Fund Information Fund Name Public Islamic Treasures Growth Fund () Fund Category Equity (Shariah-compliant) Fund Investment Objective To achieve capital growth over the medium long-term period by investing primarily in small and medium sized companies, which comply with Shariah principles. Fund Performance Benchmark The benchmarks of the Fund and their respective percentages are 90% cusmised index by FTSE based on the constituents with market capitalisation below RM6.0 billion within the FTSE Bursa Malaysia EMAS Shariah Index and 10% 3-Month Islamic Interbank Money Market (IIMM) rate. The 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 Sck Exchange Group companies (the LSEG ) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as the results be obtained from the use of the cusmised index by FTSE based on the constituents with market capitalisation below RM6.0 billion within the FTSE BURSA MALAYSIA EMAS 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) any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation 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 Breakdown of Unitholdings of as at 28 February 2018 Size of holdings No. of % of No. of units unitholders unitholders held (million) 5,000 and below 3,323 9.11 12 5,001 10,000 4,680 12.83 35 10,001 50,000 18,780 51.50 471 50,001 500,000 9,499 26.05 1,075 500,001 and above 187 0.51 164 Total 36,469 100.00 1,757 Note: Excluding Manager s Sck.
Fund Performance Fund Performance Average Total Return for the Following Years Ended 28 February 2018 Average Total Return of (%) 1 Year 12.19 3 Years 4.77 5 Years 6.76 Annual Total Return for the Financial Years Ended 31 August Year 2017 2016 2015 2014 2013 (%) 10.91 3.02-10.67 8.93 16.04 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 tal return of the Fund was sourced from Lipper. 2. Average tal 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. Other Performance Data for the Past Three Financial Periods 28.2.2018 28.2.2017 29.2.2016 Unit Prices (MYR) Highest NAV per unit for the period 0.3238 0.2860 0.2939 Lowest NAV per unit for the period 0.2966 0.2699 0.2654 Net Asset Value (NAV) and Units in Circulation (UIC) as at the End of the Period Total NAV (MYR 000) 549,394 625,004 470,111 UIC (in 000) 1,757,037 2,205,013 1,687,543 NAV per unit (MYR) 0.3127 0.2834 0.2786 Total Return for the Period (%) 4.62 3.43 4.75 Capital growth (%) 4.45 3.17 4.52 Income (%) 0.16 0.25 0.22 Management Expense Ratio (%) 1.73 1.73 1.72 Portfolio Turnover Ratio (time) 0.05 0.19 0.24 Notes: Management Expense Ratio is calculated by taking the tal 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 tal 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 2018 dropped 0.05 time from 0.19 time in the previous financial period on account of lower level of rebalancing activities performed by the Fund during the period. - 1 Asset Allocation for the Past Three Financial Periods As at (Percent of NAV) 28.2.2018 28.2.2017 29.2.2016 % % % EQUITY SECURITIES Quoted Malaysia Basic Materials 0.6 1.1 0.8 Communications 15.1 10.6 6.7 Consumer, Cyclical 5.7 6.3 6.1 Consumer, Non-cyclical 25.5 20.4 18.7 Diversifi ed 1.2 2.0 2.4 Energy 1.7 0.3 1.1 Financial 14.9 16.3 10.5 Industrial 18.8 19.3 13.9 Technology 7.6 4.1 5.8 Utilities - 0.1-91.1 80.5 66.0 Outside Malaysia Hong Kong Consumer, Cyclical - - 0.3 Korea Consumer, Cyclical - - 0.5 Singapore Consumer, Non-cyclical - 0.6 2.5 TOTAL QUOTED EQUITY SECURITIES 91.1 81.1 69.3 WARRANTS Quoted Malaysia Warrants 0.1 - - TOTAL QUOTED WARRANTS 0.1 - - SHARIAH-BASED PLACEMENTS WITH FINANCIAL INSTITUTIONS 4.4 15.5 26.4 OTHER ASSETS & LIABILITIES 4.4 3.4 4.3
Overview This Interim Report covers the financial period from 1 September 2017 28 February 2018. Public Islamic Treasures Growth Fund ( or the Fund) seeks achieve capital growth over the medium long-term period by investing primarily in small and medium sized companies, which comply with Shariah principles. For the financial period under review, the Fund registered a return of +4.62% as compared its Benchmark s return of +1.19%. The Fund s Shariahcompliant equity portfolio registered a return of +6.14% while its Islamic money market portfolio registered a return of +1.49% during the financial period under review. A detailed performance attribution analysis is provided in the sections below. For the fi ve financial years ended 28 February 2018, the Fund generated a tal cumulative return of +33.82% as compared the Benchmark s return of +66.01% over the same period. Returns from Start of Period 90% 75% 60% 45% 30% 15% 0% -15% Performance of from 28 February 2013 28 February 2018 BENCHMARK 2013 2014 2015 Prior 30 April 2013, the Fund s Benchmark was a composite index of 90% FTSE Bursa Malaysia EMAS Shariah Index (FBMS) and 10% 3-Month Islamic Interbank Money Market (IIMM) rate. From 30 April 2013 29 April 2015, the Fund s equity Benchmark was the FTSE Bursa Malaysia Small Cap Shariah Index (FBMSSC). Effective 30 April 2015, the Fund s equity Benchmark has been changed a cusmised index by FTSE based on constituents with market capitalisation below RM6 billion within the FBMS, as it is a better representative of the Fund s investments. Effect of Distribution Reinvestment on Portfolio Exposures There were no distributions declared for the period ended 28 February 2018. 2016 2017 2018 Change in Portfolio Exposures from 31-Aug-17 28-Feb-18 Average 31-Aug-17 28-Feb-18 Change Exposure Shariah-compliant Equities & Related Securities 82.4% 91.2% +8.8% 87.63% Islamic Money Market 17.6% 8.8% -8.8% 12.37% Returns Breakdown by Asset Class Market / Returns On Benchmark Benchmark Average Attributed Investments Returns Index Used Exposure Returns Shariahcompliant Equities & Related Equity Securities 6.14% 1.10% Benchmark 87.63% 5.38% Islamic Money Overnight Market 1.49% 1.50% Islamic Rate 12.37% 0.18% less: Expenses -0.94% Total Net Return for the Period 4.62% Equity Benchmark = FTSE Cusmised Index Overnight Islamic Rate = Overnight 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 +6.14% and outperformed the Benchmark s return of +1.10%. The Fund s Shariah-compliant equity portfolio outperformed the Benchmark as its holdings of selected scks within the Industrial, Technology and Consumer secrs outperformed the broad market during the fi nancial period under review. The Fund commenced the fi nancial period under review with a Shariahcompliant equity exposure of 82.4% and the Fund s Shariah-compliant equity weight was gradually increased above 90% in January 2018 capitalise on Shariah-compliant investment opportunities in the domestic market. The Fund ended the financial period under review with a Shariah-compliant equity exposure of 91.2%. Based on an average Shariah-compliant equity exposure of 87.63%, the Fund s Shariah-compliant equity portfolio is deemed have registered a return of +5.38% the Fund as a whole for the fi nancial period under review. A full review of the performance of the equity market is tabled in the following sections.
Secr Allocation In terms of secr allocation within the Shariah-compliant equity portfolio, the p 5 secrs accounted for 81.9% of the Net Asset Value (NAV) of the Fund and 89.8% of the Fund s Shariah-compliant equity portfolio. The weightings of the p 5 secrs in Malaysia (unless otherwise indicated) are in the following order: Consumer, Non-cyclical (25.5%), Industrial (18.8%), Communications (15.1%), Financial (14.9%) and Technology (7.6%). 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 +1.49%. In comparison, the Overnight Islamic Interbank Money Market Rate (Overnight Islamic Rate) registered a return of +1.50% over the same period. During the financial period under review, the Fund s exposure Islamic money market investments decreased from 17.6% 8.8% as funds were mobilised in Shariah-compliant equity investments. Based on an average exposure of 12.37%, the Islamic money market portfolio is estimated have contributed +0.18% the Fund s overall return for the financial period under review. Sck Market Review Commencing the fi nancial period under review at 12,749.09 points, the FBMS rose in September and Ocber 2017 before retracing in November 2017, as market sentiment was dampened by a lack of fresh catalysts and a selldown in selected blue chips. The FBMS subsequently rebounded in December 2017 and continued rally in January 2018 on the back of firmer oil prices and buying interest from foreign invesrs. In February 2018, the Index fell in tandem with global markets amid concerns over the prospect of higher-than-expected interest rates in the U.S. The FBMS closed at 13,427.51 points register a gain of 5.32% for the financial period under review. Index 14,000 13,750 13,500 13,250 13,000 12,750 12,500 Islamic Money Market Review The Overnight Islamic Rate commenced the financial period under review at 2.99% and ended the financial period under review higher at 3.22%. 12,250 Aug-17 FTSE Bursa Malaysia EMAS Shariah Index (31 August 2017-28 February 2018) Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Economic Review Malaysia s GDP growth gained pace from 4.2% in 2016 5.9% in 2017 on the back of higher domestic demand and export growth. Growth in the services secr rose from 5.6% in 2016 6.2% in 2017. Meanwhile, growth in manufacturing activities increased from 4.4% 6.0% over the same period. Malaysia s export growth accelerated 18.9% in 2017 from 1.2% in 2016 due mainly higher exports of electrical and electronic products. Import growth surged 19.9% from 1.9% over the same period. Malaysia s cumulative trade surplus widened RM97.2 billion in 2017 from RM88.1 billion in 2016. Due capital inflows, Malaysia s foreign reserves rose US$103.7 billion as at end-january 2018 compared US$95.0 billion a year ago. Malaysia s infl ation rate rose 3.7% in 2017 from 2.1% in 2016 on the back of higher transportation costs and food prices. On 25 January 2018, Bank Negara Malaysia (BNM) raised the Overnight Policy Rate (OPR) by 25 basis points (bps) from 3.00% 3.25% amid resilient economic growth. Loans growth eased 4.1% in 2017 from 5.3% in 2016 due slower demand from the household secr. Led by higher investment spending and export growth, U.S. GDP growth rose from 1.5% in 2016 2.3% in 2017. Investment spending increased by 3.2% in 2017 compared a contraction of 1.6% in 2016 due higher investment in equipment. Meanwhile, exports expanded by 3.4% compared a decline of 0.3% over the same period. At the Federal Open Market Committee (FOMC) meeting on 30-31 January 2018, the Federal Reserve maintained the Federal funds rate at the target range of 1.25%-1.50%. Eurozone GDP growth gained pace from 1.8% in 2016 2.5% in 2017 on the back of higher exports. At its monetary policy meeting on 25 January 2018, the European Central Bank (ECB) kept its main refinancing and deposit rates at 0.00% and -0.40% respectively. The ECB extended its quantitativeeasing program from January 2018 until at least September 2018. However, it reduced the monthly pace of bond-buying from 60 billion 30 billion with effect from January 2018. In a referendum held on 23 June 2016, British voters voted in favour of exiting the European Union (EU). The United Kingdom (UK) formally notifi ed of its exit from the EU under Article 50 on 29 March 2017, which commences a 2-year process of trade negotiations with the EU. Outlook and Investment Strategy Global and regional equity markets traded on a positive note in January 2018 but retraced in early February 2018 on concerns over the prospect of faster-than-anticipated interest rate hikes in the U.S. However, most equity markets subsequently rebounded and recouped part of their losses in late February 2018. While concerns over inflationary pressures in the U.S. may result in volatile market conditions in the near term, the performance of equity markets over the longer term will depend on the economic outlook and market valuations of the U.S., Europe and the Asia Pacifi c region. U.S. economic growth is projected edge up from 2.3% in 2017 2.7% in 2018, driven by higher investment spending on the back of tax reform measures.
Extracts Of Financial Statements In the Eurozone, economic growth is envisaged ease from 2.5% in 2017 2.3% in 2018 on expectations of slower export growth. On the domestic front, Malaysia s GDP growth is projected ease from 5.9% in 2017 5.3% in 2018 amid moderating export growth. However, domestic demand will be supported by sustained consumer and investment spending backed by government measures increase disposable incomes as well as the ongoing implementation of infrastructure projects. The budget deficit is projected narrow RM39.8 billion (2.8% of GDP) in 2018 from the RM39.9 billion (3.0% of GDP) estimated for 2017, while the federal revenue is forecast expand by 6.4% RM239.9 billion in 2018. Meanwhile, operating expenditure and net development expenditure are expected grow by 6.5% RM234.3 billion and 0.2% RM45.4 billion respectively in 2018. As at end-february 2018, the local sck market was trading at a prospective P/E ratio of 16.5x, which was in line with its 10-year average. The market s dividend yield was 3.22%. Given the above facrs, the Fund will continue rebalance its investment portfolio accordingly with the objective of achieving capital growth over the medium long-term period by investing primarily in small and medium sized companies, which comply with Shariah principles. 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 benefi t the Fund and unitholders. During the financial period under review, has not received goods or services by way of soft commissions. The following pages are extracts of the audited fi nancial statements of the Fund for the fi nancial period ended 28 February 2018. The full set of the audited fi nancial statements gether with the Independent Audirs Report is available upon request without charge. Statement of Assets and Liabilities As at 28 February 2018 28.2.2018 31.8.2017 MYR 000 MYR 000 Assets Investments 501,260 499,591 Due from brokers/fi nancial institutions, net 1,753 - Other receivables 308 713 Shariah-based placements with fi nancial institutions 24,274 82,675 Cash at banks 23,591 25,280 551,186 608,259 Liabilities Due the Manager, net 1,679 1,516 Due the Trustee 27 33 Other payables 86 56 Distribution payable - 9,982 1,792 11,587 Total net assets 549,394 596,672 Net asset value ( NAV ) attributable unitholders (Total equity) 549,394 596,672 Units in circulation (in 000) 1,757,037 1,996,367 NAV per unit (in sen) 31.27 29.89
Extracts Of Financial Statements (cont d) Extracts Of Financial Statements (cont d) Statement of Income and Expenditure 1.9.2017 1.9.2016 28.2.2018 28.2.2017 MYR 000 MYR 000 Income Profi t from Shariah-based placements 715 2,052 Dividend income 5,127 4,887 Dividend income from non-permissible securities 269 6 Net gain from investments 27,306 19,448 Net realised gain on sale of non-permissible securities - 11 Net realised/unrealised foreign exchange (loss)/gain (1,680) 1,181 Non-permissible income - 276 31,737 27,861 Less: Expenses Trustee s fee 182 196 Management fee 5,008 5,387 Audit fee 3 3 Tax agent s fee 1 1 Brokerage fee 187 709 Administrative fees and expenses 52 55 Payment charitable bodies - 276 5,433 6,627 Net income before taxation 26,304 21,234 Taxation - (5) Net income after taxation 26,304 21,229 Net income after taxation is made up as follows: Realised (4,622) (392) Unrealised 30,926 21,621 26,304 21,229 Statement of Changes in Net Asset Value Unitholders Retained capital earnings Total MYR 000 MYR 000 MYR 000 As at 1 September 2016 643,510 (20,437) 623,073 Creation of units 14,276-14,276 Cancellation of units (33,574) - (33,574) Net income after taxation - 21,229 21,229 As at 28 February 2017 624,212 792 625,004 As at 1 September 2017 558,990 37,682 596,672 Creation of units 9,112-9,112 Cancellation of units (82,694) - (82,694) Net income after taxation - 26,304 26,304 As at 28 February 2018 485,408 63,986 549,394
Extracts Of Financial Statements (cont d) Statement of Cash Flows 1.9.2017 1.9.2016 28.2.2018 28.2.2017 MYR 000 MYR 000 Cash flows from operating activities Proceeds from sale of investments 40,519 54,243 Purchase of investments (16,822) (183,286) Subscription of rights - (1,439) Capital distribution received - 673 Maturity of Shariah-based placements 5,866,021 17,143,569 Shariah-based placements (5,807,620) (16,997,429) Profi t from Shariah-based placements received 727 2,083 Net dividend income received 5,789 4,590 Interest received from foreign currency accounts 1 - Non-permissible income received - 276 Trustee s fee paid (188) (198) Management fee paid (5,174) (5,443) Audit fee paid (4) (4) Tax agent s fee paid - (1) Payment of other fees and expenses (22) (50) Payment charitable bodies (1) (276) Net cash inflow from operating activities 83,226 17,308 Cash flows from financing activities Cash proceeds from units created 9,112 17,228 Cash paid on units cancelled (82,365) (31,125) Distribution paid (9,982) - Net cash outflow from financing activities (83,235) (13,897) Net (decrease)/increase in cash and cash equivalents (9) 3,411 Effect of change in foreign exchange rates (1,680) 1,191 Cash and cash equivalents at the beginning of the financial period 25,280 17,337 Cash and cash equivalents at the end of the financial period 23,591 21,939