BIMB-ARABESQUE MALAYSIA SHARIAH-ESG EQUITY FUND INTERIM REPORT FOR THE 6 MONTHS PERIOD ENDED 30 NOVEMBER 2018 LAPORAN INTERIM BAGI TEMPOH 6 BULAN BERAKHIR 30 NOVEMBER 2018 MANAGER: BIMB INVESTMENT MANAGEMENT BERHAD (276246-X)
TABLE OF CONTENT No. Particulars Page 1.0 Manager s Report 3 1.1 Fund Name/ Fund Type/ Fund Category/ Fund Investment Objective/ Fund Performance Benchmark/ Fund Distribution Policy 3 1.2 Performance for the 6 months period ended 30 November 2018 4 1.3 Economic and Market Review 8 1.4 Market Outlook and Strategy 9 1.5 Asset Allocation as at 30 November 2018 10 1.6 Other Performance Data for the Period Ended 30 November 2018 11 1.7 Unit Holdings as at 30 November 2018 14 1.8 Policy on Rebate and Soft Commission 16 2.0 Trustee s Report 32 3.0 Shariah Committee s Report 33 4.0 Directors Declaration Report 34 6.0 Unaudited Financial Statements 35 7.0 Corporate Directory 68 2
1.0 Manager s Report Dear Unit Holders, We are pleased to present the Manager s Report of BIMB-Arabesque Malaysia Shariah-ESG Equity Fund for the 6 months period ended 30 November 2018. 1.1 Fund Name/ Fund Type/ Fund Category/ Fund Investment Objective/ Fund Performance Benchmark/ Fund Distribution Policy Fund Name Fund Type Fund Category BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Growth Shariah-compliant Equity The Fund seeks to achieve medium to long term capital appreciation. Fund Investment Objective Note: Medium to long term in this context refers to 3 years or more. Note: Any material change to the investment objective of the Fund would require Unit Holders approval. 70:30 ratio of FBM KLCI Index and MSCI All Countries World Index. Fund Performance Benchmark The rationale of the combined benchmark is to reflect the Fund s portfolio composition of which 70% of the portfolio is to be invested in Malaysia s companies and 30% in foreign companies. (Please note that the risk profile of the Fund may be higher than the risk profile of the benchmark). Fund Distribution Policy Payment Mode for Income Distribution The distribution of income is incidental. Payment into unit holders bank account or reinvestment. 3
1.2 Performance for the 6 months period ended November 2018 1.2.1 Performance review For the period under review, BIMB-Arabesque Malaysia Shariah-ESG Equity Fund ( the Fund ) registered a return of -3.05% as compared to its benchmark return of -1.78% for the RM class. The USD class registered a return of -7.67% compared to its benchmark return of -3.21%. The SGD class registered a -5.41% return compared to its benchmark return of -2.49% and the EUR class registered a return of -4.68% compared to its benchmark return of -2.31%. The selected performance benchmark for the Fund is 70:30 ratio of FBM KLCI Index and MSCI All Countries World Index. As at 30 November 2018, the Fund has 99.51% exposure to equities and 0.49% in cash and cash equivalents. The total Net Asset Value (NAV) of the Fund is RM10.31 million that constitutes of four currency classes which are the Ringgit Malaysia, US Dollar, Singapore Dollar and the Euro. For the period under review, the Fund had remained invested across all sectors in order to take advantage of systematic market movement. Moving forward, the Manager will continue to be fully invested and utilize the Arabesque stock screening and momentum methodology as stated within its investment strategy in its prospectus. For the financial period under review, there were no significant changes to the state of affairs of the Fund and no circumstances that materially affect the interest of unit holders that have taken place up to the date of this Manager s Report. 4
1.2.2 Total return and average total return for the respective period ended 30 November 2018 RM Class Period 6-month Period (Jun 18 Nov 18) 1-year Period (Dec 17 Nov 18) BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Total Average Return Total Return Total Return Benchmark Average Total Return -3.05-6.10-1.78-3.56-8.56-8.56-1.05-1.05 Period 6-month Period (Jun 18 Nov 18) 1-year Period (Dec 17 Nov 18) BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Total Average Return Total Return USD Class Total Return Benchmark Average Total Return -7.67-15.34-3.21-6.42-10.55-10.55-1.72-1.72 Period 6-month Period (Jun 18 Nov 18) 1-year Period (Dec 17 Nov 18) BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Total Average Return Total Return SGD Class Total Return Benchmark Average Total Return -5.41-10.82-2.49-4.98-9.12-9.12-1.18-1.18 Period 6-month Period (Jun 18 Nov 18) 1-year Period (Dec 17 Nov 18) BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Total Average Return Total Return EUR Class Total Return Benchmark Average Total Return -4.68-9.36-2.31-4.62-5.94-5.94-0.17-0.17 5
1.2.3 Total return for the last financial year Financial Year 31 May 2018 Fund Class RM Benchmark RM Fund Class USD Benchmark USD Total Return Fund Class SGD Benchmark SGD Fund Class EUR Benchmark EUR 0.04% 0.25% 7.84% 2.51% 4.10% 1.53% 3.70% 1.43% Figure 1: Performance of the Fund versus the benchmark 6
Figure 1: Performance of the Fund versus the benchmark (continued) Note: Data Source Data verified by Benchmark : BIMB Investment Management Berhad : Novagni Analytics & Advisory Sdn. Bhd. : 70:30 ratio of FBM KLCI Index and MSCI All Countries World Index Notes: 1. Total Return of the Fund has been verified by Novagni Analytics & Advisory Sdn. Bhd. (363145-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. 7
1.3 Economic and Market Review 1.3.1 Economy a) Global United States (US) Gross Domestic Product (GDP) registered a growth of 3.4% in the third quarter of 2018 as compared to 4.2% in the second quarter of 2018 and 2.2% in the first quarter of 2018. The third quarter economic growth was supported by a strong consumer spending, surge in inventory investment and higher government spending, however was offset by the tariff-related drop in soybean exports. The US inflation rate fell to 2.2% in November 2018 as compared to 2.9% in June 2018. US unemployment rate continues to improve to 3.7% in November 2018 as compared to 4.0% in June 2018. The Euro zone economy grew by 0.2% for the third quarter 2018, compared to 0.4% in the second quarter of 2018 and also 0.4% in the first quarter of 2018. During the quarter, the Euro zone s economic performance was significantly affected by the global trade uncertainty and partly due to Italy s economy stagnating growth. The Euro zone inflation rate declined to 1.9% in November 2018 as compared to 2.0% in June 2018. Unemployment in the Euro zone has fallen to 7.9% in November 2018 from 8.2% in June 2018. The Chinese economy grew by 6.5% for the third quarter of 2018, compared to 6.7% in the second quarter of 2018 and 6.8% in the first quarter of 2018. The lower economic expansion was the result of the trade war effect with the U.S. amid Beijing's efforts to contain debt risk that has affected its domestic economic growth. (Source: Bloomberg, Bank Negara Malaysia and RHB Research Institute Sdn Bhd) b) Local The Malaysian economy grew at 4.4% in the third quarter of 2018, compared to 4.5% the second quarter of 2018 and 5.4% in the first quarter of 2018. The GDP result was affected by the supply disruption for the mining and agriculture sector, although the private sector continued to be the primary driver of growth for the quarter. Malaysia s inflation on the other hand declined to 0.2% in November 2018, compared to 0.8% in June 2018, due to a decline in prices of food and cost of transport. 8
Bank Negara Malaysia s Monetary Policy Committee (MPC) had decided to maintain the Overnight Policy Rate (OPR) at 3.25% during its November 2018 meeting to accommodate and support growth prospect for the country. The international reserves of Bank Negara Malaysia amounted to USD102.0 billion as at 30 November 2018. The reserves position is sufficient to finance 7.5 months of retained imports and is 1.0 time the short-term external debt. 1.3.2 Market Review Equity (Source: Bloomberg, Bank Negara Malaysia and RHB Research Institute Sdn Bhd) FTSE Bursa Malaysia EMAS Shariah Index ( FBM Shariah Index ) commenced the period under review at 12,175.97 points and reached the highest point of 12,939.64 on 9 August 2018. Subsequently, the FBM Shariah Index s declined to the lowest point of 11,438.76 on the 25 October 2018 before closing at 11,633.44 points on 30 November 2018. For the period under review, the FBM Shariah Index was down by 542.53 points or -4.45%. Among the key factors that contributed to the movement of the index are highlighted below: In September 2018, The Federal Open Market Committee (FOMC) increased the Fed funds rate by 25 basis points to a range between 2% to 2.25%, with one more hike projection by year end and three possible hikes in 2019. Federal Reserve officials have collectively revise GDP estimation higher to 3.1% for 2018 and 2.5% for 2019 compared to previous projections. President Trump and President Xi agreed on a temporary truce after their G20 meeting in end November 2018. As previously announced, the US will temporarily hold off the increase of 10% tariff to 25% on $200 billion of Chinese imports on January 1, 2019. There will be a 90-day period of negotiation to address trade imbalances, China s structural changes and other pertinent issues. (Source: Bloomberg and RHB Research Institute Sdn Bhd) 1.4 Market Outlook and Strategy The Fund employs a quantitative approach. Given the quantitative and momentumbased nature of the strategy, the Manager does not manage the Fund based on macro analysis, views and expected outlook. The Fund invests through a rulesbased investment process which will be rebalanced/traded on a quarterly basis. 9
1.5 Asset allocation as at 30 November 2018 and 31 May 2018 BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Investment in Collective Investment Scheme As at 30.11.2018 As at 31.5.2018 REITs 1.73 1.05 Investment in Quoted Securities in Malaysia 1.73 1.05 Construction 0.37 0.28 Consumer products 10.27 7.83 Finance 0.50 0.49 Industrial products 19.58 20.35 Infrastructure 3.37 0.97 Plantation 5.51 8.49 Properties 3.46 3.38 Energy 0.94 - Technology 4.61 7.48 Trading and Services 19.30 17.61 67.91 66.88 Investment in Foreign Quoted Securities Quoted in Europe 3.76 - Quoted in German - 2.94 Quoted in Great Britain 1.25 - Quoted in Hong Kong 1.73 1.31 Quoted in Japan - 1.02 Quoted in Sweden 1.66 2.11 Quoted in United States 21.47 21.17 29.87 28.55 CASH AND SHORT TERM INVESTMENTS: 0.49 3.52 100.00 100.00 10
1.6 Other performance data for the financial period ended 30 November 2018 and 31 May 2018 BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Net Asset Value 6 months ended 30.11.2018 9.3.2017 to 31.5.2018 - RM Class 9,722,495 20,706,228 - USD Class 6,646 6,855 - SGD Class 571,919 581,373 - EUR Class 4,557 4,701 Units in Circulation - RM Class 40,292,118 83,192,572 - USD Class 6,225 6,225 - SGD Class 749,206 738,352 - EUR Class 4,000 4,000 NAV per Unit (in RM) - RM Class 0.2413 0.2489 - USD Class 1.0677 1.1013 - SGD Class 0.7634 0.7874 - EUR Class 1.1393 1.1751 NAV per Unit in respective class currencies - RM Class 0.2413 0.2489 - USD Class 0.2553 0.2765 - SGD Class 0.2500 0.2643 - EUR Class 0.2406 0.2524 11
1.6 Other performance data for the financial period ended 30 November 2018 and 31 May 2018 (continued) BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Highest NAV per unit in respective class currencies 6 months ended 30.11.2018 9.3.2017 to 31.5.2018 - RM Class 0.2684 0.2754 - USD Class 0.2900 0.3077 - SGD Class 0.2838 0.2899 - EUR Class 0.2704 0.2712 Lowest NAV per unit in respective class currencies - RM Class 0.2370 0.2451 - USD Class 0.2506 0.2461 - SGD Class 0.2481 0.2457 - EUR Class 0.2406 0.2318 Total Return a - RM Class -3.05-0.44 - USD Class -7.67 10.60 - SGD Class -5.41 5.72 - EUR Class -4.68 0.96 Capital Return b - RM Class -3.05-0.44 - USD Class -7.67 10.60 - SGD Class -5.41 5.72 - EUR Class -4.68 0.96 12
1.6 Other Performance Data for the financial period ended 30 November 2018 and 31 May 2018 (continued) BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Income Return 6 months ended 30.11.2018 9.3.2017 to 31.5.2018 - RM Class - - - USD Class - - - SGD Class - - - EUR Class - - Management Expense Ratio (MER) d 1.95 1.93 Portfolio Turnover Ratio (PTR)(times) e 0.73 2.02 Note: a) Return of the Fund = NAV per unit (end of period) - 1 NAV per unit (opening of period) b) Capital Growth = Total Return of the Fund Income Return c) Income Return = {Income Distribution per Unit / NAV per Unit @ opening of period} x 100 d) Management Expenses Ratio e) Portfolio Turnover Ratio = The Management Expenses Ratio is the total management expenses expressed as an annual percentage of the Fund s average Net Asset Value of the Fund calculated on a daily basis. = It represents the average of the total acquisitions and disposals of the investment in the Fund for the interim period over the average Net Asset Value of the Fund calculated on a daily basis. 13
1.7 Unit Holdings as at 30 November 2018 Size of Holdings BIMB-Arabesque Malaysia Shariah-ESG Equity Fund (RM Class) No. of Unit Holders No. of Units Held No. % Units % 5,000 and below 71 48.30 204,493 0.51 5,001 to 10,000 15 10.21 108,993 0.27 10,001 to 50,000 45 30.61 1,023,146 2.54 50,001 to 500,000 10 6.80 1,440,110 3.57 500,001 and above 6 4.08 37,515,376 93.11 Units Held by Holders 147 100.00 40,292,118 100.00 Units Held by Manager 0 0 0 0 Grand Total for the Fund 147 100.00 40,292,118 100.00 Size of Holdings BIMB-Arabesque Malaysia Shariah-ESG Equity Fund (USD Class) No. of Unit Holders No. of Units Held No. % Units % 5,000 and below 1 50.00 2,225 35.74 5,001 to 10,000 0 0.00 0.00 0.00 10,001 to 50,000 0 0.00 0.00 0.00 50,001 to 500,000 0 0.00 0.00 0.00 500,001 and above 0 0.00 0.00 0.00 Units Held by Holders 1 50.00 2,225 35.74 Units Held by Manager 1 50.00 4,000 64.26 Grand Total for the Fund 2 100.00 6,225 100.00 14
1.7 Unit Holdings as at 30 November 2018 (continued) Size of Holdings BIMB-Arabesque Malaysia Shariah-ESG Equity Fund (SGD Class) No. of Unit Holders No. of Units Held No. % Units % 5,000 and below 0 0.00 0.00 0.00 5,001 to 10,000 0 0.00 0.00 0.00 10,001 to 50,000 1 50.00 16,973 2.27 50,001 to 500,000 0 0.00 0.00 0.00 500,001 and above 1 50.00 732,233 97.73 Units Held by Holders 2 100.00 749,206 100.00 Units Held by Manager 0 0.00 0.00 0.00 Grand Total for the Fund 2 100.00 749,206 100.00 Size of Holdings BIMB-Arabesque Malaysia Shariah-ESG Equity Fund (EUR Class) No. of Unit Holders No. of Units Held No. % Units % 5,000 and below 0 0.00 0 0.00 5,001 to 10,000 0 0.00 0 0.00 10,001 to 50,000 0 0.00 0 0.00 50,001 to 500,000 0 0.00 0 0.00 500,001 and above 0 0.00 0 0.00 Units Held by Holders 0 0.00 0 0.00 Units Held by Manager 1 100.00 4,000 100.00 Grand Total for the Fund 1 100.00 4,000 100.00 15
1.8 Policy on Rebate and Soft Commission Any stock broking rebates received by the Manager will be directed to the account of the Fund. Any soft commissions received from the broker which are in the form of research and advisory services that assist in the decision-making process relating to the Fund s investment may be retained by the Manager. The Manager did not receive any rebate and soft commission from broker during the financial period. For and on behalf of The Manager BIMB INVESTMENT MANAGEMENT BERHAD Date: 30 January 2019 16
1.0 Laporan Pengurus Para Pemegang Unit, Kami dengan sukacitanya membentangkan Laporan Pengurus BIMB-Arabesque Malaysia Shariah-ESG Equity Fund bagi tempoh 6 bulan berakhir 30 November 2018. 1.1 Nama Dana/ Jenis Dana/ Kategori Dana/ Objektif Pelaburan Dana/ Penanda Aras Dana/ Polisi Agihan Dana Nama Dana Jenis Dana Kategori Dana BIMB-Arabesque Malaysia Shariah-ESG Equity Fund ( BMSEF ) Pertumbuhan Ekuiti patuh Shariah Dana bertujuan untuk mencapai pertumbuhan modal dalam jangkamasa sederhana hingga panjang. Objektif Pelaburan Dana Nota: Jangkamasa sederhana hingga panjang dalam konteks ini merujuk kepada 3 tahun atau lebih. Nota: Sebarang perubahan ketara kepada objektif pelaburan Dana memerlukan kelulusan daripada Pemegang Unit. Nisbah 70:30 Indeks FBM KLCI dan MSCI All Countries World Index. Penanda Aras Dana Gabungan penanda aras ini mencerminkan portfolio Dana yang terdiri daripada 70% portfolio yang akan dilaburkan dalam institusi di Malaysia dan 30% dalam institusi asing. (Sila ambil perhatian bahawa profil risiko Dana mungkin lebih tinggi daripada profil risiko penanda aras) Polisi Agihan Dana Kaedah Pembayaran Agihan Pendapatan Pengagihan pendapatan adalah sampingan Bayaran ke akaun bank pelabur atau pelaburan semula. 17
1.2 Pencapaian Dana bagi Tempoh 6 Bulan Berakhir 30 November 2018 1.2.1 Kajian Pencapaian Bagi tempoh kajian, BIMB-Arabesque Malaysia Shariah-ESG Equity Fund ( Dana ) mencatat pulangan sebanyak -3.05% berbanding penanda arasnya yang memperoleh -1.78% untuk kelas RM. Kelas USD mencatat pulangan sebanyak -7.67% berbanding penanda arasnya yang memperolehi -3.21%. Kelas SGD mencatat pulangan sebanyak -5.41% berbanding penanda arasnya yang memperolehi -2.49% dan kelas EUR mencatat pulangan sebanyak -4.68% berbanding penanda arasnya yang memperolehi -2.31%. Penanda aras terpilih prestasi Dana adalah nisbah 70:30 Indeks FBM KLCI dan Indeks MSCI All Countries World. Pada 30 November 2018, Dana mempunyai pendedahan sebanyak 99.51% dalam pasaran ekuiti dan 0.49% dalam tunai dan setara tunai. Jumlah Nilai Aset Bersih (NAB) Dana adalah RM10.31 juta mewakili empat kelas mata wang iaitu Ringgit Malaysia, Dolar Amerika Syarikat, Dolar Singapura dan Euro. Bagi tempoh kajian, Dana mengekalkan pelaburan dalam semua sektor bagi mengambil manfaat daripada pergerakan pasaran yang sistematik. Dalam melangkah ke hadapan, Pengurus akan terus melabur sepenuhnya menggunakan sistem pelaburan saham Arabesque dan juga kaedah momentum seperti mana dinyatakan dalam strategi pelaburan yang terkandung dalam prospektusnya. Bagi tempoh kewangan dalam kajian, tidak terdapat sebarang perubahan ketara dalam hal ehwal pengurusan Dana dan tidak berlaku sebarang keadaan yang boleh menjejaskan kepentingan para pemegang unit sehingga tarikh Laporan Pengurus ini disediakan. 18
1.2.2 Jumlah pulangan dan purata jumlah pulangan bagi tempoh-tempoh berikut hingga 30 November 2018 Kelas RM Tempoh 6 bulan (Jun 18 Nov 18) 1 tahun (Dis 17 Nov 18) BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Purata Jumlah Jumlah Pulangan Pulangan Jumlah Pulangan Penanda Aras Purata Jumlah Pulangan -3.05-6.10-1.78-3.56-8.56-8.56-1.05-1.05 Tempoh 6 bulan (Jun 18 Nov 18) 1 tahun (Dis 17 Nov 18) BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Purata Jumlah Jumlah Pulangan Pulangan Kelas USD Jumlah Pulangan Penanda Aras Purata Jumlah Pulangan -7.67-15.34-3.21-6.42-10.55-10.55-1.72-1.72 Tempoh 6 bulan (Jun 18 Nov 18) 1 tahun (Dis 17 Nov 18) BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Purata Jumlah Jumlah Pulangan Pulangan Kelas SGD Jumlah Pulangan Penanda Aras Purata Jumlah Pulangan -5.41-10.82-2.49-4.98-9.12-9.12-1.18-1.18 19
1.2.2 Jumlah pulangan dan purata jumlah pulangan bagi tempoh-tempoh berikut hingga 30 November 2018 (sambungan) Tempoh 6 bulan (Jun 18 Nov 18) 1 tahun (Dis 17 Nov 18) BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Purata Jumlah Jumlah Pulangan Pulangan Kelas EUR Jumlah Pulangan Penanda Aras Purata Jumlah Pulangan -4.68-9.36-2.31-4.62-5.94-5.94-0.17-0.17 1.2.3 Jumlah Pulangan Tahunan Bagi Tahun Kewangan Yang Lalu Tahun Kewangan Dana Kelas RM Penanda Aras RM Dana Kelas USD Jumlah Pulangan Penanda Aras USD Dana Kelas SGD Penanda Aras SGD Dana Kelas EUR Penanda Aras EUR 31 Mei 2018 0.04% 0.25% 7.84% 2.51% 4.10% 1.53% 3.70% 1.43% 20
Rajah 1: Prestasi Dana Berbanding Penanda Aras 21
Rajah 1: Prestasi Dana Berbanding Penanda Aras (sambungan) Nota: Sumber Data : BIMB Investment Management Berhad Data disahkan oleh : Novagni Analytics & Advisor Sdn. Bhd Penanda Aras : Nisbah 70:30 Indeks FBM KLCI dan Indeks Dunia Semua Negara MSCI Nota: 1. Jumlah Pulangan telah disahkan oleh Novagni Analytics & Advisor Sdn. Bhd. (363145-W) 2. Jumlah Pulangan Purata adalah berpandukan formula berikut: Jumlah Pulangan Bilangan Tahun Bawah Kajian Prestasi masa lepas tidak semestinya menjadi petunjuk prestasi masa depan dan harga unit serta pulangan pelaburan mungkin turun dan naik. 22
1.3 Ekonomi dan Kajian Pasaran 1.3.1 Ekonomi a) Global Pertumbuhan Keluaran Dalam Negeri Kasar (KDNK) AS mendaftar pertumbuhan 3.4% pada suku ketiga 2018 berbanding 4.2% pada suku kedua 2018 dan 2.2% pada suku pertama 2018. Pertumbuhan ekonomi pada suku ketiga disokong oleh perbelanjaan pengguna yang tinggi, lanjakan dalam pelaburan inventori dan perbelanjaan kerajaan yang lebih tinggi, walau bagaimanapun telah diimbangi dengan tarif mengakibatkan penurunan eksport kacang soya. Kadar inflasi AS menurun kepada 2.2% pada November 2018 berbanding 2.9% pada bulan Jun 2018. Kadar pengangguran AS terus bertambah baik kepada 3.7% pada November 2018 berbanding 4.0% pada Jun 2018. Ekonomi zon Euro meningkat sebanyak 0.2% pada suku ketiga 2018 berbanding 0.4% pada suku kedua 2018 dan juga 0.4% pada suku pertama 2018. Sepanjang tempoh ini, prestasi ekonomi zon Euro adalah ketara terjejas disebabkan oleh ketidaktentuan perdagangan global dan sebahagiannya disebabkan oleh pertumbuhan ekonomi Itali yang mendatar. Kadar inflasi zon Euro menurun kepada 1.9% pada bulan November 2018 berbanding 2.0% pada bulan Jun 2018. Kadar pengangguran di zon Euro jatuh kepada 7.9% pada bulan November 2018 daripada 8.2% pada bulan Jun 2018. Ekonomi China berkembang sebanyak 6.5% pada suku ketiga 2018, berbanding 6.7% pada suku kedua 2018 dan 6.8% pada suku pertama 2018. Pengembangan ekonomi yang lebih rendah adalah disebabkan oleh perang perdagangan dengan Amerika Syarikat ketika Beijing dalam usaha untuk menghadkan risiko hutang yang telah menjejaskan pertumbuhan ekonomi domestiknya. (Sumber: Bloomberg, Bank Negara Malaysia dan RHB Research Institute Sdn Bhd) b) Dalam Negara Ekonomi Malaysia berkembang sebanyak 4.4% pada suku ketiga 2018 berbanding 4.5% pada suku kedua 2018 dan 5.4% pada suku pertama 2018. Pertumbuhan KDNK yang lemah telah disebabkan oleh gangguan bekalan untuk sektor perlombongan dan pertanian, meskipun sektor swasta terus menjadi penjana pertumbuhan utama pada suku itu. Kadar inflasi Malaysia pula menurun kepada 0.2% pada bulan November 2018, berbanding 0.8% pada bulan Jun 2018, disebabkan oleh penurunan harga makanan dan kos pengangkutan. 23
Jawatankuasa Dasar Monetari Bank Negara Malaysia (MPC) membuat keputusan untuk mengekalkan Kadar Dasar Semalaman (OPR) pada 3.25% dalam mesyuarat yang diadakan pada bulan November 2018 bagi menampung dan menyokong prospek pertumbuhan negara. Rizab antarabangsa Bank Negara Malaysia berjumlah AS$102.0 bilion pada 30 November 2018. Jumlah rizab ini mencukupi untuk membiayai 7.5 bulan import tertangguh dan mewakili 1.0 kali hutang jangka pendek luar negara. 1.3.2 Kajian Pasaran Ekuiti (Sumber: Bloomberg, Bank Negara Malaysia dan RHB Research Institute Sdn Bhd) Indeks Syariah EMAS FTSE Bursa Malaysia ( Indeks Syariah FBM ) memasuki tempoh dalam kajian pada paras 12,175.97 mata dan naik ke paras tertinggi 12,939.64 mata pada 9 Ogos 2018. Seterusnya, Indeks Syariah FBM jatuh ke paras terendah 11,438.76 mata pada 25 Oktober 2018 sebelum ditutup pada paras 11,633.44 mata pada 30 November 2018. Bagi tempoh dalam kajian, indeks Syariah FBM berkurang 542.53 mata atau -4.45%. Antara faktor-faktor utama yang menyumbang kepada pergerakan indeks adalah seperti berikut: Pada bulan September 2018, Jawatankuasa Pasaran Terbuka Persekutuan (FOMC) AS menaikkan kadar faedah dana sebanyak 25 mata asas julat antara 2% hingga 2.25%,dengan satu lagi jangkaan kenaikan sebelum akhir tahun dan tiga lagi pada 2019. Para pegawai Rizab Persekutuan secara kolektif menyemak semula anggaran Keluaran Dalam Negara Kasar meningkat kepada 3.1% pada 2018 dan 2.5% pada 2019 berbanding ramalan sebelumnya. Presiden Trump dan Presiden Xi bersetuju menghentikan sementara perang perdagangan antara kedua-dua negara selepas mereka menghadiri mesyuarat G20 pada akhir bulan November 2018. Seperti yang di umumkan, AS akan menangguhkan sementara kenaikan tarif sebanyak 10% kepada 25% terhadap nilai import China berjumlah $200 bilion pada 1 Januari 2019. Tempoh rundingan selama 90 hari akan diadakan untuk menangani ketidakseimbangan perdagangan, perubahan struktur China dan isu-isu lain. (Sumber: Bloomberg dan RHB Research Institute Sdn Bhd) 1.4 Tinjauan Pasaran dan Strategi Ekuiti Dana menggunakan pendekatan kuantitatif. Memandangkan strategi Dana berasaskan kuantitatif dan momentum, Pengurus tidak menguruskan Dana berdasarkan analisis makro, pandangan dan jangkaan prospek. Dana melabur berasaskan peraturan-peraturan yang telah ditentukan dan akan disusun semula setiap sukuan tahun. 24
1.5 Peruntukan aset pada 30 November 2018 dan 31 Mei 2018 BIMB-Arabesque Malaysia Shariah-ESG Equity Fund 30.11.2018 31.5.2018 Pelaburan Skim Pelaburan Kolektif REITs 1.73 1.05 1.73 1.05 Pelaburan Sekuriti Tersiarharga Malaysia Pembinaan 0.37 0.28 Barangan pengguna 10.27 7.83 Kewangan 0.50 0.49 Barangan industri 19.58 20.35 Infrastruktur 3.37 0.97 Perladangan 5.51 8.49 Hartanah 3.46 3.38 Tenaga 0.94 - Teknologi 4.61 7.48 Perdagangan dan perkhidmatan 19.30 17.61 67.91 66.88 Pelaburan Sekuriti Tersiarharga Asing Tersiarharga di Eropah 3.76 - Tersiarharga di German - 2.94 Tersiarharga di Great Britain 1.25 - Tersiarharga di Hong Kong 1.73 1.31 Tersiarharga di Japan - 1.02 Tersiarharga di Sweden 1.66 2.11 Tersiarharga di United States 21.47 21.17 29.87 28.55 TUNAI DAN PELABURAN JANGKA PENDEK : 0.49 3.52 100.00 100.00 25
1.6 Lain-lain data prestasi bagi tempoh berakhir 30 November 2018 dan tahun kewangan berakhir 31 Mei 2018 BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Harga Unit 6 bulan berakhir 30.11.2018 Tahun berakhir 31.5.2018 - Kelas RM 9,722,495 20,706,228 - Kelas USD 6,646 6,855 - Kelas SGD 571,919 581,373 - Kelas EUR 4,557 4,701 Unit dalam Edaran - Kelas RM 40,292,118 83,192,572 - Kelas USD 6,225 6,225 - Kelas SGD 749,206 738,352 - Kelas EUR 4,000 4,000 NAB seunit (dalam RM) - Kelas RM 0.2413 0.2489 - Kelas USD 1.0677 1.1013 - Kelas SGD 0.7634 0.7874 - Kelas EUR 1.1393 1.1751 NAB seunit dalam setiap kelas matawang - Kelas RM 0.2413 0.2489 - Kelas USD 0.2553 0.2765 - Kelas SGD 0.2500 0.2643 - Kelas EUR 0.2406 0.2524 26
1.6 Lain-lain data prestasi bagi tempoh berakhir 30 November 2018 dan tahun kewangan berakhir 31 Mei 2018 (sambungan) BIMB-Arabesque Malaysia Shariah-ESG Equity Fund NAB tertinggi seunit dalam setiap kelas matawang 6 bulan berakhir 30.11.2018 Tahun berakhir 31.5.2018 - Kelas RM 0.2684 0.2754 - Kelas USD 0.2900 0.3077 - Kelas SGD 0.2838 0.2899 - Kelas EUR 0.2704 0.2712 NAB terendah seunit dalam setiap kelas matawang - Kelas RM 0.2370 0.2451 - Kelas USD 0.2506 0.2461 - Kelas SGD 0.2481 0.2457 - Kelas EUR 0.2406 0.2318 Jumlah Pulangan Dana a - Kelas RM -3.05-0.44 - Kelas USD -7.67 10.60 - Kelas SGD -5.41 5.72 - Kelas EUR -4.68 0.96 Pertumbuhan Modal b - Kelas RM -3.05-0.44 - Kelas USD -7.67 10.60 - Kelas SGD -5.41 5.72 - Kelas EUR -4.68 0.96 27
1.6 Lain-lain data prestasi bagi tempoh berakhir 30 November 2018 dan tahun kewangan berakhir 31 Mei 2018 (sambungan) BIMB-Arabesque Malaysia Shariah-ESG Equity Fund Pulangan pendapatan 6 bulan berakhir 30.11.2018 Tahun berakhir 31.5.2018 - Kelas RM - - - Kelas USD - - - Kelas SGD - - - Kelas EUR - - Nisbah Perbelanjaan Pengurusan (NPP) d 1.95 1.93 Nisbah Pusing Ganti Portfolio (Kali) e 0.73 2.02 Nota: a) Pulangan ke atas Dana = Harga seunit (pada akhir tempoh) - 1 Harga seunit (pada awal tempoh) b) Pertumbuhan Modal = Jumlah Pulangan Dana Pulangan Pendapatan c) Pulangan Pendapatan = {Pengagihan Pendapatan Se Unit / NAB se unit pada awal tempoh} 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 yang dikira pada asas harian. = Ia dikira dengan mengambil purata jumlah perolehan dan pelupusan pelaburan dalam Dana bagi tempoh setengah tahun dibahagi dengan purata Nilai Aset Bersih Dana yang dikira pada asas harian. 28
1.7 Pegangan Unit pada 30 November 2018 Saiz Dipegang BIMB-Arabesque Malaysia Shariah-ESG Equity Fund (Kelas RM) Bilangan Pemegang Unit Jumlah Pegangan Unit Bilangan % Bilangan % 5,000 dan ke bawah 71 48.30 204,493 0.51 5,001 hingga 10,000 15 10.21 108,993 0.27 10,001 hingga 50,000 45 30.61 1,023,146 2.54 50,001 hingga 500,000 10 6.80 1,440,110 3.57 500,001 dan ke atas 6 4.08 37,515,376 93.11 Unit yang dipegang oleh Pemegang Unit Unit yang dipegang oleh Pengurus Jumlah Keseluruhan bagi Dana 147 100.00 40,292,118 100.00 0 0 0 0 147 100.00 40,292,118 100.00 Saiz Dipegang BIMB-Arabesque Malaysia Shariah-ESG Equity Fund (Kelas USD) Bilangan Pemegang Unit Jumlah Pegangan Unit Bilangan % Bilangan % 5,000 dan ke bawah 1 50.00 2,225 35.74 5,001 hingga 10,000 0 0.00 0.00 0.00 10,001 hingga 50,000 0 0.00 0.00 0.00 50,001 hingga 500,000 0 0.00 0.00 0.00 500,001 dan ke atas 0 0.00 0.00 0.00 Unit yang dipegang oleh Pemegang Unit Unit yang dipegang oleh Pengurus Jumlah Keseluruhan bagi Dana 1 50.00 2,225 35.74 1 50.00 4,000 64.26 2 100.00 6,225 100.00 29
1.7 Pegangan Unit pada 31 November 2018 (sambungan) Saiz Dipegang BIMB-Arabesque Malaysia Shariah-ESG Equity Fund (Kelas SGD) Bilangan Pemegang Unit Jumlah Pegangan Unit Bilangan % Bilangan % 5,000 dan ke bawah 0 0.00 0.00 0.00 5,001 hingga 10,000 0 0.00 0.00 0.00 10,001 hingga 50,000 1 50.00 16,973 2.27 50,001 hingga 500,000 0 0.00 0.00 0.00 500,001 dan ke atas 1 50.00 732,233 97.73 Unit yang dipegang oleh Pemegang Unit Unit yang dipegang oleh Pengurus Jumlah Keseluruhan bagi Dana 2 100.00 749,206 100.00 0 0.00 0.00 0.00 2 100.00 749,206 100.00 Saiz Dipegang BIMB-Arabesque Malaysia Shariah-ESG Equity Fund (Kelas EUR) Bilangan Pemegang Unit Jumlah Pegangan Unit Bilangan % Bilangan % 5,000 dan ke bawah 0 0.00 0 0.00 5,001 hingga 10,000 0 0.00 0 0.00 10,001 hingga 50,000 0 0.00 0 0.00 50,001 hingga 500,000 0 0.00 0 0.00 500,001 dan ke atas 0 0.00 0 0.00 Unit yang dipegang oleh Pemegang Unit Unit yang dipegang oleh Pengurus Jumlah Keseluruhan bagi Dana 0 0.00 0 0.00 1 100.00 4,000 100.00 1 100.00 4,000 100.00 30
1.8 Polisi Rebat dan Komisyen Bukan Tunai Sebarang rebat broker saham yang diterima oleh Pengurus akan dimasukkan ke akaun Dana. Apa-apa komisyen bukan tunai yang diterima daripada broker dalam bentuk perkhidmatan penyelidikan dan nasihat yang membantu dalam proses membuat keputusan yang berkaitan dengan pelaburan Dana boleh disimpan oleh Pengurus. Pengurus tidak menerima sebarang komisyen bukan tunai daripada broker bagi tempoh dalam kajian. Untuk dan bagi pihak Pengurus BIMB INVESTMENT MANAGEMENT BERHAD Tarikh: 30 Januari 2019 Nota: Laporan ini telah diterjemahkan daripada laporan asal (dalam Bahasa Inggeris). Jika terdapat perbezaan, sila rujuk kepada laporan Bahasa Inggeris. 31
2.0 Trustee s Report FOR THE 6 MONTHS PERIOD ENDED 30 NOVEMBER 2018 To the Unit Holders of BIMB-ARABESQUE MALAYSIA SHARIAH-ESG EQUITY FUND We, CIMB Islamic Trustee Berhad being the trustee for BIMB-Arabesque Malaysia Shariah-ESG Equity Fund ( the Fund ), are of the opinion that BIMB Investment Management Berhad ("the Manager ), acting in the capacity as Manager of the Fund, has fulfilled its duties in the following manner for the 6 months period ended 30 November 2018. We are also of the opinion that: a) The Fund has been managed in accordance with the limitations imposed on the investment powers of the Manager under the Deed, the Securities Commission Malaysia s Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007 (as amended from time to time) and other applicable laws; b) Valuation and pricing for the Fund has been carried out in accordance with the Deed and relevant regulatory requirements; and c) Creation and cancellation of units have been carried out in accordance with the Deed and any regulatory requirements. Yours faithfully CIMB ISLAMIC TRUSTEE BERHAD LEE KOOI YOKE Chief Operating Officer Kuala Lumpur, Malaysia Date: 30 January 2019 32
3.0 Shariah Committee s Report INTERIM REPORT FOR THE 6 MONTHS PERIOD ENDED 30 NOVEMBER 2018 To the Unit Holders of BIMB-ARABESQUE MALAYSIA SHARIAH-ESG EQUITY FUND We have acted as the Shariah Committee of BIMB-Arabesque Malaysia Shariah-ESG Equity Fund. Our responsibilities are to ensure that the procedures and processes employed by BIMB Investment Management Berhad and that the provisions of the Deed dated 18 November 2016 are in accordance with Shariah principles. In our opinion, BIMB Investment Management Berhad has managed BIMB-Arabesque Malaysia Shariah-ESG Equity Fund in accordance with Shariah principles and complied with applicable guidelines, rulings or decisions issued by the Securities Commission pertaining to Shariah matters for the 6 months period ended 30 November 2018. In addition, we also confirm that the investment portfolio of BIMB-Arabesque Malaysia Shariah-ESG Equity Fund comprises instruments which have been classified as Shariah-compliant by the Shariah Advisory Council (SAC) of the Securities Commission, SAC of Bank Negara Malaysia and the Accounting and Auditing Organization for Islamic Finance Institutions (AAOIFI), as the case may be and that all deposits and money market instruments placed by the Fund are Shariah-compliant. 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: 30 January 2019 33
4.0 Directors Declaration INTERIM REPORT FOR THE 6 MONTHS PERIOD ENDED 30 NOVEMBER 2018 To the Unit Holders of BIMB-ARABESQUE MALAYSIA SHARIAH-ESG EQUITY FUND We, Dato Ghazali Bin Awang and Najmuddin Bin Mohd Lutfi, being two of the directors of the Manager, BIMB Investment Management Berhad, for BIMB-Arabesque Malaysia Shariah-ESG Equity Fund do hereby state that in our opinion, the accompanying Statement of Financial Position, Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Net Asset Value and Statement of Cash Flows are drawn up so as to give a true and fair view of the Statement of Financial Position of the Fund as at 30 November 2018 and Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Net Asset Value and Statement of Cash Flows for the period ended on that date. For and on behalf on the Board of Directors, DATO GHAZALI BIN AWANG (Non Executive Independent Director).. NAJMUDDIN BIN MOHD LUTFI (Chief Executive Officer) Date: 30 January 2019 34
5.0 Unaudited Financial Statements Fair Value of Financial Instruments All Assets and Liabilities of the Fund are carried at fair values. The accounting policies on recognition and measurement of the fair value for the Fund s investments are disclosed in their respective accounting policies. The fair value for the amount due from/(to) Manager and Trustee, cash at bank, other receivables, other payables and accruals approximate their respective carrying amounts as at the balance sheet date due to the relatively short-term maturity of these Financial Instruments. 35
6.0 Financial Statements 6.1 Unaudited Statement of Financial Position as at 30 November 2018 As at As at 30.11.2018 31.5.2018 (unaudited) (audited) Note RM RM Assets Collective investment scheme 4 178,521 224,903 Quoted securities 5 10,077,165 20,325,312 Amount due from Manager 743 6,536 Other receivables 16,305 29,680 Cash and cash equivalents 6 109,133 775,870 Total assets 10,381,867 21,362,301 Liabilities Amount due to Manager 18,988 - Other payables 57,262 63,144 Total liabilities 76,250 63,144 Net asset value 10,305,617 21,299,157 Unitholders fund Unitholders capital 7 10,240,883 21,213,834 Retained profits 64,734 85,323 Net asset value attributable to unitholders 10,305,617 21,299,157 Net asset value attributable to unitholders - RM class 9,722,495 20,706,228 - USD class 6,646 6,855 - SGD class 571,919 581,373 - EUR class 4,557 4,701 36 10,305,617 21,299,157 Number of units in circulation - RM class 40,292,118 83,192,572 - USD class 6,225 6,225 - SGD class 749,206 738,352 - EUR class 4,000 4,000 Net asset value per unit in RM - RM class 24.13 sen 24.89 sen - USD class 106.77 sen 110.13 sen - SGD class 76.34 sen 78.74 sen - EUR class 113.93 sen 117.51 sen Net asset value per unit in respective currencies - RM class 24.13 sen 24.89 sen - USD class 25.53 cent 27.65 cent - SGD class 25.00 cent 26.43 cent - EUR class 24.06 cent 25.24 cent The notes on pages 40 to 67 are an integral part of these financial statements.
6.2 Unaudited Statement of Profit or Loss and Other Comprehensive Income for the 6 months financial period ended 30 November 2018 1.6.2018 to 30.11.2018 9.3.2017 to 30.11.2017 Note RM RM Income Gross dividend income from quoted securities 229,705 333,759 Gain on sale of quoted securities 9,158 118,876 Income from short term investments 851 27,543 Hibah from Al-Wadiah account 385 989 Realised gain/(loss) on foreign exchange 46,776 (79,609) Other unrealised loss on foreign exchange (6,858) (101,420) Unrealised (loss)/gain from financial instruments at fair value through profit or loss (144,946) 1,281,751 Gross income 135,071 1,581,889 Expenses Manager s fee 8 110,181 219,567 Trustee s fee 9 3,673 7,319 Audit fee 6,588 7,380 Tax agent s fee 2,013 7,380 Administrative expenses 21,101 50,071 143,556 291,717 Net (loss)/income before taxation (8,485) 1,290,172 Taxation 10 (12,104) (13,605) Net (loss)/income after taxation (20,589) 1,276,567 Other comprehensive income for the period - - Total comprehensive (loss)/income for the period (20,589) 1,276,567 Total comprehensive (loss)/income for the period consist of: Realised amount 131,215 96,236 Unrealised amount (151,804) 1,181,751 (20,589) 1,276,567 The notes on pages 40 to 67 are an integral part of these financial statements. 37
6.3 Unaudited Statement of Changes in Net Asset Value for the 6 months financial period ended 30 November 2018 Unitholders capital Retained profits Total RM RM RM As at 9 March 2017 (date of commencement) - - - Creation of units - RM class 24,968,264-24,968,264 - USD class 42,294-42,294 - SGD class 603,280-603,280 - EUR class 4,725-4,725 Cancellation of units - RM class (4,316,103) - (4,316,103) - USD class (37,556) - (37,556) - SGD class (6,159) - (6,159) - EUR class - - - Total attributable to unitholders 21,258,745-21,258,745 Total comprehensive income for the period - 1,276,567 1,276,567 As at 30 November 2017 21,258,745 1,276,567 22,535,312 As at 31 May 2018/1 June 2018 21,213,834 85,323 21,299,157 Creation of units - RM class 365,700-365,700 - USD class - - - - SGD class 9,006-9,006 - EUR class - - - Cancellation of units - RM class (11,347,657) - (11,347,657) - USD class - - - - SGD class - - - EUR class - - - Total attributable to unitholders (10,972,951) - (10,972,951) Total comprehensive loss for the period - (20,589) (20,589) As at 30 November 2018 10,240,883 64,734 10,305,617 The notes on pages 40 to 67 are an integral part of these financial statements. 38
6.4 Unaudited Statement of Cash Flows for the 6 months financial period ended 30 November 2018 1.6.2018 to 30.11.2018 9.3.2017 to 30.11.2017 RM RM Cash flows from operating activities Proceed from sale of quoted securities 15,778,310 14,488,500 Purchase of quoted securities (5,619,570) (35,206,902) Dividend received 230,977 278,125 Income from short term investments 1,236 28,532 Gain/(loss) from foreign exchange 39,917 (181,030) Manager s fee paid (124,586) (190,976) Trustee fee paid (4,153) (6,366) Custodian fee paid (11,535) (12,718) Payment for administrative expenses (9,163) (24,337) Net cash generated from/(used in) operating activities 10,281,433 (20,827,172) Cash flows from financing activities Cash receipt for creation of units 380,499 25,610,940 Cash payment for cancellation of units (11,328,669) (4,092,067) Net cash (used in)/generated from financing activities (10,948,170) 21,518,873 Net (decrease)/increase in cash and cash (666,737) 691,701 equivalents Cash and cash equivalents at 1 June 2018/ 9 March 2017 775,870 - Cash and cash equivalents at 30 November 109,133 691,701 Cash and cash equivalents comprise: Short term placements - - Cash at bank 109,133 691,701 109,133 691,701 The notes on pages 40 to 67 are an integral part of these financial statements. 39
6.5 Unaudited notes to the financial statements 1. Information on the Fund BIMB-Arabesque Malaysia Shariah-ESG Equity Fund (hereinafter referred to as the Fund ) was constituted pursuant to the execution of a Deed dated 18 November 2016 between the Manager - BIMB Investment Management Berhad, the Trustee - CIMB Islamic Trustee Berhad and the registered unitholders of the Fund. The principal activity of the Fund is to invest in authorised investments as defined in the Deed, which include shares or units in Shariah-compliant collective investment schemes, Shariah-compliant securities of companies listed on Bursa Malaysia, securities listed or traded on foreign markets where the regulatory authority is an ordinary or associate member of the International Organisation of Securities Commissions and short term placements. The Manager, BIMB Investment Management Berhad, a company incorporated in Malaysia, is a subsidiary of Bank Islam Malaysia Berhad. The financial statements were approved by the Board of Directors of the Manager on 30 January 2019. 2. Basis of preparation (a) Statement of compliance The financial statements of the Fund have been prepared in accordance with Malaysian Financial Reporting Standards ( MFRS ), International Financial Reporting Standards ( IFRS ), the Deed and Securities Commission s Guidelines on Unit Trust Funds ( Guidelines ) in Malaysia. The following are accounting standards, interpretations and amendments that have been issued by the Malaysian Accounting Standards Board ( MASB ) but have not been adopted by the Fund: MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2019 MFRS 16, Leases IC Interpretation 23, Uncertainty over Income Tax Treatments Amendments to MFRS 3, Business Combinations (Annual Improvements to MFRS Standards 2015-2017 Cycle) Amendments to MFRS 9, Financial Instruments Prepayment Features with Negative Compensation Amendments to MFRS 11, Joint Arrangements (Annual Improvements to MFRS Standards 2015-2017 Cycle) Amendments to MFRS 112, Income Taxes (Annual Improvements to MFRS Standards 2015-2017 Cycle) 40
2. Basis of preparation (continued) (a) Statement of compliance (continued) MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2019 (continued) Amendments to MFRS 119, Employee Benefits (Plan Amendment, Curtailment or Settlement) Amendments to MFRS 123, Borrowing Costs (Annual Improvements to MFRS Standards 2015-2017 Cycle) Amendments to MFRS 128, Investments in Associates and Joint Ventures Longterm Interests in Associates and Joint Ventures MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2020 Amendments to MFRS 3, Business Combinations Definition of a Business Amendments to MFRS 101, Presentation of Financial Statement and MFRS 108, Accounting Policies, Changes in Accounting Estimates and errors Definition of a Material 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, interpretations and amendments, where applicable: from the annual period beginning on 1 June 2019 for those accounting standard, interpretations and amendments that are effective for annual periods beginning on or after 1 January 2019; and from the annual period beginning on 1 June 2020 for those accounting standard, interpretations and amendments that are effective for annual periods beginning on or after 1 January 2020; and from the annual period beginning on 1 June 2021 for those accounting standards, interpretations and amendments that are effective for annual periods beginning on or after 1 January 2021. The initial application of the accounting standards, interpretations and amendments are not expected to have any material financial impacts to the current period and prior period financial statements of the Fund. 41
2. Basis of preparation (continued) (b) Basis of measurement The financial statements are prepared on the historical cost basis except as disclosed in Note 3(a)(ii). (c) Functional and presentation currency These financial statements are presented in Ringgit Malaysia ( RM ), which is the Fund s functional currency. (d) Use of estimates and judgements The preparation of the financial statements in conformity with MFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future 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. 3. Significant accounting policies The accounting policies set out below have been applied consistently to the period presented in these financial statements, unless otherwise stated. (a) Financial instruments (i) Initial recognition and measurement A financial instrument is recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the instrument. A financial instrument is recognised initially, at its fair value plus, in the case of a financial instrument not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument. 42
3. Significant accounting policies (continued) (a) Financial instruments (continued) (ii) Financial instrument categories and subsequent measurement The Fund categorises financial instruments as follows: Financial assets (a) Financial assets at fair value through profit or loss Fair value through profit or loss category comprises financial assets that are held for trading, or financial assets that are specifically designated into this category upon initial recognition. Financial assets categorised as fair value through profit or loss are subsequently measured at their fair values with the gain or loss recognised in the statement of profit or loss. (b) Financing and receivables Financing and receivables category are debt instruments that are not quoted in an active market and these comprises amount due from Manager, other receivables and cash and cash equivalents. Financial assets categorised as financing and receivables are subsequently measured at amortised cost using the effective profit method. All financial assets except for those measured at fair value through profit or loss, are subject to review for impairment, see Note 3(d). Financial liabilities All financial liabilities are subsequently measured at amortised cost comprises amount due to Manager and other payables. (iii) Derecognition A financial asset or a part of it is derecognised when, and only when the contractual rights to the cash flows from the financial asset expire or the financial asset is transferred to another party without retaining control or substantially all risks and rewards of the asset. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain or loss that had been recognised in equity is recognised in profit or loss. 43
3. Significant accounting policies (continued) (a) Financial instruments (continued) (iii) Derecognition (continued) A financial liability or a part of it is derecognised when, and only when the obligation specified in the contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss. (b) Income recognition (i) Dividend income Dividend income is recognised in profit or loss on the date that the Fund s right to receive payment is established, which in the case of foreign collective investment scheme and quoted shares are the entitlement date. (ii) Income from short term investments Income from short term investments is recognised as it accrues, using the effective profit method in profit or loss. (iii) Gain on sale of investments The realised gain on sale of investments is measured as the difference between the net disposal proceeds and the carrying amount of the investments. The carrying amount for determining the realised gain on sale of investments is based on the weighted average cost method and where applicable adjusted for accretion for discount and amortisation of premium. (c) Cash and cash equivalents Cash and cash equivalents consist of cash at bank and short term placements with licensed financial institutions which have insignificant risk of changes in fair value with original maturities of less than 30 days, and are used by the Fund in the management of its short term commitments. Cash and cash equivalents are categorised and measured as financing and receivables in accordance with Note 3(a)(ii)(b). 44