BIMB DANA AL-FALAH ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2017 LAPORAN TAHUNAN BAGI TAHUN BERAKHIR 31 OGOS 2017

Transcription

1 BIMB DANA AL-FALAH ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2017 LAPORAN TAHUNAN BAGI TAHUN BERAKHIR 31 OGOS 2017 MANAGER: BIMB INVESTMENT MANAGEMENT BERHAD ( X)

2 Table of Content No. Particulars Page 1.0 Manager s Report Fund Name/ Fund Type/ Fund Category/ Fund Investment Objective/ Fund Performance Benchmark/ Fund Distribution Policy Performance for the Financial Year Ended 31 August Economic and Market Review Market Outlook And Strategy Asset Allocation as at 31 August Other Performance Data for the Financial Year Ended 31 August Unit Holdings as at 31 August Policy on Rebate And Soft Commission Trustee s Report Shariah Committee s Report Directors Declaration Independent Auditors Report To The Unitholders of BIMB Dana Al- Falah Financial Statements (Audited) Corporate Directory 67 2

3 1.0 Manager s Report Dear Unit Holders, We are pleased to present the Manager s report of BIMB Dana Al-Falah for the financial year ended 31 August 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 Dana Al-Falah Growth Mixed Assets The principal investment objective of the Fund is to achieve long term capital appreciation of the units by investing in a diversified portfolio of equities, Sukuk and money market instruments. Accordingly, all investment income (if any) shall be reinvested for long term capital growth rather than distributed annually. Note: Any material change to the investment objective of the Fund would require unit holders approval. Fund Performance Benchmark Fund Distribution Policy Payment Mode for Income Distribution 70:30 ratio of the FBM Emas Shariah Index and 12-month Term Deposit-i Tawarruq (TDT-i) rate of Bank Islam Malaysia Berhad. Distribution of income 1 (if any) is incidental. Payment into Unit Holders bank account or reinvestment. 1 The distribution of income will automatically be reinvested. Hence, unit holders will receive additional units from the reinvestment of income distribution. 3

4 1.2 Performance for the financial year ended 31 August Performance review for BIMB Dana Al-Falah For the financial year under review, BIMB Dana Al-Falah (Fund) registered a return of 9.19% as compared to its benchmark s return of 2.84 %. From its commencement on 27 December 2001 to 31 August 2017, the Fund has registered a total return of 88.85% as compared to its benchmark s return of %. The selected performance benchmark for the Fund is based on 70:30 ratio of the FBM Emas Shariah Index and 12-month Term Deposit-i Tawarruq (TDT-i) rate of Bank Islam Malaysia Berhad. During its financial year ending 31 August 2017, the Fund was not able to acquire adequate trading gains to declare income distribution for the year as a result of unexpected volatility in the markets. Notwithstanding the above, the Manager has improved the Fund s performance via cutting exposure on non-performing stocks and reinvesting into companies and sectors that offer brighter prospects and potential growth, resulting in better performance of its Net Asset Value (NAV). As at 31 August 2017, the Fund has 77.9% exposure in equities, 14.3% in Islamic debt securities and 7.8% in short term investments, cash and cash equivalent. In terms of total NAV, the Fund size as at 31 August 2017 was at RM7.03 million, as compared to RM21.17 million as at 31 August For the financial year ended 31 August 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 respective financial year ended 31 August 2017 BIMB Dana Al-Falah Total Return (%) Average Total Return (%) Total Return (%) Benchmark Average Total Return (%) 1-Year Period Year Period Year Period Total return for the last 5 financial years Financial Years BIMB Dana Al-Falah (%) Total Return Benchmark (%) 31 August August August August August

6 Figure 1: Movement of the Fund versus the Benchmark Note Data Source : BIMB Investment Management Berhad Data Verified : Novagni Analytics & Advisory Sdn. Bhd. Benchmark :70:30 ratio of the FBM Emas Shariah Index and 12-month Term Deposit-i Tawarruq (TDT-i) rate of Bank Islam Malaysia Berhad. Notes: 1. Total Return of the Fund has been verified by Novagni Analytics & Advisory Sdn. Bhd. ( W) 2. Average Total return is derived by this formula: Total Return Number of Years under Review The calculation of average total returns is based on methods obtained from Lipper Asia Ltd. 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 Global The United States ( US ) Gross Domestic Product (GDP) grew at a rate of 2.6% in the second quarter of 2017 as compared to 1.2% growth in the first quarter of 2017 and 1.8% in the fourth quarter of The acceleration in GDP for the second quarter of 2017 was reflected in the upturns in federal government spending and private inventory investment despite of deceleration in exports. US headline inflation rate was up 1.9% in August 2017 compared to 1.5% in September 2016 due to rising lodging and gasoline cost as Hurricane Harvey shut down refineries in the Gulf coast. US unemployment rate fell to 4.4% in August 2017 from 5.0% in September 2016 on the back of rising income, consumer spending and economic growth. The Euro zone economy grew 0.6% in the second quarter of 2017 as compared to 0.5% in the first quarter 2017 and 0.6% in the fourth 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 measures implemented by the European Central Bank (ECB) to boost economic activity. Euro zone s annual inflation increased to 1.5% in August 2017 from 0.4% in September 2016, driven by better GDP growth in the Euro zone area. The unemployment rate in the Euro zone area fell to 9.1 % in July 2017 compared to 10.0% in September 2016 that remained at its lowest level since July The Chinese economy maintained a growth rate of 6.9% for the second quarter of 2017, maintaining comparable economic growth rate to the first quarter of 2017 as industrial output and private consumption improved, aided by a robust property market and recovery on the exports sector. (Source: Bloomberg and RHB Research Institute Sdn Bhd) Local The Malaysian economy grew faster at 5.8% in the second quarter of 2017 as compared to 5.6% in the first quarter 2017 and 4.5% in the fourth quarter The stronger GDP result for the period was due to improvements in private consumption and exports. 7

8 Malaysia s headline inflation in August 2017 increased to 3.7% from 1.5% in September 2016 due to higher cost of food & non-alcoholic beverages, transportation and housing, in tandem with higher oil prices and stronger GDP growth performance. Bank Negara Malaysia s Monetary Policy Committee (MPC) maintained the Overnight Policy Rate (OPR) at 3.00% during its July meeting to accommodate growth prospects for the country. Bank Negara s international reserve stood at USD billion as at 30 August 2017 as compared to USD 97.7 billion in September 2016 with improvement of capital inflow from foreign institutional investors into Malaysia. (Source: Bloomberg, Bank Negara Malaysia and RHB Research Institute Sdn Bhd) Market Review Equity FTSE Bursa Malaysia EMAS Shariah Index ( FBM Shariah ) commenced the year under review at 12, points before it declined to the lowest point of 11, on 30 November Subsequently, the FBM Shariah gained and peaked at the highest point of 13, on 16 May 2017 before ending the financial year at 12, points on 30 August For the year under review, the FBM Shariah gained points or 2.56% whereas the FBM KLCI gained points or 4.05% respectively. Among the key factors that contributed to the movement of the index are highlighted below: The US Federal Reserve declined to raise interest rates in September 2016 ahead of the US presidential election in November 2016 and reckoned that the US economy still have room to improve before it run the risk of overheating. Malaysia s Prime Minister unveiled the country s budget for 2017 on 21 October 2016 with the aim of capping the federal budget deficit at 3.0% versus 3.1% for 2016 with a GDP growth target of 4% to 5% for An average crude oil price of USD45 per barrel was benchmarked for Federal government s 2017 budget. 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 global investors rebalanced their portfolio to take advantage of the perceived stronger US growth and higher US bond yields. 8

9 In December 2016, the Federal Reserve raised the widely anticipated interest rate hike by 0.25% to 0.75% in light of the healthy expansion pace of the US economy while counteracting the President elect s goal to further stimulate a recovering economy. During the month, OPEC members agreed to cut oil production to reduce the global oil supply glut which caused oil prices to rise to a 16-month high above USD55 per barrel on 5 December In January 2017, Mr. Donald Trump s inauguration as the new president for United States of America had brought more policy uncertainty to the world with regards to US-Mexico cross border trade and potential new restriction on immigration and travelling into US. Nonetheless, the Dow Jones Index and global financial markets remained steady during the month. The global equities market welcomed another surprise 25bps rate hike from US Federal Reserve on the back of stronger than expected US economic data and a pro-growth stance by the new administration, bringing the Fed fund rates to 1.00% post rate hike on 15 March In April 2017, historic meeting between Donald Trump and China s leader Xi Jin Ping signaled more understanding between the two countries after a summit held in Florida, USA that could potentially defuse a trade war between the world s two largest economies. For the second time in 2017, the Federal Reserve raised interest rates in June, bringing the Fed fund rate to 1.25%. The Federal Reserve s second rate hike approval was in light of a higher GDP growth expectation of 2.2% and lower unemployment rate 4.3% for Notwithstanding the above, the move for the second hike came in amid expectations of a lower inflation rate compared to the central bank's target. In August 2017, the North Korea-US dispute escalated to new heights post of North Korea s missile testing exercise that had prompted President Trump to issue a retaliation warning with catastrophic effects. As such, the risk-averse sentiment had weighed down Asian markets. (Source: Bank Negara Malaysia, Bloomberg and RHB Research Institute Sdn. Bhd.) 9

10 Bond Market and Money Market a) Global In November 2016, US Treasury (UST) yields started a surge amid expectation of the newly-elected President Donald Trump to embark on further fiscal expansion. Before the election, the UST yields was already pressured upward as the Federal Reserve policymakers had signaled additional monetary tightening in the near term while economists had already projected an upbeat US growth in The surge in the 2-year US Treasury yield to above 1.3% at the end of June 2017 was well within expectation given the two US Federal Reserve rate hikes to date. However, US Treasuries strengthened in August 2017 on the back of safe haven demand from a series of geopolitical tensions arise when North Korea threatened to attack Guam and launched a missile testing exercise that flew over Japan. Notwithstanding the above, during the financial period under review, the UST yield increased as compared to the yield as at 31 August Figure 2: US Treasury Yields Source: US Treasury Department, 31 August

11 b) Local The sovereign bonds dominated the local bond market activities when Malaysian Government Securities (MGS) and Government Investment Issues (GII) recorded secondary market traded volume of RM835.5 billion for the financial year under review. Both the government bond yields and corporate bonds yields increased across the yield curve after the increase of the Fed Fund rate in June 2017 along with the market expectation that the US Federal Reserve will increase the Fed Fund Rate in the second half of Tenure/Date 3-Year Bonds Table 1: Sukuk/ Islamic Bond Yields 31 August 2017 (%) 31 August 2016 (%) Change * (bps) GII AAA Corporate Year Bonds GII AAA Corporate Year Bonds GII AAA Corporate Year Bonds GII AAA Corporate Source: Bond Pricing Agency Malaysia (BPAM), 31 August

12 Figure 3: Overnight Policy Rate (OPR) 1.4 Market Outlook and Strategy a) Equity Source: Bank Negara Malaysia (BNM), 31 August 2017 The equity market outlook for 2017 is expected to be another volatile year. External factors may likely influence the domestic market sentiment, which includes the OPEC and Non-OPEC commitment to stabilize the oil glut, President Trump s stance on North Korea s nuclear ambition and potential military strike, ramifications of US interest rate hikes and currency movement, political sentiment in the Euro zone, China s economic position and monetary policies employed by Central Banks. 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 of 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. 12

13 For Malaysia, the resilience of domestic consumption remains the support for growth. With higher spending on infrastructure projects underway, higher public sector wages adjustments, improve outlook for CPO production volume and a rebound in Government consumption and expenditure will help to improve corporate earnings and consumer spending for the year. Going forward, domestic demand will still remain as the key driver of growth but the equities market is likely to be influence by key market risk such as outbreak of war between North Korea and US and also more outflows from emerging market as the US Federal Reserve expedite its quantitative tightening measures in 2018 and b) Sukuk Market and Money Market Moving forward, it is viewed that MGS and corporate bonds will trend higher compared to their average levels in 2H2016, albeit at a moderate pace. This is despite of bond yields drifting lower in 1H2017 as it is expected that some upticks in yield movements on the prospect of a third Fed rate hike as the US economy continues to recover. Malaysia s improving economic fundamentals should provide some cushion against any sharp yield upticks. It is also expected that yield movements to become relatively less sharp going forward as investors come to terms with the Trump presidency and central banks become more transparent when expressing their desired policy direction. Bank Negara Malaysia s (BNM) Monetary Policy Committee (MPC) kept the overnight policy rate (OPR) unchanged at 3.00% for its sixth straight meeting on 13 Jul Looking forward, it is expected that BNM to maintain OPR at 3.00% for the rest of It is believed that the monetary policy would unlikely be tightened for the remaining part of this year, as inflation would likely normalize moving forward, as the economy has just picked up with Malaysian Ringgit seeing some stabilisation. On the other hand, stronger domestic economic growth in the country, coupled with more aggressive rate hikes and plans to reduce the Fed s balance sheet in the US, would likely limit the scope for BNM to cut interest rates. 13

14 1.5 Asset allocation as at 31 August BIMB Dana Al-Falah 2017 (%) 2016 (%) 2015 (%) Investment in Quoted Securities Construction Consumer Products Finance Industrial Products Infrastructure Project Companies Plantation Properties Technology Trading and Services INVESTMENT IN ISLAMIC DEBT SECURITIES: CASH AND SHORT TERM INVESTMENTS:

15 1.6 Other Performance Data for the Financial Year Ended 31 August BIMB Dana Al-Falah Unit Prices (RM) Highest 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 (RM) 7,033,452 21,165,930 24,879,924 Units in Circulation (UIC) 14,988,802 49,260,993 54,294,763 NAV per unit (RM) * Return of Fund (%) (a) Capital Growth (%) (b) Income Return (%) (c) Return of Fund (%) Gross Distribution per Unit (Sen) Net Distribution per Unit (Sen) NAV per Unit before Distribution (RM) NAV per Unit after Distribution (RM)* * - Date of Distribution - 30 August 2016 Management Expense Ratio (MER) (%) (d) Portfolio Turnover Ratio (PTR) (times) (e) * The price and net asset value per unit are ex-distribution. Note: a) Return of the Fund = NAV per unit (end of year) - 1 NAV per unit (beginning of year) b) Capital Growth = Total Return of the Fund Income Return c) Income Return = {Income Distribution per Unit / NAV per Unit on beginning of year} x 100 d) Management Expense Ratio = The management expense ratio is the total management expenses expressed as an annual percentage of the Fund s average Net Asset Value. 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. - 15

16 1.7 Unit Holdings as at 31 August 2017 BIMB Dana Al-Falah Size of Holdings 5,000 and below 5,001 to 10,000 10,001 to 50,000 50,001 to 500, ,001 and above * No. of Unit Holders No. of Units Held No. % Units % 1, ,149, , ,700, ,640, ,832, , ,988, Unit Held by Manager Grand Total for The Fund 1, ,988, * included under this category are nominee accounts 1.8 Policy on Rebate and Soft Commission Any stock broking rebates received by the Manager will be directed to the account of the Fund. Any soft commissions received from the brokers 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: 26 October

17 1.0 Laporan Pengurus Para Pemegang Unit yang Dihormati, Kami dengan sukacitanya membentangkan Laporan Pengurus BIMB Dana Al-Falah bagi tahun kewangan berakhir pada 31 Ogos 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 Dana Al-Falah Pertumbuhan Aset Campuran Objektif utama pelaburan Dana adalah untuk mencapai peningkatan modal pada harga unit dalam jangkamasa panjang dengan melabur dalam pelbagai portfolio ekuiti, Sukuk dan instrumen pasaran wang. Sehubungan dengan itu, semua pendapatan pelaburan (jika ada) akan dilaburkan semula untuk pertumbuhan modal jangkamasa panjang berbanding pengagihan setiap tahun. Nota: Sebarang perubahan ketara kepada objektif pelaburan Dana memerlukan kelulusan daripada pemegang unit. Penanda Aras Dana Polisi Agihan Dana Kaedah Pembayaran Agihan Pendapatan Nisbah 70:30 Indeks FBM Emas Shariah dan 12-bulan Deposit Berjangka Tawarruq-i (TDT) Bank Islam Malaysia Berhad. Pendapatan 1 (jika ada) adalah sampingan. Bayaran ke akaun bank pelabur atau pelaburan semula. 1 Pengagihan pendapatan akan dilaburkan semula secara automatik. Oleh itu, pemegang unit akan menerima Unit tambahan daripada pelaburan semula pengagihan pendapatan. 17

18 1.2 Pencapaian bagi tahun berakhir 31 Ogos Kajian Pencapaian bagi BIMB Dana Al-Falah Bagi tempoh kewangan dalam kajian, BIMB Dana Al-Falah (Dana) mencatatkan pulangan sebanyak 9.19% berbanding pulangan penanda aras sebanyak 2.84%. Sejak penubuhannya pada 27 Disember 2001 hingga 31 Ogos 2017, Dana telah mencatatkan pulangan berjumlah 88.85% berbanding pulangan penanda aras sebanyak %. Penanda aras prestasi terpilih Dana adalah berdasarkan nisbah 70:30 nisbah Indeks Syariah Emas FBM dan kadar 12-bulan Deposit Bertempoh-i Tawarruq (TDT-i) Bank Islam Malaysia Berhad. Dalam tahun kewangan berakhir pada 31 Ogos 2017, dana Dana tidak mendapat keuntungan urus niaga yang mencukupi untuk mengumumkan agihan pendapatan bagi tahun berkenaan disebabkan oleh kemeruapan pasaran yang di luar jangkaan. Meskipun begitu, pengurus telah meningkatkan prestasi dana dengan mengurangkan pendedahan terhadap saham-saham yang tidak berprestasi dan melaburnya semula dalam syarikat-syarikat dan sektor-sektor yang menawarkan prospek dan potensi lebih cerah, untuk memberikan prestasi pergerakan Nilai Aset Bersih (NAB) yang lebih baik. Sehingga pada 31 Ogos 2017, Dana mempunyai pendedahan sebanyak 77.9% dalam ekuiti, 14.3% dalam sekuriti hutang Islam dan 7.8% dalam pelaburan jangka pendek, tunai dan bersamaan tunai. Dari segi jumlah NAB, saiz Dana pada 31 Ogos 2017 adalah RM7.03 juta berbanding RM21.17 juta sehingga pada 31 Ogos Bagi tahun kewangan berakhir pada 31 Ogos 2017, tidak terdapat sebarang perubahan ketara dalam hal ehwal pengurusan Dana dan tidak berlaku sebarang keadaan yang boleh menjejaskan kepentingan para pemegang unit sehingga tarikh Laporan Pengurus disediakan. 18

19 1.2.2 Jumlah pulangan dan purata jumlah pulangan bagi setiap tahun berakhir 31 Ogos 2017 Jangkamasa 1-Tahun Jangkamasa 3-Tahun Jangkamasa 5-Tahun BIMB Dana Al-Falah Jumlah Pulangan (%) Purata Jumlah Pulangan (%) Jumlah Pulangan Penanda Aras (%) Purata Jumlah Pulangan (%) Jumlah pulangan tahunan bagi 5 tahun kewangan yang lalu Tahun Kewangan BIMB Dana Al- Falah (%) Jumlah Pulangan Penanda Aras (%) 31 Ogos Ogos Ogos Ogos Ogos

20 Rajah 1: Pergerakan Dana Berbanding Penanda Aras Nota: Sumber Data : BIMB Investment Management Berhad Data disahkan oleh : Novagni Analytics & Advisory Sdn. Bhd. Penanda Aras :Nisbah 70:30 FBM Emas Shariah Index dan 12 bulan Deposit Bertempoh-i Tawarruq (TDT-i) Bank Islam Malaysia Berhad Nota: 1. Jumlah Pulangan telah disahkan oleh Novagni Analytics & Advisory Sdn. Bhd. ( W) 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. 20

21 1.3 Ekonomi dan Kajian Pasaran Ekonomi Global Keluaran Dalam Negara Kasar (KDNK) Amerika Syarikat ('AS') berkembang sebanyak 2.6% pada suku kedua 2017 berbanding pertumbuhan 1.2% pada suku pertama 2017 dan 1.8% pada suku keempat KDNK yang berkembang pantas pada suku kedua 2017 dapat dilihat daripada peningkatan perbelanjaan kerajaan persekutuan dan pelaburan persediaan swasta walaupun diimbangi oleh penurunan dalam eksport. Kadar inflasi utama AS meningkat sebanyak 1.9% pada bulan Ogos 2017 berbanding 1.5% pada bulan September 2016 disebabkan berlakunya peningkatan kos dan harga gasolin apabila Taufan Harvey telah menyebabkan penutupan kilang penapis di pantai Teluk. Kadar pengangguran AS jatuh kepada 4.4% pada bulan Ogos 2017 daripada 5.0% pada bulan September 2016, disokong oleh peningkatan pendapatan, perbelanjaan pengguna dan pertumbuhan ekonomi. Ekonomi zon Euro berkembang sebanyak 0.6% pada suku kedua 2017 berbanding 0.5% pada suku pertama 2017 dan 0.6% pada suku keempat Pemulihan ekonomi zon Euro menyaksikan berlakunya peningkatan momentum manakala pengangguran telah menurun di sebalik kejatuhan kadar faedah yang teramat rendah diantara langkah-langkah lain yang dilaksanakan oleh Bank Pusat Eropah (ECB) untuk meningkatkan aktiviti ekonomi. Kadar inflasi tahunan zon Euro meningkat sebanyak 1.5% pada bulan Ogos 2017 daripada 0.4% pada bulan September 2016, didorong oleh prestasi pertumbuhan KDNK yang lebih baik di kawasan zon Euro. Kadar pengangguran di zon Euro jatuh kepada 9.1% pada bulan Julai 2017, merosot daripada 10.0% pada bulan September 2016 dan kekal berada pada paras terendah sejak bulan Julai China mengekalkan kadar pertumbuhan ekonominya sebanyak 6.9% pada suku kedua 2017, menyamai pertumbuhan pada suku pertama 2017 berikutan peningkatan dalam pengeluaran perindustrian dan penggunaan swasta dengan dibantu oleh pasaran hartanah yang kukuh dan pemulihan sektor eksport. (Sumbe: Bloomberg dan RHB Research Institute Sdn Bhd) 21

22 Dalam Negara Ekonomi Malaysia berkembang pantas sebanyak 5.8% pada suku kedua 2017 berbanding 5.6% pada suku pertama 2017 dan 4.5% pada suku keempat KDNK yang lebih kukuh dalam tempoh berkenaan adalah hasil peningkatan dalam penggunaan swasta dan eksport. Kadar utama inflasi di Malaysia pada bulan Ogos 2017 meningkat kepada 3.7% daripada 1.5% pada bulan September 2016, berikutan kos lebih tinggi bagi makanan dan minuman bukan alkohol, pengangkutan dan perumahan, sejajar dengan kenaikan lebih tinggi harga minyak mentah dan prestasi pertumbuhan KDNK yang lebih kukuh. Jawatankuasa Dasar Monetari Bank Negara Malaysia (MPC) mengekalkan Kadar Dasar Semalaman (OPR) pada paras 3.00% dalam mesyuaratnya yang diadakan pada bulan Julai bersesuaian dengan prospek pertumbuhan negara. Rizab antarabangsa Bank Negara berjumlah AS$100.5 bilion setakat pada 30 Ogos 2017 berbanding AS$97.7 bilion pada bulan September 2016 dengan terdapatnya peningkatan aliran masuk modal daripada pelabur-pelabur institusi asing ke Malaysia. (Sumber: Bloomberg, Bank Negara Malaysia dan RHB Research Institute Sdn Bhd) Kajian Pasaran Ekuiti Indeks Syariah EMAS FTSE Bursa Malaysia ("FBM Syariah") memasuki tahun dalam kajian pada paras 12, mata sebelum jatuh ke paras terendah 11, pada 30 November FBM Syariah, kemudiannya meningkat ke paras tertinggi kepada 13, pada 16 Mei 2017 sebelum mengakhiri tahun kewangan di paras 12, mata pada 30 Ogos Bagi tahun dalam kajian, FBM Syariah meningkat mata atau 2.56% manakala FBM KLCI mencatat kenaikan sebanyak mata atau 4.05%. Antara faktor utama yang menyumbang kepada pergerakan indeks ini adalah seperti berikut: Rizab Persekutuan AS enggan menaikkan kadar faedah pada September 2016 iaitu lebih awal daripada Pilihan Raya Presiden Amerika Syarikat yang diadakan pada November 2016 kerana menganggap ekonomi AS masih mempunyai ruang untuk meningkat sebelum berdepan dengan risiko mengalami pertumbuhan yang terlalu tinggi. 22

23 Perdana Menteri Malaysia membentangkan Bajet 2017 pada 21 Oktober 2016 yang bertujuan mengekang defisit bajet persekutuan pada paras 3.0% berbanding 3.1% pada tahun 2016 dengan menyasarkan pertumbuhan KDNK antara 4% hingga 5% bagi tahun Bajet 2017 itu disediakan berdasarkan harga purata minyak mentah pada paras AS$45 setong. 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. Pada Disember 2016, Rizab Persekutuan menaikkan kadar faedah sebanyak 0.25% kepada 0.75% seperti dijangkakan oleh banyak pihak berikutan berlakunya kadar perkembangan yang menggalakkan dalam ekonomi AS sambil mengimbangi matlamat Presiden yang baru dipilih untuk terus merangsang ekonomi negara itu. Pada bulan tersebut, negara-negara anggota OPEC bersetuju mengurangkan pengeluaran minyak mentah dalam usaha menangani lebihan komoditi berkenaan yang mengakibatkan harga minyak mentah global meningkat ke paras tertinggi dalam tempoh 16 bulan iaitu di atas paras AS$55 setong pada 5 Disember Pada Januari 2017, Donald Trump secara rasminya menjadi presiden baharu Amerika Syarikat namun beliau lebih banyak memperkenalkan dasar-dasar tidak jelas kepada dunia berkaitan perdagangan melangkaui sempadan AS-Mexico dan potensi halangan baharu imigresen dan perjalanan warga asing ke AS. Bagaimanapun, Indeks Dow Jones dan pasaran kewangan global kekal stabil pada bulan itu. Pasaran ekuiti global mengalu-alukan kenaikan mengejut kadar faedah AS sebanyak 25 mata asas oleh Rizab Persekutuan AS berikutan data ekonomi negara itu yang lebih kukuh berbanding jangkaan dan juga pendirian propertumbuhan oleh pentadbiran baharu, menyebabkan kadar dana Persekutuan meningkat kepada 1.00% selepas kenaikan kadar faedah pada 15 Mac Pada April 2017, pertemuan bersejarah antara Donald Trump dan pemimpin China, Xi Jin Ping telah meningkatkan persefahaman dalam hubungan antara kedua-dua negara itu selepas sidang kemuncak diadakan di Florida, Amerika Syarikat yang mungkin dapat menghapuskan potensi berlakunya perang perdagangan antara dua kuasa besar ekonomi dunia. 23

24 Bagi kenaikan kali kedua dalam tahun 2017, Rizab Persekutuan AS telah menaikkan kadar faedah pada bulan Jun dan menyaksikan kadar dana bank pusat itu berada pada paras 1.25%. Kenaikan kali kedua itu diluluskan berdasarkan jangkaan pertumbuhan KDNK lebih tinggi sebanyak 2.2% dan kadar pengangguran yang lebih rendah sebanyak 4.3% bagi tahun Bagaimanapun, kenaikan kali kedua itu dibuat di tengah-tengah jangkaan kadar inflasi yang lebih rendah berbanding sasaran bank pusat. Pada bulan Ogos 2017, pertikaian antara Korea Utara dengan AS semakin memuncak menjadi lebih buruk selepas Korea Utara melakukan ujian peluru berpandu sehingga mendorong Presiden Trump mengeluarkan amaran untuk bertindak balas dengan kesan yang berat. Akibatnya, sentimen para pelabur mahu mengelak berdepan risiko telah menjejaskan pasaran Asia. Pasaran Bon dan Pasaran Wang a) Global Pada bulan November 2016, hasil Perbendaharaan AS mula melonjak dengan jangkaan Presiden Donald Trump akan memulakan pengembangan fiskal. Sebelum pilihan raya, hasil bon perbendaharaan AS (UST) telah berdepan tekanan untuk mencatat peningkatan di mana penggubal dasar Rizab Persekutuan telah memberi isyarat akan pelaksanaan dasar kewangan yang lebih ketat dalam masa terdekat manakala pakar-pakar ekonomi telah membuat unjuran akan peningkatan pertumbuhan AS pada tahun Peningkatan dalam hasil 2 tahun UST untuk berada di atas paras 1.3% pada akhir bulan Jun 2017 adalah dalam jangkaan memandangkan setakat ini terdapat dua kenaikan kadar Rizab Persekutuan AS. Akan tetapi, bon perbendaharaan AS mengukuh pada bulan Ogos 2017 dengan wujudnya permintaan terhadap pelaburan lebih selamat berikutan terdapat satu siri ketegangan geopolitik di mana Korea Utara mengancam untuk menyerang Guam dan melancarkan peluru berpandu balistik melintasi ruang udara Jepun. Walau bagaimanapun, dalam tempoh kewangan yang dikaji, hasil UST meningkat berbanding hasil pada 31 Ogos

25 Rajah 2: Kadar Pulangan Perbendaharaan AS b) Dalam Negara Sumber : Jabatan Perbendaharaan AS, 31 Ogos 2016 Bon kedaulatan menguasai aktiviti pasaran bon tempatan apabila Sekuriti Kerajaan Malaysia (MGS) dan Terbitan Pelaburan Kerajaan (GII) mencatatkan jumlah dagangan pasaran sekunder sebanyak RM835.5 bilion bagi tahun kewangan dalam kajian. Hasil bon kerajaan dan bon korporat meningkat di keseluruhan keluk hasil selepas peningkatan kadar Dana Rizab Persekutuan AS pada bulan Jun 2017 dan pasaran menjangkakan Rizab Persekutuan AS akan meningkatkan Kadar Dana bank pusat itu pada separuh kedua tahun

26 Tempoh/ Tarikh Bon 3 Tahun Jadual 1: Kadar Pulangan Sukuk/ Bon Islam 31 Ogos 2017 (%) 31 Ogos 2016 (%) Perubahan * (bps) GII (74.40) Korporat AAA (36.00) Bon 5 Tahun GII (77.40) Korporat AAA (40.00) Bon 7 Tahun GII (68.60) Korporat AAA (57.00) Bon 10 Tahun GII (76.40) Korporat AAA (52.00) Sumber: Agensi Penetapan Harga Bon Malaysia (BPAM), 31 Ogos 2017 Rajah 3: Kadar Polisi Semalaman (OPR) Sumber: Bank Negara Malaysia (BNM), 31 Ogos

27 1.4 Tinjauan Pasaran dan Strategi a) Ekuiti Tinjauan pasaran ekuiti bagi tahun 2017 menunjukkan ia akan terus berada dalam keadaan tidak menentu. Faktor luaran berkemungkinan mempengaruhi sentimen pasaran domestik termasuklah komitmen negaranegara anggota Opec dan bukan Opec untuk menstabilkan pasaran minyak yang mengalami lebihan pengeluaran, pendirian Presiden Trump terhadap cita-cita nuklear Korea Utara dan opsyen tindakan ketenteraan, kesan kenaikan kadar faedah AS dan pergerakan mata wang, sentimen politik di zon Euro, pelarasan ekonomi China dan dasar kewangan yang diterima pakai oleh Bank-bank Pusat. Dengan potensi minat terhadap sektor terpilih untuk menyokong pasaran domestik, bursa tempatan harus berupaya menahan kejutan luaran memandangkan terdapat mudah tunai yang besar 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 didapati dalam kalangan negara maju yang utama. Bagi sebahagian besar Asia, pertumbuhannya disokong oleh pengembangan permintaan domestik yang berterusan. Dalam melangkah ke hadapan, ekonomi global dijangka terus berada pada landasan pemulihan yang sederhana. Di Malaysia, ketahanan penggunaan domestik kekal menjadi penyokong kepada pertumbuhannya. Dengan jumlah perbelanjaan lebih besar diperuntukkan kepada projek-projek infrastruktur yang sedang dijalankan, upah sektor awam yang lebih tinggi, tinjauan jumlah pengeluaran MSM (CPO) yang bertambah baik dan terdapat lonjakan dalam penggunaan dan perbelanjaan Kerajaan akan membantu menambah baik pendapatan korporat dan perbelanjaan pengguna pada tahun ini. Dalam melangkah ke hadapan, permintaan dalam negeri kekal menjadi pemacu utama pertumbuhan tetapi pasaran ekuiti mungkin akan dipengaruhi oleh risiko pasaran utama seperti meletusnya perang antara Korea Utara dan Amerika Syarikat dan juga pengaliran keluar dana daripada pasaran baru muncul memandangkan Rizab Persekutuan AS mempercepatkan langkah pengetatan kuantitatif pada tahun 2018 dan

28 b) Pasaran Sukuk dan Pasaran Wang (Untuk Fakhim, Falah & Munsif) Bergerak ke hadapan, MGS dan bon korporat dilihat akan berada dalam aliran menaik yang lebih tinggi berbanding paras puratanya pada setengah kedua tahun 2016 walaupun pada tahap sederhana. Keadaan ini berlaku di sebalik hasil bon berada di paras rendah dalam setengah pertama tahun 2017 kerana terdapat jangkaan berlaku beberapa kenaikan dalam pergerakan hasil berikutan prospek kenaikan kadar Rizab Persekutuan yang ketiga apabila AS terus mencatat pemulihan ekonomi. Asas-asas ekonomi Malaysia yang semakin baik akan menjadi penampan kepada sebarang kenaikan hasil yang mendadak. Pergerakan hasil dijangka meningkat secara tidak mendadak dalam masa yang mendatang apabila para pelabur lebih maklum tentang pendirian Trump dan bank-bank pusat menjadi lebih telus apabila menyatakan arah dasar yang dikehendaki. Jawatankuasa Dasar Monetari Bank Negara Malaysia (MPC) mengekalkan kadar dasar semalaman (OPR) pada paras 3.00% bagi mesyuarat yang ke-6 secara berturut-turut pada 13 Julai Memandang ke hadapan, BNM dijangka mengekalkan OPR pada kadar 3.00% untuk tempoh yang seterusnya dalam tahun Dasar monetari ini dipercayai tidak akan diketatkan lagi dalam bulan-bulan berikutnya pada tahun ini kerana kadar inflasi dijangka kembali normal selepas ini memandangkan pertumbuhan ekonomi baru sahaja meningkat dengan Ringgit Malaysia memperlihatkan kestabilannya. Sebaliknya, pertumbuhan ekonomi domestik yang lebih kukuh ditambah pula dengan kenaikan kadar faedah yang lebih agresif dan pelan untuk mengurangkan lembaran imbangan Rizab Persekutuan di AS, berkemungkinan akan mengehadkan skop bagi BNM mengurangkan kadar faedah dalam negara. 28

29 1.5 Peruntukan Aset Pada 31 Ogos BIMB Dana Al-Falah Pelaburan Sekuriti Tersiarharga: 2017 (%) 2016 (%) 2015 (%) Pembinaan Barangan pengguna Kewangan Barangan Industri Syarikat Projek Infrastruktur Perladangan Hartanah Teknologi Perdagangan dan Perkhidmatan PELABURAN DALAM SEKURITI HUTANG SECARA ISLAM: TUNAI DAN PELABURAN JANGKA PENDEK:

30 1.6 Lain-Lain Data Prestasi Bagi Tahun Berakhir 31 Ogos BIMB Dana Al-Falah Harga Unit (RM) NAB tertinggi seunit dalam setahun * NAB terendah seunit dalam setahun * Nilai asset Bersih (NAB) dan Unit Dalam Edaran (UDE) pada Akhir Tahun Jumlah NAB (RM) 7,033,452 21,165,930 24,879,924 Unit Dalam Edaran (UDE) 14,988,802 49,260,993 54,294,763 NAB seunit (RM) * Jumlah Pulangan Dana (%) (a) Pertumbuhan Modal (%) (b) Pulangan Pendapatan (%) (c) Jumlah Pulangan Dana (%) Agihan Kasar seunit (Sen) Agihan Bersih seunit (Sen) Nilai Aset Bersih sebelum Pengagihan (RM) Nilai Aset Bersih selepas Pengagihan (RM)* * - Tarikh Pengagihan - 30 Ogos Nisbah Perbelanjaan Pengurusan (d) (NPP) (%) Nisbah Pusing Ganti Portfolio (Kali) (e) * Harga NAB selepas pengagihan pendapatan. Nota:- a) Pulangan ke atas Dana = Harga seunit (pada akhir tahun) - 1 Harga seunit (pada awal tahun) b) Penambahan Modal = Pulangan Ke atas Dana Pulangan Pendapatan c) Pulangan Pendapatan = {Pengagihan Pendapatan Se Unit / NAB se unit pada awal tahun} 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 Nilai Aset Bersih Dana. = Ia dikira dengan mengambil purata jumlah perolehan dan pelupusan pelaburan dalam Dana bagi tempoh tahunan dibahagi dengan purata Nilai Aset Bersih Dana yang dikira pada asas harian

31 1.7 Pecahan Pegangan Unit pada 31 Ogos 2017 Saiz Dipegang Kurang daripada 5,000 5,001 hingga 10,000 10,001 hingga 50,000 50,001 hingga 500, ,001 dan ke atas * Bilangan Pemegang Unit BIMB Dana Al-Falah Bilangan Unit Pegangan Bilangan % Bilangan % 1, ,149, , ,700, ,640, ,832, , ,988, Unit yang dipegang oleh Pengurus Jumlah Keseluruhan Dana , ,988, *Akaun penama juga termasuk di bawah kategori ini 1.8 Polisi Rebat dan Komisyen Bukan Tunai Sebarang rebat broker saham yang diterima oleh Pengurus akan dimasukkan ke dalam akaun Dana. Mana-mana komisen ringan (bukan tunai) yang diterima daripada broker dalam bentuk perkhidmatan penyelidikan dan khidmat nasihat bertujuan membantu proses membuat keputusan 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. Bagi dan bagi pihak Pengurus BIMB INVESTMENT MANAGEMENT BERHAD Tarikh: 26 Oktober 2017 Nota: Laporan ini telah diterjemahkan daripada laporan asal (dalam Bahasa Inggeris). Jika terdapat perbezaan, sila rujuk kepada laporan Bahasa Inggeris 31

32 2.0 Trustee s Report AFFIN HWANG TRUSTEE BERHAD ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2017 To the Unit Holders of BIMB Dana Al-Falah We have acted as Trustee of BIMB Dana Al-Falah ( the Fund ) for the year ended 31 August To the best of our knowledge, BIMB Investment Management Berhad ( the Manager or the Management Company ) has managed the Funds in accordance with the following: 1. The limitations imposed on the investment powers of the Management Company and the Trustee under the Deeds, the Securities Commission s Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007 and other applicable laws; 2. The valuation or pricing of the Funds is carried out in accordance with the Deeds and any regulatory requirement; and 3. The creation and cancellation of units of the Funds are carried out in accordance with the Deeds and any regulatory requirement. For Affin Hwang Trustee Berhad.. Tan Ping Ying Authorised Signatory Wong Chiew Leng Authorised Signatory Date: 26 October

33 3.0 Shariah Committee s Report ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2017 To the Unit Holders of BIMB Dana Al-Falah ب س م ٱلل ٱلر ح م ن ٱلر ح ي م We have acted as the Shariah Committee of BIMB Dana Al-Falah. Our responsibilities are to ensure that the procedures and processes employed by BIMB Investment Management Berhad and that the provisions of the Deed dated 6 December 2001 are in accordance with Shariah principles. In our opinion, BIMB Investment Management Berhad has managed BIMB Dana Al- Falah in accordance with Shariah principles and complied with applicable guidelines, rulings or decisions issued by the Securities Commission pertaining to Shariah matters for the year ended 31 August In addition, we also confirm that the investment portfolio of BIMB Dana Al-Falah 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. ا علم والله 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: 26 October

34 4.0 Directors Declaration ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2017 To the Unit Holders of BIMB Dana Al-Falah We, Dato Ghazali Bin Awang and Najmuddin Bin Mohd Lutfi, being two of the directors of the Manager, BIMB Investment Management Berhad, for BIMB Dana Al- Falah, 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 August 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 of the Board of Directors, DATO GHAZALI BIN AWANG (Non Executive Independent Director) NAJMUDDIN BIN MOHD LUTFI (Chief Executive Officer) Date: 26 October

35 5.0 Independent Auditor s Report Independent Auditors Report to the Unitholders of BIMB Dana Al-Falah (Established in Malaysia) Report on the Financial Statements We have audited the financial statements of BIMB Dana Al-Falah ( the Fund ), which comprise the statement of financial position as at 31 August 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 39 to 66. In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Fund as at 31 August 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. 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. 35

36 Information Other than the Financial Statements and Auditors Report Thereon (continued) 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 statement. 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. 36

37 Auditors Responsibilities for the Audit of the Financial Statements (continued) 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. 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 represents the underlying transactions and events in a manner that gives a true and fair view. 37