REPORT QUARTERLY For The Financial Period From 1 January 2018 To 30 June 2018 PACIFIC ISLAMIC CASH FUND www.pacificmutual.com.my PACIFIC MUTUAL FUND BHD (336059-U) A member of the OCBC Group
CONTENTS Fund Information Fund Performance Market Review Fund Review Fund Returns Asset Allocation Income Distribution Shariah Adviser's Report Financial Statements Unaudited Statement Of Financial Position Unaudited Statement Of Comprehensive Income 2 3 6 7 8
FUND INFORMATION As at 30 June 2018 Name Of Fund : Manager Of Fund : Launch Date : Pacific Islamic Cash Fund Pacific Mutual Fund Bhd (336059-U) 13 January 2016 The Fund will continue its operations until terminated as provided under Section 25 of the Deed. Category Of Fund : Type Of Fund : Investment Objective : Islamic money market (wholesale) Income Pacific Islamic Cash Fund aims to provide income, liquidity and stability of capital by investing in a portfolio of Islamic deposits. Income is in reference to the Fund s distribution, which will be in the form of cash or units. Performance Benchmark : Distribution Policy : Fund Size : Maybank Islamic Overnight Deposit Rate Distribution of income, if any, at least on a monthly basis. 353.95 million units 2
FUND PERFORMANCE For The Financial Period From 1 January 2018 To 30 June 2018 Market Review The local bond yields closed marginally weaker during the interim period on the back of weaker Treasuries and the overnight policy rate hike in January. The Monetary Policy Committee (MPC) delivered a 25 basis points hike in the overnight policy rate to 3.25% in the January meeting, the first hike since July 2014. In the accompanying statement, Bank Negara Malaysia cited the need to normalize monetary accommodation in light of the steady economic growth and in a bid to pre-empt the build-up of risks as a result of prolonged low interest rates. Thereafter, local yields were well-supported, tracking the stronger Ringgit against the USD which subsequently traded sub RM3.900 to the Dollar as at end-march. Bank Negara released the 2017 Annual Report with revisions in growth projections to 5.50-6.00% in 2018 on stronger global growth prospects and positive spill over to the domestic economy. Additionally, a lower inflation forecast of 2.00-3.00% was introduced. Towards mid second quarter 2018, the local bond market saw a general upward trend across the curve as sentiment was largely affected by rising Treasury yields coupled with the post-election sell-off. Market players were cautious over the policy direction of the new government and more importantly its implications on the Ringgit and fiscal impact from the implementation of the new government s key election proposals such as abolishment of GST and re-introduction of fuel subsidies. Flows were generally thin with onshore investors in the shorter-end of the yield curve while offshore investors were sellers across the curve. Meanwhile, Bank Negara maintained overnight policy rate at 3.25% at the MPC meeting in May and expects the economy to remain on a steady growth path amid moderating inflation trend. The yield curve shifted in a near parallel move with the 3-year Malaysian Government Securities (MGS) and 10-year MGS increasing by 30 basis points and 29 basis points respectively to close at 3.62% and 4.20%. Fund Review Total NAV of the Pacific Islamic Cash Fund increased to RM353,939,307 while NAV per unit was maintained at par value due to daily reset of distribution payments. As at 30 June 2018, the portfolio was 100% invested in commodity murabahah deposits. During the period, the Fund outperformed its benchmark by 81 basis points returning 1.68% while the benchmark returned 0.87%. Outperformance was due to active allocation of tenures in view of minimizing early termination of deposit placements prior to its contractual maturity. During the period, the Fund benefited from higher cash deposit rates following the 25 basis points overnight policy rate hike in January. Thereafter, rates were seen trading steadily in range. 3
Fund Returns 1.1.2018 to 31.3.2018 1.4.2018 to 30.6.2018 1 Year's Period (1.7.2017 to 30.6.2018) Financial YTD (1.1.2018 to 30.6.2018) Since Launch (13.1.2016 to 30.6.2018) Total Returns Pacific Islamic Cash Fund 0.85% 0.82% 3.45% 1.68% 9.08% Benchmark 0.43% 0.44% 1.75% 0.87% 4.43% Source: Lipper, Maybank Asset Allocation As At 30 June 2018 Cash And Islamic Money Market Instruments 100.00% 4
Income Distribution Gross distribution per unit Net distribution per unit NAV per unit (as at 30 June 2018) Pacific Islamic Cash Fund 1.66 sen (January 2018: 0.31 sen February 2018: 0.27 sen March 2018: 0.27 sen April 2018: 0.28 sen May 2018: 0.28 sen June 2018: 0.25 sen) 1.66 sen (January 2018: 0.31 sen February 2018: 0.27 sen March 2018: 0.27 sen April 2018: 0.28 sen May 2018: 0.28 sen June 2018: 0.25 sen) RM1.0000 5
SHARIAH ADVISER'S REPORT TO THE UNITHOLDERS OF PACIFIC ISLAMIC CASH FUND We have acted as the Shariah Adviser of PACIFIC ISLAMIC CASH FUND. Our responsibility is to ensure that the procedures and processes employed by its fund manager, PACIFIC MUTUAL FUND BHD as well as the provisions of the Deed dated 5 January 2016, First Supplemental Deed dated 29 August 2016, Second Supplemental Deed dated 22 March 2017 and its Third Supplemental Deed dated 12 April 2017 are all in accordance with Shariah. In our opinion based on the portfolio reports submitted to us, PACIFIC MUTUAL FUND BHD has managed and adminstered PACIFIC ISLAMIC CASH FUND in accordance with Shariah and has complied with applicable guidelines, rulings and decisions issued by the Shariah Advisory Council of the Securities Commission Malaysia ("SACSC") for the financial period from 1 January 2018 to 30 June 2018. We confirm that the cash deposits of PACIFIC ISLAMIC CASH FUND have been placed with Islamic Financial Institutions approved by Bank Negara Malaysia. For BIMB SECURITIES SDN BHD IR. DR. MUHAMAD FUAD ABDULLAH Designated Shariah Person Kuala Lumpur, Malaysia 1 August 2018 6
UNAUDITED STATEMENT OF FINANCIAL POSITION As at 30 June 2018 Assets Profit receivable Amount due from Manager Cash and cash equivalents Total Assets Liabilities Amount due to Manager Other payables Distribution payable Total Liabilities Net Asset Value Of The Fund Equity Unitholders' capital Retained earnings Net Asset Value Attributable To Unitholders Total Equity And Liabilities Number Of Units In Circulation (Units) Net Asset Value Per Unit (ex-distribution) 2018 RM 644,144 90,054 388,341,678 389,075,876 35,088,747 14,862 32,960 35,136,569 353,939,307 353,902,910 36,397 353,939,307 389,075,876 353,947,342 RM1.0000 7
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME For The Financial Period From 1 January 2018 To 30 June 2018 Shariah-Compliant Investment Income Profit from Islamic money market instruments Expenses Audit fee Tax agent's fee Manager's fee Trustee's fee Administration expenses Net Income Before Taxation Taxation Net Income After Taxation Total Comprehensive Income Total Comprehensive Income Is Made Up As Follows: Realised Unrealised 1.1.2018 to 30.6.2018 RM 5,996,392 3,522 1,241 415,654 33,252 28,848 482,517 5,513,875-5,513,875 5,513,875 5,513,875-5,513,875 8
Growing Together To reach out for excellence, to persevere, to mutually trust and support. That s the essence of growing together with Pacific Mutual for a brighter future. PACIFIC MUTUAL FUND BHD (336059-U) A member of the OCBC Group 1001, Level 10, Uptown 1, No. 1 Jalan SS21/58, Damansara Uptown, 47400 Petaling Jaya, Selangor Tel: 03-7725 9877 Fax: 03-7725 9860 E-mail: ib.support@pacificmutual.com.my Website: www.pacificmutual.com.my BRANCHES Pulau Pinang 04-644 7979 penang@pacificmutual.com.my Perak 05-242 4322 ipoh@pacificmutual.com.my Sarawak 082-233 933 kuching@pacificmutual.com.my Sabah 088-251 088 kk@pacificmutual.com.my INSTITUTIONAL UNIT TRUST ADVISERS ifast Capital Sdn Bhd (782978-H) Tel: 03-2149 0600 Phillip Mutual Berhad (570409-K) Tel: 03-2783 0300 Areca Capital Sdn Bhd (740840-D) Tel: 03-7956 3111 Our IUTA may not carry the complete set of our Funds. Investments made via our IUTA may be subject to different terms and conditions. INVESTORS ARE ADVISED TO PROVIDE UPDATED PERSONAL DETAILS TO PACIFIC MUTUAL ON A TIMELY BASIS. YOU MAY UPDATE YOUR DETAILS VIA OUR E-SERVICE AT www.pacificmutual.com.my OR CALL 03-7726 6332 E-MAIL ib.support@pacificmutual.com.my