of 2017 as compared to 3.1% growth in the second quarter of 2017 and 1.2% in the first quarter of US inflation rate remains healthy at 2.0% in October 2017 while US unemployment rate continues to improve to 4.1% in October 2017 as compared to 4.6% in November Moving forward, the Fed intends to execute more potential rate hikes and quantitative tightening for the US in the near term. The Euro zone economy grew by 0.6% in the third quarter of 2017 as compared to 0.7% in the second quarter 2017 and 0.6% in the first quarter of The Euro zone economic recovery has gained momentum while unemployment has fallen against a backdrop of ultra-low interest rates which are among the measures implemented by the European Central Bank (ECB) to boost economic activity. The Chinese economy grew by 6.8% for the third quarter of 2017, as compared to 6.9% in the second quarter of 2017 following improved industrial output and private consumption, aided by a robust property market and recovery in the exports sector. Overall, major global economies appear to be recovering in tandem while market sentiment for the emerging markets improved during the period under review. (Source: Bloomberg, CIMB Research and RHB Research Institute Sdn Bhd) b) Local The Malaysian economy grew faster at 6.2% in the third quarter of 2017 as compared to 5.8% in the second quarter 2017 and 5.6% in the first quarter The stronger GDP growth for the period was due to improvements in private consumption and exports. Malaysia s inflation on the other hand rose to 3.7% in October 2017, up from 1.8% in November 2016 driven by higher oil prices and stronger GDP performance. Despite the higher inflationary pressure faced by the local economy, Bank Negara Malaysia s Monetary Policy Committee (MPC) had decided to maintain the Overnight Policy Rate (OPR) at 3.00% during its September meeting to accommodate and support growth prospect for the country. Bank Negara s international reserve rose to USD billion as at 31 October 2017 as compared to USD 96.4 billion in November 2016 that is sufficient to finance 7.6 months of retained imports and is 1.1 times the short-term external debt. (Source: Bank Negara Malaysia, Bloomberg, CIMB Research and RHB Research Institute Sdn Bhd) 7

8 Market Review Equity FTSE Bursa Malaysia EMAS Shariah Index ( FBM Shariah ) commenced the year under review at 12, points and declined to 11, points on 30 November The FBM Shariah subsequently rose to 13, on 16 May 2017 and closed at 13, points on 31 October For the year under review, the FBM Shariah was up points or 5.64% while the FBM KLCI was up by points or 4.51% to close at 1, points. Among the key factors that contributed to the movement of the index are highlighted below: In November 2016, Donald Trump s victory in the U.S. presidential election caught the general markets off-guard as investors flock to safe heaven assets like gold, bond and the Japanese yen, perceiving Trump s administration would bring uncertainty to the markets. The Asian markets reacted with a sharp selldown, however subsequently, global investors rebalanced their portfolio to take advantage of the perceived stronger US growth and higher US bond yields. In April 2017, a historic meeting between US President Donald Trump and China s leader Xi Jinping signaled more understanding between the two countries after a summit held in Florida, USA and appears to have successfully defused a potential trade war between the world s two largest economies. A stabilizing US-China trade relationship will allow the US Federal Reserve to conduct its third rate hike of the year by 25bps to 1.50% on the back of stronger economic fundamentals in the US. In August 2017, the North Korea and US dispute escalated to new heights post of North Korea s missile testing exercise that had prompted US President Trump to issue a retaliation warning. However, markets were quick to discount the negative news and sentiment recovered subsequently as the US Federal Reserve announced of its quantitative tightening measures. The Fed intends to retire USD3.6 trillion or 50% of its Quantitative easing money in the market in three years time along with more rate hikes in the short to medium term horizon. (Source: Bloomberg, CIMB Research and RHB Research Institute Sdn Bhd) 8

9 1.4 Market Outlook and Strategy For the rest of 2017, the equity market is expected to be volatile. External factors may likely influence the domestic market sentiment, which includes the OPEC and Non-OPEC commitment to stabilize the oil glut, US President Trump s stance on North Korea s nuclear ambition and potential military strike. With potential interest on selective sector to support the domestic market, the local bourse should be able to withstand external shocks given the ample domestic liquidity and buying interest from foreign and local institutional investors. While the global economy continues to expand at a moderate pace, there has been increasing divergence in the growth momentum among the major economies. For most of Asia, growth is supported by the continued expansion of domestic demand. Looking ahead, the global economy is expected to continue on a moderate recovery path. For Malaysia, the resilience of domestic consumption remains the support for growth. With higher spending on infrastructure projects underway, higher public sector wages adjustments, improved outlook for crude palm oil production volume and a rebound in government consumption and expenditure will help to improve corporate earnings and consumer spending for the year. 9

10 1.5 Asset Allocation as at 31 October 2017 BIMB i Dividend Fund Investment In Quoted Securities 2017 (%) 2016 (%) 2015 (%) Construction Consumer Products Finance Industrial Products Infrastructure Plantation Properties REITs Technology Trading and Services Warrant CASH AND SHORT TERM INVESTMENTS:

11 1.6 Other Performance Data for the Financial Year Ended 31 October 2017 BIMB i Dividend Fund Unit Prices (MYR) Highest net asset value ( NAV ) per unit for the year* Lowest NAV per unit for the year* Net Asset Value (NAV) and Units in Circulation (UIC) as at the End of the Year Total NAV (MYR) 173,998, ,152, ,658,890 Units in Circulation (UIC) 835,418, ,618, ,832,925 NAV per unit (MYR)* Return of Fund (%) (a) Capital Growth (%) (b) 1.96 (7.60) (14.96) Income Return (%) (c) Return of Fund (%) 9.50 (4.30) (10.15) Gross Distribution per Unit (Sen) Net Distribution per Unit (Sen) NAV per Unit before Distribution (MYR) NAV per Unit after Distribution (MYR) Date of Distribution 31 October 31 October 31 October Management Expense Ratio (MER) (d) (%) Portfolio Turnover Ratio (PTR) (e) (times) *The price and NAV per unit are ex-distribution Note: a) Return of the Fund = NAV per unit (end of financial year) - 1 NAV per unit (beginning of financial year) b) Capital Growth = Total Return of the Fund Income Return c) Income Return = {Income Distribution per Unit / NAV per Unit on beginning of financial year} x 100 d) Management Expenses = Ratio It is the total management expenses expressed as an annual percentage of the Fund s average NAV 11

12 e) Portfolio Turnover Ratio = It represents the average of the total acquisitions and disposals of the investment in the Fund for the annual period over the average Net Asset Value of the Fund calculated on a daily basis 1.7 Unit Holdings as at 31 October 2017 Size of Unit Holdings No. of Unit Holders BIMB i Dividend Fund No. of Units Held No. % Units % 5,000 and below ,702, ,001 to 10, ,557, ,001 to 50, ,788, ,001 to 500, ,524, ,001 and above * ,845, Units Held by Holders 1, ,418, Units Held by Manager Grand Total for The Fund *included under this category are nominee accounts 1.8 Policy on Rebate and Soft Commission 1, ,418, Any stock broking rebates received by the Manager will be directed to the account of the Fund. Any soft commissions received from the broker which are in the form of research and advisory services that assist in the decision-making process relating to the Fund s investment may be retained by the Manager. The Manager received soft commission from brokers in the form of research and advisory services during the year under review. For and on behalf of The Manager BIMB INVESTMENT MANAGEMENT BERHAD Date: 21 December

13 1.0 Laporan Pengurus Para Pemegang Unit yang dihormati, Kami dengan sukacitanya membentangkan Laporan Pengurus BIMB i Dividend Fund bagi tahun kewangan berakhir 31 Oktober Nama Dana/ Jenis Dana/ Kategori Dana/ Objektif Pelaburan Dana/ Penanda Aras Dana/ Polisi Agihan Dana Nama Dana Jenis Dana Kategori Dana Objektif Pelaburan Dana BIMB i Dividend Fund Dana Pendapatan dan Pertumbuhan Ekuiti Tujuan utama Dana ini adalah untuk mewujudkan peluang kepada pelabur, kombinasi pendapatan yang stabil dan berulang serta pertumbuhan modal dalam jangka sederhana hingga jangka panjang* melalui pelaburan dalam ekuiti patuh Syariah yang menghasilkan dividen, yang mana mengikut sejarah menawarkan prestasi yang kukuh dan secara amnya lebih stabil berbanding pasaran ekuiti secara keseluruhan. Nota: Sebarang perubahan ketara pada objektif pelaburan Dana memerlukan kelulusan Pemegang Unit. Penanda Aras Dana Polisi Agihan Dana Dana akan diukur berdasarkan penanda aras pulangan mutlak 6% setahun. Ini bukanlah satu pulangan yang dijamin dan ia hanyalah ukuran prestasi Dana. Dana ini mungkin atau mungkin tidak mencapai kadar pertumbuhan 6% setahun pada mana-mana tahun kewangan tertentu tetapi mempunyai sasaran untuk mencapai pulangan ini menerusi pertumbuhan jangka panjang. Pengurus akan mengisytiharkan agihan tahunan (tertakluk kepada pendapatan diperolehi). * jangka sederhana hingga jangka panjang dalam konteks ini merujuk kepada tiga (3) tahun atau lebih. 13

14 1.2 Pencapaian bagi Tahun Kewangan Berakhir 31 Oktober Kajian Pencapaian bagi BIMB i Dividend Fund Bagi tahun kewangan dalam kajian, BIMB i Dividend Fund (Dana) telah mengumumkan agihan pendapatan bersih sebanyak 1.54 sen seunit, bersamaan dengan hasil pulangan sebanyak 7.54% setahun. Penanda aras terpilih prestasi Dana adalah penanda aras pulangan mutlak sebanyak 6.00% setahun. Dana mencatatkan pulangan sebanyak 9.50% berbanding pulangan penanda aras sebanyak 6.00%. Bagi tahun kewangan dalam kajian, Indeks Syariah EMAS FTSE Bursa Malaysia mencatatkan keuntungan sebanyak 5.64% berikutan para pelabur asing kembali ke Malaysia untuk meningkatkan pegangan mereka dalam pasaran ekuiti tempatan. Strategi kami secara konsisten menumpukan kepada pelaburan dalam sahamsaham yang mempunyai rekod pencapaian yang berterusan dalam pengagihan dividen dan berpotensi untuk mencatatkan pertumbuhan modal dalam jangka sederhana dan panjang. Dalam tahun kewangan berakhir pada 31 Oktober 2017, Dana telah berjaya meraih hasil dividen lebih tinggi berbanding sejarahnya berikutan keadaan pasaran lebih baik dan pertumbuhan keluaran dalam negara kasar (KDNK) Malaysia yang lebih kukuh telah menyokong melonjakkan lagi prestasi hargaharga saham tempatan pada Sehubungan itu, untuk tahun kewangan dalam kajian, Dana telah mencapai objektifnya untuk membolehkan para pelabur menikmati aliran pendapatan tahunan yang stabil dan pertumbuhan modal melalui pelaburan ekuiti yang menawarkan hasil dividen yang berdasarkan sejarahnya memberikan pulangan yang baik ketika tempoh pemulihan pasaran ekuiti. Setakat 31 Oktober 2017, Dana mempunyai pendedahan dalam pasaran ekuiti sebanyak 97.40% dan kekal diuruskan sejajar dengan objektifnya yang dinyatakan iaitu melabur dalam ekuiti yang memberikan hasil pulangan dividen. Bagi tahun berakhir 31 Oktober 2017, tidak terdapat sebarang perubahan ketara dalam hal ehwal pengurusan Dana dan tiada berlakunya sebarang keadaan yang menjejaskan kepentingan para Pemegang Unit sehingga tarikh Laporan Pengurus ini disediakan. 14

15 1.2.2 Jumlah Pulangan dan Purata Jumlah Pulangan Bagi Tempoh Kewangan Berakhir Pada 31 Oktober 2017 Jangkamasa 1- Tahun (Nov16 Okt17) Jangkamasa 3- Tahun (Nov14 Okt17) Jangkamasa 5 Tahun (Nov12 Okt17) BIMB i Dividend Fund Purata Jumlah Jumlah Pulangan Pulangan (%) (%) Penanda Aras Jumlah Pulangan (%) Purata Jumlah Pulangan (%) Jumlah Pulangan Bagi 5 Tahun Kewangan Terakhir Tahun Kewangan BIMB i Dividend Fund (%) Jumlah Pulangan Penanda Aras (%) 31 Oktober Oktober Oktober Oktober Oktober Agihan Pendapatan Bagi 5 Tahun Kewangan Terakhir Tahun Kewangan Pengagihan Pendapatan Pengagihan (sen)/ unit Pengagihan KeuntuganTahunan (%) Penanda Aras Tahunan (%) 31 Oktober Oktober Oktober Oktober Oktober

16 Rajah 1: Prestasi Dana Berbanding Pulangan Penanda Aras Nota: Sumber Data : BIMB Investment Management Berhad Data disahkan oleh : Novagni Analytics & Advisor Sdn. Bhd. Penanda Aras : Pulangan mutlak sebanyak 6% setahun Nota: 1. Jumlah Pulangan telah disahkan oleh Novagni Analytics & Advisor Sdn. Bhd. 2. Jumlah Pulangan Purata adalah berpandukan formula berikut: Jumlah Pulangan Bilangan Tahun Bawah Kajian Prestasi tahun-tahun sebelum ini tidak semestinya menjadi petunjuk prestasi masa depan dan harga unit serta pulangan pelaburan mungkin turun dan naik. 16

17 1.3 Ekonomi dan Kajian Pasaran Ekonomi a) Global Keluaran Dalam Negara Kasar (KDNK) Amerika Syarikat (AS) berkembang sebanyak 3.3% pada suku ketiga 2017 berbanding pertumbuhan 3.1% pada suku kedua 2017 dan 1.2% pada suku pertama Kadar inflasi AS kekal sihat iaitu sekitar 2.0% pada Oktober 2017 sementara kadar pengangguran AS terus menurun kepada 4.1% pada Oktober 2017 daripada 4.6% pada November Bergerak kehadapan, pihak Rizab Persekutuan AS bercadang untuk menaikan kadar faedah dan pengetatan kuantitatif di AS dalam tempoh terdekat. Ekonomi zon Euro berkembang sebanyak 0.6% pada suku ketiga 2017 berbanding 0.7% pada suku kedua 2017 dan 0.6% pada suku pertama Pemulihan ekonomi zon Euro menyaksikan berlakunya peningkatan momentum dengan kadar pengangguran telah menurun di sebalik kejatuhan kadar faedah yang teramat rendah, iaitu di antara langkah-langkah yang telah dilaksanakan oleh Bank Pusat Eropah (ECB) untuk meningkatkan aktiviti ekonomi. Ekonomi China berkembang sebanyak 6.8% pada suku ketiga 2017 berbanding 6.9% pada suku pertama 2017 berikutan peningkatan dalam pengeluaran perindustrian dan penggunaan swasta yang dibantu oleh pasaran hartanah yang kukuh dan pemulihan sektor eksport. Secara keseluruhan, ekonomi utama dunia kelihatan semakin pulih dengan kadar yang sejajar, dan sentimen untuk prestasi pasaran saham untuk pasaran-pasaran baru telah meningkat pada tempoh dalam kajian. (Sumber: Bloomberg, CIMB Research dan RHB Research Institute Sdn Bhd) 17

18 b) Dalam Negara Ekonomi Malaysia berkembang lebih pantas sebanyak 6.2% pada suku ketiga 2017 berbanding 5.8% pada suku kedua 2017 dan 5.6% pada suku pertama KDNK yang lebih kukuh dalam tempoh berkenaan adalah hasil peningkatan dalam penggunaan swasta dan eksport. Kadar inflasi Malaysia pada Oktobar 2017 meningkat kepada 3.7% daripada 1.8% pada November 2016, didorong oleh kenaikan harga minyak dan prestasi pertumbuhan KDNK yang lebih kukuh. Meskipun terdapat tekanan inflasi yang lebih tinggi yang dihadapi oleh ekonomi tempatan, Jawatankuasa Dasar Monetari Bank Negara Malaysia (MPC) mengekalkan Kadar Dasar Semalaman (OPR) pada paras 3.00% dalam mesyuaratnya yang diadakan pada September bagi menampung dan menyokong prospek pertumbuhan negara. Rizab antarabangsa Bank Negara meningkat kepada AS$101.5 bilion setakat pada 31 Oktober 2017 berbanding AS$96.4 bilion pada November 2016 yang memadai untuk membiayai 7.6 bulan import tertangguh dan mewakili 1.1 kali hutang jangka pendek luar negara. (Sumber: Bank Negara Malaysia, Bloomberg, CIMB Research dan RHB Research Institute Sdn Bhd) Kajian Pasaran Ekuiti Indeks Syariah EMAS FTSE Bursa Malaysia (Syariah FBM) memasuki tempoh dalam kajian pada paras 12, mata dan jatuh ke paras terendah 11, mata pada 30 November Indeks Syariah FBM kemudianya naik mencecah ke paras tertinggi 13, mata pada 16 Mei 2017 dan ditutup pada paras 13, mata pada 31 Oktober Bagi tahun dalam kajian, FBM Syariah meningkat sebanyak mata atau 5.64% manakala FBM KLCI naik sebanyak mata atau 4.51% untuk ditutup pada paras 1, mata. Antara faktorfaktor utama yang menyumbang kepada pergerakan indeks adalah seperti berikut: Pada November 2016, kemenangan Donald Trump dalam pilihan raya Presiden AS adalah di luar jangkaan dan mengejutkan pasaran amnya apabila para pelabur berpusu-pusu mencari aset pelaburan yang selamat seperti emas, bon dan yen Jepun kerana mempercayai bahawa pentadbiran Trump akan menyebabkan berlakunya ketidaktentuan dalam pasaran. Pasaran Asia pula mengalami kegiatan jualan secara besar-besaran sebelum para pelabur sejagat kemudiannya mengimbangi semula portfolio mereka untuk mengambil faedah daripada pertumbuhan lebih kukuh dalam ekonomi AS dan kadar hasil bon AS yang lebih tinggi. 18

19 Pada April 2017, pertemuan bersejarah antara Presiden AS Donald Trump dan pemimpin China, Xi Jinping telah menunjukkan persefahaman yang lebih di antara kedua-dua negara itu selepas sidang kemuncak diadakan di Florida, AS yang mungkin dapat melenyapkan potensi berlakunya perang perdagangan antara dua kuasa ekonomi terbesar dunia. Hubungan perdagangan AS-China yang stabil juga telah membolehkan Rizab Persekutuan AS menaikkan kadar faedah ketiga pada tahun ini sebanyak 25bps kepada 1.50% berasaskan fundamental ekonomi yang lebih kukuh dalam ekonomi AS. Pada Ogos 2017, pertikaian antara Korea Utara dengan AS semakin memuncak selepas Korea Utara melakukan ujian peluru berpandu sehingga Presiden Trump mengeluarkan amaran untuk bertindak balas. Walau bagaimanapun, pasaran bertindak cepat untuk tidak mengendahkan berita buruk tersebut dan sentimen kemudiannya pulih berikutan pengumuman Rizab Persekutuan Amerika Syarikat akan memulakan langkah pengetatan kuantitatifnya. Rizab Persekutuan Amerika Syarikat bercadang untuk menghentikan program kelonggaran kuantitatif sebanyak AS$3.6 trilion atau 50% daripada wangnya dalam pasaran bagi tempoh tiga tahun akan datang selain melakukan lebih banyak kenaikan kadar faedah dalam jangka masa pendek ke sederhana. (Sumber: Bloomberg, CIMB Research dan RHB Research Institute Sdn Bhd) 1.4 Tinjauan Pasaran dan Strategi Untuk baki tahun 2017, pasaran ekuiti dijangka akan terus berada dalam keadaan tidak menentu. Faktor luaran berkemungkinan mempengaruhi sentimen pasaran domestik termasuklah komitmen negara-negara anggota OPEC dan bukan OPEC untuk menstabilkan pasaran minyak yang mengalami lebihan pengeluaran, pendirian Presiden Trump terhadap cita-cita nuklear Korea Utara dan kemungkinan tindakan ketenteraan. Dengan potensi minat terhadap sektor terpilih untuk menyokong pasaran domestik, bursa tempatan seharusnya berupaya menahan kejutan luaran memandangkan terdapat mudah tunai yang mencukupi dalam negara dan minat belian daripada para pelabur institusi asing dan tempatan. Ketika ekonomi global terus berkembang pada kadar yang sederhana, pencapahan didapati meningkat dalam momentum pertumbuhan dikalangan kuasa-kuasa ekonomi yang utama. Bagi sebahagian besar negara Asia, pertumbuhan ekonomi disokong oleh pengembangan permintaan domestik yang berterusan. Melangkah ke hadapan, ekonomi global dijangka akan terus berada pada landasan pemulihan yang sederhana. 19

20 Pengukuhan penggunaan domestik kekal menyokong pertumbuhan ekonomi Malaysia. Dengan jumlah perbelanjaan lebih besar diperuntukkan kepada projek-projek infrastruktur yang sedang dijalankan, gaji sektor awam yang lebih tinggi, tinjauan jumlah pengeluaran minyak sawit mentah yang bertambah baik dan terdapat lonjakan dalam penggunaan dan perbelanjaan kerajaan akan membantu menambah baik pendapatan korporat dan perbelanjaan pengguna pada tahun ini. 1.5 Peruntukan Aset Setakat 31 Oktober 2017 BIMB i Dividend Fund Pelaburan Sekuriti Tersiarharga 2017 (%) 2016 (%) 2015 (%) Pembinaan Barangan Pengguna Kewangan Barangan Industri Infrastruktur Perladangan Hartanah REITs Teknologi Perdagangan dan Perkhidmatan Waran TUNAI DAN PELABURAN JANGKA PENDEK:

21 1.6 Lain-Lain Data Prestasi bagi Tahun Kewangan Berakhir 31 Oktober 2017 BIMB i Dividend Fund Harga Unit (RM) Nilai aset bersih (NAB) tertinggi seunit dalam setahun* NAB terendah seunit dalam setahun* Nilai Aset Bersih (NAB) dan Unit Dalam Edaran (UDE) pada Akhir Tahun Jumlah NAB (RM) 173,998, ,152, ,658,890 Unit Dalam Edaran (UDE) 835,418, ,618, ,832,925 NAB seunit (RM) * Jumlah Pulangan Dana (%) (a) Pertumbuhan Modal (%) (b) 1.96 (7.60) (14.96) Pulangan Pendapatan (%) (c) Jumlah Pulangan Dana (%) 9.50 (4.30) (10.15) Agihan Kasar seunit (Sen) Agihan Bersih seunit (Sen) NAB sebelum Pengagihan (RM) NAB selepas Pengagihan (RM) Tarikh Pengagihan 31 Oktober 31 Oktober 30 Oktober Nisbah Perbelanjaan (d) Pengurusan (NPP) (%) Nisbah Pusing Ganti (e) Portfolio (Kali) * Harga dan NAB seunit adalah selepas pengagihan pendapatan 21

22 Nota:- a) Pulangan ke atas Dana = Harga seunit (pada akhir tahun kewangan) - 1 Harga seunit (pada awal tahun kewangan) b) Pertumbuhan Modal = Jumlah Pulangan Dana - Pulangan Pendapatan c) Pulangan Pendapatan = {Pengagihan Pendapatan per Unit / NAB per unit pada awal tahun kewangan} x 100 d) Nisbah Perbelanjaan = Pengurusan e) Nisbah Pusing Ganti = Portfolio Ia dikira dengan mengambil jumlah perbelanjaan pengurusan sepertimana yang dinyatakan sebagai peratusan tahunan daripada jumlah purata NAB Dana Ia dikira dengan mengambil purata jumlah perolehan dan pelupusan pelaburan dalam Dana bagi tempoh tahunan dibahagi dengan purata NAB Dana yang dikira pada asas harian 1.7 Pecahan Pegangan Unit Setakat 31 Oktober 2017 Saiz Pegangan Unit Bilangan Pemegang Unit BIMB i Dividend Fund Jumlah Pegangan Unit Bilangan % Unit % 5,000 dan ke bawah ,702, ,001 hingga 10, ,557, ,001 hingga 50, ,788, ,001 hingga 500, ,524, ,001 dan ke atas * ,845, Unit yang dipegang oleh Pemegang Unit Unit yang dipegang oleh Pengurus 1, ,418, Jumlah Keseluruhan Dana 1, ,418, *Akaun penama juga termasuk dibawah kategori ini. 22

23 1.8 Polisi Rebat dan Komisyen Bukan Tunai Sebarang rebat broker saham yang diterima oleh Pengurus akan dimasukkan ke akaun Dana. Apa-apa komisyen bukan tunai yang diterima daripada broker dalam bentuk perkhidmatan penyelidikan dan nasihat yang membantu dalam proses membuat keputusan yang berkaitan dengan pelaburan Dana boleh disimpan oleh Pengurus. Pengurus menerima komisen bukan tunai daripada broker dalam bentuk perkhidmatan penyelidikan dan khidmat nasihat bagi tahun dalam kajian. Untuk dan bagi pihak Pengurus BIMB INVESTMENT MANAGEMENT BERHAD Tarikh: 21 Disember 2017 Nota: Laporan ini telah diterjemahkan daripada laporan asal (dalam Bahasa Inggeris). Jika terdapat perbezaan, sila rujuk kepada laporan Bahasa Inggeris. 23

24 2.0 Trustee s Report CIMB ISLAMIC TRUSTEE BERHAD ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2017 To the unitholders of BIMB i DIVIDEND FUND We, CIMB Islamic Trustee Berhad being the Trustee of BIMB i Dividend Fund ( the Fund ) are of the opinion that BIMB Investment Management Berhad ( the Manager ), acting in the capacity as Manager of the Fund, has fulfilled its duties in the following manner for the financial year ended 31 October The Fund has been managed in accordance with the limitations imposed on the investment powers of the Manager under the Deed, the Securities Commission Malaysia s Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007 (as amended from time to time) and other applicable laws; 2. Valuation and pricing for the Fund has been carried out in accordance with the relevant regulatory requirements; 3. Creation and cancellation of units have been carried out in accordance with the relevant regulatory requirements; and 4. The distribution of returns by the Fund is relevant and reflect the investment objective of the Fund. For and on behalf of CIMB ISLAMIC TRUSTEE BERHAD (Company No M) LEE KOOI YOKE Chief Operating Officer Kuala Lumpur, Malaysia Date: 21 December

25 3.0 Shariah Committee s Report ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2017 To the Unitholders of BIMB i Dividend Fund ب س م ٱهلل ٱلر ح م ن ٱلر ح يم We have acted as the Shariah Committee of BIMB i Dividend Fund. Our responsibilities are to ensure that the procedures and processes employed by BIMB Investment Management Berhad and that the provisions of the Deed dated 23 June 2010 and any supplemental deed issued thereafter are in accordance with Shariah principles. In our opinion, BIMB Investment Management Berhad has managed BIMB i Dividend Fund in accordance with Shariah principles and complied with applicable guidelines, rulings or decisions issued by the Securities Commission pertaining to Shariah matters for the financial year ended 31 October In addition, we also confirm that the investment portfolio of BIMB i Dividend Fund comprises securities which have been classified as Shariah-compliant by the Shariah Advisory Council (SAC) of the Securities Commission, as the case may be and that all deposits and money market instruments placed by the Funds are Shariah-compliant. والله ا علم For and on behalf of the Shariah Committee.. USTAZ DR. AHMAD SHAHBARI@SOBRI SALAMON (Chairman).. USTAZ DR. YUSOF RAMLI (Committee Member).. USTAZAH DR. ASMAK AB. RAHMAN (Committee Member) Date: 21 December

26 4.0 Directors Declaration Report ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2017 To the Unitholders of BIMB i Dividend Fund We, Dr. Mohd Hatta Bin Dagap and Najmuddin Bin Mohd Lutfi, being two of the directors of the Manager, BIMB Investment Management Berhad, for BIMB i Dividend Fund, do hereby state that in our opinion, the accompanying Statement of Financial Position, Statement of Profit or Loss and other Comprehensive Income, Statement of Changes in Net Asset Value and Statement of Cash Flows are drawn up so as to give true and fair view of the Statement of Financial Position of the Fund as at 31 October 2017 and Statement of Profit or Loss and other Comprehensive Income, Statement of Changes in Net Asset Value and Statement of Cash Flows for the year ended on that date. For and on behalf on the Board of Directors, DR. MOHD HATTA BIN DAGAP (Non Executive Independent Director) NAJMUDDIN BIN MOHD LUTFI (Chief Executive Officer) Date: 21 December

27 5.0 Independent Auditors Report Independent Auditors Report to the Unitholders of BIMB i Dividend Fund (Established in Malaysia) Report on the Audit of the Financial Statements Opinion We have audited the financial statements of BIMB i Dividend Fund ( the Fund ), which comprise the statement of financial position as at 31 October 2017, and the statement of profit or loss and other comprehensive income, statement of changes in net asset value and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 31 to 58. In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Fund as at 31 October 2017, and of its financial performance and its cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and Securities Commission s Guidelines on Unit Trust Funds in Malaysia. 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 Fund 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. 27

28 Information Other than the Financial Statements and Auditors Report Thereon The Manager of the Fund is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements of the Fund and our auditors report thereon. Our opinion on the financial statements of the Fund does not cover the annual report and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements of the Fund, our responsibility is to read the annual report and, in doing so, consider whether annual report is materially inconsistent with the financial statements of the Fund or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of the annual report, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Manager and Trustee for the Financial Statements The Manager of the Fund is responsible for the preparation of financial statements of the Fund that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and Securities Commission s Guidelines on Unit Trust Funds in Malaysia. The Manager is also responsible for such internal control as the Manager determine is necessary to enable the preparation of financial statements of the Fund that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Fund, the Manager is responsible for assessing the ability of the Fund 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 Fund or to cease operations, or have no realistic alternative but to do so. The Trustee is responsible for ensuring that the Manager maintains proper accounting and other records as necessary to enable true and fair presentations of these financial statements. 28

29 Auditors Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements of the Fund 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. As part of an audit conducted 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 risk of material misstatement of the financial statements of the Fund, 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 Fund 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 ability of the Fund 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 Fund 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 Fund to cease to continue as a going concern. 29

30 Auditors Responsibilities for the Audit of the Financial Statements (continued) Evaluate the overall presentation, structure and content of the financial statements of the Fund, including the disclosures, and whether the financial statements of the Fund represent the underlying transactions and events in a manner that gives a true and fair view. 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. Other matter This report is made solely to the unitholders of the Fund, as a body, in accordance with Securities Commission s Guidelines on Unit Trust Funds in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report. KPMG Desa Megat PLT (LLP LCA & AF 0759) Chartered Accountants Adrian Lee Lye Wang Approval Number: 2679/11/2019(J) Chartered Accountant Petaling Jaya, Selangor Date: 21 December

31 6.0 Financial Statements (Audited) 6.1 Statement of Financial Position as at 31 October 2017 Note RM RM Assets Quoted securities 4 169,395, ,592,975 Amount due from stockbroker 9,096,720 5,892,351 Amount due from Manager 1,144,615 - Other receivables 136, ,954 Current tax assets - 13,367 Cash and cash equivalents 5 6,446,506 3,452,203 Total assets 186,220, ,186,850 Liabilities Amount due to stockbroker 11,483,363 - Amount due to Manager 48,786 2,526,123 Other payables 270, ,847 Distribution payables 418, ,175 Total liabilities 12,221,435 3,034,145 Net asset value 173,998, ,152,705 Unitholders fund Unitholders capital 6 228,263, ,659,900 Accumulated losses (54,264,258) (57,507,195) Net asset value attributable to unitholders 173,998, ,152,705 Number of units in circulation 6 835,418, ,618,385 Net asset value per unit - Ex distribution (sen) The notes on pages 35 to 58 are an integral part of these financial statements. 31

32 6.2 Statement of Profit or Loss and Other Comprehensive Income for the financial year ended 31 October 2017 Note RM RM Income Gain on sale of quoted shares 9,688,154 4,045,604 Gross dividends from shares quoted in Malaysia 5,123,095 5,323,214 Income from short term investments 146, ,588 Hibah from Al-Wadiah account 1,997 2,362 Net unrealised gain/(loss) from financial instruments at fair value through profit or loss 3,242,807 (14,962,726) Gross income/(loss) 18,202,083 (5,401,958) Expenses Manager s fee 7 2,589,933 2,854,323 Trustee s fee 8 103, ,173 Audit fee 13,000 11,000 Tax agent s fee 3,000 3,000 Administrative expenses 241, ,240 2,950,574 3,234,736 Net income/(loss) before taxation 15,251,509 (8,636,694) Taxation Net income/(loss) after taxation 15,251,509 (8,636,694) Other comprehensive income for the year - - Total comprehensive income/(loss) for the year 15,251,509 (8,636,694) Total comprehensive income/(loss) for the year consist of: Realised amount 12,008,702 6,326,032 Unrealised amount 3,242,807 (14,962,726) 15,251,509 (8,636,694) The notes on pages 35 to 58 are an integral part of these financial statements. 32

33 6.3 Statement of Changes in Net Asset Value for the financial year ended 31 October 2017 Unitholders Accumulated capital losses Total Note RM RM RM As at 1 November ,202,257 (42,543,367) 218,658,890 Creation of units via cash 58,179,976-58,179,976 Reinvestment of distributions 6,105,959-6,105,959 Cancellation of units (84,828,292) - (84,828,292) Distributions 12 - (6,327,134) (6,327,134) Total attributable to unitholders (20,542,357) (6,327,134) (26,869,491) Total comprehensive loss for the year - (8,636,694) (8,636,694) As at 31 October 2016/ 1 November ,659,900 (57,507,195) 183,152,705 Creation of units via cash 25,468,429-25,468,429 Reinvestment of distributions 11,590,082-11,590,082 Cancellation of units (49,455,167) - (49,455,167) Distributions 12 - (12,008,572) (12,008,572) Total attributable to unitholders (12,396,656) (12,008,572) (24,405,228) Total comprehensive income for the year - 15,251,509 15,251,509 As at 31 October ,263,244 (54,264,258) 173,998,986 The notes on pages 35 to 58 are an integral part of these financial statements. 33

34 6.4 Statement of Cash Flows for the financial year ended 31 October RM RM Cash flows from operating activities Proceed from sale of quoted investments 206,200, ,337,044 Purchase of quoted investments (177,793,506) (179,647,123) Dividend received 5,222,956 5,552,334 Income from short term investments 145, ,402 Hibah from Al-Wadiah account 1,997 2,362 Management fee paid (2,603,640) (2,883,713) Trustee fee paid (104,145) (115,348) Audit fee paid (11,000) (11,000) Tax agent fee paid (6,000) (3,000) Payment for administrative expenses (241,840) (257,679) Cash generated from operations 30,810,803 23,163,279 Tax Refund 13,367 - Net cash generated operating activities 30,824,170 23,163,279 Cash flows from financing activities Cash receipt for creation of units 24,323,813 58,221,302 Cash payment for cancellation of units (51,932,504) (82,722,849) Payment of distributions (221,176) (119,119) Net cash used in financing activities (27,829,867) (24,620,666) Net increase/(decrease) in cash and cash equivalents 2,994,303 (1,457,387) Cash and cash equivalents at 1 November 3,452,203 4,909,590 Cash and cash equivalents at 31 October 6,446,506 3,452,203 Cash and cash equivalents comprise: Short term placements 5,946,553 2,736,494 Cash at bank 499, ,709 6,446,506 3,452,203 The notes on pages 35 to 58 are an integral part of these financial statements. 34

35 Notes to the financial statements 1. Information on the Fund BIMB i Dividend (hereinafter referred to as the Fund ) was constituted pursuant to the execution of a Deed dated 23 June 2010 between the Manager - BIMB Investment Management Berhad, the Trustee - HSBC (Malaysia) Trustee Berhad and the registered unitholders of the Fund. Effective 1 November 2013, the Trustees has changed from HSBC (Malaysia) Trustee Berhad to CIMB Islamic Trustees Berhad. A Supplemental Deed was executed on 23 September 2013 to reflect the changes. The principal activity of the Fund is to invest in authorised investments as defined in the Deed, which include investments in stocks and shares of companies quoted on Bursa Malaysia, and short term placements. The Manager, BIMB Investment Management Berhad, a company incorporated in Malaysia, is a subsidiary of Bank Islam Malaysia Berhad. The financial statements were approved by the Board of Directors of the Manager on 21 December Basis of preparation (a) Statement of compliance The financial statements of the Fund have been prepared in accordance with Malaysian Financial Reporting Standards ( MFRS ), International Financial Reporting Standards ( IFRS ), the Deed and Securities Commission s Guidelines on Unit Trust Funds ( Guidelines ) in Malaysia. The following are accounting standards, amendments and interpretations that have been issued by the Malaysian Accounting Standards Board ( MASB ) but have not been adopted by the Fund: MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2017 Amendments to MFRS 12, Disclosure of Interests in Other Entities (Annual Improvements to MFRS Standards Cycle) Amendments to MFRS 107, Statement of Cash Flows Disclosure Initiative Amendments to MFRS 112, Income Taxes Recognition of Deferred Tax Assets for Unrealised Losses 35

36 2. Basis of preparation (continued) (a) Statement of compliance (continued) MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2018 MFRS 9, Financial Instruments (2014) MFRS 15, Revenue from Contracts with Customers Clarifications to MFRS 15, Revenue from Contracts with Customers IC Interpretation 22, Foreign Currency Transactions and Advance Consideration Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements to MFRS Standards Cycle) Amendments to MFRS 2, Share-based Payment Classification and Measurement of Share-based Payment Transactions Amendments to MFRS 4, Insurance Contracts Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts Amendments to MFRS 128, Investments in Associates and Joint Ventures (Annual Improvements to MFRS Standards Cycle) Amendments to MFRS 140, Investment Property Transfers of Investment Property MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2019 MFRS 16, Leases IC Interpretation 23, Uncertainty over Income Tax Treatments Amendments to MFRS 128, Long-term Interests in Associates and Joint Ventures Amendments to MFRS 9, Prepayment Features with Negative Compensation MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2021 MFRS 17, Insurance Contracts MFRSs, Interpretations and amendments effective for a date yet to be confirmed Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The Fund plans to apply the abovementioned accounting standards, amendments and interpretations, where applicable: 36

37 2. Basis of preparation (continued) (a) Statement of compliance (continued) from the annual period beginning on 1 November 2017 for those amendments that are effective for annual periods beginning on or after 1 January 2017; from the annual period beginning on 1 November 2018 for those accounting standards, amendments and interpretations that are effective for annual periods beginning on or after 1 January 2018; from the annual period beginning on 1 November 2019 for the accounting standard that is effective for annual periods beginning on or after 1 January 2019; from the annual period beginning on 1 November 2021 for the accounting standard that is effective for annual periods beginning on or after 1 January The initial application of the accounting standards, amendments or interpretations are not expected to have any material financial impact to the current year and prior year financial statements of the Fund, except as mentioned below: MFRS 15, Revenue from Contracts with Customers MFRS 15 replaces the guidance in MFRS 111, Construction Contracts, MFRS 118, Revenue, IC Interpretation 13, Customer Loyalty Programmes, IC Interpretation 15, Agreements for Construction of Real Estate, IC Interpretation 18, Transfers of Assets from Customers and IC Interpretation 131, Revenue - Barter Transactions Involving Advertising Services. MFRS 9, Financial Instruments MFRS 9 replaces the guidance in MFRS 139, Financial Instruments: Recognition and Measurement on the classification and measurements of financial assets and financial liabilities, and on hedge accounting. MFRS 16, Leases MFRS 16 replaces the guidance in MFRS 117, Leases, IC Interpretation 4, Determining whether an Arrangement contains a Lease, IC Interpretation 115, Operating Leases Incentives and IC Interpretation 127, Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The Fund is currently assessing the financial impact that may arise from the adoption of MFRS 15, MFRS 9 and MFRS