pmb shariah mid-cap fund · 4/30/2020 · annual report - pmb shariah mid-cap fund >>> 4)...

PMB SHARIAH MID-CAP FUND

ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 30 APRIL 2020

Islamic Fund Management Company (IFMC)

>>> ANNUAL REPORT - PMB SHARIAH MID-CAP FUND >>>

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Dear Unitholder,

MOVING TOWARDS ELECTRONIC COMMUNICATION. We wish to inform that you have been automatically enrolled to receive funds’ reports via electronic medium effective 31 March 2018. You will receive a notification by SMS/email when the funds’ report is ready for download on our website at www.pmbinvestment.com.my. Please note that the report will be available to view and download from our website until next financial report. Please inform us in writing if you do not wish to receive the documents electronically. Should you have any queries or need further clarification, please do not hesitate to contact our Investor Relation Careline at 03-2785 9900 or email at [email protected] Thank you.

mailto:[email protected]


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Dear Valued Customer

PMB INVESTMENT BERHAD – PRIVACY NOTICE UNDER PERSONAL DATA PROTECTION ACT 2010

Effective from 15 November 2013, the Personal Data Protection Act 2010

(PDPA) was introduced to regulate the personal data processed in

commercial transactions.

PMB INVESTMENT BERHAD respects and is committed to the protection of

your personal information and your privacy. This Personal Data Protection

Notice explains how we collect and handle your personal information in

accordance with the Malaysian Personal Data Protection Act 2010.

Please note that PMB INVESTMENT BERHAD may amend this Personal

Data Protection Notice at any time without prior notice and will notify you

of any such amendment via our website or by email.

Privacy Notice content involves matters concerning the processing of your

personal information by us in connection with your investment account

and/or services with us. Please take time to read and take note of the

contents of the Privacy Notice in effect.

If you would like to access your personal information, please refer to our

Personal Data Access @ www.pmbinvestment.com.my and/or visit our

offices whether head office or other branches.

If you would like to obtain further information, please do not hesitate to contact us at Customer Care Line 03-2785 9900.

http://www.pmbinvestment.com.my/


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MANAGER PMB INVESTMENT BERHAD (A member of Pelaburan MARA Berhad)

HEAD OFFICE Level 20, 1 Sentral

Jalan Rakyat, Kuala Lumpur Sentral

Peti Surat 10701

50722 Kuala Lumpur

Tel: (03) 2785 9800 Fax: (03) 2785 9901

E-mail: [email protected]

Website: www.pmbinvestment.com.my BOARD OF DIRECTORS Dato’ Sri Hj Abd Rahim bin Hj Abdul

Prof. Dr. Faridah binti Hj Hassan

Mansoor bin Ahmad

Nik Mohamed Zaki bin Nik Yusoff

Najmi bin Haji Mohamed

YM Tengku Ahmad Badli Shah bin Raja Hussin

CHIEF EXECUTIVE OFFICER Najmi bin Haji Mohamed COMPANY SECRETARIES Mohd Shah Bin Hashim (BC/M/148) (Effective from 19 August 2019) INVESTMENT COMMITTEE MEMBERS Mansoor bin Ahmad

Nik Mohamed Zaki bin Nik Yusoff

Prof. Dr. Mohamed Aslam bin Mohamed Haneef

TRUSTEE CIMB ISLAMIC TRUSTEE BERHAD

SHARIAH ADVISER BIMB SECURITIES SDN BHD

AUDITORS JAMAL, AMIN & PARTNERS

CORPORATE INFORMATION

mailto:[email protected]

http://www.pmbinvestment.com.my/


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TABLE OF CONTENTS

1. FUND INFORMATION 6

1.1 FUND NAME 6

1.2 DATE OF RELAUNCH 6

1.3 FUND CATEGORY/TYPE 6

1.4 FUND INVESTMENT OBJECTIVE 6

1.5 FUND PERFORMANCE BENCHMARK 6

1.6 FUND DISTRIBUTION POLICY 6

1.7 UNIT HOLDINGS AS AT 30 APRIL 2020 6

2. FUND PERFORMANCE DATA 7 – 8

2.1 PORTFOLIO COMPOSITION 7

2.2 PERFORMANCE DETAILS 7

3. MANAGER’S REPORT 9 – 25

3.1 FUND PERFORMANCE 9

3.2 INCOME DISTRIBUTION/UNIT SPLIT 9

3.3 POLICY AND INVESTMENT STRATEGY 10

3.4 ASSET ALLOCATION OF THE FUND 10

3.5 ECONOMIC REVIEW 11

3.6 EQUITY MARKET REVIEW 12


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TABLE OF CONTENTS

3.7 MONEY MARKET REVIEW 15

3.8 INTEREST OF UNIT HOLDERS 16

3.9 SOFT COMMISSIONS AND REBATES 16

4. TRUSTEE’S REPORT 26 5. SHARIAH ADVISER’S REPORT 27 6. STATEMENT BY MANAGER 28 7. AUDITOR’S REPORT 29 – 32 8. FINANCIAL STATEMENT 33 – 62 9. BUSINESS INFORMATION NETWORK 63 – 66 10. INFORMATION OF INVESTOR RELATION 67

11. INVESTOR PROFILE UPDATE FORM 68


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1. FUND INFORMATION

1.1 FUND NAME

PMB SHARIAH MID-CAP FUND - PMB SMCF.

1.2 DATE OF LAUNCH 7 March 2014.

1.3 FUND CATEGORY/TYPE Equity (Shariah)/Growth.

1.4 FUND INVESTMENT OBJECTIVE The objective of the Fund is to achieve capital growth over the medium to long-term period by investing primarily in medium sized Shariah compliant

companies in terms of market capitalization.

1.5 FUND PERFORMANCE BENCHMARK

Effective from 1 July 2019, the benchmark of PMB Shariah Mid-Cap Fund

been changed from FBM Shariah to FTSE Bursa Malaysia MidS Cap

Shariah Index (FBM MSCS).

1.6 FUND DISTRIBUTION POLICY The distribution is incidental. The distribution of income, if any, will be made in the form of cash or additional units.

.

1.7 UNIT HOLDINGS AS AT 30 APRIL 2020

Size of Holdings No. of Unit Holders % No. of Units

Held %

5,000 and below 5,002 47.95 12,240,818.01 4.22

5,001 - 10,000 2,382 22.84 17,084,938.05 5.90

10,001 - 50,000 2,698 25.87 54,713,550.70 18.88

50,001 - 500,000 336 3.22 37,804,395.10 13.04

500,001 and above 13 0.12 167,963,977.00 57.96

Total 10,431 100.00 289,807,678.86 100.00

* Note: Excluding manager’s unit


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2. FUND PERFORMANCE DATA 2.1 PORTFOLIO COMPOSITION

2.2 PERFORMANCE DETAILS

* Source: Lipper

^ The distribution is in the form of unit. Unit split (if any) are not eligible for income distribution for the current financial year.

Past performance is not necessarily indicative of future performance,

unit prices and investment returns may fluctuate.

FINANCIAL YEAR ENDED 30 APRIL SECTOR 2020 2019 2018 Main Market % % % Consumer Products - - 7.06 Consumer Products & Services 15.44 5.83 -

Industrial Products - - 20.89 Industrial Products & Services 25.45 25.07 - Construction - 4.21 3.79 Trading & Services - - 11.15

Financial Services 2.97 7.63 3.88 Property 1.12 - 7.43 Energy 10.79 11.55 - Healthcare - 10.06 -

Transportation & Logistic 3.57 - - Utilities 8.96 5.31 - Plantation - - 0.40 Technology 13.01 16.86 9.98

Ace Market Construction - - 4.01 Technology 4.26 - 1.34 Industrial Product & Services 4.65 4.57 -

Islamic Deposit / Cash / Others 9.78 8.91 30.07

Total 100.00 100.00 100.00

FINANCIAL YEAR ENDED 30 APRIL 2020 2019 2018 Net Asset Value (NAV) - xD (RM’000) 44,695 51,433 47,258

Unit in circulation (’000) 289,807 312,488 300,841

NAV per unit - xD (RM) 0.1542 0.1646 0.1571

NAV per unit - xD: Highest (RM) 0.1875 0.1682 0.1982

NAB Seunit - xD: Lowest (RM) 0.1160 0.1412 0.1571

Total Return * (%) (2.67) 4.77 (16.63)

- Capital Growth * (%) (6.32) 4.77 (20.43)

- Income Return (%) 3.65 - 3.80

Gross Distribution per unit (sen) ^ 0.60 - ^0.75

Net Distribution per unit (sen) ^ 0.60 - ^0.75

Management Expenses Ratio (MER) ¹

(%) 1.65 1.63 1.78

Portfolio Turnover Ratio (PTR) ² (times) 0.88 0.99 0.71


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2.2 PERFORMANCE DETAILS (CONT.) ¹ MER for PMB SMCF for the financial year ended 30 April 2020 increased

0.02 percentage points to 1.65% from 1.63% in the corresponding period last year. The increase was due to an increase in total expenditure by 1.86%. During the financial year, the average size of the Fund increased by 0.53% to RM49.83 million from RM49.57 million.

² The PTR for the financial year ended 30 April 2020 decreased 11.11% to

0.88 times from 0.99 times in the previous year corresponding period. The

average cost for purchase and sales decreased 10.54% due to lower sales and purchases activities. Purchase and sell activities were carried out based on a changing investment strategy in accordance with market conditions.

* AVERAGE TOTAL RETURN (30 APRIL)

1-year 3-year 5-year PMB SMCF (2.67%) (5.26%) (3.09%)

BENCHMARK (15.22%) (12.69%) (6.17%)

* ANNUAL TOTAL RETURN (30 APRIL)

2020 2019 2018 2017 2016 PMB SMCF (2.67%) 4.77% (16.63%) 6.55% (5.65%)

BENCHMARK (15.26%) (2.68%) (19.33%) 16.35% (6.07%)

* Source: Lipper

Past performance is not necessarily indicative of future performance,

unit prices and investment returns may fluctuate.


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3. MANAGER’S REPORT

We are pleased to present the Manager’s report of PMB SMCF for the financial year ended 30 April 2020 (1 May 2019 until 30 April 2020).

3.1 FUND PERFORMANCE

Fund has met its objective, which is to achieve capital growth over the long-term period. However, for medium term the Fund not met its

objective. Based on data from Lipper, the Fund's returns for the 10-year recorded a return of 4.28% while for 5 and 3-year period, the Fund recorded a decrease of 14.54% and 14.99% respectively. For the 1-year financial period ended 30 April 2020, the Fund's return decreased by

-2.67%.

Fund’s performance measured against benchmark for 5-year ended 30 April 2020 is as follows:-

The graph illustrates the movement of the Fund’s return against the benchmark. For the 5-year period ended 30 April 2020, the Fund’s

NAV/unit registered a decline of 14.54%. The benchmark returns also experienced the decline of -27.30%.

For 1-year financial period ended 30 April 2020, NAV/unit decreased by RM0.0044 or -2.67% to RM0.1602 (cD) from RM0.1646 (xD) as at 30 April

2019. 3.2 INCOME DISTRIBUTION/UNIT SPLIT

The Fund has declared an income distribution of 0.60 sen/unit in the form of new unit.

The Fund did not carry out any unit split exercise during the financial year

ended 30 April 2020.

Source: Lipper


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3.3 POLICY AND INVESTMENT STRATEGY

The Fund shall invest primarily in a diversified portfolio of Shariah-compliant equity and Shariah-compliant equity-related securities of

medium sized companies with market capitalization of between RM1 billion and RM7 billion at the point of purchase. However, the Fund may invest up to 20% of its NAV in Shariah-compliant securities of companies with market capitalization below RM1 billion and/or in excess RM7 billion.

The Fund will maintain Shariah-compliant equity exposure within range of 70% to 99.5% of its NAV.

During the financial year ended 30 April 2020, the fund manager executed buy and sell activities for the fund based on relative strength analysis. Furthermore, for the economies and sectors in which the companies

operate are also assessed. The Shariah-compliant equity exposure of the Fund was maintained between 80% and 95% throughout the period under review.

3.4 ASSET ALLOCATION OF THE FUND Comparison of investment components based on NAV is as follows:-

ASSET ALLOCATION

30 April 2020 (%)

30 April

2019 (%)

Change (%)

Investment Exposure Average

(%) Shariah-compliant Equity

90.22 91.09 (0.87) 90.66

Islamic Deposits/ cash/

others 9.78 8.91 0.87 9.34

As at 30 April 2020, 90.22% of the Fund’s NAV was invested in Shariah-

compliant equity market. The balance of 9.78% was held in Islamic deposits and/or other permitted investments.


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3.5 ECONOMIC REVIEW

The Malaysian economy was driven by higher private sector spending

(7.4%; 3Q 2019: 5.4%) in the fourth quarter of 2019. Private consumption grew strongly by 8.1% (3Q 2019: 7.0%), while private investment

registered a higher growth of 4.2% (3Q 2019: 0.3%). However, growth was affected by supply disruptions in the commodities sector. Consequently, the Malaysian economy expanded by 3.6% in the fourth quarter of 2019. On a quarter-on-quarter seasonally-adjusted basis, the

economy grew by 0.6% (3Q 2019: 0.9%). For 2019 as a whole, the economy expanded by 4.3% (2018: 4.7%). During the quarter, headline inflation averaged lower mainly reflecting the lapse in the impact from Sales and Services Tax (SST) implementation. Core inflation, excluding

the impact of consumption tax policy changes, was stable at 1.4%.

The Ringgit appreciated by 2.3% against the US Dollar in the fourth quarter, supported mainly by the resumption in non-resident portfolio inflows. This was due to improved investor sentiments following positive developments on global trade negotiations. Synchronised policy rate cuts

by several major central banks also contributed to the improvement in global investor risk appetite during the quarter. As a result, for 2019 as a whole, the Ringgit recorded an appreciation of 1.1% against the US Dollar, in line with the trend of regional currencies. The performance of

Ringgit in 2020 will continue to be influenced by external developments. While the Phase One trade deal between the US and PR China contributed to an improved outlook on global trade, investor sentiments are also affected by concerns over the recent coronavirus outbreak. As a

result, the Ringgit depreciated by 1.3% against the US Dollar this year up to 10 February, amid weaker sentiments in global financial markets.

Net financing expanded by 4.7% on an annual basis, supported by sustained growth in outstanding loans. Growth in outstanding business loans improved, while outstanding household loans grew at a stable pace.

Demand for both business and household loans sustained its momentum from improvements since the second quarter. However, growth of outstanding corporate bonds moderated slightly amid higher redemptions.

Going into 2020, growth, particularly in the first quarter of the year, will be

affected by the coronavirus outbreak. The overall impact of the virus on the Malaysian economy will, however, depend on the duration and spread of the outbreak as well as policy responses by authorities. For the year as a whole, growth will be supported by household spending, the realisation

of approved private investment projects in recent periods, and higher public sector capital spending. Nevertheless, there are downside risks to growth. These include uncertainties in external conditions arising from the ongoing coronavirus outbreak, the various trade negotiations and

geopolitical risks, as well as domestic factors, including weakness in the commodities sector and delays in project implementation. Thus, two-way capital flows and exchange rate volatility should be expected. Headline inflation in 2020 is projected to average higher than in 2019, but remain

modest. The trajectory of headline inflation will be dependent on global oil and commodity price developments and the timing of the lifting of the domestic retail fuel price ceilings. Underlying inflation is expected to be broadly stable, reflecting the continued expansion in economic activity and

the absence of strong demand pressures.


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3.5 ECONOMIC REVIEW ( CONT.) Gross Domestic Product (GDP) Growth For 4th Quarter 2019

(Source: Bank Negara Malaysia Website)

Inflation Overall, inflation went up by 0.9% for 1-year period ended March 2020,

higher than 0.5% growth recorded during the same period in the preceding year. The slower growth was due to the drop in transport (-2.0%).

Industrial Production Index (IPI) IPI dropped 4.9% in March 2020 as compared with the same month in the previous year. The decline in March 2020 was contributed by the decrease

in all indices; manufacturing (-4.2%), mining (-6.5%) and electricity (-7.0%).

Balance of Trade For 1-year period ended March 2020, trade surplus stood at RM137.2

billion, an expansion of RM13.3 billion (+10.8%) when compared to the same period a year ago. Total trade for 1-year period ended March 2020

which was valued at RM1,841.0 billion, a drop of RM28.0 billion (-1.5%) when compared to RM1,869.6 billion at the same period a year ago. For the same period, total export shrunk 0.7% to RM989.0 billion while total import also shrunk 2.4% to RM851.9 billion.

(Source: Department of Statistics Malaysia, Official Portal)

3.6 EQUITY MARKET REVIEW

For the year ended 30 April 2020, the benchmark for the Fund, FBM MidS

Cap Shariah Index (FBM MSCS), had decreased by 2,120.94 points or -15.26% to 11,781.77 while the main benchmark for Malaysian Bourse,

FBM KLCI, had dropped by -234.51 points or -14.28% to 1,407.78.

During that period, the FBM MSCS recorded its highest level of 15,038.38

on 22 January 2020 and its lowest of 7,732.56 on 19 March 2020. Meanwhile, FBM KLCI posted its highest level of 1,691.00 on 2 July 2019 while the lowest level of 1,219.72 was recorded on 19 March 2020. The

movement range for the FBM MSCS during the stipulated financial period was 7,305.82 points as compared to 3,932.17 points during the same period in the previous year.

Sector 2019 2019 2018 Sector 2019 2019 2018 Production Q4 Q3 Q4 Expenditure Q4 Q3 Q4

Agriculture -5.7% +3.7% -0.4% Private Final Consumption

+8.1% +7.0% +8.5%

Construction +1.0% -1.5% +2.6% Government Final Consumption

+1.3% +1.0% +4.0%

Services +6.1% +5.9% +6.9% Gross Fixed Capital Formation

-0.7% -3.7% +0.3%

Manufacturing +3.0% +3.6% +4.7% Export -3.1% -1.4% +1.3%

Mining & Quarrying

-2.5% -4.3% +0.5% Import -2.3% -3.3% +0.2%

GDP +3.6% +4.4% +4.7% GDP +3.6% +4.4% +4.7%


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3.6 EQUITY MARKET REVIEW ( CONT.)

Foreign funds staged a commendable return to Bursa in last week of May

after the deadlock in trade talks since the start of May had caused disarray in the markets. Trade talks failed after U.S. raised levies to 25% from 10% on $200 billion worth of Chinese goods and Beijing retaliated by imposing higher tariffs on $60 billion worth of U.S. goods.

Trade tensions between China and the U.S. escalated further after the U.S. Commerce Department moved to add Huawei and 70 affiliates to its so-called "Entity List", effectively banning the Chinese telecoms giant from buying parts and components from U.S. companies without a government

approval. However, U.S. temporarily eased restrictions on China's Huawei Technologies. Washington granted Huawei Technologies Co Ltd a licence to purchase U.S. goods until August 2019, a move intended to give telecom operators that rely on the Chinese firm time to make other

arrangements.

Domestically, Bank Negara Malaysia (BNM) had cut its overnight policy rate (OPR) by 25 basis points to 3.00%, its first since 2016. Meanwhile, Malaysia's economy in the first three months of the year grew at a slower

pace at 4.5% than the prior quarter of 4.7%.

The stock market rallied in June, boosted by U.S.-China trade optimism and dovish comments from the various central banks. However, the stock market closed lower in July, August and September despite Malaysia

posted Gross Domestic Product (GDP) growth of 4.9% for the second quarter of 2019. The contributing factors were mainly due to uninspiring second quarter Malaysia’s corporate earnings, the 10-year U.S. treasury yield inverted and briefly fell below the 2-year yield, tit-for-tat retaliation

between U.S. and China had escalated the trade tensions, geopolitical concerns and China allowed the yuan to weaken beyond 7 per US dollar.

In October, the FBMKLCI up 14.07 points or 0.9% month-on-month (MoM) as key banking heavyweights led gains after the U.S. central bank cut

rates for the third time in 2019 by 25 basis points. In addition, the U.S. and China agreed to finalise the first phase of a trade agreement, which includes a pause in tariff escalation and China buying U.S. agriculture products. The IMF cut its global growth forecast for 2019 to 3.0% from

3.2% due to falling manufacturing activity and trade. The forecast for 2020 was lowered to 3.4% from 3.6%. Locally, the budget 2020 was considered as an expansionary budget and market neutral.

The FBMKLCI dropped 36.24 points or 2.3% MoM to close at 1,561.74

points at the end of November 2019. Malaysian economy grew by 4.4% in the third quarter from a year earlier, slowest in a year but in-line with expectations. BNM cut banks' statutory reserve requirement (SRR) to 3.00% from 3.50%, effective 16 November. The third-quarter corporate

earnings reporting season had been somewhat underwhelming, yielding a mixed bag of results and few catalysts to drive the market. Externally, hopes of a Sino-U.S. trade deal were dimmed after China warned the U.S. of retaliation after U.S. President Donald Trump signed the Hong Kong

Bill. Also, worries remained as some reports suggested Beijing and Washington were unable to agree on terms of tariff rollbacks and President Donald Trump threatened fresh tariffs.


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3.6 EQUITY MARKET REVIEW ( CONT.) For most of December, investors reacted positively to news that the U.S. and China are on the verge of signing a Phase One trade deal. In the UK, Boris Johnson won the U.K.’s general election and subsequently set the country on track to leave the European Union in January 2020.

Meanwhile, Organization of the Petroleum Exporting Countries (OPEC) agreed to cut production by 500,000 barrels per day until March 2020, with Saudi Arabia also offering up to an additional 400,000 barrel cut of its own.

Profit-taking and selling pressure continued to drag the local blue-chip

benchmark FBM KLCI lower in January 2020, with investors seemingly reluctant to make significant moves amid lack of positive catalyst to spur the local market sentiment. Market sentiment was also rattled by the geopolitical tension between U.S. - Iran and the outbreak of a new

coronavirus stemming from Wuhan, China. World Health Organization (WHO) declared a global health emergency but did not recommend restricting the movement of people and goods and said the country had the situation under control. The World Bank projected Malaysia's

economic growth to inch down to 4.5% in 2020 and 2021, with weak export expansion partly offset by strong domestic demand. Meanwhile, BNM cut OPR to 2.75% in pre-emptive measures to secure improving growth trajectory.

The stock market extended its sell-off in February in a volatile session, as a domestic political crisis and the widening spread of the coronavirus heightened pessimism among investors. After Pakatan Harapan (PH) lost its Parliamentary majority, Tun Dr. Mahathir tendered his resignation as

Prime Minister. However, he was appointed as Interim Prime Minister by the King. The political turmoil plaguing Malaysia was resolved when the King appointed Tan Sri Muhyiddin Yassin as Malaysia’s 8th Prime Minister. On the economic front, Malaysia’s economy expanded by 3.6% in

the 4Q 2019, dragging the full-year GDP growth to 4.3%, the lowest since the 2009 financial crisis amid supply disruptions in the commodity sector during the quarter. Meanwhile, 4Q2019 corporate earnings saw more disappointing performances than outperformances.

In March 2020, FBMKLCI tumbled -8.9% MoM to close at 1,350.89 (rebounding off low of 1,220). The FBMKLCI Index started the month on a weaker tone due to (a) the rising number of COVID-19 infections across the region had reduced investors’ appetite for riskier assets, (b) oil prices

tanked after OPEC led by Saudi Arabia, failed to reach agreement with the world’s No. 2 oil producer Russia to deepen production cuts and later on Saudi Arabia initiated a price war, (c) WHO termed the coronavirus outbreak a pandemic, and (d) The Dow Jones Industrial Average closed

2,352.60 points lower, or 9.99%, at 21,200.62 on 12 March, its worst drop since the 1987 “Black Monday” market crash, when it collapsed by more than 22%. By mid-month, FBMKLCI rallied on the news that (a) U.S. Federal Reserve pledged an unlimited quantitative easing to stabilise the

economy, (b) U.S. Senate approved the $2 trillion fiscal stimulus package for the economy, (c) Malaysia has unveiled a landmark comprehensive rescue plan worth a total of RM250 billion, and (d) Securities Commission (SC) and Bursa Malaysia have suspended short selling until 30th April.


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3.6 EQUITY MARKET REVIEW ( CONT.)

The FBMKLCI ended April 56.89 points or 4.2% MoM higher at 1,407.78.

Bursa Malaysia rebounded throughout April as investors pinned their hopes on the easing lockdowns in major global economies and the prospect of daily life returning to normalcy. Other factors that helped market higher were (a) government announced an additional stimulus of

RM10 billion under PRIHATIN Package for SMEs, (b) BNM had also introduced some relief measures including a six-month moratorium for borrowers which will enable them to defer their loan payments to banks, over that period, (c) SC and Bursa Malaysia have extended the temporary

suspension of short-selling from 30 April to 30 June, 2020 and (d) OPEC+ had agreed to cut global crude production by 9.7 million bpd from 1 May and will be extended through end-June.

In this volatile market sentiment, the NAV/unit decreased by 2.67% within

a 1-year period ended 30 April 2020. (Source: Bank Negara Malaysia Website)

3.7 MONEY MARKET REVIEW Throughout 1-year period ended 30 April 2020, the Monetary Policy Committee (MPC) of BNM decided to reduce the OPR by 25 basis points to 2.50% in their meeting held on 3 March 2020. The ceiling and floor rates

of the corridor of the OPR are correspondingly reduced to 2.75% and 2.25%, respectively.

Global economic conditions have weakened in the recent period. The ongoing COVID-19 outbreak has disrupted production and travel activity,

especially within the region. This has also led to greater risk aversion, resulting in tighter financial conditions and a resurgence in financial market volatility. Downside risks to the global growth outlook have increased, particularly in the near term. However, a number of countries have

implemented policy responses. With further anticipated policy measures, these actions are expected to mitigate the economic impact of COVID-19.

The Malaysian economy grew at a moderate pace of 4.3% in 2019. Looking ahead, growth, particularly in the first quarter, will be affected by

the COVID-19 outbreak primarily in the tourism-related and manufacturing sectors. The weakness in the agriculture sector is also likely to persist in the first quarter. For 2020, private and public sector activities will be supportive of growth. Household spending is expected to grow at a slower

pace amid moderate employment and income growth. Investment activity is projected to record a modest recovery, underpinned by ongoing and new projects, both in the public and private sectors. The 2020 economic stimulus package will also provide some support to economic activity.

Although domestic growth is expected to gradually improve in the second half of the year, there are key downside risks, mainly stemming from the evolving nature and prolonged impact of the COVID-19 outbreak, and continued weakness in commodity-related sectors.

In 2020, headline inflation is expected to average higher but remain

modest. The trajectory of headline inflation will be dependent on global oil and commodity price developments and the timing of the lifting of the domestic retail fuel price ceilings. Underlying inflation is expected to be more moderate, amid limited demand pressures despite the continued

expansion in economic activity.


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3.7 MONEY MARKET REVIEW (Cont.)

The reduction in the OPR is intended to provide a more accommodative

monetary environment to support the projected improvement in economic growth amid price stability. The MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation.

(Source: Bank Negara Malaysia Website)

3.8 INTEREST OF UNIT HOLDERS For the financial year under review, there is no circumstances that

materially affect any interest of the unit holders other than business transaction in accordance with the limitations imposed under the Deeds,

Securities Commission’s Guidelines, the Capital Markets and Services Act 2007 and other applicable laws during the financial period then ended.

3.9 SOFT COMMISSIONS AND REBATES During the 1-year financial year ended 30 April, the Fund Manager

received services from one of the stockbroking institutions that indirectly assists in the decision-making process pertaining to the fund's investment.

The services received are in the form of advisory services on Shariah matters. In addition, the Fund Manager also received soft commission from brokers in term of software and computer hardware related to fund’s investment, stock market and economic matters.


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3. LAPORAN PENGURUS

Bagi tempoh kewangan berakhir 30 April 2020 (1 Mei 2019 hingga 30 April

2020).

3.1 PRESTASI DANA PMB Shariah Mid-Cap Fund telah mencapai objektifnya, iaitu untuk mencapai pertumbuhan modal dalam jangka panjang. Namun demikian,

untuk jangka sederhana Dana tidak dapat mencapai objektifnya. Berdasarkan data daripada sumber Lipper, pulangan Dana untuk

jangkamasa 10-tahun mencatat pulangan 4.28%, manakala bagi 5 dan 3-

tahun masing-masing menyusut sebanyak 14.54% dan 14.99%. Bagi tempoh setahun kewangan berakhir 30 April 2019, pulangan Dana

menyusut sebanyak 2.67%.

Prestasi Dana berbanding tanda aras sejak bagi tempoh 5-tahun adalah

seperti berikut:-

Sepanjang tempoh setahun kewangan berakhir 30 April 2020, NAB/unit Dana menyusut sebanyak RM0.0044 atau -2.67% kepada RM0.1602 (cD) daripada RM0.1646 (xD) pada 30 April 2019.

3.2 PENGAGIHAN PENDAPATAN/TERBITAN UNIT PECAHAN Bagi tahun kewangan berakhir 30 April 2020, Dana telah mengisytiharkan

pengagihan pendapatan sebanyak 0.60 sen/unit dalam bentuk unit baharu.

Tiada sebarang unit pecahan dicadangkan sepanjang tempoh setahun

kewangan berakhir 30 April 2020.

Sumber: Lipper


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3.3 POLISI DAN STRATEGI PELABURAN

Dana dilabur sebahagian besarnya dalam portfolio ekuiti patuh Syariah dan sekuriti berkaitan ekuiti patuh Syariah syarikat bersaiz sederhana yang tersenarai di Bursa Malaysia dengan modal pasaran di antara RM1 bilion dan RM7 bilion pada masa pembelian. Dana ini boleh melabur sehingga 20% daripada nilai aset bersih (NAB) dana dalam sekuriti patuh Syariah syarikat yang tersenarai di Bursa Malaysia dengan modal pasaran kurang RM1 bilion dan/atau melebihi RM7 bilion. Dana melabur di antara 70% dan 99.5% daripada NAB dalam ekuiti patuh Syariah. Dalam tahun kewangan berakhir 30 April 2020, pengurus dana melaksanakan aktiviti penjualan dan pembelian untuk portfolio Dana berdasarkan analisa kekuatan relatif. Prospek ekonomi dan sektor industri di mana syarikat beroperasi juga dinilai. Pendedahan ekuiti patuh Syariah Dana dikekalkan di antara 80% dan 95% sepanjang tempoh kajian.

3.4 PERUMPUKAN ASET DANA Pecahan seunit mengikut kelas aset adalah seperti berikut:-

PECAHAN SEUNIT MENGIKUT KELAS ASET

30 April 2020 (%)

30 April

2019 (%)

Perubahan

Peratus Mata

Purata Pendedahan

Pelaburan (%)

Ekuiti Patuh Syariah 90.22 91.09 (0.87) 90.66

Deposit Islam dan lain-lain 9.78 8.91 0.87 9.34

Pada 30 April 2020, pegangan ekuiti patuh Syariah Dana ialah sebanyak 90.22%. Baki 9.78% berada dalam deposit Islam dan pelaburan-pelaburan lain yang dibenarkan.


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3.5 SUASANA EKONOMI NEGARA

Ekonomi Malaysia telah dipacu oleh perbelanjaan sektor swasta yang

lebih tinggi (7.4%; S3 2019: 5.4%) pada suku keempat 2019. Penggunaan swasta meningkat dengan kukuh sebanyak 8.1% (S3 2019: 7.0%), manakala pelaburan swasta mencatatkan pertumbuhan yang lebih tinggi sebanyak 4.2% (S3 2019: 0.3%). Walau bagaimanapun, pertumbuhan

telah menerima kesan daripada gangguan bekalan dalam sektor komoditi. Berikutan itu, ekonomi Malaysia berkembang sebanyak 3.6% pada suku keempat 2019. Berdasarkan pelarasan bermusim suku tahunan, ekonomi meningkat sebanyak 0.6% (S3 2019: 0.9%). Bagi keseluruhan tahun

2019, ekonomi negara berkembang sebanyak 4.3% (2018: 4.7%). Pada suku keempat, purata inflasi keseluruhan adalah lebih rendah, mencerminkan terutamanya luputnya kesan daripada pelaksanaan Cukai Jualan dan Perkhidmatan (Sales and Services Tax, SST). Inflasi teras,

yang tidak mengambil kira kesan perubahan dasar cukai penggunaan, stabil pada kadar 1.4%.

Ringgit menambah nilai sebanyak 2.3% berbanding dengan Dollar Amerika Syarikat (AS) pada suku keempat, disokong terutamanya oleh

aliran masuk semula portfolio bukan pemastautin. Hal ini disebabkan oleh sentimen pelabur yang bertambah baik berikutan perkembangan yang positif dalam rundingan perdagangan global. Langkah yang diambil oleh beberapa buah bank pusat utama dengan mengurangkan kadar dasar

secara serentak turut meningkatkan kesanggupan pelabur global untuk mengambil risiko pada suku tersebut. Hasilnya, Ringgit menambah nilai sebanyak 1.1% berbanding dengan Dollar AS bagi keseluruhan tahun 2019. Perkembangan ini sejajar dengan trend mata wang serantau.

Prestasi Ringgit pada tahun 2020 akan terus dipengaruhi oleh perkembangan di luar negara. Meskipun perjanjian perdagangan Fasa Satu antara AS dengan Republik Rakyat China (RR China) telah menyumbang kepada prospek perdagangan global yang bertambah baik,

namun sentimen pelabur juga terjejas oleh kebimbangan terhadap penularan wabak koronavirus baru-baru ini. Berikutan itu, Ringgit menyusut nilai sebanyak 1.3% berbanding dengan Dollar AS pada tahun ini sehingga 10 Februari dalam keadaan sentimen pasaran kewangan

global yang bertambah lemah.

Pembiayaan bersih berkembang sebanyak 4.7% pada asas tahunan disokong oleh pertumbuhan pinjaman terkumpul yang berterusan. Pertumbuhan pinjaman perniagaan terkumpul bertambah baik manakala

pinjaman isi rumah terkumpul meningkat pada kadar yang stabil. Permintaan untuk pinjaman perniagaan dan pinjaman isi rumah mengekalkan momentumnya yang bertambah baik sejak suku kedua. Walau bagaimanapun, pertumbuhan bon korporat terkumpul menjadi

sederhana sedikit berikutan penebusan yang lebih tinggi.

Menjelang tahun 2020, khususnya pada separuh tahun pertama, pertumbuhan dijangka terjejas akibat penularan wabak koronavirus.

Walau bagaimanapun, impak keseluruhan daripada wabak tersebut ke atas ekonomi Malaysia bergantung pada tempoh masa dan penyebaran wabak tersebut serta langkah tindak balas dasar yang diambil oleh pihak berkuasa. Bagi keseluruhan tahun 2020, pertumbuhan akan disokong

oleh perbelanjaan isi rumah dan pelaksanaan projek pelaburan swasta yang diluluskan baru-baru ini serta perbelanjaan modal sektor awam yang lebih tinggi.


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3.5 SUASANA EKONOMI NEGARA (SAMB.) Namun demikian, masih terdapat risiko yang boleh mengakibatkan

pertumbuhan menjadi lebih perlahan. Risiko-risiko ini termasuklah ketidakpastian mengenai keadaan luaran akibat wabak koronavirus yang sedang menular, pelbagai rundingan perdagangan dan risiko geopolitik, dan juga faktor-faktor dalam negara, termasuk kelemahan sektor komoditi

dan kelewatan pelaksanaan projek. Maka, volatiliti dalam aliran masuk dan keluar modal serta kadar pertukaran dijangka berlaku. Purata inflasi keseluruhan bagi tahun 2020 diunjurkan lebih tinggi berbanding dengan tahun 2019 tetapi kekal pada tahap yang sederhana. Trajektori inflasi

keseluruhan akan bergantung pada perkembangan harga minyak dan harga komoditi sedunia serta masa pemansuhan harga siling bagi harga runcit bahan api domestik. Inflasi asas pada amnya dijangka stabil, mencerminkan kegiatan ekonomi yang terus berkembang dan ketiadaan tekanan permintaan yang besar.

(Sumber: Laman sesawang Bank Negara Malaysia)

Pertumbuhan Keluaran Dalam Negara Kasar Malaysia untuk Suku Keempat 2019

(Sumber: Laman sesawang Bank Negara Malaysia) Inflasi Untuk tempoh setahun berakhir Mac 2020, inflasi berada pada kadar 0.9%

berbanding 0.5% yang dicatatkan dalam tempoh yang sama tahun lalu. Kenaikan inflasi yang perlahan ini disebabkan penurunan dalam indeks pengangkutan, (-2.0%).

Indeks Pengeluaran Perindustrian (IPP) IPP menguncup sebanyak 4.9% pada bulan Mac 2020 berbanding bulan

yang sama tahun sebelumnya. Penguncupan pada bulan Mac 2020 ini disebabkan oleh penurunan dalam semua indeks; pembuatan (-4.2%), perlombongan (-6.5%) dan elektrik (-7.0%).

Perdagangan Luar Negara Untuk tempoh 1-tahun berakhir Mac 2020, imbangan dagangan Malaysia

mencecah nilai RM137.2 bilion berkembang RM13.3 bilion (+10.8%) berbanding tempoh yang sama tahun sebelumnya. Jumlah perdagangan

untuk tempoh 1-tahun berakhir Mac 2020 bernilai RM1,841.0 bilion menguncup RM28.0 bilion (-1.5%) berbanding RM1,869.6 bilion yang dicatatkan dalam tempoh yang sama tahun lepas. Untuk tempoh yang sama, jumlah eksport menguncup 0.7%, mencecah nilai RM989.0 bilion

manakala jumlah import turut menguncup 2.4%, mencecah nilai RM851.9 bilion.

(Sumber data: Portal Rasmi Jabatan Perangkaan Malaysia)

Aktiviti 2019 2019 2018 komponen 2019 2019 2018 Ekonomi S4 S3 S4 Perbelanjaan S4 S3 S4

Pertanian -5.7% +3.7% -0.4%

Penggunaan Akhir Swasta

+8.1% +7.0% +8.5%

Pembinaan +1.0% -1.5% +2.6%

Penggunaan Akhir

Kerajaan

+1.3% +1.0% +4.0%

Perkhidmatan +6.1% +5.9% +6.9%

Pembentukan Modal Tetap Kasar

-0.7% -3.7% +0.3%

Pembuatan +3.0% +3.6% +4.7% Eksport -3.1% -1.4% +1.3% Perlombongan -2.5% -4.3% +0.5% Import -2.3% -3.3% +0.2%

KDNK +3.6% +4.4% +4.7% KDNK +3.6% +4.4% +4.7%


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3.6 SUASANA BURSA SAHAM TEMPATAN Bagi tempoh setahun berakhir 30 April 2020, penanda aras iaitu FBM

MidS Cap Shariah Index (FBM MSCS) menyusut 2,120.94 mata atau -15.26% kepada 11,781.77 manakala penanda aras utama Bursa Malaysia

iaitu FBM KLCI menurun -234.51 mata atau -14.28% kepada 1,407.78.

Bagi tempoh tersebut, FBM MSCS mencatat paras tertinggi 15,038.38 pada 22 Januari 2020 dan paras terendah 7,732.56 pada 19 Mac 2020. Sementara itu, FBM KLCI mencatat paras tertinggi 1,691.00 pada 2 Julai

2019 manakala paras terendah pula ialah 1,219.72 yang dicatat pada 19 Mac 2020. Julat pergerakan FBM MSCS untuk tempoh tersebut ialah 7,305.82 mata berbanding 3,932.17 mata pada tempoh yang sama tahun sebelumnya.

Di minggu akhir Mei, dana asing memasuki semula pasaran tempatan selepas kebuntuan dalam perbincangan perdagangan telah menyebabkan kekacauan di pasaran sejak permulaan bulan Mei. Perbincangan perdagangan gagal selepas AS mempertingkatkan levi ke atas barangan

China yang bernilai AS$200 bilion kepada 25% daripada 10% dan Beijing bertindak balas dengan mengenakan tarif yang lebih tinggi ke atas barangan AS yang bernilai AS$60 bilion.

Ketegangan perdagangan antara China dan AS terus meningkat selepas

langkah Jabatan Perdagangan AS menyenaraikan Huawei dan 70 sekutunya ke "Daftar Entiti", seterusnya menyekat syarikat gergasi telekom China tersebut daripada membeli bahagian dan komponen dari syarikat AS tanpa kelulusan kerajaan AS. Walau bagaimanapun, selepas

itu AS melonggarkan sekatan ke atas Huawei Technologies China. Washington telah memberikan kebenaran kepada Huawei untuk membeli barangan AS hingga Ogos 2019, bertujuan untuk memberi masa kepada pengendali telekom yang bergantung kepada Huawei untuk mencari

alternatif lain.

Di peringkat domestik, Bank Negara Malaysia (BNM) telah menurunkan kadar dasar semalaman (OPR) sebanyak 25 mata asas kepada 3.00%, pemotongan yang pertama sejak 2016. Sementara itu, ekonomi Malaysia

dalam tempoh tiga bulan pertama 2019 tumbuh lebih perlahan pada kadar 4.5% berbanding suku sebelumnya iaitu 4.7%.

Pasaran saham melonjak pada bulan Jun, didorong oleh keyakinan terhadap perdagangan A.S.-China dan ulasan yang menjurus kepada

pelonggaran dasar dari pelbagai bank pusat. Walau bagaimanapun, pasaran saham ditutup rendah pada bulan Julai, Ogos dan September walaupun Malaysia mencatatkan pertumbuhan Keluaran Dalam Negara Kasar (KDNK) 4.9% pada suku kedua 2019. Di antara faktor penyumbang

kejatuhan disebabkan oleh keputusan korporat Malaysia suku kedua yang kurang memberangsangkan, hasil perbendaharaan AS untuk 10 tahun menyongsang atau lebih rendah berbanding hasil 2 tahun, tindakan saling berbalas antara AS dan China telah meningkatkan ketegangan

perdagangan, kerisauan geo-politik dan China membenarkan matawangnya jatuh melepasi paras 7 yuan bagi setiap dolar AS.


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3.6 SUASANA BURSA SAHAM TEMPATAN (SAMB.)

Pada bulan Oktober, FBMKLCI naik 14.07 mata atau 0.9% bulan ke bulan

(MoM) berikutan saham perbankan mencatatkan peningkatan selepas bank rizab persekutuan AS memotong kadar faedah buat kali ketiga tahun

2019 sebanyak 25 mata asas. Di samping itu, AS dan China bersetuju untuk memuktamadkan fasa pertama perjanjian perdagangan, dengan peningkatan tarif diberhentikan dan China membeli produk pertanian A.S. IMF telah menyemak unjuran pertumbuhan global untuk 2019 kepada

3.0% daripada 3.2% disebabkan kejatuhan dalam aktiviti pembuatan dan perdagangan. Ramalan untuk 2020 juga diturunkan kepada 3.4% daripada 3.6%. Diperingkat tempatan, bajet 2020 dianggap sebagai belanjawan pengembangan dan neutral kepada pasaran.

FBMKLCI turun 36.24 mata atau 2.3% MoM untuk ditutup pada 1,561.74 mata pada akhir November 2019. Ekonomi Malaysia meningkat sebanyak

4.4% pada suku ketiga berbanding tahun sebelumnya, paling perlahan dalam setahun tetapi selaras dengan jangkaan. BNM mengurangkan keperluan rizab berkanun (SRR) bank kepada 3.00% daripada 3.50%, berkuatkuasa 16 November. Musim pelaporan pendapatan korporat suku

ketiga masih mengecewakan, menghasilkan keputusan yang bercampur dan menyumbang sedikit pemangkin untuk memacu pasaran. Secara luaran, harapan perjanjian perdagangan Sino-AS suram setelah China memberi amaran akan bertindak balas setelah Presiden AS Donald Trump

menandatangani Rang Undang-undang Hong Kong. Di samping itu, kebimbangan terus wujud ekoran terdapat laporan menyatakan Beijing dan Washington gagal untuk bersetuju mengenai terma perubahan tarif dan Presiden Donald Trump mengancam akan mengenakan tarif baru.

Untuk sebahagian besar Disember, pelabur bertindak balas dengan positif kepada berita bahawa A.S. dan China akan menandatangani perjanjian

perdagangan Fasa Satu. Di UK, Boris Johnson memenangi pilihan raya umum UK dan seterusnya meletakkan negara itu di landasan untuk meninggalkan Kesatuan Eropah pada Januari 2020. Sementara itu, Organisasi Negara Pengeksport Petroleum (OPEC) bersetuju untuk

memotong pengeluaran sebanyak 500,000 tong sehari sehingga Mac 2020, dengan Arab Saudi juga menawarkan potongan tambahan 400,000 tong.

Pengambilan untung dan tekanan jualan terus mengheret indeks penanda

aras, FBM KLCI lebih rendah pada Januari 2020, dengan para pelabur enggan memasuki pasaran di tengah-tengah kekurangan pemangkin

untuk merangsang sentimen pasaran tempatan. Sentimen pasaran juga terkesan oleh ketegangan geopolitik antara AS - Iran dan wabak koronavirus baru yang berpunca dari Wuhan, China. Pertubuhan Kesihatan Sedunia (WHO) mengisytiharkan kecemasan kesihatan global

tetapi tidak mencadangkan menghadkan pergerakan manusia dan barangan dan berkata keadaan adalah terkawal. Bank Dunia mengunjurkan pertumbuhan ekonomi Malaysia mencapai 4.5% pada tahun 2020 dan 2021, dengan perkembangan eksport yang lemah

diimbangi oleh permintaan domestik yang kukuh. Sementara itu, BNM memotong OPR kepada 2.75% dalam langkah-langkah awal untuk memastikan peningkatan pertumbuhan.


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3.6 SUASANA BURSA SAHAM TEMPATAN (SAMB.)

Penjualan saham di pasaran berterusan pada bulan Februari dalam

dagangan yang tidak menentu, ekoran berlakunya krisis politik domestik dan penyebaran wabak koronavirus telah meningkatkan keadaan yang

pesimis di kalangan pelabur. Selepas Pakatan Harapan (PH) kehilangan majoriti di Parlimen, Tun Dr. Mahathir mengemukakan peletakan jawatannya sebagai Perdana Menteri. Walau bagaimanapun, beliau dilantik sebagai Perdana Menteri Interim oleh Yang Dipertuan Agong.

Kemelut politik yang melanda Malaysia telah diselesaikan apabila Yang Dipertuan Agong melantik Tan Sri Muhyiddin Yassin sebagai Perdana Menteri Malaysia ke-8. Mengenai ekonomi, KDNK Malaysia berkembang 3.6% pada S4 2019, menyeret pertumbuhan tahun 2019 kepada 4.3%,

yang terendah sejak krisis kewangan 2009 di tengah-tengah gangguan bekalan di sektor komoditi pada suku tersebut. Sementara itu, pendapatan korporat S4 2019 menyaksikan prestasi di bawah jangkaan adalah lebih banyak berbanding yang melebihi jangkaan.

Pada bulan Mac 2020, FBMKLCI jatuh 8.9% MoM untuk ditutup pada 1.350.89 (melantun dari paras terendah 1.220). Indeks FBMKLCI bermula

lemah ekoran (a) peningkatan jumlah jangkitan COVID-19 di rantau ini telah mengurangkan keinginan pelabur keatas aset berisiko, (b) harga minyak merosot setelah OPEC yang dipimpin oleh Arab Saudi, gagal mencapai kesepakatan dengan pengeluar minyak No. 2 dunia Rusia untuk

meningkatkan pemotongan pengeluaran dan kemudiannya Arab Saudi memulakan perang harga, (c) WHO isytihar wabak koronavirus sebagai pandemik, dan (d) Dow Jones Industrial Average ditutup 2.352.60 mata lebih rendah, atau 9.99%, pada 21.200.62 pada 12 Mac, penurunan

terburuk sejak peristiwa "Black Monday" 1987, ketika ia jatuh lebih dari 22%. Menjelang pertengahan bulan, FBMKLCI melantun kembali didokong oleh (a) Rizab Persekutuan AS akan melaksanakan pelonggaran kuantitatif tanpa had untuk menstabilkan ekonomi, (b) Senat

AS meluluskan pakej rangsangan fiskal $ 2 trilion, (c) Malaysia telah mengumumkan rancangan penyelamatan bernilai keseluruhan RM250 bilion, dan (d) Suruhanjaya Sekuriti dan Bursa Malaysia telah menggantung penjualan singkat sehingga 30 April.

Pada April, FBMKLCI menokok 56.89 mata atau 4.2% MoM lebih tinggi

pada 1,407.78. Bursa Malaysia kembali pulih sepanjang bulan April ekoran para pelabur menaruh harapan yang perintah kawalan pergerakan akan dilonggarkan di negara ekonomi global utama dan prospek kehidupan harian kembali normal. Faktor lain yang membantu pasaran

lebih tinggi adalah (a) kerajaan mengumumkan rangsangan tambahan sebanyak RM10 bilion di bawah Pakej PRIHATIN untuk IKS, (b) BNM juga telah memperkenalkan beberapa langkah pelepasan termasuk moratorium enam bulan untuk peminjam yang akan membolehkan mereka

menangguhkan pembayaran pinjaman kepada bank, dalam tempoh tersebut, (c) SC dan Bursa Malaysia telah melanjutkan penangguhan sementara jualan singkat dari 30 April hingga 30 Jun, 2020 dan (d) OPEC + telah bersetuju untuk mengurangkan pengeluaran minyak mentah global

sebanyak 9.7 juta tong sehari bermula 1 Mei dan akan dilanjutkan hingga akhir Jun.

Dalam keadaan pasaran yang tidak menentu ini, nilai NAB/unit Dana

menguncup 2.67% bagi tempoh setahun kewangan berakhir 30 April 2020.


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3.7 SUASANA PASARAN WANG TEMPATAN SEMASA Dalam tempoh setahun kewangan berakhir 30 April 2020, Jawatankuasa

Dasar Monetari (MPC) BNM dalam mesyuaratnya bertarikh 3 Mac 2020 telah membuat keputusan untuk mengurangkan OPR sebanyak 25 mata

asas kepada 2.50%. Dengan itu, kadar koridor tertinggi dan terendah bagi OPR masing-masing diturunkan kepada 2.75% dan 2.25%.

Keadaan ekonomi global telah merosot dalam tempoh kebelakangan ini.

Wabak COVID-19 yang sedang menular telah mengganggu aktiviti pengeluaran dan aktiviti yang berkaitan dengan perjalanan, terutamanya

di rantau ini. Hal ini juga telah mendorong kepada kegiatan penghindaran risiko yang lebih ketara, lantas mengakibatkan keadaan kewangan menjadi lebih ketat dan mendadak semula volatiliti pasaran kewangan. Risiko kepada prospek pertumbuhan global telah meningkat, terutamanya

dalam tempoh terdekat. Walau bagaimanapun, beberapa negara telah melaksanakan tindak balas dasar. Dengan jangkaan pelaksanaan beberapa langkah dasar, tindakan ini dijangka boleh mengurangkan impak ke atas ekonomi akibat wabak COVID-19.

Ekonomi Malaysia meningkat pada kadar yang sederhana sebanyak 4.3%

pada tahun 2019. Pertumbuhan pada masa akan datang, khususnya pada suku pertama, akan terjejas oleh wabak COVID-19 terutamanya dalam sektor yang berkaitan pelancongan dan sektor perkilangan. Kelemahan dalam sektor pertanian juga dijangka berterusan pada suku pertama.

Pada tahun 2020, aktiviti sektor swasta dan sektor awam dijangka terus menyokong pertumbuhan. Perbelanjaan isi rumah diunjurkan berkembang pada kadar yang lebih perlahan dalam keadaan pertumbuhan pekerjaan dan pendapatan yang sederhana. Aktiviti pelaburan dijangka mencatatkan

pemulihan yang sederhana, disokong oleh projek-projek sektor awam dan swasta yang baharu dan sedang dilaksanakan. Pakej rangsangan ekonomi 2020 juga akan menyediakan sokongan kepada kegiatan ekonomi. Walaupun pertumbuhan dalam negara dijangka bertambah baik

secara beransur-ansur pada separuh tahun kedua, terdapat risiko pertumbuhan menjadi lebih perlahan yang berpunca terutamanya daripada sifat evolusi dan kesan berpanjangan daripada wabak COVID-19 serta kelemahan yang berterusan dalam sektor yang berkaitan komoditi.

Pada tahun 2020, inflasi keseluruhan dijangka mencatatkan purata lebih tinggi tetapi kekal pada kadar yang sederhana. Trajektori inflasi

keseluruhan akan bergantung pada perkembangan harga minyak dan komoditi sedunia serta masa pemansuhan harga siling bagi harga runcit bahan api domestik. Inflasi asas dijangka lebih sederhana, dalam keadaan tekanan permintaan yang terhad meskipun kegiatan ekonomi

terus berkembang.

Pengurangan dalam OPR bertujuan untuk menyediakan persekitaran

monetari yang lebih akomodatif bagi menyokong jangkaan pertumbuhan ekonomi yang bertambah baik dalam keadaan harga yang stabil. MPC akan terus memantau dan menilai imbangan risiko berhubung dengan

prospek pertumbuhan domestik dan inflasi.

(Sumber: Laman sesawang Bank Negara Malaysia)


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3.8 KEPENTINGAN PEMEGANG-PEMEGANG UNIT

Sepanjang tempoh kajian, tiada sebarang kejadian yang menjejaskan

kepentingan Pemegang-Pemegang Unit selain daripada urusniaga-urusniaga yang dijalankan selaras dengan Surat Ikatan Amanah, Garispanduan Tabung Unit Amanah, Akta Pasaran Modal dan Perkhidmatan 2007 dan undang-undang lain yang berkuatkuasa.

3.9 REBAT DAN KOMISEN RINGAN Sepanjang tempoh setahun berakhir 30 April 2020, Pengurus Dana

menerima perkhidmatan daripada salah sebuah institusi broker saham yang membantu proses membuat keputusan berkaitan pelaburan dana

secara tidak langsung. Perkhidmatan yang diterima adalah dalam bentuk khidmat nasihat berkaitan hal-hal Syariah. Sebagai tambahan, Pengurus Dana juga telah menerima komisen ringan daripada syarikat broker saham dalam bentuk perisian dan perkakasan komputer yang berkaitan

dengan pengurusan pelaburan dana dan pengurusan pasaran saham dan ekonomi.

Nota: Laporan ini telah diterjemahkan daripada laporan asal (dalam Bahasa Inggeris). Jika terdapat perbezaan, sila rujuk kepada laporan

Bahasa Inggeris.


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4. TRUSTEE’S REPORT To the Unit Holders of PMB SHARIAH MID-CAP FUND We, CIMB Islamic Trustee Berhad being the trustee for PMB Shariah Mid-Cap

Fund (”the Fund”), are of the opinion that PMB Investment Berhad (”the

Manager”), acting in the capacity as the Manager of the Fund, has fulfilled its

duties in the following manner for the financial year ended 30 April 2020.

(a) The Fund has been managed in accordance with the limitations imposed on

the investment powers of the Manager under the Deeds, the Securities

Commission Malaysia’s Guidelines on Unit Trust Funds, the Capital

Markets and Services Act 2007 (as amended from time to time) and other

applicable laws;

(b) Valuation and pricing for the Fund has been carried out in accordance with

the Deeds and relevant regulatory requirements;

(c) Creation and cancellation of units have been carried out in accordance with

the Deeds and relevant regulatory requirements; and

(d) The distribution of income by the Fund is appropriate and reflects the

investment objective of the Fund.

For and on behalf of

CIMB Islamic Trustee Berhad

LEE KOOI YOKE Chief Executive Officer Kuala Lumpur, Malaysia 30 June 2020


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5. SHARIAH ADVISER’S REPORT To the Unit Holders of PMB SHARIAH MID-CAP FUND We have acted as the Shariah Adviser of PMB SHARIAH MID-CAP FUND (“the

Fund”) managed by PMB INVESTMENT BERHAD (“the Manager”) for the

financial year ended 30 April 2020.

Our responsibility is to ensure that the procedures and processes employed by

the Manager as well as the provisions of the Fund’s 14th Supplemental Deed

dated 6 September 2016 which had been registered with the Securities

Commission (”SC”) on 14 October 2016 are all in accordance with Shariah

principles.

In our opinion, based on the periodic reports submitted to us, the Manager has

managed and administered the Fund in accordance with Shariah principles and

has complied with applicable guidelines, rulings and decisions issued by the

Shariah Advisory Council (“SAC”) of the SC for the financial year ended 30 April

2020.

We confirm that the investment portfolio of the Fund comprises securities cited in

the latest “List of Shariah-Compliant Securities” issued by the SAC of the SC and

instruments which have been classified as Shariah-compliant by the SAC of Bank

Negara Malaysia (“BNM”). As for securities and instruments which have not been

classified by the SAC of the SC nor by the SAC of BNM, we have reviewed and

determined the Shariah status of the said securities and instruments.

For and on behalf of the Shariah Adviser, BIMB SECURITIES SDN BHD

IR. DR. MUHAMAD FUAD ABDULLAH Designated Shariah Person KUALA LUMPUR 25 June 2020


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6. STATEMENT BY MANAGER To the Unit Holders of PMB SHARIAH MID –CAP FUND We, NAJMI BIN HAJI MOHAMED and TENGKU AHMAD BADLI SHAH BIN RAJA

HUSSIN, being two of the Directors of PMB INVESTMENT BERHAD, do hereby

state that in the opinion of the Manager, the financial statement give a true and

fair view on the financial position of the Fund as at 30 April 2020 and of its

Statement of Comprehensive Income, changes in equity and cash flows of the

Funds for the financial year ended 30 April 2020 in accordance with Malaysian

Financial Reporting Standards (MFRSs), International Financial Reporting

Standards (IFRSs) and modified in accordance with the Guidelines on Unit Trust

Funds by the Securities Commission of Malaysia.

For and on behalf of

PMB INVESTMENT BERHAD As Manager of PMB SHARIAH MID-CAP FUND

NAJMI BIN HAJI MOHAMED Director

TENGKU AHMAD BADLI SHAH BIN RAJA HUSSIN Director KUALA LUMPUR 23 June 2020


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7. AUDITOR’S REPORT To the Unit Holders of PMB SHARIAH MID-CAP FUND Report on the Financial Statements Opinion

We have audited the financial statements of PMB SHARIAH MID-CAP FUND, which comprise the statement of financial year as at 30 April 2020, and statement of comprehensive income, statement of changes in equity and statement of cash flows for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory notes. In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Funds as at 30 April 2020 and of its financial performance and its cash flows, for the year then ended in accordance with Malaysian Financial Reporting Standards (MFRSs), International Financial Reporting Standards (IFRSs) and modified in accordance with the Guidelines on Unit Trust Funds issued by the Securities Commission Malaysia. We have also verified the computation of the Management Expenses Ratio and Portfolio Turnover Ratio as disclosed in notes of the financial statements are reasonable. The schedule have been drawn primarily from the accounting records and other records of the Fund which have been subjected to tests and other audit procedures during our review of the Fund's financial statements for the financial year ended 30 April 2020. In our opinion, the informations as a whole, have been presented fairly if deemed in all respects in respect 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 (on Professional Ethics, Conduct and Practice) 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 Manager of the Fund is 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.


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Auditors’ Report to the Unit holders of PMB SHARIAH MID-CAP FUND (CONT.) Information Other than the Financial Statements and Auditor’s Report Thereon (Cont.)

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. We have nothing to report in this regard.

Responsibilities of the Manager for the Financial Statements

The Manager of the Fund is 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 Guidelines on Unit Trust Fund, issued by the Security Commission of Malaysia. The Manager is 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. In preparing the financial statements of the Fund, the Manager is responsible for

assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Manager either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so.

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 scepticism throughout the audit. We also:


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Auditors’ Report to the Unit holders of PMB SHARIAH MID-CAP FUND (CONT.) Auditors’ Responsibility for the Audit of the Financial Statements (Cont.)

• 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 Manager.

• Conclude on the appropriateness of the Manager’s use of the going

concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required

to draw attention in our auditors’ report to the related disclosures in the financial statements of the Fund or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or

conditions may cause the Fund to cease to continue as a going concern.

• 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.


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Other Matters

This report is made solely to the Unitholders of the Fund, as a body, in accordance with the Guidelines on Unit Trust Fund, issued by the Security Commission of Malaysia and for no other purposes. We do not assume responsibility to any other person for the contents of this report.

JAMAL, AMIN & PARTNERS (No. AF 1067)

Chartered Accountants

AHMAD HILMY BIN JOHARI (No: 2977/03/20(J)) Chartered Accountants

23 June 2020 KUALA LUMPUR


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7. FINANCIAL STATEMENT

STATEMENT OF FINANCIAL POSITION AS AT 30 APRIL 2020

NOTE 2020 2019

ASSETS RM RM

INVESTMENT 4

Quoted Shariah-compliant shares in Malaysia

40,224,776 46,612,604

Islamic deposits with licensed

financial institutions in Malaysia 5 5,687,599

4,637,277

45,912,375 51,249,881

OTHER ASSETS

Amount owing by stockbroking companies 348,189 799,441

Profit receivable from Islamic deposits 726 430

Dividend receivable 7,336 81,080

Tax receivable - 11,886

Al-Wadiah savings 128,690 189,696

484,941 1,082,533

TOTAL ASSETS 46,397,316 52,332,414

LIABILITIES

Amount owing to Manager 6 54,664 41,643

Amount owing to Trustee 3,644 4,089

Amount owing to stockbroking

companies - 1,085,341

Distribution 7 1,738,846 -

Other payables and accruals 6,910 6,910

TOTAL LIABILITIES 1,804,064 1,137,983

EQUITY

Unit holders’ capital 8 114,540,469 118,396,375

Retained loss (69,947,217) (67,201,944)

TOTAL EQUITY 9 44,593,252 51,194,431

TOTAL EQUITY AND LIABILITIES 46,397,316 52,332,414

UNITS IN CIRCULATION 8 289,807,679 312,487,734

NET ASSET VALUE PER UNIT (RM) -XD 9 0.1539 0.1638


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STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 30 APRIL 2020

NOTE

2020

2019

RM RM

INVESTMENT INCOME

Profit from Islamic deposits 142,119 296,373

Hibah from Al-Wadiah savings 464 473

Dividend income 929,808 968,968

Profit /(Loss) from sale of investment

1,834,015 (11,782,299)

Unrealised (Loss)/Profit on changes in fair value of investment

10 (2,845,917)

13,859,655

60,489 3,343,170

EXPENSES

Management fee 11 749,709 742,886

Trustee fee 12 49,981 49,526

Audit fee 5,400 4,800

Tax agent fee 1,300 1,000

Stockbroking fee and other

transaction costs 13 231,219 270,149

Sales and services taxation 10,952 5,845

Administrative expenses 6,469 3,470

1,055,030 1,077,676

LOSS BEFORE TAXATION (994,541) 2,265,494

Taxation 14 (11,886) -

LOSS AFTER TAXATION (1,006,427) 2,265,494

LOSS TAXATION IS MADE UP AS FOLLOWS:

REALISED PROFIT/(LOSS) 1,839,490 (11,594,161)

UNREALISED (LOSS)/PROFIT 10 (2,845,917) 13,859,655

(1,006,427) 2,265,494


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STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 30 APRIL 2020

NOTE

Unit holders’ Capital

Retained Losses

Total Equity

RM RM RM

Balance as at 1 May 2018 116,559,128 (69,467,438) 47,091,690

Realised Loss - (11,594,161) (11,594,161)

Unrealised Profit - 13,859,655 13,859,655

Creation of units 2,954,125 - 2,954,125

Cancellation of units (1,116,878) - (1,116,878)

Balance as at 30 April 2019 118,396,375 (67,201,944) 51,194,431

Balance as at 1 May 2019 118,396,375 (67,201,944) 51,194,431

Realised Profit - 1,839,490 1,839,490

Unrealised loss - (2,845,917) (2,845,917)

Creation of units 1,671,968 - 1,671,968

Cancellation of units (5,527,874) - (5,527,874)

Distribution - (1,738,846) (1,738,846)

Balance as at 30 April 2020 114,540,469 (69,947,217) 44,593,252


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STATEMENT OF CASH FLOWS


2020 2019

RM RM

CASH FLOWS FROM INVESTING AND OPERATING ACTIVITIES

Proceeds from sale of investments 47,045,784 43,371,987

Puchase of investments (42,303,948) (53,168,209)

Dividends received 1,003,552 891,363

Profit from Islamic deposit 141,823 302,462

Hibah from Al-Wadiah savings 464 473

Management fee paid (756,378) (743,356)

Trustee fee paid (50,425) (49,557)

Payment for Audit fee (5,400) (5,400)

Payment of Tax agent fee (1,300) (1,000)

Payment of other expenses (248,640) (283,421)

Net cash generated from /(used in) investing and operating activities

4,825,532

(9,684,658)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from creation of units 1,694,479 675,306

Payment of cancellation of units (5,530,695) (1,114,056)

Net cash used in financing activities (3,836,216) (438,750)

NET INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS 989,316 (10,123,408)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 4,826,973 14,950,381

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 5,816,289 4,826,973

CASH AND CASH EQUIVALENTS COMPRISE

Al-Wadiah Savings 128,690 189,696

Islamic deposits with licensed financial institutions in Malaysia

5,687,599 4,637,277

5,816,289 4,826,973


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NOTES TO THE FINANCIAL STATEMENTS


1. THE FUND, THE MANAGER AND PRINCIPAL ACTIVITIES

PMB Shariah Mid-Cap Fund is managed by PMB INVESTMENT BERHAD, was launched on 20 April 1992 under the name of ASM First

Public Fund. On 13 November 2013, this Fund changed its name to ASM Shariah Mid-Cap Fund as stated in Third Supplemental Master Deed and had been registered with Securities Cimmision of Malaysia on 13

December 2013. Pursuant to the Master Prospectus dated on 28 April 2014, this Fund once again changed its name from ASM Shariah Mid-Cap Fund to PMB Shariah Mid-Cap Fund in line with the changes of the

Manager’s name from ASM Investment Berhad to PMB Investment Berhad. This Fund will continue to operate until it is terminated or dissolved in accordance with the provisions of the Deed of Trust and the

Capital Markets and Services Act 2007.

The main activities of PMB Shariah Mid-Cap Fund is marketable securities transaction in which the investment is made in the "Permitted Investments"

as defined under Clause 1 of the Deed of Trust and subject to approval by the Securities Commission Malaysia and in accordance with Shariah Principles from time to time. This includes securities listed on Bursa

Malaysia and money market instruments approved by the Shariah Principles.

The Manager is a company incorporated in Malaysia and wholly owned by

Pelaburan MARA Berhad. The principal activity of the Manager is the management of Unit Trust Funds and Corporate Funds.

2. OBJECTIVE AND POLICIES OF FINANCIAL RISK MANAGEMENT

This Unit Trust Fund operations are exposed to several risks including

equity market risk, stock specific risk, equity-related securities risk, Shariah status reclassification risk, and liquidity risk. Financial risk management is carried out through the system of internal control and

investment restrictions outlined in the Guidelines on Unit Trust Funds by the Securities Commission Malaysia and based on Shariah Principles.

(a) Equity Market Risk The performance of the Fund is subject to the volatility of the stock

market which is influenced by the changes in the economic and political climate, profit rate, international stock market performance and regulatory policies. The movement of the value in the underlying investment portfolio will affect the Net Asset Value (NAV) of the Fund.

Any downward movement of the value will negatively impact the NAV of the Fund.


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2. OBJECTIVE AND POLICIES OF FINANCIAL RISK MANAGEMENT (CONT) (a) Equity Market Risk (Cont.) The table below shows the impact on the NAV of the Fund at the

reporting date due to the possible change in equity price with all other

variables held constant:

QUOTED SHARIAH-COMPLIANT SHARE

IN MALAYSIA

CHANGES IN EQUITY

PRICE

IMPACT ON DISTRIBUTED NET

ASSET VALUE RM % RM 40,224,776 +5 / -5 2,011,239/ (2,011,239)

(b) Stock Specific Risk Prices of a particular stock may fluctuate in response to the

circumstances affecting individual companies such as adverse

financial performance, news of a possible merge of loss of key personnel of a company. Any adverse price movements of such stock will adversely affect the Fund’s NAV.

(c) Equity-related Securities Risk The value of the Shariah-compliant equity-related securities depends

on the value of the underlying equities that the Shariah-compliant securities are related to. Any upward movement in the value of the underlying Shariah-compliant equities may result an upward movement of the value of the respective Shariah-compliant equity-

related securities, and vice versa. Hence, the movement of the value of the Shariah-compliant equity-related securities will affect the value of the Fund. The Fund may also invest in Shariah-compliant equity-related securities such as Shariah-compliant warrants, that have an

expiry date and may experience time decay and the erosion of value accelerates as the instrument advances to its expiry date. If the Shariah-compliant warrant is not exercised on or before the expiry date, the Shariah-compliant warrant will have no value and negatively

impact the NAV of the Fund. (d) Shariah Status Reclassification Risk

This risk refers to the risk that the currently held Shariah-compliant equity securities in the portfolio of Shariah-compliant funds may be reclassified as Shariah non-compliant in the periodic review of the

securities by the SAC of the SC, the Shariah Adviser or the Shariah Supervisory Boards of relevant Islamic indices. If this occurs, the Manager will take the necessary steps to dispose of such securities.

Opportunity loss could occur due to the restriction on the Fund to retain the excess capital gains derived from the disposal of the reclassified Shariah non-compliant securities. In such an event, the Fund is required:-


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FOR THE FINANCIAL YEAR ENDED 30 APRIL 2020 2. OBJECTIVE AND POLICIES OF FINANCIAL RISK MANAGEMENT (CONT)

(d) Shariah Status Reclassification Risk (Cont.) (i) to dispose such securities with immediate effect or within one (1)

calendar month if the value of the securities exceeds or is equal

to the investment cost on the effective date of Reclassification of the List of Shariah-compliant securities (“Reclassification”) by the SAC of the SC, the Shariah Adviser or the Shariah Supervisory Boards of relevant Islamic indices. The Fund is allowed to keep

dividends received and capital gains from the disposal of the securities up to the effective date of Reclassification. However, any dividends received and excess capital gains from the disposal of the Shariah non-compliant securities after the

effective date of Reclassification should be channelled to baitulmal and/or approved charitable bodies;

(ii) to hold such securities if the value of the said securities is below the investment cost on the effective date of Reclassification until

the total subsequent dividends received (if any) and the market price of the securities is equal to the cost of investment at which time disposal has to take place within one (1) calendar month; capital gains (if any) from the disposal of the securities should be

channeled to baitulmal and/or approved charitable bodies; or

(iii) to dispose such securities at a price lower than the investment cost which will result in a decrease in the Fund’s value.

(e) Liquidity Risk

Liquidity risk refers to the ease of liquidating an asset depending on the asset’s volume traded in the market. If the Fund hold assets that are illiquid, or are difficult to dispose of, the value of the Fund will be negatively affected when it has to sell such assets at unfavourable

prices.

The Fund maintains sufficient level of Islamic liquid assets, after consultation with the Trustee, to meet anticipated payments and cancellations of units by unit holders. Islamic liquid assets comprise

cash, Islamic deposits with licensed financial institutions and other Shariah-compliant instruments which are capable of being converted into cash within 7 days.

The table below summarises the Fund’s financial liabilities into

relevant maturity grouping based on the remaining period as at the statement of financial position date to the contractual maturity date. The amounts in the table are the contractual undiscounted cash flows.


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2. OBJECTIVE AND POLICIES OF FINANCIAL RISK MANAGEMENT (CONT)

e) Liquidity Risk (Cont.) 2020

BETWEEN Less than

1 month 1 month to 1 year

Total

Amount owing to Manager 54,664 - 54,664

Amount owing to Trustee 3,644 - 3,644

Distribution 1,738,846 - 1,738,846

Other payables and accruals - 6,910 6,910

Contractual cash outflows 1,797,154 6,910 1,804,064 2019

BETWEEN Less than

1 month 1 month to 1 year

Total

Amount owing to Manager 41,643 - 41,643

Amount owing to Trustee 4,089 - 4,089

Amount owing to stockbroking companies

1,085,341 -

1,085,341

Other payables and accruals - 6,910 6,910

Contractual cash outflows 1,131,073 6,910 1,137,983

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation The financial statements of the Fund are prepared under the historical cost conversion 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), International Financial Reporting Standards (IFRSs) and Guidelines on Unit Trust Funds by the Securities Commission of Malaysia.

The Fund has not yet adopted the following MFRS, that have been issued by the Malaysian Accounting Standards Board (MASB) but are not yet effective:-

Effective date

MFRS 101

Definition of Material (Amendments to MFRS 101)

1 January 2020

MFRS 108 Definition of Material (Amendments to MFRS 108)

1 January 2020

The adoption of the above standards is not expected to have any material impact on the Fund’s financial statements.


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NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 APRIL 2020

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

(b) Quoted Shariah-compliant Shares In Malaysia Quoted Shariah-compliant shares are valued based on bid price at

close of the market on Bursa Malaysia at the reporting date. This is to comply with Malaysian Financial Reporting Standards – MFRS 9.

However, this Unit Trust is subject to the Trust Deed whereby quoted Shariah-compliant shares are valued at the market closing price on

Bursa Malaysia at the reporting date. Accordingly, for any unit trust transactions at this reporting date, the actual sale and purchase price

of the unit trust is set out in note 9.

(c) Dividend Income The amount of dividend from the investment is determined on an accrual basis once the company's share price is recorded "XD"

(without dividend) on Bursa Malaysia. The single tier system was

introduced effective 1 January 2008 and single-tier dividend distributed by a resident company are exempt from tax in Malaysia.

(d) Profit from Islamic Deposits

The profit from Islamic deposits is on accrual basis. The profit received by Fund derived from Malaysia and credited by any bank or

financial institution licensed under the Financial Services Act 2013 or Islamic Financial Services Act 2013 are exempt from tax according Income Tax 1967 (ITA 1967).

(e) Profit/(Loss) from Sale of Investment

Costs incurred to determine profit/(loss) from sale of investment are based on the weighted average cost. Pursuant to ITA 1967, profit from realisation of investments will not be treated as income of the Fund and are not subject to tax.

(f) Unrealised (Loss)/Profit

Unrealised (loss)/profit represent (loss)/profit as a result of changes in Fair Market Value of quoted Shariah-compliant shares using the

Bid price at the reporting date as compared to the previous financial year.

(g) Creation and Cancellation of Units

Proceeds from creation of units and payment of cancellation of units are based on the market value of the units comprising the share of capital and the portion of income at the date of the invention or disposition.


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(h) Distribution Equalisation

Distribution equalisation is accounted for on the date of issue and depreciation based on the average amount of distributable income included in the unit price and disposals.

(i) Cash and Cash Equivalents

Cash and cash equivalents comprise of Islamic deposits and Al-Wadiah savings with banks and licensed financial institutions where

such savings are based on Shariah Principles.

(j) Financial Instruments

Unless specifically disclosed below, the Fund generally applied the

following accounting policies retrospectively. Nevertheless, as permitted by MFRS 9, Financial Instruments, the Fund have elected not to restate the comparatives.

(i) Recognition and Initial Measurement Recognition and Initial MeasurementA financial asset or a financial liability is recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the instrument.

A financial asset or a financial liability is recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the instrument.

A financial asset (unless it is a trade receivable without significant financing component) or a financial liability is initially measured at fair value plus or minus, for an item not at fair value through profit or loss, transaction costs that are directly attributable to its

acquisition or issuance. A trade receivable without a significant financing component is initially measured at the transaction price.

An embedded derivative is recognised separately from the host

contract where the host contract is not a financial asset, and accounted for separately if, and only if, the derivative is not closely related to the economic characteristics and risks of the host

contract and the host contract is not measured at fair value through profit or loss. The host contract, in the event an embedded derivative is recognised separately, is accounted for in accordance with policy applicable to the nature of the host

contract.

(ii) Financial instrument categories and subsequent measurement

Financial assets

Categories of financial assets are determined on initial recognition

and are not reclassified subsequent to their initial recognition unless the Fund changes its business model for managing financial assets in which case all affected financial assets are reclassified on the first day of the first reporting period following

the change of the business model.


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(j) Financial Instruments (Cont.)

(ii) Financial instrument categories and subsequent measurement (Cont.)

Financial assets (Cont.)

a) Amortised cost (AC)

Amortised cost category comprises financial assets that are held within a business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are

solely payments of principal and profit on the principal amount outstanding. The financial assets are not designated as fair value through profit or loss. Subsequent to initial recognition, these financial assets are measured at

amortised cost using the effective profit method. The amortised cost is reduced by impairment losses. Profit income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on

derecognition is recognised in profit or loss.

Profit income is recognised by applying effective profit rate to the gross carrying amount except for credit impaired financial assets where the effective profit rate is applied to

the amortised cost.


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b) Fair value through other comprehensive income (FVOCI)

(i) Debt investments

Fair value through other comprehensive income category comprises debt investment where it is held within a

business model whose objective is achieved by both collecting contractual cash flows and selling the debt investment, and its contractual terms give rise on specified dates to cash flows that are solely payments of

principal and profit on the principal amount outstanding. The debt investment is not designated as at fair value through profit or loss. Profit income calculated using the effective profit method, foreign exchange gains and

losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in other comprehensive income.

On derecognition, gains and losses accumulated in other

comprehensive income are reclassified to profit or loss.

Profit income is recognised by applying effective profit rate to the gross carrying amount except for credit impaired financial assets where the effective profit rate is

applied to the amortised cost.

(ii) Equity investments

This category comprises investment in equity that is not held for trading, and the Fund irrevocably elect to present

subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an investment-by-investment basis. Dividends are recognised as income in profit or loss unless the dividend

clearly represents a recovery of part of the cost of investment.

Other net gains and losses are recognised in other comprehensive income. On derecognition, gains and

losses accumulated in other comprehensive income are not reclassified to profit or loss.


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c) Fair value through profit or loss (FVPL)

All financial assets not measured at amortised cost or fair value through other comprehensive income as described above are measured at fair value through profit or loss. This

includes derivative financial assets (except for a derivative that is a designated and effective hedging instrument). On initial recognition, the Fund may irrevocably designate a financial asset that otherwise meets the requirements to be

measured at amortised cost or at fair value through other comprehensive income as at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial assets categorised as fair value through profit or loss are subsequently measured at their fair value. Net gains or losses, including any profit or dividend income, are recognised in the profit or loss.

All financial assets, except for those measured at fair value through profit or loss and equity investments measured at fair value through other comprehensive income, are subject to impairment assessment.

Financial Liabilities

The categories of financial liabilities at initial recognition are as follows:

a) Fair value through profit or loss (FVPL)

Fair value through profit or loss category comprises financial liabilities that are derivatives (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument), contingent consideration in a business

combination and financial liabilities that are specifically designated into this category upon initial recognition.


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Financial Liabilities (Cont.)

The categories of financial liabilities at initial recognition are as follows:

a) Fair value through profit or loss (FVPL) (Cont.)

On initial recognition, the Fund may irrevocably designate a financial liability that otherwise meets the requirements to be measured at amortised cost as at fair value through profit or

loss:

(a) if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise;

(b) a group of financial liabilities or assets and financial

liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided internally on that basis to the

Fund’s key management personnel; or

(c) if a contract contains one or more embedded derivatives and the host is not a financial asset in the scope of MFRS 9, where the embedded derivative significantly

modifies the cash flows and separation is not prohibited.

Financial liabilities categorised as fair value through profit or loss are subsequently measured at their fair value with gains or losses, including any profit expense are recognised in the

profit or loss.

For financial liabilities where it is designated as fair value through profit or loss upon initial recognition, the Fund recognise the amount of change in fair value of the financial

liability that is attributable to change in credit risk in the other comprehensive income and remaining amount of the change in fair value in the profit or loss, unless the treatment of the effects of changes in the liability’s credit risk would create or

enlarge an accounting mismatch.


(47)





Financial Liabilities (Cont.)

b) Amortised cost (AC)

Other financial liabilities not categorised as fair value through profit or loss are subsequently measured at amortised cost using the effective profit method.

Profit expense and foreign exchange gains and losses are

recognised in the profit or loss. Any gains or losses on derecognition are also recognised in the profit or loss.

c) Provisions Provision is recognised only when the Fund has a present obligation (legal and constructive) as a result of a past event, it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the

obligation can be estimated reliably.

Provision is reviewed at each reporting date and adjusted to

reflect the current best estimate. If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of

the time value of money is material, provisions are discounted using a current pre tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is

recognised as a finance cost. (iii) 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 expired or transferred, or control of the asset is not retained or substantially all of the risks and rewards of ownership of the financial asset are transferred to another party. On derecognition of a financial asset, the difference between the

carrying amount of the financial asset and the sum of consideration received (including any new asset obtained less any new liability assumed) is recognised in profit or loss.


(48)


FOR THE FINANCIAL YEAR ENDED 30 APRIL 2020 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)


(iii) Derecognition (Cont.)

A financial liability or a part of it is derecognised when, and only

when, the obligation specified in the contract is discharged, cancelled or expired. A financial liability is also derecognised when its terms are modified and the cash flows of the modified liability are substantially different, in which case, a new financial

liability based on modified terms is recognised at fair value. 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.

(iv) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Fund currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and liability simultaneously.

(v) Unitholders’ Contribution

The Unitholders’ contributions to the Fund meet the definition of puttable instruments classified as equity under the MFRS 132.

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.

(k) Impairment of Assets (i) Financial assets

Unless specifically disclosed below, the Fund generally applied the following accounting policies retrospectively. Nevertheless, as

permitted by MFRS 9, Financial Instruments, the Fund elected not to restate the comparatives.

The Fund recognised loss allowances for expected credit losses

on financial assets measured at amortised cost, debt investments measured at fair value through other comprehensive income,

contract assets and lease receivables. Expected credit losses are a probability-weighted estimate of credit losses.


(49)



(k) Impairment of Assets (Cont.) (i) Financial assets (Cont.)

The Fund measure loss allowances at an amount equal to lifetime expected credit loss, except for debt securities that are determined to have low credit risk at the reporting date, cash and bank

balance and other debt securities for which credit risk has not increased significantly since initial recognition, which are measured at 12-month expected credit loss. Loss allowances for trade receivables, contract assets and lease receivables are

always measured at an amount equal to lifetime expected credit loss.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when

estimating expected credit loss, the Fund consider reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Fund’s historical

experience and informed credit assessment and including forward-looking information, where available.

Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of the

asset, while 12-month expected credit losses are the portion of expected credit losses that result from default events that are possible within the 12 months after the reporting date. The maximum period considered when estimating expected credit

losses is the maximum contractual period over which the Fund are exposed to credit risk.

The Fund estimate the expected credit losses on trade receivables using a provision matrix with reference to historical credit loss experience.

An impairment loss in respect of financial assets measured at amortised cost is recognised in profit or loss and the carrying amount of the asset is reduced through the use of an allowance account.

An impairment loss in respect of debt investments measured at

fair value through other comprehensive income is recognised in profit or loss and the allowance account is recognised in other comprehensive income.

At each reporting date, the Fund assess whether financial assets

carried at amortised cost and debt securities at fair value through other comprehensive income are credit impaired. A financial asset

is credit impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.


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(k) Impairment of Assets (Cont.) (i) Financial assets (Cont.)

The gross carrying amount of a financial asset is written off (either partially or fully) to the extent that there is no realistic prospect of recovery. This is generally the case when the Fund determines

that the obligor does not have assets or sources of income that could generate sufficient cash flows to pay the amounts subject to the write-off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the

Fund’s procedures for recovery amounts due. (ii) Other Assets

The carrying amounts of other assets (except for inventories, contract assets, lease receivables, deferred tax asset, assets arising from employee benefits, investment property measured at fair value and non-current assets (or disposal groups) classified as

held for sale) are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For goodwill and intangible assets that have indefinite

useful lives or that are not yet available for use, the recoverable amount is estimated each period at the same time.

For the purpose of impairment testing, assets are grouped

together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units. Subject to an operating segment ceiling test, for the purpose of goodwill

impairment testing, cash-generating units to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs of disposal. In assessing value in use, the estimated future cash flows are

discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash-generating unit.

An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit exceeds its estimated recoverable amount.


(51)



(k) Impairment of Assets (Cont.)

(ii) Other Assets (Cont.)

Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of cash-generating units are

allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit (group of cash-generating units) and then to reduce the carrying amounts of the other assets in the cash-generating unit (groups of cash-generating units) on a

pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at the end of each reporting period for any indications that the loss has decreased or no longer exists.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognised. An impairment loss is reversed only to the extent that the asset’s carrying amount does not

exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are credited to profit or loss in the financial year in which the reversals are recognised.

(l) Fair Value of financial instruments

The carrying values of the financial instruments recorded at the date

of reporting approximate their fair values.


(52)


FOR THE FINANCIAL YEAR ENDED 30 APRIL 2020 4. INVESTMENTS

Details are as follows:

2020 2019

RM

RM

(a) Quoted Shariah – compliant shares @ cost 40,502,117 44,044,027

(Deficit)/Surplus (277,341) 2,568,577

Market Value 40,224,776 46,612,604

(b) Islamic Deposits 5,687,599 4,637,277

Total Investments 45,912,375 51,249,881

The list of investments are as in Schedule A.

5. ISLAMIC DEPOSITS WITH LICENSED FINANCIAL INSTITUTIONS IN MALAYSIA

Islamic deposits include fixed deposits based on Shariah Principles in licensed financial institutions as follows:-

2020 2019 RM RM

(a) Islamic Banks - 2,495,049

(b) Investment Banks 5,687,599 2,142,228

5,687,599 4,637,277

Average profit rate during the financial period and the average maturity of the Islamic deposits on the closing date are as follows:-

Average

Profit Rate %

Average Maturity Period

Days (a) Investment Banks 2.47 6

6. AMOUNT OWING TO MANAGER

2020 2019 RM RM

Creation of unit receiveable - 22,512

Cash payable for cancellation of units - (2,822)

Management fee accrued (54,664) (61,333)

(54,664) (41,643)


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FOR THE FINANCIAL YEAR ENDED 30 APRIL 2020 7. DISTRIBUTION

The Manager with approval by the Trustee has declared income distribution of 6.00 sen (gross)(6.00 sen net) per unit for the financial year ended 30 April 2020 [2019: No income distribution had been declared].

Distributions declared are derived from the following sources:-

2020 2019 RM RM Profit from Islamic deposits 142,119 -

Hibah from Al-Wadiah savings

464 -

Dividends Income 929,808 -

Profit from sale of investment 1,834,015 -

Undistributed profit for the year (100,644) -

2,805,762 -

Expenses (1,055,030) -

Taxation (11,886) -

(1,738,846) -

Unit in circulation 289,807,679 -

Gross distribution per unit (sen)

0.60 -

Net distribution per unit (sen)

0.60 -

Distribution declared after taking into account the unrealised loss in the current financial year amounting RM2,845,917 (2019: Unrealised profit RM13,859,655)

8. UNIT HOLDERS’ CAPITAL

2020 2019

Unit RM Unit RM

Balance brought forward

312,487,734 118,396,375 300,841,000 116,559,128

Creation of units during the period

9,692,159

1,671,968

18,674,559

2,954,125

322,179,893 120,068,343 319,515,559 119,513,253

Cancellation of units during the period

(32,372,214) (5,527,874) (7,027,825) (1,116,878)

Balance carried forward

289,807,679 114,540,469 312,487,734 1118,396,375


(54)


FOR THE FINANCIAL YEAR ENDED 30 APRIL 2020 9. NET ASSET VALUE

Net Asset Value is derived after deducting the total liabilities of the Fund from the Fund’s total assets.

To comply with MFRS 9 in preparing these Financial Statements, quoted Shariah-compliant shares have been valued at the bid price at the market close on Bursa Malaysia at the reporting date as compared to the Deed of Trust which sets market value at the last quoted price on Bursa Malaysia for

the determination of the selling price and purchase of unit trusts at that date.

Accordingly, on 30 April 2020 and 30 April 2019 the adjustment of the net asset value per unit for the purpose of distributing to the unit holders of the unit trust as at the above dates is as follows:-

2020 2019

RM RM/Unit RM RM/Unit

Net asset value per unit for the distribution of unit trust

44,695,911 0.1542 51,433,257 0.1646

Net asset value difference when

complying with MFRS 9

102,659 0.0003 238,826 0.0008

Net asset value per unit attributable to the unit holders as disclosed in

the Financial Statements

44,593,252 0.1539 51,194,431 0.1638

10. UNREALISED (LOSS) / PROFIT ON CHANGES IN FAIR VALUE OF

INVESTMENT 2020

RM 2019

RM

Unrealised (loss)/profit on quoted Shariah - compliant shares (277,341)

2,568,577

Total unrealised (loss)/profit (277,341)

2,568,577

Less: Unrealised profit /(loss) from previous year

2,568,576 (11,291,078)

(2,845,917) 13,859,655


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FOR THE FINANCIAL YEAR ENDED 30 APRIL 2020 11. MANAGEMENT FEE The fee paid to the Manager, PMB INVESTMENT BERHAD is computed on

a daily basis at 1.5% per annum on the Net Asset Value before deducting Management fee and Trustee fee for that particular day.

12. TRUSTEE FEE The fee paid to the Trustee, CIMB ISLAMIC TRUSTEES BERHAD is computed on

a daily basis at 0.1% per annum on the Net Asset Value before deducting Management fee and Trustee fee for that particular day.

13. TRANSACTIONS WITH BROKER/DEALER (01/05/2019 – 30/04/2020)

Broker/Dealer

Transaction Value

RM

%

Commission & Fee

RM

%

Hong Leong Investment Bank

Bhd.

9,586,532 10.92 25,550 11.06

KAF Equities Sdn. Bhd. 8,626,493 9.82 21,898 9.48

Affin Hwang Investment Bank Bhd.

8,289,109 9.44 21,389 9.25

AmInvestment Bank Bhd. 8,146,388 9.28 20,354 8.80

Alliance Investment Bank Bhd.

7,800,691 8.88 22,646 9.79

RHB Investment Bank Bhd. 7,696,152 8.77 20,470 8.85

Public Investment Bank Bhd. 7,630,856 8.69 17,814 7.70

BIMB Securities Sdn Bhd 7,010,073 7.98 21,476 9.29

Kenanga Investment Bank

Bhd.

6,683,358 7.61 17,336 7.50

Maybank Investment Bank Bhd.

6,183,060 7.04 18,157 7.85

MIDF Amanah Investment

Bank Bhd.

6,087,388 6.93 15,517 6.71

CGS-CIMB Securities Sdn. Bhd.

4,073,039 4.64 8,612 3.72

Total Transaction 87,813,139 100.00 231,219 100.00


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FOR THE FINANCIAL YEAR ENDED 30 APRIL 2020 14. TAXATION

2020 RM

2019

RM

Taxation for the year - -

Over provision of tax receivable (11,886) -

Tax expenses for the year (11,886) - Taxes are imposed at a rate of 24% on dividend chargeable income less allowance allowed at 10%.

The reconciliation between tax expense and accounting profit multiplied by 24% tax rates for the financial period ended 30 April 2020 and 30 April 2019 are as follows:-

2020 RM

2019

RM

(Loss) / Profit before taxation (994,541) 2,265,494

Taxation at rate of 24% 238,690 (543,718)

Tax effect of income not subject to tax 14,517 802,361

Tax effect of expenses not allowed (253,207) (258,643)

Over provision of tax receivable 11,886 -

Taxation for the year 11,886 -

15. MANAGER’S AND DIRECTORS’ INTERESTS

The details of the interests of the Manager and Directors of the Company in the Fund are as follows:-

2020 2019

(a) Unit Holding

PMB INVESTMENT

BERHAD

Nil Nil

Directors Nil Nil

(b) Expenses

Management fee paid and accrued

RM749,709 RM742,886

Transactions between Fund, Manager and related parties are based on normal business transactions. The holding of the Manager’s unit is based on beneficial holdings.


(57)


FOR THE FINANCIAL YEAR ENDED 30 APRIL 2020 16. MANAGEMENT EXPENSES RATIO (MER)

MER is calculated as follows:- 2020 2019

MER =

Fees + Expenses incurred x 100

Average net asset value of the Fund calculated on a daily basis

1.65%

1.63%

The ratio of total fees and expenses of the Fund over the daily average net

asset value of the Fund for the financial year ending is reasonable.

17. PORTFOLIO TURNOVER RATIO (PTR)

PTR is calculated as follows:

2020 2019

PTR =

(Total acquisition + Total disposals)/2

Average net asset value of the Fund calculated on a daily basis

0.88 times

0.99 times

The turnover ratio of the average amount of the purchase cost and the sale of investments over the daily average net asset value of the Fund for the financial year ending is reasonable.

18. FINANCIAL INSTRUMENTS

a) Classification of financial instruments

The table below provides an analysis of financial instruments categories as follows:

i) Amortised Cost (“AC”)

ii) Fair Value Through Profit or Loss (“FVPL”)

iii) Fair Value Through Other Comprehensive Income (“FVOCI”)


(58)


FOR THE FINANCIAL YEAR ENDED 30 APRIL 2020 18. FINANCIAL INSTRUMENTS (CONT.)

a) Classification of financial instruments (Cont.)

2020 Carrying

Amount

AC

FVPL

FVOCI MFRS 9 RM RM RM RM

Financial Assets

Quoted Shariah

– compliant shares in Malaysia

40,224,776

-

40,224,776

-

Islamic deposits

with licensed financial

institution in Malaysia

5,687,599

5,687,599

- -

Profit receivable

from Islamic deposits

726 726 - -

Dividend

receivable 7,336 7,336 - -

Al-Wadiah savings 128,690 128,690 - -

Amount owing

by stockbroking companies

348,189 348,189

- -

46,397,316 6,172,540 40,224,776 -

Carrying Amount

OL

MFRS 9 RM RM

Financial Liabilities Amount owing to Manager 54,664 54,664


Distribution 1,738,846 1,738,846


1,804,064 1,804,064


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18. FINANCIAL INSTRUMENTS (CONT.)

b) Classification of financial and financial liabilities on the date of initial application of MFRS 9

19. FUNCTIONAL AND PRESENTATION CURRENCY

The financial statements are presented in Ringgit Malaysia, which is the Fund’s functional and presentation currency.

2019 Carrying Amount

AC

FVPL

FVOCI

MFRS 9 RM RM RM RM

Financial Assets

Quoted Shariah – compliant shares in

Malaysia

46,612,604 - 46,612,604 -

Islamic deposits

with licensed financial institution in

Malaysia

4,637,277

4,637,277

-

-

Profit receivable

from Islamic deposits

430 430 - -

Dividend

receivable 81,080 81,080 - -

Al-Wadiah savings 189,696 189,696

Amount Owing by

stockbroking 799,441 799,441

- -

52,320,528 5,707,924 46,612,604 -

Carrying Amount

OL

MFRS 9 RM RM

Financial Liabilities Amount owing to Manager 41,643 41,643


Amount owing to stockbroking companies

1,085,341 1,085,341


1,137,983 1,137,983


(60)

SCHEDULE A

LIST OF INVESTMENTS AS AT 30 APRIL 2020

RM RM % A

QUOTED SHARIAH-COMPLIANT SHARES

MAIN MARKET

CONSUMER PRODUCT & SERVICES

1 Guan Chong Berhad 788,800 1,669,988 1,830,016 4.10

2 MBM Resources Berhad 560,000 2,255,248 1,624,000 3.64

3 PPB Group Berhad 100,000 1,862,275 1,646,000 3.69

4 QL Resources Berhad 220,000 1,448,045 1,793,000 4.02

Total 7,235,556 6,893,016 15.45

ENERGY 1 Dayang Enterprise Holdings

Berhad

875,000 1,617,119 1,102,500 2.47

2 Serba Dinamik Holdings

Berhad

1,070,000 2,038,141 1,690,600 3.79

3 Yinson Holdings Berhad 390,000 2,199,943 2,016,300 4.52

Total 5,855,203 4,809,400 10.78

FINANCIAL SERVICES 1 BIMB Holdings Bhd 420,000 1,874,011 1,327,200 2.98

Total 1,874,011 1,327,200 2.98

INDUSTRIAL PRODUCT & SERVICES 1 Dufu Technology Corp.

Berhad

550,000 1,188,713 2,101,000 4.71

2 Kelington Group Berhad 1,460,000 1,662,516 1,518,400 3.41

3 Scientex Berhad 219,000 1,891,613 1,795,800 4.03

4 Sunway Berhad 1,100,000 1,827,155 1,727,000 3.87

5 Uchi Technologies Berhad 625,000 1,846,684 1,500,000 3.36

6 UEM Edgenta Berhad 91,700 258,735 229,250 0.51

Total 8,675,416 8,871,450 19.89

PROPERTY

1 YNH Property Berhad 200,000 539,640 492,000 1.10

Total 539,640 492,000 1.10

PERCENTAGE NUMBER OF AT AT OF NET NO. NAME OF INVESTMENT SHARES COST FAIR VALUE ASSET VALUE


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SCHEDULE A LIST OF INVESTMENTS AS AT 30 APRIL 2020

TOTAL QUOTED SHARIAH - COMPLIANT SHARES 40,502,117 40,224,776 90.20 UNREALISED LOSS (277,341) 40,224,776

RM RM % A

QUOTED SHARIAH-COMPLIANT SHARES

MAIN MARKET

TECHNOLOGY

1 Frontken Corporation

Berhad

911,000 1,166,007 2,022,420 4.54

2 Mi Technovation Berhad 670,000 1,515,620 1,527,600 3.43

3 Vitrox Corporation

Berhad

216,200 1,743,629 1,792,298 4.02

Total 4,425,256 5,342,318 11.99

TRANSPORTATION & LOGISTICS

1 Sealink International

Berhad 5,800,200 2,132,311 1,595,055 3.58

2,132,311 1,595,055 3.58

UTILITIES 1 Mega First Corporation

Berhad

466,000 1,795,146 2,320,680 5.20

2 Taliworks Corporation

Berhad

2,050,000 1,769,377 1,670,750 3.75

Total 3,564,523 3,991,430 8.95

ACE MARKET

INDUSTRIAL PRODUCTS & SERVICES 1 Kejuruteraan Asastera

Berhad

2,551,400 1,415,110 2,066,634 4.63

2 Supercomnet

Technologies Berhad

2,795,500 2,068,283 2,110,603 4.73

3 Widad Group Berhad 1,000,000 397,190 365,000 0.82

Total 3,880,583 4,542,237 10.18 TECHNOLOGY 7.81 1 Greatech Technology

Berhad

666,200 1,790,838 1,898,670 4.26

2 JF Technology Berhad 300,000 528,780 462,000 1.04

Total 2,319,618 2,360,670 5.30



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RM RM %

B ISLAMIC DEPOSITS

1 Kenanga Investment Bank Bhd

Commodity Murabahah

2,232,308 2,232,767 5.01

2 Kenanga Investment Bank Bhd

Commodity Murabahah435,324

520,000 520,070 1.17

3 MIDF Amanah Investment Bank Berhad

Commodity Murabahah

2,935,291 2,935,488 6.58

Total Islamic Deposits 5,687,599 5,688,325 12.76

45,913,101 102.96



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9. BUSINESS INFORMATION NETWORK REGIONAL OFFICES Head Office Level 21, 1 Sentral, Jalan Rakyat Kuala Lumpur Sentral 50470 Kuala Lumpur

Tel: (03) 27859900 Fax: (03) 27859901 E-mail: [email protected] Central Region Tingkat 1, Wisma PMB

No. 1A, Jalan Lumut 50400 Kuala Lumpur Tel: (03) 40454000 Fax: (03) 40443800

H/P: (013) 7948058 (Suhaila Ridzuan)


[email protected]

Northern Region No. 46 1/F Jalan Todak 2

Pusat Bandar Seberang Jaya 13700 Perai, Pulau Pinang Tel: (04) 3909036 Fax: (04) 3909041

H/P: (013) 2710392 (Suhaila Malzuki)


[email protected]

Eastern Region Lot D103, Tingkat 1, Mahkota Square

Jalan Mahkota, 25000 Kuantan, Pahang Tel: (09) 5158545 Fax: (09) 5134545

H/P: (017) 7710117 (Ameer Khalifa Mohd Azman)

E-mail: [email protected] [email protected]

Southern Region No. 17-01, Jalan Molek 1/29 Taman Molek, 81100 Johor Bahru

Tel: (07) 3522120 Fax: (07) 3512120

H/P: (012) 2070440 (Ahmad Zaki Omar)



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REGIONAL OFFICES Sarawak No. 59, Tingkat Satu, Jalan Tun Jugah 93350 Kuching, Sarawak

Tel: (082) 464402 Fax: (082) 464404

H/P: (013) 8230645 (John Nyaliaw)

E-mail: [email protected] [email protected] Sabah Lot 16-4, Block C, Level 3 Harbour City, Sembulan 88100 Kota Kinabalu, Sabah Tel: (088) 244129 Fax: (088) 244419

H/P: (013) 8808273 (Hadjira@Azeera Mangguna)


STATE SALES OFFICE: Kedah No. 65, 1st Floor, Kompleks Sultan Abdul Hamid, Persiaran SSAH 1A, 05050 Alor Setar, Kedah Tel: (04) 7724000

E-mail: [email protected] Kelantan

Tingkat 1, Lot 1156, Seksyen 11,

15100 Kota Bharu, Kelantan Tel: (09) 7421791

H/P: (019) 9894866 (Rosnani Ibrahim)


AGENCY OFFICES Kuala Lumpur Nor Azihan Alias

AAG Suite, Level 3, Wisma PMB, No. 1A, Jalan Lumut

50400 Kuala Lumpur

H/P: (019) 2277375


Abdul Samad Ashaari Al-Fateh, Suite 1402, Level 14, G Tower 199, Jalan Tun Razak 50400 Kuala Lumpur

H/P: (019) 2206085



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Kuala Lumpur

Amir Md Yusof

No. 55-1, Jln 3/23A, Off Jln Genting Klang, Tmn Danau Kota, 53300 Kuala Lumpur

H/P: (011) 16776969


Ahmad Sanusi Husain Tingkat 16, Menara TH 1 Sentral, Jalan Rakyat, Kuala Lumpur Sentral,

50470 Kuala Lumpur

H/P: (019) 2348786

E-mail: [email protected] Melaka

Datuk Md. Ramly Mohamad

No. 253-A, Jalan TMR 3, Taman Melaka Raya

75000 Melaka

Tel: (06) 2815051 Fax: (06) 2815046 H/P: (012) 6093859

E-mail: [email protected] Terengganu

Mohd Nazri Othman No. 472-C, Tingkat 1, Jalan Kamaruddin 20400 Kuala Terengganu, Terenggganu

Tel: (09) 6271820 H/P: (019) 9847878

E-mail: [email protected] Nor Azihan Alias Lot 9520, Ground Floor, Jalan Kemaman Dungun,

24000 Bandar Kertih, Kemaman, Terenggganu

H/P: (019) 2277375


Kedah

Mohd Azrik Sapee

CEO POD 1, Tingkat 4, Wisma Ria 08000 Sungai Petani, Kedah

H/P: (017) 4219195


Pulau Pinang

Norshuhada Din

115, 1st Floor, Jalan Dagangan 2, Pusat Bandar Bertam Perdana 1, 13200 Kepala Batas, Pulau Pinang

H/P: (011) 14711650



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Institutional Unit Trust Agents: Financial Institutions For Autodebit Services:

iFast Capital Sdn Bhd

Phillip Mutual Berhad

KAF Investment Funds Berhad

TA Investment Management

Berhad

Bank Simpanan Nasional

CIMB Bank Berhad

Malayan Banking Berhad/Maybank Islamic Berhad

RHB Bank Berhad/RHB Islamic Bank Berhad

Corporate Unit Trust Adviser (CUTA):

Genexus Advisory Sdn. Bhd


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10. INFORMATION OF INVESTOR RELATION

CUSTOMER SERVICES

You may communicate with us via:-

Investor Relation Careline : (03) 2785 9900

E-mail : [email protected]

Our Customer Service Personnel would assist your queries on our unit

trust funds.

NOTES TO PROSPECTIVE INVESTORS

This report in not an offer to sell units.

Prospective investor should read and understand the contents of the

Prospectus. If you are in doubt, please consult your investment

adviser on this scheme.

Past performance of the Fund is not an indication of future

performance and unit prices and investment returns may fluctuate.


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11. INVESTOR PROFILE UPDATE FORM

pmb shariah mid-cap fund · 4/30/2020 · annual report - pmb shariah mid-cap fund >>> 4)...

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