ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 31 …...manager: bimb investment management berhad...

MANAGER:BIMB INVESTMENT MANAGEMENT BERHAD (276246-X)

BIMB i FLEXI FUND

ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017

LAPORAN TAHUNAN BAGI TAHUNKEWANGAN BERAKHIR 31 MAC 2017

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TABLE OF CONTENT

No. Particulars Page

1.0 Manager’s Report 3

1.1 Fund Name/ Fund Type/ Fund Category/ Fund Investment Objective/

Fund Performance Benchmark/ Fund Distribution Policy 3

1.2 Performance for the Financial Year Ended 31 March 2017 4

1.3 Economic and Market Review 7

1.4 Market Outlook and Strategy 12

1.5 Asset Allocation as at 31 March 2017 13

1.6 Other Performance Data for the Financial Year Ended 31 March 2017 14

1.7 Unit Holdings as at 31 March 2017 15

1.8 Policy on Rebate and Soft Commission 15

2.0 Trustee’s Report 31

3.0 Shariah Committee’s Report 32

4.0 Directors’ Declaration Report 33

5.0 Independent Auditors’ Report 34

6.0 Financial Statements (Audited) 38

7.0 Corporate Directory 63

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1.0 Manager’s Report

Dear Unit Holders,

We are pleased to present the Manager’s report of BIMB i Flexi Fund for the financial year

ended 31 March 2017.

1.1 Fund Name/ Fund Type/ Fund Category/ Fund Investment Objective/ Fund

Performance Benchmark/ Fund Distribution Policy

Fund Name BIMB i Flexi Fund

Fund Type Growth

Fund Category Shariah-compliant mixed asset

Fund Investment

Objective

The Fund seeks to achieve long term1 capital growth by

investing in a diversified portfolio of Shariah-compliant

securities.

Note:

Any material change to the investment objective of the

Fund would require Unit Holders’ approval.

Fund Performance Benchmark

The selected performance benchmark for this Fund is based on 50:50 ratio of the FBM Emas Shariah Index and

12-month Term Deposit-i Tawarruq (TDT-i) rate of Bank Islam Malaysia Berhad.

Note: The benchmark reflects the investment and asset allocation strategies of the Fund, where the Fund is allowed to invest

its asset in Shariah-compliant equities as well as Sukuk and Islamic money market instruments, depending on the outlook of the market. The risk profile of the Fund is not the

same as the risk profile of the performance benchmark.

Fund Distribution

Policy The distribution of income is incidental.

1 Long term in this context refers to a period of more than five (5) years.

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1.2 Performance for the financial year ended 31 March 2017

1.2.1 Performance review

For the financial year under review, BIMB i Flexi Fund (“the Fund”) registered a return of

7.58% as compared to its benchmark’s return of 3.00%. The Fund had met its objective of

achieving capital growth following the Fund’s investment strategy to overweigh export

oriented sector.

The selected performance benchmark for the Fund is 50:50 ratio of the FBM Emas Shariah

Index and 12-month Bank Islam Term Deposit-i Tawarruq (TDT-i) rates.

Our strategy has consistently been to remain focus on well-established companies that have

better prospects for earnings growth and capital appreciation. Moving forward, more

attention will be given to sector allocation and rotational play to capitalize on Net Asset

Value (NAV) appreciation.

As at 31 March 2017, the Fund has 88.97% exposure to equities and 11.03% to cash and

money market instruments. The total NAV of the Fund is RM6.1 million whereas the NAV

per unit of the Fund is RM0.2256.

For the financial year under review, there were no significant changes to the state of affairs

of the Fund and no circumstances that materially affect the interest of unit holders that have

taken place up to the date of this Manager’s Report.

5

1.2.2 Total return and average total return for the financial year ended 31 March 2017

BIMB i Flexi Fund Benchmark

Total

Return

(%)

Average

Total Return

(%)

Total Return

(%)

Average

Total Return

(%)

1-Year Period 7.58 7.58 3.00 3.00

2-Year Period -9.03 -4.52 2.42 1.21

3-Year Period -9.76 -3.25 4.07 1.36

1.2.3 Total return for the financial years

Financial Year

Total Return

BIMB i Flexi Fund

(%)

Benchmark

(%)

31 March 2017 7.58 3.00

31 March 2016 -15.44 -0.56

31 March 2015 -0.80 1.61

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Figure 1: Movement of the Fund versus the Benchmark

Note:

Data Source : BIMB Investment Management Berhad

Data verified by : Novagni Analytics & Advisory Sdn. Bhd. (formerly known

as Perkasa Normandy Advisers Sdn. Bhd.)

Benchmark : 50: 50 FBM Emas Shariah Index &

12-month Term Deposit-i Tawarruq (TDT-i) rate of Bank

Islam Malaysia Berhad

Notes:

1. Total Return of the Fund has been verified by Novagni Analytics & Advisory Sdn. Bhd.

(formerly known as Perkasa Normandy Advisers Sdn. Bhd.) (363145-W)

2. Average Total Return is derived by this formula:

Total Return

Number of Years under Review

Past performance is not necessarily indicative of future performance and unit prices and

investment returns may go down, as well as up.

7

1.3 Economic and Market Review

Economy

a) Global

US Gross Domestic Product (GDP) grew at 2.1% in the last quarter of 2016, bringing full

year GDP growth to 1.6% versus 2.6% in 2015.

US headline inflation rose to 2.5% in March 2017 from 1.1% in April 2016 contributed by

the improving US economic conditions on better job market.

US unemployment rate in March 2017 fell to 4.5% from 5.0% in April 2016 as the US

economy continues the pace of robust hiring.

Euro zone’s GDP grew by 0.5% in the fourth quarter of 2016, bringing full year GDP

growth to 1.7% and was slightly lower than 2% GDP growth achieved in 2015.

Euro zone’s inflation rate stood at 1.5% in March 2017 from -0.2% in April 2016 as a

result of sharp rebound in oil and energy price during the first quarter of 2017 to above

USD50/bbl.

Euro zone’s unemployment rate fell to 9.5% in March 2017 from 10.2% in April 2016,

driven by higher employment in Spain and Portugal. Germany retains the lowest jobless

rate of 3.9% within the region.

China’s GDP growth was 6.9% in the first quarter of 2017, supported by government

infrastructure spending and a rebound in housing market activities. The GDP Growth for

China seems to have bottomed out from its low of 6.7% achieved in Q1 of 2016.

(Source: Bloomberg, Eurostats, RHB Investment Bank and Maybank Investment Bank)

b) Local

Malaysia’s real GDP growth was 4.5% in the fourth quarter of 2016, underpinned by the

expansion of manufacturing and services sector. This has brought full year GDP growth

of 4.2% for 2016.

Malaysia’s annual inflation rate rose to 5.1% in March 2017 from 2.1% in April 2016 as

hikes in RON95 fuel prices in January and February 2017 had pushed transport and

related cost higher for the local economy.

8

Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 3.00%

at the Monetary Policy Committee (MPC) meeting on 2 March 2017. The monetary

policy will remain accommodative and supportive to the domestic economy as

heightened risks in the global economic and financial environment persist.

Bank Negara Malaysia's (BNM) international reserves stood at USD94.9 billion as at 31

March 2017 from USD97.2 billion as at 15 April 2016. The reserves position as at 31

March 2017 were sufficient to finance 8.3 months of retained imports and is 1.1 times

the short-term external debt.

(Source: Bloomberg, Department of Statistics Malaysia and Bank Negara Malaysia)

Market Review

Equity

FTSE Bursa Malaysia Emas Shariah Index (“FBM Shariah”) commenced the period under

review at 12,482.39 points on 1 April 2016 and rose to the highest level of 12,880.42 points

on 29 March 2017 and hit a low of 11,775.69 points on 16 May 2016. It closed the year

under review at 12,811.34 points on 31 March 2017. For the year under review, the FBM

Shariah was up 328.95 points or 2.64%. Among the key factors that contributed to the

movement of the index are highlighted below:

In May 2016, MSCI announced the reduction of Malaysia’s index weightage within its

index, prompting a sell down in the domestic market and further weakening the Ringgit

to USD/MYR 4.15.

In June 2016, the global equities and currency market were hit by a shocking Brexit vote

result that sent shockwaves across European Union as United Kingdom citizens opted

to leave the European Union due to frustration over the union’s multiple policies that are

perceived to be not in favor of the UK economy.

Bank Negara Malaysia had cut the Overnight Policy Rate (OPR) unexpectedly by 25bps

to 3.00% in July 2016 as a preventive measure to cushion the negative impact from the

Brexit referendum outcome on the back of a slowing domestic economy.

Statement from Janet Yellen after meeting at Jackson Hole in late August 2016 points to

a strengthening case for possible rate hike ahead, while global oil prices and Ringgit

remain weak as oversupply concerns continues to weigh on commodity prices across

the globe.

The U.S. Federal Reserve declined to raise interest rates in September 2016 ahead of

the US presidential election in November 2016 and reckons that the US economy still

have room to improve before it run the risk of overheating.

9

Malaysia’s Prime Minister unveiled the country’s budget for 2017 on 21 October 2016

with the aim of capping the federal budget deficit at 3.0% versus 3.1% for 2016 with a

GDP growth target of between 4% to 5% for 2017. An average crude oil price of USD45

per barrel is being used for Federal government’s 2017 budget.

In November 2016, Donald Trump’s victory in the U.S. presidential election caught the

general markets off-guard as investors flock to safe heaven assets like gold, bond and

the Japanese yen, perceiving Trump’s administration would bring uncertainty to the

markets. The Asian markets reacted with a sharp selldown, however subsequently,

global investors rebalanced their portfolio to take advantage of the perceived stronger

US growth and higher US bond yields.

In December 2016, the Federal Reserve raise the widely anticipated interest rate hike

by 0.25% to 0.75% in light of the healthy expansion pace of the US economy while

counteracting the President elect’s goal to further stimulate a recovering economy.

During the month, OPEC members agreed to cut oil production to reduce the global oil

supply glut which caused oil prices to rise to a 16-month high above $55 on 5 December

2016.

In January 2017, Mr. Donald Trump’s inauguration as the new president for United

States of America had brought more policy uncertainty to the world from the new

president with regards to US-Mexico cross border trade and potential new restriction on

immigration and travelling into US. Nonetheless, the Dow Jones Index and global

financial market remains steady during the month.

The global equities market welcomed another surprise 25bps rate hike from US Federal

Reserve on the back of stronger than expected US economic data and also more

hawkish interest rate stance by the new administration, bringing the Fed fund rates to

1.00% post rate hike on 15th March 2017.

(Source: Bloomberg and Bank Negara Malaysia)

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Bond Market and Money Market

a) Global

US Treasury yields increased across the yield curve during the year under review with

10-year bond yields increased by 50 basis points to 2.28% and the 20-year bond yields

also increased by 45 basis points to 2.65%.

Figure 2: US Treasury Yields

Source: US Treasury Department, 31 March 2017

b) Local

The Malaysian Government Securities (MGS) and Government Investment Issue (GII)

dominated the local bond market activities with traded volume of RM1,027.13 billion for

the year under review. The government bond yields increased due to the Donald

Trump’s victory in the U.S. presidential election caught the general markets off-guard

as investors flock to safe heaven assets.

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Table 1: Sukuk/ Islamic Bond Yields

Tenure/Date 31 March 2017

(%)

31 March 2016

(%)

Change

* (bps)

3-Year Bonds

GII 3.75 3.20 55.0

AAA Corporate 4.19 4.09 10.0

5-Year Bonds

GII 3.97 3.66 31.0


7-Year Bonds

GII 4.10 3.90 20.0


10-Year Bonds

GII 4.13 4.03 10.0


Source: Bond Pricing Agency Malaysia (BPAM), 31 March 2017

Figure 3: Overnight Policy Rate (OPR)

Source: Bank Negara Malaysia (BNM), 31 March 2017

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1.4 Market Outlook and Strategy

a) Equity

The equity market outlook for 2017 is expected to be another volatile year. External

factors may likely influence the domestic market sentiment, which includes OPEC

and Non-OPEC commitment to stabilize the oil glut, President Trump’s stance on

trade policy and economic growth, ramifications of US interest rate hikes and

currency movement, political sentiment in the Euro zone, China’s economic

development, monetary policies employed by central banks and possible global

recession fears that may cause volatility in the domestic market. With potential

interest on selective sector to support the domestic market, the local bourse should

be able to withstand external shocks given the ample domestic liquidity and buying

interest of foreign and local institutional investors.

Global economy outlook continues to remain sluggish as growth across economies

has been uneven. While the US economic recovery path is on track, the Euro zone,

Japan and China’s growth remain weak. In Asia, growth is being continuously

sustained by the expansion in domestic demand and exports.

For Malaysia, the resilience of domestic consumption remains the support for growth.

With higher spending on infrastructure projects underway, higher public sector

wages, improve outlook for crude palm oil (CPO) price and a rebound in government

consumption and expenditure will help to improve corporate earnings and consumer

spending for the year. Going forward, domestic demand will still remain the key driver

of growth as the Malaysian economy is still projected to grow between 4.2% to 4.7%.

The strategy is to invest in companies with good earnings visibility, strong balance

sheet, reasonable valuation and good growth prospects. We have a long term

approach to investment with the objective to outperform the benchmark.

b) Sukuk Market & Money Market

The Sukuk market is expected to see positive flow, but gains were pretty mild amid

the tight levels. Despite the tighter levels, it is expected to see two-way flows going

forward, while profit-taking pressure should be well-absorbed, underpinned by

prevailing investor demand.

Looking forward, changes in OPR will depend on economic data on growth and

inflation. The money market deposit rates are expected to remain stable at current

levels over the medium-term.

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Our Sukuk strategy is to invest in good quality Sukuk with minimum AA3/AA-rating by

Rating Agency Malaysia (RAM)/Malaysian Rating Corporation Berhad (MARC) and

attractive profit rate. Our money market strategy is to invest in money market

investments to maximize return while providing liquidity and regular income for

investors.

1.5 Asset Allocation as at 31 March

BIMB i Flexi Fund 2017

(%) 2016

(%)

Investment in Quoted Securities

Construction - 2.69

Consumer Products 2.17 4.74

Industrial Products 47.58 27.97

Infrastructure 5.38 8.52

Plantation 2.37 3.20

Technology 30.47 19.24

Trading and Services 1.00 16.73

88.97 83.09

CASH AND SHORT TERM INVESTMENTS: 11.03 16.91

100.00 100.00

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1.6 Other Performance Data for the Financial Year Ended 31 March

BIMB i Flexi Fund 2017 2016

Unit Prices (MYR)

Highest NAV per unit for the year 0.2275 0.2547

Lowest NAV per unit for the year 0.1923 0.2052

Net Asset Value (NAV) and Units in Circulation (UIC) as at the End of the Year

Total NAV (MYR) 6,165,178 7,648,688

Units in Circulation (UIC) 27,328,980 36,478,527

NAV per unit (MYR) 0.2256 0.2097

Return of Fund (%)

Capital Growth (%)(b)

7.58 -15.44

Income Return (%)(c)

- -

Return of Fund (%)(a)

7.58 -15.44

Management Expense Ratio (MER) (%)(d)

2.05 1.99

Portfolio Turnover Ratio (PTR) (times)(e)

3.33 2.75

Note:

a) Return of the

Fund

= NAV per unit (end of year) - 1

NAV per unit (beginning of year)

b) Capital Growth = Total Return of the Fund – Income Return

c) Income Return = {Income Distribution per Unit / NAV per Unit on beginning

of year} x 100

d) Management

Expenses Ratio

= It is the total management expenses expressed as an

annual percentage of the Fund’s average Net Asset Value.

e) Portfolio Turnover

Ratio

= It represents the average of the total acquisitions and

disposals of the investment in the Fund for the annual

period over the average Net Asset Value of the Fund

calculated on a daily basis.

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1.7 Unit Holdings as at 31 March 2017

Size of Holdings

BIMB i Flexi Fund

No. of Unit Holders No. of Units Held

No. % Units %

5,000 and below 19 32.20 71,935.81 0.26

5,001 to 10,000 5 8.48 34,839.10 0.13

10,001 to 50,000 27 45.76 693,700.56 2.54

50,001 to 500,000 7 11.86 1,054,828.14 3.86

500,001 and above * 1 1.70 25,473,675.91 93.21

Units Held by Holders 59 100.00 27,328,979.52 100.00

Units Held by Manager 0 0.00 0.00 0.00

Grand Total for the Fund 59 100.00 27,328,979.52 100.00

*included under this category are nominee accounts.

1.8 Policy on Rebate and Soft Commission

Any stock broking rebates received by the Manager will be directed to the account of the

Fund. Any soft commissions received from the broker which are in the form of research and

advisory services that assist in the decision-making process relating to the Fund’s

investment may be retained by the Manager.

The Manager received soft commission from brokers in the form of research and advisory

services during the financial year.

For and on behalf of

The Manager

BIMB INVESTMENT MANAGEMENT BERHAD

Date: 30 May 2017

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1.0 Laporan Pengurus

Para Pemegang Unit,

Kami dengan sukacitanya membentangkan laporan Pengurus BIMB i Flexi Fund bagi tahun

berakhir pada 31 Mac 2017.

1.1 Nama Dana/ Jenis Dana/ Kategori Dana/ Objektif Pelaburan Dana/ Penanda Aras

Dana/ Polisi Agihan Dana

Nama Dana BIMB i Flexi Fund

Jenis Dana Dana Pertumbuhan

Kategori Dana Aset Campuran berlandaskan Shariah

Objektif

Pelaburan Dana

Tujuan utama Dana ini adalah untuk mencapai pertumbuhan

modal dalam jangkamasa panjang1 dengan melabur dalam

pelbagai portfolio sekuriti patuh Shariah.

Nota:

Sebarang perubahan ketara kepada objektif pelaburan Dana

memerlukan kelulusan daripada Pemegang Unit.

Penanda Aras Dana

Penanda aras prestasi terpilih bagi Dana ini adalah berdasarkan

kepada nisbah 50:50 Indeks FBM Emas Shariah dan pulangan 12

bulan Deposit Bertempoh-i Tawarruq (TDT-i) Bank Islam Malaysia

Berhad.

Nota:

Penanda aras ini mencerminkan strategi pelaburan dan

peruntukan aset Dana, di mana Dana dibenarkan untuk

melaburkan asetnya ke dalam ekuiti patuh Shariah, Sukuk dan

instrumen pasaran wang Islam, bergantung kepada prospek

pasaran. Profil risiko Dana tidak sama dengan profil risiko

penanda aras prestasi.

1 Jangkamasa panjang dalam konteks ini merujuk kepada tempoh lebih dari lima (5) tahun.

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1.2 Pencapaian bagi tahun kewangan berakhir pada 31 Mac 2017

1.2.1 Kajian Pencapaian

Bagi tahun kewangan dalam kajian, BIMB i Flexi Fund ("Dana") mencatatkan pulangan

sebanyak 7.58% berbanding penanda aras yang memperoleh 3.00%. Dana telah memenuhi

objektifnya untuk mencapai pertumbuhan modal berikutan strategi pelaburan Dana yang

memberikan tumpuan kepada sektor pengeksportan.

Penanda aras prestasi terpilih Dana adalah nisbah 50:50 Indeks Syariah Emas FBM dan

kadar 12-bulan Deposit Bertempoh-i Tawarruq (TDT-i).

Strategi kami adalah secara konsistennya mengekalkan tumpuan terhadap syarikat-syarikat

terkemuka yang mempunyai prospek lebih baik dalam menawarkan pertumbuhan

pendapatan dan peningkatan modal. Dalam melangkah ke hadapan, perhatian lebih akan

diberikan kepada peruntukan mengikut sektor dan pelaburan secara kitaran atau berubah-

ubah (rotational play) untuk mengambil kesempatan daripada peningkatan Nilai Aset Bersih

(NAB).

Sehingga 31 Mac 2017, Dana mempunyai pendedahan sebanyak 88.97% dalam pasaran

ekuiti, dan 11.03% pegangan tunai dan pasaran wang instrumen. Jumlah Nilai Aset Bersih

(NAB) Dana adalah sebanyak RM6.1 juta manakala NAB seunit Dana adalah RM0.2256.

Bagi tahun kewangan dalam kajian, tidak terdapat sebarang perubahan ketara dalam hal

ehwal pengurusan Dana dan tidak juga berlaku sebarang keadaan yang boleh menjejaskan

kepentingan para pemegang unit sehingga tarikh Laporan Pengurus disediakan.

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1.2.2 Jumlah Pulangan dan Purata Jumlah Pulangan bagi tahun kewangan berakhir 31 Mac

BIMB i Flexi Fund Penanda Aras

Jumlah

Pulangan (%)

Purata Jumlah

Pulangan (%)

Jumlah

Pulangan (%)

Purata Jumlah

Pulangan (%)

Jangkamasa 1 Tahun 7.58 7.58 3.00 3.00

Jangkamasa 2 Tahun -9.03 -4.52 2.42 1.21

Jangkamasa 3 Tahun -9.76 -3.25 4.07 1.36

1.2.3 Jumlah Pulangan Tahunan

Tahun Kewangan

Jumlah Pulangan

BIMB i Flexi Fund

(%)

BIMB i Flexi Fund

(%)

31 Mac 2017 7.58 3.00

31 Mac 2016 -15.44 -0.56

31 Mac 2015 -0.80 1.61

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Rajah 1: Pulangan Dana Berbanding Pulangan Penanda Aras

Nota:

Sumber Data : BIMB Investment Management Berhad

Data disahkan oleh : Novagni Analytics & Advisor Sdn. Bhd. (dahulunya

dikenali sebagai Perkasa Normandy Managers Sdn.Bhd)

Penanda Aras :50:50 Indeks FBM Emas Shariah dan Deposit Bertempoh-i

Tawarruq (TDT-i) 12 Bulan Bank Islam Malaysia Berhad.

Nota:

1. Jumlah Pulangan telah disahkan oleh Novagni Analytics & Advisor Sdn. Bhd. (363145-

W)

2. Jumlah Pulangan Purata adalah berpandukan formula berikut:

Jumlah Pulangan

Bilangan Tahun Bawah Kajian

Prestasi tahun sebelum ini tidak semestinya menjadi petunjuk prestasi masa depan dan harga

unit serta pulangan pelaburan mungkin turun dan naik.

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1.3 Ekonomi dan Kajian Pasaran

Ekonomi

a) Global

Keluaran Dalam Negara Kasar (KDNK) Amerika Syarikat (AS) berkembang 2.1% pada

suku terakhir tahun 2016, menjadikan pertumbuhan KDNK bagi tempoh setahun penuh

adalah sebanyak 1.6% berbanding 2.6% pada tahun 2015.

Kadar inflasi utama AS meningkat kepada 2.5% pada Mac 2017 berbanding 1.1% pada

April 2016 apabila keadaan ekonomi AS semakin meningkat dengan pasaran

pekerjaan yang lebih baik.

Kadar pengangguran AS pada Mac 2017 jatuh kepada 4.5% daripada 5.0% pada April

2016 apabila ekonomi AS terus menyumbang kepada peningkatan penawaran kerja

yang banyak.

KDNK zon Euro meningkat sebanyak 0.5% pada suku keempat tahun 2016, menjadikan

pertumbuhan KDNK bagi tempoh setahun penuh sebanyak 1.7% dan ia merosot sedikit

berbanding pertumbuhan KDNK sebanyak 2% yang dicapai pada tahun 2015.

Kadar inflasi zon Euro kekal 1.5% pada Mac 2017 berbanding -0.2% pada April 2016

apabila harga minyak mentah dan tenaga melonjak semula sepanjang suku pertama

2017 untuk berada di atas paras AS$50/setong.

Kadar pengangguran di zon Euro jatuh kepada 9.5% pada Mac 2017 berbanding 10.2%

pada April 2016 disebabkan oleh peningkatan tenaga kerja di Sepanyol dan Portugal.

Jerman masih mencatatkan kadar pengangguran yang terendah sebanyak 3.9% di

rantau berkenaan.

Pertumbuhan KDNK China adalah 6.9% pada suku pertama 2017, disokong oleh

perbelanjaan infrastruktur kerajaan dan pemulihan dalam aktiviti pasaran perumahan.

Pertumbuhan KDNK China itu dilihat kembali meningkat daripada paras terendahnya

iaitu 6.7% yang dicatatkan pada suku pertama 2016.

(Sumber: Bloomberg, Eurostats, RHB Investment Bank dan Maybank Investment Bank)

21

b) Dalam Negara

Malaysia mencatatkan pertumbuhan KDNK benar sebanyak 4.5% pada suku keempat

2016, disokong oleh sektor perkembangan pembuatan dan perkhidmatan. Ini

menjadikan pertumbuhan KDNK bagi tempoh setahun penuh adalah sebanyak 4.2%

untuk 2016.

Kadar inflasi tahunan Malaysia meningkat kepada 5.1% pada Mac 2017, daripada 2.1%

pada April 2016 berikutan kenaikan harga runcit minyak RON95 pada Januari dan

Februari 2017 menjadikan kos pengangkutan dan kos berkaitan dalam ekonomi

tempatan lebih tinggi.

Bank Negara Malaysia memutuskan untuk mengekalkan Kadar Dasar Semalaman

(OPR) pada 3.00% dalam mesyuarat Jawatankuasa Dasar Monetari (MPC) yang

diadakan pada 2 Mac 2017. Dasar monetari akan kekal akomodatif dan menyokong

ekonomi domestik berikutan memuncaknya risiko secara berterusan dalam ekonomi

global dan persekitaran kewangan.

Rizab Bank Negara Malaysia (BNM) berjumlah AS$94.9 bilion setakat 31 Mac 2017

berbanding AS$97.2 bilion pada 15 April 2016. Paras rizab pada 31 Mac 2017 adalah

memadai untuk membiayai 8.3 bulan import tertangguh dan mewakili 1.1 kali hutang

jangka pendek luar negara.

(Sumber: Bloomberg, Jabatan Perangkaan dan Bank Negara Malaysia)

Kajian Pasaran

Ekuiti

Indeks Syariah Emas FTSE Bursa Malaysia ("FBM Shariah") berada dalam tempoh kajian

pada 1 April 2016 dengan catatan 12,482.39 mata sebelum meningkat ke paras tertinggi

12,880.42 mata pada 29 Mac 2017 dan berada paras rendah 11,775.69 mata pada 16 Mei

2016. Indeks mengakhiri tahun kajian pada paras 12,811.34 mata pada 31 Mac 2017.

Dalam tempoh kajian, FBM Syariah meningkat 328.95 mata atau 2.64%. Antara faktor

utama yang menyumbang kepada pergerakan indeks dinyatakan di bawah:

Pada Mei 2016, MSCI mengumumkan pengurangan wajaran indeks Malaysia dalam

indeksnya, menyebabkan berlakunya penjualan secara besar-besaran dalam pasaran

domestik dan melemahkan lagi nilai Ringgit berbanding dolar Amerika kepada

AS$/MYR 4.15.

22

Pada Jun 2016, pasaran ekuiti dan mata wang global dikejutkan oleh keputusan

pungutan suara Brexit yang turut menggemparkan seluruh Kesatuan Eropah (EU)

apabila rakyat United Kingdom (UK) memilih untuk meninggalkan Kesatuan itu kerana

kecewa dengan pelbagai dasarnya yang dianggap tidak memihak kepada ekonomi

negara itu.

Bank Negara Malaysia secara di luar jangkaan telah mengurangkan Kadar Dasar

Semalaman (OPR) sebanyak 25 mata asas kepada 3.00% pada Julai 2016 sebagai

langkah pencegahan untuk mengurangkan impak negatif daripada keputusan pungutan

suara atau referendum Brexit dengan keadaan ekonomi dalam negara yang perlahan.

Kenyataan Janet Yellen selepas mesyuarat di Jackson Hole pada akhir Ogos 2016

menunjukkan terdapat asas kukuh tentang kemungkinan kenaikan kadar faedah yang

seterusnya manakala harga minyak mentah dunia dan nilai mata wang Ringgit kekal

rendah kerana kebimbangan berterusan terhadap lebihan bekalan terus menekan harga

komoditi itu di seluruh dunia.

Rizab Persekutuan AS enggan menaikkan kadar faedah pada September 2016 lebih

awal daripada Pilihan Raya Presiden Amerika Syarikat yang diadakan pada November

2016 dan menganggap ekonomi AS masih mempunyai ruang untuk meningkat sebelum

berdepan dengan risiko mengalami pertumbuhan yang terlalu tinggi.

Perdana Menteri Malaysia membentangkan Bajet 2017 pada 21 Oktober 2016 bertujuan

mengekang defisit bajet persekutuan pada paras 3.0% berbanding 3.1% pada tahun

2016 dengan menyasarkan pertumbuhan KDNK antara 4% hingga 5% bagi tahun 2017.

Bajet 2017 itu disediakan berdasarkan harga purata minyak mentah pada paras AS$45

setong.

Pada November 2016, kemenangan Donald Trump di luar jangkaan dalam Pilihan Raya

Presiden AS mengejutkan pasaran amnya, apabila para pelabur berpusu-pusu mencari

aset pelaburan yang selamat seperti emas, bon dan yen Jepun, kerana mempercayai

bahawa pentadbiran Trump akan menyebabkan berlakunya ketidaktentuan dalam

pasaran. Pasaran Asia pula mengalami kegiatan jualan secara besar-besaran sebelum

para pelabur sejagat kemudiannya mengimbangi semula portfolio mereka untuk

mengambil faedah daripada pertumbuhan lebih kukuh dalam ekonomi AS dan kadar

hasil bon AS yang lebih tinggi.

Pada Disember 2016, Rizab Persekutuan menaikkan kadar faedah sebanyak 0.25%

kepada 0.75% seperti dijangkakan oleh banyak pihak berikutan berlakunya

pengembangan yang menggalakkan dalam ekonomi AS sambil mengimbangi matlamat

Presiden yang baru dipilih untuk terus merangsang ekonomi negara itu. Pada bulan ini,

negara-negara anggota OPEC bersetuju mengurangkan pengeluaran minyak mentah

dalam usaha menangani lebihan komoditi berkenaan yang mengakibatkan harga minyak

mentah global meningkat ke paras tertinggi dalam tempoh 16-bulan iaitu di atas paras

AS$55 setong pada 5 Disember 2016.

23

Pada Januari 2017, Donald Trump secara rasminya menjadi presiden baharu Amerika

Syarikat namun beliau lebih banyak memperkenalkan dasar-dasar tidak jelas kepada

dunia berkaitan perdagangan melangkaui sempadan AS-Mexico dan potensi halangan

baharu imigresen dan perjalanan warga asing ke AS. Bagaimanapun, Indeks Dow

Jones dan pasaran kewangan global kekal stabil pada bulan itu.

Pasaran ekuiti global mengalu-alukan kenaikan mengejut kadar faedah AS sebanyak 25

mata asas oleh Rizab Persekutuan AS berikutan data ekonomi negara itu yang lebih

kukuh berbanding jangkaan dan juga pendirian terhadap kadar faedah yang lebih

agresif oleh pentadbiran baharu, menyebabkan kadar dana Persekutuan meningkat

kepada 1.00% selepas kenaikan kadar faedah pada 15 Mac 2017.

(Sumber: Bloomberg dan Bank Negara Malaysia)

Pasaran Bon dan Pasaran Wang

a) Global

Hasil Perbendaharaan AS meningkat di seluruh keluk hasil sepanjang tahun dalam

kajian dengan kadar hasil bon 10 tahun meningkat sebanyak 50 mata asas kepada

2.28% dan kadar hasil bon 20 tahun juga meningkat sebanyak 45 mata asas kepada

2.65%.

24

Rajah 2: Kadar Perbendaharaan AS

Sumber: Jabatan Perbendaharaan AS, 31 Mac 2017

25

b) Dalam Negara

Sekuriti Kerajaan Malaysia (MGS) dan Terbitan Pelaburan Kerajaan (GII) mendominasi

aktiviti pasaran bon tempatan dengan jumlah dagangan sebanyak RM1,027.13 bilion

bagi tahun dalam kajian. Kadar hasil bon kerajaan kebanyakannya meningkat berikutan

kemenangan Donald Trump dalam pilihanraya Presiden AS yang menyebabkan

pelabur di pasaran am cenderung ke aset yang lebih selamat.

Jadual 1: Kadar Pulangan Sukuk/ Bon Islam

Tempoh/ Tarikh 31 Mac 2017

(%)

31 Mac 2016

(%)

Pertukaran

* (bps)

Bon 3 Tahun

GII 3.75 3.20 55.0

Korporat AAA 4.19 4.09 10.0

Bon 5 Tahun

GII 3.97 3.66 31.0


Bon 7 Tahun

GII 4.10 3.90 20.0


Bon 10 Tahun

GII 4.13 4.03 10.0


Sumber: Agensi Penetapan Harga Bon Malaysia (BPAM), 31 Mac 2017

26

Rajah 3: Kadar Polisi Semalaman (OPR)

Sumber: Bank Negara Malaysia (BNM), 31 Mac 2017

1.4 Tinjauan Pasaran dan Strategi

a) Ekuiti

Tinjauan menunjukkan pasaran ekuiti bagi tahun 2017 dijangka menjadi satu lagi

tahun tidak menentu. Faktor-faktor luaran yang mungkin mempengaruhi sentimen

pasaran domestik termasuklah komitmen OPEC dan negara-negara bukan anggota

OPEC untuk menstabilkan lebihan minyak mentah dalam pasaran, pendirian

Presiden Trump terhadap dasar perdagangan dan pertumbuhan ekonomi, kesan

kenaikan kadar faedah AS dan pergerakan mata wang, sentimen politik di zon Euro,

pembangunan ekonomi China, dasar kewangan yang digunakan oleh bank pusat

dan kebimbangan terhadap kemungkinan berlakunya kemelesetan global yang boleh

menyebabkan keadaan turun naik dalam pasaran domestik. Dengan terdapat

potensi sektor-sektor terpilih untuk menyokong pasaran tempatan, bursa tempatan

seharusnya dapat menghadapi kejutan luar kerana terdapatnya kecairan atau

mudah tunai yang besar dalam negara dan minat belian pelabur asing dan pelabur

institusi tempatan.

27

Prospek ekonomi global kekal tidak bermaya memandangkan pertumbuhan yang

tidak sekata dalam ekonomi seluruh negara dunia. Ketika pemulihan ekonomi AS

berada pada landasannya, pertumbuhan zon Euro, Jepun dan China masih lemah.

Di Asia, pertumbuhan berlaku secara berterusan disebabkan oleh peningkatan

permintaan domestik dan eksport.

Bagi Malaysia, daya tahan penggunaan dalam negara kekal menjadi penyokong

kepada pertumbuhan. Dengan perbelanjaan lebih tinggi terhadap projek-projek

infrastruktur yang sedang dijalankan, gaji sektor awam yang lebih tinggi, tinjauan

lebih baik dalam harga minyak sawit mentah dan lonjakan semula dalam

penggunaan dan perbelanjaan kerajaan akan membantu meningkatkan pendapatan

korporat dan perbelanjaan pengguna bagi tahun ini. Melangkah ke hadapan,

permintaan dalam negeri kekal menjadi pemacu utama pertumbuhan ekonomi

Malaysia yang masih dijangka berkembang antara 4.2% kepada 4.7%.

Strategi kami adalah melabur dalam syarikat-syarikat yang dilihat mempunyai

pendapatan yang baik, lembaran kira-kira yang kukuh, penilaian yang munasabah

dan prospek pertumbuhan yang baik. Kami mempunyai pendekatan jangka panjang

untuk pelaburan dengan objektif untuk mengatasi pencapaian penanda aras.

b) Pasaran Sukuk & Pasaran Wang

Pasaran Sukuk dijangka menyaksikan aliran positif, tetapi keuntungannya agak

sederhana di tengah-tengah paras urus niaga yang ketat. Walaupun lebih ketat, ia

dijangka menyaksikan aliran dua hala pada masa depan, manakala tekanan

pengambilan untung dapat diserap dengan baik disokong oleh permintaan pelabur.

Untuk masa hadapan, perubahan dalam kadar polisi semalaman bergantung kepada

data ekonomi mengenai pertumbuhan dan inflasi. Kadar deposit pasaran wang

dijangka stabil pada peringkat semasa berbanding peringkat pertengahan.

Strategi Sukuk kami adalah melabur dalam Sukuk berkualiti sekurang-kurangnya

bertaraf AA3/AA-oleh Rating Agency Malaysia (RAM)/Malaysian Rating Corporation

Berhad (MARC) dan menawarkan kadar keuntungan yang menarik. Strategi pasaran

wang kami adalah melabur dalam pelaburan pasaran wang untuk memaksimumkan

pulangan di samping menyediakan kecairan atau mudah tunai dan pendapatan tetap

kepada pelabur.

28

1.5 Peruntukan Aset pada 31 Mac

BIMB i Flexi Fund 2017

(%) 2016

(%)

Pelaburan Sekuriti Tersiarharga:

Pembinaan - 2.69

Barangan Pengguna 2.17 4.74

Barangan Industri 47.58 27.97

Infrastruktur 5.38 8.52

Perladangan 2.37 3.20

Teknologi 30.47 19.24

Perdagangan dan Perkhidmatan 1.00 16.73

88.97 83.09

TUNAI DAN PELABURAN JANGKA PENDEK: 11.03 16.91

100.00 100.00

29

1.6 Lain-Lain Data Prestasi Bagi Tahun Kewangan Berakhir 31 Mac

BIMB i Flexi Fund 2017 2016

Harga Unit (RM)

NAB tertinggi seunit bagi tahun 0.2275 0.2547

NAB terendah seunit bagi tahun 0.1923 0.2052

Nilai Aset Bersih (NAB) dan Unit Dalam Edaran (UDE) pada Akhir Tahun

Jumlah NAB (RM) 6,165,178 7,648,688

Unit Dalam Edaran (UDE) 27,328,980 36,478,527

NAB seunit (RM) 0.2256 0.2097

Jumlah Pulangan Dana (%)

Pertumbuhan Modal (%)( (%)

(b) 7.58 -15.44

Pulangan Pendapatan (%)(c)

- -

Pulangan Dana (%)(a)

7.58 -15.44

Nisbah Perbelanjaan Pengurusan (NPP) (%)(d)

2.05 1.99

Nisbah Pusing Ganti Portfolio (Kali)(e)

3.33 2.75

Nota:-

a) Pulangan ke atas Dana

= Harga seunit (pada akhir tahun) - 1 Harga seunit (pada awal tahun)

b) Penambahan Modal = Pulangan Ke atas Dana – Pulangan Pendapatan

c) Pulangan Pendapatan = {Pengagihan Pendapatan Se Unit / NAB se unit

pada awal tahun} x 100

d) Nisbah Perbelanjaan Pengurusan

= Ia dikira dengan mengambil jumlah perbelanjaan pengurusan sepertimana yang dinyatakan sebagai peratusan tahunan daripada jumlah purata Nilai Aset

Bersih Dana

e) Nisbah Pusing Ganti Portfolio

= Ia dikira dengan mengambil purata jumlah perolehan dan pelupusan pelaburan dalam Dana bagi tempoh

tahunan dibahagi dengan purata Nilai Aset Bersih Dana yang dikira pada asas harian

30

1.7 Unit Holdings as at 31 March 2017

Saiz Dipegang

BIMB i Flexi Fund

Bilangan Pemegang Unit Jumlah Pegangan Unit

Bilangan % Bilangan %

5,000 dan ke bawah 19 32.20 71,935.81 0.26

5,001 hingga 10,000 5 8.48 34,839.10 0.13

10,001 hingga 50,000 27 45.76 693,700.56 2.54

50,001 hingga 500,000 7 11.86 1,054,828.14 3.86

500,001 dan ke atas* 1 1.70 25,473,675.91 93.21

Unit yang dipegang oleh

Pemegang Unit 59 100.00 27,328,979.52 100.00

Unit yang dipegang oleh

Pengurus 0 0.00 0.00 0.00

Jumlah Keseluruhan bagi Dana

59 100.00 27,328,979.52 100.00

*Akaun Penama juga termasuk di bawah kategori ini.

1.8 Polisi Rebat dan Komisyen Bukan Tunai

Sebarang rebat broker saham yang diterima oleh Pengurus akan dimasukkan ke dalam

akaun Dana. Mana-mana komisen ringan (bukan tunai) yang diterima daripada broker dalam

bentuk perkhidmatan penyelidikan dan perundingan bertujuan membantu proses membuat

keputusan berkaitan dengan pelaburan Dana boleh disimpan oleh Pengurus.

Pengurus menerima komisen ringan daripada para broker dalam bentuk perkhidmatan

penyelidikan dan khidmat nasihat sepanjang tahun kewangan.

Bagi dan bagi pihak

Pengurus

BIMB INVESTMENT MANAGEMENT BERHAD

Tarikh: 30 Mei 2017

Nota:

Laporan ini telah diterjemahkan daripada laporan asal (dalam Bahasa Inggeris). Jika

terdapat perbezaan, sila rujuk kepada laporan Bahasa Inggeris.

31

2.0 Trustee’s Report

To the Unit Holders of

BIMB i FLEXI FUND

We, AMANAHRAYA TRUSTEES BERHAD, have acted as Trustee of BIMB i FLEXI FUND

for the financial year ended 31 March 2017. In our opinion, BIMB INVESTMENT

MANAGEMENT BERHAD, the Manager, has operated and managed BIMB i FLEXI FUND

in accordance with the limitations imposed on the investment powers of the management

company under the Deed, securities laws and the applicable Guidelines on Unit Trust Funds

during the financial year then ended.

We are also of the opinion that:

(a) Valuation and pricing is carried out in accordance with the Deed and any regulatory

requirement; and

(b) Creation and cancellation of units are carried out in accordance with the Deed and any

regulatory requirement.

Yours faithfully

AMANAHRAYA TRUSTEES BERHAD

____________________

HABSAH BINTI BAKAR

Chief Executive Officer

Kuala Lumpur, Malaysia

Date: 30 May 2017

32

3.0 Shariah Committee’s Report


حيم ن ٱلر ـ حم بسم ٱهلل ٱلر


BIMB i FLEXI FUND

We have acted as the Shariah Committee of BIMB i Flexi Fund.

Our responsibilities are to ensure that the procedures and processes employed by BIMB

Investment Management Berhad and that the provisions of the Deed dated 27 March 2013 are

in accordance with Shariah principles.

In our opinion, BIMB Investment Management Berhad has managed BIMB i Flexi Fund in

accordance with Shariah principles and complied with applicable guidelines, rulings or

decisions issued by the Securities Commission pertaining to Shariah matters for the financial

year ended 31 March 2017.

In addition, we also confirm that the investment portfolio of BIMB i Flexi Fund comprises

securities which have been classified as Shariah-compliant by the Shariah Advisory Council

(SAC) of the Securities Commission, as the case may be and that all deposits and money

market instruments placed by the Fund are Shariah-compliant.

أعلم واهللا

For and on behalf of the Shariah Committee

………………………………………………..

USTAZ DR. AHMAD SHAHBARI@SOBRI SALAMON

(Chairman)

………………………………………………..

USTAZ DR. YUSOF RAMLI

(Committee Member)

………………………………………………..

USTAZAH DR. ASMAK AB. RAHMAN

(Committee Member)

Date: 30 May 2017

33

4.0 Directors’ Declaration



BIMB i Flexi Fund

We, Dato’ Ghazali Bin Awang and Najmuddin Bin Mohd Lutfi, being two of the directors of the

Manager, BIMB Investment Management Berhad, for BIMB i Flexi Fund do hereby state that in

our opinion, the accompanying Statement of Financial Position, Statement of Profit or Loss

and Other Comprehensive Income, Statement of Changes in Net Asset Value and Statement

of Cash Flows are drawn up so as to give a true and fair view of the Statement of Financial

Position of the Fund as at 31 March 2017 and Statement of Profit or Loss and Other

Comprehensive Income, Statement of Changes in Net Asset Value and Statement of Cash

Flows for the year ended on that date.

For and on behalf on the Board of Directors,

……………………………………………

Dato’ Ghazali Bin Awang

(Non-Executive Independent Director)

…………………………………………..

Najmuddin Bin Mohd Lutfi

(Chief Executive Officer)

Date: 30 May 2017

34

5.0 Independent Auditors’ Report

(Established in Malaysia)

Report on the Audit of the Financial Statements Opinion

We have audited the financial statements of BIMB i Flexi Fund (“the Fund”), which comprise

the statement of financial position as at 31 March 2017, and the statement of profit or loss

and other comprehensive income, statement of changes in net asset value and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 38 to 62.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Fund as at 31 March 2017, and of its financial performance and its

cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and Securities Commission’s Guidelines on Unit Trust Funds in Malaysia.

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 auditors’ 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 Auditors’ Report Thereon

The Manager of the Fund is responsible for the other information. The other information comprises the information included in the annual report, 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 annual report and we

do not express any form of assurance conclusion thereon.

35

Information Other than the Financial Statements and Auditors’ Report Thereon (continued)

In connection with our audit of the financial statements of the Fund, our responsibility is to read the annual report and, in doing so, consider whether annual report 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 the annual report, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Manager and Trustee 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 Securities Commission’s

Guidelines on Unit Trust Funds in 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. 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 intend to liquidate the Fund or to cease operations, or have no realistic alternative but to do

so. The Trustee is responsible for ensuring that the Manager maintains proper accounting and

other records as necessary to enable true and fair presentations of these financial statement. Auditors’ Responsibilities 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.

36

Auditors’ Responsibilities for the Audit of the Financial Statements (continued)

As part of an audit conducted 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:

Identify and assess the risk 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 ability of

the Fund 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 of the Fund

represents the underlying transactions and events in a manner that gives true and fair view.

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.

37

Other matter

This report is made solely to the members of the Fund, as a body, in accordance with Securities Commission’s Guidelines on Unit Trust Funds in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

KPMG Desa Megat PLT Adrian Lee Lye Wang

(LLP0010082-LCA & AF 0759) Approval Number: 2679/11/17(J)

Chartered Accountants Chartered Accountant

Petaling Jaya, Selangor

Date: 30 May 2017

38

6.0 Financial Statements (Audited)

6.1 Statement of Financial Position as at 31 March 2017

Note 2017 2016 RM RM

Assets Quoted securities 4 5,485,399 6,355,667

Amount due from stockbroker 539,419 -

Amount due from Manager - 19,164 Other receivables 13,549 7,839 Cash and cash equivalents 5 432,556 1,357,144

Total assets 6,470,923 7,739,814

Liabilities Amount due to stockbroker 270,316 -

Amount due to Manager - 49,147 Other payables 35,429 41,979

Total liabilities 305,745 91,126

Net asset value 6,165,178 7,648,688

Unitholders’ fund Unitholders’ capital 6 7,938,526 9,814,234 Accumulated losses (1,773,348) (2,165,546)

Net asset value attributable to unitholders 6,165,178 7,648,688

Number of units in circulation 27,328,980 36,478,527

Net asset value per unit (sen) 22.56 20.97

The notes on pages 42 to 62 are an integral part of these financial statements.

39

6.2 Statement of Profit or Loss and Other Comprehensive Income for the financial year

ended 31 March 2017

Note 2017 2016 RM RM

Income Gain/(loss) on sale of quoted shares 79,484 (2,054,564) Income from Islamic debt securities - 24,085

Gain on sale of Islamic debt securities - 1,564 Gross dividends from shares quoted in Malaysia 148,648 356,057 Income from short term investments 1,669 33,167

Hibah from Al-Wadiah account 597 730 Net unrealised gain/(loss) from financial instruments at fair value through profit or loss

293,257

(13,241)

523,655 (1,652,202) Less: Amortisation of premium - (5,964)

Gross income/(loss) 523,655 (1,658,166)

Expenses Manager’s fee 7 96,166 166,204 Trustee’s fee 8 3,206 5,540

Audit fee 11,000 11,000 Tax agent’s fee 3,000 3,000 Administrative expenses 18,085 34,718

131,457 220,462

Net income/(loss) before taxation 392,198 (1,878,628) Tax expense 9 - -

Net income/(loss) after taxation 392,198 (1,878,628) Other comprehensive income for the year - -

Total comprehensive income/(loss) for the year 392,198 (1,878,628)

Total comprehensive income/(loss) for the year consist of:

Realised amount 98,941 (1,865,387) Unrealised amount 293,257 (13,241)

392,198 (1,878,628)


40

6.3 Statement of Changes in Net Asset Value for the financial year ended 31 March 2017

Unitholders’

capital

Accumulated

losses

Total Note RM RM RM

At 1 April 2015 16,088,950 (286,918) 15,802,032 Movement in unitholders’

contribution or distribution

Creation of units 135,810 - 135,810

Cancellation of units (6,410,526) - (6,410,526)

Total attributable to unitholders

(6,274,716) - (6,274,716) Total comprehensive loss for the

year

- (1,878,628) (1,878,628)

As at 31 March 2016 / 1 April 2016 6 9,814,234 (2,165,546) 7,648,688

Movement in unitholders’ contribution or distribution

Creation of units 53,225 - 53,225 Cancellation of units (1,928,933) - (1,928,933)

Total attributable to unitholders

(1,875,708) - (1,875,708)

Total comprehensive income for the year

- 392,198 392,198

As at 31 March 2017 6 7,938,526 (1,773,348) 6,165,178


41

6.4 Statement of Cash Flows for the financial year ended 31 March 2017

2017 2016 RM RM Cash flows from operating activities

Proceed from sale of Islamic debt securities - 1,014,200 Purchase of Islamic debt securities - (1,018,600) Proceed from sale of quoted investments 21,447,177 31,900,013

Purchase of quoted investments (20,473,272) (25,499,541) Dividend received 142,854 361,152 Income from Islamic debt securities and short term

investments 2,351 58,138 Management fee paid (98,803) (177,028) Trustee fee paid (3,293) (5,901)

Audit fee paid (11,000) (11,000) Tax agent fee paid (3,000) (3,000) Payment for other administrative (21,911) (27,453)

Net cash generated from operating activities 981,103 6,590,980

Cash flows from financing activities

Cash receipt for creation of units 72,389 116,646 Cash payment for cancellation of units (1,978,080) (6,609,035)

Net cash used in financing activities (1,905,691) (6,492,389)

Net (decrease)/increase in cash and cash equivalents (924,588) 98,591

Cash and cash equivalents at 1 April

1,357,144

1,258,553

Cash and cash equivalents at 31 March 432,556 1,357,144

Cash and cash equivalents comprise:

Short term placements 324,673 1,300,103 Cash at bank 107,883 57,041

432,556 1,357,144


42

6.5 Notes to the financial statements

1. Information on the Fund

BIMB i Flexi Fund (hereinafter referred to as “the Fund”) was constituted pursuant to the

execution of a Deed dated 27 March 2013 between the Manager - BIMB Investment Management

Berhad, the Trustee – AmanahRaya Trustees Berhad and the registered unitholders of the Fund.

The principal activity of the Fund is to invest in authorised investments as defined in the Deed,

which include stocks and shares of companies quoted on Bursa Malaysia and short term

placements.

The Manager, BIMB Investment Management Berhad, a company incorporated in Malaysia, is a

subsidiary of Bank Islam Malaysia Berhad.

The financial statements were approved by the Board of Directors of the Manager on 30 May

2017.

2. Basis of preparation

(a) Statement of compliance

The financial statements of the Fund have been prepared in accordance with

Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting

Standards (“IFRS”), the Deed and Securities Commissions Guidelines on Unit Trust

Funds in Malaysia.

The following are accounting standards, amendments and interpretations that have

been issued by the Malaysian Accounting Standards Board (“MASB”) but have not

been adopted by the Fund:

MFRSs, Interpretations and amendments effective for annual periods

beginning on or after 1 January 2017

Amendments to MFRS 12, Disclosure of Interests in Other Entities (Annual

Improvements to MFRS Standards 2014-2016 Cycle)

Amendments to MFRS 107, Statement of Cash Flows – Disclosure Initiative

Amendments to MFRS 112, Income Taxes – Recognition of Deferred Tax

Assets for Unrealised Losses

43

2. Basis of preparation (continued)

(a) Statement of compliance (continued)

MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2018

MFRS 9, Financial Instruments (2014)

MFRS 15, Revenue from Contracts with Customers

Clarifications to MFRS 15, Revenue from Contracts with Customers

IC Interpretation 22, Foreign Currency Transactions and Advance

Consideration

Amendments to MFRS 1, First-time Adoption of Malaysian Financial

Reporting Standards (Annual Improvements to MFRS Standards 2014-2016

Cycle)

Amendments to MFRS 2, Share-based Payment – Classification and

Measurement of Share-based Payment Transactions

Amendments to MFRS 4, Insurance Contracts – Applying MFRS 9 Financial

Instruments with MFRS 4 Insurance Contracts

Amendments to MFRS 128, Investments in Associates and Joint Ventures

(Annual Improvements to MFRS Standards 2014-2016 Cycle)

Amendments to MFRS 140, Investment Property – Transfers of Investment

Property

MFRSs, Interpretations and amendments effective for annual periods

beginning on or after 1 January 2019

MFRS 16, Leases

MFRSs, Interpretations and amendments effective for a date yet to be

confirmed

Amendments to MFRS 10, Consolidated Financial Statements and MFRS

128, Investments in Associates and Joint Ventures – Sale or Contribution of

Assets between an Investor and its Associate or Joint Venture

The Fund plans to apply the abovementioned accounting standards, amendments

and interpretations, where applicable:

from the annual period beginning on 1 April 2017 for those amendments that

are effective for annual periods beginning on or after 1 January 2017.

from the annual period beginning on 1 April 2018 for those accounting

standards, amendments or interpretations that are effective for annual periods

beginning on or after 1 January 2018.

from the annual period beginning on 1 April 2019 for the accounting standard

that is effective for annual periods beginning on or after 1 January 2019.

http://masb.org.my/pdf/MFRS%201%20042015.pdf



44

2. Basis of preparation (continued)

(a) Statement of compliance (continued)

The initial application of the accounting standards, amendments or interpretations

are not expected to have any material financial impact to the current year and prior

year financial statements of the Fund, except as mentioned below:

(i) MFRS 9, Financial Instruments

MFRS 9 replaces the guidance in MFRS 139, Financial Instruments:

Recognition and Measurement on the classification and measurements of

financial assets and financial liabilities, and on hedge accounting.

The Fund is currently assessing the financial impact that may arise from the

adoption of MFRS 9.

(b) Basis of measurement

The financial statements are prepared on the historical cost basis except as

disclosed in note 3(a)(ii).

(c) Functional and presentation currency

These financial statements are presented in Ringgit Malaysia (RM), which is the

Fund’s functional currency.

(d) Use of estimates and judgements

The preparation of the financial statements in conformity with MFRSs requires

management to make judgements, estimates and assumptions that affect the

application of accounting policies and the reported amounts of assets, liabilities,

income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions

to accounting estimates are recognised in the year in which the estimate is revised

and in any future years affected.

There are no significant areas of estimation uncertainty and critical judgements in

applying accounting policies that have significant effect on the amounts recognised

in the financial statements.

45

3. Significant accounting policies

The accounting policies set out below have been applied consistently to the periods presented in these financial statements, unless otherwise stated.

(a) Financial instruments

(i) Initial recognition and measurement

A financial instrument 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 instrument is recognised initially, at its fair value plus, in the case of

a financial instrument not at fair value through profit or loss, transaction costs

that are directly attributable to the acquisition or issue of the financial

instrument.

(ii) Financial instrument categories and subsequent measurement

The Fund categorises financial instruments as follows:

Financial assets

(a) Financial assets at fair value through profit or loss

Fair value through profit or loss category comprises financial assets that are held for trading, or financial assets that are specifically designated into this category upon initial recognition.

Financial assets categorised as fair value through profit or loss are subsequently measured at their fair values with the gain or loss

recognised in the statement of profit or loss.

(b) Financing and receivables

Financing and receivables category are debt instruments that are not quoted in an active market and these comprises amount due from

Managers, stockbroker, other receivables, cash and cash equivalents.

Financial assets categorised as financing and receivables are

subsequently measured at amortised cost using the effective profit method.

All financial assets except for those measured at fair value through profit or loss, are subject to review for impairment, see note 3(d).

46

3. Significant accounting policies (continued)

(a) Financial instruments (continued)

(ii) Financial instrument categories and subsequent measurement

(continued)

Financial liabilities

All financial liabilities are subsequently measured at amortised cost.

Financial liabilities measured at amortised cost comprises amount due to

stockbroker, amount due to Manager and other payables.

(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 expire or the

financial asset is transferred to another party without retaining control or

substantially all risks and rewards of the asset. On derecognition of a financial

asset, the difference between the carrying amount and the sum of the

consideration received (including any new asset obtained less any new liability

assumed) and any cumulative gain or loss that had been recognised in equity is

recognised in profit or loss.

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

obligation specified in the contract is discharged or cancelled or expires. On

derecognition of a financial liability, the difference between the carrying amount

of the financial liability extinguished or transferred to another party and the

consideration paid, including any non-cash assets transferred or liabilities

assumed, is recognised in profit or loss.

(b) Income recognition

(i) Dividend income

Dividend income is recognised in profit or loss on the date that the Fund’s right

to receive payment is established, which in the case of quoted shares is the

entitlement date.

(ii) Income from short term investments

Income from short term investments is recognised as it accrues using the

effective profit method in profit or loss.

47


(b) Income recognition (continued)

(iii) Gain on sale of investments

The realised gain on sale of investments is measured as the difference between

the net disposal proceeds and the carrying amount of the investments. The

carrying amount for determining the realised gain on sale of investments is

based on the weighted average cost method and where applicable adjusted for

accretion for discount and amortisation of premium.

(c) Cash and cash equivalents

Cash and cash equivalents consist of cash at bank and short term placements with

licensed financial institutions which have insignificant risk of changes in fair value

with original maturities of three months or less, and are used by the Fund in the

management of its short term commitments.

Cash and cash equivalents are categorised and measured as financing and

receivables in accordance with Note 3(a)(ii)(b).

(d) Impairment

Financial assets

All financial assets (except for financial assets categorised as fair value through profit

or loss) are assessed at each reporting date whether there is any objective evidence

of impairment as a result of one or more events having an impact on the estimated

future cash flows of the asset. Losses expected as a result of future events, no

matter how likely, are not recognised.

An impairment loss in respect of financing and receivables is recognised in profit or

loss and is measured as the difference between the asset’s carrying amount and the

present value of estimated future cash flows discounted at the asset’s original

effective profit rate. The carrying amount of the asset is reduced through the use of

an allowance account.

48


(e) Income tax

Income tax expense comprises current tax. Current tax is recognised in profit or loss

except to the extent that it relates to items recognised directly in equity or other

comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income for the

year, using tax rates enacted or substantively enacted at the statement of financial

position date, and any adjustment to tax payable in respect of previous years.

(f) Unitholders’ capital

The Fund issues cancellable units, which are cancelled at the unitholder’s option and

are classified as equity. Cancellable units can be put back to the Fund at any time for

cash equal to a proportionate share of the Fund’s net asset value. The outstanding

units is carried at the redemption amount that is payable at the financial position date

if the holder exercises the right to put the unit back to the Fund.

Units are created and cancelled at the unitholder’s option at prices based on the

Fund’s net assets value per unit at the time of creation or cancellation. The Fund’s

net assets value per unit is calculated by dividing the net assets attributable to

unitholders with the total number of outstanding units. In accordance with the

Securities Commission’s Guidelines on Unit Trust Funds in Malaysia, investment

positions are valued based on the last traded market price for the purpose of

determining the net assets value per unit for creations and cancellations.

The units in the Fund are puttable instruments, classified as equity, which entitle the

unitholders to a pro-rata share of the net asset of the Fund. The units are

subordinated and have identical features. There is no contractual obligation to deliver

cash or another financial asset other than the obligation on the Fund to repurchase

the units. The total expected cash flows from the units are based on the change in

the net asset of the Fund.

(g) Distribution

Distribution is at discretion of the Fund. A distribution to the Fund’s unitholders is

accounted for as a deduction from realised reserves. A proposed distribution is

recognised as a liability in the year in which they are declared.

(h) Net Asset Value

The Net Asset Value is calculated after deducting the retained profits allocated for

distribution.

49


(i) Fair value measurement

The Fund adopted MFRS 13, Fair Value Measurement which prescribed that fair

value of an asset or a liability, except for share-based payment and lease

transactions, is determined as the price that would be received to sell an asset or

paid to transfer a liability in an orderly transaction between market participants at the

measurement date. The measurement assumes that the transaction to sell the asset

or transfer the liability takes place either in the principal market or in the absence of a

principal market, in the most advantageous market.

For non-financial asset, the fair value measurement takes into account a market

participant’s ability to generate economic benefits by using the asset in its highest

and best use or by selling it to another market participant that would use the asset in

its highest and best use.

When measuring the fair value of an asset or a liability, the Fund uses observable

market data as far as possible. Fair value are categorised into different levels in a fair

value hierarchy based on the input used in the valuation technique as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or

liabilities that the Fund can access at the measurement date.

Level 2: inputs other than quoted prices included within Level 1 that are observable

for the asset or liability, either directly or indirectly.

Level 3: unobservable inputs for the asset or liability.

The Fund recognises transfers between levels of the fair value hierarchy as of the

date of the event or change in circumstances that caused the transfers.

50

4. Quoted securities

As at 31 March 2017

Number of shares

held Cost

RM

Market value

RM

Percentage of value of

funds at 2017

%

Company’s Name Main Market

(i) Consumer products

Kawan Food Bhd. 32,000 135,197 133,760 2.17

(ii) Industrial products

Evergreen Fibreboard Bhd. 356,000 348,490 302,600 4.91 Hartalega Holdings Bhd. 91,500 483,522 453,840 7.36

Hevea Board Bhd. 282,000 427,817 397,620 6.45 Kossan Rubber Industries Bhd. 61,500 411,071 383,145 6.21

SKP Resources Bhd. 227,000 322,559 288,290 4.68 Supermax Corporation Bhd. 169,000 459,645 336,310 5.45

Ta Ann Holdings Bhd. 32,000 120,557 119,360 1.94 Top Glove Corporation Bhd. 97,400 536,222 479,208 7.77

V.S Industry Bhd. 100,000 173,657 173,000 2.81

1,416,400 3,283,540 2,933,373 47.58

(iii) Infrastructure Time Dotcom Bhd. 38,100 326,445 331,470 5.38

(iv) Plantation

Felda Global Ventures

Holdings Bhd. 70,000 146,991 146,300 2.37

(iv) Technology

Globetronics Technology Bhd. 91,100 427,613 470,076 7.62

Inari Amertron Bhd. 258,000 451,819 526,320 8.54

Malaysian Pacific Industries Bhd. 41,200 356,035 473,800 7.68

Unisem (M) Bhd. 39,000 111,695 122,460 1.99

Vivocom Intl Holdings Bhd. 1,788,750 447,086 286,200 4.64

2,218,050 1,794,248 1,878,856 30.47

(vi) Trading and services

E.A. Technique (M) Bhd. 92,000 120,678 61,640 1.00

Total portfolio investment as at 31 March 2017 5,807,099 5,485,399 88.97

51

4. Quoted securities (continued)

As at 31 March 2016

Number

of shares held

Cost RM

Market

value RM

Percentage of value of

funds at

2016 %

Company’s Name

Main Market

(i) Construction IJM Corporation Bhd. 22,000 76,471 77,660 1.02 WCT Holdings Bhd. 75,711 149,243 127,952 1.67

97,711 225,714 205,612 2.69

(ii) Consumer products Kawan Food Bhd. 72,000 259,907 249,840 3.26 QL Resources Bhd. 26,000 112,118 113,100 1.48

98,000 372,025 362,940 4.74

(iii) Industrial products Evergreen Fibreboard Bhd. 140,000 168,012 141,400 1.85

Hartalega Holdings Bhd. 56,500 311,133 274,025 3.58

Jaya Tiasa Holdings Bhd. 122,000 193,883 183,000 2.39

Kossan Rubber Industries Bhd. 61,500 415,561 372,075 4.86 Petronas Chemicals Group

Bhd. 23,500 169,765 157,685 2.06

Petronas Gas Bhd. 9,100 210,117 200,200 2.62

SKP Resources Bhd. 124,000 178,336 159,960 2.09 Top Glove Corporation Bhd. 71,400 399,456 358,428 4.69

WTK Holdings Bhd. 220,000 323,922 292,600 3.83

828,000 2,370,185 2,139,373 27.97

52

4. Quoted securities (continued)

As at 31 March 2016

Number of shares

held

Cost

RM

Market value

RM

Percentage

of value of funds at

2016

% Company’s Name

Main Market (continued) (iv) Infrastructure

DiGi.Com Bhd. 84,100 484,634 415,454 5.43 Time Dotcom Bhd. 32,500 242,564 236,600 3.09

116,600 727,198 652,054 8.52

(v) Plantation

Felda Global Ventures Holdings Bhd. 162,000 274,878 244,620 3.20

(vi) Technology

Globetronics Technology

Bhd. 63,100 374,199 341,371 4.46 Inari Amertron Bhd. 108,750 363,728 350,175 4.58 Malaysian Pacific

Industries Bhd. 50,500 397,770 376,225 4.92 Unisem (M) Bhd. 85,000 191,140 188,700 2.47 Vivocom Intl Holdings

Bhd. 796,000 239,551 214,920 2.81

1,103,350 1,566,388 1,471,391 19.24

(vii) Trading and services

Axiata Group Bhd. 81,957 558,655 482,727 6.31 DKSH Holdings (Malaysia) Bhd. 16,000 64,218 64,000 0.84

E.A. Technique (M) Bhd. 137,000 179,705 163,030 2.13 MY E.G. Services Bhd. 48,000 108,842 102,720 1.34 Petronas Dagangan Bhd. 8,500 215,645 204,850 2.68

Sime Darby Bhd. 33,000 307,171 262,350 3.43

324,457 1,434,236 1,279,677 16.73

Total portfolio investment as at 31 March 2016 6,970,624 6,355,667 83.09

53

5. Cash and cash equivalents

2017 2016

RM RM Short term investments in a licensed financial institution

Commodity Murabahah 324,673 - Term Deposit-i Tawarruq * - 1,300,103 Cash at bank* 107,883 57,041

432,556 1,357,144

* Term Deposit-i Tawarruq and cash at bank is placed with Bank Islam Malaysia Berhad,

the holding company of the Manager.

6. Unitholders’ capital

No. of units RM

At 1 April 2015 63,707,317 16,088,950 Creation of units 632,793 135,810 Cancellation of units (27,861,583) (6,410,526)

As at 31 March 2016 36,478,527 9,814,234 Creation of units 251,487 53,225 Cancellation of units (9,401,034) (1,928,933)

As at 31 March 2017 27,328,980 7,938,526

7. Manager’s fee

The manager’s fee payable to the Manager of the Fund is based on 1.50% (2016: 1.50%)

per annum of the net asset value of the Fund calculated on a daily basis.

8. Trustee’s fee

The trustee’s fee payable to the trustee of the Fund is based on 0.05% (2016: 0.05%) per

annum of the net asset value of the Fund calculated on a daily basis.

54

9. Tax expense

2017 2016

RM RM Tax expense - Current year - -

Reconciliation of effective tax expense

Net income/(loss) before taxation 392,198 (1,878,628)

Income tax using Malaysian tax rate @ 24% 94,128 (450,871) Non-assessable income (125,677) (99,745)

Non-deductible expenses 1,489 499,754 Restrictions on the tax deductible expenses for

unit trust funds

30,060

50,862

- -

10. Units held by related parties

The Manager and related parties of the Manager did not hold any unit in the Fund as at 31

March 2017 and 31 March 2016.

55

11. Transactions with related parties

Other than as disclosed in Note 5 of the financial statements, other transactions with related

parties are as follow:

Transactions from Balance as at 2017 2016 2017 2016

RM RM RM RM The Manager BIMB Investment Management

Berhad

- Amount due from Manager - - - 19,164 - Amount due to Manager - - - (49,147)

- Management fee 96,166 166,204 (7,780) (10,417)

Holding company of the Manager

Bank Islam Malaysia Berhad - Income from short term placements (1,543) (14,391)

- 1,300,103

Related company of the Manager

BIMB Securities Sdn. Bhd. - Sales 2,514,605 5,804,044 - - - Purchases 2,517,363 2,650,294 - -

- Brokerage fee 17,957 29,788 - -

The Trustee AmanahRaya Trustees Berhad

- Trustee fee 3,206 5,540 (259) (347)

56

12. Transactions with related and other stockbroking companies

Value of

trade

Percentage of total

trade Brokerage

Percentage of total

brokerage

fee RM % RM % 2017

RHB Investment Bank Berhad 5,350,205 12.52 18,990 12.49 BIMB Securities Sdn. Bhd.* 5,031,967 11.78 17,957 11.81 TA Securities Holdings Berhad 4,408,651 10.32 15,757 10.37

Kenanga Investment Bank Berhad 4,078,538 9.54 14,384 9.46 Hong Leong Investment Bank Berhad 3,854,514 9.02 13,487 8.87

MIDF Amanah Investment Bank Berhad 3,516,566 8.23 12,419 8.17 KAF Seagroatt & Campbell

Securities 2,820,506 6.60 10,201 6.71 Macquarie Capital Securities (Malaysia) Berhad 2,699,871 6.32 9,659 6.35

Maybank Investment Bank Berhad 2,639,183 6.17 9,413 6.19 Public Investment Bank Berhad 2,447,645 5.73 8,763 5.77 Others 5,884,012 13.77 20,990 13.81

42,731,658 100.00 152,020 100.00

2016 BIMB Securities Sdn. Bhd.* 8,454,338 14.44 29,788 14.85

RHB Investment Bank Berhad 8,230,223 14.06 28,686 14.30 TA Securities Holdings Berhad 7,814,134 13.35 27,247 13.58 Public Investment Bank Berhad 5,985,928 10.22 21,058 10.50

Hong Leong Investment Bank Berhad 5,914,533 10.10 20,478 10.21 Maybank Investment Bank Berhad 4,970,349 8.49 18,418 9.18

Kenanga Investment Bank Berhad 3,526,976 6.02 12,512 6.24 CIMB Investment Bank Berhad 3,074,421 5.25 11,993 5.98 MIDF Amanah Investment Bank

Berhad 3,044,729 5.20 10,665 5.32 AmInvestment Bank Berhad 2,958,035 5.05 10,726 5.34 Others 4,579,144 7.82 9,023 4.50

58,552,810 100.00 200,594 100.00

* Transactions with the related party have been entered into in the normal course of business

and have been transacted at arm’s length basis.

57

13. Management Expense Ratio (“MER”)

The management expense ratio for the financial year is 2.05% (2016: 1.99%). Management

expense ratio is the ratio of total fees and recovered expenses of the Fund expressed as a

percentage of the Fund’s average net asset value. It is a total management expenses

expressed as an annual percentage of the Fund’s average net asset value.

14. Portfolio Turnover Ratio (“PTR”)

The portfolio turnover ratio for the financial year is 3.33 times (2016: 2.75 times). It

represents the average of total acquisitions and disposals of the investments in the Fund for

the financial year over the average net asset value of the Fund calculated on a daily basis.

15. Financial instruments

15.1 Categories of financial instruments

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

(a) Financing and receivables (“F&R”); (b) Fair value through profit or loss (“FVTPL”); (c) Financial liabilities measured at amortised cost (“FL”).

Carrying

amount F&R/ (FL)

FVTPL

RM RM RM 2017 Financial assets

Quoted securities 5,485,399 - 5,485,399 Receivables 552,968 552,968 - Cash and cash equivalents 432,556 432,556 -

6,470,923 985,524 5,485,399

Financial liabilities Payables (305,745) (305,745) -

2016 Financial assets Quoted securities 6,355,667 - 6,355,667

Receivables 27,003 27,003 - Cash and cash equivalents 1,357,144 1,357,144 -

7,739,814 1,384,147 6,355,667

Financial liabilities Payables (91,126) (91,126) -

58

15. Financial instruments (continued)

15.2 Net gains and losses arising from financial instruments

2017 2016

RM RM

Net gains/(losses) on:

Fair value through profit or loss:

-Designated upon initial recognition

Realised 228,132 (1,678,822)

Unrealised 293,257 (13,241)

Financing and receivables 2,266 33,897

523,655 (1,658,166)

15.3 Financial risk management

The Fund has exposure to the following risks from its use of financial instruments:

Credit risk

Liquidity risk

Market risk

Investment risk

15.4 Credit risk

Credit risk is the risk of a financial loss to the Fund if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Fund’s exposure to credit risk arises principally from its receivables and cash and cash equivalents.

Risk management objectives, policies and processes for managing the risk

The Manager manages the credit risk by setting counterparty limits and undertaking credit evaluation to minimise the risk. The exposure to credit risk is monitored on an ongoing basis.

Exposure to credit risk

The Fund’s maximum credit risk exposure at the reporting date is represented by the respective carrying amounts of the relevant financial assets in the statement of financial position.

No financial assets carried at amortised cost were past due or impaired as at date of statement of financial position.

59


15.5 Liquidity risk

Liquidity risk is the risk that the Fund will not be able to meet its financial obligations

as they fall due. The Fund’s exposure to liquidity risk arises principally from its

various payables which are due within one year.

The Fund maintains sufficient level of liquid assets, after consultation with the

Trustee, to meet anticipated payments and cancellation of units by unitholders.

Liquid assets comprise cash and other instruments, which are capable of being

converted into cash within 7 days.

15.6 Market risk

Market risk is the risk that changes in market prices, such as profit rates and market

prices will affect the Fund’s financial position or cash flows.

Profit rate risk

The profit rate profile of the Fund’s significant profit-bearing financial instruments,

based on carrying amounts as at the end of reporting period was:

Effective

interest rate

per annum

2017

Effective interest rate

per annum

2016 % RM % RM Fixed rate instruments

Term Deposit-i Tawarruq - - 3.00 1,300,103 Commodity Murabahah 3.15 324,673 - -

Fair value sensitivity analysis for fixed rate instruments

The Fund accounts for the deposits with licensed financial institutions at amortised

cost. Therefore a change in profit rates at the end of the reporting year would not

affect profit or loss. The deposits with licensed financial institutions will mature within

1 month from the date of financial position.

Market price risk

Equity price risk arises from the Fund’s investments in quoted securities.


The Fund is restricted to invest in securities issued by any issuer of not more than

10% its net asset value. Under such restriction, the exposure risk to the securities of

any issuer is mitigated.

60


15.6 Market risk (continued)

Market price risk (continued)

Equity price risk sensitivity analysis

This analysis assumes that all other variables remain constant and the Fund’s equity

investments are positively correlated to each other. A 5% strengthening in the equity

prices at the end of the reporting year would have increased the net asset value and

unitholders’ fund by RM274,270 (2016: RM317,783). A 5% weakening in equity

prices would have had equal but opposite effect on the net asset value and

unitholders’ fund respectively.

15.7 Investment risk

Investments are bound by Deed and prospectus that govern the maximum securities

holdings and maximum liquid assets holdings.

Investment risks for equity funds consist primarily of market risk, specific stock risk

and liquidity risk. The mechanism employed to control investment risk for equity

funds is by placing acceptable stock limits.


The Manager has written policies and guidelines on risk management, which set out

the overall investment risks strategies and general risk management philosophies.

These processes monitor, measure and control risks associated with the business.

Matters relating to investment risks in respect of Funds portfolio are discussed during

the Investment Committee meetings of the Manager held at least 6 (2016: 6) times a

year.

15.8 Fair value of financial instruments

The carrying amounts of cash and cash equivalents, short term receivables and

payables approximate fair values due to the relatively short term nature of these

financial instruments.

61


15.8 Fair value of financial instruments (continued)

The table below analyses financial instruments carried at fair value and their carrying

amounts shown in the statement of financial position.

Fair value of financial instruments carried at

fair value

Carrying

Level 1 Level 2 Level 3 Total amount RM RM RM RM RM 2017

Financial assets Quoted securities 5,485,399 - - 5,485,399 5,485,399

2016 Financial assets Quoted securities 6,355,667 - - 6,355,667 6,355,667

Policy on transfer between levels

The fair value of an asset to be transferred between levels is determined as of the

date of the event or change in circumstances that caused the transfer.

Level 1 fair value

Level 1 fair value is derived from quoted price (unadjusted) in active markets for

identical financial assets or liabilities that the entity can access at the measurement

date.

Quoted equities

Quoted equities in Malaysia are valued at closing market prices quoted on the Bursa

Malaysia at the date of the statement of financial position, in accordance with the

Deed. Unrealised gain or loss is taken to statement of profit or loss and other

comprehensive income.

Level 2 fair value

Level 2 fair value is estimated using inputs other than quoted prices included within

Level 1 that are observable for the financial assets or liabilities, either directly or

indirectly.

Transfers between Level 1 and Level 2 fair values

There has been no transfer between Level 1 and 2 fair values during the financial

year (2016: no transfer in either direction).

62


15.8 Fair value of financial instruments (continued)

Level 3 fair value

Level 3 fair value is estimated using unobservable inputs for the financial assets and

liabilities.

16. Capital management

The Fund’s capital is represented by the unitholders’ fund in the statement of financial

position. The Manager of the Fund monitors the adequacy of capital on an ongoing basis.

There is no external capital requirement imposed on the Fund.

63

7.0 Corporate Directory

Manager

BIMB Investment Management Berhad

Registered Office Level 32, Menara Bank Islam, No. 22, Jalan Perak 50450, Kuala Lumpur

Business Office Level 19, Menara Bank Islam, No. 22, Jalan Perak

50450, Kuala Lumpur

Board of Directors

Khairul Kamarudin (Chairman - Non-Executive Non

Independent Director) Dato’ Ghazali Awang (Non-Executive Independent Director) Datuk Noripah Kamso (Non-Executive Independent Director)

Dr. Mohd Hatta Dagap (Non-Executive Independent Director) Malkiat Singh @ Malkit Singh Maan (Non-Executive Non Independent Director)

Najmuddin Mohd Lutfi (Chief Executive Officer)

Shariah Committee

Ustaz Dr. Ahmad Shahbari @ Sobri Salamon Ustaz Dr. Yusof Ramli Ustazah Dr. Asmak Ab. Rahman

Investment Committee

Khairul Muzamel Perera Abdullah (Chairman - Non Independent Member) Datuk Noripah Kamso (Independent Member) Darawati Hussain (Independent Member)

Audit Committee

Dato’ Ghazali Awang (Chairman - Independent Member)

Dr. Mohd Hatta Dagap (Independent Member) Malkiat Singh @ Malkit Singh Maan (Non-Executive Non Independent Member)

Company Secretaries

Aidil Haznul Zulkifli (MACS 01638)

Level 32, Menara Bank Islam, No. 22 Jalan Perak, 50450 Kuala Lumpur.

Norhidayati Mohamat Salim (MIA 27364) Level 32, Menara Bank Islam, No. 22, Jalan Perak, 50450 Kuala Lumpur.

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Key Management

Najmuddin Mohd Lutfi (Chief Executive Officer)

Badrol Ahmad Fathan (Head of Investment) Azman Ali (Head of Compliance) Noor Rose Mona Aziz (Head of Finance and Operations)

Principal Banker

Bank Islam Malaysia Berhad Ground Floor, Menara Bank Islam

No. 22, Jalan Perak 50450 Kuala Lumpur

Trustee

AmanahRaya Trustee Berhad (766894-T) 11

th Floor, Wisma AmanahRaya

No. 2, Jalan Ampang 50508 Kuala Lumpur

Auditors

KPMG Desa Megat PLT (LLP0010082-LCA & AF 0759) Level 10, KPMG Tower

8, First Avenue, Bandar Utama 47800 Petaling Jaya, Selangor

Federation of

Investment Managers Malaysia (FIMM)

19-06-1, 6th Floor, Wisma Tune

No.19, Lorong Dungun Damansara Heights 50490 Kuala Lumpur

Distributors

Bank Islam Malaysia Berhad Branches

IFast Capital Sdn Bhd Phillip Mutual Berhad Johor Bharu Agency Office

Bank Simpanan Nasional Berhad Registered Unit Trust Consultant with BIMB Investment Management Berhad

Toll Free Number: 1-800-88-1196

ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 31 …...manager: bimb investment management berhad...

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Transcript of ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 31 …...manager: bimb investment management berhad...