Fund Information Fund Name (PBICPF) Fund Category Wholesale Islamic Money Market Fund Investment Objective To provide liquidity and current income, while maintaining capital stability. Risk Facrs The specific risks of the Fund include: Credit risk: Credit risk relates the creditworthiness of the issuer of the instrument which is dependent on the issuer s ability make timely payments of profit and/or principal. In the event that the issuer of the instrument defaults in the payment of profi t and/or principal, the value of the Fund may be adversely affected. Interest rate risk: The returns of the Fund moves in tandem with fluctuations in interest rates. If interest rates fall, the returns of the Fund will be lower correspondingly. Fund Performance Benchmark The benchmark for PBICPF is based on the 1-Month Islamic Interbank Money Market (IIMM) rate provided by Bank Negara Malaysia, which is published in the business sections of the daily newspapers. The 1-Month period is suitable for benchmarking as the Fund is likely maintain a substantial portion of its investments in instruments that mature in the near term for liquidity requirements such that on a weighted average basis the Fund as a whole may have a maturity profile of approximately 1 month. Fund Distribution Policy Monthly Breakdown of Unitholdings of PBICPF as at 31 July 2017 Size of holdings No. of % of No. of units unitholders unitholders held (million) 5,000 and below - - - 5,001 10,000 - - - 10,001 50,000 - - - 50,001 500,000 7 25.00 2 500,001 and above 21 75.00 32 Total 28 100.00 34 Note: Excluding Manager s Sck.
Fund Performance Fund Performance Average Total Return for the Following Years Ended 31 July 2017 Average Total Return of PBICPF (%) 1 Year 2.95 3 Years 3.31 5 Years 3.28 Annual Total Return for the Financial Years Ended 31 January Year 2017 2016 2015 2014 2013 PBICPF (%) 3.13 3.40 3.06 2.86 2.94 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 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 Other Performance Data for the Past Three Financial Periods Ended 31 July 2017 2016 2015 Unit Prices (MYR)* Highest NAV per unit for the period 1.0026 1.0029 1.0029 Lowest NAV per unit for the period 1.0001 1.0000 1.0001 Net Asset Value (NAV) and Units in Circulation (UIC) as at the End of the Period Total NAV (MYR 000) 33,797 719,155 1,470,053 UIC (in 000) 33,797 719,151 1,470,091 NAV per unit (MYR) 1.0000 1.0000 1.0000 Total Return for the Period (%) 1.49 1.67 1.68 Capital growth (%) - - - Income (%) 1.49 1.67 1.68 Management Expense Ratio (%) 0.39 0.32 0.35 Portfolio Turnover Ratio (time) 0.03-0.003 * All prices quoted are ex-. 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. The Management Expense Ratio for the financial period 2017 rose 0.39% from 0.32% in the previous fi nancial period mainly due lower 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. - 1 Distribution and Unit Split For the financial period ended 31 July 2017 Distribution per unit Date of Gross (Sen) Net (Sen) Unit split 31.7.17 0.25 0.25-30.6.17 0.25 0.25-31.5.17 0.25 0.25-28.4.17 0.24 0.24-31.3.17 0.26 0.26-28.2.17 0.23 0.23 - For the financial period ended 31 July 2016 Distribution per unit Date of Gross (Sen) Net (Sen) Unit split 29.7.16 0.25 0.25-30.6.16 0.27 0.27-31.5.16 0.29 0.29-29.4.16 0.28 0.28-31.3.16 0.29 0.29-29.2.16 0.27 0.27 - For the financial period ended 31 July 2015 Distribution per unit Date of Gross (Sen) Net (Sen) Unit split 31.7.15 0.29 0.29-30.6.15 0.27 0.27-29.5.15 0.29 0.29-30.4.15 0.28 0.28-31.3.15 0.28 0.28-27.2.15 0.25 0.25 - Impact on NAV Arising from Distribution (Monthly) for the Financial Periods For the financial period ended 31 July 2017 NAV Distribution NAV before after Date of ( Sen per unit ) 31.7.17 100.25 (0.25) 100.00 30.6.17 100.25 (0.25) 100.00 31.5.17 100.25 (0.25) 100.00 28.4.17 100.24 (0.24) 100.00 31.3.17 100.26 (0.26) 100.00 28.2.17 100.23 (0.23) 100.00
Fund Performance Statement Of Distribution Of Returns Impact on NAV Arising from Distribution (Monthly) for the Financial Periods (cont d) For the financial period ended 31 July 2016 NAV Distribution NAV before after Date of ( Sen per unit ) 29.7.16 100.25 (0.25) 100.00 30.6.16 100.27 (0.27) 100.00 31.5.16 100.28 (0.29) 99.99 29.4.16 100.28 (0.28) 100.00 31.3.16 100.29 (0.29) 100.00 29.2.16 100.27 (0.27) 100.00 For the financial period ended 31 July 2015 NAV Distribution NAV before after Date of ( Sen per unit ) 31.7.15 100.29 (0.29) 100.00 30.6.15 100.27 (0.27) 100.00 29.5.15 100.29 (0.29) 100.00 30.4.15 100.29 (0.28) 100.01 31.3.15 100.28 (0.28) 100.00 27.2.15 100.26 (0.25) 100.01 Gross Net Total Distributions Distribution Distribution Returns Sen per unit 1st Interim, February 2017 0.23 0.23 0.23 2nd Interim, March 2017 0.26 0.26 0.49 3rd Interim, April 2017 0.24 0.24 0.73 4th Interim, May 2017 0.25 0.25 0.98 5th Interim, June 2017 0.25 0.25 1.23 6th Interim, July 2017 0.25 0.25 1.48 Effacts of Distribution on NAV per unit before and after Distribution: Before After Distributions Distribution Distribution MYR per unit 1st Interim, February 2017 1.0023 1.0000 2nd Interim, March 2017 1.0026 1.0000 3rd Interim, April 2017 1.0024 1.0000 4th Interim, May 2017 1.0025 1.0000 5th Interim, June 2017 1.0025 1.0000 6th Interim, July 2017 1.0025 1.0000 Past performance is not necessarily indicative of future performance and unit prices and investment returns may go down, as well as up. Asset Allocation for the Past Three Financial Periods As at 31 July (Per Cent of Net Asset Value) 2017 2016 2015 % % % ISLAMIC MONEY MARKET INSTRUMENTS Negotiable Islamic Debt Certificate 8.6-14.5 TOTAL ISLAMIC MONEY MARKET INSTRUMENTS 8.6-14.5 SHARIAH-BASED PLACEMENTS WITH FINANCIAL INSTITUTIONS 90.2 100.3 85.1 OTHER ASSETS & LIABILITIES 1.2-0.3 0.4
Manager s Report Manager s Report Overview This Interim Report covers the financial period from 1 February 2017 31 July 2017. (PBICPF or the Fund) aims provide liquidity and current income, while maintaining capital stability. The investments of the Fund are largely confined short-term Islamic money market instruments that are highly liquid and mature within 365 days or 1 year. For the fi nancial period under review, PBICPF registered a return of +1.49% as compared its Benchmark which registered a return of +1.59%. For the fi ve financial years ended 31 July 2017, the Fund generated a tal return of +16.40% as compared its Benchmark s return of +17.67% over the same period. Returns from Start of Period 20% 15% 10% 5% 0% Performance of PBICPF from 31 July 2012 31 July 2017 PBICPF BENCHMARK -5% 2012 2013 2014 2015 2016 2017 The Benchmark for PBICPF is based on the 1-Month Islamic Interbank Money Market Rate (1M-IIMMR) provided by Bank Negara Malaysia (BNM). Income Distribution and Impact on NAV Arising from Distribution The tal cumulative gross of 1.48 sen per unit (tax-exempt) for the fi nancial period ended 31 July 2017 had the effect of reducing the Net Asset Value (NAV) of the Fund after. For example, the net of 0.25 sen per unit (tax-exempt) declared for the month of July 2017 has reduced the NAV per unit of the Fund RM1.0000 from RM1.0025 after. Effect of Distribution Reinvestment on Portfolio Exposures 31-Jul-17 Before Distribution After Distribution Reinvestment* Reinvestment* Islamic Money Market 100.0% 100.0% * Assumes full reinvestment. Change in Portfolio Exposures from 31-Jan-17 31-Jul-17 Average 31-Jan-17 31-Jul-17 Change Exposure Islamic Money Market 100.0% 100.0% 0.0% 100.00% Returns Breakdown by Asset Class Market / Returns On Benchmark Benchmark Average Attributed Investments Returns Index Used Exposure Returns Islamic Money Market 1.70% 1.59% 1M-IIMMR 100.00% 1.70% less: Expenses -0.21% Total Net Return for the Period 1.49% 1M-IIMMR = 1-Month Islamic Interbank Money Market Rate Islamic Money Market Portfolio Review For the fi nancial period under review, the Fund s Islamic money market portfolio generated a return of +1.70% as compared its Benchmark which registered a return of +1.59% over the same period. Islamic Money Market Review BNM kept the Overnight Policy Rate (OPR) unchanged at 3.00% during its fourth meeting of the year in July 2017. The current monetary policy stance is accommodative and supportive of domestic economic activity. Malaysia s headline infl ation rate moderated 3.6% in June 2017 from 3.9% in May 2017, due mainly a decline in transportation costs amid lower fuel prices. The domestic banking system s liquidity remains suffi cient with the 1M-IIMMR falling marginally by 8 basis points (bps) 3.22% during the fi nancial period under review. Economic Review Malaysia s GDP growth gained pace from 4.2% in 2016 5.6% in 1Q 2017 on the back of higher domestic demand and export growth. Growth in the services secr edged up from 5.6% in 2016 5.8% in 1Q 2017. Meanwhile, growth in manufacturing activities increased from 4.4% 5.6% over the same period.
Manager s Report Extracts Of Financial Statements Malaysia s export growth accelerated 23.3% in the first five months of 2017 from 1.1% in 2016 due mainly higher exports of electrical and electronic products. Import growth surged 27.7% from 1.9% over the same period. Malaysia s cumulative trade surplus narrowed RM33.0 billion in the first five months of 2017 compared RM36.3 billion for the corresponding period of the prior year. Due capital inflows, Malaysia s foreign reserves rose US$98.9 billion as at end-june 2017 compared US$97.2 billion a year ago. Malaysia s inflation rate rose 4.1% in 1H 2017 from 2.1% in 2016 amid higher transportation costs arising from elevated fuel prices. BNM maintained the OPR at 3.00% support economic activities. Loans growth increased 5.7% in 1H 2017 from 5.3% in 2016 on the back of higher demand from the manufacturing and construction secrs. Money Market Outlook and Investment Strategy On the domestic front, Malaysia s GDP growth is projected increase from 4.2% in 2016 4.7% in 2017 amid an anticipated strengthening of domestic demand. This 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 widen RM40.3 billion (3.0% of GDP) in 2017 from RM38.4 billion (3.1% of GDP) in 2016, with revenue expanding by 3.4% RM219.7 billion. Meanwhile, operating expenditure and net development expenditure for 2017 are expected register growth rates of 2.2% RM214.8 billion and 11.4% RM45.3 billion respectively. BNM is expected maintain a moderately accommodative monetary policy in order support domestic demand and sustain economic growth. Based on the above outlook, the Fund will continue manage its portfolio of Islamic money market instruments provide liquidity and current income, while maintaining capital stability. Notes: Q = Quarter H = Half The following pages are extracts of the audited fi nancial statements of the Fund for the fi nancial period ended 31 July 2017. The full set of the audited financial statements gether with the Independent Audirs Report is available upon request without charge. Statement of Assets and Liabilities As at 31 July 2017 31.7.2017 31.1.2017 MYR 000 MYR 000 Assets Investments 2,919 - Due from the Manager, net 239 - Other receivables 205 121 Shariah-based placements with fi nancial institutions 30,487 59,680 Cash at bank 51 51 33,901 59,852 Liabilities Due the Manager, net - 17 Due the Trustee 6 1 Other payables 14 17 Distribution payable 84 149 104 184 Total net assets 33,797 59,668 Net asset value ( NAV ) attributable unitholders (Total equity) 33,797 59,668 Units in circulation (in 000) 33,797 59,669 NAV per unit, ex- (in MYR) 1.0000 1.0000 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, PBICPF has not received goods or services by way of soft commissions.
Extracts Of Financial Statements (cont d) Extracts Of Financial Statements (cont d) Statement of Income and Expenditure 1.2.2017 1.2.2016 31.7.2017 31.7.2016 MYR 000 MYR 000 Income Profi t from Shariah-based placements 751 15,317 Accretion of discount, net of amortisation of premium 1-752 15,317 Less: Expenses Trustee s fee 10 89 Management fee 71 1,330 Audit fee 3 3 Tax agent s fee 1 1 Administrative fees and expenses 7 12 92 1,435 Net income before taxation 660 13,882 Taxation - - Net income after taxation 660 13,882 Net income after taxation is made up as follows: Realised 660 13,882 Unrealised - - 660 13,882 Statement of Changes in Net Asset Value Unitholders Retained capital earnings Total MYR 000 MYR 000 MYR 000 As at 1 February 2016 1,090,081 1,688 1,091,769 Creation of units 90,165-90,165 Cancellation of units (463,612) - (463,612) Net income after taxation - 13,882 13,882 Distributions - (13,049) (13,049) As at 31 July 2016 716,634 2,521 719,155 As at 1 February 2017 57,057 2,611 59,668 Creation of units 30,142-30,142 Cancellation of units (56,055) - (56,055) Net income after taxation - 660 660 Distributions - (618) (618) As at 31 July 2017 31,144 2,653 33,797 Distributions for the financial period 618 13,049
Extracts Of Financial Statements (cont d) Statement of Cash Flows 1.2.2017 1.2.2016 31.7.2017 31.7.2016 MYR 000 MYR 000 Cash flows from operating activities Purchase of investments (2,918) - Maturity of Shariah-based placements 1,320,346 20,151,010 Shariah-based placements (1,291,153) (19,797,792) Profi t from Shariah-based placements received 667 36,081 Trustee s fee paid (5) (96) Management fee paid (77) (1,431) Audit fee paid (4) (4) Payment of other fees and expenses (10) (22) Net cash inflow from operating activities 26,846 387,746 Cash flows from financing activities Cash proceeds from units created 29,892 90,165 Cash paid on units cancelled (56,055) (463,494) Distributions paid (683) (14,417) Net cash outflow from financing activities (26,846) (387,746) Cash and cash equivalents at the beginning of the financial period 51 51 Cash and cash equivalents at the end of the financial period 51 51