Fund Information Fund Name (PCIF) Fund Category Equity (Shariah-compliant) Fund Investment Objective To achieve capital growth over the medium to long-term period by investing in a portfolio of Shariah-compliant investments in the greater China region and the balance in the domestic market. Fund Performance Benchmark The benchmarks of the Fund and their respective percentages are 50% S&P Shariah BMI Hong Kong and China H Shares Index, 30% S&P Shariah BMI Taiwan Index and 20% FTSE Bursa Malaysia Hijrah Shariah Index. The S&P Shariah BMI Hong Kong and China H Shares Index and S&P Shariah BMI Taiwan Index are products of S&P Dow Jones Indices LLC ( SPDJI ), and have been licensed for use by Public Mutual Berhad. Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); Standard & Poor s, S&P and Dow Jones are trademarks of the SPDJI; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Public Mutual Berhad. Public Mutual Berhad s PCIF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P Shariah BMI Hong Kong and China H Shares Index and S&P Shariah BMI Taiwan Index. The PCIF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited ( FTSE ) or by Bursa Malaysia Berhad ( BURSA MALAYSIA ) or by the London Stock Exchange Group companies (the LSEG ) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA HIJRAH SHARIAH INDEX ( the Index ), and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. FTSE, FT-SE and Footsie are trade marks of LSEG and are used by FTSE under licence. BURSA MALAYSIA is a trade mark of BURSA MALAYSIA. Fund Distribution Policy Incidental Foreign Exchange Rate With effect from 5 January 2017, all foreign securities and assets are converted into Malaysian Ringgit ( MYR ) based on the bid exchange rate quoted by Thomson Reuters at United Kingdom time 4:00 p.m. the same day. Revision of Transfer Charges and Switching Fees with effect from 1 January 2018 With effect from 1 January 2018, transfer charges and switching fees for switching transactions made after 90 days will be revised as follows: i) Administration fee of up to RM50 will be charged for each transfer transaction. ii) Switching fee of up to RM50 will be imposed for switching transactions out of the fund.
Fund Information Fund Performance Breakdown of Unitholdings of PCIF as at 31 May 2017 Size of holdings No. of % of No. of units unitholders unitholders held (million) 5,000 and below 9,099 21.21 34 5,001 to 10,000 7,157 16.69 54 10,001 to 50,000 18,969 44.23 458 50,001 to 500,000 7,474 17.43 894 500,001 and above 188 0.44 208 Total 42,887 100.00 1,648 Note: Excluding Manager s Stock. Fund Performance Average Total Return for the Following Years Ended 31 May 2017 Average Total Return of PCIF (%) 1 Year 22.17 3 Years 13.66 5 Years 14.22 Annual Total Return for the Financial Years Ended 30 November Year 2016 2015 2014 2013 2012 PCIF (%) 8.83 10.23 12.25 14.35 4.22 The calculation of the above returns is based on computation methods of Lipper. Notes: 1. Total return of the Fund is derived by this formulae: End of Period FYCurrent Year NAV per ( End of Period FYPrevious Year NAV per unit) (Adjusted for unit split and distribution paid out for the period) The above total return of the Fund was sourced from Lipper. 2. Average total return is derived by this formulae: 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. - 1 Other Performance Data for the Past Three Financial Periods Ended 31 May 2017 2016 2015 Unit Prices (MYR) Highest NAV per unit for the period 0.2866 0.2467 0.2600 Lowest NAV per unit for the period 0.2524 0.2172 0.2122 Net Asset Value (NAV) and Units in Circulation (UIC) as at the End of the Period Total NAV (MYR 000) 468,833 304,294 381,558 UIC (in 000) 1,649,963 1,293,963 1,535,057 NAV per unit (MYR) 0.2841 0.2352 0.2486 Total Return for the Period (%) 7.98-3.80 12.08 Capital growth (%) 8.24-3.39 12.44 Income (%) -0.24-0.42-0.32 Management Expense Ratio (%) 1.75 1.77 1.75 Portfolio Turnover Ratio (time) 0.18 0.25 0.27 Notes: Management Expense Ratio is calculated by taking the total management expenses expressed as an annual percentage of the Fund s average net asset value. Portfolio Turnover Ratio is calculated by taking the average of the total acquisitions and disposals of the investments in the Fund for the period over the average net asset value of the Fund calculated on a daily basis. The Portfolio Turnover Ratio for the financial period 2017 dropped to 0.18 time from 0.25 time in the previous financial period on account of lower level of rebalancing activities performed by the Fund during the period. Asset Allocation for the Past Three Financial Periods As at 31 May (Per Cent of Net Asset Value) 2017 2016 2015 % % % EQUITY SECURITIES Quoted Malaysia Basic Materials 0.7 0.9 - Communications 2.9 2.4 3.9 Consumer, Non-cyclical 1.9 2.5 1.7 Diversifi ed 1.8 0.7 0.4 Energy - - 1.2 Industrial 0.5 1.0 1.2 Utilities 2.5 4.3 3.1 10.3 11.8 11.5 Outside Malaysia Hong Kong Communications 17.2 19.1 17.4 Consumer, Cyclical 4.0 2.9 4.7 Consumer, Non-cyclical 1.3 1.8 5.4 Energy 2.3-8.7 Financial 2.4 4.2 5.8
Fund Performance Manager s Report Asset Allocation for the Past Three Financial Periods (cont d) As at 31 May (Per Cent of Net Asset Value) 2017 2016 2015 % % % Hong Kong (cont d) Industrial 10.7 7.7 6.1 Technology 0.4 0.2 - Utilities 2.2 1.6 1.7 40.5 37.5 49.8 Taiwan Basic Materials 2.3 1.5 1.1 Communications 3.7 5.2 4.5 Consumer, Cyclical 1.6 0.9 - Energy 0.5 - - Industrial 3.4 7.1 9.2 Technology 10.6 11.7 12.5 22.1 26.4 27.3 United States Communications 8.9 4.7 5.3 TOTAL QUOTED EQUITY SECURITIES 81.8 80.4 93.9 COLLECTIVE INVESTMENT FUNDS Quoted Outside Malaysia Hong Kong Financial 2.4 1.6 1.6 TOTAL QUOTED COLLECTIVE INVESTMENT FUNDS 2.4 1.6 1.6 SHARIAH-BASED PLACEMENTS WITH FINANCIAL INSTITUTIONS 11.7 6.4 3.4 OTHER ASSETS & LIABILITIES 4.1 11.6 1.1 Overview This Interim Report covers the fi nancial period from 1 December 2016 to 31 May 2017. (PCIF or the Fund) seeks to achieve capital growth over the medium to long-term period by investing in a portfolio of Shariahcompliant investments in the greater China region and the balance in the domestic market. For the financial period under review, the Fund registered a return of +7.98% as compared to its Benchmark s return of +8.41%. The Fund s Shariahcompliant equity portfolio registered a return of +10.35% while its Islamic money market portfolio registered a return of +1.47% during the fi nancial period under review. A detailed performance attribution analysis is provided in the sections below. For the fi ve fi nancial years ended 31 May 2017, the Fund registered a return of +71.14% as compared to its Benchmark s return of +84.43% over the same period. Returns from Start of Period 100% 80% 60% 40% 20% 0% Performance of PCIF from 31 May 2012 to 31 May 2017 PCIF BENCHMARK -20% 2012 2013 2014 2015 2016 2017 The Fund s Benchmark is a composite index of 50% S&P Shariah BMI Hong Kong and China H Shares Index, 30% S&P Shariah BMI Taiwan Index and 20% FTSE Bursa Malaysia Hijrah Shariah Index. Effect of Distribution Reinvestment on Portfolio Exposures There were no distributions declared for the period ended 31 May 2017. Change in Portfolio Exposures from 30-Nov-16 to 31-May-17 Average 30-Nov-16 31-May-17 Change Exposure Shariah-compliant Equities & Related Securities 82.0% 84.2% +2.2% 84.94% Islamic Money Market 18.0% 15.8% -2.2% 15.06%
Manager s Report Manager s Report Returns Breakdown by Asset Class Market / Returns On Benchmark Benchmark Average Attributed Investments Returns Index Used Exposure Returns Shariahcompliant Equities & Related Securities 10.35% 8.41% Benchmark 84.94% 8.79% Islamic Money Market 1.47% 1.63% 1M-IIMMR 15.06% 0.22% less: Expenses -1.03% Total Net Return for the Period 7.98% 1M-IIMMR = 1-Month Islamic Interbank Money Market Rate Shariah-compliant Equity Portfolio Review For the fi nancial period under review, the Fund s Shariah-compliant equity portfolio registered a return of +10.35% and outperformed its equity Benchmark s return of +8.41%. The Fund s Shariah-compliant equity portfolio outperformed the equity Benchmark as the Fund s holdings of selected stocks in the Industrial and Communications sectors outperformed the broader market during the financial period under review. The Fund commenced the financial period under review with a Shariahcompliant equity exposure of 82.0% and subsequently increased its Shariahcompliant equity exposure to above 85% in late December 2016 to capitalise on Shariah-compliant investment opportunities in the domestic and greater China markets. The Fund subsequently reduced its Shariah-compliant equity exposure to 84.2% by the end of the financial period under review to lock in profits on selected Shariah-compliant equity investments. Based on an average Shariah-compliant equity exposure of 84.94%, the Shariahcompliant equity portfolio is deemed to have registered a return of +8.79% to the Fund as a whole for the financial period under review. A full review of the performance of the equity markets is tabled in the following sections. Country Allocation In terms of country allocation within the Shariah-compliant equity portfolio, the Fund s Shariah-compliant equity investment in Malaysia accounted for 10.3% of the Net Asset Value (NAV) of the Fund. Other than Malaysia, the remaining 3 countries accounted for 73.9% of the NAV of the Fund and 87.8% of the Fund s Shariah-compliant equity portfolio. The weightings of the 3 countries excluding Malaysia are in the following order: Hong Kong (42.9%), Taiwan (22.1%) and United States (8.9%). Islamic Money Market Portfolio Review During the fi nancial period under review, the Fund s Islamic money market portfolio, which was invested primarily in Islamic deposits, yielded a return of +1.47%. In comparison, the 1-Month Islamic Interbank Money Market Rate (1M-IIMMR) registered a return of +1.63% over the same period. During the fi nancial period under review, the Fund s exposure to Islamic money market investments decreased from 18.0% to 15.8% as funds were mobilised into Shariah-compliant equity investments. Based on an average exposure of 15.06%, the Islamic money market portfolio is estimated to have contributed +0.22% to the Fund s overall return for the fi nancial period under review. Stock Market Review Commencing the fi nancial period under review at 76.74 points, the S&P Hong Kong and China H Shares Shariah Index (S&P HKCSI) entered a consolidation phase in November and December 2016 following the unexpected outcome of the U.S. presidential election and concerns over capital controls in China. The S&P HKCSI subsequently rebounded in tandem with the appreciation of the Renminbi in January 2017. Supported by improving liquidity in China and a better global macroeconomic outlook, the Index continued to rally further. The S&P HKCSI closed at 87.11 points to register a gain of 13.52% (+8.79% in Ringgit terms) for the fi nancial period under review. S&P Shariah BMI Hong Kong and China H Shares Index (30 November 2016-31 May 2017) Index 90% 85% 80% 75% 70% 65% Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Commencing the fi nancial period under review at 3,625.34 points, the S&P Taiwan Shariah Index (S&P TSI) pulled back briefl y in December 2016 following a hike in the U.S. Federal funds rate. Driven by expectations that Apple s new iphone 8 model would be launched in the second half of 2017, the S&P TSI trended up in the fi rst 5 months of 2017. The S&P TSI closed at 3,910.39 points in May 2017 to register a gain of 7.86% (+9.38% in Ringgit terms) for the financial period under review.
Manager s Report Manager s Report Commencing the financial period under review at 11,901.19 points, the FTSE Bursa Malaysia EMAS Shariah (FBMS) Index trended up in December 2016 in tandem with stable oil prices and buoyant global markets. The Index moved higher in January 2017 amid firmer regional currencies and stable oil prices. After some profi t-taking activities towards the end of February, the Index rebounded and continued its uptrend in March and April, underpinned by sustained buying interest. The FBMS Index rose further in May to touch a 2-year intraday high of 13,126.04 points in mid-may 2017 before retracing to close at 12,804.02 points and register a gain of 7.59% for the financial period under review. Islamic Money Market Review The 1M-IIMMR decreased from 3.49% to 3.19%, averaging at 3.29% during the fi nancial period under review. Economic Review China s GDP growth expanded from 6.7% in 2016 to 6.9% in 1Q 2017, driven by fi rmer growth in the industrial sector. Industrial sector growth increased from 6.0% in 2016 to 6.5% in 1Q 2017 as manufacturing activities picked up. Led by higher new orders and production levels, China s manufacturing Purchasing Managers Index (PMI) rose to 51.4 points in the first five months of 2017 compared to 50.3 points for the whole of 2016. Meanwhile, growth in China s fi xed-asset investment expanded at a faster pace of 8.9% in the fi rst four months of 2017 versus 8.1% in 2016. China s exports grew by 8.1% in the first four months of 2017 compared to a contraction of 7.7% in 2016 on the back of higher demand from the U.S. and Asia. Over the same period, imports increased by 20.7% compared to a decline of 5.5% due to higher commodity imports. China s cumulative trade surplus narrowed to US$104 billion in the first four months of 2017 from US$150 billion a year ago. To support China s economic activities, the People s Bank of China (PBoC) maintained its lending rate at 4.35%. China s infl ation rate softened to 1.4% in the fi rst four months of 2017 from 2.0% in 2016 amid lower food prices. Residential property prices, as measured by average sales price indices of new homes in 70 large and medium-sized cities, rose by 10.3% in the first four months of 2017 following a 6.2% increase in 2016. To prevent overheating of property prices in selected cities such as Shanghai and Shenzhen, the Chinese government implemented tightening measures in March 2016. These tightening measures were further expanded to more provincial cities and other smaller cities from late August 2016 to May 2017. The Chinese Renminbi was included in the International Monetary Fund s Special Drawing Rights (SDR) basket effective 1 October 2016. Driven by higher consumer spending and export growth, Hong Kong s GDP growth accelerated from 2.0% in 2016 to 4.3% in 1Q 2017. Meanwhile, the infl ation rate eased to 0.9% in the fi rst four months of 2017 from 2.4% in 2016 due to moderating food and housing costs. To curb elevated residential property prices, Hong Kong s government introduced additional tightening measures in May 2017. Taiwan s GDP growth gained pace from 1.5% in 2016 to 2.6% in 1Q 2017 amid higher investment spending and export growth. Taiwan s infl ation rate eased to 0.6% in the fi rst four months of 2017 from 1.4% in 2016 on the back of lower food prices. The Bank of Taiwan left its discount rate unchanged at 1.375% to support domestic demand. Malaysia s GDP growth strengthened from 4.2% in 2016 to 5.6% in 1Q 2017 due to of higher domestic demand and export growth. Growth in the services sector edged up from 5.6% in 2016 to 5.8% in 1Q 2017. Meanwhile, growth in manufacturing activities increased from 4.4% to 5.6% over the same period. Malaysia s infl ation rate rose to 4.3% in the fi rst four months of 2017 from 2.1% in 2016 amid higher transportation costs arising from elevated fuel prices. Bank Negara Malaysia (BNM) maintained the Overnight Policy Rate (OPR) at 3.00% to support economic activities. Led by higher investment spending and export growth, U.S. GDP growth rose from 1.6% in 2016 to 2.0% in 1Q 2017. Investment spending increased by 2.1% in 1Q 2017 compared to a contraction of 1.6% in 2016 due to higher investment in equipment. Meanwhile, export growth expanded to 3.1% in 1Q 2017 from 0.4% in 2016. At the Federal Open Market Committee (FOMC) meeting in May 2017, the Federal Reserve maintained the Federal funds rate target range at 0.75%-1.00%. The FOMC members stated that job gains were solid and the slower economic growth registered in 1Q 2017 was likely to be temporary. Eurozone GDP growth was sustained at 1.7% in 1Q 2017 compared to a similar growth rate in 2016 on the back of resilient economic activities in Germany. At its monetary policy meeting on 27 April 2017, the European Central Bank (ECB) kept its main refi nancing and deposit rates at 0.00% and -0.40% respectively. The ECB extended its quantitative-easing program from end-march 2017 until the end of 2017. However, it reduced the monthly pace of bond-buying from 80 billion to 60 billion with effect from April 2017. In a referendum held on 23 June 2016, British voters voted in favour of exiting the European Union (EU). The United Kingdom (U.K.) formally notified its exit from the EU under Article 50 on 29 March 2017, which commences a two-year process of trade negotiations with the EU. Outlook and Investment Strategy After trading on a mixed note in 1H 2016, global and regional markets strengthened in 2H 2016 amid an improved outlook for the U.S. and global economies. Global and regional equity markets trended higher in the fi rst fi ve months of 2017 on expectations that the global economy would grow at a resilient pace. Looking ahead, the performance of equity markets will depend on the economic growth momentum and market valuations of the U.S., Europe and the Asia Pacific region.
Manager s Report Manager s Report U.S. economic growth is projected to gain pace from 1.6% in 2016 to 2.2% in 2017, driven by a recovery in investment spending. In the Eurozone, economic growth is envisaged to be resilient at 1.7% in 2017 compared to a similar growth rate in 2016 amid a fi rm outlook for export growth. China s GDP growth is estimated to marginally ease from 6.7% in 2016 to 6.6% in 2017 as economic growth continues to moderate due to structural reforms to transform the country to a more consumption and service-driven economy. Consumer spending is expected to be underpinned by the government s ongoing policies to boost household incomes, which include the lowering of import tariffs on popular consumer goods. Meanwhile, China s inflation rate is projected to be sustained at 2.0% in 2017 compared to a similar rate in 2016. The Chinese government may unveil more stimulus measures such as further fiscal spending in the event the economy grows at a weaker-than-expected pace. Hong Kong s GDP growth is expected to inch higher from 2.0% in 2016 to 2.1% in 2017 amid a recovery in external demand. Going forward, the Hong Kong government is anticipated to maintain its tightening stance on the residential property market. However, ample liquidity, demand for better living standards and resilient economic growth should lend support to Hong Kong s property market over the long term. Meanwhile, Taiwan s GDP growth is projected to strengthen from 1.5% in 2016 to 2.0% in 2017 as investment spending is envisaged to improve further. The Taiwanese economy is highly dependent on exports, which account for about 73% of GDP. Thus, its growth outlook would depend on the strength of the recovery in its key export markets such as China, the U.S. and Europe. On the domestic front, Malaysia s GDP growth is projected to edge up from 4.2% in 2016 to 4.6% in 2017 amid an anticipated strengthening of domestic demand. This will be supported by sustained consumer and investment spending backed by government measures to increase disposable incomes and the ongoing implementation of infrastructure projects. The budget deficit is projected to widen to RM40.3 billion (3.0% of GDP) in 2017 from RM38.7 billion (3.1% of GDP) in 2016, with revenue expanding by 3.4% to RM219.7 billion. Meanwhile, operating expenditure and net development expenditure for 2017 are expected to register growth rates of 3.7% to RM214.8 billion and 2.4% to RM45.3 billion respectively. Based on closing prices as at end-may 2017, the China H shares market was trading at an estimated P/E ratio of about 8.5x compared to its 10-year average of 10.8x. Meanwhile, the Malaysia and Taiwan markets were trading at prospective P/E ratios of 16.6x and 14.1x respectively versus their 10-year averages of 16.4x and 15.3x. Given the above factors, the Fund will continue to rebalance its investment portfolio accordingly with the objective of achieving capital growth over the medium to long-term period by investing in a portfolio of Shariah-compliant investments in the greater China region and the balance in the domestic market. Notes: Q = Quarter H = Half Policy on Soft Commissions The management company may receive goods or services which include research materials, data and quotation services and investment related publications by way of soft commissions provided they are of demonstrable benefit to the Fund and unitholders. During the fi nancial period under review, PCIF has received data and quotation services by way of soft commissions. These services were used to provide fi nancial data on securities and price quotation information to the Fund Manager during the fi nancial period under review.
Extracts Of Financial Statements Extracts Of Financial Statements (cont d) The following pages are extracts of the audited financial statements of the Fund for the financial period ended 31 May 2017. The full set of the audited fi nancial statements together with the Independent Auditors Report is available upon request without charge. Statement of Assets and Liabilities As at 31 May 2017 31.5.2017 30.11.2016 MYR 000 MYR 000 Assets Investments 394,657 266,603 Due from the Manager, net 3,017 399 Other receivables 1,031 232 Shariah-based placements with financial institutions 55,055 16,776 Cash at banks 15,203 44,194 468,963 328,204 Liabilities Due to brokers/financial institutions, net - 2,860 Due to the Trustee 25 16 Other payables 105 98 Distribution payable - 2,916 130 5,890 Total net assets 468,833 322,314 Net asset value ( NAV ) attributable to unitholders (Total equity) 468,833 322,314 Units in circulation (in 000) 1,649,963 1,222,423 NAV per unit (in sen) 28.41 26.37 Statement of Income and Expenditure 1.12.2016 1.12.2015 to to 31.5.2017 31.5.2016 MYR 000 MYR 000 Income Profi t from Shariah-based placements 515 257 Dividend income 1,900 1,250 Net gain/(loss) from investments 29,656 (10,858) Net realised/unrealised foreign exchange loss (20) (734) 32,051 (10,085) Less: Expenses Trustee s fee 121 97 Management fee 3,307 2,674 Audit fee 3 3 Tax agent s fee 1 1 Brokerage fee 415 565 Administrative fees and expenses 78 84 Payment to charitable bodies - 26 3,925 3,450 Net income/(loss) before taxation 28,126 (13,535) Taxation (17) (4) Net income/(loss) after taxation 28,109 (13,539) Net income/(loss) after taxation is made up as follows: Realised 1,353 (2,861) Unrealised 26,756 (10,678) 28,109 (13,539)
Extracts Of Financial Statements (cont d) Extracts Of Financial Statements (cont d) Statement of Changes in Net Asset Value Unitholders Accumulated capital loss Total MYR 000 MYR 000 MYR 000 As at 1 December 2015 534,295 (196,357) 337,938 Creation of units 444-444 Cancellation of units (20,549) - (20,549) Net loss after taxation - (13,539) (13,539) As at 31 May 2016 514,190 (209,896) 304,294 As at 1 December 2016 496,166 (173,852) 322,314 Creation of units 119,599-119,599 Cancellation of units (1,189) - (1,189) Net income after taxation - 28,109 28,109 As at 31 May 2017 614,576 (145,743) 468,833 Statement of Cash Flows 1.12.2016 1.12.2015 to to 31.5.2017 31.5.2016 MYR 000 MYR 000 Cash flows from operating activities Proceeds from sale of investments 19,773 108,536 Purchase of investments (121,105) (44,336) Subscription of rights (191) (236) Maturity of Shariah-based placements 4,290,839 1,937,524 Shariah-based placements (4,329,118) (1,947,815) Profi t from Shariah-based placements received 513 256 Net dividend income received 1,074 918 Trustee s fee paid (112) (99) Management fee paid (3,080) (2,742) Audit fee paid (4) (4) Payment of other fees and expenses (71) (86) Payment to charitable bodies - (26) Net cash (outflow)/inflow from operating activities (141,482) 51,890 Cash flows from financing activities Cash proceeds from units created 116,754 444 Cash paid on units cancelled (1,189) (20,294) Distribution paid (2,916) - Net cash inflow/(outflow) from financing activities 112,649 (19,850) Net (decrease)/increase in cash and cash equivalents (28,833) 32,040 Effect of change in foreign exchange rates (158) (861) Cash and cash equivalents at the beginning of the financial period 44,194 3,614 Cash and cash equivalents at the end of the financial period 15,203 34,793