BIMB DANA AL-FALAH UNAUDITED INTERIM REPORT FOR THE 6 MONTHS ENDED 28 FEBRUARY 2018

Transcription

1 BIMB DANA AL-FALAH UNAUDITED INTERIM REPORT FOR THE 6 MONTHS ENDED 28 FEBRUARY 2018 LAPORAN INTERIM TIDAK DIAUDIT BAGI TEMPOH 6 BULAN BERAKHIR 28 FEBRUARI 2018 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 Period from 1 September 2017 to 28 February Economic and Market Review Market Outlook and Strategy Asset Allocation as at 28 February Other Performance Data for the Financial Period from 1 September 2017 to 28 February Unit Holdings as at 28 February Policy on Rebate and Soft Commission Trustee s Report Shariah Committee s Report Directors Declaration Report Financial Statements (unaudited) Corporate Directory 62 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 period from 1 September 2017 to 28 February 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 70:30 ratio of the FBM Emas Shariah Index and 12-month Term Deposit-i Tawarruq (TDT-i) of Bank Islam. Fund Distribution Policy Distribution of income* (if any) is incidental. Note: 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 Period from 1 September 2017 to 28 February Performance review for BIMB Dana Al-Falah For the 6 months period under review, BIMB Dana Al-Falah ( the Fund ) registered a return of -0.38% as compared to its Benchmark s return of 4.25%, thus underperformed the Benchmark s return by 4.63%. The selected performance benchmark for the Fund is 70:30 ratio of the FBM Emas Shariah Index and 12-month Bank Islam Term Deposit-i Tawarruq (TDT-i) rates. From its commencement on 27 December 2001 to 28 February 2018, the Fund registered a total return of 88.13% as compared to its Benchmark s return of %, thus underperformed the Benchmark s return by 42.22%. Our strategy has consistently been to focus on accumulating stocks in companies that are able to achieve above average earnings growth in the medium to long term. As at 28 February 2018, the Fund has 80.2% exposure to equities and 19.8% exposure to cash, Islamic debt securities and money market instruments. Thus far, the Fund continues to be managed in line with its stated objective by investing in diversified portfolio of equities, Sukuk and Islamic money market instruments. The total NAV of the Fund as at 28 February 2018 is RM5.94 million whereas the NAV per unit of the Fund is RM The Fund did not declare any interim distribution. For the financial period under review, 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 period ended 28 February 2018 Period 6-Month (Sep 17 Feb 18) 1-Year (Mar 17 Feb 18) 3-Year (Mar 15 - Feb 18) 5-Year (Mar 13 Feb 18) BIMB Dana Al-Falah Total Return (%) Average Total Return (%) Total Return (%) Benchmark Average Total Return (%) 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 Data Verified Benchmark : BIMB Investment Management Berhad : Novagni Analytics & Advisory Sdn. Bhd. : 70:30 ratio of the FBM Emas Shariah Index and 12-month Bank Islam Term Deposit-i Tawarruq (TDT-i) rates. 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 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 Global United States (US) Gross Domestic Product (GDP) grew by 2.9% in the fourth quarter of 2017 as compared to 3.2% growth in the third quarter of 2017 and 3.1% in the second quarter of The GDP result was driven by improvements in consumer spending, exports and government spending. US inflation rate remained at 2.2% in February 2018 and was unchanged compared to September US unemployment rate continues to improve to 4.1% in February 2018 as compared to 4.2% in September The Euro zone economy grew by 0.6% in the fourth quarter of 2017 slightly lower from the 0.7% in the third quarter 2017 and 0.7% in the second quarter of Growth for the quarter was driven by exports that were supported by the pickup in the global economy. Unemployment in the Euro Zone has fallen to 8.5% in February 2018 as compared to 8.9% in September 2017, the lowest level in 9 years against a backdrop of ultra-low interest rates implemented by the European Central Bank (ECB) to boost economic activity. The Chinese economy grew by 6.8% for the fourth quarter of 2017, unchanged compared to the third quarter of During the fourth quarter, the economy s industrial output and private consumption rebounded, aided by a robust property market and strong export growth. Overall, major global economies appear to be recovering in tandem while escaping the potential of a global downturn. Local (Source: Bank Negara Malaysia, Bloomberg and RHB Research Institute Sdn Bhd) The Malaysian economy grew at 5.9% in the fourth quarter of 2017 as compared to 6.2% in the third quarter 2017 and 5.8% in the second quarter The GDP result for the period was focused on broad based growth particularly in the services, manufacturing, agriculture and exports sectors. Malaysia s inflation decreased to 1.4% in February 2018 as compared to 4.3% in September 2017 as a result of lower transport cost during the quarter. Bank Negara Malaysia has decided to raise the Overnight Policy Rate (OPR) at 3.25% at the Monetary Policy Committee (MPC) meeting on 25 January The degree of monetary accommodativeness is consistent with the policy stance to ensure that the domestic economy continues on a steady growth path amid lower inflation. Bank Negara Malaysia's (BNM) international reserves amounted to USD103.7 billion as at 28 February The reserves position is sufficient to finance 7.2 months of retained imports and is 1.1 times the short-term external debt. (Source: Bloomberg, Department of Statistics Malaysia and Bank Negara Malaysia) 7

8 1.3.2 Market Review Equity FTSE Bursa Malaysia Emas Shariah Index ( FBM Shariah ) commenced the period under review at 12, points and rose to the highest level of 13, points on 9 January It closed the period under review at 13, points on 28 February For the period under review, the FBM Shariah increased by points or 5.32%. Among the key factors that contributed to the movement of the index are highlighted below: In August 2017, the North Korea and U.S dispute escalated to new heights post of North Korea s missile testing exercise that had prompted US President Trump to issue a retaliation warning. However, markets were quick to discount the negative news and sentiment recovered subsequently as the Fed announced of its quantitative tightening measures. The Fed plans to retire USD3.6 trillion or 50% of its quantitative easing money in the market in three years time along with more rate hikes in the short to medium term horizon. In December 2017, extensive buying of heavyweight stocks such as Sime Darby Plantation, Maybank and DiGi on the domestic index is in-line with the upward momentum of regional peers. Benchmark index was supported by local and foreign funds towards the close of trading in December 2017, with the Ringgit strengthening against the US Dollar. In February, newly appointed Federal Reserve Chairman Jerome Powell indicated further rising of U.S. interest rates to four times this year as the world s largest economy may be shifting gear to faster growth and declining unemployment. Also during the month, US Commerce Department recommends steep tariffs on foreign steel and aluminum while declaring these imports as national security threat. Trade sanctions between U.S. and China will potentially worsen global trade issues and hurt the recovering momentum of the world economy if not mitigated. Bond Market and Money Market a) Global For the period under review, US Treasuries (UST) yields spiked between 40-98bps across most tenure; spurred by bigger than expected increases in wages and consumer prices. The front-end rates i.e. 3Y UST rose 98bps closing at 2.42% buoyed by expectations of Fed tightening in March Federal Open Market Committee (FOMC) whilst fears of inflationary pressures has also weighed on longer-maturity yields. The 10-year, which depicts as a benchmark for US mortgage rates, borrowing costs for municipalities and also inflation indication, saw the most volatility as it oscillated between a low of 2.12% and a high of 2.87%. 8

9 UST-3Y UST-5Y UST-7Y UST-10Y UST-20Y UST-30Y YIELD Figure 4: US Treasury Yields US TREASURY (UST) YIELDS 28/2/ /8/ % 2.70% 2.42% 2.65% 2.80% 2.87% 3.02% 3.13% 2.73% 2.20% 2.47% 2.12% 1.70% 1.44% 1.70% 1.95% 1.20% TENURE Source: US Treasury Department, 28 February

10 b) Local The Malaysian Government Securities (MGS) and Government Investment Issue (GII) dominated the local bond market activities with traded volume of RM billion for the period under review. There was commendable interest for MYR government bonds in February although foreign holdings of total Malaysian debt securities dropped for the first time in four months. The foreign holdings of RM183.9 billion in MGS and GII represent 27.5% of total outstanding MYR government bonds. Table 1: Sukuk/ Islamic Bond Yields Tenure/Date 3-Year Bonds 28 February 2018 (%) 30 August 2017 (%) 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), 28 February

11 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 RATE Figure 5: Overnight Policy Rate (OPR) OVERNIGHTPOLICY RATE (OPR) 3.30% 3.25% 28-Feb-2018, 3.25% 3.20% 3.15% 3.10% 3.05% 3.00% 2.95% 2.90% DATE Source: Bank Negara Malaysia (BNM), 28 February

12 1.4 Market Outlook and Strategy a) Equity For 2018, the Malaysian equities are expected to catch-up in terms of performance, driven by strong GDP growth, corporate earnings recovery, national 2018 budget stimulus to spur consumption and growth, Ringgit s continued performance against the US Dollar as well as the possibility of recovery in global crude oil price. Overall we are positive on the construction sector that will be the beneficiary from key project such as East Coast Rail Line (ECRL), Mass Rapid Transit Line 3 (MRT3) and the Kuala Lumpur-Singapore High Speed Rail (HSR). Subsequently, the export and health care sector will also be benefiting from improving global economic recovery and the US GDP growth performance. Consequently, as Malaysia s economic performance has responded well to the pick-up in global trade, it is anticipated that, the stronger external demand is expected to spill over and lift domestic demand growth going forward. b) Sukuk Market and Money Market BNM raised the OPR by 25bps to 3.25% at the first MPC meeting held on 25 January This was Malaysia s first hike since July The statement accompanying the decision remained hawkish and policymakers pointed towards brighter prospects for global growth and domestic demand. It is believed that the BNM will not rush for a second hike given the erosion of inflationary pressures from peak in recent months. Our money market strategy is to invest in money market investments to maximize return while providing liquidity and regular income for investors. 12

13 1.5 Asset allocation as at 28 February 2018 and as at 31 August of 2017, 2016 and 2015 BIMB Dana Al-Falah (%) (%) (%) (%) Investment in Quoted Securities Construction Consumer products Finance Industrial products Infrastructure Plantation Properties Technology Trading and services Warrant INVESTMENT IN ISLAMIC DEBT SECURITIES: CASH AND SHORT TERM INVESTMENTS:

14 1.6 Other Performance Data for the 6 months ended 28 February 2018 and three financial years ended 31 August BIMB Dana Al-Falah Unit Prices (RM) Highest NAV per unit for the period/year Lowest NAV per unit for the period/year Net Asset Value (NAV) and Units in Circulation (UIC) as at the End of the Period/ Year 6 months ended * * Total NAV (RM) 5,936,894 7,033,452 21,165,930 24,879,924 Units in Circulation (UIC) 12,701,067 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 (d) (MER)(%) Portfolio Turnover Ratio (e) (PTR) (times) * The price and net asset value per unit are ex-distribution. - 14

15 Note: a) Return of the Fund = NAV per unit (end of period) - 1 NAV per unit (beginning of period) b) Capital Growth = Total Return of the Fund Income Return c) Income Return = {Income Distribution per Unit / NAV per Unit at 31 August 2017} x 100 d) Management Expenses Ratio = The Management Expenses Ratio for the annual period are as above. It 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. 1.7 Unit Holdings as at 28 February 2018 BIMB Dana Al-Falah Size of Holdings No. of Unit Holders No. of Units Held No. % Units % 5,000 and below 1, ,097, ,001 to 10, , ,001 to 50, ,478, ,001 to 500, ,419, ,001 and above * ,101, Units Held by Holders 1, ,701, Unit Held by Manager Grand Total for the Fund 1, ,701, * included under this category are nominee accounts 15

16 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 broker which are in the form of research and advisory services that assist in the decision-making process relating to the Fund s investment may be retained by the Manager. The Manager did not receive any rebate and soft commission from broker during the period under review. For and on behalf of The Manager BIMB INVESTMENT MANAGEMENT BERHAD Date: 25 April

17 1.0 Laporan Pengurus Para Pemegang Unit yang Dihormati, Kami dengan sukacitanya membentangkan laporan Pengurus BIMB Dana Al-Falah bagi tempoh kewangan bermula 1 September 2017 hingga 28 Februari Nama Dana/ Jenis Dana/ Kategori Dana/ Objektif Pelaburan Dana/ Penanda Aras Dana/ Polisi Agihan Dana Nama Dana Jenis Dana Kategori Dana BIMB Dana Al-Falah Pertumbuhan Aset Campuran Objektif Pelaburan Dana 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 Indeks FBM Emas Shariah pada nisbah 70:30 dan 12 bulan Deposit Bertempoh-i Tawarruq (TDT-i) Bank Islam. Polisi Agihan Dana Pengagihan pendapatan* (jika ada) adalah sampingan. Nota: *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 Tempoh Kewangan bermula 1 September 2017 sehingga 28 Februari Kajian Pencapaian bagi BIMB Dana Al-Falah Bagi tempoh 6 bulan yang dikaji, BIMB Dana Al-Falah ("Dana") mencatatkan pulangan sebanyak -0.38% berbanding dengan pulangan penanda aras sebanyak 4.25%, memperlihatkan pencapaiannya yang lebih rendah sebanyak 4.63%. Penanda aras terpilih prestasi Dana adalah nisbah 70:30 "Indeks Syariah Emas FBM" dan kadar 12 bulan Deposit Berjangka i-tawarruq (TDT-i) Bank Islam. Sejak penubuhannya pada 27 Disember 2001 hingga 28 Februari 2018, Dana mencatatkan pulangan berjumlah 88.13% berbanding dengan pulangan penanda aras sebanyak %, oleh yang demikian memperlihatkan pencapaian yang lebih rendah sebanyak 42.22%. Strategi kami adalah secara konsistennya menumpukan kepada pengumpulan sahamsaham syarikat yang mampu mencatat pertumbuhan pendapatan melepasi paras purata dalam tempoh jangka sederhana dan panjang. Pada 28 Februari 2018, Dana mempunyai pendedahan sebanyak 80.2% dalam ekuiti dan sebanyak 19.8% dalam tunai, sekuriti hutang Islam dan instrumen pasaran wang. Setakat ini, Dana kekal diuruskan selaras dengan matlamatnya iaitu melabur dalam pelbagai portfolio ekuiti, Sukuk dan instrumen pasaran wang Islam. Jumlah NAB Dana pada 28 Februari 2018 adalah RM5.94 juta manakala NAB seunit Dana adalah RM Dana tidak mengisytiharkan sebarang pengagihan interim. Bagi tahun kewangan dalam kajian, 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 tempoh berakhir 28 Februari 2018 Tempoh 6 bulan (Sep 17 Feb 18) 1 Tahun (Mac 17 Feb 18) 3 Tahun (Mac 15 Feb 18) 5 Tahun (Mac 13 Feb 18) 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 Indeks FBM Emas Shariah dan kadar 12 bulan Deposit Bertempoh-i Tawarruq (TDT-i) Bank Islam 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 Global Keluaran Dalam Negara Kasar (KDNK) Amerika Syarikat (AS) berkembang sebanyak 2.9% pada suku keempat 2017 berbanding pertumbuhan 3.2% pada suku ketiga 2017 dan 3.1% pada suku kedua pada tahun yang sama. Keputusan KDNK didorong oleh peningkatan perbelanjaan pengguna, peningkatan eksport dan petambahan perbelanjaan kerajaan. Kadar inflasi AS pula kekal pada 2.2% pada Februari 2018 dan tidak berubah berbanding September Kadar pengangguran AS bertambah baik kepada 4.1% pada Februari 2018 berbanding 4.2% pada September Ekonomi zon Euro berkembang sebanyak 0.6% pada suku keempat 2017, merosot sedikit berbanding 0.7% pada suku ketiga 2017 dan 0.7% pada suku kedua tahun yang sama. Pertumbuhan pada suku tahun berkenaan didorong oleh eksport yang disokong oleh peningkatan ekonomi global. Kadar pengangguran di zon Euro bertambah baik kepada 8.5% pada Februari 2018 berbanding 8.9% pada September 2017, paras terendah dalam tempoh 9 tahun di sebalik kadar faedah yang amat rendah yang dilaksanakan oleh Bank Pusat Eropah (ECB) untuk menggalakkan aktiviti ekonomi. Ekonomi China meningkat sebanyak 6.8% pada suku keempat 2017, kadarnya kekal seperti mana pada suku ketiga Sepanjang suku keempat, ekonominya menyaksikan pengeluaran industri dan penggunaan swasta melonjak semula, dibantu oleh pasaran hartanah yang berkembang pesat dan pertumbuhan eksport yang kukuh. Secara keseluruhannya, ekonomi negara-negara utama dunia kelihatan mengalami pemulihan secara selari sambil berjaya mengelakkan daripada kemungkinan berlakunya kelembapan ekonomi. (Sumber: Bank Negara Malaysia, Bloomberg dan RHB Research Institute Sdn Bhd) Dalam Negara Ekonomi Malaysia berkembang pada kadar 5.9% pada suku keempat 2017 berbanding 6.2% pada suku tahun ketiga 2017 dan 5.8% pada suku kedua Pertumbuhan KDNK bagi tempoh berkenaan berlaku secara menyeluruh terutamanya dalam sektor perkhidmatan, perkilangan, pertanian dan eksport. Kadar inflasi Malaysia menurun kepada 1.4% pada Februari 2017 berbanding 4.3% pada September 2017 didorong oleh kos pengangkutan yang lebih rendah pada suku tersebut. 21

22 Bank Negara Malaysia (BNM) memutuskan untuk menaikan Kadar Dasar Semalaman (OPR) pada paras 3.25% dalam mesyuarat Jawatankuasa Dasar Monetari (MPC) yang diadakan pada 25 Januari Tahap keupayaan monetari adalah selaras dengan pendirian dasar untuk memastikan ekonomi domestik terus berada pada landasan pertumbuhan yang baik di tengah-tengah inflasi yang lebih rendah. Rizab antarabangsa Bank Negara Malaysia berjumlah AS$103.7 bilion setakat pada 28 Februari Kedudukan rizab ini mencukupi untuk membiayai import tertangguh selama 7.2 bulan dan hutang luar negara jangka pendek sebanyak 1.1 kali. (Sumber: Bloomberg, Jabatan Statistik Malaysia dan Bank Negara Malaysia) Kajian Pasaran Ekuiti Indeks Syariah Emas FTSE Bursa Malaysia ("FBM Syariah") memulakan tempoh dalam kajian pada paras 12, mata dan meningkat ke paras tertinggi 13, mata pada 9 Januari Ia mengakhiri tempoh berkenaan dengan mencapai paras 13, mata pada 28 Februari Bagi tempoh yang dikaji, FBM Syariah meningkat sebanyak mata atau 5.32%. Antara faktor utama yang menyumbang kepada pergerakan indeks ini adalah dinyatakan di bawah: Pada Ogos 2017, pertikaian antara Korea Utara dengan AS semakin memuncak selepas Korea Utara melakukan ujian peluru berpandu sehingga Presiden Trump mengeluarkan amaran untuk bertindak balas. Walau bagaimanapun, pasaran bertindak cepat untuk tidak mengendahkan berita buruk tersebut dan sentimen kemudiannya pulih berikutan pengumuman Rizab Persekutuan AS akan memulakan langkah pengetatan kuantitatifnya. Rizab Persekutuan AS bercadang untuk mengurangkan program kelonggaran kuantitatif sebanyak AS$3.6 trilion atau 50% daripada wangnya dalam pasaran bagi tempoh tiga tahun akan datang selain melakukan lebih banyak kenaikan kadar faedah dalam jangka masa pendek ke sederhana. Pada Disember 2017, pembelian saham-saham bermodal besar secara besarbesaran seperti Sime Darby Plantation, Maybank dan DiGi dalam indeks domestik adalah selari dengan kenaikan momentum yang dialami oleh pasaran-pasaran serantau. Indeks penanda aras disokong oleh dana-dana tempatan dan asing menjelang penutupan urus niaga pada bulan Disember 2017, dengan nilai Ringgit menjadi lebih kukuh berbanding Dolar Amerika Syarikat. 22

23 Pada Februari, Pengerusi Rizab Persekutuan yang baru dilantik Jerome Powell membayangkan berlakunya lagi peningkatan kadar faedah AS sehingga empat kali tahun ini memandangkan negara kuasa besar ekonomi dunia itu mungkin menyaksikan pertumbuhan lebih pantas dan kadar pengangguran yang menurun. Dalam bulan berkenaan juga, Jabatan Perdagangan AS mencadangkan tarif yang tinggi dikenakan terhadap keluli dan aluminium keluaran asing apabila import barangan ini diisytiharkan mengancam keselamatan negara itu. Sekatan perdagangan antara AS dan China mempunyai potensi untuk memburukkan lagi kemelut perdagangan dunia dan menjejaskan momentum pemulihan ekonomi sejagat. Pasaran Bon dan Pasaran Wang a) Global Untuk tempoh kajian, hasil Perbendaharaan AS (UST) meningkat antara mps sepanjang tempoh pegangan; didorong oleh kenaikan gaji dan harga pengguna yang lebih tinggi berbanding jangkaan. Kadar hadapan iaitu 3Y UST meningkat 98mps untuk ditutup pada 2.42% disokong oleh jangkaan pengetatan dasar oleh Rizab Persekutuan pada Jawatankuasa Pasaran Terbuka Persekutuan (FOMC) bulan Mac ketika terdapat kebimbangan terhadap tekanan inflasi juga memberikan kesan kepada hasil yang mempunyai tempoh matang lebih panjang. Tempoh matang selama 10 tahun yang digambarkan sebagai satu penanda aras kadar gadai janji AS, kos pinjaman majlis perbandaran dan juga petunjuk inflasi, mengalami keadaan paling tidak menentu apabila ia berada antara paras rendah 2.12% hingga paras tinggi 2.87%. 23

24 Rajah 4: Kadar Pulangan Perbendaharaan AS b) Dalam Negara Sumber: Jabatan Perbendaharaan AS, 28 Februari 2018 Sekuriti Kerajaan Malaysia (MGS) dan Terbitan Pelaburan Kerajaan (GII) menguasai aktiviti dalam pasaran bon tempatan dengan dagangan berjumlah RM bilion diniagakan bagi tempoh kajian. Terdapat minat yang memberangsangkan bagi bon MYR kerajaan pada bulan Februari walaupun pegangan asing bagi keseluruhan jumlah sekuriti hutang Malaysia jatuh buat kali pertamanya bagi tempoh empat bulan. Pegangan asing sebanyak RM183.9 bilion dalam MGS dan GII mewakili 27.5% daripada baki jumlah keseluruhan bon MYR kerajaan. 24

25 Tempoh/ Tarikh Bon 3 Tahun Jadual 1: Kadar Pulangan Sukuk/ Bon Islam 28 Februari 2018 (%) 30 Ogos 2017 (%) Perubahan * (bps) GII Korporat AAA Bon 5 Tahun GII Korporat AAA Bon 7 Tahun GII Korporat AAA Bon 10 Tahun GII Korporat AAA Sumber: Agensi Penetapan Harga Bon Malaysia (BPAM), 28 Februari 2018 Rajah 5: Kadar Polisi Semalaman (OPR) Sumber: Bank Negara Malaysia (BNM), 28 Februari

26 1.4 Tinjauan Pasaran dan Strategi a) Ekuiti Bagi 2018, ekuiti Malaysia dijangka kembali mencatat peningkatan dari segi prestasi, didorong oleh pertumbuhan KDNK yang kukuh, pemulihan pendapatan korporat, rangsangan belanjawan negara 2018 untuk menggalakkan penggunaan dan pertumbuhan, prestasi baik berterusan Ringgit berbanding Dolar AS dan juga kemungkinan pemulihan harga minyak mentah global. Secara keseluruhan, kami mempunyai pandangan yang positif terhadap sektor pembinaan yang akan menerima manfaat daripada pelaksanaan projek-projek utama seperti Laluan Pantai Timur (ECRL), Laluan Ketiga Transit Laluan Massa (Mass Rapid Transit Line 3 (MRT3)) dan Kereta Api Berkelajuan Tinggi Kuala Lumpur-Singapura (HSR). Sektor eksport dan penjagaan kesihatan juga akan mendapat manfaat daripada pemulihan ekonomi global dan prestasi pertumbuhan KDNK AS. Berikutan itu, memandangkan prestasi ekonomi Malaysia memberikan tindak balas yang baik terhadap peningkatan perdagangan global, permintaan luar yang dijangka lebih kukuh diunjur memberi kesan dan meningkatkan pertumbuhan permintaan domestik dalam melangkah ke hadapan. b) Pasaran Sukuk dan Pasaran Wang BNM menaikkan kadar dasar semalaman (OPR) sebanyak 25mps kepada 3.25% dalam mesyuarat MPC yang pertama yang diadakan pada 25 Januari Ini adalah kenaikan pertama dilakukan oleh Malaysia sejak Julai Berdasarkan kenyataan yang dikeluarkan, peningkatan itu dilakukan kerana para pembuat dasar menjangkakan prospek yang lebih cerah dalam pertumbuhan global dan permintaan domestik. BNM dijangka tidak akan tergesa-gesa untuk melakukan kenaikan kedua memandangkan terdapat pengurangan tekanan inflasi daripada paras tertingginya dalam beberapa bulan kebelakangan ini. Strategi pasaran wang kami adalah untuk melabur dalam pasaran wang dengan tujuan memaksimumkan pulangan sambil menyediakan kecairan dan pendapatan konsisten kepada para pelabur. 26

27 1.5 Peruntukan aset pada 28 Februari 2018 dan pada 31 Ogos 2017, 2016 dan 2015 BIMB Dana Al-Falah Pelaburan Sekuriti Tersiarharga: (%) (%) (%) (%) Pembinaan Barangan pengguna Kewangan Barangan industri Infrastruktur Perladangan Hartanah Teknologi Perdagangan dan perkhidmatan Waran PELABURAN DALAM SEKURITI HUTANG SECARA ISLAM: TUNAI DAN PELABURAN JANGKA PENDEK:

28 1.6 Lain-Lain data prestasi bagi tempoh 6 bulan berakhir 28 Februari 2018 dan tiga tahun kewangan berakhir 31 Ogos BIMB Dana Al-Falah Harga Unit (RM) NAB tertinggi seunit dalam tempoh/tahun NAB terendah seunit dalam tempoh/tahun Nilai asset Bersih (NAB) dan Unit Dalam Edaran (UDE) pada Akhir Tempoh/ Tahun 6 bulan berakhir * * Jumlah NAB (RM) 5,936,894 7,033,452 21,165,930 24,879,924 Unit Dalam Edaran (UDE) 12,701,067 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 Ogos Nisbah Perbelanjaan (d) Pengurusan (NPP) (%) Nisbah Pusing Ganti (e) Portfolio (Kali) * Harga NAB selepas pengagihan pendapatan. 28

29 Nota:- a) Pulangan ke atas Dana = Harga seunit (pada akhir tempoh) - 1 Harga seunit (pada awal tempoh) b) Penambahan Modal = Pulangan Ke atas Dana Pulangan Pendapatan c) Pulangan Pendapatan d) Nisbah Perbelanjaan Pengurusan e) Nisbah Pusing Ganti Portfolio = {Pengagihan Pendapatan Se Unit / NAB se unit pada 31 Ogos 2017} x 100 = 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. 1.7 Pecahan Pegangan Unit pada 28 Februari 2018 BIMB Dana Al-Falah Saiz Dipegang Bilangan Pemegang Unit Bilangan Pegangan Unit Bilangan % Unit % 5,000 dan ke bawah 1, ,097, ,001 hingga 10, , ,001 hingga 50, ,478, ,001 hingga 500, ,419, ,001 dan ke atas * ,101, Unit yang dipegang oleh Pemegang unit Unit yang dipegang oleh Pengurus Jumlah Keseluruhan Dana 1, ,701, , ,701, *Akaun penama juga termasuk di bawah kategori ini 29

30 1.8 Polisi Rebat dan Komisyen Bukan Tunai Sebarang rebat broker saham yang diterima oleh Pengurus akan dimasukkan secara terus ke dalam akaun Dana. Apa-apa komisyen bukan tunai yang diterima daripada broker dalam bentuk perkhidmatan penyelidikan dan nasihat yang membantu dalam proses membuat keputusan yang berkaitan dengan pelaburan Dana boleh disimpan oleh Pengurus. Pengurus tidak menerima sebarang rebat dan komisyen bukan tunai daripada broker bagi tempoh dalam kajian. Untuk dan bagi pihak Pengurus BIMB INVESTMENT MANAGEMENT BERHAD Tarikh: 25 April 2018 Nota: Laporan ini telah diterjemahkan daripada laporan asal (dalam Bahasa Inggeris). Jika terdapat perbezaan, sila rujuk kepada laporan Bahasa Inggeris. 30

31 2.0 Trustee s Report SCBMB TRUSTEE BERHAD UNAUDITED INTERIM REPORT FOR THE 6-MONTH PERIOD ENDED 28 FEBRUARY 2018 To the Unit Holders of BIMB Dana Al-Falah We have acted as Trustee of BIMB Dana Al-Falah ( the Fund ) for the financial period ended 28 February To the best of our knowledge, BIMB Investment Management Berhad ( the Manager or the Management Company ) has managed the Fund in accordance with the following: 1. The limitations imposed on the investment powers of the Management Company and the Trustee under the Deed, 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 Fund is carried out in accordance with the Deed and any regulatory requirement; and 3. The creation and cancellation of units of the Fund are carried out in accordance with the Deed and any regulatory requirement. For SCBMB Trustee Berhad.. Maziah Yong Head, Trustee Services Date: 25 April

32 3.0 Shariah Committee s Report UNAUDITED INTERIM REPORT FOR 6-MONTH PERIOD ENDED 28 FEBRUARY 2018 To the Unit Holders of BIMB Dana Al-Falah ب س م ٱهلل ٱلر ح م ن ٱلر ح يم 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 financial period from 1 September 2017 to 28 February 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 Fund 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: 25 April

33 4.0 Directors Declaration UNAUDITED INTERIM REPORT FOR THE 6-MONTH PERIOD ENDED 28 FEBRUARY 2018 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 a true and fair view of the Statement of Financial Position of the Fund as at 28 February 2018 and Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Net Asset Value and Statement of Cash Flows for the period ended on that date. For and on behalf on the Board of Directors, Dato Ghazali Bin Awang (Non-Executive Independent Director).. Najmuddin Bin Mohd Lutfi (Chief Executive Officer) Date: 25 April

34 5.0 Financial Statements (Unaudited) Fair Value of Financial Instruments All Assets and Liabilities of the Fund are carried at fair values. The accounting policies on recognition and measurement of the fair value for the Fund s investments are disclosed in their respective accounting policies. The fair value for the amount due from/(to) stockbroker, amount due from/(to) Manager, cash at bank, sundry receivables, sundry payables and accruals approximate their respective carrying amounts as at the balance sheet date due to the relatively short-term maturity of these Financial Instruments. 34

35 5.1 Unaudited Statement of Financial Position as at 28 February 2018 Assets Note As at (unaudited) RM As at (audited) Quoted securities 4 4,763,594 5,479,000 Islamic debt securities 5 1,001,530 1,006,230 Amount due from stockbroker 191,043 - Amount due from Manager 95 1,698 Other receivables 7,190 15,498 Cash and cash equivalent 6 260, ,455 Total assets 6,223,543 7,072,881 RM Liabilities Amount due to stockbroker 192,711 - Amount due to Manager 52,672 - Other payables 41,266 39,429 Total liabilities 286,649 39,429 Net asset value 5,936,894 7,033,452 Unitholders fund Unitholders capital 7 12,455,543 13,547,176 Accumulated losses (6,518,649) (6,513,724) Net asset value attributable to unitholders 5,936,894 7,033,452 Number of units in circulation 7 12,701,067 14,988,802 Net asset value per unit (sen) The notes on pages 39 to 61 form an integral part of these financial statements. 35

36 5.2 Unaudited Statement of Profit or Loss and Other Comprehensive Income for the 6 months financial period ended 28 February 2018 Note to to RM RM Income Gross dividends from shares quoted in Malaysia 56, ,533 Gain/(loss) on sale of quoted shares 342,214 (2,932,141) Loss on unquoted investment - (1,829) Income from Islamic debt securities 22,438 90,325 Income from short term investments 5,765 17,762 Hibah from Al-Wadiah account Net unrealised (loss)/gain from financial instruments at fair value through profit or loss (360,440) 2,885,787 66, ,741 Amortisation of premium - (9,210) Gross income 66, ,531 Expenses Manager s fee 8 49, ,428 Trustee s fee 9 2,325 6,743 Audit fee 6,465 5,456 Tax agent s fee 1, Administrative expenses 11,894 22,566 71, ,157 Net (loss)/income before taxation (4,925) 72,374 Taxation Net (loss)/income after taxation (4,925) 72,374 Other comprehensive income for the period - - Total comprehensive (loss)/income for the period (4,925) 72,374 Total comprehensive (loss)/income for the period consist of: Realised amount 355,515 (2,813,413) Unrealised amount (360,440) 2,885,787 (4,925) 72,374 The notes on pages 39 to 61 form an integral part of these financial statements. 36

37 5.3 Unaudited Statement of Changes in Net Asset Value for the 6 months financial period ended 28 February 2018 Unitholders capital RM Accumulated losses RM Total RM As at 31 August 2016/ 1 September ,317,330 (7,151,400) 21,165,930 Creation of units via cash 57,195-57,195 Cancellation of units (14,254,852) - (14,254,852) Total attributable to unitholders (14,197,657) - (14,197,657) Total comprehensive income for the period - 72,374 72,374 As at 28 February ,119,673 (7,079,026) 7,040,647 As at 31 August 2017/ 1 September ,547,176 (6,513,724) 7,033,452 Creation of units via cash 26,661-26,661 Cancellation of units (1,118,294) - (1,118,294) Total attributable to unitholders (1,091,633) - (1,091,633) Total comprehensive loss for the period - (4,925) (4,925) As at 28 February ,455,543 (6,518,649) 5,936,894 The notes on pages 39 to 61 form an integral part of these financial statements. 37

38 5.4 Unaudited Statement of Cash Flows for the 6 months financial period ended 28 February 2018 Cash flows from operating activities to RM to RM Proceeds from sale of quoted investments 4,389,758 14,820,360 Purchase of quoted investments (3,686,210) (472,707) Purchase of Islamic debt securities - (1,016,600) Maturity of Islamic debt securities - 1,500,000 Sales of Islamic debt securities - 2,017,600 Dividend received 63, ,236 Income from Islamic debt securities and short term investments 28, ,449 Management fee paid (50,908) (146,224) Trustee fee paid (11,040) (7,799) Tax agent fee paid (4,500) (4,500) Audit fee paid - (22,000) Payment for administrative expenses (2,736) (25,046) Net cash generated from operating activities 726,993 16,995,769 Cash flows from financing activities Cash receipt for creation of units 28,264 57,335 Cash payment for cancellation of units (1,065,621) (14,282,607) Net cash used in financing activities (1,037,357) (14,225,272) Net (decrease)/increase in cash and cash equivalents (310,364) 2,770,497 Cash and cash equivalents at 1 September 570, ,817 Cash and cash equivalents at 28 February 260,091 3,615,314 Cash and cash equivalents comprise: Short term placements - 3,510,417 Cash at bank 260, , ,091 3,615,314 The notes on pages 39 to 61 form an integral part of these financial statements. 38

39 5.5 Notes to the financial statements 1. Information on the Fund BIMB Dana Al-Falah (hereinafter referred to as the Fund ) was constituted pursuant to the execution of a Deed dated 6 December 2001 between the Manager - BIMB Investment Management Berhad, the Trustee and the registered unitholders of the Fund. Effective from 5 September 2017, the trustee has been changed from Affin Hwang Trustee Berhad to SCBMB Trustee Berhad. The principal activity of the Fund is to invest in authorised investments as defined in the Deed, which include investments in stocks and shares of companies quoted on Bursa Malaysia, short term placements and Islamic debt securities. 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 25 April 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, interpretations and amendments that have been issued by the Malaysian Accounting Standards Board ( MASB ) but have not been adopted by the Fund: MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2018 MFRS 9, Financial Instruments (2014) MFRS 15, Revenue from Contracts with Customers Clarifications to MFRS 15, Revenue from Contracts with Customers IC Interpretation 22, Foreign Currency Transactions and Advance Consideration Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements to MFRS Standards Cycle) Amendments to MFRS 2, Share-based Payment Classification and Measurement of Share-based Payment Transactions Amendments to MFRS 4, Insurance Contracts Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts 39

40 2. Basis of preparation (continued) (a) Statement of compliance (continued) Amendments to MFRS 128, Investments in Associates and Joint Ventures (Annual Improvements to MFRS Standards Cycle) Amendments to MFRS 140, Investment Property Transfers of Investment Property MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2019 MFRS 16, Leases IC Interpretation 23, Uncertainty over Income Tax Treatments Amendments to MFRS 3, Business Combinations (Annual Improvements to MFRS Standards Cycle) Amendments to MFRS 9, Prepayment Features with Negative Compensation Amendments to MFRS 11, Joint Arrangements (Annual Improvements to MFRS Standards Cycle) Amendments to MFRS 112, Income Taxes (Annual Improvements to MFRS Standards Cycle) Amendments to MFRS 123, Borrowing Costs (Annual Improvements to MFRS Standards Cycle) Amendments to MFRS 128, Investments in Associates and Joint Ventures Long-term Interests in Associates and Joint Ventures MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2021 MFRS 17, Insurance Contracts MFRSs, Interpretations and amendments effective for a date yet to be confirmed Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 40

41 2. Basis of preparation (continued) (a) Statement of compliance (continued) The Fund plans to apply the abovementioned accounting standards, interpretations and amendments, where applicable: from the annual period beginning on 1 September 2018 for those accounting standards, interpretations and amendments that are effective for annual periods beginning on or after 1 January 2018; from the annual period beginning on 1 September 2019 for those accounting standards, interpretations and amendments that are effective for annual periods beginning on or after 1 January 2019; from the annual period beginning on 1 September 2021 for those accounting standards, interpretations and amendments that are effective for annual periods beginning on or after 1 January The Fund will apply the abovementioned standards, interpretations and amendments that are applicable to the Company when they become effective. (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. (d) Use of estimates and judgements The preparation of the financial statements in conformity with MFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have significant effect on the amounts recognised in the financial statements. 41

42 3. Significant accounting policies The accounting policies set out below have been applied consistently to the periods presented in these financial statements, unless otherwise stated. (a) Financial instruments (i) Initial recognition and measurement A financial instrument is recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the instrument. A financial instrument is recognised initially, at its fair value plus, in the case of a financial instrument not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument. (ii) Financial instrument categories and subsequent measurement The Fund categorises financial instruments as follows: Financial assets (a) Financial assets at fair value through profit or loss Fair value through profit or loss category comprises financial assets that are held for trading, or financial assets that are specifically designated into this category upon initial recognition. These include Islamic debt securities. Financial assets categorised as fair value through profit or loss are subsequently measured at their fair values with the gain or loss recognised in profit or loss. (b) Financing and receivables Financing and receivables category are debt instruments that are not quoted in an active market and these comprises of amount due from stockbroker, amount due from Manager, other receivables, cash and cash equivalent and short term investments. Financial assets categorised as financing and receivables are subsequently measured at amortised cost using the effective profit method. All financial assets except for those measured at fair value through profit or loss, are subject to review for impairment, Note 3 (e). 42

43 3. Significant accounting policies (continued) (a) Financial instruments (continued) (ii) Financial instrument categories and subsequent measurement (continued) Financial liabilities Financial liabilities measured at amortised cost comprises of amount due to stockbroker, amount due to Manager and other payables. (iii) Derecognition A financial asset or part of it is derecognised when, and only when the contractual rights to the cash flows from the financial asset expire or the financial asset is transferred to another party without retaining control or substaintially all risks and rewards of the asset. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain or loss that had been recognised in equity is recognised in profit or loss. A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss. (b) Income recognition (i) Dividend income Dividend income is recognised in profit or loss on the date the Fund s right to receive payment is established, which in the case of quoted shares is the entitlement date. (ii) Income from short term investments and Islamic debt securities Income from short term investments and Islamic debt securities are recognised as it accrues, using the effective profit method in profit or loss. 43