BIMB i GROWTH ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 LAPORAN TAHUNAN BAGI TAHUN KEWANGAN BERAKHIR 30 JUN 2016

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1 BIMB i GROWTH ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 LAPORAN TAHUNAN BAGI TAHUN KEWANGAN BERAKHIR 30 JUN 2016 MANAGER: BIMB INVESTMENT MANAGEMENT BERHAD ( X)

2 Table of Content 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 30 June Economic and Market Review Market Outlook And Strategy Asset Allocation as at 30 June Other Performance Data for the Financial Year Ended 30 June Unit Holdings as at 30 June Policy on Rebate And Soft Commission Trustee s Report Shariah Committee s Report Directors Declaration Independent Auditors Report To The Unitholders of BIMB i Growth Financial Statements (Audited) Corporate Directory 59 2

3 1.0 Manager s Report Dear Unitholders, We are pleased to present the Manager s report of BIMB i Growth for the financial year ended 30 June Fund Name/ Fund Type/ Fund Category/ Fund Investment Objective/ Fund Performance Benchmark/ Fund Distribution Policy Fund Name Fund Type Fund Category BIMB i Growth Aggressive growth Equity To provide a medium and long term return through capital appreciation and income distribution. Fund Investment Objective Fund Performance Benchmark Fund Distribution Policy Note: The capital appreciation is the primary objective while income distribution is the secondary objective of the Fund. Any material change to the investment objective of the Fund would require Unitholders approval. The selected performance benchmark for this Fund is the FBM Emas Shariah Index comprising BURSA Malaysia Main Market stocks that have been designated as Shariahcompliant securities by the Shariah Advisory Council (SAC) of the Securities Commission. The rationale is to reflect the Fund s major proportion of investments in equity of up to 98% of its Net Asset Value (NAV) in Shariah-compliant securities. Information on the benchmark can be obtained from BURSA Malaysia website. As income distribution is the secondary objective of the Fund, distribution of income (if any) is incidental. 3

4 1.2 Performance for the financial year ended 30 June Performance review For the financial year under review, BIMB i Growth (the Fund) registered a return of % as compared to its Benchmark s return of -0.87%. During the first half of the financial year, the Fund had adopted a temporary defensive measure due to adverse market condition whereby cash had been raised between 40% to 50% of the Fund s NAV. Subsequently, towards the financial year end, the Fund was affected by the Brexit effect in which the Ringgit has appreciated against the US Dollar temporarily, affecting the Fund s holding on export oriented stocks. This event has dragged performance temporarily and resulted in a disparity between the Fund and the Benchmark s performance. Subsequently, the Fund was 93.7% invested in equities as at the end of the year under review, as compared to 96.9% invested as at 30 June The Fund s total Net Asset Value (NAV) as at 30 June 2016 was RM31,617,322 or sen per unit as compared to RM40,153,278 or sen per unit as at 30 June The selected performance benchmark for this Fund is the FBM EMAS Shariah Index comprising BURSA Malaysia Main Market stocks that have been designated as Shariah-compliant securities by the SAC. Our strategy is to meet the investment objective where the Fund will mainly focus on the equity investment comprising a diversified portfolio of blue chip, high growth and dividend paying companies that are listed on BURSA Malaysia. However, the Fund has not met its primary objective to achieve capital appreciation for the year under review. For the year ended 30 June 2016, 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 as at 30 June 2016 Total Return (%) BIMB i Growth Average Total Return (%) Total Return (%) Benchmark Average Total Return (%) 1-Year Period Year Period Year Period Annual total return as at the end of the last 5 financial years Financial Year BIMB i Growth (%) Total Return Benchmark (%) 30 June June June June June

6 Figure 1: Fund and Benchmark for the last 5 Financial Years Note: Data Source Data verified by Benchmark : BIMB Investment Management Berhad : Novagni Analytics & Advisory Sdn. Bhd. (formerly known as Perkasa Normandy Advisers Sdn. Bhd.) : FBM Emas Shariah Index Notes: 1. Total Return of the Fund has been verified by Novagni Analytics & Advisor Sdn. Bhd. (formerly known as Perkasa Normandy Managers Sdn. Bhd.) ( w) 2. Average Total return is derived by this formula: Total Return Number of Years under Review Past performance is not necessarily indicative of future performance and unit prices and investment returns may go down, as well as up. 6

7 1.3 Economic and Market Review Economy Global The United States ( US ) Gross Domestic Product (GDP) grew at a rate of 1.1% in the first quarter of 2016 as compared to 1.4% growth in the fourth quarter of 2015 and 2.0% in the third quarter of Economic growth in the first quarter was constrained by a strong dollar and sluggish global demand that had dampened exports. Productivity was also weakened by businesses' inventory overhang while lower oil prices induced higher spending cuts on inventory supply and equipments. US headline inflation rate gained 1.0% in June 2016 from 0.2% in July 2015 as higher cost of services for rent, transportation and medical care offsets declines in energy prices. Concurrently, US core inflation rate increased to 2.3% in June 2016 from 1.8% in July US unemployment rate fell to 4.9% in June 2016, from 5.3% in July 2015, as the US economic recovery facilitated robust hiring for the labor market. The Euro zone economy grew by 0.6% in the first quarter of 2016 as compared to 0.4% growth in the fourth quarter of 2015 and 0.3% in the third quarter of Growth in the Euro zone was driven by better-than-expected recovery in France and Spain that helped boost Euro zone s economic growth which was previously been heavily reliant on Germany. Euro zone s annual inflation declined to 0.1% in June 2016 from 0.2% in July 2015 due to lower cost of energy, food and services. The Euro zone unemployment rate fell to 10.1% in May 2016 from 10.8% in July 2015 due to continued improvement in the unemployment rate in Malta (4.1%), Germany (4.2%) and Austria (6.1%) The Chinese economic growth of 6.7% in the second quarter of 2016 was largely driven by stimulus as the government and the central bank facilitate to shore up domestic consumption and external demand.the GDP results are the lowest in 25 years as world s second-largest economy moves towards a more sustainable economic model based on domestic consumption instead of trade and investment. (Source: Reuters, Bloomberg and RHB Research Institute Sdn Bhd) 7

8 Local The Malaysian economy grew by 4.2% in the first quarter of 2016 as compared to 4.5% in the fourth quarter of 2015 and 4.7% in the third quarter of Underpinned by weaker growth in the manufacturing and service sector, the Malaysian economy was resilient backed by strong private consumption and investments given the backdrop of global economic slowdown and moderating global trade. Malaysia s headline inflation in June 2016 declined to 1.6% from 3.1% in July 2015 due to lower energy prices and waning GST effects. Bank Negara s international reserve stood at USD 97.2 billion as at 31 May 2016 from USD 96.7 billion in July 2015 as capital outflows reverse during the period. At these levels, the foreign exchange reserves are sufficient to finance 8.0 months of retained imports and cover 1.2 times the short term external debt of the nation. Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 3.25% at the Monetary Policy Committee (MPC) meeting 19 May (Source: Bank Negara Malaysia, Bloomberg and RHB Research Institute Sdn. Bhd.) Equity Market Review FTSE Bursa Malaysia EMAS Shariah Index (FBM Shariah) commenced the year under review at 12, before it declined to the lowest level of 10, points on 25 August Subsequently, the FBM Shariah peaked to the highest level of 12, on 30 December 2015 before it closed at 12, points on 30 June For the financial year under review, the FBM Shariah lost points or -0.87%. Among the key factors that contributed to the movement of the index are highlighted below: On 30 June 2015, Fitch affirmed Malaysia s sovereign credit rating at A- with an outlook upgraded to Stable on the back of improving fiscal position, financing flexibility and favorable GDP growth. In August, the Shanghai and Shenzhen stock exchange tumbled over concerns of China s economic hard landing that triggered a regional sell-off throughout Asia. This has subsequently led to a contagion effect in Europe and the U.S. Worries over China s weaker consumption have also eroded oil prices that plunged to a six-and-a-half year low of USD42.51 per barrel, adding concerns to the global oil supply glut. In August alone, the Ringgit had depreciated 9.7% from USD/MYR 3.82 to USD/MYR 4.19 in light of the unfolding events during the month. Speculation over the timing of the US interest rate hike remains uncertain in August and poses further market volatility risk in the near term as the Ringgit continues to devalue. Collectively, the August sell-off had erased 7% to 10% of global market capitalization. 8

9 The U.S. Federal Reserve declined to raise interest rates in September on the back of deteriorating global economic conditions given any possibility of monetary tightening may interrupt global economic growth. During the month, global markets rallied as investors price in a deferred interest rate hike by the U.S. Federal Reserve. Announcement of 2016 Budget in October had minimal effect on the Ringgit and the local market as the measures announced are within market s expectations. Sentiment dampened towards month end as Fitch raised concerns over Malaysia s ability to achieve its target fiscal deficit of 3.1% in The local bourse buoyed in November due to Brent Oil breaching USD 50 per barrel, coupled with the announcement of the proposed sale of Edra Global Energy power assets to China s state-owned firm, China General Nuclear Power Corp (CGN). On 16 December 2015, the Federal Reserve raised interest rate by 0.25 percent points, for the first time in seven years. US and Asian stock markets closed higher as uncertainty in the global markets are removed. The Federal Reserve s move was also greeted positively in Europe, with the major indices advancing by up to 3%. In January, global equities tumbled on fears of China s economic slowdown as the Chinese Caixin PMI had gone further into contraction. During the month, crude oil price was volatile after Saudi Arabia disengaged diplomatic ties with Iran. General sentiment on Bursa Malaysia was lifted in February as Qatar, Saudi Arabia, Russia and Venezuela announced their decision to freeze oil production output. WTi oil price recovered during the month from USD to USD During the month, Bank of Japan adopted negative interest rate for the first time ever to revive its ailing economy. In May, MSCI announced the reduction of Malaysia s index weightage within its index, prompting a sell down in the domestic market and further weakening the Ringgit to USD/MYR Following that, June was particularly a volatile month, as the outcome of UK s referendum to leave the EU materialised that shocked global financial markets.the GBP was battered as investors seek refuge towards gold and German bond. The Ringgit gained against the Dollar on the grounds of deferred US rate hike execution post of the referendum. (Source: Bank Negara Malaysia, Bloomberg and RHB Research Institute Sdn. Bhd.) 9

10 1.4 Market Outlook and Strategy The equity market outlook is expected to be volatile in Factors that may predominantly influence the global equity markets include the oil price movement, new era of US interest rate hikes, China s economic slowdown, the Yuan devaluation and global recession fears among others. However, the domestic market should be able to withstand external shocks as it is supported by ample domestic liquidity and strong buying support of local funds. Global economy continues to expand in moderation, albeit in a challenging environment. Growth across economies has been uneven, while the US recovery path is on track, the Euro zone, Japan and China s growth remains weak. In Asia, growth is being sustained by the continued expansion in domestic demand and exports. For Malaysia, while domestic demand has continued to support growth, corporate earnings may impose downside risks due to subdued consumer sentiment and fragile global macroeconomics. Going forward, domestic demand will remain the key driver of growth. While the moderating global growth and low oil prices will affect the macro development prospects, the Malaysian economy is still projected to grow between 4.0% to 5.0% for The strategy is to invest in companies with good earnings visibility, strong balance sheet, reasonable valuation and good growth prospects and high dividend yields. We have a long term approach to investment. We invest in stocks with the objective to outperform the benchmark. 10

11 1.5 Asset Allocation as at the end of the last 3 financial years BIMB i Growth Investment in Quoted Securities As at 30 June 2016 (%) As at 30 June 2015 (%) As at 30 June 2014 (%) Construction Consumer Products Finance Industrial Products Infrastructure Plantation Properties Technology Trading and Services Warrant CASH AND SHORT TERM INVESTMENTS:

12 1.6 Other Performance Data for the financial years ended 30 June BIMB i Growth Unit Prices (MYR) FYE 2016 FYE 2015 FYE 2014 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 (MYR) 31,617,322 40,153,278 48,168,322 Units in Circulation (UIC) 104,861, ,121, ,832,440 NAV per unit (MYR) Return of Fund (%) (a) Capital Growth (%) (b) Income Return (%) (c) Return of Fund (%) Management Expense Ratio (MER) (%) (d) Portfolio Turnover Ratio (PTR) (times) (e) Note: a) Total Return of the Fund = NAV per unit (as at Year End) - 1 NAV per unit (beginning of the Year) b) Capital Growth = Total Return of the Fund Income Return c) Income Return = {Income Distribution per Unit / NAV per beginning of the year} x 100 d) Management Expenses Ratio e) Portfolio Turnover Ratio = It is the total management expenses expressed as an annual percentage of the Fund s average Net Asset Value. = It represents the average of the total acquisitions and disposals of the investment in the Fund for the year over the average Net Asset Value of the Fund calculated on a daily basis. 12

13 1.7 Unit Holdings as at 30 June 2016 Size of Holdings Unitholders BIMB i Growth Units Held No. % Units % 5,000 and below ,144, ,001 to 10, , ,001 to 50, ,001, ,001 to 500, ,960, ,001 and above * ,858, Units Held by Holders 1, ,861, Unit Held by Manager Grand Total for The Fund * Included under this category are nominee accounts 1, ,861, 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: 29 August

14 1.0 Laporan Pengurus Para Pemegang Unit yang Dihormati, Kami dengan sukacitanya membentangkan Laporan Pengurus BIMB i Growth bagi tahun kewangan berakhir 30 Jun Nama Dana/ Jenis Dana/ Kategori Dana/ Objektif Pelaburan Dana/ Penanda Aras Prestasi Dana/ Dasar Agihan Dana Nama Dana Jenis Dana Kategori Dana BIMB i Growth Dana Pertumbuhan Agresif Ekuiti Menawarkan pulangan bagi tempoh jangkamasa sederhana dan panjang melalui peningkatan modal dan pengagihan pendapatan. Objektif Pelaburan Dana Penanda Aras Prestasi Dana Dasar Agihan Dana Nota: Peningkatan modal merupakan objektif utama Dana manakala pengagihan pendapatan merupakan objektif kedua Dana. Sebarang perubahan ketara dalam objektif pelaburan Dana memerlukan kelulusan daripada pemegang unit. Penanda aras terpilih prestasi Dana ialah Indeks FBM Emas Syariah yang terdiri daripada saham-saham tersenarai di Papan Utama BURSA Malaysia yang diklasifikasikan sebagai sekuriti patuh Syariah oleh Majlis Penasihat Syariah Suruhanjaya Sekuriti ( SAC ). Rasional pemilihannya disebabkan sebahagian besar pelaburan Dana dalam pasaran ekuiti iaitu sehingga 98% daripada Nilai Aset Bersih (NAB) terdiri daripada sekuriti patuh Syariah. Maklumat berkaitan penanda aras boleh diperoleh dari laman sesawang BURSA Malaysia. Oleh sebab, pengagihan pendapatan merupakan objektif kedua Dana, pengagihan pendapatan (jika ada) adalah sampingan. 14

15 1.2 Pencapaian bagi tahun kewangan berakhir pada 30 Jun Kajian Pencapaian Bagi tahun kewangan dalam kajian, BIMB i Growth (Dana) mencatatkan pulangan sebanyak % berbanding pulangan penanda aras sebanyak -0.87%. Bagi tempoh separuh pertama tahun kewangan, Dana telah mengambil langkah defensif sementara kerana keadaan pasaran yang menjejaskan di mana pegangan tunai telah dinaikkan antara 40% hingga 50% daripada NAB Dana. Hampir ke akhir tahun kewangan, Dana terkesan dengan peristiwa Brexit di mana nilai Ringgit telah bertambah berbanding Dolar AS untuk tempoh sementara, memberi kesan kepada pegangan Dana di dalam saham yang berlandaskan eksport. Peristiwa ini telah menjejaskan prestasi Dana buat seketika dan menyebabkan wujudnya jurang perbezaan antara Dana dan prestasi penanda aras. Dana kemudiannya dilaburkan 93.7% dalam ekuiti pada akhir tahun kewangan, berbanding dengan 96.9% dilaburkan pada 30 Jun Jumlah Nilai Aset Bersih (NAB) Dana pada 30 Jun 2016 adalah RM31,617,322 atau sen seunit berbanding RM40,153,278 atau sen seunit pada 30 Jun Penanda aras prestasi terpilih dana ini adalah "Indeks FBM EMAS Syariah" yang terdiri daripada saham-saham Papan Utama Bursa Malaysia yang telah ditetapkan sebagai sekuriti patuh Syariah oleh SAC. Strategi kami adalah untuk memenuhi objektif pelaburan di mana Dana akan memberi tumpuan kepada pelaburan ekuiti terdiri daripada pelbagai portfolio saham mewah, saham pertumbuhan tinggi dan saham dividen milik syarikat-syarikat senaraian awam di Bursa Malaysia. Walaubagaimanapun, Dana tidak memenuhi matlamat utamanya untuk mencapai peningkatan modal bagi tahun kewangan dalam kajian. Bagi tahun kewangan berakhir 30 Jun 2016, tiada sebarang perubahan ketara dalam hal ehwal pengurusan Dana dan tidak berlaku juga sebarang keadaan yang boleh menjejaskan kepentingan para pemegang unit sehingga tarikh Laporan Pengurus ini disediakan. 15

16 1.2.2 Jumlah pulangan dan purata jumlah pulangan pada 30 Jun 2016 Jangkamasa 1-Tahun Jangkamasa 3-Tahun Jangkamasa 5-Tahun Jumlah Pulangan (%) BIMB i Growth Purata Jumlah Pulangan (%) Jumlah Pulangan (%) Penanda Aras Purata Jumlah Pulangan (%) Jumlah pulangan tahunan bagi 5 tahun kewangan yang lalu Tahun Kewangan Jumlah Pulangan BIMB i Growth (%) Penanda Aras (%) 30 Jun Jun Jun Jun Jun

17 Rajah 1: Pulangan Dana dan Pulangan Penanda Aras bagi 5 Tahun yang Lalu Nota: Sumber Data : BIMB Investment Management Berhad Data disahkan oleh :Novagni Analytics & Advisor Sdn. Bhd. (dahulunya dikenali sebagai Perkasa Normandy Managers Sdn.Bhd) Penanda Aras : Indeks FBM Emas Syariah Nota: 1. Jumlah Pulangan telah disahkan oleh Novagni Analytics & Advisor Sdn. Bhd. (dahulunya dikenali sebagai Perkasa Normandy Managers 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. 17

18 1.3 Ekonomi dan Kajian Pasaran Ekonomi Dunia Keluaran Dalam Negara Kasar Amerika Syarikat (AS) berkembang pada kadar 1.1% pada suku pertama 2016 berbanding dengan pertumbuhan sebanyak 1.4% pada suku keempat tahun 2015 dan 2.0% pada suku ketiga Pertumbuhan ekonomi pada suku pertama telah dikekang oleh kekukuhan mata wang dolar dan permintaan global yang lembap sehingga menjejaskan eksport. Produktiviti juga merosot kerana inventori perniagaan yang tidak terjual manakala harga minyak mentah yang lebih rendah menggalakkan lagi pemotongan perbelanjaan yang lebih tinggi dalam pembekalan inventori dan peralatan. Kadar utama inflasi AS meningkat 1.0% pada bulan Jun 2016 berbanding 0.2% pada bulan Julai 2015 kerana kos yang lebih tinggi bagi perkhidmatan sewaan, pengangkutan dan penjagaan perubatan mengimbangi kejatuhan harga minyak mentah. Pada masa yang sama, kadar inflasi teras AS meningkat kepada 2.3% pada bulan Jun 2016 berbanding 1.8% pada bulan Julai Kadar pengangguran AS jatuh kepada 4.9% pada bulan Jun 2016, daripada 5.3% pada bulan Julai 2015, apabila pemulihan ekonomi AS telah membantu meningkatkan penawaran pekerjaan dalam pasaran buruh. Ekonomi zon Euro berkembang sebanyak 0.6% pada suku pertama 2016 berbanding dengan pertumbuhan 0.4% pada suku keempat tahun 2015 dan 0.3% pada suku ketiga Pertumbuhan dalam zon Euro didorong oleh pemulihan yang lebih baik berbanding jangkaan di Perancis dan Sepanyol yang telah membantu meningkatkan pertumbuhan ekonomi zon Euro yang sebelum ini banyak bergantung kepada Jerman. Kadar inflasi tahunan Zon Euro menurun kepada 0.1% pada bulan Jun 2016 berbanding 0.2% pada bulan Julai 2015 kerana kos bahanapi, makanan dan perkhidmatan. Kadar pengangguran zon Euro jatuh kepada 10.1% pada bulan Mei 2016 daripada 10.8% pada bulan Julai 2015 disebabkan oleh kejatuhan kadar penggangguran yang berterusan di Malta (4.1%), Jerman (4.2%) dan Austria (6.1%) 18

19 China mencatatkan kadar pertumbuhan sebanyak 6.7% pada suku kedua tahun 2016 sebahagian besarnya dilaksanakan oleh rangsangan yang dilaksanakan oleh kerajaan dan bank pusat untuk meningkatkan penggunaan domestik dan juga permintaan luar. Catatan KDNK itu merupakan yang terendah dalam tempoh 25 tahun apabila negara yang menjadi kuasa ekonomi kedua terbesar di dunia berusaha untuk mencapai model ekonomi yang lebih mampan berdasarkan penggunaan domestik dan bukan lagi berdasarkan perdagangan dan pelaburan. (Sumber: Reuters, Bloomberg dan RHB Research Institute Sdn Bhd) Dalam Negara Ekonomi Malaysia meningkat sebanyak 4.2% pada suku pertama 2016 berbanding 4.5% pada suku keempat tahun 2015 dan 4.7% pada suku ketiga tahun Disebabkan pertumbuhan lemah di dalam sektor perkilangan dan perkhidmatan, ekonomi Malaysia memperlihatkan ketahanannya disokong oleh penggunaan dan pelaburan swasta yang kukuh, di sebalik pertumbuhan sejagat yang perlahan dan perdagangan dunia yang berkembang pada kadar sederhana. Kadar inflasi utama Malaysia pada bulan Jun 2016 menurun kepada 1.6% daripada 3.1% pada bulan Julai 2015 disebabkan oleh kejatuhan harga minyak mentah dan kesan daripada GST yang berkurangan. Rizab antarabangsa Bank Negara berjumlah AS$97.2 bilion pada 31 Mei 2016 daripada AS$96.7 bilion pada bulan Julai 2015 apabila aliran keluar mengalir masuk dalam tempoh tersebut. Rizab pertukaran asing adalah memadai untuk membiayai import tertangguh sehingga 8.0 bulan dan mewakili 1.2 kali hutang jangka pendek luar negara. Bank Negara Malaysia telah mengekalkan Kadar Dasar Semalaman (OPR) pada 3.25 % ketika mesyuarat Jawatankuasa Dasar Monetari (MPC) yang diadakan pada 19 Mei (Sumber: Bank Negara Malaysia, Bloomberg dan RHB Research Institute Sdn. Bhd.) Kajian Pasaran Ekuiti Indeks FBM Emas Syariah (FBM Syariah) berada dalam tahun kewangan pada paras 12, sebelum jatuh ke paras terendahnya iaitu 10, mata pada 25 Ogos FBM Syariah kemudiannya mencapai paras tertinggi 12, pada 30 Disember 2015 sebelum ia ditutup pada 12, mata pada 30 Jun Bagi tahun kewangan dalam kajian, FBM Syariah menurun mata atau -0.87%. Antara faktor utama yang menyumbang kepada pergerakan indeks dinyatakan di bawah: Pada 30 Jun 2015, Fitch mengesahkan penarafan kredit kedaulatan Malaysia pada "A-" dengan tinjauan dinaikkan pada tahap "stabil" berikutan kedudukan fiskal yang semakin baik, pembiayaan yang fleksibel dan pertumbuhan KDNK yang menggalakkan. 19

20 Pada bulan Ogos, Bursa Saham Shanghai dan Shenzen jatuh teruk berikutan terdapat kerisauan berlakunya kejatuhan secara mendadak ekonomi China, sehingga membawa kepada penjualan secara besar-besaran di peringkat rantau Asia. Keadaan itu mengakibatkan kesan penularan di Eropah dan Amerika Syarikat. Kekhuatiran terhadap penggunaan yang lemah di China juga menjejaskan harga minyak mentah yang menjunam kepada paras terendah dalam tempoh enam setengah tahun iaitu $42.51 setong, meningkatkan lagi kebimbangan kepada berlakunya lebihan bekalan minyak mentah dunia. Pada bulan Ogos sahaja, Ringgit telah mengalami penyusutan sebanyak 9.7% daripada AS$/RM3.82 kepada AS$/RM4.19 disebabkan oleh peristiwaperistiwa yang berlaku pada bulan berkenaan. Setakat ini, bilakah berlakunya kenaikan kadar faedah AS masih tidak dapat dipastikan, sekali gus terus mengakibatkan wujud risiko untuk pasaran menjadi tidak menentu atau meruap dalam tempoh terdekat apabila nilai Ringgit terus dinilai semula. Secara kolektifnya, jualan besar-besaran yang berlaku pada bulan Ogos telah menjejaskan 7% hingga 10% modal pasaran global. Rizab Persekutuan AS enggan menaikkan kadar faedah pada bulan September dalam keadaan ekonomi global mengalami kemerosotan kerana bimbang sebarang usaha mengetatkan dasar kewangan mungkin boleh menjejaskan pertumbuhan dunia. Pada bulan berkenaan, pasaran global meningkat apabila para pelabur telah mengambil kira kenaikan kadar faedah yang tertunda oleh Rizab Persekutuan AS. Pembentangan Bajet 2016 pada bulan Oktober hanya memberikan kesan yang kecil ke atas nilai mata wang Ringgit dan pasaran tempatan kerana langkahlangkah yang diumum sudah dijangka oleh pasaran. Sentimen pasaran terjejas menjelang akhir bulan apabila Fitch menimbulkan kebimbangannya tentang keupayaan Malaysia untuk mencapai sasaran defisit fiskal sebanyak 3.1% pada tahun Bursa tempatan meningkat pada bulan November selepas harga minyak mentah mutu tinggi Brent melepasi paras AS$50 setong, berserta dengan pengumuman cadangan penjualan aset jana kuasa Edra Global Energy kepada firma milik negara China, China General Nuclear Power Corp (CGN). Pada 16 Disember, Rizab Persekutuan meningkatkan kadar faedah sebanyak 0.25 mata peratusan buat kali pertama dalam masa tujuh tahun. Bursa saham AS dan Asia ditutup lebih tinggi apabila keadaan tidak menentu dalam pasaran global sudah tiada lagi. Langkah Rizab Persekutuan itu turut disambut positif di Eropah, dengan indeks-indeks utama pasaran saham secara puratanya meningkat sehingga 3%. 20

21 Pada bulan Januari, pasaran ekuiti di seluruh dunia jatuh dengan adanya semula kebimbangan terhadap kelembapan ekonomi China apabila Indeks Caixin PMI China terus menguncup. Dalam bulan berkenaan, harga minyak mentah menjadi tidak stabil selepas Arab Saudi memutuskan hubungan diplomatik dengan Iran. Sentimen umum di Bursa Malaysia meningkat pada bulan Februari apabila Qatar, Arab Saudi, Rusia dan Venezuela membuat pengumuman untuk membekukan pengeluaran. Harga minyak WTI kembali pulih pada bulan tersebut daripada AS$26.05 kepada AS$ Pada bulan berkenaan, Bank of Japan menerima pakai kadar faedah yang negatif buat pertama kalinya untuk memulihkan ekonomi negara itu yang bermasalah. Pada Bulan Mei, MSCI mengumumkan penurunan wajaran Malaysia di dalam indeksnya, mengakibatkan penjualan secara mendadak dalam pasaran domestik dan juga melemahkan kadar Ringgit kepada AS$/RM4.15. Jun merupakan bulan di mana pasaran ekuiti tidak menentu, disebabkan oleh keputusan referendum UK untuk keluar dari kesatuan Eropah telah memberi impak kepada pasaran kewangan dunia. Nilai Pound Sterling pula menyusut setelah pelabur beralih arah kepada pembelian emas dan bon German. Nilai kadar Ringgit pula telah bertambah berbanding Dollar AS berdasarkan penangguhan kenaikan kadar faedah AS selepas keputusan referendum. (Sumber: Bank Negara Malaysia, Bloomberg dan RHB Research Institute Sdn. Bhd.) 1.4 Tinjauan Pasaran dan Strategi Tinjauan pasaran ekuiti dijangka tidak menentu dalam tahun Faktor-faktor utama yang mempengaruhi pasaran ekuiti dunia termasuklah pergerakan harga minyak mentah, era baharu kenaikan kadar faedah AS, pertumbuhan ekonomi China yang perlahan, penilaian semula mata wang Yuan dan kebimbangan berlakunya kemelesetan ekonomi dunia. Bagaimanapun, pasaran domestik seharusnya berupaya untuk mendepani kejutan-kejutan luar kerana ia disokong oleh mudah tunai domestik yang besar dan sokongan belian kukuh daripada dana-dana tempatan. Ekonomi dunia terus berkembang pada kadar sederhana meskipun dalam persekitaran yang mencabar. Pertumbuhan secara keseluruhannya, berlaku secara tidak sekata, ketika AS berada pada landasan pemulihan, pertumbuhan di zon Euro, Jepun dan China terus lemah. Di Asia, pertumbuhannya berkekalan dengan berlakunya perluasan berterusan dalam permintaan domestik dan eksport. 21

22 Di Malaysia, ketika permintaan domestik terus menyokong pertumbuhan, pendapatan korporat mungkin berdepan dengan risiko mengalami kejatuhan kerana sentimen pengguna yang lemah dan makroekonomi global yang rapuh. Melangkah ke hadapan, permintaan domestik akan kekal menjadi pemacu utama pertumbuhan. Biarpun pertumbuhan global yang sederhana dan harga minyak yang rendah akan menjejaskan prospek pembangunan makro, ekonomi Malaysia masih diunjurkan mampu berkembang antara 4.0% hingga 5.0% bagi tahun Strategi yang dilakukan adalah melabur dalam syarikat yang dilihat berupaya memberikan pendapatan yang baik, mempunyai imbangan kira-kira yang kukuh, memiliki penilaian yang munasabah dan mempunyai prospek pertumbuhan yang baik dan hasil dividen yang tinggi. Kami mempunyai pendekatan pelaburan jangka panjang dan kami melabur dalam saham-saham berkenaan dengan objektif untuk mengatasi penanda aras. 1.5 Peruntukan Aset pada akhir 3 tahun kewangan BIMB i Growth Pelaburan Sekuriti Tersiarharga Pada 30 Jun 2016 (%) Pada 30 Jun 2015 (%) Pada 30 Jun 2014 (%) Pembinaan Barangan Pengguna Kewangan Barangan Industri Infrastruktur Perladangan Hartanah Teknologi Perdagangan dan Perkhidmatan Waran Tunai dan Pelaburan Jangka Pendek:

23 1.6 Lain-Lain data prestasi bagi tempoh kewangan berakhir 30 Jun BIMB i Growth Tahun kewangan berakhir 2016 Tahun kewangan berakhir 2015 Tahun kewangan berakhir 2014 Harga Unit (RM) NAB tertinggi seunit dalam tahun NAB terendah seunit dalam tahun Nilai Asset Bersih (NAB) dan Unit Dalam Edaran (UDE) pada Akhir Tahun Jumlah NAB (RM) 31,617,322 40,153,278 48,168,322 Unit Dalam Edaran (UDE) 104,861, ,121, ,832,440 NAB seunit (RM) Jumlah Pulangan Dana (%) Pertumbuhan Modal (%) (b) Pulangan Pendapatan (%) (c) Pulangan Dana Nisbah Perbelanjaan Pengurusan (NPP) (%) (d) Nisbah Pusing Ganti Portfolio (NPG) (Kali) (e) Nota:- a) Jumlah Pulangan ke atas Dana = Harga seunit (pada akhir tahun) - 1 Harga seunit (pada awal tahun) b) Pertumbuhan Modal = Jumlah Pulangan Dana Pulangan Pendapatan c) Pulangan Pendapatan = {Pengagihan Pendapatan Se Unit / NAB se unit pada awal tahun} x 100 d) Nisbah Perbelanjaan Pengurusan = Ia dikira dengan mengambil jumlah perbelanjaan pengurusan sepertimana yang dinyatakan sebagai peratusan tahunan daripada jumlah purata Nilai Aset Bersih Dana. e) Nisbah Pusing Ganti Portfolio = Ia dikira dengan mengambil purata jumlah perolehan dan pelupusan pelaburan dalam Dana bagi tempoh setahun dibahagi dengan purata Nilai Aset Bersih Dana yang dikira pada asas harian. 23

24 1.7 Pecahan Pegangan Unit pada 30 Jun 2016 Saiz Dipegang Pemegang Unit BIMB i Growth Pegangan Unit Bilangan % Bilangan Unit % 5,000 dan ke bawah ,144, ,001 hingga 10, , ,001 hingga 50, ,001, ,001 hingga 500, ,960, ,001 dan ke atas * ,858, Unit yang dipegang oleh Pemegang Unit Unit yang dipegang oleh Pengurus Jumlah Keseluruhan Dana * Akaun penama juga termasuk di bawah kategori ini 1.8 Polisi Rebat dan Komisyen Bukan Tunai 1, ,861, , ,861, 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. Untuk dan bagi pihak Pengurus BIMB INVESTMENT MANAGEMENT BERHAD Tarikh: 29 Ogos 2016 Nota: Laporan ini telah diterjemahkan daripada laporan asal (dalam Bahasa Inggeris). Jika terdapat perbezaan, sila rujuk kepada laporan Bahasa Inggeris. 24

25 2.0 Trustee s Report FOR FINANCIAL YEAR ENDED 30 JUNE 2016 We have acted as Trustee of BIMB i Growth ( the Fund ) for the financial year ended 30 June In our opinion, BIMB Investment Management Berhad ( the Manager ) has managed the Fund in the financial year under review in accordance with the following:- 1. The limitations imposed on the investment powers of the Manager and the Trustee under the Deeds, the Securities Commission Malaysia s Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007 and other applicable laws; 2. The valuation or pricing of the Fund is carried out in accordance with the Deeds and relevant regulatory requirement; and 3. The creation and cancellation of units of the Fund are carried out in accordance with the Deeds and relevant regulatory requirement. For Maybank Trustees Berhad (Company No.:5004-P) Bernice K M Lau Head, Operations Kuala Lumpur, Malaysia Date: 29 August

26 3.0 Shariah Committee s Report ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 To the Unitholders of BIMB i Growth ب س م ٱهلل ٱلر ح م ن ٱلر ح يم We have acted as the Shariah Committee of BIMB i Growth. Our responsibilities are to ensure that the procedures and processes employed by BIMB Investment Management Berhad and that the provisions of the Deed dated 17 May 1994 are in accordance with Shariah principles. In our opinion, BIMB Investment Management Berhad has managed BIMB i Growth in accordance with Shariah principles and complied with applicable guidelines, rulings or decisions issued by the Securities Commission pertaining to Shariah matters for the financial year ended 30 June In addition, we also confirm that the investment portfolio of BIMB i Growth 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 Fund are Shariah-compliant. ا علم واالله 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: 29 August

27 4.0 Directors Declaration ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 To the Unitholders of BIMB i Growth We, Dato Ghazali bin Awang and Najmuddin bin Mohd Lutfi, being two of the directors of the Manager, BIMB Investment Management Berhad, for BIMB i Growth 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 a true and fair view of the Statement of Financial Position of the Fund as at 30 June 2016 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, BIMB Investment Management Berhad.. DATO GHAZALI BIN AWANG (Non-Executive Independent Director).. NAJMUDDIN BIN MOHD LUTFI (Chief Executive Officer) Date: 29 August

28 5.0 Independent Auditors Report To The Unitholders Of BIMB i Growth (Established in Malaysia) Report on the Financial Statements We have audited the financial statements of BIMB i Growth ( the Fund ), which comprise the statement of financial position as at 30 June 2016, and the statements of profit or loss and other comprehensive income, changes in net asset value and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 30 to 58. Manager s and Trustee s Responsibility for the Financial Statements The Manager of the Fund is responsible for the preparation of financial statements 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 that are free from material misstatement, whether due to fraud or error. The Trustee is responsible for ensuring that the Manager maintains proper accounting and other records as are necessary to enable true and fair presentation of these financial statements. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity s preparation of financial statements that give a true and fair view 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 entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager, as well as evaluating the overall presentation of the financial statements. 28

29 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of the Fund as of 30 June 2016 and of its financial performance, changes in net asset attributable to unitholders and cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards. Other Matter This report is made solely to the unitholders of the Fund, as a body, in accordance with Securities Commission s Guidelines on Unit Trust Funds in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report. KPMG Desa Megat & Co Firm Number: AF 0759 Chartered Accountants Ow Peng Li Approval Number: 2666/09/17(J) Chartered Accountant Petaling Jaya, Selangor Date: 29 August

30 6.0 Financial Statements (Audited) BIMB i Growth 6.1 Statement of Financial Position as at 30 June 2016 Note RM RM Investments Quoted securities 4 29,623,634 38,905,898 Current assets Amount due from stockbroker 1,005, ,672 Amount due from Manager Other receivables 115, ,006 Current tax assets 16, ,033 Cash and cash equivalents 5 2,010, ,896 Total assets 32,771,381 41,067,979 Current liabilities Amount due to stockbroker 1,052, ,582 Amount due to Manager ,903 Other payables 100, ,216 Total liabilities 1,154, ,701 31,617,322 40,153,278 Unitholders fund Unitholders capital 6 124,156, ,428,410 Accumulated losses (92,539,525) (86,275,132) 31,617,322 40,153,278 Number of units in circulation 6 104,861, ,121,451 Net asset value attributable to unitholders 31,617,322 40,153,278 Net asset value per unit (sen) The notes on pages 34 to 58 are an integral part of these financial statements. 30

31 6.2 Statement of Profit or Loss and Other Comprehensive Income for the financial year ended 30 June 2016 Income Note RM RM (Loss)/Gain on sale of quoted shares (1,510,785) 1,674,846 Gross dividend from shares quoted in Malaysia 1,132,781 1,269,476 Income from short term investments 195,715 61,464 Net loss from financial instruments at fair value through profit or loss (5,450,596) (6,189,646) Gross loss (5,632,885) (3,183,860) Expenses Manager s fee 7 538, ,038 Trustee s fee 8 21,529 27,522 Audit fee 11,000 11,000 Tax agent s fee 2,000 2,000 Administrative expenses 58,753 6, , ,371 Net loss before taxation (6,264,393) (3,919,231) Tax expense Net loss after taxation (6,264,393) (3,919,231) Other comprehensive income for the year - - Total comprehensive loss for the year (6,264,393) (3,919,231) Total comprehensive loss for the year consist of: Realised amount (813,797) 2,270,415 Unrealised amount (5,450,596) (6,189,646) (6,264,393) (3,919,231) The notes on pages 34 to 58 are an integral part of these financial statements. 31

32 6.3 Statement of Changes in Net Asset Value for the financial year ended 30 June 2016 Unitholders Accumulated capital losses Total Note RM RM RM As at 30 June 2014/1 July ,524,223 (82,355,901) 48,168,322 Movement in unitholders contribution Creation of units 2,678,798-2,678,798 Cancellation of units (6,774,611) - (6,774,611) Total attributable to unitholders (4,095,813) - (4,095,813) Net loss for the year - (3,919,231) (3,919,231) As at 30 June 2015/1 July ,428,410 (86,275,132) 40,153,278 Movement in unitholders contribution Creation of units 1,550,704-1,550,704 Cancellation of units (3,822,267) - (3,822,267) Total attributable to unitholders (2,271,563) - (2,271,563) Net loss for the year - (6,264,393) (6,264,393) As at 30 June ,156,847 (92,539,525) 31,617,322 The notes on pages 34 to 58 are an integral part of these financial statements. 32

33 6.4 Statement of Cash Flows for the financial year ended 30 June 2016 Cash flows from operating activities Proceed from sale of quoted investments 69,516,133 34,776,871 Purchase of quoted investments (66,973,270) (31,701,002) Dividend received 1,196,960 1,197,891 Income from short term investments 195,433 61,715 Payment for administrative expenses (65,418) (32,583) Management fee paid (553,815) (691,309) Trustee fee paid (22,153) (27,652) Tax agent fee paid - (6,250) Audit fee paid - (10,000) Cash generated from operations 3,293,870 3,567,681 Tax refund 107,730 - Net cash generated from operating activities RM RM 3,401,600 3,567,681 Cash flows from financing activities Cash receipt for creation of units 1,551,082 2,707,182 Cash payment for cancellation of units (3,833,302) (6,925,434) Net cash used in financing activities (2,282,220) (4,218,252) Net increase/(decrease) in cash and cash equivalents 1,119,380 (650,571) Cash and cash equivalents at the beginning of the financial year 890,896 1,541,467 Cash and cash equivalents at end of the financial year 2,010, ,896 Cash and cash equivalents comprise: Cash at bank 76, ,254 Short term placements 1,933, ,642 2,010, ,896 The notes on pages 34 to 58 are an integral part of these financial statements. 33

34 6.5 Notes to the Financial Statements 1. Information on the Fund BIMB i Growth (hereinafter referred to as the Fund ) was constituted pursuant to the execution of a Deed dated 17 May 1994 and the various Supplemental Deeds between the Manager - BIMB Investment Management Berhad, the Trustee - Maybank Trustees Berhad and the registered unitholders of the Fund. The address of the registered office and principal place of business of the Fund are as follows: Registered office Level 32, Menara Bank Islam No. 22, Jalan Perak Kuala Lumpur Principal place of business Level 19, Menara Bank Islam No. 22, Jalan Perak Kuala Lumpur The principal activity of the Fund is to invest in authorised investments as defined in the Deed, which include stocks and shares of companies quoted on Bursa Malaysia and short term placements. The Manager, BIMB Investment Management Berhad, a company incorporated in Malaysia, is a subsidiary of Bank Islam Malaysia Berhad. The financial statements were approved by the Board of Directors of the Manager on 29 August Basis of preparation (a) Statement of compliance The financial statements of the Fund have been prepared in accordance with Malaysian Financial Reporting Standards ( MFRS ), International Financial Reporting Standards ( IFRS ), the Deed and Securities Commission s Guidelines on Unit Trust Funds ( Guidelines ) in Malaysia. The following are accounting standards, amendments and interpretations that have been issued by the Malaysian Accounting Standards Board ( MASB ) but have not been adopted by the Fund: 34

35 2. Basis of Preparation (continued) (a) Statement of compliance (continued) MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2016 MFRS 14, Regulatory Deferral Accounts Amendments to MFRS 5, Non-current Assets Held for Sale and Discontinued Operations (Annual Improvements Cycle) Amendments to MFRS 7, Financial Instruments: Disclosures (Annual Improvements Cycle) Amendments to MFRS 10, Consolidated Financial Statements, MFRS 12, Disclosure of Interests in Other Entities and MFRS 128, Investments in Associates and Joint Ventures Investment Entities: Applying the Consolidation Exception Amendments to MFRS 11, Joint Arrangements Accounting for Acquisitions of Interests in Joint Operations Amendments to MFRS 101, Presentation of Financial Statements Disclosure Initiative Amendments to MFRS 116, Property, Plant and Equipment and MFRS 138, Intangible Assets Clarification of Acceptable Methods of Depreciation and Amortisation Amendments to MFRS 116, Property, Plant and Equipment and MFRS 141, Agriculture Agriculture: Bearer Plants Amendments to MFRS 119, Employee Benefits (Annual Improvements Cycle) Amendments to MFRS 127, Separate Financial Statements Equity Method in Separate Financial Statements Amendments to MFRS 134, Interim Financial Reporting (Annual Improvements Cycle) MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2017 Amendments to MFRS 107, Statement of Cash Flows Disclosure Initiative Amendments to MFRS 112, Income Taxes Recognition of Deferred Tax Assets for Unrealised Losses MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2018 MFRS 9, Financial Instruments (2014) MFRS 15, Revenue from Contracts with Customers MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2019 MFRS 16, Leases MFRSs, Interpretations and amendments effective for a date yet to be confirmed Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 35

36 2. Basis of Preparation (continued) (a) Statement of compliance (continued) The Fund plans to apply the abovementioned accounting standards, amendments and interpretations, where applicable: from the annual period beginning on 1 July 2016 for those accounting standards, amendments or interpretations that are effective for annual periods beginning on or after 1 January 2016, except for MFRS 14, and Amendments to MFRS 10, MFRS 11, MFRS 116, MFRS 119, MFRS 127, and MFRS 134 which are not applicable to the Fund. from the annual period beginning on 1 July 2017 for those amendments that are effective for annual periods beginning on or after 1 January from the annual period beginning on 1 July 2018 for those accounting standards, amendments or interpretations that are effective for annual periods beginning on or after 1 January from the annual period beginning on 1 July 2019 for the accounting standard that is effective for annual periods beginning on or after 1 January The Fund is currently assessing the financial impact of adopting the abovementioned standards, amendments and interpretations. (b) Basis of measurement The financial statements are prepared on the historical cost basis except as disclosed in Note 3(a)(ii). (c) Functional and presentation currency These financial statements are presented in Ringgit Malaysia ( RM ), which is the Fund s functional currency. 36