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BSN DANA AL JADID
1
CONTENTS .................................................................................................................................. PAGE
MANAGER’S REPORT ..........................................................................................................................2
1. FUND INFORMATION ..................................................................................................................2
2. FUND PERFORMANCE .................................................................................................................3
3. MANAGER’S REPORT ..................................................................................................................6
4. STATEMENT BY MANAGER ........................................................................................................ 12
5. TRUSTEE’S REPORT ................................................................................................................... 13
6. SHARIAH ADVISER’S REPORT ..................................................................................................... 14
7. INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS OF .................................................... 15
BSN DANA AL-JADID ......................................................................................................................... 15
8. STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018 ............................................... 18
9. STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31
DECEMBER 2018 ....................................................................................................................... 19
10. STATEMENT OF CHANGES IN NET ASSET VALUE ......................................................................... 20
FOR THE YEAR ENDED 31 DECEMBER 2018 ........................................................................................ 20
11. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2018 ................................... 21
12. NOTES TO THE FINANCIAL STATEMENTS .................................................................................... 22
FOR THE YEAR ENDED 31 DECEMBER 2018 ........................................................................................ 22
BSN DANA AL JADID
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MANAGER’S REPORT
Dear Unit Holders, Permodalan BSN Berhad act as a Manager for fund BSN Dana Al-Jadid and AmanahRaya Trustees Berhad (ART) act as a Trustee, are pleased to present the Annual Report of BSN Dana Al-Jadid for financial year ended 31 December 2018.
1. FUND INFORMATION
BSN Dana Al-Jadid
Fund Type Growth and Income Fund
Fund Category Equity Fund (Islamic)
Investment Objective
The Fund aims to achieve capital appreciation and income distribution by investing in equity and equity-related securities that comply with Shariah requirements.
Note: The primary focus of the Fund is to offer capital growth.
Performance Benchmark
FTSE Bursa Malaysia EMAS Shariah Index (FBMSHA), based on percentage change of FBMSHA for the period under review.
Distribution Policy Subject to the availability of income, the Manager will distribute income once a year.
Unit Holdings On 31 December 2018, a total of 8,010 people have invested in BSN Dana Al-Jadid. Breakdown of unit holdings are as follows:
Size of Holdings No. of Unitholders No. of Units Held
5,000 and below 4,905 8,624,646
5,001 – 10,000 1,260 8,449,093
10,001 – 50,000 1,607 33,166,241
50,001 – 500,000 235 20,235,538
500,001 and above 3 117,130,968
BSN DANA AL JADID
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2. FUND PERFORMANCE
2.1 Achievement of BSN Dana Al-Jadid For the year 2018, BSN Dana Al-Jadid (“the Fund”) registered a return of -22.59% as compared to its Benchmark’s return of -13.52%, thus underperformed the Benchmark’s return by -9.07%. Towards the end of its financial year, the Fund had undertaken a restructuring exercise in the effort to improve the NAV performance in the future. As a result, the Fund did not declare any dividend distribution. For the period under review, the Fund did not meet its investment objectives of providing investors with a capital appreciation and income distribution. 2.2 Asset Allocation
Asset allocations for BSN Dana Al-Jadid are as follows:
Component of Asset Portfolio %
2018 2017 2016
Shariah-compliant investment in equity market 74.69 95.52 83.25
Cash 25.31 4.48 16.75
Total 100.00 100.00 100.00
2.3 Asset Allocation by Sector
Sector RM
2018 2017 2016
Shariah-compliant investment in equity market :
Construction 532,890 3,313,950 4,247,525
Consumer Products & Services 2,654,625 4,416,400 3,826,463
Energy 2,185,329 2,556,750 403,368
Financial Services 534,000 - -
Health Care 2,214,570 1,758,580 1,466,300
Industrial Products & Services 3,390,892 9,371,534 12,541,554
Plantation 841,200 1,342,000 -
Property 1,043,050 2,553,457 2,871,590
Technology 1,688,751 6,073,871 3,378,506
Telecommunication & Media 2,748,250 2,253,960 2,944,100
Transportation & Logistics 442,200 3,080,350 1,323,000
Utilities 1,455,200 3,361,580 2,867,300
Cash 7,602,692 1,880,320 6,748,854
BSN DANA AL JADID
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2.4 Comparative Financial Information for the Period 3 Years
Matters 2018 2017 2016
Net Asset Value (RM’000) 26,417 41,963 43,089
Net Asset Value per Unit (RM) 0.1388 0.1793 0.1816
Unit In Circulation (‘000) 190,329 234,039 237,239
Selling Price per Unit (RM) Buying Price per Unit (RM)
0.1388 0.1388
0.1793 0.1793
0.1816 0.1816
Selling Price per Unit (High) (RM) Buying Price per Unit (High) (RM)
0.1883 0.1883
0.1965 0.1965
0.2055 0.2055
Selling Price per Unit (Low) (RM) Buying Price per unit (Low) (RM)
0.1363 0.1363
0.1763 0.1763
0.1816 0.1816
Total Fund Return (Growth Capital) (%) -22.59 1.76 -6.26
Total Fund Return(Distribution) (%) - 3.03 4.68
Gross Distribution per Unit (Sen) - 0.55 0.85
Net Distribution per Unit (Sen) - 0.55 0.85
Date of payment - 15/01/2018 16/01/2017
Management Expense Ratio (%) : 2.54 2.75 2.68
Portfolio Turnover Ratio (times) : 1.26 1.35 1.32
2.4.1 Management Expense Ratio
The MER for the financial year is lower than previous financial year mainly due to the increase in expenses cost.
2.4.2 Portfolio Turnover Ratio
The PTR for the financial year is lower than previous financial year mainly due to decrease in average trading activities.
BSN DANA AL JADID
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BASES OF CALCULATION
i. Portfolio Composition
Content portfolio is calculated according to the market price on 31 December 2018.
ii. Net Asset Value (NAV) The net asset value is recognized after deducting the total liabilities of the fund value of total asset value of the Fund. Net Asset Value (NAV) per unit is calculated by dividing the Net
Asset Value of the Fund by the number of units in circulation.
iii. Selling Price per Unit The sale price is the price per unit sold by the Managers to the unit holders taking into account the Net Asset Value at the end of the trading day divided by the number of units in circulation on that day and the service fee does not exceed 3%. This price will then be adjusted to the nearest one cent.
iv. Buying Price per Unit The purchase price per unit is the price already bought by the Managers of unit holders who wish to sell back their investment units at the NAV per unit.
v. Capital Growth
Capital growth is calculated by taking the difference of the purchase price from year to year.
vi. Distribution The distribution of income is the annual gross revenues of:
Gross Dividend X 100
Sale Price on The First Day of the same year
vii. Management Expense Ratio This ratio is the amount of management fees, trustee fees, audit fees, tax agent's fees and other administrative expenses divided by the average Net Asset Value of the Fund calculated on a daily basis.
Fees of the unit trust fund + Recovered expenses of the unit trust fund X 100
Average value of the unit trust fund calculated on a daily basis
viii. Portfolio Turnover Ratio
The calculation is as follows:
(Total acquisitions of the fund for the year + Total disposals of the fund for the year) / 2
Average value of the unit trust fund for the year calculated on a daily basis
Note: Past performance of the Fund is not an indication of its future performance.
Unit prices and investment returns may go down, as well as up.
BSN DANA AL JADID
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3. MANAGER’S REPORT
3.1 Fund and Benchmark Performance For the year 2018, BSN Dana Al-Jadid (“the Fund”) registered a return of -22.59% as compared to its Benchmark’s return of -13.52%, thus underperformed the Benchmark’s return by -9.07%. The selected performance benchmark for the Fund is FBM Emas Shariah Index. Since its investment on 18 June 2008 to 31 December 2018, the Fund registered a total return of -5.22% as compared to its Benchmark’s return of 24.57%, thus underpeformed the Benchmark’s return by 29.79%. Our strategy is to remain focus on companies that can pay out attractive dividend yields and have potential earnings growth over the medium to long-term. As at 31 December 2018, the Fund has 74.69% exposure to Shariah-compliant equities and 25.31% to cash. The total Net Asset Value (NAV) of the Fund is RM26.42 million whereas the NAV per unit is RM0.1388. The fund did not declare any dividend distribution.
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
Jun-0
8
No
v-0
8
Ap
r-09
Sep
-09
Feb
-10
Jul-10
Dec-1
0
May-1
1
Oct-
11
Mar-
12
Aug
-12
Jan-1
3
Jun-1
3
No
v-1
3
Ap
r-14
Sep
-14
Feb
-15
Jul-15
Dec-1
5
May-1
6
Oct-
16
Mar-
17
Aug
-17
Jan-1
8
Jun-1
8
No
v-1
8
Dana Al-Jadid Since Inception
Dana Al-Jadid FTSE BM EMAS Shariah**
BSN DANA AL JADID
7
-40%
-30%
-20%
-10%
0%
10%
20%
30%
2018
2017
2016
2015
2014
2013
YTD
1 m
th
3 m
ths
6 m
ths
9 m
ths
1 y
r
2 y
rs
3 y
rs
4 y
rs
5 y
rs
Sin
ce Incep
tio
n*
Dana Al-Jadid
Dana Al-Jadid FTSE BM EMAS Shariah**
Dana Al-JadidFTSE BM EMAS
Shariah**
2018 -22.59 -13.52
2017 1.76 10.72
2016 -6.77 -6.14
2015 -0.24 2.35
2014 -11.87 -4.17
2013 11.54 13.86
YTD -22.59 -13.52
1 mth -2.60 -1.11
3 mths -11.42 -9.26
6 mths -7.03 -4.86
9 mths -15.37 -13.05
1 yr -22.59 -13.52
2 yrs -21.23 -4.24
3 yrs -26.56 -10.13
4 yrs -26.74 -8.02
5 yrs -35.43 -11.85
Since Inception* -5.22 24.57
* starts from 18 June 2008
BSN Dana Al-Jadid
BSN DANA AL JADID
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Source: All performance figures have been verified by Novagni Analytics and Advisory Sdn. Bhd.
Note:Past performance of the Fund is not an indication of its future performance.
Unit prices and investment returns may go down, as well as up.
-25%
-20%
-15%
-10%
-5%
0%
5%
1 year 2 years 3 years 4 years 5 years SinceInception
Fund Benchmark
BSN Dana Al-Jadid Average Total Return (%) as at 31 December 2018
1 year 2 years 3 years 4 years 5 years SinceInception
Fund -22.59 -11.25 -9.78 -7.48 -8.38 -0.51
Benchmark -13.52 -2.15 -3.50 -2.07 -2.49 2.11
Average Total Return
-40%
-30%
-20%
-10%
0%
10%
20%
30%
1 year 2 years 3 years 4 years 5 years Since Inception
Fund Benchmark
BSN Dana Al-Jadid Annual Total Return (%) as at 31 December 2018
1 year 2 years 3 years 4 years 5 years Since Inception
Fund -22.59 -21.23 -26.56 -26.74 -35.43 -5.22
Benchmark -13.52 -4.24 -10.13 -8.02 -11.85 24.57
Annual Total Return
BSN DANA AL JADID
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3.2 Investment Policy
The policy for BSN Al-Jadid is to invest in permitted investment, especially into Shariah-compliant shares which are listed on Bursa Malaysia and also into other type of Shariah-compliant instruments, in line with Securities Commission’s Guidelines on Unit Trust Funds.
3.3 Economic and Market Review
3.3.1 Economic Review
The pace of global growth remains solid in the first half of 2018. However, signs of growth divergence were seen evident across economies. Major and regional economies recorded slower GDP growth in the third quarter of 2018 amid confluence of dragging factors. High frequency indicators show a moderating growth and trade activities across regions. The moderating trend is expected to continue into 2019.
On the domestic front, Malaysia’s GDP growth expands by 4.4% yoy in 3Q18, slightly below market expectations of 4.6% yoy. It was widely expected that the GDP performance to moderate during the quarter, highlighting strong domestic demand and contractions in commodity-based sectors such as agriculture and mining & quarrying. It is the weakest growth in 7-quarters. Among others, tax holiday and stable retail fuel prices boosted growth as domestic demand contributes about 5% of the total growth during the quarter. Moderating inflationary pressure, strengthening domestic demand and accommodative economic policies as well as strong re-exports growth are the anticipated to be major drivers for GDP performance in the last quarter of 2018. Amid a slowdown in global and domestic economic growth, we expect Bank Negara to maintain its accommodative level in 2018 and maintain the OPR at 3.25% in 2019. We expect domestic economy will continue to expand at a slightly higher pace in 2019. Henceforth, we opine change in monetary stance is not required at this juncture as it would affect the trajectory of domestic growth. In addition, inflationary pressure remains mild as core inflation is likely to remain below 2% yoy in 2019.
3.3.2 Market Review FTSE Bursa Malaysia Emas Shariah Index (FBM Shariah) commenced the period under review at 13,302.92 points and rose to the highest level of 13,898.17 points on 9 January 2018. FBM Shariah dropped to the lowest level of 11,126.49 on 20 December 2018 before closing at 11,504.43 on 31 December 2018. For the period under review, FBM Shariah fell 1,798.49 points or -13.52% while the FBM KLCI fell 106 points or -5.91%. The key surprise for the market in 2018 was Pakatan Harapan’s (PH) victory in GE14; most market players had expected the incumbent Barisan National coalition to hold on to power. The market also did not expect the US to launch a trade war against its trading partners, in particular China. Malaysia’s 3Q18 GDP growth of 4.4% year-on-year was also slower than the 4.5% in 2Q18.
BSN DANA AL JADID
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3.4 Market Outlook and Strategy
Going forward, we expect the market will be volatile in the short to medium term, possibly in a correction mode for most of the time. This is clouded by a slew of external uncertainties with majority of risks being concentrated in 1H19. However, entering 2H19, we could witness a market recovery as uncertainties and risks start to dissipate. Market sentiment could further improve with the possibility of loosening monetary policy and fiscal stimulus introduced by the US and China so as to prevent any global economic downturn or recession.
As market is expected to be volatile going forward, we will continue to assess the overall market situation and wait for best opportunity to re-enter the market. We also believe the current valuation for small cap stocks looks appealing with the FBM Small Cap index is currently trading 8.0x forward PE, which is below its historical mean of 10.4x. Furthermore, the FBM Small Cap index took a hard beating last year which saw the index down 33.7% year-to-date as compared to KLCI which down by only 5.91%. Hence we believe the downside risk for small cap is rather limited. Sector wise, our preferred sectors are oil and gas, rubber gloves, healthcare and plantation. We like the gloves sector, which is expected to benefit from expansion plans and improved demand for gloves, and the oil and gas sector, which offers good upside potential, either because they will benefit from higher crude oil prices via a higher order book or see earnings growth from expansion. We like healthcare for their defensive earnings quality and bright long-term growth prospects. We also believe that the move by the Indian government to cut tariff on palm oil imports will boost the sentiment for plantation sector.
3.5 Distribution of Income
The management has decided no dividend for year 2018.
3.6 Policy on Rebates and Soft Commissions
For the year ended 31 December 2018, the Manager received soft commission from brokers in the form of research materials during the financial year under review. 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 material that assist in the decision-making process relating to the Fund’s investment may be retained by the Manager.
BSN DANA AL JADID
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3.7 Investment
Mark up/
Cost At Purchase Sold down to Value At
01.01.2018 At Cost At Cost market value 31.12.2018
Sector
RM RM RM RM RM
Construction 3,771,430 549,472 (3,771,430) (16,582) 532,890
Consumer Products 4,810,897 3,838,331 (5,867,331) (127,272) 2,654,625
Energy 2,789,065 5,833,532 (6,267,461) (169,806) 2,185,329
Financial Services - 624,635 - (90,635) 534,000
Health Care 1,998,266 2,164,639 (1,998,266) 49,931 2,214,570
Industrial Products 12,147,000 6,430,566 (15,260,653) 73,980 3,390,892
Plantation 1,242,111 797,698 (1,242,111) 43,502 841,200
Property 2,896,762 1,930,138 (3,714,548) (69,302) 1,043,050
Technology 6,398,637 4,497,653 (9,007,753) (199,786) 1,688,751
Telecommunication 2,208,411 2,883,770 (2,543,682) 199,750 2,748,250
Transportation 3,343,505 1,156,853 (4,090,808) 32,650 442,200
Utilities 3,858,177 1,214,648 (3,511,446) (106,179) 1,455,200
45,464,261 31,921,935 (57,275,490) (379,750) 19,730,957
3.8 Separation Unit
There is no separation unit performed for the period until 31 December 2018.
3.9 State of Affairs of the Fund
There is neither any significant change to the state affairs of the Fund nor any circumstances that materially affect any interests of the unit holders during the period under review.
BSN DANA AL JADID
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4. STATEMENT BY MANAGER
We, TAN SRI ABU BAKAR BIN HAJI ABDULLAH and ROSLANI BIN HASHIM, being two of the directors of PERMODALAN BSN BERHAD, do hereby state that, in the opinion of the Manager, the accompanying financial statements set out on pages 18 to 44 are drawn up in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards so as to give a true and fair view of the financial position of BSN DANA AL-JADID as at 31 December 2018 and of its financial performance and cash flows for the financial year ended on that date and comply with the requirements of the Deed.
Signed in accordance with a resolution of the directors of the Manager
TAN SRI ABU BAKAR BIN HAJI ABDULLAH Director
ROSLANI BIN HASHIM Director
Kuala Lumpur Date : 14 February 2019
BSN DANA AL JADID
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5. TRUSTEE’S REPORT For The Financial Year Ended 31 December 2018 To the Unit Holders of BSN DANA AL-JADID
We, AMANAHRAYA TRUSTEES BERHAD, have acted as Trustee of BSN DANA AL-JADID for the financial year ended 31 December 2018. In our opinion, PERMODALAN BSN BERHAD, the Manager, has operated and managed BSN DANA AL-JADID in accordance with the limitations imposed on the investment powers of the management company under the Deed, securities laws and the applicable Guidelines on Unit Trust Funds during the financial year then ended. We are also of the opinion that: (a) Valuation and pricing is carried out in accordance with the Deed and any regulatory
requirement; and
(b) Cancellation of units are carried out in accordance with the Deed and any regulatory requirement.
Yours faithfully AMANAHRAYA TRUSTEES BERHAD
HABSAH BINTI BAKAR
Chief Executive Officer
Kuala Lumpur, Malaysia Date : 11 February 2019
BSN DANA AL JADID
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6. SHARIAH ADVISER’S REPORT
To the Unitholders of BSN DANA AL-JADID We have acted as the Shariah Adviser of BSN DANA AL-JADID. Our responsibility is to ensure that the procedures and processes employed by PERMODALAN BSN BERHAD are in accordance with Shariah principles. In our opinion, PERMODALAN BSN BERHAD has managed and administered BSN DANA AL-JADID in accordance with Shariah principles and complied with applicable guidelines, rulings and decisions issued by the Securities Commission pertaining to Shariah matters for the financial year ended 31 December 2018. In addition, we also confirm that the investment portfolio of BSN DANA AL-JADID comprises instruments which have been classified as Shariah-compliant by the Shariah Advisory Council of the Securities Commission and the Shariah Advisory Council of Bank Negara Malaysia. As for the instruments which are not classified as Shariah-compliant by the Shariah Advisory Council of the Securities Commission and the Shariah Advisory Council of Bank Negara Malaysia, we have reviewed the said instruments and opine that these instruments are designated as Shariah-compliant. For and on behalf of the Shariah Adviser IBFIM
NAZMI ASHRAF BIN MOHD NAZIM Consultant (Shariah) /Designated Person Responsible for Shariah Advisory Kuala Lumpur Date: 14 February 2019
BSN DANA AL JADID
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7. INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS OF BSN DANA AL-JADID
Report on the Financial Statements
Opinion
We have audited the financial statements of BSN DANA AL-JADID, which comprise the statement of financial position as at 31 December 2018, and statement of profit or loss and other comprehensive income, statement of changes in equity value and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 18 to 44.
In our opinion, the financial statements set out on pages 18 to 44 give a true and fair view of the financial position of the Fund as at 31 December 2018 and of its financial performance, changes in equity and cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the Securities Commission’s Guidelines on Unit Trust Funds in Malaysia.
We have also verified the Management Expenses Ratio and Portfolio Turnover Ratio as disclosed
in Notes 16 and 17 of the financial statements.
Basis for Opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence and Other Ethical Responsibilities
We are independent of the Fund in accordance with the By-Laws of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”) and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code.
Information Other than the Financial Statements and Auditor’s Report Thereon
The managers of the Fund are responsible for the other information. The other information comprises the Manager’s Report and Statement by Manager, but does not include the financial statements of the Fund and our auditors’ report thereon. Our opinion on the financial statements of the Fund does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements of the Fund, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Fund or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
BSN DANA AL JADID
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Responsibilities of the Managers for the Financial Statements
The Manager of the Fund are responsible for the preparation of financial statements of the Fund that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the Securities Commission’s Guidelines on Unit Trust Funds in Malaysia. The Manager are also responsible for such internal control as the Manager determine is necessary to enable the preparation of financial statements of the Fund that are free from material misstatement, whether due to fraud or error. The Trustee is responsible for ensuring that the Manager maintains proper accounting and other records as are necessary to enable true and fair presentation of these financial statements.
Auditors’ Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements of the Fund as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements of the
Fund, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
• Evaluate the overall presentation, structure and content of the financial statements of
the Fund, including the disclosures, and whether the financial statements represent
the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the Manager regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
BSN DANA AL JADID
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Other Matters
This report is made solely to the unit holders of the Fund, as a body, in accordance with the Securities Commission’s Guidelines on Unit Trust Funds in Malaysia and for no other purposes. We do not assume responsibility to any other person for the contents of this report.
JAMAL, AMIN & PARTNERS AHMAD HILMY BIN JOHARI (No : AF 1067) (No: 2977/03/18 (J)) Chartered Accountants Chartered Accountant
Date : 14 February 2019
Kuala Lumpur
BSN DANA AL JADID
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8. STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018 2018 2017 NOTE RM RM ASSETS SHARIAH-COMPLIANT INVESTMENTS
Quoted Shariah-compliant equity investments 4 19,730,957 40,082,432
19,730,957 40,082,432 OTHER ASSETS
Islamic deposit with licensed financial institutions 5 7,595,000 3,280,000 Dividend receivable 63,948 79,117 Profit receivable 2,540 1,152 Bank balance 5,151 5,748
7,666,639 3,366,017
TOTAL ASSETS 27,397,596 43,448,449
LIABILITIES
Amount owing to Manager 47,837 144,377 Amount owing to Trustee 1,813 2,836 Amount owing to Stockbroking Companies 886,938 - Distribution payable - 1,287,215 Other payables and accruals 43,358 46,011
TOTAL LIABILITIES 979,946 1,480,439 EQUITY
Unitholders’ Contribution 7 52,335,236 59,167,722 Accumulated losses 8 (25,917,586) (17,199,712)
TOTAL EQUITY 26,417,650 41,968,010
TOTAL EQUITY AND LIABILITIES 27,397,596 43,448,449
UNITS IN CIRCULATION 7 190,328,570 234,039,000
NET ASSET VALUE PER UNIT (ex-distribution) 0.1388 0.1793
(The accompanying notes form an integral part of the financial statements)
BSN DANA AL JADID
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9. STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2018
2018 2017 NOTE RM RM INVESTMENT INCOME Net (loss) / gain on financial assets at fair value through profit or loss :
-Realised (loss) / gain on sale of Shariah-compliant investment (13,889,235) 1,246,064 -Unrealised gain / (loss) on changes in fair value of investment 5,002,080 (502,615) Dividend income 876,608 944,193 Profit from Islamic deposit 190,983 315,463 Other Income - 72,220
(7,819,564) 2,075,325 LESS : EXPENSES
Managers’ fee 9 550,044 719,642 Trustee’s fee 10 29,336 38,381 Tax agent’s fee 4,800 4,800 Administrative expenses 300,130 467,302 Auditors’ remuneration 14,000 14,000
898,310 1,244,125
NET (LOSS) / PROFIT BEFORE TAXATION (8,717,874) 831,200 Taxation 11 - -
NET (LOSS) / PROFIT AFTER TAXATION (8,717,874) 831,200
NET (LOSS) / PROFIT AFTER TAXATION IS MADE UP AS FOLLOWS: REALISED (LOSS) / GAIN (13,719,954) 1,333,815 UNREALISED GAIN / (LOSS) 5,002,080 (502,615)
(8,717,874) 831,200
Distribution for the financial year 12 - 1,287,215 Gross distribution per unit (sen) - 0.55 Net distribution per unit (sen) - 0.55
(The accompanying notes form an integral part of the financial statements)
BSN DANA AL JADID
20
10. STATEMENT OF CHANGES IN NET ASSET VALUE FOR THE YEAR ENDED 31 DECEMBER 2018
Note Unitholders’ Contribution
Accumulated Losses
Total Net Asset Value
RM RM RM Balance at 1 January 2017 59,832,942 (16,743,697) 43,089,245 Net gain/(loss) after tax - 831,200 831,200 Contributions by and distribution to
unitholders of the Fund :
- Creation of units 2,027,350 - 2,027,350 - Cancellation of units (2,692,570) - (2,692,570) - Distribution reinvestment - - -
Distribution 12 - (1,287,215) (1,287,215)
Balance at 31 December 2017 59,167,722 (17,199,712) 41,968,010
Balance at 1 January 2018 59,167,722 (17,199,712) 41,968,010 Net gain/(loss) after tax - (8,717,874) (8,717,874) Contributions by and distribution to
unitholders of the Fund :
- Creation of units - - - - Cancellation of units (8,106,254) - (8,106,254) - Distribution reinvestment 1,273,768 - 1,273,768
Distribution 12 - - -
Balance at 31 December 2018 52,335,236 (25,917,586) 26,417,650
(The accompanying notes form an integral part of the financial statements)
BSN DANA AL JADID
21
11. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2018 NOTE 2018 2017 RM RM CASH FLOWS FROM OPERATING AND
INVESTING ACTIVITIES
Proceeds from sale of Shariah-compliant investments 43,386,255 (3,904,149) Purchase of investments (31,034,996) 2,957,963 Dividend received 891,778 937,330 Profit from Islamic deposit 189,595 393,639 Management fee paid (569,234) (633,847) Trustee’s fee paid (30,359) (38,669) Audit fee paid (15,069) (19,259) Tax agent fee paid (4,800) (4,800) Payment of administrative expenses (301,716) (461,063)
Net cash generated / (used in) from investing and operating activities
12,511,454
(772,855)
CASH FLOWS FROM FINANCING ACTIVITIES
Distribution paid (13,447) (2,025,031) Proceeds from creation of units 760,140 2,027,350 Payment of cancellation of units (8,943,744) (2,692,570)
Net cash used in financing activities (8,197,051) (2,690,251)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS
4,314,403
(3,463,106)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 3,285,748
6,748,854
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 13
7,600,151
3,285,748
CASH AND CASH EQUIVALENTS COMPRISE
Islamic deposit with licensed financial institutions 7,595,000 3,280,000
Bank balance 5,151 5,748
7,600,151 3,285,748
(The accompanying notes form an integral part of the financial statements)
BSN DANA AL JADID
22
12. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018
1. THE FUND, PRINCIPAL ACTIVITIES AND THE MANAGER
BSN DANA AL-JADID (hereinafter referred to as ‘the Fund’) was constituted pursuant to the execution of a Deed dated 11 March 2008 and Supplemental Deed dated 23 May 2013 between the Manager, Permodalan BSN Berhad, the Trustee, AmanahRaya Trustees Berhad and registered holders of the Fund. The registered office and principal of business are located at Aras 19, Lot 1, Bangunan TH Selborn, 153 Jalan Tun Razak, 50400 Kuala Lumpur. The principal activity of the Fund is to invest in a portfolio of equity, equity-related securities, debentures, money market instruments and any such other securities and/or instruments as may be determined by the Manager that comply with Shariah requirements. Any material change to the investment objective of the Fund would require the unitholders’ approval. The Fund was launched on 18 June 2008. The Manager, Permodalan BSN Berhad, a company incorporated in Malaysia, is a wholly-owned subsidiary of Bank Simpanan Nasional.The Manager is principally engaged in the management of the Fund and fund management activities. The financial statements were authorised for issue by the Board of Directors of the Manager in accordance with a resolution of the directors dated on 14 February 2019.
2. BASIS OF PREPARATION
The financial statements of the Fund are prepared under the historical cost convention and modified to include other bases of valuation as disclosed in other sections under significant accounting policies, and in compliance with Malaysian Financial Reporting Standards (“MFRSs”) and International Financial Reporting Standards.
2.1. The Fund has not applied in advance the following accounting standards and interpretations (including the consequential amendments) that have been issued by the Malaysian Accounting Standards Board (MASB) but are not yet effective for the current financial year:-
MFRSs and IC Interpretations (including the Consequential Amendments)
Effective Date
Amendments to MFRS 10 and MFRS 128 (2011): Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
Deferred until further notice
3. SIGNIFICANT ACCOUNTING POLICIES
(a) Critical Accounting Estimates and Judgements Estimates and judgements are continually evaluated by the Manager and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and judgements that affect the application of the Fund’s accounting policies and disclosures, and have a significant risk of causing a material adjustment to the carrying amounts of assets, liabilities, income and expenses are discussed below:
BSN DANA AL JADID
23
(i) Impairment of Receivables
An impairment loss is recognised when there is objective evidence that a financial asset is impaired. Management specifically reviews its loan and receivables financial assets and analyses historical bad debts, customer concentrations, customer creditworthiness, current economic trends and changes in the customer payment terms when making a judgment to evaluate the adequacy of the allowance for impairment losses. Where there is objective evidence of impairment, the amount and timing of future cash flows are estimated based on historical loss experience for assets with similar credit risk characteristics. If the expectation is different from the estimation, such difference will impact the carrying value of receivables. The Fund does not have any loan.
(ii) Fair Value Estimates for Certain Financial Assets and Liabilities The Fund carries certain financial assets and liabilities at fair value, which requires extensive use of accounting estimates and judgement. While significant components of fair value measurement were determined using verifiable objective evidence, the amount of changes in fair value would differ if the Fund uses different valuation methodologies. Any changes in fair value of these assets and liabilities would affect profit for the year.
(b) Functional and Presentation Currency
The functional currency of the Fund is the currency of the primary economic environment in which the Fund operates. The financial statements of the Fund are presented in Ringgit Malaysia (“RM”) which is the functional and presentation currency.
(c) Cash and Cash Equivalents Cash and cash equivalents comprise cash at bank, Islamic deposits with financial institutions and short-term, highly liquid Shariah-compliant investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value with original maturity periods of three months or less.
(d) Financial Instruments Financial instruments are recognised in the statement of financial position when the Fund has become a party to the contractual provisions of the instruments. Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement. Profit, dividends, gains and losses relating to a financial instrument classified as a liability are reported as an expense or income. Distributions to holders of financial instruments classified as equity are charged directly to equity. A financial asset is any asset that is cash, an equity instrument of another enterprise, a contractual right to receive cash or another financial asset from another enterprise, or a contractual right to exchange financial assets or financial liabilities with another enterprise under conditions that are potentially favourable to the Fund.
BSN DANA AL JADID
24
A financial liability is any liability that is a contractual obligation to deliver cash or another financial asset to another enterprise, or a contractual obligation to exchange financial assets or financial liabilities with another enterprise under conditions that are potentially unfavourable to the Fund. Financial instruments are offset when the Fund has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously. 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. Financial instruments recognised in the statement of financial position are disclosed in the individual policy statement associated with each item. (i) Financial Assets
On initial recognition, financial assets are classified as either financial assets at fair value through profit or loss, loans and receivables financial assets, held-to-maturity Shariah-compliant investments, or available-for-sale financial assets, as appropriate.
Financial Assets at Fair Value Through Profit or Loss
Financial assets are classified as financial assets at fair value through profit or loss when the financial asset is either held for trading or is designated to eliminate or significantly reduce a measurement or recognition inconsistency that would otherwise arise. Islamic derivatives are also classified as held for trading unless they are designated as hedges. Financial assets at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. Dividend income from this category of financial assets is recognised in profit or loss when the Fund’s right to receive payment is established. Financial assets at fair value through profit or loss could be presented as current or non-current. Financial assets that are held primarily for trading purposes are presented as current whereas financial assets that are not held primarily for trading purposes are presented as current or non-current based on the settlement date.
Held-to-maturity Shariah-compliant Investments Held-to-maturity Shariah-compliant investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the management has the positive intention and ability to hold to maturity. Held-to-maturity Shariah-compliant investments are measured at amortised cost using the effective profit method less any impairment loss, with profit income recognised in profit and loss on an effective yield basis. Held-to-maturity investments are classified as non-current assets, except for those having maturity within 12 months after the reporting date which are classified as current assets.
BSN DANA AL JADID
25
Loans and Receivables Financial Assets Trade receivables and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables financial assets. Loans and receivables financial assets are measured at amortised cost using the effective profit method, less any impairment loss. Profit is recognised by applying the effective profit rate, except for short-term receivables when the recognition of profit would be immaterial. Loans and receivables financial assets are classified as current assets, except for those having settlement dates later than 12 months after the reporting date which are classified as non-current assets.The Fund does not have any loan.
Available-for-sale Financial Assets Available-for-sale financial assets are non-derivative financial assets that are designated in this category or are not classified in any of the other categories. After initial recognition, available-for-sale financial assets are remeasured to their fair values at the end of each reporting period. Gains and losses arising from changes in fair value are recognised in other comprehensive income and accumulated in the fair value reserve, with the exception of impairment losses. On derecognition,the cumulative gain or loss previously accumulated in the fair value reserve is reclassified from equity into profit or loss. Dividends on available-for-sale Shariah-compliant equity instruments are recognised in profit or loss when the Fund’s right to receive payments is established. Investments in Shariah-compliant equity instruments whose fair value cannot be reliably measured are measured at cost less accumulated impairment losses, if any. Available-for-sale financial assets are classified as non-current assets unless they are expected to be realised within 12 months after the reporting date.
(ii) Financial Liabilities
All financial liabilities are initially measured at fair value plus directly attributable transaction costs and subsequently measured at amortised cost using the effective profit method other than those categorised as fair value through profit or loss. Fair value through profit or loss category comprises financial liabilities that are either held for trading or are designated to eliminate or significantly reduce a measurement or recognition inconsistency that would otherwise arise. Islamic derivatives are also classified as held for trading unless they are designated as hedges. Financial liabilities are classified as current liabilities unless the Fund has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
(iii) Unitholders’ Contribution The Unitholders’ contributions to the Fund meet the definition of puttable instruments classified as equity under the MFRS 132.
BSN DANA AL JADID
26
Instruments classified as equity are measured at cost and are not remeasured subsequently. Distribution equalisation is accounted for at the date of creation and cancellation of units of the Fund. It represents the average amount of distributable income or loss included in the creation and cancellation prices of units.
(iv) Derecognition A financial asset or 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. 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.
(e) Impairment of Financial Assets All financial assets (other than those categorised at fair value through profit or loss), are assessed at the end of each reporting period whether there is any objective evidence of impairment as a result of one or more events having an impact on the estimated future cash flows of the asset. For a Shariah-compliant equity instrument, a significant or prolonged decline in the fair value below its cost is considered to be objective evidence of impairment. An impairment loss in respect of held-to-maturity Shariah-compliant investments and loans and receivables financial assets is recognised in profit or loss and is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective profit rate. The Fund does not have any loan. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the financial asset at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.
(f) Net Asset Value Attributable To Unitholders Net asset value attributable to unitholders represents the redemption amount that would be payable if the unitholders exercised the right to redeem units of the Fund at the end of the reporting period.
(g) Income Tax Expense Income tax for the year comprises current and deferred tax.
BSN DANA AL JADID
27
Current tax is the expected amount of income taxes payable in respect of the taxable income for the year and is measured using the tax rates that have been enacted or substantively enacted at the end of the reporting date. Deferred taxation is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised.The carrying amounts of deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient future taxable profits will be available to allow all or part of the deferred tax assets to be utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on the tax rates that have been enacted or substantively enacted at the end of the reporting period. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes relate to the same taxation authority. Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transactions either in other comprehensive income or directly in equity and deferred tax arising from a business combination is included in the resulting goodwill or excess of the acquirer’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities over the business combination costs.
(h) Dividend Distribution Dividend distributions are at the discretion of the Fund. A dividend distribution to the Fund’s Unitholders is accounted for as a deduction from realised reserves except where dividend is sourced out of distribution equalisation which is accounted for as a deduction from Unitholders’ capital. The amount is either refunded to unitholder by way of distribution and/or adjusted accordingly when units are cancelled. Distributions are recognised as liabilities when approved for appropriation.
(i) Related Parties
A party is related to an entity (referred to as the ‘‘reporting entity”) if:- (a) A person or a close member of that person’s family is related to a reporting entity if that
person:-
(i) has control or joint control over the reporting entity; (ii) has significant influence over the reporting entity; or
BSN DANA AL JADID
28
(iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
(b) An entity is related to a reporting entity if any of the following conditions applies:-
(i) The entity and the reporting entity are members of the same group (which
means that each parent, subsidiary and fellow subsidiary is related to the others).
(ii) One entity is an associate or joint venture of the other entity (or an associate or
joint venture of a member of a group of which the other entity is a member). (iii) Both entities are joint ventures of the same third party. (iv) One entity is a joint venture of a third entity and the other entity is an associate
of the third entity. (v) The entity is a post-employment benefit plan for the benefit of employees of
either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.
(vi) The entity is controlled or jointly controlled by a person identified in (a) above. (vii) A person identified in (a)(i) above has significant influence over the entity or is a
member of the key management personnel of the entity (or of a parent of the entity).
Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.
(j) Income Recognition
(i) Realised Gains or Losses on Sale of Shariah-compliant Investments
The realised gain or loss on the sale of Shariah-compliant investments represents the difference between the net disposal proceeds and the carrying amount of the Shariah-compliant investments, computed on the weighted average cost basis.
(ii) Dividend Income
Dividend income from Shariah-compliant investments is recognised when the right to receive dividend payment is established.
(ii) Profit from Islamic deposits Profit from Islamic deposit are recognised on an accrual basis.
(k) Classification of Realised and Unrealised Gains and Losses Unrealised gains and losses comprise change in the fair value of financial instruments for the period and from reversal of prior period’s unrealised gains and losses for financial instruments which were realised (i.e. sold, redeemed or matured) during the financial year.
BSN DANA AL JADID
29
Realised gains and losses on disposals of financial instruments classified as part of “at fair value through profit or loss” represents the difference between the instruments’ initial carrying amount and disposal proceeds.
(l) Operating Segments
For management purposes, the Fund is organised into one main operating segment, which invests in various types of investment including Shariah-compliant equity and sukuk. All of the Fund’s activities are interrelated, and each activity is dependent on the others. Accordingly, all significant decisions are based upon analysis of the Fund as one segment. The financial results from this segment are equivalent to the financial statements of the Fund as a whole.
(m) Fair Value Measurements
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using a valuation technique. The measurement assumes that the transaction takes place either in the principal market or in the absence of a principal market, in the most advantageous market. For non-financial asset, the fair value measurement takes into account a market’s participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. For financial reporting purposes, the fair value measurements are analysed into level 1 to level 3 as follows:- Level 1: Fair value measurements derive from quoted prices (unadjusted) in
active markets for identical assets or liabilities. Level 2: Fair value measurements derive from inputs other than quoted prices
included within level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Fair value measurements derive from valuation techniques that include
inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The transfer of fair value between levels is determined as of the date of the event or change in circumstances that caused the transfer.
BSN DANA AL JADID
30
4. QUOTED SHARIAH-COMPLIANT EQUITY INVESTMENTS
Number of Shares At Cost
At Market Value
% of Net Asset Value At
31 December 2018
RM RM %
(i) Construction Muhibbah Engineering
(M) Berhad 191,000 549,472 532,890 2.02
191,000 549,472 532,890 2.02
(ii) Consumer Products & Services Bermaz Auto Berhad 317,700 667,348 683,055 2.59 Sime Darby Berhad 273,000 713,595 655,200 2.48 UMW Holdings Berhad 165,000 818,443 902,550 3.42 Yoong Onn Corporation
Berhad 418,000 582,511 413,820 1.57
1,173,700 2,781,897 2,654,625 10.06
(iii) Energy Deleum Berhad 546,800 561,484 538,598 2.04 Petron Malaysia
Refining & Marketing Berhad 76,300 551,421 478,401 1.81
Sapura Energy Berhad 1,865,000 688,210 540,850 2.05 Sapura Energy Berhad
RCPS-i 746,000 - - - Sapura Energy Berhad
Right Issue 3,108,333 - - - Sapura Energy Berhad
Warrants 310,833 - - - Serba Dinamik Holdings
Berhad 166,000 554,020 627,480 2.38
6,819,266 2,355,135 2,185,329 8.28
(iv) Financial Services BIMB Holdings Berhad 150,000 624,635 534,000 2.02
150,000 624,635 534,000 2.02
BSN DANA AL JADID
31
Number of Shares At Cost
At Market Value
% of Net Asset Value At
31 December 2018
RM RM % (v) Health Care
(i) (ii) Hartalega Holdings
Berhad
107,000
661,009
656,980
2.49 (iii) IHH Healthcare Berhad 145,000 776,088 781,550 2.96 (iv) Supermax Corporation
Berhad
223,000
727,542
776,040
2.93
475,000 2,164,639 2,214,570 8.38
(vi) Industrial Product & Services Dufu Technology Corp
Berhad
271,500
480,593
559,290
2.12 Lotte Chemical Titan
Holdings Berhad
141,600
711,305
654,192
2.48 Petronas Chemicals
Group Berhad
84,000
626,172
780,360
2.95 P’sahaan Sadur Timah
M’sia (PERSTIMA) Berhad
98,500
424,459
455,070
1.72 SKP Resources Berhad 375,000 420,775 393,750 1.49 V.S Industry Berhad 751,000 653,608 548,230 2.08
1,721,600 3,316,912 3,390,892 12.84
(vii) Plantation Sime Darby Plantation 120,000 528,898 571,200 2.16
Ta Ann Holdings Berhad 100,000 268,800
270,000 1.02
220,000 797,698 841,200 3.18
(viii) Property Malaysian Resources
Corporation Berhad 790,000 558,806 485,850 1.84 Sime Darby Properties 560,000 553,546 557,200 2.11
1,350,000 1,112,352 1,043,050 3.95
BSN DANA AL JADID
32
Number of Shares At Cost
At Market Value
% of Net Asset Value At
31 December 2018
RM RM % (ix) Technology Elsoft Research
Berhad 643,120 779,852 701,001 2.65
Globetronics Technology Berhad
225,000
403,485
393,750
1.49
Inari Amertron Berhad 396,000 705,201 594,000 2.25
1,264,120 1,888,538 1,688,751 6.39
(x) Telecommunication & Media Axiata Group Berhad 277,000 999,842 1,088,610 4.12 Digi.com Berhad 130,000 600,724 585,000 2.21 Telekom Malaysia
Berhad
404,000
947,934
1,074,640
4.07
811,000 2,548,500 2,748,250 10.40
(xi) Transportation & Logistics MISC Berhad 66,000 409,550 442,200 1.67
66,000 409,550 442,200 1.67
(xii) Utilities Petronas Gas Berhad 34,000 675,171 652,800 2.47 Tenaga Nasional
Berhad
59,000
886,208
802,400
3.04
93,000 1,561,379 1,455,200 5.51
TOTAL PORTFOLIO
INVESTMENT AS AT 31 DECEMBER 2018 14,334,686 20,110,707 19,730,957 74.69
UNREALISED LOSS ON CHANGES IN
FAIR VALUE
(379,750)
FAIR VALUE OF QUOTED SHARIAH-COMPLIANT SECURITIES AS AT 31 DECEMBER 2018
19,730,957
BSN DANA AL JADID
33
5. ISLAMIC DEPOSITS WITH LICENSED FINANCIAL INSTITUTIONS The effective rates of the Islamic deposits at the end of the reporting period ranged from 2.90% - 3.20% (2017 – 3.00% to 4.00%) per annum. The Islamic deposits have maturity periods ranging from 1 day to 14 days (2017 - 1 day to 32 days).
6. SHARIAH INFORMATION OF THE FUND The Shariah Adviser confirmed that the investments portfolio of the Fund is Shariah-compliant, which comprises:
(i) Equity securities listed on Bursa Malaysia which have been classified as Shariah-compliant by the Shariah Advisory Council of the Securities Commission of Malaysia; and
(ii) Liquid assets, which are placed in the Shariah-compliant investments and/or instruments.
7. UNITHOLDERS’ CONTRIBUTION
2018 2017 Unit RM Unit RM At 1 January 234,039,000 59,167,722 237,239,000 59,832,942 Creation of units - - 11,000,000 2,027,350 Reinvestment of units 6,870,378 1,273,768 - - Cancellation of units (50,580,808) (8,106,254) (14,200,000) (2,692,570)
At 31 December 190,328,570 52,335,236 234,039,000 59,167,722
8. ACCUMULATED LOSSES
The breakdown of the accumulated losses as at the end of the reporting period is as follows:-
2018 2017
RM RM
Total accumulated losses : Realised losses (25,537,836) (11,817,882) Unrealised losses (379,750) (5,381,830)
At end of the financial year (25,917,586) (17,199,712)
9. MANAGER’S FEE The Manager’s fee is computed based on 1.5% (2017 - 1.5%) per annum of the net asset value of the Fund calculated on a daily basis.
10. TRUSTEE’S FEE The Trustee’s fee is computed based on 0.08% (2017 - 0.08%) per annum of the net asset value calculated on a daily basis.
BSN DANA AL JADID
34
11. TAXATION
2018 2017 RM RM Current tax expense:
- For financial year - - - Underprovision in previous financial years - -
Taxation for the year - -
The taxation charge for the financial year is on taxable dividend income after deducting tax allowable expenses. In accordance with Schedule 6 of the Income Tax Act 1967, profit earned by the Fund is exempted from tax.
A reconciliation of income tax expense applicable to the profit / (loss) before taxation at the statutory tax rate to income tax expense at the effective tax rate of the Fund is as follows:-
2018 2017
RM RM
(Loss) / Profit before taxation (8,717,874) 831,200
Taxation at the rate of 24% (2,092,290) 199,488 Tax effect of income not subject to tax 3,077,195 (601,373) Tax effect of expenses not allowed 7,040 10,363 Unabsorbed Business Loss (991,945) 391,522
Taxation for the year - -
12. DISTRIBUTION FOR THE FINANCIAL YEAR Distribution to unitholders is from the following sources:-
2018 2017 RM RM
Dividend income 876,608 944,193 Profit from Islamic deposits 190,983 315,463 Realised (loss) / gain on disposal of Shariah-compliant investment
(169,281)
1,271,684
898,310 2,531,340 Less: Allowable expenses (898,310) (1,244,125) Taxation - -
Distributions for the financial year - 1,287,215
BSN DANA AL JADID
35
13. CASH AND CASH EQUIVALENTS For the purpose of the statement of cash flows, cash and cash equivalents comprise the following:-
2018
2017
RM
RM
Islamic deposits with licensed financial institutions 7,595,000
3,280,000 Bank Balance 5,151
5,748
7,600,151 3,285,748
14. UNITS HELD BY THE MANAGER AND RELATED PARTIES
2018 2017 Unit RM Unit RM Bank Simpanan Nasional (Holding company of the Manager) (The units are held legally) Permodalan BSN Berhad
112,781,616
15,654,088
112,781,616
20,221,744
(The Manager, wholly owned by BSN) (The units are held legally)
2,722,083 377,825 2,453,687 439,346
115,503,699 16,031,913 115,235,303 20,661,090
BSN DANA AL JADID
36
15. TRANSACTIONS WITH STOCKBROKING COMPANIES Transactions with stock broking companies during the financial year ended are as follows:-
Value of trade
Percentage
of total trades
Brokerage fees and
commissions
Percentage of total fees
and commissions
31.12.2018 RM % RM %
Name of Stockbrokers Affin Hwang Investment Bank Berhad
12,895,756
17.13
29,676
18.43
CIMB Investment Bank Berhad
7,387,515
9.81
18,823
11.69
JF Apex Securities Berhad 11,906,051 15.81 21,474 13.34 M&A Securities Berhad 16,243,741 21.57 29,313 18.21 Maybank Investment Bank Berhad
9,382,972
12.46
21,543
13.38
MIDF Amanah Investment Bank Berhad
9,353,480
12.43
21,498
13.35
RHB Investment Bank Berhad
8,123,872
10.79
18,678
11.60
75,293,387 100.00 161,005 100.00
Value of
trade
Percentage
of total trades
Brokerage fees and
commissions
Percentage of total fees
and commissions
31.12.2017 RM % RM % Name of Stockbrokers
Affin Hwang Investment Bank Berhad
21,727,137 17.62 49,975 17.81
CIMB Investment Bank Berhad
18,231,438 14.78 48,405 17.25
JF Apex Securities Berhad 6,608,679 5.36 11,927 4.25 M&A Securities Berhad 12,484,176 10.12 22,480 8.01 Maybank Investment Bank Berhad
10,440,285 8.47 24,002 8.56
MIDF Amanah Investment Bank Berhad
30,364,592 24.62 69,836 24.89
RHB Investment Bank Berhad
23,464,718 19.03 53,950 19.23
123,321,025 100.00 280,575 100.00
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16. MANAGEMENT EXPENSE RATIO The management expense ratio for the current financial year is 2.54% (2017 – 2.75%). It is the ratio of all the fees deducted from the Fund including Manager’s fee, Trustee’s fee, auditors’ fee, tax agent’s fee plus expense charged to the Fund expressed as a percentage of the Fund’s average net asset value, calculated on a monthly basis.
17. PORTFOLIO TURNOVER RATIO
The portfolio turnover ratio for the current financial year is 1.26 times (2017 - 1.35 times). It is the ratio of the average of the total acquisitions and disposals of Shariah-compliant investments of the Fund over the average net asset value of the Fund.
18. RELATED PARTY TRANSACTIONS (a) Identitities of related parties
The Fund has related party relationships with the Manager and the holding company of the Manager.
(b) In addition to the balance detailed elsewhere in the financial statements, the Fund
carried out the following transactions with the related party during the financial year:
2018 2017 RM RM
Manager’s fee 550,044 719,642
Trustee’s fee 29,336 38,381
19. OPERATING SEGMENTS
The Manager and Investment Committee of the Fund are responsible for allocating resources available to the Fund in accordance with the overall investment strategies as set out in the Investment Guidelines of the Fund. The following table provides an analysis of the income and assets by investment segments:
SEGMENT INCOME
2018
2017
RM
RM
Net (loss)/gain on financial assets at fair value through profit or loss:
- realised (loss) / gain on sale of Shariah-compliant equity investments (13,889,235)
1,246,064
- unrealised gain / (loss) on changes in fair value of investments 5,002,080
(502,615)
Dividend income 876,608
944,193 Islamic deposits with licensed financial institutions 190,983
315,463
Other Income - 72,220
Total Segment Income (7,819,564)
2,075,325
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SEGMENT ASSETS
2018 2017
RM RM Shariah-compliant equity securities 19,730,957 40,082,432
Islamic deposits with licensed financial institutions 7,595,000 3,280,000 Dividend receivable 63,948 79,117 Profit receivable 2,540 1,152 Bank balance 5,151 5,748 27,397,596 43,448,449
20. FINANCIAL INSTRUMENTS
The Fund’s activities are exposed to a variety of market risk (including foreign currency risk, interest rate risk and price risk), credit risk, liquidity risk and reclassification of Shariah status risk. The Fund’s overall financial risk management policy focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Fund’s financial performance. (a) Financial Risk Management Policies
The Fund is exposed to a variety of financial risks, which include foreign currency risk, interest rate risk, credit risk, stock risk, liquidity risk and reclassification of Shariah status risk. The overall financial risk management objective of the Fund is to mitigate capital losses. Financial risk management is carried out through policy reviews, internal control systems and adherence to the investment powers and restrictions stipulated in the Securities Commission’s Guidelines on Unit Trust Funds in Malaysia. (i) Market Risk
Market risk arises due to changing market conditions as a result of regulatory,political, economic and business environment. Such changes can result in stock market fluctuations which may affect the Fund’s underlying Shariah-compliant investments which will cause the net asset value of the Fund to fall or rise. Market risk cannot be eliminated but maybe reduced through diversification. The Manager diversify the portfolio and monitor the investment climate and market conditions to take measures, where necessary and appropriate, to mitigate this risk.
(i) Price Risk
Price risk is the risk that the fair values of Shariah-compliant equity securities decrease as a result of changes in the level of equity indices and the value of individual Shariah-compliant securities. It is the Fund’s policy to maximise returns for the least amount of risk and the Manager selects Shariah-compliant securities that are fundamentally sound with good growth potential.
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The table below shows the diversification of the Fund’s investment portfolio as at 31 December 2018.
2018 2017 RM % NAV RM % NAV Construction 532,890 2.02 3,313,950 7.90 Consumer Products 2,654,625 10.06 4,416,400 10.52 Energy 2,185,329 8.28 2,556,750 6.10 Financial Services 534,000 2.02 - - Health Care 2,214,570 8.38 1,758,580 4.20 Industrial Products 3,390,892 12.84 9,371,534 22.33 Plantation 841,200 3.18 1,342,000 3.20 Property 1,043,050 3.95 2,553,457 6.08 Technology 1,688,751 6.39 6,073,871 14.48 Telecommunication & Media 2,748,250
10.40 2,253,960
5.38
Transportation & Logistics 442,200
1.67 3,080,350
7.35
Utilities 1,455,200 5.51 3,361,580 8.01
19,730,957 74.69 40,082,432 95.55
The overall market position is monitored on a daily basis by the Manager. The Manager will determine which industry may benefit from current and future changes in the economy when undergoing the process of sector allocation. The value of the Fund’s investments in Shariah-compliant ordinary shares issued by any single issuer must not exceed 10% of the Fund’s daily net asset value. If prices for quoted Shariah-compliant investments as at the end of the reporting period strengthened by 5% with all other variables being held constant, the Fund’s profit before taxation and equity would have increased by RM986,548. A 5% weakening in the quoted prices would have had an equal but opposite effect on the profit after taxation and equity respectively. In practice, the actual trading results may differ from the sensitivity analysis presented above and the difference could be material. The market price information provided in the table above represent a hypothetical outcome and is not intended to be predictive. Market conditions could vary significantly from that suggested. The Manager has in place a system for the monitoring of the Fund’s transactions to ensure compliance with the SC’s Guidelines on Unit Trust Funds and the Fund’s limits and investment restrictions in accordance with the parameters in the Trust Deed.
(ii) Interest Rate Risk
Interest rate risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market interest rate. Profit rates on Islamic deposits and placements with licensed financial institutions are determined based on prevailing market rates.
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The Fund is not exposed to interest rate risk as the Fund’s investments in financial instruments carry fixed profit rate and are measured at amortised cost. As such, sensitivity analysis is not disclosed. It does not in any way suggest that this Fund will invest in conventional financial instruments. All the investments carried out for this Fund are in accordance with Shariah requirements.
(iii) Foreign Currency Risk
The Company does not have any foreign currency transactions, hence is not exposed to any currency risks.
(ii) Credit Risk Credit risk refers to the inability of an issuer or a counterparty to make timely payments of profit, principals and proceeds from realisation of Shariah-compliant investments. Credit risk arising from placements of Islamic deposits in licensed financial institutions is managed by ensuring that the Fund will only place Islamic deposits in reputable licensed financial institutions. For amount due from stockbrokers, the settlement terms are governed by the relevant rules and regulations as prescribed by Bursa Malaysia Securities Berhad. All transactions in listed Shariah-compliant securities are settled/paid for upon delivery using approved brokers. The risk of default is considered minimal, as delivery of Shariah-compliant securities sold is only made once the broker has received payment. Payment is made on a purchase once the Shariah-compliant securities have been received by the broker. If either party fails to meet their obligation, the trade will fail. The settlement terms of the proceeds from the creation of units receivable from the Manager and redemption of units payable to the Manager are governed by the SC’s Guidelines on Unit Trust Funds. The maximum exposure to credit risk before any credit enhancements as at end of the reporting date is the carrying amount of the financial assets as set out below:-
2018 2017 RM RM Islamic deposit with licensed financial institutions
7,595,000
3,280,000 Dividend receivable 63,948 79,117 Profit receivable 2,540 1,152 Bank balance 5,151 5,748
7,666,639 3,366,017
The exposure of credit risk for financial assets is solely within Malaysia.
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All financial assets of the Fund as at 31 December 2018 are neither past due nor impaired.
(iii) Liquidity Risk Liquidity risk is the risk that the Fund may not be able to generate sufficient cash resources to settle its obligations in full as they fall due or can only do so on terms that are materially disadvantageous. The Fund maintains sufficient level of Islamic liquid assets with minimum level of 10% of the net asset value of the Fund to meet anticipated payments and cancellation of units by unitholders. Islamic money market instruments which include Islamic term deposits, repurchase agreements and short term cash placements with financial institutions, will be used to maintain the Fund’s liquidity position and as a short term alternative measure when the equity market experiences excessive volatility. The Fund shall not borrow in connection with its activities or lend any of its cash or investments unless permitted by the SC’s Guidelines on Unit Trust Funds in Malaysia and any Guidance Notes issued by the SC from time to time or other laws or regulations pertaining to unit trusts. The following table sets out the maturity profile of the financial liabilities as at the end of the reporting period based on contractual undiscounted cash flows:-
Carrying Amount
Contractual Undiscounted
Cash Flows
Within 1 Year
RM RM RM
As at 31 December 2018
Amount owing to Manager 47,837 47,837 47,837 Amount owing to Trustee 1,813 1,813 1,813 Distribution Payable 886,938 886,938 886,938 Other payables and accruals 43,358 43,358 43,358
Total financial liabilities 979,946 979,946 979,946
As at 31 December 2017 Amount owing to Manager 144,377 144,377 144,377 Amount owing to Trustee 2,836 2,836 2,836 Distribution Payable 1,287,215 1,287,215 1,287,215 Other payables and accruals 46,011 46,011 46,011
Total financial liabilities 1,480,439 1,480,439 1,480,439
(iv) Reclassification of Shariah Status Risk
The risk is that the currently held Shariah-compliant securities in the portfolio of Islamic funds may be reclassified to be Shariah non-compliant upon review of the securities by the Shariah Advisory Council of the Securities Commission performed twice yearly. If this occurs, the Manager will take the necessary steps to dispose of such securities
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There may be opportunity loss to the Fund due to the Fund not being allowed to retain the excess capital gains derived from the disposal of the Shariah non-compliant equities. The value of the Fund may also be adversely affected in the event of a disposal of Shariah non-compliant equities at a price lower than the investment cost.
(b) Capital Risk Management The Fund Manager is responsible for identifying and controlling risks. The Board of Directors of the Manager is ultimately responsible for the overall risk management approach within the Fund. Monitoring and controlling risk are primarily set up to be performed based on limits established by the Manager and the Trustee. These limits reflect the investment strategy and market environment of the Fund’s Shariah-compliant investments as well as the level of the risk that Manager of the Fund is willing to accept. In addition, the Manager of the Fund monitors and measures the overall risk bearing capacity in relation to the aggregate risk exposure across all risk type and activities. The Fund has investment guidelines that set out its overall business strategies, its tolerance for risk and its general risk management philosophy. The Manager also has a Compliance Department to ensure that the Fund complies with the various regulations and guidelines stipulated in its Trust Deed, the Securities Commission’s Guidelines on Unit Trust Funds in Malaysia. It is, and has been throughout the current and previous financial year, the Fund’s policy that no Islamic derivatives shall be undertaken for either investment risk management purposes. The capital is represented by unitholders’ subscription to the Fund. The amount of capital can change significantly on a daily basis as the fund is subject to daily redemption and subscription at the discretion of unitholders. The Manager manages the Fund’s capital in accordance with its objective, while maintaining sufficient liquidity to meet unitholders’ redemption.
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(c) Classification of Financial Instruments
2018 2017 RM RM Financial Assets Loans and receivables financial assets Islamic deposits with licensed financial institutions
7,595,000
3,280,000
Dividend receivables 63,948 79,117 Profit receivable 2,540 1,152 Bank balance 5,151 5,748
7,666,639 3,366,017
Fair value through profit or loss Quoted Shariah-compliant equity investments 19,730,957 40,082,432
Other financial liabilities Distribution payable - (1,287,215) Amount owing to Manager 47,837 (144,377) Amount owing to Trustee 1,813 (2,836) Amount owing to Stockbroking Companies 886,938 - Other payables and accruals 43,358 (46,011)
979,946 (1,480,439)
* The Fund does not have any loan.
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(d) Fair Value Information Other than those disclosed below, the fair valies of the financial assets and financial liabilities maturing within the next 12 months approximately their carrying amounts due to the relatively short-term maturity of the financial instruments. These fair values are included in level 2 of the fair value hierarchy.
Fair Value of Financial Instruments
Carried at Fair Value
Fair Value of Financial Instruments Not Carried at Fair
Value
Total Fair Value /
Carrying Amount
Level 1
Level 2
Level
3
Level 1
Level
2 Level 3
RM RM RM RM RM RM RM 2018 Financial Assets Shariah-
compliant equity investments 19,730,957
-
-
-
-
-
19,730,957
2017 Financial Assets Shariah-
compliant equity investments 40,082,432
-
-
-
-
-
40,082,432
The fair values of level 2 are estimated based on their quoted market prices as at the end of the reporting period.
21. DATE OF AUTHORISATION OF ISSUE
The financial statements were authorised for issue by the Board of Directors on 14 February 2019.
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CORPORATE INFORMATION
MANAGER
Permodalan BSN Berhad (319744-W) License No.for Capital Market Services : CMSL/A0156/2007 REGISTERED/ BUSINESS OFFICE Level 19, Lot 1, Bangunan TH Selborn 153, Jalan Tun Razak, 50400 Kuala Lumpur E - mail : [email protected] Tel : 03-2180 9000 Faks : 03-2681 0051 Website : www.pbsn.com.my
BOARD OF DIRECTORS
Tan Sri Abu Bakar bin Haji Abdullah Datuk Yunos bin Abd Ghani (appointed w.e.f 8 February 2018) Dato’ Dr. Gan Miew Chee @ Gan Khuan Poh Encik Kamari Zaman bin Juhari Encik Roslani bin Hashim Encik Ahmad Latfan bin Mohd Amran (appointed w.e.f 8 February 2018) Encik Kamarul Izam bin Idrus
CHIEF EXECUTIVE OFFICER
Encik Kamarul Izam bin Idrus
COMPANY SECRETARY
Pn Nor Eliza Bt Musa MAICSA No 1035207
ADVOCATES & SOLICITORS
SOON, GAN DION & PARTNERS 1st Floor, No. 73, Jalan SS 21/1A Damansara Utama 47400 Petaling Jaya
PRINCIPAL BANKER
Affin Islamic Bank Berhad Kuala Lumpur Main, 133, Jalan Bunus Off Jalan Masjid India 50100 Kuala Lumpur TRUSTEE AmanahRaya Trustees Berhad (766894-T) Tingkat 2, Wisma AmanahRaya II No. 21, Jalan Melaka 50100 Kuala Lumpur
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SHARIAH ADVISER
IBFIM (763075-W)
Level 3, Menara Takaful Malaysia Jalan Sultan Sulaiman 50000 Kuala Lumpur AUDITOR
JAMAL, AMIN & PARTNERS (AF 1067)
60-2B, 2nd Floor, Jalan 2/23A, Off Jalan Genting Klang, Taman Danau Kota, Setapak, 53300 Kuala Lumpur
TAX ADVISER
CROWE KL TAX SDN BHD (10709-X) (FKA Crowe Horwath KL Tax Sdn Bhd) Level 15, Tower C Megan Avenue 2 No. 12, Jalan Yap Kwan Seng 50450 Kuala Lumpur
INDEPENDENT CONSULTANT
Novagni Analytics and Advisory Sdn Bhd (363145-W) Level 42, Menara TH Perdana
1001, Jalan Sultan Ismail 50250 Kuala Lumpur
