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

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

2 Table of Content No. Particulars Page 1.0 Manager s Report Fund Name/ Fund Type/ Fund Category/ Fund Investment Objective/ Fund Performance Benchmark/ Fund Distribution Policy Performance for the Financial Year Ended 31 August Economic and Market Review Market Outlook And Strategy Asset Allocation as at 31 August Other Performance Data for the Financial Year Ended 31 August Unit Holdings as at 31 August Policy on Rebate And Soft Commission Trustee s Report Shariah Committee s Report Directors Declaration Independent Auditors Report To The Unitholders of BIMB Dana Al- Fakhim Financial Statements (Audited) Corporate Directory 55 2

3 1.0 Manager s Report Dear Unit Holders, We are pleased to present the Manager s report of BIMB Dana Al-Fakhim for the financial year ended 31 August Fund Name/ Fund Type/ Fund Category/ Fund Investment Objective/ Fund Performance Benchmark/ Fund Distribution Policy Fund Name Fund Type Fund Category Fund Investment Objective BIMB Dana Al-Fakhim Income Money market The Fund seeks to provide a regular 1 stream of income by investing in Shariah-compliant short-term debentures, money market instruments and placement in short-term deposits. Any material change to the investment objective of the Fund would require unit holders approval. Fund Performance Benchmark 1-month Bank Islam Term Deposit Tawarruq-i rates of Bank Islam Malaysia Berhad after corporate tax. Fund Distribution Policy Payment Mode for Income Distribution The Fund shall distribute income 2 (if any) on a quarterly basis. Payment into Unit Holders bank account or reinvestment. 1 The Fund shall distribute income (if any) on a quarterly basis. 2 The distribution of income will automatically be reinvested. Hence, unit holders will receive additional units from the reinvestment of income distribution. 3

4 1.2 Performance for the financial year ended 31 August Performance review for BIMB Dana Al-Fakhim For the financial year under review, BIMB Dana Al-Fakhim (Fund) registered a return of 3.03%, as compared to its Benchmark s return of 2.32%. The selected performance benchmark for Fund is based on 1-month Bank Islam Term Deposit-i Tawarruq rates. Our strategy has consistently been to manage in a fairly conservative manner with the primary aim of outperforming traditional investment account returns. Consequently, the Fund has managed to achieve stability for the investors principal investment besides providing quarterly income to the investors. During its financial year ended 31 August 2017, the Fund has met its objectives of providing a regular income stream to the Unit Holders through investments primarily in Shariah-compliant money market instruments. As at end August 2017, the Fund has 100% exposure in Shariah-compliant money market instrument. Thus far, the Fund continues to be managed in line with its stated objective by investing primarily in Shariah-compliant money market instruments. The total NAV was RM17.78 million as at 31 August 2017 and RM18.48 million as at 31 August The NAV per unit of the Fund has slightly decreased to RM as at 31 August 2017 from RM as at 31 August The Fund has declared a total income distribution of 1.57 sen per unit during the financial year, equivalent to a yield of 3.03% per annum. For the financial year ended 31 August 2017, there were no significant changes to the state of affairs of the Fund and no circumstances that materially affect the interest of Unitholders that have taken place up to the date of this Manager s report. 4

5 1.2.2 Total return and average total return for the respective financial year ended 31 August BIMB Dana Al-Fakhim Total Return (%) Average Total Return (%) Total Return (%) Benchmark Average Total Return (%) 1-Year Period Year Period Year Period Total return for the last 5 financial years Financial Years BIMB Dana Al-Fakhim (%) Total Return Benchmark (%) 31 August August August August August

6 Figure 1: Movement of the Fund versus the Benchmark TOTAL RETURN 4.00% FUND AND BENCHMARK TOTAL RETURN 3.50% 3.37% 3.00% 2.77% 2.99% 3.03% 2.50% 2.38% 2.27% 2.25% 2.39% 2.38% 2.32% 2.00% 1.50% 1.00% 0.50% 0.00% 31-Aug Aug Aug Aug Aug-17 BIMB Dana Al Fakhim Benchmark Note: Data Source Data verified by Benchmarks : BIMB Investment Management Berhad : Novagni Analytics & Advisory Sdn. Bhd. :1-month Bank Islam Term Deposit Tawarruq-I rates after corporate tax. Notes: 1. Total Return of the Fund has been verified by Novagni Analytics & Advisor 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 2.6% in the second quarter of 2017 as compared to 1.2% growth in the first quarter of 2017 and 1.8% in the fourth quarter of The acceleration in GDP for the second quarter of 2017 was reflected in the upturns in federal government spending and private inventory investment despite of deceleration in exports. US headline inflation rate was up 1.9% in August 2017 compared to 1.5% in September 2016 due to rising lodging and gasoline cost as Hurricane Harvey shut down refineries in the Gulf coast. US unemployment rate fell to 4.4% in August 2017 from 5.0% in September 2016 on the back of rising income, consumer spending and economic growth. The Euro zone economy grew 0.6% in the second quarter of 2017 as compared to 0.5% in the first quarter 2017 and 0.6% in the fourth quarter of The Eurozone economic recovery has gained momentum while unemployment has fallen against a backdrop of ultra-low interest rates which are among measures implemented by the European Central Bank (ECB) to boost economic activity. Euro zone s annual inflation increased to 1.5% in August 2017 from 0.4% in September 2016, driven by better GDP growth in the Eurozone area. The unemployment rate in the Euro zone area fell to 9.1 % in July 2017 compared to 10.0% in September 2016 that remained at its lowest level since July The Chinese economy maintained a growth rate of 6.9% for the second quarter of 2017, maintaining comparable economic growth rate to the first quarter of 2017 as industrial output and private consumption improved, aided by a robust property market and recovery on the exports sector. (Source: Bloomberg and RHB Research Institute Sdn Bhd) Local The Malaysian economy grew faster at 5.8% in the second quarter of 2017 as compared to 5.6% in the first quarter 2017 and 4.5% in the fourth quarter The stronger GDP result for the period was due to improvements in private consumption and exports. 7

8 Malaysia s headline inflation in August 2017 increased to 3.7% from 1.5% in September 2016 due to higher cost of food & non-alcoholic beverages, transportation and housing, in tandem with higher oil prices and stronger GDP growth performance. Bank Negara Malaysia s Monetary Policy Committee (MPC) maintained the Overnight Policy Rate (OPR) at 3.00% during its July meeting to accommodate growth prospects for the country. Bank Negara s international reserve stood at USD billion as at 30 August 2017 as compared to USD 97.7 billion in September 2016 with improvement of capital inflow from foreign institutional investors into Malaysia Market Review Bond Market and Money Market a) Global In November 2016, US Treasury (UST) yields started a surge amid expectation of the newly-elected President Donald Trump to embark on further fiscal expansion. Before the election, the UST yields was already pressured upward as the Federal Reserve policymakers had signaled additional monetary tightening in the near term while economists had already projected an upbeat US growth in The surge in the 2-year US Treasury yield to above 1.3% at the end of June 2017 was well within expectation given the two US Federal Reserve rate hikes to date. However, US Treasuries strengthened in August 2017 on the back of safe haven demand from a series of geopolitical tensions arise when North Korea threatened to attack Guam and launched a missile testing exercise that flew over Japan. Notwithstanding the above, during the financial period under review, the UST yield increased as compared to the yield as at 31 August

9 Figure 2: US Treasury Yields Source: US Treasury Department, 31 August 2017 b) Local The sovereign bonds dominated the local bond market activities when Malaysian Government Securities (MGS) and Government Investment Issues (GII) recorded secondary market traded volume of RM835.5 billion for the financial year under review. Both the government bond yields and corporate bonds yields increased across the yield curve after the increase of the Fed Fund rate in June 2017 along with the market expectation that the US Federal Reserve will increase the Fed Fund Rate in the second half of

10 Tenure/Date 3-Year Bonds Table 1: Sukuk/ Islamic Bond Yields 31 August August 2016 (%) (%) Change * (bps) GII AAA Corporate Year Bonds GII AAA Corporate Year Bonds GII AAA Corporate Year Bonds GII AAA Corporate Source: Bond Pricing Agency Malaysia (BPAM), 31 August 2017 Figure 3: Overnight Policy Rate (OPR) Source: Bank Negara Malaysia (BNM), 31 August

11 1.4 Market Outlook and Strategy Sukuk Market and Money Market Moving forward, it is viewed that MGS and corporate bonds will trend higher compared to their average levels in 2H2016, albeit at a moderate pace. This is despite of bond yields drifting lower in 1H2017 as it is expected that some upticks in yield movements on the prospect of a third Fed rate hike as the US economy continues to recover. Malaysia s improving economic fundamentals should provide some cushion against any sharp yield upticks. It is also expected that yield movements to become relatively less sharp going forward as investors come to terms with the Trump presidency and central banks become more transparent when expressing their desired policy direction. Bank Negara Malaysia s (BNM) Monetary Policy Committee (MPC) kept the overnight policy rate (OPR) unchanged at 3.00% for its sixth straight meeting on 13 Jul Looking forward, it is expected that BNM to maintain OPR at 3.00% for the rest of It is believed that the monetary policy would unlikely be tightened for the remaining part of this year, as inflation would likely normalize moving forward, as the economy has just picked up with Malaysian Ringgit seeing some stabilisation. On the other hand, stronger domestic economic growth in the country, coupled with more aggressive rate hikes and plans to reduce the Fed s balance sheet in the US, would likely limit the scope for BNM to cut interest rates. 11

12 1.5 Asset allocation as at 31 August BIMB Dana Al-Fakhim 2017 (%) 2016 (%) 2015 (%) INVESTMENT IN ISLAMIC DEBT SECURITIES: CASH AND SHORT TERM INVESTMENTS: Other Performance Data for the Financial Year Ended 31 August BIMB Dana Al-Fakhim Unit Prices (RM) Highest NAV per unit for the year Lowest NAV per unit for the year Net Asset Value (NAV) and Units in Circulation (UIC) as at the End of the Year Total NAV (RM) 17,777,920 18,483,152 16,920,044 Units in Circulation (UIC) 34,368,778 35,718,525 32,772,540 NAV per unit (RM)* (a) [page 15] Return of Fund (%) Capital Growth (%) (b) Income Return (%) (c) Return of Fund (%) Total Gross Distribution per Unit (Sen) per annum Total Net Distribution per Unit (Sen) per annum 1 st Quarter NAV per Unit before Distribution (RM) NAV per Unit after Distribution (RM)* Date of Distribution 30 November November November

13 BIMB Dana Al-Fakhim (continued) nd Quarter NAV per Unit before Distribution (RM) NAV per Unit after Distribution (RM)* Date of Distribution 3 rd Quarter 28 February February February 2015 NAV per Unit before Distribution (RM) NAV per Unit after Distribution (RM)* Date of Distribution 31 May May May th Quarter NAV per Unit before Distribution (RM) NAV per Unit after Distribution (RM)* Date of Distribution 30 August August August 2015 Management Expense Ratio (MER) (d) (%) Portfolio Turnover Ratio (PTR) (e) (times) * The price and net asset value per unit are ex-distribution. Note: a) Return of the Fund = NAV per unit (end of year) - 1 NAV per unit (beginning of year) b) Capital Growth = Total Return of the Fund Income Return c) Income Return = {Income Distribution per Unit / NAV per Unit on beginning of year} x 100 d) Management Expense Ratio e) Portfolio Turnover Ratio = The management expense ratio 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 annual period over the average Net Asset Value of the Fund calculated on a daily basis. 13

14 1.7 Unit Holdings as at 31 August 2017 BIMB Dana Al-Fakhim Size of Holdings No. of Unit Holders No. of Units Held No. % Units % 5,000 and below , ,001 to 10, , ,001 to 50, , ,001 to 500, , ,001 and above * ,781, ,368, Unit Held by Manager Grand Total for The Fund ,368, * included under this category are nominee accounts 1.8 Policy on Rebate and Soft Commission Any stock broking rebates received by the Manager will be directed to the account of the Fund. Any soft commissions received from the brokers which are in the form of research and advisory services that assist in the decision-making process relating to the Fund s investment may be retained by the Manager. The Manager received soft commission from brokers in the form of research and advisory services during the year under review. For and on behalf of The Manager BIMB INVESTMENT MANAGEMENT BERHAD Date: 26 October

15 1.0 Laporan Pengurus Para Pemegang Unit yang Dihormati, Kami dengan sukacitanya membentangkan Laporan Pengurus BIMB Dana Al- Fakhim bagi tahun kewangan berakhir pada 31 Ogos Nama Dana/ Jenis Dana/ Kategori Dana/ Objektif Pelaburan Dana/ Penanda Aras Dana/ Polisi Agihan Dana Nama Dana Jenis Dana Kategori Dana Objektif Pelaburan Dana BIMB Dana Al-Fakhim Pendapatan Pasaran Wang Dana ini menawarkan aliran pendapatan yang konsisten 1 dengan melabur di dalam debentur-debentur patuh Syariah, instrumen pasaran wang dan penempatan deposit jangka pendek. Sebarang perubahan kepada objektif pelaburan memerlukan kelulusan daripada pemegang unit. Penanda Aras Dana Polisi Agihan Dana Kaedah Pembayaran Agihan Pendapatan 1 bulan Deposit Berjangka Tawarruq-I Bank Islam Malaysia Berhad selepas cukai korporat. Dana akan mengagihkan pendapatan 2 (jika ada) pada setiap suku tahun. Pengagihan pendapatan akan dilaburkan semula secara automatik. Oleh itu, pemegang unit akan menerima unit tambahan daripada pelaburan semula pengagihan pendapatan tersebut. Bayaran ke akaun bank pelabur atau pelaburan semula. 1 Dana mengagihkan pendapatan (jika ada) pada setiap suku tahun. 2 Pengagihan pendapatan akan dilaburkan semula secara automatik. Oleh itu, pemegang unit akan menerima unit tambahan daripada pelaburan semula pengagihan pendapatan tersebut. 15

16 1.2 Pencapaian bagi tahun berakhir 31 Ogos Kajian Pencapaian bagi BIMB Dana Al-Fakhim Bagi tempoh kewangan dalam kajian, BIMB Dana Al-Fakhim (Dana) mencatatkan pulangan sebanyak 3.03% berbanding pulangan penanda aras sebanyak 2.32%. Penanda aras terpilih prestasi Dana adalah berdasarkan kepada kadar 1-bulan Deposit Bertempoh-i Tawarruq Bank Islam. Strategi kami adalah secara konsistennya mengekalkan Dana diurus secara agak konservatif dengan matlamat utama memberikan pulangan lebih baik berbanding akaun pelaburan tradisional. Berikutan itu, Dana telah dapat menawarkan kestabilan kepada pelaburan prinsipal para pelabur selain menyediakan pendapatan pada setiap tempoh sukuan kepada para pelaburnya. Dalam tahun kewangan yang berakhir pada 31 Ogos 2017, Dana telah dapat memenuhi objektifnya untuk menyediakan aliran pendapatan tetap kepada para Pemegang Unit melalui pelaburan terutamanya dalam instrumen pasaran wang patuh Syariah. Sehingga akhir bulan Ogos 2017, Dana ini mempunyai pendedahan sebanyak 100% dalam instrumen pasaran wang patuh Syariah. Setakat ini, Dana terus diuruskan selari dengan objektifnya dengan melabur terutamanya dalam instrumen pasaran wang patuh Syariah. Jumlah NAB adalah RM17.78 juta pada 31 Ogos 2017 dan RM18.48 juta pada 31 Ogos NAB seunit Dana menurun sedikit kepada RM sehingga pada 31 Ogos 2017 daripada RM pada 31 Ogos Dana ini telah mengumumkan agihan pendapatan sebanyak 1.57 sen seunit pada tahun kewangan ini, bersamaan dengan hasil sebanyak 3.03% setahun. Bagi tahun kewangan berakhir pada 31 Ogos 2017, tidak terdapat sebarang perubahan ketara dalam hal ehwal pengurusan Dana dan tidak juga berlaku sebarang keadaan yang boleh menjejaskan kepentingan para pemegang unit sehingga tarikh Laporan Pengurus disediakan. 16

17 1.2.2 Jumlah pulangan dan purata jumlah pulangan bagi setiap tahun berakhir 31 Ogos 2017 Jangkamasa 1-Tahun Jangkamasa 3-Tahun Jangkamasa 5-Tahun BIMB Dana Al-Fakhim Jumlah Pulangan (%) Purata Jumlah Pulangan (%) Penanda Aras Jumlah Pulangan (%) Purata Jumlah Pulangan (%) Jumlah pulangan tahunan bagi 5 tahun kewangan yang lalu Tahun Kewangan BIMB Dana Al-Fakhim (%) Jumlah Pulangan Penanda Aras (%) 31 Ogos Ogos Ogos Ogos Ogos

18 Rajah 1: Pergerakan Dana Berbanding Penanda Aras Nota: Sumber Data : BIMB Investment Management Berhad Data disahkan oleh : Novagni Analytics & Advisory Sdn. Bhd. Penanda Aras :Kadar 1 bulan Deposit Berjangka Tawarruq-I Bank Islam Malaysia Berhad selepas cukai korporat Nota: 1. Jumlah Pulangan telah disahkan oleh Novagni Analytics & Advisor 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. 18

19 1.3 Ekonomi dan Kajian Pasaran Ekonomi Global Keluaran Dalam Negara Kasar (KDNK) Amerika Syarikat ('AS') berkembang sebanyak 2.6% pada suku kedua 2017 berbanding pertumbuhan 1.2% pada suku pertama 2017 dan 1.8% pada suku keempat KDNK yang berkembang pantas pada suku kedua 2017 dapat dilihat daripada peningkatan perbelanjaan kerajaan persekutuan dan pelaburan persediaan swasta walaupun diimbangi oleh penurunan dalam eksport. Kadar inflasi utama AS meningkat sebanyak 1.9% pada bulan Ogos 2017 berbanding 1.5% pada bulan September 2016 disebabkan berlakunya peningkatan kos dan harga gasolin apabila Taufan Harvey telah menyebabkan penutupan kilang penapis di pantai Teluk. Kadar pengangguran AS jatuh kepada 4.4% pada bulan Ogos 2017 daripada 5.0% pada bulan September 2016, disokong oleh peningkatan pendapatan, perbelanjaan pengguna dan pertumbuhan ekonomi. Ekonomi zon Euro berkembang sebanyak 0.6% pada suku kedua 2017 berbanding 0.5% pada suku pertama 2017 dan 0.6% pada suku keempat Pemulihan ekonomi zon Euro menyaksikan berlakunya peningkatan momentum manakala pengangguran telah menurun di sebalik kejatuhan kadar faedah yang teramat rendah diantara langkah-langkah lain yang dilaksanakan oleh Bank Pusat Eropah (ECB) untuk meningkatkan aktiviti ekonomi. Kadar inflasi tahunan zon Euro meningkat sebanyak 1.5% pada bulan Ogos 2017 daripada 0.4% pada bulan September 2016, didorong oleh prestasi pertumbuhan KDNK yang lebih baik di kawasan zon Euro. Kadar pengangguran di zon Euro jatuh kepada 9.1% pada bulan Julai 2017, merosot daripada 10.0% pada bulan September 2016 dan kekal berada pada paras terendah sejak bulan Julai China mengekalkan kadar pertumbuhan ekonominya sebanyak 6.9% pada suku kedua 2017, menyamai pertumbuhan pada suku pertama 2017 berikutan peningkatan dalam pengeluaran perindustrian dan penggunaan swasta dengan dibantu oleh pasaran hartanah yang kukuh dan pemulihan sektor eksport. (Sumbe: Bloomberg dan RHB Research Institute Sdn Bhd) 19

20 Dalam Negara Ekonomi Malaysia berkembang pantas sebanyak 5.8% pada suku kedua 2017 berbanding 5.6% pada suku pertama 2017 dan 4.5% pada suku keempat KDNK yang lebih kukuh dalam tempoh berkenaan adalah hasil peningkatan dalam penggunaan swasta dan eksport. Kadar utama inflasi di Malaysia pada bulan Ogos 2017 meningkat kepada 3.7% daripada 1.5% pada bulan September 2016, berikutan kos lebih tinggi bagi makanan dan minuman bukan alkohol, pengangkutan dan perumahan, sejajar dengan kenaikan lebih tinggi harga minyak mentah dan prestasi pertumbuhan KDNK yang lebih kukuh. Jawatankuasa Dasar Monetari Bank Negara Malaysia (MPC) mengekalkan Kadar Dasar Semalaman (OPR) pada paras 3.00% dalam mesyuaratnya yang diadakan pada bulan Julai bersesuaian dengan prospek pertumbuhan negara. Rizab antarabangsa Bank Negara berjumlah AS$100.5 bilion setakat pada 30 Ogos 2017 berbanding AS$97.7 bilion pada bulan September 2016 dengan terdapatnya peningkatan aliran masuk modal daripada pelaburpelabur institusi asing ke Malaysia. (Sumber: Bloomberg, Bank Negara Malaysia dan RHB Research Institute Sdn Bhd) Kajian Pasaran Pasaran Bon dan Pasaran Wang a) Global Pada bulan November 2016, hasil Perbendaharaan AS mula melonjak dengan jangkaan Presiden Donald Trump akan memulakan pengembangan fiskal. Sebelum pilihan raya, hasil bon perbendaharaan AS (UST) telah berdepan tekanan untuk mencatat peningkatan di mana penggubal dasar Rizab Persekutuan telah memberi isyarat akan pelaksanaan dasar kewangan yang lebih ketat dalam masa terdekat manakala pakar-pakar ekonomi telah membuat unjuran akan peningkatan pertumbuhan AS pada tahun

21 Peningkatan dalam hasil 2 tahun UST untuk berada di atas paras 1.3% pada akhir bulan Jun 2017 adalah dalam jangkaan memandangkan setakat ini terdapat dua kenaikan kadar Rizab Persekutuan AS. Akan tetapi, bon perbendaharaan AS mengukuh pada bulan Ogos 2017 dengan wujudnya permintaan terhadap pelaburan lebih selamat berikutan terdapat satu siri ketegangan geopolitik di mana Korea Utara mengancam untuk menyerang Guam dan melancarkan peluru berpandu balistik melintasi ruang udara Jepun. Walau bagaimanapun, dalam tempoh kewangan yang dikaji, hasil UST meningkat berbanding hasil pada 31 Ogos Rajah 2: Kadar Pulangan Perbendaharaan AS b) Dalam Negara Sumber : Jabatan Perbendaharaan AS, 31 Ogos 2017 Bon kedaulatan menguasai aktiviti pasaran bon tempatan apabila Sekuriti Kerajaan Malaysia (MGS) dan Terbitan Pelaburan Kerajaan (GII) mencatatkan jumlah dagangan pasaran sekunder sebanyak RM835.5 bilion bagi tahun kewangan dalam kajian. Hasil bon kerajaan dan bon korporat meningkat di keseluruhan keluk hasil selepas peningkatan kadar Dana Rizab Persekutuan AS pada bulan Jun 2017 dan pasaran menjangkakan Rizab Persekutuan AS akan meningkatkan Kadar Dana bank pusat itu pada separuh kedua tahun

22 Tempoh/ Tarikh Bon 3 Tahun Jadual 1: Kadar Pulangan Sukuk/ Bon Islam 31 Ogos 2016 (%) 31 Ogos 2016 (%) 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), 31 Ogos 2017 Rajah 3: Kadar Polisi Semalaman (OPR) Sumber: Bank Negara Malaysia (BNM), 31 Ogos

23 1.4 Tinjauan Pasaran dan Strategi Pasaran Sukuk dan Pasaran Wang Bergerak ke hadapan, MGS dan bon korporat dilihat akan berada dalam aliran menaik yang lebih tinggi berbanding paras puratanya pada setengah kedua tahun 2016 walaupun pada tahap sederhana. Keadaan ini berlaku di sebalik hasil bon berada di paras rendah dalam setengah pertama tahun 2017 kerana terdapat jangkaan berlaku beberapa kenaikan dalam pergerakan hasil berikutan prospek kenaikan kadar Rizab Persekutuan yang ketiga apabila AS terus mencatat pemulihan ekonomi. Asas-asas ekonomi Malaysia yang semakin baik akan menjadi penampan kepada sebarang kenaikan hasil yang mendadak. Pergerakan hasil dijangka meningkat secara tidak mendadak dalam masa yang mendatang apabila para pelabur lebih maklum tentang pendirian Trump dan bank-bank pusat menjadi lebih telus apabila menyatakan arah dasar yang dikehendaki. Jawatankuasa Dasar Monetari Bank Negara Malaysia (MPC) mengekalkan kadar dasar semalaman (OPR) pada paras 3.00% bagi mesyuarat yang ke-6 secara berturut-turut pada 13 Julai Memandang ke hadapan, BNM dijangka mengekalkan OPR pada kadar 3.00% untuk tempoh yang seterusnya dalam tahun Dasar monetari ini dipercayai tidak akan diketatkan lagi dalam bulan-bulan berikutnya pada tahun ini kerana kadar inflasi dijangka kembali normal selepas ini memandangkan pertumbuhan ekonomi baru sahaja meningkat dengan Ringgit Malaysia memperlihatkan kestabilannya. Sebaliknya, pertumbuhan ekonomi domestik yang lebih kukuh ditambah pula dengan kenaikan kadar faedah yang lebih agresif dan pelan untuk mengurangkan lembaran imbangan Rizab Persekutuan di AS, berkemungkinan akan mengehadkan skop bagi BNM mengurangkan kadar faedah dalam negara. 1.5 Peruntukan Aset Pada 31 Ogos BIMB Dana Al-Fakhim PELABURAN DALAM SEKURITI HUTANG SECARA ISLAM: TUNAI DAN PELABURAN JANGKA PENDEK: 2017 (%) 2016 (%) 2015 (%)

24 1.6 Lain-Lain Data Prestasi Bagi Tahun Berakhir 31 Ogos BIMB Dana Al-Fakhim Harga Unit (RM) NAB tertinggi seunit dalam setahun NAB terendah seunit dalam setahun Nilai Asset Bersih (NAB) dan Unit Dalam Edaran (UDE) pada Akhir Tahun Jumlah NAB (RM) 17,777,920 18,483,152 16,920,044 Unit Dalam Edaran (UDE) 34,368,778 35,718,525 32,772,540 NAB seunit (RM) * Jumlah Pulangan Dana (%) (a) Pertumbuhan Modal (%) (b) Pulangan Pendapatan (%) (c) Jumlah Pulangan Dana (%) Jumlah Agihan Kasar seunit (Sen) setahun Jumlah Agihan Bersih seunit (Sen) setahun Suku Pertama Nilai Aset Bersih sebelum Pengagihan (RM) Nilai Aset Bersih selepas Pengagihan (RM)* Tarikh Pengagihan Suku Kedua 30 November November November 2014 Nilai Aset Bersih sebelum Pengagihan (RM) Nilai Aset Bersih selepas Pengagihan (RM)* Tarikh Pengagihan Suku Ketiga 28 Februari Februari Februari 2015 Nilai Aset Bersih sebelum Pengagihan (RM) Nilai Aset Bersih selepas Pengagihan (RM)* Tarikh Pengagihan 31 Mei Mei 2016 * Harga NAB selepas pengagihan pendapatan. 29 Mei

25 BIMB Dana Al-Fakhim (sambungan) Suku Keempat Nilai Aset Bersih sebelum Pengagihan (RM) Nilai Aset Bersih selepas Pengagihan (RM)* Tarikh Pengagihan 30 Ogos Ogos Ogos 2015 Nisbah Perbelanjaan Pengurusan (d) (NPP) (%) Nisbah Pusing Ganti Portfolio (e) (Kali) * Harga NAB selepas pengagihan pendapatan. Nota:- a) Pulangan ke atas Dana = Harga seunit (pada akhir tahun) - 1 Harga seunit (pada awal tahun) b) Penambahan Modal = Pulangan Ke atas Dana Pulangan Pendapatan c) Pulangan Pendapatan = {Pengagihan Pendapatan Se Unit / NAB se unit pada awal tahun} x 100 d) Nisbah Perbelanjaan Pengurusan e) Nisbah Pusing Ganti Portfolio = Ia dikira dengan mengambil jumlah perbelanjaan pengurusan sepertimana yang dinyatakan sebagai peratusan tahunan daripada jumlah purata Nilai Aset Bersih Dana. = Ia dikira dengan mengambil purata jumlah perolehan dan pelupusan pelaburan dalam Dana bagi tempoh tahunan dibahagi dengan purata Nilai Aset Bersih Dana yang dikira pada asas harian 25

26 1.7 Pecahan Pegangan Unit pada 31 Ogos 2017 BIMB Dana Al-Fakhim Saiz Dipegang Bilangan Pemegang Unit Bilangan Unit Pegangan Bilangan % Bilangan % 5,000 dan ke bawah , ,001 hingga 10, , ,001 hingga 50, , ,001 hingga 500, , ,001 dan ke atas * ,781, ,368, Unit yang dipegang oleh Pengurus Jumlah Keseluruhan Dana ,368, * Akaun penama juga termasuk di bawah kategori ini 1.8 Polisi Rebat dan Komisyen Bukan Tunai Sebarang rebat broker saham yang diterima oleh Pengurus akan dimasukkan ke dalam akaun Dana. Mana-mana komisen ringan (bukan tunai) yang diterima daripada broker dalam bentuk perkhidmatan penyelidikan dan khidmat nasihat bertujuan membantu proses membuat keputusan berkaitan dengan pelaburan Dana boleh disimpan oleh Pengurus. Pengurus menerima komisen bukan tunai daripada broker dalam bentuk perkhidmatan penyelidikan dan khidmat nasihat bagi tahun dalam kajian. Bagi dan bagi pihak Pengurus BIMB INVESTMENT MANAGEMENT BERHAD Tarikh: 26 Oktober 2017 Nota: Laporan ini telah diterjemahkan daripada laporan asal (dalam Bahasa Inggeris). Jika terdapat perbezaan, sila rujuk kepada laporan Bahasa Inggeris 26

27 2.0 Trustee s Report AFFIN HWANG TRUSTEE BERHAD ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2017 To the Unit Holders of BIMB Dana Al-Fakhim We have acted as Trustee of BIMB Dana Al-Fakhim ( the Fund ) for the year ended 31 August To the best of our knowledge, BIMB Investment Management Berhad ( the Manager or the Management Company ) has managed the 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; 3. The creation and cancellation of units of the Fund are carried out in accordance with the Deed and any regulatory requirement; and 4. The income distributions by the Fund are relevant and reflect the investment objective of the Fund. For Affin Hwang Trustee Berhad.. Tan Ping Ying Authorised Signatory Wong Chiew Leng Authorised Signatory Date: 26 October

28 3.0 Shariah Committee s Report ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2017 To the Unit Holders of BIMB Dana Al-Fakhim ب س م ٱهلل ٱلر ح م ن ٱلر ح يم We have acted as the Shariah Committee of BIMB Dana Al-Fakhim. 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- Fakhim in accordance with Shariah principles and complied with applicable guidelines, rulings or decisions issued by the Securities Commission pertaining to Shariah matters for the year ended 31 August In addition, we also confirm that the investment portfolio of BIMB Dana Al-Fakhim 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: 26 October

29 4.0 Directors Declaration ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2017 To the Unit Holders of BIMB Dana Al-Fakhim We, Dato Ghazali Bin Awangt and Najmuddin Bin Mohd Lutfi, being two of the directors of the Manager, BIMB Investment Management Berhad, for BIMB Dana Al-Fakhim, do hereby state that in our opinion, the accompanying Statement of Financial Position, Statement of Profit or Loss and other Comprehensive Income, Statement of Changes in Net Asset Value and Statement of Cash Flows are drawn up so as to give true and fair view of the Statement of Financial Position of the Fund as at 31 August 2017 and Statement of Profit or Loss and other Comprehensive Income, Statement of Changes in Net Asset Value and Statement of Cash Flows for the year ended on that date. For and on behalf of the Board of Directors, DATO GHAZALI BIN AWANG (Non Executive Independent Director) NAJMUDDIN BIN MOHD LUTFI (Chief Executive Officer) Date: 26 October

30 5.0 Independent Auditor s Report Independent Auditors Report to the Unitholders of BIMB Dana Al-Fakhim (Established in Malaysia) Report on the Financial Statements Opinion We have audited the financial statements of BIMB Dana Al-Fakhim ( the Fund ), which comprise the statement of financial position as at 31 August 2017, and the statement of profit or loss and other comprehensive income, statement of changes in net asset value and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 33 to 54. In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Fund as at 31 August 2017, and of its financial performance and its cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and Securities Commission s Guidelines on Unit Trust Funds in Malaysia. Basis for Opinion We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence and Other Ethical Responsibilities We are independent of the Fund in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants ( By-Laws ) and the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants ( IESBA Code ), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code. Information Other than the Financial Statements and Auditors Report Thereon The Manager of the Fund is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements of the Fund and our auditors report thereon. Our opinion on the financial statements of the Fund does not cover the annual report and we do not express any form of assurance conclusion thereon. 30

31 Information Other than the Financial Statements and Auditors Report Thereon (continued) In connection with our audit of the financial statements of the Fund, our responsibility is to read the annual report and, in doing so, consider whether annual report is materially inconsistent with the financial statements of the Fund or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of the annual report, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Manager and Trustee for the Financial Statements The Manager of the Fund is responsible for the preparation of financial statements of the Fund that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and Securities Commission s Guidelines on Unit Trust Funds in Malaysia. The Manager is also responsible for such internal control as the Manager determine is necessary to enable the preparation of financial statements of the Fund that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Fund, the Manager is responsible for assessing the ability of the Fund to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Manager either intend to liquidate the Fund or to cease operations, or have no realistic alternative but to do so. The Trustee is responsible for ensuring that the Manager maintains proper accounting and other records as necessary to enable true and fair presentations of these financial statement. Auditors Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements of the Fund as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: 31

32 Auditors Responsibilities for the Audit of the Financial Statements (continued) Identify and assess the risk of material misstatement of the financial statements of the Fund, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Manager. Conclude on the appropriateness of the Manager s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Fund to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the financial statements of the Fund or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Fund to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements of the Fund, including the disclosures, and whether the financial statements of the Fund represents the underlying transactions and events in a manner that gives a true and fair view. We communicate with the Manager regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Other matter This report is made solely to the unitholders of the Fund, as a body, in accordance with Securities Commission s Guidelines on Unit Trust Funds in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report. KPMG Desa Megat PLT (LLP LCA & AF 0759) Chartered Accountants Adrian Lee Lye Wang Approval Number: 2679/11/17(J) Chartered Accountant Petaling Jaya, Selangor Date: 26 October

33 6.0 Financial Statements (Audited) BIMB Dana Al-Fakhim 6.1 Statement of Financial Position as at 31 August 2017 Note RM RM Assets Islamic debt securities 4-2,011,315 Short term investments 5 16,818,208 15,139,367 Amount due from Manager 1,226 - Other receivables 98, ,152 Cash and cash equivalents 6 889,740 1,150,552 Total assets 17,807,463 18,532,386 Liabilities Amount due to Manager 7,911 8,554 Other payables 21,632 40,680 Total liabilities 29,543 49,234 Net asset value 17,777,920 18,483,152 Unitholders fund Unitholders capital 7 17,694,589 18,400,275 Retained profits 83,331 82,877 Net asset value attributable to unitholders 17,777,920 18,483,152 Number of units in circulation 7 34,368,778 35,718,525 Net asset value per unit Ex distribution (sen) The notes on pages 37 to 54 are an integral part of these financial statements. 33

34 BIMB Dana Al-Fakhim 6.2 Statement of Profit or Loss and Other Comprehensive Income for the financial year ended 31 August 2017 Note RM RM Income Income from Islamic debt securities 35, ,317 Income from short term investments 656, ,129 Hibah from Al-Wadiah account Net unrealised (loss)/gain from financial instruments at fair value through profit or loss (2,879) 6, , ,963 Less: Amortisation of premium (8,436) (28,309) Gross income 681, ,654 Expenses Manager s fee 8 94,102 96,444 Trustee s fee 9 3,764 3,858 Audit fee 13,000 11,000 Tax agent s fee 2,000 2,000 Administrative expenses 5,788 9, , ,842 Net income before taxation 562, ,812 Tax expense Net income after taxation 562, ,812 Other comprehensive income for the year - - Total comprehensive income for the year 562, ,812 Total comprehensive income for the year consist of: Realised amount 565, ,798 Unrealised amount (2,879) 6, , ,812 The notes on pages 37 to 54 are an integral part of these financial statements. 34

35 BIMB Dana Al-Fakhim 6.3 Statement of Changes in Net Asset Value for the financial year ended 31 August 2017 Unitholders Retained capital profits Total RM RM RM As at 1 September ,886,718 33,326 16,920,044 Creation of units via cash 3,786,622-3,786,622 Reinvestment of distributions 585, ,261 Cancellation of units (2,858,326) - (2,858,326) Distributions - (585,261) (585,261) Total attributable to unitholders 1,513,557 (585,261) 928,296 Total comprehensive income for the year - 634, ,812 As at 31 August 2016/1 September ,400,275 82,877 18,483,152 Creation of units via cash 1,451,728-1,451,728 Reinvestment of distributions 561, ,945 Cancellation of units (2,719,359) - (2,719,359) Distributions - (561,945) (561,945) Total attributable to unitholders (705,686) (561,945) (1,267,631) Total comprehensive income for the year - 562, ,399 As at 31 August ,694,589 83,331 17,777,920 The notes on pages 37 to 54 are an integral part of these financial statements. 35

36 BIMB Dana Al-Fakhim 6.4 Statement of Cash Flows for the financial year ended 31 August RM RM Cash flows from operating activities Purchase of Islamic debt securities - (1,611,610) Maturity/Proceed from sale of Islamic debt securities 2,000,000 1,100,000 Purchase of short term investments (60,381,988) (111,090,476) Maturity from short term investments 58,703, ,594,239 Income from Islamic debts securities and short term investments 825, ,067 Management fee paid (94,708) (94,397) Trustee fee paid (3,788) (3,781) Audit fee paid (22,000) - Tax agent fee paid (4,500) - Payment for other administrative expenses (13,348) (6,061) Net cash generated from/(used in) operating activities 1,008,045 (2,495,019) Cash flows from financing activities Cash receipt for creation of units 1,450,502 4,918,327 Cash payment for cancellation of units (2,719,359) (2,858,326) Net cash (used in)/generated from financing activities (1,268,857) 2,060,001 Net decrease in cash and cash equivalents (260,812) (435,018) Cash and cash equivalents at 1 September 1,150,552 1,585,570 Cash and cash equivalents at 31 August 889,740 1,150,552 Cash and cash equivalents comprise: Cash at bank 95, ,552 Short term placements 794,732 1,000, ,740 1,150,552 The notes on pages 37 to 54 are an integral part of these financial statements. 36

37 BIMB Dana Al-Fakhim 6.5 Notes to the Financial Statements 1. Information on the Fund BIMB Dana Al-Fakhim (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 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 26 October 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 Commissions Guidelines on Unit Trust Funds ( Guidelines ) in Malaysia. The following are accounting standards, amendments and interpretations that have been issued by the Malaysian Accounting Standards Board ( MASB ) but have not been adopted by the Fund: MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2017 Amendments to MFRS 12, Disclosure of Interests in Other Entities (Annual Improvements to MFRS Standards Cycle) Amendments to MFRS 107, Statement of Cash Flows Disclosure Initiative Amendments to MFRS 112, Income Taxes Recognition of Deferred Tax Assets for Unrealised Losses 37

38 2. Basis of preparation (continued) (a) Statement of compliance (continued) MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2018 MFRS 9, Financial Instruments (2014) MFRS 15, Revenue from Contracts with Customers Clarifications to MFRS 15, Revenue from Contracts with Customers IC Interpretation 22, Foreign Currency Transactions and Advance Consideration Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements to MFRS Standards Cycle) Amendments to MFRS 2, Share-based Payment Classification and Measurement of Share-based Payment Transactions Amendments to MFRS 4, Insurance Contracts Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts Amendments to MFRS 128, Investments in Associates and Joint Ventures (Annual Improvements to MFRS Standards Cycle) Amendments to MFRS 140, Investment Property Transfers of Investment Property MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2019 MFRS 16, Leases MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2021 MFRS 17, Insurance Contracts MFRSs, Interpretations and amendments effective for a date yet to be confirmed Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The Fund plans to apply the abovementioned accounting standards, amendments and interpretations, where applicable: from the annual period beginning on 1 September 2017 for those amendments that are effective for annual periods beginning on or after 1 January 2017; from the annual period beginning on 1 September 2018 for those accounting standards, amendments or interpretations that are effective for annual periods beginning on or after 1 January 2018; 38

39 2. Basis of preparation (continued) (a) Statement of compliance (continued) from the annual period beginning on 1 September 2019 for the accounting standard that is effective for annual periods beginning on or after 1 January from the annual period beginning on 1 September 2021 for the accounting standard that is effective for annual periods beginning on or after 1 January The initial application of the accounting standards, amendments or interpretations are not expected to have any material financial impacts to the current year and prior year financial statements of the Fund, except as mentioned below: (i) MFRS 9, Financial Instruments MFRS 9 replaces the guidance in MFRS 139, Financial Instruments: Recognition and Measurement on the classification and measurement of financial assets and financial liabilities, and on hedge accounting.the Fund is currently assessing the financial impact that may arise from the adoption of MFRS 9. (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 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 years 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. 39