CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2017

Transcription

1 FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2017

2 CONTENTS PAGE(S) INVESTORS' LETTER 1 MANAGER'S REPORT 2-11 Fund Objective and Policy Performance Data Market Review Fund Performance Portfolio Structure Market Outlook Investment Strategy Unit Holdings Statistics Soft Commissions and Rebates STATEMENT BY MANAGER 12 TRUSTEE S REPORT 13 INDEPENDENT AUDITORS REPORT STATEMENT OF COMPREHENSIVE INCOME 18 STATEMENT OF FINANCIAL POSITION STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS 21 STATEMENT OF CASH FLOWS 22 NOTES TO THE FINANCIAL STATEMENTS DIRECTORY 47 LIST OF CWA (an Agency force of CIMB-Principal) OFFICES 48-52

3 INVESTORS' LETTER Dear Valued Investors, Thank you for your continued support and for the confidence that you have placed in us. We are pleased to share that CIMB-Principal Asset Management Berhad ( CIMB-Principal ) Malaysia concluded the first half of 2017 with RM48 billion in Asset Under Management ( AUM ) and CIMB- Principal s Group AUM has increased by 14% to RM63 billion, for 1-year period ending 30 June Our AUM for Private Retirement Schemes ( PRS ) business has increased by 25% year-on-year ( y-o-y ) to RM388 million as at 30 June We continue to achieve prestigious recognitions from The Edge Thomson Reuters Lipper Fund Awards: The Edge Thomson Reuters Lipper Malaysia Fund Awards 2017 Best Equity Global, 3 years & 5 years : CIMB-Principal Global Titans Fund Best Equity Asia Pacific Ex-Japan, 5 years : CIMB-Principal Asian Equity Fund Best Equity Asia Pacific Ex-Japan - Malaysia Islamic, 5 years : CIMB Islamic Asia Pacific Equity Fund Thomson Reuters Lipper Fund Award Global Islamic 2017 Best Equity Asia Pacific Ex-Japan (Islamic), Best Fund over 5 years : CIMB Islamic Asia Pacific Equity Fund These awards reflect our consistent fund performance, in tandem with our commitment to provide the best customer experience to you. CIMB-Principal was also awarded Fund House of the Year in Malaysia by AsianInvestor for the Asset Management Awards 2017, its second consecutive win and The Employees' Provident Fund ( EPF ) External Portfolio Managers Awards 2017 for the Best Global Bond Portfolio Manager. These industry recognitions reflect our success in scaling up our investment capabilities while building a solid track record and earning the trust of our clients over time. Thank you. Yours faithfully, for CIMB-Principal Asset Management Berhad Munirah Khairuddin Chief Executive Officer/Executive Director 1

4 MANAGER S REPORT FUND OBJECTIVE AND POLICY What is the investment objective of the Fund? The Fund aims to provide income* and potential capital growth to investors through investments in one collective investment scheme, which invests in equities or equity related securities worldwide. Note: * All distributions (if any) will be automatically reinvested into additional units in the Class at the Net Asset Value ( NAV ) per unit of the Class on the distribution date (the number of units is rounded using the normal rounding policy to two decimal places), unless written instructions to the contrary are communicated by you to the Manager. Has the Fund achieved its objective? For the financial year under review, the Fund has achieved its objective as stated under the Fund investment policy. What are the Fund investment policy and principal investment strategy? In order to achieve its objective, the Fund will invest at least 95% of its NAV in the Schroder International Selection Fund Global Dividend Maximiser (the Target Fund ); a Société d'investissement à Capital Variable ( SICAV ) domiciled in Luxembourg and established on the 13 July The Fund will invest in Class A of the Target Fund, which is a share class denominated in US Dollar ( ) with income distribution. The Fund will also maintain up to a maximum of 5% of its NAV in liquid assets. Information on the Target Fund Investment manager: Schroder Investment Management Limited Management company: Schroder Investment Management (Luxembourg) S.A. Regulatory authority: Commission de Surveillance du Secteur Financier (Luxembourg Financial Sector Supervisory Authority) Base Currency Fund category/type Wholesale Fund (Feeder Fund)/Income and capital growth How long should you invest for? Recommended medium term to long term Indication of short-term risk (low, moderate, high) High When was the Fund launched? Class MYR 11 May 2015 Class 11 May 2015 Class AUD 30 November 2015 Class SGD 30 November

5 FUND OBJECTIVE AND POLICY (CONTINUED) What was the size of the Fund as at 30 November 2017? 9.08 million (23.11 million units) CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND What is the Fund s benchmark? The Fund is benchmark unconstrained as the Target Fund is benchmark unconstrained, i.e. it will be actively managed without reference to any specific benchmark. What is the Fund distribution policy? Quarterly, depending on the level of income that the Class and/or Fund generates and at the discretion of the Manager. Class MYR Any distribution payments for Class MYR will be made in MYR to the Unit holder s MYR currency bank account in CIMB-Principal s records (at the cost and expense of the Unit holders). All distributions (if any) will be automatically reinvested into additional units in the Class at the NAV per unit of the Class on the distribution date (the number of units is rounded using the normal rounding policy to two decimal places), unless written instructions to the contrary are communicated by you to the Manager. Class Any distribution payments for Class will be made in to the Unit holder s foreign currency bank account in CIMB-Principal s records (at the cost and expense of the Unit holders). All distributions (if any) will be automatically reinvested into additional units in the Class at the NAV per unit of the Class on the distribution date (the number of units is rounded using the normal rounding policy to two decimal places), unless written instructions to the contrary are communicated by you to the Manager. Class AUD Any distribution payments for Class AUD will be made in AUD to the Unit holder s AUD currency bank account in CIMB-Principal s records (at the cost and expense of the Unit holders). All distributions (if any) will be automatically reinvested into additional units in the Class at the NAV per unit of the Class on the distribution date (the number of units is rounded using the normal rounding policy to two decimal places), unless written instructions to the contrary are communicated by you to the Manager. Class SGD Any distribution payments for Class SGD will be made in SGD to the Unit holder s SGD currency bank account in CIMB-Principal s records (at the cost and expense of the Unit holders). All distributions (if any) will be automatically reinvested into additional units in the Class at the NAV per unit of the Class on the distribution date (the number of units is rounded using the normal rounding policy to two decimal places), unless written instructions to the contrary are communicated by you to the Manager. What was the net income distribution for the financial year ended 30 November 2017? There was no income distribution made for the financial year ended 30 November

6 PERFORMANCE DATA Details of portfolio composition of the Fund for the last two financial years are as follows: Collective investment scheme Cash and other net assets Performance details of the Fund for the last two financial years are as follows: NAV ( Million) - Class MYR Class Class AUD Class SGD Units in circulation (Million) - Class MYR Class Class AUD Class SGD NAV per unit () - Class MYR Class Class AUD Class SGD to (date of launch) to Highest NAV per unit () - Class MYR Class Class AUD Class SGD Lowest NAV per unit () - Class MYR Class Class AUD Class SGD

7 PERFORMANCE DATA (CONTINUED) to (date of launch) to Total return (%) - Class MYR (4.46) - Class (2.09) - Class AUD Class SGD Capital growth (%) - Class MYR (10.57) - Class (8.72) - Class AUD Class SGD Income distribution (%) - Class MYR Class Class AUD Class SGD Management Expense Ratio ( MER ) (%) ^ Portfolio Turnover Ratio ( PTR ) (times) # ^ The Fund s MER reduced from 0.70% to 0.48% due to decrease expenses during the financial year under review. # The Fund s PTR reduced from 1.04 times to 0.90 times. As a feeder fund, the turnover reflects investments and withdrawals in the Target Funds. Turnover reduced because there were lesser trading activities in the financial year under review (date of to launch) to Gross/Net distribution per unit (cent) Distribution on 30 September Class MYR Class Distribution on 31 December Class MYR Class Distribution on 7 April Class MYR Class Class AUD Class SGD Distribution on 1 July Class MYR Class Class AUD Class SGD

8 PERFORMANCE DATA (CONTINUED) Since inception to % % Annual total return - Class MYR (4.46) - Class (2.09) (Launch date: 11 May 2015) Since inception to % % - Class AUD Class SGD (Launch date: 30 November 2015) Past performance is not necessarily indicative of future performance and that unit prices and investment returns may go down, as well as up. All performance figures for the financial year have been extracted from Lipper. MARKET REVIEW (1 DECEMBER 2016 TO 30 NOVEMBER 2017) Global equities delivered robust gains for the financial year ended 30 November 2017 amid an upswing in global economic data. Emerging Market ( EM ) equities were particularly strong, high yield corporate bonds performed well, while Government bonds saw more mixed performance. The MSCI World Index (the Index ) rose by 24.37% in terms. December 2016 saw a continuation of the Trumpononics trades i.e. higher United States ( US ) yields on hopes of higher fiscal spending and a return to inflation, rotation into equities from bonds and into value from growth within equities. Eurozone equities moved higher, supported by financials while resources stocks performed well after Organisation of the Petroleum Exporting Countries ( OPEC ) agreed to cut oil production. Japanese stocks were strong, drawing support from the currency as the Japanese Yen ( JPY ) weakened. EM equities underperformed developed market equities, posting a negative return owing to uncertainty over US trade and foreign policy, as well as the prospect of tighter liquidity. Global equities delivered robust gains in the first quarter of 2017 amid an upswing in global economic data. The Index rose by 6.54%. EM equities were particularly strong while bond markets saw more mixed performance. US equities advanced to fresh all-time highs, supported by positive economic data and President Trump s plans to cut taxes and regulations. The US Federal Reserve (the Fed ) raised rates by a further 0.25%. Eurozone equities delivered robust gains amid upbeat economic releases and receding political worries following the win for the centre-right in the Dutch elections. The United Kingdom ( UK ) equities gained, supported by accelerated mergers and acquisitions activity and solid corporate results. Article 50 was triggered at the end of the period, signalling the formal start of the process to leave the European Union ( EU ). Japanese stocks saw positive but muted returns with the JPY gradually appreciating over the first quarter of EM registered a robust return. An upturn in global growth and a lack of follow-through on protectionist trade policy from the Trump administration supported risk appetite. Global equity markets advanced in the second quarter of 2017 with the Index returning by 4.2% (in ). A strong corporate earnings season and generally positive economic data supported gains, while political risk eased in Europe. US equities gained despite some mixed economic data and amid political uncertainty over the ability of the US administration to push through its fiscally expansive policies. Eurozone equities gained due to reduced political risk, positive economic data and improved corporate earnings. Gains were capped by worries the Central Bank could start to tighten policy. UK equities made positive returns amid robust corporate earnings although it was a volatile quarter amid uncertainty over the political backdrop and the future path of monetary policy. 6

9 MARKET REVIEW (1 DECEMBER 2016 TO 30 NOVEMBER 2017) (CONTINUED) Japan registered positive returns amid an encouraging corporate earnings season and an upbeat assessment from the Bank of Japan ( BOJ ) on the health of the economy. EM equities benefited from the supportive global backdrop, outperforming developed markets. A notable exception was Russia amid a sharp decline in Brent crude oil prices. Global equities posted a quarter of solid gains in the third quarter of 2017 with the Index returning by 4.98%. Economic growth stayed in something of a Goldilocks zone overall, with stable expansion and benign inflation backed by positive earnings releases. The Standard and Poor s ( S&P ) 500 rose over the quarter amid some supportive macroeconomic data, a robust quarterly reporting season and further weakness in the. Eurozone equities advanced against a backdrop of positive economic data. The possibility that the European Central Bank ( ECB ) could soon reduce its stimulus measures continued to be a focus for the market. The UK s Financial Times Stock Exchange ( FTSE ) All-Share Index also rose, led by the resources sectors as both industrial metal and crude oil prices recovered. Japanese equities also posted gains amid improving economic data. Politics took the headlines as Japan Prime Minister Abe called an election to be held in October Emerging markets outperformed. Brazil was the strongest index market amid some reform progress, coupled with a reduced prospect of a return for the leftist Workers Party in the 2018 elections. Global equities made further progress from October 2017 to November of The Index rose by 4.18% during the period. EM posted a strong return with ongoing strength in global growth proving supportive. US equities were supported by positive economic data and growing expectations for US tax reforms would improve corporate profitability. Eurozone equities gained in October 2017 but retreated in the next month. In October 2017, the economic backdrop of Eurozone remained encouraging and the Fed announced that Quantitative Easing ( QE ) would be extended to September In November 2017, negative sentiments dragged the market down due to profittaking and political uncertainty as talks over the formation of a new coalition government in Germany collapsed. In Japan, the Tokyo Price Index advanced as investors reacted positively to Prime Minister Abe s general election victory late in the month of October 2017 and a solid corporate earnings season with the majority of companies again exceeding expectations in the month of November FUND PERFORMANCE 1 year to Since inception to Class MYR Class Class AUD Class SGD Class MYR Class Class AUD Class SGD % % % % % % % % Income Capital Total Return Average Total Return The Fund gained in all classes. Class MYR returned by 17.45%, Class rose by 17.44%, Class AUD added by 19.25% and Class SGD rose by 18.30%. The Fund does not have a benchmark for comparison. 7

10 FUND PERFORMANCE (CONTINUED) Class MYR 15.00% 10.00% 5.00% 0.00% May % Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep % % % Class 20.00% 15.00% 10.00% 5.00% 0.00% May % Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep % % % Class AUD 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Nov % Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov % 8

11 FUND PERFORMANCE (CONTINUED) Class SGD 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Nov % Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov % Changes in NAV CLASS MYR Changes % NAV ( Million) (73.55) NAV/Unit () CLASS Changes % NAV ( Million) (55.97) NAV/Unit () CLASS AUD Changes % NAV ( Million) (52.76) NAV/Unit () CLASS SGD Changes % NAV ( Million) NAV/Unit () The Fund recorded outflows from unit redemptions during the financial year for all the four classes - Class MYR, Class, Class AUD and Class SGD. Class MYR lost the most as shown by its NAV falling by 73.55%, followed by Class (55.97%), Class AUD (52.76%) and Class SGD (nil). However, the NAV per unit for Class MYR gained by17.56%, Class made 17.42%, Class AUD rose by 17.46% and Class SGD increased by 17.44%. 9

12 FUND PERFORMANCE (CONTINUED) Changes in NAV (Continued) For the financial year under review, the Fund for the Class was ranked number 2 out of 5 Funds under the Equity Global Income Non Islamic category in the Lipper table. Performance data represents the combined income and capital return as a result of holding units in the Fund for the specified length of time, based on NAV to NAV price. The performance data assumes that all earnings from the Fund are reinvested and are net of management and trustee fees. Past performance is not reflective of future performance and income distributions are not guaranteed. Unit prices and income distributions, if any, may fall and rise. All performance figures for the financial year have been extracted from Lipper. PORTFOLIO STRUCTURE Asset allocation (% of NAV) Collective investment scheme Cash and other net assets TOTAL The Fund was fully invested during the financial year under review. A minimal level of liquid assets was maintained primarily for liquidity purposes. MARKET OUTLOOK* 2017 was characterised by a combination of steady growth and low inflation - a Goldilocks environment in which activity was neither too hot nor too cold to cause a significant acceleration in inflation. These look set to change in In 2018, we expect inflation to accelerate alongside growth and monetary policy to turn tighter. We expect the risks are skewed towards a reflationary rather than a deflationary environment given our view on the increased likelihood of fiscal support and a potential global trade boom. * This market outlook does not constitute an offer, invitation, commitment, advice or recommendation to make a purchase of any investment. The information given in this article represents the views of CIMB-Principal or based on data obtained from sources believed to be reliable by CIMB-Principal. Whilst every care has been taken in preparing this, CIMB-Principal makes no guarantee, representation or warranty and is under no circumstances liable for any loss or damage caused by reliance on, any opinion, advice or statement made in this market outlook. INVESTMENT STRATEGY The Fund will continue to remain fully invested in the Target Fund with minimal cash kept for liquidity purposes. Our asset allocation decision will continue to be subject to market conditions. UNIT HOLDINGS STATISTICS Breakdown of unit holdings by size as at 30 November 2017 are as follows: CLASS MYR Size of unit holdings (units) No. of unit holders No. of units held (million) 10 % of units held 5,000 and below ,001 to 10, ,001 to 50, ,001 to 500, ,001 and above Total

13 UNIT HOLDINGS STATISTICS (CONTINUED) CLASS Size of unit holdings (units) CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND No. of unit holders No. of units held (million) % of units held 5,000 and below ,001 to 10, ,001 to 50, ,001 to 500, ,001 and above Total CLASS AUD Size of unit holdings (units) No. of unit holders No. of units held (million) % of units held 5,000 and below ,001 to 10, ,001 to 50, ,001 to 500, ,001 and above Total CLASS SGD Size of unit holdings (units) No. of unit holders No. of units held (million) % of units held 5,000 and below ,001 to 10, ,001 to 50, ,001 to 500, ,001 and above Total SOFT COMMISSIONS AND REBATES CIMB-Principal Asset Management Berhad (the Manager ) and the Trustee (including their officers) will not retain any form of rebate or soft commission from, or otherwise share in any commission with any broker in consideration for directing dealings in the investments of the Funds unless the soft commission received is retained in the form of goods and services such as financial wire services and stock quotations system incidental to investment management of the Funds. All dealings with brokers are executed on best available terms. During the financial year under review, the Manager and the Trustee did not receive any rebates from the brokers or dealers but have retained soft commission in the form of goods and services such as financial wire services and stock quotations system incidental to investment management of the Funds. 11

14 STATEMENT BY MANAGER TO THE UNIT HOLDERS OF CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND We, being the Directors of CIMB-Principal Asset Management Berhad (the Manager ), do hereby state that, in the opinion of the Manager, the accompanying audited financial statements set out on pages 18 to 46 are drawn up in accordance with the provisions of the Deeds and give a true and fair view of the financial position of the Fund as at 30 November 2017 and of its financial performance, changes in equity and cash flows for the financial year then ended in accordance with the provisions of the Malaysian Financial Reporting Standards ( MFRS ) and International Financial Reporting Standards ( IFRS ). For and on behalf of the Manager CIMB-PRINCIPAL ASSET MANAGEMENT BERHAD (Company No.: K) MUNIRAH KHAIRUDDIN Chief Executive Officer/Executive Director ALEJANDRO ECHEGORRI Executive Director Kuala Lumpur 30 January

15 TRUSTEE S REPORT TO THE UNIT HOLDERS OF CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND We have acted as Trustee of CIMB-Principal Global Dividend Maximiser Fund (the Fund ) for the financial year ended 30 November To the best of our knowledge, CIMB-Principal Asset Management Berhad (the Manager ), has operated and managed the Fund in accordance with the following:- a) limitations imposed on the investment powers of the Manager and the Trustee under the Deeds, the Securities Commission s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework, the Capital Markets and Services Act 2007 and other applicable laws; b) valuation/pricing is carried out in accordance with the Deeds and any regulatory requirements; and c) creation and cancellation of units are carried out in accordance with the Deeds and any regulatory requirements. For HSBC (Malaysia) Trustee Berhad Tan Bee Nie Head, Trustee Operations Kuala Lumpur 30 January

16 INDEPENDENT AUDITORS REPORT TO THE UNIT HOLDERS OF CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND REPORT ON THE FINANCIAL STATEMENTS Our opinion CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND In our opinion, the financial statements of CIMB-Principal Global Dividend Maximiser Fund (the Fund ) give a true and fair view of the financial position of the Fund as at 30 November 2017, and of its financial performance and its cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards. What we have audited We have audited the financial statements of the Fund, which comprise the statement of financial position as at 30 November 2017, and the statement of comprehensive income, statement of changes in net assets attributable to unit holders and statement of cash flows for the financial year ended 30 November 2017 and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 18 to 46. 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. 14

17 INDEPENDENT AUDITORS REPORT TO THE UNIT HOLDERS OF CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND (CONTINUED) REPORT ON THE FINANCIAL STATEMENTS (CONTINUED) 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 Manager s 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 other information 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 other information and, in doing so, consider whether the other information 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 this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Manager for the financial statements The Manager of the Fund is responsible for the preparation of the financial statements of the Fund that give a true and fair view in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards. The Manager is also responsible for such internal control as the Manager 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 Fund s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Manager either intend to liquidate the Fund or have no realistic alternative but to do so. The Manager is also responsible for overseeing the Fund s financial reporting process. 15

18 INDEPENDENT AUDITORS REPORT TO THE UNIT HOLDERS OF CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND (CONTINUED) REPORT ON THE FINANCIAL STATEMENTS (CONTINUED) 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 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: (a) (b) (c) (d) (e) Identify and assess the risks 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 Fund s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the financial statements of the 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. Evaluate the overall presentation, structure and content of the financial statements of the Fund, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 16

19 INDEPENDENT AUDITORS REPORT TO THE UNIT HOLDERS OF CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND (CONTINUED) REPORT ON THE FINANCIAL STATEMENTS (CONTINUED) Auditors responsibilities for the audit of the financial statements (continued) 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 MATTERS This report is made solely to the unit holders of the Fund and for no other purpose. We do not assume responsibility to any other person for the content of this report. PRICEWATERHOUSECOOPERS PLT LLP LCA & AF 1146 Chartered Accountants Kuala Lumpur 30 January

20 STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2017 CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND (date of launch) to to Note INVESTMENT INCOME Dividend income 1,053,119 4,516,632 Interest income 132 3,625 Net gain/(loss) on financial assets at fair value through profit or loss 9 1,336,907 (4,149,507) Net foreign exchange loss (27,913) (370,566) Other income 4 206, ,859 2,569, ,043 EXPENSES Management fee 5 248,435 1,181,900 Trustee s fee 6 5,521 26,264 Audit fee 1,952 3,290 Tax agent s fee 2,085 1,673 Other expenses 14,348 56, ,341 1,269,757 PROFIT/(LOSS) BEFORE FINANCE COST AND TAXATION 2,296,745 (294,714) Finance cost 7 - (2,818,206) PROFIT/(LOSS) BEFORE TAXATION 2,296,745 (3,112,920) Taxation INCREASE/(DECREASE) IN NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS 2,296,745 (3,112,920) Profit/(Loss) after taxation is made up as follows: Realised amount 142,751 (1,278,443) Unrealised amount 2,153,994 (1,834,477) 2,296,745 (3,112,920) The accompanying notes to the financial statements form an integral part of the audited financial statements. 18

21 STATEMENT OF FINANCIAL POSITION AS AT 30 NOVEMBER 2017 CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND Note ASSETS Cash and cash equivalents 10 89,050 65,919 Financial assets at fair value through profit or loss 9 8,983,600 30,758,693 Amount due from Manager - 58,484 Amount due from Manager of collective investment scheme - Management fee rebate 10,431 29,208 - Disposal of collective investment scheme 100,000 1,600,000 TOTAL ASSETS 9,183,081 32,512,304 LIABILITIES Amount due to Manager 86,662 3,189,361 Accrued management fee 9,063 33,023 Amount due to Trustee 301 1,112 Other payables and accruals 5,307 6,103 TOTAL LIABILITIES (EXCLUDING NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS) 101,333 3,229,599 NET ASSET VALUE OF THE FUND 9,081,748 29,282,705 NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS 9,081,748 29,282,705 The accompanying notes to the financial statements form an integral part of the audited financial statements. 19

22 STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 30 NOVEMBER 2017 (CONTINUED) CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND REPRESENTED BY: Note FAIR VALUE OF OUTSTANDING UNITS () - Class MYR 5,891,914 22,268,606 - Class 2,467,331 5,612,683 - Class AUD 596,828 1,268,132 - Class SGD 125, ,284 9,081,748 29,282,705 NUMBER OF UNITS IN CIRCULATION (UNITS) - Class MYR 11 19,995,891 88,850,129 - Class 11 2,300,576 6,145,356 - Class AUD ,451 1,675,658 - Class SGD , ,603 23,110,517 96,848,746 NET ASSET VALUE PER UNIT () - Class MYR Class Class AUD Class SGD NET ASSET VALUE PER UNIT IN RESPECTIVE CURRENCIES - Class MYR Class Class AUD Class SGD The accompanying notes to the financial statements form an integral part of the audited financial statements. 20

23 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER to (date of launch) to NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS AT THE BEGINNING OF THE FINANCIAL YEAR/PERIOD 29,282,705 - Movement due to units created and cancelled during the financial year/period: Creation of units from applications - Class MYR 753,385 54,553,221 - Class 359,479 12,939,830 - Class AUD 581,611 1,752,772 - Class SGD 92, ,741 Creation of units from distributions - Class MYR - 1,635,115 - Class - 405,303 - Class AUD - 41,550 - Class SGD - 2,985 Cancellation of units - Class MYR (18,705,661) (31,679,803) - Class (4,078,609) (6,738,636) - Class AUD (1,384,709) (637,046) - Class SGD (115,935) (61,407) 6,785,003 32,395,625 Increase/(decrease) in net assets attributable to unit holders during the financial year/period: 2,296,745 (3,112,920) NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS AT THE END OF THE FINANCIAL YEAR/PERIOD 9,081,748 29,282,705 The accompanying notes to the financial statements form an integral part of the audited financial statements. 21

24 STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2017 CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND to (date of launch) to Note CASH FLOWS FROM OPERATING ACTIVITIES Proceeds from disposal of collective investment scheme 25,435,000 24,840,000 Purchase of collective investment scheme (823,000) (61,348,200) Dividend income received 1,053,119 4,516,632 Interest income received - 3,625 Management fee paid (259,821) (1,131,841) Management fee rebate received 213, ,615 Trustee s fees paid (6,332) (25,152) Payments for other fees and expenses (19,181) (55,489) Net realised foreign exchange loss (32,901) (348,713) Other income Net cash generated from/(used in) operating activities 25,560,060 (32,620,523) CASH FLOWS FROM FINANCING ACTIVITIES Cash proceeds from units created 1,845,696 69,369,080 Payments for cancellation of units (27,391,820) (35,923,394) Distributions paid - (733,253) Net cash (used in)/generated from financing activities (25,546,124) 32,712,433 Net increase in cash and cash equivalents 13,936 91,910 Effects of foreign exchange differences 9,195 (25,991) Cash and cash equivalents at the beginning of the financial year/period 65,919 - Cash and cash equivalents at the end of the financial year/period 10 89,050 65,919 Cash and cash equivalents comprised of: Bank balances 89,050 65,919 Cash and cash equivalents at the end of the financial year/period 10 89,050 65,919 The accompanying notes to the financial statements form an integral part of the audited financial statements. 22

25 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER THE FUND, THE MANAGER AND ITS PRINCIPAL ACTIVITY CIMB-PRINCIPAL GLOBAL DIVIDEND MAXIMISER FUND CIMB-Principal Global Dividend Maximiser Fund (the Fund ) was constituted pursuant to the execution of a Deed dated 30 April 2015 and a First Supplemental Deed dated 24 November 2015 (collectively referred to as the Deeds ) between CIMB-Principal Asset Management Berhad (the Manager ) and HSBC (Malaysia) Trustee Berhad (the Trustee ). In order to achieve its objective, the Fund will invest at least 95% of its NAV in the Target Fund; a SICAV domiciled in Luxembourg and established on the 13 July The Fund will invest in Class A of the Target Fund, which is a share class denominated in with income distribution. The Fund will also maintain up to a maximum of 5% of its NAV in liquid assets. All investments are subjected to the Securities Commission Malaysia ( SC ) Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework, SC requirements, the Deeds, except where exemptions or variations have been approved by the SC, internal policies and procedures and the Fund s objective. The Manager, a company incorporated in Malaysia, is a subsidiary of CIMB Group Sdn Bhd and regards CIMB Group Holdings Berhad as its ultimate holding company. The Manager is also an associate of Principal International (Asia) Limited, which is a subsidiary of Principal Financial Group Inc. The principal activities of the Manager are the establishment and management of unit trust funds and fund management activities. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following accounting policies have been used consistently in dealing with items which are considered material in relation to the financial statements: (a) Basis of preparation The financial statements have been prepared in accordance with the provisions of the MFRS and IFRS. The financial statements have been prepared under the historical cost convention, as modified by financial assets at fair value through profit or loss. The preparation of financial statements in conformity with MFRS and IFRS requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported year/period. It also requires the Manager to exercise their judgment in the process of applying the Fund s accounting policies. Although these estimates and judgment are based on the Manager s best knowledge of current events and actions, actual results may differ. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 2(l). 23

26 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (a) Basis of preparation (continued) Standards, amendments to published standards and interpretations to existing standards that are effective: The Fund has applied the following amendments for the first time for the financial year beginning 1 December 2016: Amendments to MFRS 101 Presentation of Financial Statements - Disclosure Initiative provide clarifications on a number of issues, including: Materiality - an entity should not aggregate or disaggregate information in a manner that obscures useful information. Where items are material, sufficient information must be provided to explain the impact on the financial position or performance. Disaggregation and subtotals - line items specified in MFRS 101 may need to be disaggregated where this is relevant to an understanding of the entity s financial position or performance. There is also new guidance on the use of subtotals. Notes - confirmation that the notes do not need to be presented in a particular order. Other comprehensive income ( OCI ) arising from investments accounted for under the equity method - the share of OCI arising from equity-accounted investments is grouped based on whether the items will or will not subsequently be reclassified to profit or loss. Each group should then be presented as a single line item in the statement of other comprehensive income. According to the transitional provisions, the disclosures in MFRS 108 regarding the adoption of new standards/accounting policies are not required for these amendments. Annual Improvements to MFRSs Cycle The adoption of these amendments did not have any impact on the current financial year or any prior financial year and is not likely to affect future years. The standards, amendments to published standards and interpretations to existing standards that are applicable to the Fund but not yet effective and have not been early adopted are as follows: (i) Financial year beginning on/after 1 December 2017 Amendments to MFRS 107 Statement of Cash Flows - Disclosure Initiative (effective from 1 January 2017) introduce an additional disclosure on changes in liabilities arising from financing activities. The Fund will apply this standard when effective. This standard is not expected to have a significant impact on the Fund s financial statements. 24

27 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (a) Basis of preparation (continued) (ii) Financial year beginning on/after 1 December 2018 MFRS 9 Financial Instruments (effective from 1 December 2018) will replace MFRS 139 Financial Instruments: Recognition and Measurement. MFRS 9 retains but simplifies the mixed measurement model in MFRS 139 and establishes three primary measurement categories for financial assets: amortised cost, fair value through profit or loss and fair value through OCI. The basis of classification depends on the entity's business model and the contractual cash flow characteristics of the financial asset. Investments in equity instruments are always measured at fair value through profit or loss with an irrevocable option at inception to present changes in fair value in OCI (provided the instrument is not held for trading). A debt instrument is measured at amortised cost only if the entity is holding it to collect contractual cash flows and the cash flows represent principal and interest. For liabilities, the standard retains most of the MFRS 139 requirements. These include amortised cost accounting for most financial liabilities, with bifurcation of embedded derivatives. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity s own credit risk is recorded in OCI rather than the income statement, unless this creates an accounting mismatch. MFRS 9 introduces an expected credit loss model on impairment that replaces the incurred loss impairment model used in MFRS 139. The expected credit loss model is forward-looking and eliminates the need for a trigger event to have occurred before credit losses are recognised. The Fund will apply this standard when effective. This standard is not expected to have a significant impact on the Fund s financial statements. (b) Financial assets and financial liabilities Classification The Fund designates its investments in collective investment scheme as financial assets at fair value through profit or loss at inception. Financial assets are designated at fair value through profit or loss when they are managed and their performance evaluated on a fair value basis. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and have been included in current assets. The Fund s loans and receivables comprise cash and cash equivalents, amount due from Manager and amount due from Manager of collective investment scheme. Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability. 25

28 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (b) Financial assets and financial liabilities (continued) Classification (continued) The Fund classifies amount due to Manager, accrued management fee, amount due to Trustee, and other payables and accruals as other financial liabilities. Recognition and measurement Regular purchases and sales of financial assets are recognised on the trade-date, the date on which the Fund commits to purchase or sell the asset. Investments are initially recognised at fair value. Financial liabilities, within the scope of MFRS 139, are recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the financial instrument. Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the Fund has transferred substantially all risks and rewards of ownership. Financial liabilities are derecognised when it is extinguished, i.e. when the obligation specified in the contract is discharged or cancelled or expired. Unrealised gains or losses arising from changes in the fair value of the financial assets at fair value through profit or loss are presented in the statement of comprehensive income within net gain or loss on financial assets at fair value through profit or loss in the financial year/period which they arise. Collective investment scheme is valued based on the most recent published NAV per unit or share of such collective investment scheme or, if unavailable, the last published price of such unit or share (excluding any sales charge included in such selling price). Dividend income from financial assets at fair value through profit or loss is recognised in the statement of comprehensive income as part of gross dividend income when the Fund s right to receive payments is established. Loans and receivables and other financial liabilities are subsequently carried at amortised cost using the effective interest method. Impairment for assets carried at amortised costs For assets carried at amortised cost, the Fund assesses at the end of the reporting year/period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a loss event ) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. The amount of the loss is measured as the difference between the asset s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset s original effective interest rate. The asset s carrying amount is reduced and the amount of the loss is recognised in statement of comprehensive income. If loans and receivables has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. 26

29 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (b) Financial assets and financial liabilities (continued) Impairment for assets carried at amortised costs (continued) As a practical expedient, the Fund may measure impairment on the basis of an instrument s fair value using an observable market price. If, in a subsequent financial year, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor s credit rating), the reversal of the previously recognised impairment loss is recognised in statement of comprehensive income. When an asset is uncollectible, it is written off against the related allowance account. Such assets are written off after all the necessary procedures have been completed and the amount of the loss has been determined. (c) Income recognition Dividend income is recognised on the ex-dividend date when the right to receive payment is established. Interest income from deposits with licensed financial institutions is recognised on a time proportionate basis using effective interest rate method on an accrual basis. Interest income from current account are recognised using effective interest rate method. Realised gain or loss on disposal of collective investment scheme is accounted for as the difference between the net disposal proceeds and the carrying amount of collective investment scheme, determined on a weighted average cost basis. (d) Foreign currency Functional and presentation currency Items included in the financial statements of the Fund are measured using the currency of the primary economic environment in which the Fund operates (the functional currency ). The financial statements are presented in, which is the Fund s functional and presentation currency. Due to mixed factors in determining the functional currency of the Fund, the Manager has used its judgement to determine the functional currency that most faithfully represents the economic effects of the underlying transactions, events and conditions and have determined the functional currency to be in primarily due to the following factors: i) Significant portion of the NAV is invested in the form of Collective Investment Scheme ( CIS ) denominated in ; ii) Significant portion of the Fund s expenses are denominated in. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. 27