ANNUAL REPORT 30 June 2013 - eUnitTrust.com.my · Bursa on 25 July 2012 at an issue price of RM2.8...

Manager

PHILLIP MUTUAL BERHAD (570409-K)

B-2-7 Block B Level 2 Unit 7, Megan Avenue II, 12 Jalan Yap Kwan Seng, 50450 Kuala Lumpur

Tel : (603)2783 0300 Fax : (603)2166 6417

Email : [email protected] Website : http://www.phillipmutual.com

Trustee

CIMB COMMERCE TRUSTEE BERHAD (313031-A)

ANNUAL REPORT

30 June 2013

mailto:[email protected]

http://www.phillipmutual.com/

Phillip Master Equity Growth Fund Page 1

CONTENTS

1. MANAGER'S REPORT 2

- Type Of Fund 2

- Category Of Fund 2

- Investment Objective 2

- Investment Policy 2

- Performance Benchmark 2

- Distribution Policy 2

- Fund Performance 2 – 3

- Details Of Distribution And Unit Split 3

- Market Review 4

- Market Outlook 5 – 6

- Investment Strategy 6

- Asset Allocation Of The Fund 7

- Significant Changes In The State Of Affairs Of The Fund 8

- Disclosure Of Circumstances That Materially Affect The Interest of The Unitholder 8

- Breakdown Of Unit Holdings By Size 8

- Soft Commission Received From Brokers 8

2. TRUSTEE'S REPORT 9

3. STATEMENT BY MANAGER 10

4. INDEPENDENT AUDITORS' REPORT 11 – 12

5. STATEMENT OF FINANCIAL POSITION 13

6. STATEMENT OF COMPREHENSIVE INCOME 14

7. STATEMENT OF CHANGES IN NET ASSET VALUE 15

8. STATEMENT OF CASH FLOWS 16

9. NOTES TO THE FINANCIAL STATEMENTS 17 – 31

10. FUND PERFORMANCE 32 – 33

11. CORPORATE INFORMATION 34


1. MANAGER'S REPORT For the financial year ended 30 June 2013

TYPE OF FUND

Growth Fund.

CATEGORY OF FUND

Equity Fund.

INVESTMENT OBJECTIVE The objective of Phillip Master Equity Growth Fund (“PMEGF”) is to provide investors with high capital growth over the medium to long-term through investments in high growth and situational stocks.

Achievement of Investment Objective The Fund was managed within its investment objective and has achieved the Fund’s target in generating consistent and gradual growth. For the financial period under review, the Fund gained 9.3% vis-à-vis the FBM Emas Index benchmark of 0.7%.

INVESTMENT POLICY

Phillip Master Equity Growth Fund is an aggressive equity growth fund, which will invest minimum 70% and maximum 95% of its assets in a diversified portfolio of equities and equity-related securities. The fund will maintain a minimum of 5% in liquid assets.

PERFORMANCE BENCHMARK

FBMEMAS Index.

DISTRIBUTION POLICY

As the Phillip Master Equity Growth Fund aims to achieve capital growth, distribution of income from the Fund will be of secondary importance. Distribution from the Fund, if any, will be reinvested into additional units based on the NAV per unit on payment or distribution date for purposes of capital growth. FUND PERFORMANCE Overall, the Fund gained 26.6% during the period under review compared to the index’s 12.7% return. The Fund gained 3.4% in comparison to the index’s 4.8% gain during the 1H as lower equity exposure coupled with underperformance of construction stocks in the portfolio dragged the fund performance. For the 2H of the period under review, the fund gained 22.5% in comparison to benchmark’s 7.6% return as the fund’s strategy of increasing exposure on oil & gas and midcap high growth stocks paid dividend. At end-June 2013, the fund’s equity exposure stood at 76.4%.


Performance of PMEGF vs FBM Emas (Since inception till 30 June 2013)

Source: Bloomberg

Fund performance from July 12 – June 2013

30.06.13 30.06.12 % chg

RM RM %

Total NAV 2,776,267 1,490,616 +86.25

NAV/unit 1.3789 1.0911 +26.38

(Source: Financial Statement Audited by Ernst & Young)

Top Five Investments

30 June 13 30 June 12

Securities % Securities %

Dayang 6.92 Prestariang 7.78

Can-one 6.44 TSH 6.44

Yinson 6.04 Genting 5.76

Maybank 5.77 MBSB 5.51

QL 5.60 Press Metal-LA 5.39

DETAILS OF DISTRIBUTION AND UNIT SPLIT

For the period under review, no distribution and unit split was made by the Fund.


MARKET REVIEW

During the period under review FBM KLCI (KLCI) registered a 5.6% gain in the 2H12, buoyed by bountiful liquidity as major central banks around the world continued to introduce easing measures to support growth. Foreign institutions were net buyers for Malaysian equities for 2H12; buying approximately RM7.2bn worth of shares while local institutions and retailers have continued to pare down their equity holdings, balancing the foreign institutional trades. The Construction index fell 4.2% in 2H12 despite a host of work orders related to the Mass Rapid Transit project being awarded, as investors continued to shun construction stocks due to uncertainty caused by the impending General Elections. The local bourse started the year 2013 on a negative footing, with the KLCI recording a 3.6% decline in January 2013. Jitters over the impending general elections caused local institutions and retail investors to reduce equity positions, selling RM1.6bln and RM0.9bln worth of shares respectively in January 2013. Subsequent to that, the local bourse managed to chalk up gains up till June 2013 to close at 1,773.5 points or a gain of 5.0% in the 1H13. Overall, strength in the index for the first half of 2013 was fuelled by foreign institutions who bought a net amount of RM14.7bln worth of shares while local institutions and retailers sold RM8.9bln and RM5.8bln worth of shares respectively. Post elections, the KLCI recorded an intraday high of 1,826.22 points after the victory of the ruling party, Barisan Nasional in the 13

th General Elections. For

1H13, the Property and Construction sectors were the outperformers among indices, rising 42.7% and 20.7% respectively. Oil & gas stocks were among favourites in the gainers due to improved news flow. In contrary, the plantation sector was the underperformer among indices, with the plantation sector just managing to eke out gains of 0.6% for the 1H13. This was in part due to weak crude palm oil prices which hovered around RM 2,300 per tonne. Economy wise, Malaysia’s real GDP grew at a slower pace of 4.1% y-o-y in 1Q13, declining from previous quarter’s 6.5% GDP growth rate. This was attributed to sluggish exports during the quarter, hurt by recession in the Eurozone and modest growth in the United States. Exports declined 0.6% in 1Q13 compared to 2.2% growth in 1Q12. Domestic demand however buffered the declines with a pick-up in consumer spending and public investments. Domestic demand expanded 8.2% y-o-y in 1Q13 compared to 7.8% in 4Q12. Headline inflation rates meanwhile inched up to 1.8% y-o-y in May, highest in more than a year after rising to 1.7% in April. The pick -up came from faster increases in the costs of housing & utilities and education which rose 2.0% and 2.3% y-o-y respectively in May. Although inflation is envisaged to trend up in the 2H13, Bank Negara Malaysia is likely to tolerate a slightly higher inflation rate amid a challenging external economic environment. On the corporate front, among the major IPOs which hogged the limelight during the period under review were IHH Healthcare Berhad (IHH) and Astro Malaysia Holdings Berhad (Astro). IHH which was listed in Bursa on 25 July 2012 at an issue price of RM2.8 per share and a market cap of more than RM22.5bn; rose 10.4% on the first day of listing to close at RM3.09 per share. In contrary, Astro with a market cap of RM1.6bln was unchanged to its listing price at RM3.00 per share. Moving forward, Westports Malaysia Sdn Bhd is among companies slated for listing in 2H13.


MARKET OUTLOOK In Malaysia, the economic growth moving forward will be underpinned by domestic demand, which has remained relatively resilient during the post-crisis period. Apart from the resilient consumer spending, underpinned by high savings, rising consumerism from the young demographics of the population and favorable labor market conditions, a new investment cycle has emerged to reinforce the strength of the domestic demand in the period ahead. The strong investment growth was underpinned mainly by long-gestation infrastructure related projects from the various economic programs, including the 10-year Economic Transformation Program (ETP), Public-Private Partnership (PPP) projects, the Iskandar Malaysia Corridor (IMC), Refinery and Petrochemical Intergraded Development (RAPID) and the Sarawak Corridor of Renewable Energy (SCORE). As the country is into the third year of implementation of the ETP and the implementation will likely peak only in the fifth or the sixth year, given the long-gestation nature of a number of sizeable projects, the investment growth will likely remain relatively robust over the next 2-3 years. This is reinforced by the significant progress in the developments of the IMC and SCORE, both of which have gone beyond the tipping point and are contributing to the new investment cycle. These factors coupled with the concluded general elections which saw the incumbent party retain simple majority would give confidence to local and foreign investors as stability and government policies would remain unchanged. As such we hold a positive view on the Malaysian equity market for the second half of 2013. However, there are potential challenges which could undermine our positive assumptions such as the postponement of implementation of mega projects, spiraling household debts, credit downgrades by international rating agencies and China enduring a slower than expected growth rate. Recently, Petronas postponed its final investment decision on the RM60bln project RAPID to 1Q14 delaying commissioning of the specialty chemicals based facility to end-2016 or early 2017. Nonetheless, the national oil company’s five year RM300bln capital expenditure plan to reverse declining production was intact. In a bid to control household debt, Bank Negara Malaysia implemented a slew of measures to avoid excessive household indebtness and reinforce responsible practices by key credit providers. Maximum tenure for financing granted was reduced to 35 year for the purchase of residential and non-residential property. In other matters, Fitch recently revised Malaysia’s outlook to “negative from “stable” but reaffirmed Malaysia’s long term foreign and local currency issuer default ratings at “A-“ and “A” respectively. The rating agency cited that prospects for budgetary reform and fiscal consolidation to address weaknesses in public finances had worsened since the Government’s weak showing in May’s general elections. We reckon that these concerns would likely be addressed in the 2014 budget as assured by the Malaysian Prime Minister. On the foreign front, the World Bank recently cut its global growth forecast for 2013 to 2.2% from 2.4% in January. It expects global outlook to improve in 2014 to a growth rate of 3.0% and a further 3.3% in 2015. The lower 2013 growth forecast by the World Bank was on account of emerging markets from China to Brazil slowing down more than projected while budget cuts and slumping investor confidence over in Europe deepened its contraction. Developing countries collectively were projected to expand by 5.1% in 2013 from 5.5% previously estimated. China’s growth outlook was also cut to 7.7% in 2013 from 8.4%

projected previously. In the United States, the prospects of an end to the US quantitative easing (QE) may ensue a more volatile market environment in the periods ahead. Nonetheless, QE tapering reflects an improving US macroeconomic outlook which suggests that after a phase of correction and adjustment, the equity market will bounce back and trend higher as uncertainties clear out. Foreign investors were seen moving funds back to the developed markets where yields could be higher than in the past and for investments that carry less risk. We are cautiously optimistic as the underlying fundamentals of the US economy are improving. China, in contrast, is adjusting to a slower economic growth environment, although there is increasing uneasiness about its growth outlook. China’s manufacturing purchasing managers’ index (PMI) fell to 50.1 in June from 50.8 in May, suggesting a slowdown in manufacturing expansion. Similarly, PMI for non-manufacturing fell to 53.9 in June from 54.3 in May. This was the third consecutive month of slower expansion in non-manufacturing. Meanwhile, China’s new home prices continued to increase in 69 out of 70 cities in May. New home values increased 5.7% y-o-y on average compared to 4.5%y-o-y in April despite tightening measures to contain it. This may prompt authorities to introduce further tightening measures on the housing market moving forward should prices continue to edge higher. China’s gross domestic product (GDP) growth slowed to 8.1% in 1Q13 and at 7.6% in 2Q13, while the official growth target was reduced from 8% to 7.5%. However, we believe China’s economic concerns have been a little overplayed as we reckon that the Chinese policymakers still has ample room for further monetary easing by


reducing further its SRR and interest rates and may even increase its budget deficit by borrowing or utilizing its US$3.3 trillion foreign reserves to ensure a soft landing. China’s huge domestic savings and its rising middle income will also continue to drive domestic spending. As such, we expect China to remain as the major growth driver for Asia-Pacific and global economy. INVESTMENT STRATEGY The fund will continue to adopt the strategy of investing in a mixture of defensive core stocks, quality midcap growth stocks and thematic stocks. In view of the current external uncertainty, the fund will be investing in quality growth stock with strong earnings visibility, dividend yielding stocks and in companies that is least affected by the external headwinds on market weakness. We continue to like oil & gas, construction and banking stocks and will be actively participating in IPO placement for a quick trade. We will also be making good use of its small fund size to be agile in responding quickly to changes in market sentiment by increasing and decreasing its equity exposure.

ASSET ALLOCATION OF THE FUND AS AT 30 JUNE 2013

The asset allocation of the Fund is as follows:

Comparative table covering last 3 financial years for industry sector

Sector June 13 %

June 12 %

June 11 %

Cash & Other Liquid Assets 27 11 13

Consumer Products 6 0 4

Properties 1 5 4

Plantations 1 6 3

Infrastructure Project Co. - 0 0

Trading / Services 33 30 21

Construction 4 11 18

Industrial Products 8 2 3

Finance 15 21 29


Technology 0 0 2

Warrant/TSR 0 0 0

Collective Inv Scheme 0 0 0

Ace Market 3 5 0

Unquoted Fixed Income Sec 0 4 3

Loan Stock 2 5 0

Second Board 0 0 0

TOTAL 100 100 100

The asset allocation reflects the opportunity in value buys after the dislocation in the financial markets.


SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS OF THE FUND

For the period under review, there were no significant changes in the state of affairs of the Fund not otherwise disclosed in the financial statements.

DISCLOSURE OF CIRCUMSTANCES THAT MATERIALLY AFFECT ANY INTEREST OF THE UNITHOLDER

For the period under review, there were no circumstances that materially affect any interest of the unitholder.

BREAKDOWN OF UNIT HOLDINGS BY SIZE

Units No. of Unitholder % Unit holdings %

5,000 & below 97 70 153,617 9

5,001 to 10,000 14 10 73,695 5

10,001 to 50,000 24 17 380,598 21

50,001 to 500,000 3 2 208,603 23

500,001 & above 1 1 549,686 42

Total 139 100 1,366,199 100

SOFT COMMISSION RECEIVED FROM BROKERS During the period under review, we neither received soft commission nor rebates from any brokers by virtue of transaction conducted by the Fund.

Page


2. TRUSTEE'S REPORT

To the unit holders of Phillip Master Equity Growth Fund For the financial year ended 30 June 2013 We, CIMB Commerce Trustee Berhad (“the Trustee”), being the Trustee of Phillip Master Equity Growth Fund (“the Fund”) are of the opinion that Phillip Mutual Berhad (“the Manager”), acting in the capacity of the Manager of the Fund, have fulfilled its duties in the following manner during the financial year ended 30 June 2013: (a) The Fund has been managed in accordance with the limitations imposed on the investment

powers of the Manager and the Trustee under the Deed, the Securities Commission Malaysia’s Guidelines on Unit Trust Funds, the Capital Market and Services Act, 2007 and other applicable laws;

(b) Valuation/pricing of units of the Fund has been carried out in accordance with the Deed and

relevant regulatory requirements; and (c) Creation and cancellation of units have been carried out in accordance with the Deed and

relevant regulatory requirements. For and on behalf of CIMB COMMERCE TRUSTEE BERHAD Liew Pik Yoong Head/Director, Group Trustee Services Kuala Lumpur, Malaysia 27 August 2013


3. STATEMENT BY MANAGER For the financial year ended 30 June 2013

We, Datin Hajjah Nona binti Salleh and Tan Sri Dato' Ir. Talha bin Haji Mohamad Hashim, being two of the directors of Phillip Mutual Berhad, do hereby state that, in the opinion of the Manager, the accompanying financial statements set out on pages 13 to 31 are drawn up in accordance with Malaysian Financial Reporting so as to give a true and fair view of the financial position of Phillip Master Equity Growth Fund as at 30 June 2013 and of its financial performance, changes in equity and cash flows for the financial year then ended. For and on behalf of the Manager Phillip Mutual Berhad

DATIN HAJJAH NONA BINTI SALLEH TAN SRI DATO’ IR. TALHA BIN HAJI MOHAMAD HASHIM

Kuala Lumpur, Malaysia 27 August 2013


4. AUDITORS' REPORT For the financial year ended 30 June 2013 Independent auditors' report to the Unit Holders of Phillip Master Equity Growth Fund (“the Fund”) Report on the financial statements We have audited the financial statements of Phillip Master Equity Growth Fund ("the Fund"), which comprise the statement of financial position as at 30 June 2013, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 13 to 31. Manager’s and Trustee’s responsibility for the financial statements The Manager of the Fund is responsible for the preparation of financial statements that give a true and fair view in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards, and for such internal control as the Manager determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Trustee is responsible for ensuring that the Manager maintains proper accounting and other records as are necessary to enable true and fair presentation of these financial statements. Auditors’ responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Fund’s preparation of financial statements that give a true and fair view 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. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Manager, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements have been properly drawn up in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards so as to give a true and fair view of the financial position of the Fund as at 30 June 2013 and of its financial performance, the changes in equity and the cash flows of the Fund for the year then ended.


Independent auditors' report to the unit holders of Phillip Master Equity Growth Fund (“the Fund”) (Cont’d.) Other matters As stated in Note 2.1 to the financial statements, the Fund adopted Malaysian Financial Reporting Standards on 1 July 2012 with a transition date of 1 July 2011. These standards were applied retrospectively by the Fund to the comparative information in these financial statements including the statements of financial position as at 30 June 2012 and 1 July 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended 30 June 2012 and related disclosures. We were not engaged to report; and consequently we have not issued any audit opinion on the comparative information. Our responsibilities as part of our audit of the financial statements of the Fund for year ended 30 June 2013 have in these circumstances, included obtaining sufficient appropriate audit evidence that the opening balances as at 1 July 2012 do not contain misstatements that materially affect the financial position as of 30 June 2013 and the financial performance and cash flows for the year then ended.

This report is made solely to the unitholders of the Fund, as a body, and for no other purpose. We do not assume responsibility to any other person for the content of this report.

Ernst & Young

Gloria Goh Ewe Gim

AF: 0039

No. 1685/04/15(J)

Chartered Accountants

Chartered Accountant

Kuala Lumpur, Malaysia 27 August 2013


5. STATEMENT OF FINANCIAL POSITION

As at 30 June 2013

Notes 30 June 30 June

2013 2012

RM RM

Assets

Investments 3 2,062,402 1,334,386

Amount due from stockbroking companies 14,816 -

Amount due from Manager - -

Tax recoverable 3,731 3,641

Other receivables 10,085 5,848

Cash at bank 473,403 197,337

Others 244,600 - Total assets 2,809,037 1,541,212

Liabilities

Amount due to stockbroking companies - 23,140

Amount due to Manager 8,986 7,133

Amount due to Trustee 4,550 4,550

Other payables 24,181 15,773

Total liabilities 37,717 50,596

Unit Holders' equity

Unit Holders' capital 2,307,678 1,526,341

Accumulated profit/losses 463,642 (35,725)

Total equity/Net asset value ("NAV")

attributable to Unit Holders 4 2,771,320 1,490,616

Total equity and liabilities 2,809,037 1,541,212

Number of units in circulation 4 2,013,417 1,366,199

NAV per unit 1.3764 1.0911


6. STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30 June 2013

2013 2012

Note RM RM

Income

Dividends 58,814 46,818

Net realised gain on sale of investments 167,280 290,972

Net unrealised gain on changes in fair value

of financial assets at fair value through

profit or loss ("FVTPL") 367,391 (87,845)

Interest income 1,211 -

Other Income 99 -

594,795 249,945

Expenses

Manager's fee 5 33,863 25,821

Trustee's fee 6 18,250 18,300

Auditors' remuneration 6,500 6,500

Tax agent's fee 2,700 2,700

Administration fees and expenses 29,168 19,947

90,481 73,268

Net income before tax 504,314 176,677

Income tax expense 7 (4,947) (16,020)

Net income after tax, representing total

comprehensive income for the year 499,367 160,657

Net income after tax is made up of the following:

Net realised income 131,976 248,502

Net unrealised gain/(loss) 367,391 (87,845)

499,367 160,657


7. STATEMENT OF CHANGES IN NET ASSET VALUE

Unit Holders' Accumulated Total

capital losses equity

RM RM RM

As at 1 July 2011 2,038,073 (196,382) 1,841,691

Total comprehensive income for the year - 160,657 160,657

Creation of units 291,440 - 291,440

Cancellation of units (803,172) - (803,172) As At 30 June 2012 1,526,341 (35,725) 1,490,616

As at 1 July 2012 1,526,341 (35,725) 1,490,616

Total comprehensive income for the year - 499,367 499,367

Creation of units 1,769,605 - 1,769,605

Cancellation of units (988,268) - (988,268)

As At 30 June 2013 2,307,678 463,642 2,771,320


8. STATEMENT OF CASH FLOWS

For the year ended 30 June 2013

2013 2012

RM RM

Cash flows from operating activities

Proceeds from sale of investments 2,076,010 1,884,494

Purchase of investments (2,550,261) (1,382,519)

Dividends received 53,026 41,532

Interest Income 1,211 -

Manager's fee paid (30,431) (26,269)

Trustee's fee paid (18,250) (18,550)

Payment of other fees and expenses (29,959) (26,474)

Tax recovered/(paid), net (5,037) 14,829

Net cash generated from/(used in) operating activities (503,691) 487,043

Cash flows from financing activities

Proceeds from creations of units 1,769,605 303,859

Payments for cancellations of units (989,848) (806,658)

Net cash(used in)/generated from financing activities 779,757 (502,799)

Net (decrease)/increase in cash and cash equivalents 276,066 (15,756)

Cash and cash equivalents at beginning of the year 197,337 213,093

Cash and cash equivalents at end of the year 473,403 197,337

Cash and cash equivalents comprise:

Cash at bank 473,403 197,337


9. NOTES TO THE FINANCIAL STATEMENTS As At 30 June 2013

(1) The Fund, The Manager And Their Principal Activities

Phillip Master Equity Growth Fund (hereinafter referred to as "the Fund") was constituted pursuant to the execution of a Master Trust Deed dated 18 March 2003 between Phillip Mutual Berhad as the Manager and CIMB Commerce Trustee Berhad as the Trustee. The Fund was launched on 18 June 2003. The principal activity of the Fund is to invest in a portfolio of investments that provide investors with high capital growth over the medium to long term through investment in high growth and situational securities. The Manager, Phillip Mutual Berhad, is a public limited liability company incorporated in Malaysia. The Manager is principally engaged in the management of unit trust funds. The financial statements were authorised for issue by the Board of Directors of the Manager in accordance with a resolution of the Directors on 27 August 2013.

(2) Summary of significant accounting policies

2.1 Basis of preparation

The financial statements of the Fund have been prepared in accordance with Malaysian Financial Reporting Standards ("MFRS") as issued by the Malaysian Accounting Standards Board (“MASB”) and also prepared in compliance with International Financial Reporting Standards.

The financial statements of the Fund have been prepared under the historical cost convention, unless otherwise stated in the accounting policies.

2.2 Changes in accounting policies Transition to MFRS and application of MFRS 1

These are the Fund’s first annual financial statements prepared in accordance with MFRS. For the periods up to and including the year ended 30 June 2012, the financial statements of the Fund were prepared in accordance with Financial Reporting Standards (“FRS”) in Malaysia. The accounting policies set out in Note 2.3 to Note 2.9 have been applied in preparing the financial statements of the Fund for the financial year ended 30 June 2013 and the comparative information presented in these financial statements for the financial year ended 30 June 2012 and in the preparation of the opening statement of financial position at 1 July 2011 (which is also the Fund’s date of transition). There are no adjustments arising from the transition to MFRS. Accordingly, notes related to the Statement of Financial Position as at date of transition to MFRS are not presented. Standards issued but not yet effective As at the date of authorisation of these financial statements, the following Standards, Amendments and Interpretations of the Issues Committee (“IC Interpretations”) have been issued by MASB but are not yet effective and have not been adopted by the Fund.


(2) Summary of significant accounting policies (cont’d)

2.2 Changes in accounting policies (cont’d)

Standard Title

Effective for financial periods

beginning on or after

MFRS 12 Disclosure of Interests in Other Entities

1 January 2013

MFRS 13 Fair Value Measurement 1 January 2013

Amendments to MFRS 7 Financial Instruments: Disclosures – Offsetting Financial Assets and Financial Liabilities

1 January 2013

Amendments to MFRS 1 First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements 2009-2011 Cycle)

1 January 2013

Amendments to MFRS 101 Presentation of Financial Statements (Annual Improvements 2009-2011 Cycle)

1 January 2013

Amendments to MFRS 132 Financial Instruments: Presentation (Annual Improvements 2009-2011 Cycle)

1 January 2013

Amendments to MFRS 12 Disclosure of Interests in Other Entities: Transition Guidance

1 January 2013

Amendments to MFRS 132 Financial Instruments: Presentation - Offsetting Financial Assets and Financial Liabilities

1 January 2014

Amendments to MFRS 9 Financial Instruments 1 January 2015 Amendments to MFRS 7 Financial Instruments: Disclosures -

Mandatory Date of MFRS 9 and Transition Disclosures

1 January 2015

The Fund plans to adopt the above pronouncements when they become effective in the respective financial periods. These pronouncements are expected to have no significant impact to the financial statements of the Fund upon their initial application except as described below:

MFRS 9 Financial Instruments MFRS 9, as issued, reflects the first phase of the International Accounting Standards Board’s (“IASB”) work on the replacement of MFRS 139 Financial Instruments: Recognition and Measurement (“MFRS 139”) and applies to classification and measurement of financial assets and financial liabilities as defined in MFRS 139 and replaces the guidance in MFRS 139.



2.2 Changes in accounting policies (cont’d)

MFRS 9 Financial Instruments (cont’d) MFRS 9, as issued, reflects the first phase of the International Accounting Standards Board’s (“IASB”) work on the replacement of MFRS 139 Financial Instruments: Recognition and Measurement (“MFRS 139”) and applies to classification and measurement of financial assets and financial liabilities as defined in MFRS 139 and replaces the guidance in MFRS 139. In subsequent phases, the IASB will address hedge accounting and impairment of financial assets. The adoption of the first phase of MFRS 9 may have an effect on the classification and measurement of the Fund’s financial assets but will not have an impact on the classification and measurement of financial liabilities. The Fund will quantify the effect in conjunction with the other phases when the final standard including all phases is issued. MFRS 13 Fair Value Measurement MFRS 13 establishes a single source of guidance under MFRS for all fair value measurements. MFRS 13 does not change when an entity is required to use fair value but rather provides guidance on how to measure fair value under MFRS when fair value is required or permitted. The Fund is currently assessing the impact that this Standard will have on the financial position and performance of the Fund but based on preliminary analyses, no material impact is expected.

2.3 Accounting estimates and judgments

The preparation of the Fund’s financial statements requires the Manager to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date. However, uncertainty about these assumptions and estimates could result in outcome that could require a material adjustment to the carrying amount of an asset or a liability in the future. There are no major judgments nor key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that may cast significant doubt upon the Fund’s ability to continue as a going concern. Therefore, the financial statements continue to be prepared on a going concern basis.

2.4 Financial assets and liabilities

Financial assets and financial liabilities are recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the instrument. i) Financial Assets

The Fund determines the classification of its financial assets at initial recognition, and the categories include financial assets at fair value through profit or loss (“FVTPL”) and loans and receivables. When financial assets are recognised initially on trade date, they are measured at fair value, plus, in the case of financial assets not at FVTPL, directly attributable transaction costs. Financial assets are derecognised on trade date when the rights to receive cash flows from the investments have expired or the Fund has transferred substantially all risks and rewards of ownership.



2.4 Financial assets and liabilities (cont’d)

i) Financial assets (cont’d)

Financial assets at FVTPL

Financial assets are classified as financial assets at FVTPL if they are held for trading or are designated as such upon initial recognition. Financial assets held for trading are those acquired principally for the purpose of selling in the near term. Subsequent to initial recognition, financial assets at FVTPL are measured at fair value. Changes in the fair value of those financial instruments are recorded in "Net unrealised gain or loss on changes in fair value of financial assets at FVTPL". Interest earned and dividend revenue elements of such instruments are recorded separately in “Interest income” and “Dividend income” respectively.

Loans and receivables The Fund does not have any loans throughout the financial year. Financial assets with fixed or determinable payments that are not quoted in an active market are classified as receivables. Such receivables include amount due from brokers/financial institutions, amount due from the Manager and other receivables. Subsequent to initial recognition, these are measured at amortised cost. For financial assets carried at amortised cost, the Fund assesses at each reporting date whether there is any objective evidence that a financial asset is impaired. If any such evidence exists, the amount of impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The carrying amount of the financial asset is reduced and the amount of the loss is recognised in profit or loss with the exception of receivables. If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date. The amount of reversal is recognised in profit or loss.

ii) Financial liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability. Financial liabilities are recognised initially at fair value and subsequently stated at amortised cost. The Fund includes in this category amount due to brokers/financial institutions, amounts due to the Manager and the Trustee and other payables. A financial liability is derecognised when it is settled.

2.5 Unit Holders' capital

The Unit Holders’ contributions to the Fund are classified as equity instruments. 2.6 Cash and cash equivalents

Cash and cash equivalents comprise cash at banks and deposits with financial institutions which have an insignificant risk of changes in value.



2.7 Income

Income is recognised to the extent that it is probable that the economic benefits will flow to the Fund and the income can be reliably measured. Income is measured at the fair value of consideration received or receivable. Dividend income is recognised when the Fund’s right to receive payment is established. Interest income, accretion of discount and amortisation of premium are recognised using the effective interest method.

2.8 Taxation

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rate and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.

2.9 Distributions

Distributions are at the discretion of the Fund. A distribution to the Fund’s Unit Holders is accounted for as a deduction from realised reserves. A proposed distribution is recognised as a liability in the period in which it is approved.


(3) Investments

Investments consist of quoted equities and unquoted bonds.

2013

2012

RM

RM

At fair value:

Quoted investments 1,994,101 1,279,330

Unquoted investment 68,301 55,056

2,062,402

1,334,386

Quoted investments as at 30 June 2013 are as detailed below:

Fair Per cent of

Quantity Cost value NAV

RM RM %

EQUITIES

Trading/services

Airasia Bhd 8,500 26,775 26,775 0.97

Axiata Group Bhd 14,000 87,329 92,680 3.34

Dayang Enterprise Holdings Bhd 39,300 92,094 192,177 6.93

Genting Bhd 7,000 70,840 73,080 2.64

Maxis Berhad 16,000 103,799 108,960 3.93

Multi-Purpose Holdings Bhd 20,000 60,743 72,200 2.61

Prestariang Bhd 59,000 57,254 109,740 3.96

SapuraKencana Petroleum Bhd 6,000 16,920 24,300 0.88

Tenaga Nasional Bhd 6,000 40,114 49,440 1.78

Yinson Holdings Bhd 35,600 65,841 167,676 6.05

621,709 917,028 33.09

Industrial products

Can-One Bhd 54,000 145,455 178,902 6.46

DRB-Hicom Bhd 20,000 54,900 53,800 1.94

200,355 232,702 8.40

Construction

Crest Builder Holdings Bhd 40,000 51,200 48,040 1.73

Mudajaya Group Bhd 26,700 70,026 68,405 2.47

121,226 116,445 4.20

Included in property, plant and equipment are cost of fully depreciated assets which are still in The associated company is Labuan Reinsurance (L) Ltd., a company incorporated in the Had the equity method of accounting been applied, the carrying amount of investment in the This is in respect of retranslation of the opening balances of the associated company at Had the equity method of accounting been applied, the income statement of the Company The title deed for a freehold building has not been received from the authorities as at the date of Included in sundry receivables, deposits and prepayments is an amount of RM12,568,500 The balance on the deferred taxation account represents the tax effect on the timing differences

Suspended counter. Market value is based on last done market price, as approved by the The indicative market values were obtained from licensed banks.


(3) Investments (cont’d.)

Quoted investments as at 30 June 2013 are as detailed below:

Cost value NAV

Quantity RM RM %

EQUITIES (cont'd.)

Finance

Malayan Banking Bhd 15,468 144,655 160,248 5.78

Malaysia Building Society Bhd 32,000 56,667 98,240 3.54

MPHB Capital Bhd 10,400 10,400 14,248 0.51

Public Bank Bhd 113 - 1,914 0.07

Public Bank Bhd-Foreign 5,700 71,942 96,787 3.51

RHB Capital Bhd 4,452 33,974 37,579 1.36

317,638 409,016 14.77

Properties

Matrix Concepts Holdings Bhd 15,000 39,150 37,950 1.37

39,150 37,950 1.37

Plantation

TSH Resources Bhd 13,500 27,714 32,265 1.16

27,714 32,265 1.16

Consumer Products

QL Resources Bhd 50,000 157,181 155,500 5.60

157,181 155,500 5.60

Ace Market

OCK Group Berhad 171,000 72,200 93,195 3.36

72,200 93,195 3.36

Total quoted securities in Malaysia 1,557,173 1,994,101 71.96

Unquoted investment as at 30 June 2013 are as detailed below:

Rating Carrying Fair Per cent of

value value NAV

RM RM %

BOND

TALAM Corporation Bhd - BAIDS

0% / 28.06.2019 B+ 18,492 68,301 2.46


(4) Total equity/NAV attributable to Unit Holders

The maximum number of units that can be issued circulation is 200,000,000 (2012: 200,000,000). As at 30 June 2013, the number of units that are not in issue is 197,986,583 (2012: 198,633,801).

(5) Manager's Fee

The Manager's fee is computed on a daily basis at 1.5% (2012: 1.5%) per annum of the NAV of the Fund before deducting the Manager's and Trustee's fee for that particular day.

(6) Trustee's Fee

The Trustee's fee is computed based on a daily basis at 0.07% (2012: 0.07%) per annum of the gross NAV of the Fund before deducting the Manager’s and Trustee's fee for that particular day, subject to a minimum of RM18,000 (2012: RM18,000) per annum.

Note 2013 2012

RM RM

Unit Holders' capital (a) 2,307,678 1,526,341

Accumulated losses

-Realised (23,097) (155,073)

-Unrealised 486,739 119,348

463,642 (35,725)

Total equity/NAV attributable to Unit Holders 2,771,320 1,490,616

date.

(a) Unit Holders' capital

2013

No. of units RM No. of units RM

As at 1 July 1,366,199 1,526,341 1,847,619 2,038,073

Add: Creation of units 1,523,792 1,769,605 289,966 291,440

Less: Cancellation of units (876,574) (988,268) (771,386) (803,172)

As at 30 June 2,013,417 2,307,678 1,366,199 1,526,341

The unrealised balance represents the net gain/(loss) arising from stating investments at their fair values at

2012


(7) Income Tax Expense

2013 2012

RM RM

Malaysian income tax:

Tax expense for the year 3,966 3,438

Prior year underprovision 981 12,582 4,947 16,020

Malaysian income tax is calculated at the Malaysian tax rate of 25% of the estimated assessable income for the financial year. Income tax for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. In accordance with Schedule 6 of the Income Tax Act 1967, interest income earned by the Fund is exempted from tax.

A reconciliation of income tax expense applicable to net income before tax at the statutory income tax rate to income tax expense at the effective income tax rate of the Fund is as follows:

2013 2012

RM RM

Net income before tax 504,314 176,677

Tax at Malaysian tax rate of 25% (2012: 25%) 126,079 44,169

Effect of income not subject to tax (143,359) (68,860)

Effect of expenses not deductible for tax purposes

(under Section 63B of the Income Tax Act, 1967) 21,246 28,129

Underprovision of income tax expense in prior years 981 12,582 Tax expense for the year 4,947 16,020

(8) Transactions With Stockbroking Companies And Other Financial Institutions

Per cent of

Per cent Brokerage total fees

Value of of total fees and and

trade trade commission commission

RM % RM %

CIMB Investment Bank

Berhad 1,597,744 35.42 6,925 34.36

Maybank Investment

Bank Berhad 1,738,343 38.53 8,190 40.63

AmInvestment Bank Berhad 1,172,311 25.99 5,041 25.01

RHB Investment Bank Berhad 3,006 0.06 - - 4,511,404 100.00 20,156 100.00


(9) Units Held By Related Parties

As at the end of the financial year, the total number of units held legally by related parties are as follow:

2013 2012 2013 2012

RM RM

Phillip Capital ManagementSdn. Bhd. - 549,686 - 599,762

Market valueNo. of units

(10) Portfolio Turnover Ratio

Portfolio turnover ratio is the ratio of the average acquisitions and disposals of investments of the Fund during the year to the average NAV of the Fund. The portfolio turnover ratio for the current financial year is

1.00 times (2012: 0.87 times).

(11) Management Expense Ratio Management expense ratio is the ratio of the total fees and recovered expenses of the Fund expressed as a

percentage of the Fund's average NAV. The management expense ratio for the current financial year is

4.01% (2012: 4.95%).

(12) Segmental Reporting

The primary segment reporting format is determined to be business segments as the Fund's risks and rates of return are affected predominantly by the different types of investments made.

(a) Business Segment

In accordance with the objective of the Fund, the Fund can invest up to 95% in a diversified portfolio of equities and equity-related securities, with a minimum of 5% investment in liquid assets. The following table provides an analysis of the revenue, results, assets and other information by business segments:

Quoted Unquoted

securities securities Total

2013 RM RM RM

Assets

Segment assets

- Investments 1,994,101 68,301 2,062,402 - Other assets 24,901 - 24,901

Other unallocated assets 721,734 2,809,037

Liabilities

Unallocated liabilities 37,717


(12) Segmental Reporting (cont’d.)

(a) Business Segment (cont’d.)

Quoted Unquoted

securities securities Total

RM RM RM

Revenue

Segment income

representing segment results 591,037 3,758 594,795

Unallocated expenditure (90,480)

Income before tax 504,315

Income tax expense -Net income after tax 504,315

2012

Assets

Segment assets

- Investments 1,279,330 55,056 1,334,386 - Other assets 5,848 - 5,848

Other unallocated assets 200,978 1,541,212

Liabilities

Segment liabilities

- Amount due to stockbroking

companies 23,140 - 23,140

Unallocated liabilities 27,456 50,596

Revenue

Segment income

representing segment results 226,118 23,827 249,945

Unallocated expenditure (73,268)

Income before tax 176,677

Income tax expense (16,020) Net income after tax 160,657


(13) Financial Risk Management

The Fund is exposed to a variety of financial risks including market risk (which includes interest rate risk and price risk), credit risk and liquidity risk. Whilst these are the most important types of financial risks inherent in each type of financial instrument, the Manager and the Trustee would like to highlight that this list does not purport to constitute an exhaustive list of all the risks inherent in an investment in the Fund. The Fund’s overall risk management programme seeks to minimise potential adverse effects on the Fund’s financial performance.

a) Market Risk

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as interest rates, foreign exchange rates and equity prices. The maximum risk resulting from financial instruments equals their fair value. Market risk is managed through portfolio diversification across a number of sectors and industries. Interest rate risk Cash, fixed income securities are particularly sensitive to movements in interest rates. When interest rates rise, the returns on cash will rise while the value of fixed income securities will fall and vice versa, thus affecting the NAV of the Fund. When the interest rate trend is anticipated to rise, the exposure to fixed income securities will be reduced to an acceptable level. The Fund does not have any significant interest rate risk exposure as at the reporting date. Price risk Price risk is the risk of unfavourable changes in the fair values of investments as the result of changes in the levels of equity indices and the value of individual shares. The price risk exposure arises from the Fund's investments in quoted equity instruments. The increase/(decrease) in the NAV attributable to Unit Holders as at reporting date, assuming prices change by +/(-) 5% with all other variables held constant, is +/(-) RM109,370 (2012: RM66,719). This analysis is for illustration purpose only and not an indication of future variances.

b) Credit Risk Credit risk refers to the ability of an issuer or a counterparty to make timely payments of interest, principals and proceeds from realisation of investments. The Manager manages the credit risk by setting counterparty limits and undertaking credit evaluation to minimise such risk. None of the financial assets of the Fund were past due or impaired as at 30 June 2013.

c) Liquidity Risk

Liquidity risk is defined as the risk that the Fund will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash. Exposure to liquidity risk arises because of the possibility that the Fund could be required to pay its liabilities or redeem its units earlier than expected. The Fund is exposed to cash redemptions of its units on a regular basis. Units sold to Unit Holders by the Manager are redeemable at the Unit Holder’s option based on the Fund’s NAV per unit at the time of redemption calculated in accordance with the Fund’s Deed. The Manager monitors the Fund’s liquidity position on a daily basis. The Manager’s policy is to always maintain a prudent and sufficient level of liquid assets so as to meet normal operating requirements and expected redemption requests by Unit Holders. Liquid assets comprise cash and other instruments which are capable of being converted into cash within 7 days.


(13) Financial Risk Management (cont’d)

c) Liquidity Risk (cont’d.) Analysis of financial assets at FVTPL into maturity groupings is based on the expected date on which these assets will be realised. The Fund’s investments are highly liquid investments which can be realised should all of the Fund’s Unit Holders’ equity be required to be redeemed. For other assets, the analysis into maturity groupings is based on the remaining period from the end of the reporting period to the contractual maturity date or if earlier, the expected date on which the assets will be realised. As at the reporting date, all the financial assets of the Fund other than the unquoted investment, are expected to be realisable on demand within one year from the reporting date. As at the reporting date, all the financial liabilities of the Fund are due on demand or within one year from the reporting date.

(14) Fair value of financial instrument

The Fund’s financial assets and liabilities are measured on an ongoing basis at either fair value or at amortised cost based on their respective classification. The significant accounting policies in Note 2 describe how the classes of financial instruments are measured, and how income and expenses, including fair value gains and losses, are recognised. The following table analyses the financial assets and liabilities of the Fund in the statement of financial position as at the reporting date by the class of financial instrument to which they are assigned, and therefore by the measurement basis:

Financial

Financial liabilities at

assets at Loans and amortised

FVTPL receivables cost Total

RM RM RM RM

2013

Assets

Quoted investments 1,994,101 - - 1,994,101

Unquoted investment 68,301 - - 68,301

Other receivables - 273,232 - 273,232

Cash at bank - 473,403 - 473,403 2,062,402 746,635 - 2,809,037

Liabilities

Amount due to Manager - - 8,986 8,986

Amount due to stockbroking

companies - - - -

Amount due to Trustee - - 4,550 4,550

Other payables - - 24,181 24,181

- - 37,717 37,717

The deferred taxation provided is in respect of timing differences for the excess of capital The directors are of the opinion that all the transactions above have been entered into in the The directors are of the opinion that all the transactions above have been entered into in the As at 30 June 2002, the Company has tax exempt profits available for distribution of approximately The deferred taxation provided is in respect of timing differences for the excess of capital The directors are of the opinion that all the transactions above have been entered into in the The directors are of the opinion that all the transactions above have been entered into in the At the forthcoming Annual General Meeting, a final dividend in respect of the year ended 30 June The deferred taxation provided is in respect of timing differences for the excess of capital The directors are of the opinion that all the transactions above have been entered into in the The directors are of the opinion that all the transactions above have been entered into in the The directors are of the opinion that all the transactions above have been entered into in the Included in the balance sheet of the Company are amounts due from/(to) related companies *Proceeds from sale of dealing and investment securities of the Company are as follows:The deferred taxation provided is in respect of timing differences for the excess of capital The directors are of the opinion that all the transactions above have been entered into in the The directors are of the opinion that all the transactions above have been entered into in the As at 30 June 2003, the Company has tax exempt profits available for distribution of approximately The following balance sheet comparative figures have been reclassified to conform with current The deferred taxation provided is in respect of timing differences for the excess of capital The directors are of the opinion that all the transactions above have been entered into in the The directors are of the opinion that all the transactions above have been entered into in the The effective rate of taxation of the Company is higher than the statutory rate of taxation There are no comparative figures as this is the Fund’s first set of financial statements since 17 The following methods and assumptions are used to estimate the fair values of the following The comparative figures are for the financial period from 1 November 2002 to 31 October 2003.


(14) Fair value of financial instrument (cont’d.)

Financial

Financial liabilities at

assets at Loans and amortised

FVTPL receivables cost Total

RM RM RM RM

2012

Assets

Quoted investments 1,279,330 - - 1,279,330

Unquoted investment 55,056 - - 55,056

Other receivables - 9,489 - 9,489

Cash at bank - 197,337 - 197,337 1,334,386 206,826 - 1,541,212

Liabilities

Amount due to Manager - - 7,133 7,133

Amount due to stockbroking

companies - - 23,140 23,140

Amount due to Trustee - - 4,550 4,550

Other payables - - 15,773 15,773 - - 50,596 50,596

The deferred taxation provided is in respect of timing differences for the excess of capital The directors are of the opinion that all the transactions above have been entered into in the The directors are of the opinion that all the transactions above have been entered into in the As at 30 June 2002, the Company has tax exempt profits available for distribution of The deferred taxation provided is in respect of timing differences for the excess of capital The directors are of the opinion that all the transactions above have been entered into in the The directors are of the opinion that all the transactions above have been entered into in the At the forthcoming Annual General Meeting, a final dividend in respect of the year ended 30 June The deferred taxation provided is in respect of timing differences for the excess of capital The directors are of the opinion that all the transactions above have been entered into in the The directors are of the opinion that all the transactions above have been entered into in the The directors are of the opinion that all the transactions above have been entered into in the Included in the balance sheet of the Company are amounts due from/(to) related companies *Proceeds from sale of dealing and investment securities of the Company are as follows:The deferred taxation provided is in respect of timing differences for the excess of capital The directors are of the opinion that all the transactions above have been entered into in the The directors are of the opinion that all the transactions above have been entered into in the As at 30 June 2003, the Company has tax exempt profits available for distribution of The following balance sheet comparative figures have been reclassified to conform with current The deferred taxation provided is in respect of timing differences for the excess of capital The directors are of the opinion that all the transactions above have been entered into in the The directors are of the opinion that all the transactions above have been entered into in the The effective rate of taxation of the Company is higher than the statutory rate of taxation There are no comparative figures as this is the Fund’s first set of financial statements since The following methods and assumptions are used to estimate the fair values of the following The comparative figures are for the financial period from 1 November 2002 to 31 October 2003.

(a) Financial assets at FVTPL

Financial assets at FVTPL are valued at the published market bid price at the reporting date.

(b) Financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximations of fair value Other than the financial assets at FVTPL, the other financial instruments of the Fund are not carried at fair value but their carrying amounts are reasonable approximations of fair value due to their short term maturity.

(c) Fair value hierarchy

The Fund uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: Quoted process (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).


(14) Fair value of financial instrument (cont’d.)

(c) Fair value hierarchy (cont’d.)

2013 Level 1 Level 2 Level 3

RM RM RM RM

Financial assets at FVTPL:

Investments 2,187,402 2,119,101 68,301 - (15) Capital Management

The capital of the Fund can vary depending on the demand for redemptions and subscriptions to the Fund. The Fund’s approved fund size and units in issue at the end of the year is disclosed in Note 4. The Fund’s objectives for managing capital are: (a) To invest in investments meeting the description, risk exposure and expected return indicated in

its prospectus; (b) To achieve consistent returns while safeguarding capital by using various investment strategies; (c) To maintain sufficient liquidity to meet the expenses of the Fund, and to meet redemption requests

as they arise; and

(d) To maintain sufficient fund size to make the operation of the Fund cost-efficient.

No changes were made to the capital management objectives, policies or processes during the current and previous financial year.


10. FUND PERFORMANCE For the financial year ended 30.06.13

30.06.2013 30.06.2012 30.06.2011

Net Asset Value (RM) 2,776,267 1,490,616 1,841,691

Units in Circulation (units) 2,013,417 1,366,199 1,847,619

Net Asset Value / unit (RM) 1.3789 1.0911 0.9968

Highest NAV (RM) 1.4066 1.0955 0.9968

Lowest NAV (RM) 1.0858 0.8139 0.8345

Total Return

- capital growth (Note 1) 26.57% 9.25% 18.79%

- income distribution - - -

Interim Distribution

- Gross Distribution/unit - - -

- Net Distribution/unit - - -

- Date of Distribution - - -

Final Distribution

- Gross Distribution/unit - - -

- Net Distribution/unit - - -

- Date of Distribution - - -

Portfolio Composition

- Quoted Equity Securities 76.33% 85.83% 84.24%

- Unquoted Fixed Income Securities 2.46% 3.69% 3.18%

- Other Liquid Assets 21.21% 10.48% 12.58%

Management Expense Ratio 4.01% 4.95% 4.90%

Portfolio Turnover 1 times 0.87 times 1.19 times

Official Launching Date 18.6.2003 18.6.2003 18.6.2003

Note 1 : The capital growth is extracted from Bloomberg, and did not take into account of the gains arising from the write-back of a previously impaired bond.


AVERAGE TOTAL RETURNS (in %) Average Total Return is based on NAV to NAV with distribution reinvested. Below are annualised average total returns of the Fund as at 30 June 13 for 1 year, 3 year, 5 year and since inception.

1 Year (30/06/12-30/06/13)

3 Year (30/06/10-30/06/13)

5 Year (30/06/08-30/06/13)

Since Inception (18/6/03-30/06/13)

26.57 17.99 18.55 11.93

Source: Financial Statement Audited by Ernst & Young Basis of calculation for Annualised Average Total Return Annualised Average Total Return = Total Return for the period / Number of period ANNUAL TOTAL RETURNS (in %) Annual Total Return is based on NAV to NAV with distribution reinvested. Below is the Annual Total Return of the Fund for each of the financial year since inception.

18/06/03-30/06/04

(since inception)

30/06/04-30/06/05

30/06/05-30/06/06

30/06/06-30/06/07

30/06/07-30/06/08

13.98% 0.14% -4.47% 37.38% -11.77%

30/06/08-30/06/09

30/06/09-30/06/10

30/06/10-30/06/11

30/06/11-30/06/12

30/06/12-30/06/13

11.72% 27.60% 18.79% 9.25% 26.57%

Source: Financial Statement Audited by Ernst & Young Basis of calculation for Annual Total Return Annual Total Return = NAVt – NAVt-1 + Dividend x 100 ----------------------------------- NAVt-1

Past performance is not necessarily indicative of future performance.

Unit prices and investment returns may go down, as well as up.


11. CORPORATE INFORMATION

The Manager Phillip Mutual Berhad (570409-K)

Registered Office No 3-1 Jalan Indrahana 2 Off Jalan Kuchai Lama 58200 Kuala Lumpur

Business Office B-2-7 Block B Level 2 Unit 7 Megan Avenue II 12 Jalan Yap Kwan Seng 50450 Kuala Lumpur The Trustee CIMB Commerce Trustee Berhad (313031-A) Board of Directors Tan Sri Dato' Ir. Talha Bin Haji Mohamad Hashim Prof. Tan Sri Dato' (Dr) Ir. Jamilus Bin Md Hussein Datin Hajjah Nona Binti Salleh Mr. Andy Lim Say Kiat Mr. Sim Khee Lau Mr. Lee Chay Khiong Investment Committee Tan Sri Dato' Ir. Talha Bin Haji Mohamad Hashim Prof. Tan Sri Dato' (Dr) Ir. Jamilus Bin Md Hussein En. Mohd Fadzli Bin Mohd Anas Mr. Sim Khee Lau Investment Advisor Phillip Capital Management (Singapore) Ltd (199905233W) External Investment Manager Phillip Capital Management Sdn Bhd (333567-D) Company Secretaries Mr. Tan Boon Seng (MAICSA 0749659) Auditors & Reporting Accountants Ernst & Young (0039) Tax Advisor Ernst & Young Tax Consultants Sdn Bhd (179793-K) Solicitors Chor Pee Anwarul & Company Banker Malayan Banking Berhad (3813-K)

ANNUAL REPORT 30 June 2013 - eUnitTrust.com.my · Bursa on 25 July 2012 at an issue price of RM2.8...

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Transcript of ANNUAL REPORT 30 June 2013 - eUnitTrust.com.my · Bursa on 25 July 2012 at an issue price of RM2.8...