AMB Dana Ikhlas

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ANNUAL REPORT

AMB DANA IKHLAS

For the Financial Year Ended 30 November 2017

Contents Page

Manager‟s Report 2-13

Laporan Pengurus 14-26

Trustee‟s Report 27

Statement by Manager 28

Report of the Shariah Committee 29

Auditors‟ Report 30-33

Statement of Comprehensive Income 34-35

Statement of Financial Position 36

Statement of Changes in Equity 37

Statement of Cash Flows 38

Notes to the Financial Statements 39-66

Corporate Information 67

AMB Dana Ikhlas

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MANAGER’S REPORT

AMB DANA IKHLAS

Dear Unit Holders,

Amanah Mutual Berhad (AMB), as the Manager of AMB Dana Ikhlas (“AMBDI” or “the

Fund”), is pleased to present the Manager‟s Report of AMBDI for the financial year

ended 30 November 2017.

1. CATEGORY / TYPE

Balanced Fund / Income and Growth Fund (Shariah)

2. INVESTMENT OBJECTIVE

The investment objective of AMBDI is to attain a mix of regular income stream

and possible capital growth via investments in Shariah-compliant listed equities,

sukuk and other assets that are permissible under the Shariah Principles.

3. ASSET ALLOCATION

Minimum 40% to maximum 58% in Shariah-compliant equities.

Minimum 40% to maximum 58% in sukuk and Shariah-compliant money market

instruments.

Minimum 2% in Shariah-compliant liquid assets.

4. PERFORMANCE BENCHMARK

A combination of:

50% of the FTSE Bursa Malaysia EMAS Shariah Index (FBMS Index) and

50% of the Maybank 12 months General Investment Account-i (GIA-i) tier 1 rate

Note:

Prior to 17 September 2017, the benchmark was a combination of 50% of the FBM EMAS

Shariah Index and 50% of the 12-month GIA rates of commercial banks.

5. LAUNCH DATE / COMMENCEMENT DATE

17 September 2002 / 8 October 2002

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6. FUND DISTRIBUTION POLICY

Income distribution, if any, is declared at the end of the financial year of the Fund

or for any specified period, as may be determined by the Manager subject to the

approval from the trustee. Any distribution declared, if any, will be reinvested as

additional units without sales charge.

7. UNIT HOLDING STATISTICS

Breakdown of unit holdings by size as at 30 November 2017 are as follows:

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

No. % Units %

5,000 and below 718 45.65 1,748,404 3.85

5,001 to 10,000 243 15.45 1,815,740 4.00

10,001 to 50,000 482 30.64 11,530,827 25.38

50,001 to 500,000 125 7.94 13,914,964 30.63

500,001 and above 5 0.32 16,417,571 36.14

TOTAL 1,573 100.00 45,427,506* 100.00

* Excludes units kept by the Manager.

8. FUND PERFORMANCE

For Financial Year As at

30/11/2017

As at

30/11/2016

As at

30/11/2015

Total net asset value (NAV) (RM„000) 24,666 25,128 31,799

Units in circulation („000) 45,448 47,553 59,433

Unit NAV (RM)

NAV per unit (ex-date) 0.5427 0.5284 0.5350

NAV per unit (highest) 0.5553 0.5521 0.5633

NAV per unit (lowest) 0.5286 0.5251 0.5104

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9. INVESTMENT PORTFOLIO

Sector

As at

30/11/2017

%

As at

30/11/2016

%

As at

30/11/2015

%

Quoted Equity Securities

Construction 7.82 5.47 3.83

Consumer Products 2.23 Nil 3.46

Finance 0.52 0.99 1.17

Industrial Products 7.38 7.64 6.65

Infrastructure Project Company 1.05 5.16 4.54

Plantations 6.61 4.66 4.58

Properties 2.04 0.07 0.94

Rights Issue 0.06 Nil Nil

Trading/Services 27.35 20.07 26.06

Warrants 0.09 Nil Nil

Total Quoted Equity Securities 55.15 44.06 51.23

Banks 8.15 11.94 9.48

Conglomerate 4.11 3.93 Nil

Financial Services Nil Nil 20.51

Plantations 8.19 Nil Nil

Power 10.08 13.79 3.15

Real Estate 12.65 12.30 9.64

Total Unquoted Sukuk 43.18 41.96 42.78

Cash 1.67 13.98 5.99

TOTAL 100.00 100.00 100.00

Note: The abovementioned percentages are based on total NAV at the end of the

financial year.

Ratings % Sukuk Portfolio

As at 30/11/2017

AAA 41.69

AA2 37.82

AA3 18.96

*BB3 1.53

TOTAL 100.00

*Non-investment grade sukuk issued by Talam Transform Berhad (formerly known as Trinity

Corporation Berhad) (arising from defaulted sukuk in previous years).

Rating Agency: RAM/MARC

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10. PERFORMANCE DATA

10.1 Average Total Return per Annum of AMBDI against Benchmark

Period Average Total Return per Annum (%)

AMBDI *Benchmark

One year 4.60 5.94

Three years 1.18 1.54

Five years 4.27 3.31

Since commencement 5.52 5.56

Source: Lipper

*Benchmark: 50% of the FBMS Index and 50% of the Maybank 12-months GIA-i tier 1

rate.

Note:

Annualised Return (Average Total Return per Annum) (%)

= [{(1+r1) (1+r2)...…(1+rn)}1/n - 1] x 100

Where r = rate of return, n = number of years

10.2 Annual Total Returns of AMBDI for the Last Five Financial Years

For Financial Year As at

30/11/17

As at

30/11/16

As at

30/11/15

As at

30/11/14

As at

30/11/13

Capital return (%) 2.71 (1.23) (3.59) (0.68) 4.29

Income return (%) 1.89 1.87 2.00 7.16 7.47

Total return of AMBDI (%) 4.60 0.64 (1.59) 6.48 11.76

Total return of

*benchmark (%) 5.94 (1.85) (1.57) 2.57 11.31

Source: Lipper

*Benchmark: 50% of the FBMS Index and 50% of the Maybank 12-months GIA-i tier 1 rate.

Note:

1. Capital Return (%) = NAV per unit on ex-date

NAV per unit at the beginning of the

financial year

-1 x 100

2. Income Return(%) = Gross income distribution declared

NAV per unit at the beginning of the

financial year

x 100

3. Total Return (%) = Capital Return (%) + Income Return (%)

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

and investment returns may go down as well as up.

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10.3 Income Distributions for the Financial Year

For Financial Year As at

30/11/2017 As at

30/11/2016 As at

30/11/2015

Net income distributed (RM„000) 454 476 660

Distribution (sen) per unit

Gross 1.00 1.00 1.11

Net 1.00 1.00 1.11

Yield (%) 1.89 1.87 2.00

Distribution date 30/11/2017 30/11/2016 30/11/2015

10.4 Impact on NAV Arising from Distribution

For Financial Year RM per unit

NAV before distribution as at 30 November 2017 0.5527

Less: Distribution of 1.00 sen per unit (gross) ;

1.00 sen per unit (net) 0.0100

NAV per unit after Distribution 0.5427

10.5 Other Data

For Financial Year As at

30/11/2017 As at

30/11/2016 As at

30/11/2015

Management expense ratio (MER) (%)

1.65 1.63 1.54

Portfolio turnover ratio (PTR) (times)

0.78 0.89 1.22

Note:

MER

The MER is the ratio of the sum of fees and expenses incurred by the Fund for the

financial year to the average NAV of the Fund calculated on a daily basis.

PTR

The PTR is the ratio of average acquisitions and disposals of the Fund for the financial

year to the average NAV of the Fund calculated on a daily basis.

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11. PERFORMANCE REVIEW

AMBDI has met the Fund‟s investment objective during the period under review. During the period, AMBDI registered a total return of 4.60% against its benchmark‟s return of 5.94%, thus underperformed the benchmark by 1.34%.

The NAV per unit of AMBDI increased to RM0.5527 as at 30 November 2017 from RM0.5284 as at 30 November 2016. On 30 November 2017, AMBDI declared gross income distribution of 1.00 sen per unit (net: 1.00 sen per unit). The NAV decreased accordingly to RM0.5427.

Performance of AMBDI for One Year Period (30 November 2016 to 30 November 2017)

Source: Lipper

*Benchmark: 50% of the FBMS Index and 50% of the Maybank 12-months GIA-i tier 1 rate.

For the last five financial years, AMBDI registered a compounded return of 23.28% while the benchmark‟s compounded return was 16.28% for the same period. AMBDI outperformed the benchmark by 7.00% over the 5-year period.

Performance of AMBDI for the Last Five Financial Years (30 November 2012 to 30 November 2017)

Source: Lipper

*Benchmark = 50% of the FBMS Index and 50% of the Maybank 12-months GIA-i tier 1 rate.

*Benchmark: 5.94%

AMBDI: 4.60%

AMBDI: 23.28%

*Benchmark: 16.28%

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12. EQUITY MARKET REVIEW (1 December 2016 – 30 November 2017)

The FTSE Bursa Malaysia EMAS Shariah Index (FBMS) rose 994.01 points or 8.41% to

12,920.15 points since 1 December 2016 up to 30 November 2017.

The FBMS rallied in the first quarter of 2017 (1Q17) driven by net foreign inflows of

RM5.7 billion during the quarter and corporate news on GLC restructuring. The

FBMS continued to gain in April 2017 driven by inflows from foreign funds. In their

second series of initiatives to develop the onshore financial market, Bank Negara

Malaysia (BNM) is allowing all residents to participate in short-selling activities and

registered non-bank entities to fully hedge their underlying assets with effect from

2 May 2017.

After a dip in May and July 2017, the FBMS rose by 0.25% in August 2017 and by

0.38% in September 2017 despite the geopolitical tension in Korea and net selling

by foreign institutions. The FBMS continued to prove resilient in absorbing negative

shocks despite the rise of external uncertainties.

In October 2017, the FBMS outperformed the FTSE Bursa Malaysia KLCI Index (FBM

KLCI), rising 2.23% versus a fall of 0.44% for the latter. In November 2017, the FBMS

fell 162.57 points or 1.24% to 12,920.15 points. Net foreign inflows are RM9.37 billion

compared with RM3.2 billion outflows in 2016.

13. FIXED INCOME SECURITIES AND MONEY MARKET REVIEW

(1 December 2016 – 30 November 2017)

During the period under review, bonds rallied after the massive selloff post US

election and intensified when Bank Negara Malaysia (BNM) signaled some

normalisation to its monetary policy. The first big rally came in April 2017 in the

short end of the curve. This was driven by strong buying interest from local and

some foreign investors following the announcement by BNM to allow flexibility on

currency trading on the onshore market. During the month, BNM unveiled a four-

prong measure to 1) promote a fair and effective financial market, 2) improve

liquidity in the bond market, 3) provide additional foreign exchange flexibility and

4) strengthen the financial market infrastructure. Under the second prong to

improve liquidity, BNM allowed wider but regulated short-selling of Malaysian

government bonds to all resident entities.

The second rally came later in the period under review. BNM implied that any

adjustment to its monetary policy would be “normalising” rather than tightening,

as BNM prepares the market for possible higher interest rates in 2018. The possible

interest rate hike saw foreign flows coming into the Malaysia Government

Securities (MGS) market to profit from the predicted appreciation of the MYR

against other currencies.

With a sizeable maturity of government bonds totaling RM66.8 billion, the gross

MGS/GII supply in 2018 is estimated to be relatively stable at RM106.6 billion (2017:

RM107.1 billion).

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14. STRATEGY EMPLOYED BY PORTFOLIO MANAGER FOR THE PERIOD UNDER REVIEW

(1 December 2016 – 30 November 2017)

For equity portion of the portfolio, we raised the Fund‟s exposure in the

Construction sector (Sunway Construction Group Berhad, Kimlun Corporation

Berhad and Econpile Holdings Berhad), Consumer sector (Padini Holdings

Berhad), Industrial Product sector (Kossan Rubber Industries Berhad, Pecca Group

Berhad and Petronas Chemicals Group Berhad) and Trading Services sector

(Tenaga Nasional Berhad and Sime Darby Berhad). In turn, we cut the Fund‟s

exposure in the Telecommunications sector (Digi.com Berhad and Lingkaran

Trans Kota Holdings Berhad), and Finance sector (BIMB Berhad).

The Technology and Consumer Goods sector outperformed whereas

unfavourable sectors were Telecommunications, Oil & Gas and Construction.

Stocks that outperformed include Gamuda, Litrak and Sapura Energy while stocks

that detracted from performance were E.A. Techniques (M) Berhad, Dayang

Enterprise Holdings Berhad and WCT Holdings Berhad.

For the sukuk portion of the portfolio, we maintained a lower portion of sukuk in

the portfolio compared to equities as an expectation that equities will outperform

sukuk as Malaysia continued to sustain its economic growth. The overall sukuk

holdings had a longer duration than the benchmark with holdings of the portfolio

mainly in the corporate sector to benefit from the yield pickup. We also preferred

to hold corporate sukuk as the MGS/GII sector had a much higher foreign holder

concentration compared to corporate sukuk and thus more vulnerable to sell-offs

due to flights of capital from the region.

We were mainly invested in real estate, plantations and power sectors which

were rated between AAA and AA by rating agencies. The portfolio decreased

exposure in Aman Sukuk Berhad and Imtiaz Sukuk II Berhad while having

increased exposure in Bumitama Agri Ltd. The sukuk with the highest returns from

coupon were corporate bonds issued by UMW Holdings Berhad, Sarawak Hidro

Sdn Berhad, and Aman Sukuk Berhad.

The asset allocation of portfolio for the period under review is as follows:

Asset Allocation in Portfolio

As at

30 November 2017

As at

30 November 2016

RM % RM %

Quoted equity securities 13,602,638 52.16 11,070,367 43.84

Unquoted sukuk 10,650,405 40.84 10,543,716 41.75

Cash and Mudharabah deposits 1,824,139 7.00 3,639,773 14.41

TOTAL 26,077,182 100.00 25,253,856 100.00

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15. ECONOMIC REVIEW AND OUTLOOK

The International Monetary Fund (IMF) had revised 2017‟s global growth estimate

to 3.6% from 3.5% estimated in July 2017 and April 2017(2016: 3.2%). The IMF is

projecting faster growth for 2018 of 3.7% from the 3.6% previously projected.

The United States (US) economy recorded 3.3% quarter-on-quarter (qoq)

annualised growth in third quarter 2017 (3Q17) from 3.1% and 1.2% qoq in first

quarter 2017 (1Q17) and second quarter 2017 (2Q17) respectively. Consensus

expects the economy to grow by 2.7% in fourth quarter 2017 (4Q17). Inflation rate

in October 2017 is lower at 2% from 2.2% in September 2017 due to a drop in

energy prices. Meanwhile, tax reform is underway with the tax bill having recently

passed by the Senate. The next course is for a committee to finalise the

differences between the House and Senate versions of the tax bill which includes

the timing of the corporate tax cut – if this should come in 2019 (as per Senate‟s

version) instead of 2018, the impact to US budget deficit will be minimised but will

only be a boost to economic growth in 2019. Growth forecasts: Federal Reserve

(2017: 2.4%, 2018: 2.1%), IMF (2017: 2.2%, 2018: 2.3%).

In the Eurozone, economic recovery continues to be supported by sustained

consumption amidst firm global demand. While consumption is expected to

continue doing the heavy lifting, exports performance is expected to still be

supported by firming global demand. Consumer price index (CPI) rose to 1.5% in

November 2017 from 1.4% previously. Meanwhile, Brexit discussion will continue as

it nears its expiry date by March 2019. Although it has been eight months since

Article 50 was triggered, talks between the United Kingdom and European Union

still carry little development. Growth forecasts: European Central Bank (2017:

2.2%, 2018: 1.8%), IMF (2017: 2.1%, 2018: 1.9%).

Japan‟s economy grew by 2.5% on an annualised qoq basis in 3Q17 after having

expanded by 2.9% in 2Q17, benefitting from higher external demand despite

lacklustre domestic demand. In October 2017, Japan‟s overall CPI growth

decelerated to 0.2% year-on-year (yoy) after growing at 0.7% in both August and

September 2017. Exports expanded by 14% yoy following the 14.1% yoy increase

in September 2017 while imports grew by 18.9% yoy following September‟s

increase of 12.1% yoy. Trade surplus narrowed to JPY285 billion from JPY664 billion

previously. Meanwhile, the Bank of Japan (BOJ), had maintained its monetary

policy stance on 31 October 2017. Given inflation expectation of below 2% for

2018, the current degree of monetary policy easing is expected to remain on the

table. Growth forecasts: BOJ (2017: 1.9%, 2018: 1.4%), IMF (2017: 1.5%, 2018: 0.7%).

Consensus still views China to grow above 6% in 2018 and even 2019. Factors that

could support economic growth going forward may include resilient

consumption, expansionary business surveys and unrelenting commitment

towards achieving financial stability. In October 2017, exports grew by 6.9% yoy

while imports grew by 17.2% yoy. China‟s exports still stands to benefit from

improving economic growth in the US, European, as well as Asian economies.

Growth forecasts: IMF (2017: 6.8%, 2018: 6.5%), World Bank (2017: 6.7%, 2018: 6.4%).

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Malaysia‟s economy continued to expand significantly by 6.2% yoy in 3Q17 from

5.8% in 2Q17. Domestic demand grew by 6.7% yoy in 3Q17 from 5.7% yoy in 2Q17

given the stronger private and public sector expansions. On the supply side,

manufacturing and services sectors remained key growth drivers in 3Q17. In 4Q17,

exports growth re-accelerated to 18.9% yoy from 14.8% in September 2017.

Healthy exports trend during the first 10 months of 2017 allowed trade balance to

retain its surplus position at RM80.2 billion from RM70.1 billion in January – October

2016. Meanwhile, CPI eased to 3.7% yoy in October 2017 (September 2017: +4.3%

yoy) following the weaker rise in transport cost during the month. Inflation

averaged 4.0% yoy for January until October 2017 at the higher end of the 3.0-

4.0% official for the entire 2017. Nevertheless, BNM is expected to raise the

benchmark overnight policy rate (OPR) by 25 basis points to 3.25% in 2018.

In mid-December 2017, the MSCI Asia Ex-Japan surged by 35.3%, followed by the

MSCI Europe with 20.1% and the MSCI World by 18.6%. For the ASEAN stock

market, Philippines‟ PCOMP Index rose 21.7% yoy to end at 8254.0 while the

Singapore‟s STI Index gained by 18.2% yoy to close at 3433.5. Meanwhile,

Indonesia‟s JCI and Thailand‟s SET Indices rose by 15.6% yoy (end at 5952.1) and

12.4% yoy (end at 1697.4) respectively. However, the FBM KLCI had recorded a

gain of 6.1% yoy to finish at 1717.9. Analysts agree that while the recent strong

economic numbers are positive (3Q17 GDP: 6.2% yoy; 3Q17 current account

growth: 72.4% yoy), general election uncertainties are putting pressure on the

local market. For the fourth consecutive month, foreign investors remained as net

sellers of the local bourse selling a total of RM100.0 million in November 2017 after

RM230.7 million net equities sold in the preceding month. Market consensus

expects the FBM KLCI to close at 1802 at the end of 2017 within the range of 1725-

1890, up from the closing 1641.7 as at 30 December 2016.

16. INVESTMENT STRATEGY GOING FORWARD

Equity

As corporate earnings growth is more evenly distributed in 2018, we think equity

returns would come from a broader number of sectors, especially economically

sensitive one like financials, materials, consumer discretionary and industrials.

Some tech names could also continue to do well because of their sheer scale.

Low growth, yield names may underperform as risk free rates gradually rise.

We remain positive on the market and will continue to buy on dips on the back of

7% expected earnings growth. We continue to focus on our key broad themes,

with specific focus within each theme – construction (infrastructure plays and

affordable housing); e-commerce/logistics (e-fulfillment hub angle and online

payment); Chinese tourism (airport, airline, consumer products); consumer sector

(discretionary, durables, personal financing) and technology (smart factory in a

rising cost environment, connectivity).

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Fixed Income

The net government bond/sukuk issuance size for 2018 will be in the range of

RM40 billion (similar in 2017). Gross issuance for 2018 will be around MYR107 billion

matching 2017 estimated gross issuances. The market expects BNM to target

longer duration issuances to keep the maturity profile at a manageable level and

see similar type of tenor as seen in 2017. Similar private placements arrangements

may be executed for government bonds/sukuk auctions in 2018 to support

bond/sukuk yields. We expect more primary issuances before year end which will

keep corporate bond/sukuk yields elevated.

We continue to overweight corporate sukuk and remain selective as downgrades

and defaults in the credit market may potentially increase.

17. SIGNIFICANT CHANGES ON STATE OF AFFAIRS OF AMBDI

There are no significant changes on state of affairs of AMBDI during the period

under review.

18. CIRCUMSTANCES THAT MATERIALLY AFFECT ANY INTERESTS OF THE UNIT HOLDERS

AMB and AMBDI have no circumstances that materially affect any interests of the

unit holders.

19. CHANGES TO THE DEED OF THE FUND

The Fund‟s deed dated 25th day of October 2000 (and as amended via

supplemental deeds) (“Deed”), has been further amended by way of a Fifth

Supplemental Deed dated 13 January 2017 (“Supplemental Deed”) (collectively,

“Principal Deed”). The amendments made to the Principal Deed were to, among

others, standardise and update the provisions of the Deed in accordance with

the Guidelines on Unit Trust Funds issued by the Securities Commission Malaysia.

Details of the changes to the provisions in the Principal Deed are provided in our

website at www.ambmutual.com.my.

20. CHANGES TO THE SWITCHING CHARGES

There are changes to the switching charges in the latest master prospectus (Shariah funds) dated 17 September 2017 which is available at www.ambmutual.com.my.

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21. POLICY ON SOFT COMMISSIONS RECEIVED FROM BROKERS

During the financial period under review, AMB did not receive any soft

commissions from brokers and/or any related body corporate in relation to its

investment of AMBDI.

However, the Portfolio Manager has subscribed but not limited to the goods and

services which are demonstrably beneficial to unit holders such as financial wire

services and stock quotations system incidental to investment of AMBDI.

The Manager

AMANAH MUTUAL BERHAD

AMB Dana Ikhlas

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LAPORAN PENGURUS

AMB DANA IKHLAS

Para pemegang unit amanah yang dihormati,

Amanah Mutual Berhad (AMB), sebagai Pengurus AMB Dana Ikhlas (“AMBDI” atau

“Dana”), dengan sukacitanya membentangkan Laporan Pengurus AMBDI untuk

tempoh enam bulan berakhir 31 November 2017.

1. KATEGORI / JENIS

Seimbang / Pendapatan dan Pertumbuhan (Shariah)

2. MATLAMAT PELABURAN

Matlamat pelaburan AMBDI adalah untuk memperoleh aliran pendapatan tetap

dan pertumbuhan modal melalui pelaburan dalam ekuiti yang tersenarai,

instrumen hutang dan aset-aset lain yang mematuhi prinsip-prinsip Shariah.

3. PERUMPUKAN ASET

Minimum 40% sehingga maksimum 58% dalam ekuiti patuh Shariah.

Minimum 40% sehingga maksimum 58% dalam Sukuk dan instrumen pasaran

wang patuh-Shariah.

Minimum 2% dalam aset mudah tunai patuh-Shariah.

4. PENANDA ARAS DANA

Satu kombinasi yang terdiri daripada:

50% Indeks FBM EMAS Shariah; dan

50% kadar 12-bulan Akaun Pelaburan Am-i (GIA-i) paras1 Maybank.

5. TARIKH PELANCARAN / TARIKH PELABURAN

17 September 2002 / 8 Oktober 2002

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6. DASAR PENGAGIHAN

Pengagihan pendapatan, sekiranya ada, dijangka akan diagihkan setiap tahun

mengikut budi bicara Pengurus, tertakluk kepada kelulusan Pemegang Amanah.

Jumlah pengagihan mungkin berbeza bergantung kepada prestasi Dana dan

keadaan lazim ekonomi. Sebarang pengagihan yang diisytiharkan adalah

berdasarkan kepada pegangan unit-unit pada tarikh kelayakan dan akan

dilaburkan semula sebagai unit-unit tambahan.

7. PERANGKAAN PEGANGAN UNIT

Pecahan pegangan unit mengikut saiz sehingga 30 November 2017 adalah

seperti berikut:

Saiz Pegangan Bilangan Pemegang Unit Bilangan Pegangan Unit

Bilangan % Unit %

5,000 dan bawah 718 45.65 1,748,404 3.85

5,001 hingga 10,000 243 15.45 1,815,740 4.00

10,001 hingga 50,000 482 30.64 11,530,827 25.38

50,001 hingga 500,000 125 7.94 13,914,964 30.63

500,001 dan ke atas 5 0.32 16,417,571 36.14

JUMLAH 1,573 100.00 45,427,506* 100.00

*Tidak termasuk unit pegangan Pengurus.

8. PRESTASI DANA

Bagi Tempoh/Tahun

Kewangan

Pada

30/11/2017

Pada

30/11/2016

Pada

30/11/2015

Pada

30/11/2014

Jumlah nilai aset bersih (NAB)

(RM„000) 24,666 25,128 31,799 35,645

Unit dalam edaran („000) 45,448 47,553 59,433 64,288

NAB Unit (RM)

NAB seunit 0.5427 0.5284 0.5350 0.5949

NAB seunit (tertinggi) 0.5553 0.5521 0.5633 0.6054

NAB seunit (terendah) 0.5286 0.5251 0.5104 0.5584

AMB Dana Ikhlas

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9. PORTFOLIO PELABURAN

Sektor

Pada

30/11/17

%

Pada

30/11/16

%

Pada

30/11/15

%

Pada

30/11/14

%

Sekuriti Ekuiti Tersenarai

Pembinaan 7.82 5.47 3.83 7.37

Barangan Pengguna 2.23 Tiada 3.46 Tiada

Kewangan 0.52 0.99 1.17 1.63

Barangan Industri 7.38 7.64 6.65 1.12

Syarikat Projek Infrastruktur 1.05 5.16 4.54 7.70

Perladangan 6.61 4.66 4.58 1.05

Harta 2.04 0.07 0.94 6.57

Terbitan Hak 0.06 Tiada Tiada Tiada

Perdagangan/Perkhidmatan 27.35 20.07 26.06 30.75

Waran 0.09 Tiada Tiada Tiada

Jumlah Sekuriti Ekuiti Tersenarai 55.15 44.06 51.23 56.19

Perbankan 8.15 11.94 9.48 21.15

Konglomerat 4.11 3.93 Tiada Tiada

Pembinaan Tiada Tiada Tiada 7.05

Perkhidmatan Kewangan Tiada Tiada 20.51 12.71

Perladangan 8.19 Tiada Tiada Tiada

Janakuasa 10.08 13.79 3.15 8.58

Hartanah 12.65 12.30 9.64 Tiada

Jumlah Sukuk Tidak Tersenarai 43.18 41.96 42.78 42.46

Tunai 1.67 13.98 5.99 1.35

JUMLAH 100.00 100.00 100.00 100.00

Nota: Peratusan di atas adalah berdasarkan jumlah NAB pada akhir tempoh

kewangan.

Penarafan % Portfolio Sukuk

Pada 30/11/17

AAA 41.69

AA2 37.82

AA3 18.96

*BB3 1.53

JUMLAH 100.00

*Sukuk yang tiada gred pelaburan yang telah diterbitkan oleh Talam Transform Berhad

(dahulu dikenali sebagai Trinity Corporation Berhad)(hasil daripada sukuk mungkir-bayar

dari tahun-tahun sebelumnya).

Rating Agency: RAM/MARC

AMB Dana Ikhlas

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10. DATA PENCAPAIAN

10.1 Purata Jumlah Pulangan Tahunan AMBDI berbanding Penanda Aras

Tempoh Purata Jumlah Pulangan Tahunan (%)

AMBDI *Penanda Aras

Setahun 4.60 4.66

Tiga tahun 1.18 1.13

Lima tahun 4.27 3.06

Sejak ditubuhkan 5.52 5.47

Sumber: Lipper

*Penanda aras = 50% Indeks EMAS Shariah FBM dan 50% kadar 12-bulan Akaun

Pelaburan Am-i(GIA-i) paras1 Maybank. Nota:

Purata Jumlah Pulangan Tahunan (%)

= [{(1+r1) (1+r2)...…(1+rn)}1/n - 1] x 100

Di mana r = pulangan tahunan, n = bilangan tahun

10.2 Jumlah Pulangan Tahunan AMBDI Bagi Lima Tempoh Kewangan Lalu

Bagi Tempoh/Tahun

Kewangan

Pada

30/11/17

Pada

30/11/16

Pada

30/11/15

Pada

30/11/14

Pada

30/11/13

Pulangan modal (%) 2.71 (1.23) (3.59) (0.68) 4.29

Pulangan pendapatan (%) 1.89 1.87 2.00 7.16 7.47

Jumlah pulangan AMBDI (%)

4.60 0.64 (1.59) 6.48 11.76

Jumlah pulangan

*penanda aras (%) 5.94 (1.85) (1.57) 2.57 11.31

Sumber: Lipper

*Penanda aras = 50% Indeks EMAS Shariah FBM dan 50% kadar 12-bulan Akaun

Pelaburan Am-I (GIA-i) paras1 Maybank.

Nota:

1. Pulangan Modal (%) = NAB seunit (selepas pengagihan)

NAB seunit pada awal tahun kewangan -1 x 100

2. Pulangan

Pendapatan (%) =

Pengagihan pendapatan kasar

NAB seunit pada awal tahun kewangan x 100

3. Jumlah Pulangan (%) = Pulangan Modal (%) + Pulangan Pendapatan (%)

Prestasi masa lalu bukanlah penentu prestasi masa depan dan harga-harga unit serta

pulangan pelaburan mungkin turun atau naik.

AMB Dana Ikhlas

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10.3 Pengagihan Pendapatan bagi Tempoh Kewangan

Bagi Tempoh/Tahun

Kewangan

Pada

30/11/2017

Pada

30/11/2016

Pada

30/11/2015

Pada

30/11/2014

Pengagihan Pendapatan

(RM)(„000) 454 476 660 2,571

Pengagihan (sen)

Kasar 1.00 1.00 1.11 4.00

Bersih 1.00 1.00 1.11 4.00

Pulangan (%) 1.89 1.87 2.00 7.16

Tarikh Pengagihan 30/11/17 30/11/16 30/11/15 30/11/14

10.4 Data-data Lain

Bagi Tempoh/Tahun

Kewangan

Pada

30/11/17

Pada

30/11/16

Pada

30/11/15

Pada

30/11/14

Nisbah perbelanjaan

pengurusan (NPP) (%) 1.65 1.63 1.54 1.47

Nisbah pusing ganti portfolio

(NPGP) (kali) 0.78 0.89 1.22 1.45

Nota:

NPP

NPP adalah nisbah ke atas jumlah yuran dan perbelanjaan yang dikenakan ke

atas Dana dalam tempoh kewangan dibahagikan dengan purata NAB Dana

yang dikira secara harian.

NPGP

NPGP adalah nisbah ke atas purata pembelian dan penjualan yang dijalankan

oleh Dana dalam tempoh kewangan dibahagikan dengan purata NAB Dana

yang dikira secara harian.

AMB Dana Ikhlas

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11. KAJIAN PENCAPAIAN

AMBDI telah memenuhi objektif pelaburan Dana bagi tempoh dalam kajian.

Bagi tempoh berkenaan AMBDI mencatatkan pulangan sebanyak 4.60%

berbanding penanda banyak 5.94%, sekali gus menunjukkan pencapaian

Dana yang lebih rendah sebanyak 1.34%. NAB seunit AMBDI meningkat kepada RM0.5527 setakat pada 30 November 2017 daripada RM0.5284 pada 30 November 2016. Pada 30 November 2017, AMBDI mengumumkan pengagihan pendapatan kasar sebanyak 1.00 sen seunit (bersih: 1.00 sen seunit), justeru NAB berkurangan dengan sewajarnya kepada RM0.5427.

Pencapaian AMBDI Bagi Tempoh Satu Tahun (30 November 2016 sehingga 30 November 2017)

Sumber: Lipper

*Penanda aras = 50% Indeks EMAS Shariah FBM dan 50% kadar 12-bulan Akaun

Pelaburan Am-i (GIA-i) paras1 Maybank.

Bagi tempoh lima tahun kewangan yang lalu, AMBDI mencatatkan pulangan

terkumpul sebanyak 23.28% manakala pulangan yang diraih penanda aras pula

adalah 16.28% bagi tempoh yang sama. AMBDI mengatasi pencapaian

penanda aras sebanyak 7.00% dalam tempoh 5 tahun.

Pencapaian AMBDI Bagi Tempoh Lima Tahun Kewangan Terakhir

(30 November 2012 sehingga 30 November 2017)

Sumber: Lipper

*Penanda aras = 50% Indeks EMAS Shariah FBM dan 50% kadar 12-bulan Akaun

Pelaburan Am-I (GIA-i) paras1 Maybank.

AMBDI: 4.60%

*Penanda aras: 5.94%

AMBDI: 23.28%

*Penanda aras: 16.28%

AMB Dana Ikhlas

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12. ULASAN KE ATAS PASARAN EKUITI (1 Disember 2016 – 30 November 2017)

Indeks Syariah EMAS FTSE Bursa Malaysia (FBMS) meningkat 994.01 mata atau

8.41% kepada 12,920.15 mata bagi dari 1 Disember 2016 sehingga 30 November

2017.

FBMS melonjak pada suku pertama 2017 (S117) didorong oleh aliran masuk

pelaburan asing bersih sebanyak RM5.7 bilion pada suku tahun tersebut dan juga

berita korporat tentang penstrukturan semula GLC. FBMS terus meningkat pada

bulan April 2017 berikutan terdapat aliran masuk dana asing dalam pasaran.

Dalam inisiatif kedua yang dilakukan oleh Bank Negara membangunkan

pasaran kewangan tempatan, semua penduduk negara ini telah dibenarkan

menyertai aktiviti jualan singkat dan entiti bukan bank berdaftar dikehendaki

melindung nilai aset asas mereka sepenuhnya mulai 2 Mei 2017.

Selepas berlaku penurunan pada bulan Mei dan Julai 2017, FBMS meningkat

sebanyak 0.25% pada bulan Ogos 2017 dan 0.38% pada bulan September 2017

di sebalik berlakunya ketegangan geopolitik di Korea dan penjualan bersih oleh

institusi-institusi asing. FBMS terus membuktikan daya tahannya menyerap kejutan

negatif meskipun terdapat peningkatan faktor luaran yang tidak menentu.

Pada bulan Oktober 2017, FBMS mengatasi pencapaian Indeks KLCI FTSE Bursa

Malaysia (FBM KLCI) apabila meningkat 2.23% berbanding kejatuhan indeks

sebanyak 0.44%. Pada bulan November 2017, FBMS turun 162.57 mata atau 1.24%

kepada 12,920.15 mata. Aliran masuk pelaburan asing bersih adalah RM9.37

bilion, berbanding aliran keluar pelaburan asing sebanyak RM3.2 bilion pada

2016.

13. ULASAN KE ATAS SEKURITI PENDAPATAN TETAP DAN PASARAN WANG

(1 Disember 2016 – 30 November 2017)

Dalam tempoh kajian, pasaran bon meningkat selepas berlaku penjualan besar-

besaran pasca pilihan raya AS dan berlaku semakin pesat apabila Bank Negara

Malaysia (BNM) mengisyaratkan ada dasar monetari akan kembali seperti mana

biasa atau normal. Pergerakan menaik yang besar berlaku buat pertama kali

pada bulan April 2017 di akhir keluk yang pendek. Peningkatan itu didorong oleh

minat belian yang kukuh dari para pelabur tempatan dan asing berikutan

pengumuman oleh BNM untuk melonggarkan perdagangan mata wang dalam

pasaran (onshore) tempatan. Pada bulan ini, BNM melancarkan langkah-

langkah yang berupa serampang empat mata iaitu 1) mempromosikan pasaran

kewangan yang adil dan berkesan, 2) meningkatkan kecairan dalam pasaran

bon, 3) memberikan kelonggaran tambahan dalam pertukaran asing dan 4)

memperkukuh infrastruktur pasaran kewangan. Di bawah serampang kedua

untuk meningkatkan kecairan, BNM membenarkan jualan singkat bon kerajaan

Malayia dilakukan secara lebih luas tetapi terkawal kepada semua entiti

pemastautin.

AMB Dana Ikhlas

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Peningkatan kedua berlaku di akhir tempoh dalam kajian. BNM menyatakan

bahawa sebarang pelarasan terhadap dasar monetari itu akan

mengembalikannya kepada seperti mana asal atau normal dan bukan untuk

mengetatkannya, kerana BNM mahu pasaran bersedia dengan kemungkinan

kadar faedah yang lebih tinggi pada tahun 2018. Kemungkinan berlaku

kenaikan kadar faedah menyaksikan aliran dana asing memasuki pasaran

Sekuriti Kerajaan Malaysia (MGS) untuk meraih keuntungan daripada unjuran

peningkatan MYR berbanding mata wang lain.

Dengan sejumlah besar bon kerajaan yang matang berjumlah RM66.8 bilion,

bekalan MGS / GII kasar pada tahun 2018 dianggarkan agak stabil pada

RM106.6 bilion (2017: RM107.1 bilion).

14. STRATEGI PENGURUS PORTFOLIO DALAM TEMPOH KAJIAN

(1 Disember 2016 – 31 Mei 2017)

Dalam tempoh kajian, pasaran bon meningkat selepas berlaku penjualan besar-

besaran pasca pilihan raya AS dan berlaku semakin pesat apabila Bank Negara

Malaysia (BNM) mengisyaratkan ada dasar monetari akan kembali seperti mana

biasa atau normal. Pergerakan menaik yang besar berlaku buat pertama kali

pada bulan April 2017 di akhir keluk yang pendek. Peningkatan itu didorong oleh

minat belian yang kukuh dari para pelabur tempatan dan asing berikutan

pengumuman oleh BNM untuk melonggarkan perdagangan mata wang dalam

pasaran (onshore) tempatan. Pada bulan ini, BNM melancarkan langkah-

langkah yang berupa serampang empat mata iaitu 1) mempromosikan pasaran

kewangan yang adil dan berkesan, 2) meningkatkan kecairan dalam pasaran

bon, 3) memberikan kelonggaran tambahan dalam pertukaran asing dan 4)

memperkukuh infrastruktur pasaran kewangan. Di bawah serampang kedua

untuk meningkatkan kecairan, BNM membenarkan jualan singkat bon kerajaan

Malayia dilakukan secara lebih luas tetapi terkawal kepada semua entiti

pemastautin.

Peningkatan kedua berlaku di akhir tempoh dalam kajian. Gabenor BNM

menyatakan bahawa sebarang pelarasan terhadap dasar monetari itu akan

mengembalikannya kepada seperti mana asal atau normal dan bukan untuk

mengetatkannya, kerana BNM mahu pasaran bersedia dengan kemungkinan

kadar faedah yang lebih tinggi pada tahun 2018. Kemungkinan berlaku

kenaikan kadar faedah menyaksikan aliran dana asing memasuki pasaran

Sekuriti Kerajaan Malaysia (MGS) untuk meraih keuntungan daripada unjuran

peningkatan MYR berbanding mata wang lain.

Dengan sejumlah besar bon kerajaan yang matang berjumlah RM66.8 bilion,

bekalan MGS / GII kasar pada tahun 2018 dianggarkan agak stabil pada

RM106.6 bilion (2017: RM107.1 bilion).

Perumpukan aset dalam portfolio dalam tempoh kajian adalah seperti jadual di

bawah:

AMB Dana Ikhlas

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Perumpukan Aset Dalam

Portfolio Pelaburan

Pada

30 November 2017

Pada

30 November 2016

RM % RM %

Sekuriti Ekuiti Tersenarai 13,602,638 52.16 11,070,367 43.84

Sukuk Tidak Tersenarai 10,650,405 40.84 10,543,716 41.75

Tunai dan Deposit Mudharabah 1,824,139 7.00 3,639,773 14.41

JUMLAH 26,077,182 100.00 25,253,856 100.00

15. ULASAN EKONOMI MASA LALU DAN MASA HADAPAN

Dana kewangan antarabangsa (IMF) telah menyemak semula unjuran

pertumbuhan global bagi tahun 2017 kepada 3.6% daripada 3.5% unjuran yang

dibuat pada bulan Julai 2017 dan April 2017 (2016: 3.2%). IMF menjangkakan

pertumbuhan ekonomi lebih pantas bagi tahun 2018 iaitu sebanyak 3.7%

berbanding unjuran 3.6% sebelum ini.

Ekonomi Amerika Syarikat (AS) telah merekodkan pertumbuhan tahunan

sebanyak 3.3% pada suku ketiga 2017 (S317) berbanding masing-masing

sebanyak 3.1% pada suku pertama 2017 (S117) dan 1.2% pada suku kedua 2017

(S217). Pendapat secara konsensus menjangkakan ekonomi Negara ini

berkembang sebanyak 2.7% pada suku keempat 2017 (S417). Kadar inflasi pada

bulan Oktober 2017 berada pada paras 2% daripada 2.2% pada September

2017 berikutan berlaku kejatuhan harga tenaga atau minyak mentah.

Sementara itu, pembaharuan cukai sedang dijalankan dengan rang undang-

undang cukai baharu telah diluluskan oleh Senat baru-baru ini. Langkah

seterusnya adalah untuk sebuah jawatankuasa memuktamadkan perbezaan

rang undang-undang itu antara versi Dewan Perwakilan dan Senat termasuk

tarikh pemotongan cukai korporat – sama ada pada tahun 2019 (seperti versi

Senat) dan bukannya 2018, kesannya kepada defisit belanjawan AS akan dapat

diminimumkan tetapi akan hanya menggalakkan pertumbuhan ekonomi pada

tahun 2019. Ramalan pertumbuhan: Rizab Persekutuan (2017: 2.4%, 2018: 2.1%),

IMF (2017: 2.2%, 2018: 2.3%).

Di zon Euro, pemulihan ekonomi terus disokong oleh penggunaan yang berlaku

secara berterusan di tengah-tengah permintaan global yang teguh. Meskipun

penggunaan dijangka kekal memainkan peranannya yang utama, prestasi

eksport bakal terus disokong oleh permintaan global yang kukuh. Indeks harga

pengguna (IHP) meningkat kepada 1.5% pada bulan November 2017 daripada

1.4% pada sebelum ini. Sementara itu, perbincangan Brexit akan diteruskan

kerana tarikh luputnya pada bulan Mac 2019 semakin dekat. Walaupun lapan

bulan telah berlalu sejak Artikel 50 dicetuskan, perbincangan antara United

Kingdom dengan Kesatuan Eropah masih menunjukkan perkembangan yang

kecil. Ramalan Pertumbuhan: Bank Pusat Eropah (2017: 2.2%, 2018: 1.8%), IMF

(2017: 2.1%, 2018: 1.9%).

AMB Dana Ikhlas

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Ekonomi Jepun meningkat sebanyak 2.5% pada asas tahunan berdasarkan

perbandingan sukuan tahun pada S317 selepas berkembang sebanyak 2.9%

pada S217, mendapat manfaat daripada permintaan luar yang lebih tinggi

meskipun permintaan domestiknya lemah. Pada bulan Oktober 2017,

pertumbuhan CPI Jepun secara keseluruhannya berkurangan kepada 0.2%

berdasarkan perbandingan tahunan selepas berkembang 0.7% pada bulan

Ogos dan September 2017. Eksport berkembang sebanyak 14% berdasarkan

perbandingan tahunan berikutan berlaku kenaikan 14.1% pada bulan

September 2017 manakala import meningkat sebanyak 18.9% dalam

perbandingan yang sama selepas peningkatan pada bulan September

sebanyak 12.1% tahun. Lebihan dagangan mengecil kepada JPY285 bilion

daripada JPY664 bilion sebelumnya. Sementara itu, Bank of Japan (BOJ),

mengekalkan pendiriannya dalam dasar monetarinya pada 31 Oktober 2017.

Dengan jangkaan inflasi berada di bawah 2% bagi tahun 2018, tahap

kelonggaran dasar monetari dijangka dalam pertimbangan. Ramalan

pertumbuhan: BOJ (2017: 1.9%, 2018: 1.4%), IMF (2017: 1.5%, 2018: 0.7%).

Ekonomi China secara konsensusnya masih dilihat akan berkembang melebihi 6%

pada tahun 2018 dan begitu juga pada tahun 2019. Faktor-faktor yang

menyokong pertumbuhan ekonomi dalam tempoh yang mendatang mungkin

termasuk tahap penggunaan yang berdaya tahan, kajian pengembangan

perniagaan dan komitmen berterusan ke arah mencapai kestabilan kewangan.

Pada bulan Oktober 2017, eksportnya berkembang sebanyak 6.9% berdasarkan

perbandingan tahunan sementara import pula meningkat 17.2%. Eksport China

masih menerima manfaat daripada peningkatan pertumbuhan ekonomi di

Amerika Syarikat, Eropah, dan juga ekonomi negara-negara di Asia. Ramalan

pertumbuhan: IMF (2017: 6.8%, 2018: 6.5%), Bank Dunia (2017: 6.7%, 2018: 6.4%).

Ekonomi Malaysia terus berkembang dengan ketara sebanyak 6.2% berdasarkan

perbandingan tahun ke tahun pada S317 daripada 5.8% pada S217.

Berdasarkan perbandingan tahunan, permintaan dalam negeri meningkat

sebanyak 6.7% pada S317 daripada 5.7% pada S217 berikutan pengembangan

dalam sektor swasta dan awam yang lebih kukuh. Dari segi penawaran, sektor

perkilangan dan perkhidmatan kekal menjadi pemacu pertumbuhan utama

pada S317. Pada S417, pertumbuhan eksport meningkat semula kepada 18.9%

dalam perbandingan tahunan daripada 14.8% pada bulan September 2017.

Trend eksport yang sihat dalam tempoh 10 bulan pertama tahun 2017

membolehkan imbangan perdagangan mengekalkan kedudukan lebihannya

kepada RM80.2 bilion daripada RM70.1 bilion dalam tempoh yang sama pada

tahun 2016. Sementara itu, Indeks Harga Pengguna (CPI) jatuh kepada 3.7%

berdasarkan perbandingan tahunan pada bulan Oktober 2017 (September

2017: + 4.3% berdasarkan perbandingan tahunan) berikutan kenaikan harga

pengangkutan yang lemah pada bulan tersebut. Inflasi berada pada purata

4.0% dalam perbandingan tahun ke tahun pada bulan Januari hingga Oktober

2017, seperti mana angka akhir dalam jajaran kadar rasmi 3.0-4.0% bagi

keseluruhan 2017. BNM, bagaimanapun dijangka meningkatkan kadar dasar

semalaman (OPR) sebanyak 25 mata asas kepada 3.25% pada tahun 2018.

AMB Dana Ikhlas

24

Pada pertengahan bulan Disember 2018, MSCI Asia Ex-Japan melonjak

sebanyak 35.3%, diikuti oleh MSCI Europe sebanyak 20.1% dan MSCI World

sebanyak 18.6%. Bagi pasaran saham ASEAN, Indeks PCOMP Filipina meningkat

21.7% dalam perbandingan tahunan kepada 8,254.0 manakala Indeks STI

Singapura meningkat 18.2% kepada 3,433.5. Sementara itu, Indeks JCI Indonesia

dan SET Thailand masing-masing meningkat sebanyak 15.6% dalam

perbandingan tahunan (berakhir pada 5,952.1) dan 12.4% (berakhir pada

1,697.4). FBM KLCI mencatatkan keuntungan sebanyak 6.1% dalam

perbandingan tahun ke tahun untuk ditutup kepada 1,717.9. Para penganalisis

bersetuju bahawa walaupun angka pertumbuhan ekonomi yang kukuh baru-

baru ini adalah positif (KDNK S317: 6.2% berdasarkan perbandingan tahunan;

pertumbuhan akaun semasa S317: 72.4% berdasarkan perbandingan tahunan),

ketidakpastian tentang bila berlangsungnya pilihan raya umum memberikan

tekanan pada pasaran tempatan. Bagi bulan keempat berturut-turut, para

pelabur asing kekal menjadi penjual bersih bursa tempatan dengan jumlah

jualan RM100.0 juta pada bulan November 2017 selepas jualan ekuiti bersih

sebanyak RM230.7 juta pada bulan sebelumnya. Pasaran secara konsensusnya

menjangkakan indeks FBM KLCI ditutup pada paras 1,802 pada akhir tahun 2017

dalam jajaran antara 1,725-1,890, meningkat daripada paras penutup 1,641.7

pada 30 Disember 2016.

16. STRATEGI PELABURAN MASA HADAPAN

Ekuiti

Berikutan pertumbuhan pendapatan korporat berlaku secara lebih sekata pada

tahun 2018, kami berpendapat pulangan ekuiti akan dapat diraih daripada

pelbagai sektor, terutamanya yang sensitif dari segi ekonomi seperti kewangan,

bahan-bahan, pengguna dan industri. Sesetengah syarikat teknologi juga

dijangka terus menunjukkan pencapaian yang baik kerana skala operasi yang

besar. Pertumbuhan yang rendah menyaksikan pemberi pulangan mungkin

menunjukkan pencapaian rendah berikutan kadar bebas risiko meningkat

secara beransur-ansur.

Kami kekal positif tentang prestasi pasaran dan akan terus membuat pembelian

ketika harga jatuh berdasarkan jangkaan pertumbuhan pendapatan sebanyak

7%. Kami terus menumpukan kepada tema utama yang meluas dengan

pengkhususan dalam setiap tema - pembinaan (infrastruktur dan perumahan

mampu dimiliki); e-dagang / logistik (sudut hab e-pemenuhan dan bayaran

dalam talian); Pelancongan China (lapangan terbang, syarikat penerbangan,

produk pengguna); sektor Pengguna (budi bicara, tahan lama, pembiayaan

peribadi) dan teknologi (kilang pintar dalam persekitaran kos yang semakin

meningkat, saling berhubungan).

AMB Dana Ikhlas

25

Pendapatan Tetap

Saiz terbitan bon / sukuk kerajaan, bersih bagi tahun 2018 akan berjumlah RM40

bilion (menyamai tahun 2017). Terbitan kasar bagi tahun 2018 akan berada di

sekitar RM107 bilion berpadanan dengan anggaran terbitan kasar tahun 2017.

Kami menjangkakan BNM akan menyasarkan terbitan jangka masa yang lebih

lama untuk mengekalkan profil kematangan di peringkat boleh urus dan

menumpukan kepada jenis pemegangan yang menyamai tahun 2017.

Persediaan penempatan persendirian yang sama mungkin boleh dilaksanakan

bagi lelongan bon / sukuk kerajaan pada tahun 2018 untuk menyokong hasil bon

/ sukuk. Kami menjangkakan lebih banyak terbitan utama sebelum akhir tahun

yang akan mengekal peningkatan bon korporat / sukuk.

Kami terus menumpukan kepada sukuk korporat serta kekal bersikap berpilih-pilih

memandangkan penurunan taraf dan mungkir bayar dalam pasaran kredit

mungkin berpotensi untuk meningkat.

17. PERUBAHAN KETARA HAL-HAL BERKAITAN AMBDA DALAM TAHUN KEWANGAN

Tiada perubahan yang ketara terhadap kedudukan AMBDI sepanjang tempoh

kajian.

18. KEADAAN YANG MENJEJASKAN KEPENTINGAN PARA PEMEGANG UNIT

AMB dan AMBDi tidak mempunyai sebarang keadaan yang boleh memberikan

kesan ketara atau material terhadap kepentingan para pemegang unit.

19. PERUBAHAN KEPADA SURAT IKATAN DANA

Surat Ikatan yang bertarikh 25hb Oktober 2000 (dan sebagaimana yang dipinda

melalui perbuatan tambahan) ("Surat Ikatan"), telah dipinda lagi dengan Surat

Ikatan Tambahan Kelima bertarikh 13 Januari 2017 ("Surat Ikatan Tambahan")

(secara kolektif, "Surat Ikatan Utama "). Pindaan yang dibuat kepada Surat Ikatan

Utama antara lain, menyeragamkan dan mengemas kini peruntukan surat ikatan

menurut Garis Panduan Dana Amanah Saham yang dikeluarkan oleh

Suruhanjaya Sekuriti Malaysia. Maklumat berkaitan perubahan kepada

peruntukan dalam Surat Ikatan Utama disediakan di laman sesawang kami di

www.ambmutual.com.my.

20. PERUBAHAN DALAM CAJ BERPINDAH DANA PELABURAN

Terdapat perubahan dalam caj atau kadar bayaran berpindah dana pelaburan dalam prospektus induk terbaharu (dana-dana Syariah) bertarikh 17 September 2017 di laman sesawang www.ambmutual.com.my.

AMB Dana Ikhlas

26

21. POLISI TERHADAP KOMISEN RINGAN DITERIMA DARIPADA BROKER

Dalam tempoh kajian, AMB tidak menerima sebarang komisen ringan daripada

mana-mana broker dan/atau badan korporat berkaitan sebagai balasan

kepada pelaburan dalam AMBDI.

Bagaimanapun, Pengurus Pelaburan telah membuat langganan tetapi tidak

terhad kepada barangan dan perkhidmatan yang memberikan faedah kepada

pemegang unit seperti perkhidmatan kewangan secara dalam talian dan sistem

sebut harga saham berkaitan dengan pengurusan pelaburan AMBDI.

Pengurus

AMANAH MUTUAL BERHAD

Nota: Laporan ini telah diterjemahkan daripada laporan asal (dalam Bahasa

Inggeris). Jika terdapat perbezaan, sila rujuk kepada laporan Bahasa Inggeris.

AMB Dana Ikhlas

27

TRUSTEE'S REPORT

FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2017

TO THE UNIT HOLDERS OF AMB DANA IKHLAS

(a)

(b)

(c)

For and on behalf of the Trustee

AMANAHRAYA TRUSTEES BERHAD

HABSAH BINTI BAKAR

Chief Executive Officer

Kuala Lumpur, Malaysia

25 January 2018

We, AMANAHRAYA TRUSTEES BERHAD ("the Trustee"), have acted as

Trustee of AMB DANA IKHLAS for the financial year ended 30 November

2017. In our opinion, AMANAH MUTUAL BERHAD ("the Manager"), has

managed AMB DANA IKHLAS in accordance with the limitat ions imposed

on the investment powers of the Manager and the Trustee under the

Deed, other provisions of the Deed, the applicable Guidelines on Unit Trust

Funds, the Capital Markets and Services Act 2007 and other applicable

laws during the financial year then ended.

In our opinion :

the procedures and processes employed by the Manager to value

and/or price the units of AMB DANA IKHLAS are adequate and that

such valuation/pricing is carried out in accordance with the Deed and

other regulatory requirement;

the creation and cancellat ion of units are carried out in accordance

with the Deed and other regulatory requirement; and

the distribut ion of returns made by AMB DANA IKHLAS as declared by

the Manager is in accordance with the investment objective of AMB

DANA IKHLAS.

AMB Dana Ikhlas

28

STATEMENT BY MANAGER

TO THE UNIT HOLDERS OF AMB DANA IKHLAS

Tan Sri Abdul Wahid bin Omar Dato' Abdul Rahman bin Ahmad

Director

Kuala Lumpur, Malaysia

25 January 2018

Chairman

We, being two of the Directors of AMANAH MUTUAL BERHAD, the Manager of

AMB DANA IKHLAS ("the Trust") do hereby state that, in the opinion of the

Manager, the accompanying financial statements of the Trust for the year ended

30 November 2017, together with the notes thereto, have been properly drawn

up in accordance with Malaysian Financial Report ing Standards and

International Financial Report ing Standards, so as to give a true and fair view of

the financial posit ion of the Trust as at 30 November 2017, and of its financial

performance and cash flows for the year then ended.

Signed on behalf of AMANAH MUTUAL BERHAD, being the Manager of AMB

DANA IKHLAS, in accordance with a resolut ion of the Directors dated 25 January

2018.

AMB Dana Ikhlas

29

REPORT OF THE SHARIAH COMMITTEE

TO THE UNIT HOLDERS OF

AMB DANA IKHLAS

AMB Dana Ikhlas

Kuala Lumpur, Malaysia

25 January 2018

We have acted as the Shariah Committee of AMB Dana Ikhlas ("the Trust") for the

financial year ended 30 November 2017. Our responsibility is to ensure that the

procedures and processes employed by Amanah Mutual Berhad ("the Manager")

and that the provisions of the Deed dated 4 September 2002 and the

Supplementary Deeds are in accordance with Shariah principles.

In our opinion, the Manager has managed and administered the Trust in

accordance with Shariah principles and complied with applicable guidelines,

ruling or decision issued by the Securit ies Commission pertaining to Shariah matters.

The investment portfolio of the Trust comprises securit ies which has been classified

as Shariah compliant by the Shariah Advisory Council (SAC) of the Securit ies

Commission.

Chairman of Shariah Committee

For and on behalf of the Shariah Committee members of

AMB Dana Ikhlas

30

Independent auditors’ report to the unit holders of

AMB Dana Ikhlas

Report on the audit of the financial statements

Opinion

We have audited the financial statements of AMB Dana Ikhlas ("the Trust"), which

comprise the statement of financial position as at 30 November 2017, and the

statement of comprehensive income, statement of changes in equity and statement

of cash flows for the year then ended, and notes to the financial statements, including

a summary of accounting policies, as set out on pages 34 to 66.

In our opinion, the accompanying financial statements give a true and fair view of the

financial position of the Trust as at 30 November 2017, and of its financial performance

and cash flows for the year then ended in accordance with Malaysian Financial

Reporting Standards and International Financial Reporting Standards.

Basis for opinion

We conducted our audit in accordance with approved standards on auditing in

Malaysia and International Standards on Auditing. Our responsibilities under those

standards are further described in the Auditors’ responsibilities for the audit of the

financial statements section of our report. We believe that the audit evidence we

have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence and other ethical responsibilities

We are independent of the Trust 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 Trust is responsible for the other information. The other information

comprises the information included in the annual report of the Trust but does not

include the financial statements of the Trust and our auditors‟ report thereon. The

annual report is expected to be made available to us after the date of this auditors‟

report.

Our opinion on the financial statements of the Trust does not cover the other

information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements of the Trust, our responsibility is

to read the other information identified above when it becomes available and, in

doing so, consider whether the other information is materially inconsistent with the

financial statements of the Trust or our knowledge obtained in the audit, or otherwise

appears to be materially misstated.

AMB Dana Ikhlas

31

Independent auditors’ report to the unit holders of

AMB Dana Ikhlas (cont'd.)

Information other than the financial statements and auditors’ report thereon (cont'd.)

When we read the annual report, if we conclude that there is a material misstatement

therein, we are required to communicate the matter to the Manager and Trustee of

the Trust and take appropriate action.

Responsibility of the Manager and Trustee for the financial statements

The Manager is responsible for the preparation of financial statements of the Trust that

give a true and fair view in accordance with Malaysian Financial Reporting Standards

and International Financial Reporting Standards. The Manager is also responsible for

such internal control as the Manager determines is necessary to enable the

preparation of financial statements of the Trust that are free from material

misstatement, whether due to fraud or error.

In preparing the financial statements of the Trust, the Manager is responsible for

assessing the Trust‟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 Trust or to cease operations, or have

no realistic alternative but to do so.

The Trustee is responsible for overseeing the Trust's financial reporting process. The

Trustee is also responsible for ensuring that the Manager maintains proper accounting

and other records as are necessary to enable true and fair presentation of these

financial statements.

Auditors’ responsibility for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial

statements of the Trust 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.

AMB Dana Ikhlas

32

Independent auditors’ report to the unit holders of

AMB Dana Ikhlas (cont'd.)

Auditors’ responsibility for the audit of the financial statements (cont'd.)

As part of an audit in accordance with approved standards on auditing in Malaysia

and International Standards on Auditing, we exercise professional judgement and

maintain professional scepticism throughout the audit. We also:

● Identify and assess the risks of material misstatement of the financial statements

of the Trust, 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 Trust‟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 Trust‟s ability to continue as a going concern. If we

conclude that a material uncertainty exists, we are required to draw attention

in our auditors‟ report to the related disclosures in the financial statements of the

Trust 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 Trust to

cease to continue as a going concern.

● Evaluate the overall presentation, structure and content of the financial

statements of the Trust, including the disclosures, and whether the financial

statements of the Trust represent the underlying transactions and events in a

manner that achieves fair presentation.

We communicate with the Manager regarding, among other matters, the planned

scope and timing of the audit and significant audit findings, including any significant

deficiencies in internal control that we identify during our audit.

AMB Dana Ikhlas

33

Independent auditors’ report to the unit holders of

AMB Dana Ikhlas (cont'd.)

Other matters

This report is made solely to the unit holders of the Trust, as a body, in accordance with

the Guidelines on Unit Trust Funds issued by the Securities Commission Malaysia and for

no other purpose. We do not assume responsibility to any other person for the

content of this report.

Ernst & Young Muhammad Syarizal Bin Abdul Rahim

AF: 0039 No. 03157/01/2019 J

Chartered Accountants Chartered Accountant

Kuala Lumpur, Malaysia

25 January 2018

AMB Dana Ikhlas

34

AMB DANA IKHLAS

STATEMENT OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2017

2017 2016

Note RM RM

INCOME

Gross dividend income 348,071 458,889

Profit from Sukuk 475,682 501,298

Profit from short term deposit placements 64,572 79,898

Net gain/(loss) on fair value changes of

FVTPL investments 812,871 (303,696)

1,701,196 736,389

EXPENSES

Manager's fee 4 327,049 334,842

Trustee's fee 5 20,794 21,474

Auditors' remuneration 12,000 12,000

Tax agent's fee 4,500 3,100

Brokerage and other transaction fees 105,194 129,926

Administrat ive expenses 63,436 64,494

532,973 565,836

NET INCOME BEFORE TAXATION 1,168,223 170,553

TAXATION 7 - -

NET INCOME AFTER TAXATION,

REPRESENTING TOTAL COMPREHENSIVE

INCOME FOR THE YEAR 1,168,223 170,553

Total comprehensive income for the year is made

up of the following:

Realised 581,631 428,828

Unrealised 586,592 (258,275)

1,168,223 170,553

The accompanying notes form an integral part of the financial statements.

AMB Dana Ikhlas

35

AMB DANA IKHLAS

STATEMENT OF COMPREHENSIVE INCOME (CONTD.)

FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2017

2017 2016

Note RM RM

Net distribut ion for the year 12 454,483 475,533

Gross and net distribut ion per unit (sen) 1.00 1.00

Gross distribut ion yield (%) 1.89 1.87

Distribut ion date 30 November 30 November

2017 2016

Net Asset Value Per Unit ,

Cum-Distribut ion (Published Price) 0.5527 0.5384

Net Asset Value Per Unit ,

Ex-Distribut ion 0.5427 0.5284

The accompanying notes form an integral part of the financial statements.

AMB Dana Ikhlas

36

AMB DANA IKHLAS

STATEMENT OF FINANCIAL POSITION

AS AT 30 NOVEMBER 2017

Note 2017 2016

RM RM

ASSETS

Investments at FVTPL 7 24,253,043 21,614,083

Short term deposit placements with financial

inst itut ions 8 1,813,000 3,631,000

Tax recoverable 9,336 15,528

Other receivables 9 112,954 132,493

Amount due from stockbrokers 289,771 412,555

Cash at bank 11,139 8,773

TOTAL ASSETS 26,489,243 25,814,432

LIABILITIES

Provision for distribut ion 11 454,483 475,533

Other payables 46,054 53,000

Amount due to Manager 10 60,596 27,539

Amount due to Trustee 1,746 1,794

Amount due to stockbrokers 1,260,559 128,237

TOTAL LIABILITIES 1,823,438 686,103

EQUITY

Unit holders' capital 12 24,091,398 25,267,662

Reserves 574,407 (139,333)

TOTAL EQUITY/NET ASSET VALUE

ATTRIBUTABLE TO UNIT HOLDERS 24,665,805 25,128,329

TOTAL EQUITY AND LIABILITIES 26,489,243 25,814,432

NUMBER OF UNITS IN CIRCULATION 13 45,448,300 47,553,300

NET ASSET VALUE PER UNIT, EX-DISTRIBUTION 0.5427 0.5284

The accompanying notes form an integral part of the financial statements.

AMB Dana Ikhlas

37

AMB DANA IKHLAS

STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2017

Unit holders'Unit holders' RealisedRealised Unrealised NonUnrealised Non

capitalcapital DistributableDistributable - Distributable Total equity

RMRM RMRM RMRM RM

At 1 December 2016 25,267,662 10,778 (150,111) 25,128,329

Total comprehensive income

for the year - 581,631 586,592 1,168,223

Creation of units for:

-Distribut ion 475,429 - - 475,429

-Sales 1,484,419 - - 1,484,419

Cancellat ion of units (3,071,834) - - (3,071,834)

Distribut ion equalisat ion

for the year (64,278) - - (64,278)

Distribut ion for the year - (454,483) - (454,483)

At 30 November 2017 24,091,398 137,926 436,481 24,665,805

At 1 December 2015 31,633,758 57,483 108,164 31,799,405

Total comprehensive

income for the year - 428,828 (258,275) 170,553

Creation of units for:

-Distribut ion 654,804 - - 654,804

-Sales 1,444,712 - - 1,444,712

Cancellat ion of units (8,379,399) - - (8,379,399)

Distribut ion equalisat ion

for the year (86,213) - - (86,213)

Distribut ion for the year - (475,533) - (475,533)

At 30 November 2016 25,267,662 10,778 (150,111) 25,128,329

The accompanying notes form an integral part of the financial statements.

<---------- Reserves ----------->

AMB Dana Ikhlas

38

STATEMENT OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2017

2017 2016

RM RM

CASH FLOWS FROM OPERATING AND INVESTING

ACTIVITIES

Proceeds from sale of investments 19,284,783 27,389,859

Purchase of investments (19,965,533) (20,041,217)

Dividend received 363,554 458,518

Profit income received 550,502 637,148

Manager's fee paid (346,741) (362,929)

Trustee's fee paid (22,090) (23,238)

Auditor's remuneration paid (24,000) (16,500)

Other expenses paid (37,437) (28,154)

Net cash (used in)/generated from operating and invest ing

activit ies (196,962) 8,013,487

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from creation of units 1,539,819 1,481,778

Payments for cancellat ion of units (3,158,491) (8,507,581)

Net cash used in financing activit ies (1,618,672) (7,025,803)

NET (DECREASE)/INCREASE IN CASH AND CASH

EQUIVALENTS (1,815,634) 987,684

CASH AND CASH EQUIVALENTS AT BEGINNING

OF THE YEAR 3,639,773 2,652,089

CASH AND CASH EQUIVALENTS AT END

OF THE YEAR 1,824,139 3,639,773

CASH AND CASH EQUIVALENTS COMPRISE:

Cash at bank 11,139 8,773

Short term deposit placements

with financial inst itut ions (Note 8) 1,813,000 3,631,000

1,824,139 3,639,773

AMB DANA IKHLAS

The accompanying notes form an integral part of the financial statements.

AMB Dana Ikhlas

39

AMB DANA IKHLAS

NOTES TO THE FINANCIAL STATEMENTS - 30 NOVEMBER 2017

1. THE TRUST, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES

2.

(a)

(b)

The financial statements were authorised for issue by the Board of Directors of

AMB in accordance with the resolut ion of the Directors on 25 January 2018.

The financial statements for the year ended 30 November 2017 have been

prepared in accordance with Malaysian Financial Report ing Standards ("MFRS")

and International Financial Report ing Standards ("IFRS").

BASIS OF PREPARATION

Early adoption of MFRS 9 Financial Instruments : Classification and

Measurement ("MFRS 9")

The Trust has applied MFRS 9 Financial Instruments ("MFRS 9") (as issued in

November 2009 and revised in October 2010) and the related

consequential amendments in advance of their effective dates. The date

of init ial application (i.e. the date on which the Trust has assessed its

exist ing financial assets and financial liabilit ies) is 1 December 2011.

Changes in accounting policies

Amanah Saham Nasional Berhad ("ASNB") and Permodalan Nasional Berhad

("PNB"), companies incorporated in Malaysia, are the holding and ult imate

holding company of the Manager, respectively. The Manager, a company

incorporated in Malaysia, is principally engaged in the management of unit

t rust funds.

The new and revised MFRSs which are mandatory for companies with

financial period beginning on or after 1 December 2016 do not give rise to

any significant effects on the financial statements of the Trust.

The principal activity of the Trust is to invest in a portfolio of investments that

are permissible under Shariah principles with the objective to attain a mix of

regular income stream and possible capital growth. The investments include

shares of companies quoted on Bursa Malaysia Securit ies Berhad, Sukuk and

short term deposits.

AMB Dana Ikhlas (hereinafter referred to as "the Trust") was const ituted

pursuant to the executed Deed dated 4 September 2002 between Amanah

Mutual Berhad as the Manager and AmanahRaya Trustees Berhad as the

Trustee and Registered Holders of the Trust. A First Supplemental Deed dated 13

August 2008 and the Second Supplemental Deed dated 17 October 2014 have

been issued. The Trust commenced operations on 17 September 2002 and will

continue to be in operations until terminated by the Trustees as provided under

the Deed.

AMB Dana Ikhlas

40

2.

(c)

3.

(a)

Financial assets and financial liabilit ies are recognised when the Trust

becomes a party to the contractual provision of the instrument.

Financial instruments

Financial assets and financial liabilit ies are init ially measured at fair value.

Transaction costs that are directly attributable to the acquisit ion or issue of

financial assets and financial liabilit ies (other than financial assets and

financial liabilit ies at fair value through profit or loss) are added to or

deducted from the fair value of the financial assets or financial liabilit ies, as

appropriate, on init ial recognit ion. Transaction costs directly attributable to

the acquisit ion of financial assets and financial liabilit ies at fair value

through profit or loss are recognised immediately in profit or loss.

BASIS OF PREPARATION (CONTD.)

The Standards, Amendments and Issues Committee ("IC") Interpretations

that have been issued by Malaysian Accounting Standards Board ("MASB")

but are not yet effective as at the date of authorisat ion of these financial

statements are not relevant to the Trust except for MFRS 9.

On 24 July 2014, the International Accounting Standard Boards ("IASB")

issued the final version of IFRS 9 which includes the three phases of the

financial instruments projects; Classification and measurement, Impairment

(Expected credit losses) and Hedge accounting. Subsequently, MASB issued

a pronouncement on 17 November 2014 to fully adopt the new IFRS 9

requirements. As the Trust has early adopted the previous version of MFRS 9

prior to 31 January 2015, the Trust may continue to apply that version of

MFRS 9 until the mandatory effective date of 1 January 2018. The Trust is st ill

in the process of quantifying the effect of the adoption of the final version

of MFRS 9.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Effective for financial periods beginning on or after 1 January 2018

MFRS 9 Financial Instruments (IFRS 9 as issued by IASB in July 2014)

Standard issued but not yet effective

AMB Dana Ikhlas

41

3.

(b)

(i) Classification of financial assets

●

●

(ii) Financial assets at fair value through profit or loss ("FVTPL")

●

●

●

Debt instruments that do not meet the criteria above are classified as

FVTPL.

it has been acquired principally for the purpose of selling it in the

near term; or

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

Financial assets

All recognised financial assets are subsequently measured in their ent irety

at amort ised cost or fair value, depending on the classificat ion of the

assets.

on init ial recognit ion it is part of the portfolio of identified financial

instruments that the Trust manages together and has evidence

of a recent actual pattern of short-term profit-taking; or

Unless designated as at FVTPL on init ial recognit ion, debt instruments

that meet the following condit ions are subsequently measured at

amort ised cost less impairment loss:

All regular way purchases or sales of financial assets are recognised and

derecognised on a trade date basis. Regular way purchases or sales are

purchases or sales of financial assets that require delivery of assets within

the time frame established by regulat ion or convention in the market

place.

Equity instruments are classified as either FVTPL or FVTOCI, depending

on the investment objectives.

it is a derivat ive that is not designated and effective as a

hedging instruments or a financial guarantee.

A financial asset is held for t rading if:

Investments in equity instruments are classified as FVTPL, unless the Trust

designates an investment that is not held for trading as FVTOCI on

init ial recognit ion.

the asssets are held within a business model whose objectives is to

hold assets in order to collect contractual cash flows; and

the contractual terms of the instrument give rise on specified

dates to cash flows that are solely payments of principal and

interest on the principal amount outstanding.

AMB Dana Ikhlas

42

3.

(b) Financial assets (contd.)

(ii) Financial assets at fair value through profit or loss ("FVTPL") (contd.)

(iii) Financial assets at fair value through other comprehensive income

("FVTOCI")

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

Financial assets at FVTPL are measured at fair value at the end of each

report ing period, with any gains or losses arising on remeasurement

recognised in profit or loss.

Debt instruments that do not meet the amort ised cost criteria (see

above) are measured at FVTPL. In addit ion, debt instruments that meet

the amort ised cost criteria but are designated as at FVTPL are

measured at FVTPL. A debt instrument may be designated as at FVTPL

upon init ial recognit ion if such designation eliminates or significantly

reduces a measurement or recognit ion inconsistency that would arise

from measuring assets or liabilit ies or recognising the gains and losses on

them on different bases.

Financial assets at FVTOCI are init ially measured at fair value plus

transaction costs. Subsequently, they are measured at fair value with

gains and losses arising from changes in fair value recognised in other

comprehensive income and accumulated in the unrealised reserve.

The cumulative gain or loss will not be reclassified to profit or loss on

disposal of the investments.

Interest income on debt instruments as at FVTPL is disclosed separately

in the profit or loss.

On init ial recognit ion, the Trust can make an irrevocable election (on

an instrument-by-instrument basis) to designate investments in equity

instruments as at FVTOCI. Designation at FVTOCI is not permitted if the

equity investment is held for t rading.

Debt instruments are reclassified from amort ised cost to FVTPL when the

business model is changed such that the amort ised cost criteria are no

longer met. Reclassification of debt instruments that are designated as

at FVTPL on init ial recognit ion is not allowed.

Dividend income on investments in equity instruments at FVTPL is

recognised in profit and loss when the Trust 's right to receive the

dividends is established in accordance with MFRS 118 Revenue and is

disclosed separately in the profit and loss.

AMB Dana Ikhlas

43

3.

(b) Financial assets (contd.)

(iv) Impairment of financial assets

● Significant financial difficulty of the issuer or counterparty; or

●

●

●

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

Financial assets that are measured at amort ised cost are assessed for

impairment at the end of each report ing period. Financial assets are

considered to be impaired when there is objective evidence that, as a

result of one or more events that occurred after the init ial recognit ion

of the financial assets, est imated future cash flows of the asset have

been affected.

The disappearance of an active market for that financial asset

because of financial difficult ies.

The amount of the impairment loss recognised is the difference

between the asset 's carrying amount and the present value of the

est imated future cash flows reflect ing the amount of collateral and

guarantee, discounted at the financial asset 's original effective interest

rate.

The carrying amount of the financial asset is directly reduced by the

impairment loss for all financial assets with the exception of trade

receivables, where the carrying amount is reduced through the use of

an allowance account. When a trade receivable is considered

uncollect ible, it is written off against the allowance account.

Subsequent recoveries of amounts previously written off are recognised

in profit or loss.

If, in a subsequent period, the amount of the impairment loss decreases

and the decrease can be related objectively to an event occurring

after the impairment was recognised, the previously recognised

impairment loss is reversed through profit or loss to the extent that the

carrying amount of the investment at the date the impairment is

reversed does not exceed what the amort ised cost would have been

had the impairment not been recognised.

Objective evidence of impairment could include:

It becomes probable that the borrower will enter bankruptcy or

financial reorganisat ion; or

Breach of contract such as a default or deliquency in interest or

principal payments; or

AMB Dana Ikhlas

44

3.

(b) Financial assets (contd.)

(v) Derecognition of financial assets

(c) Financial liabilities and equity instruments

(i) Classification as debt or equity

(ii) Financial liabilities

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

On derecognit ion of equity instruments classified as FVTOCI, the

cumulative gain or loss previously accumulated in unrealised reserve is

not reclassified to profit or loss, but is reclassified to distributable realised

reserve.

On derecognit ion of financial asset classified as FVTPL, the cumulative

unrealised gain or loss previously recognised is transferred to realised

gain or loss on disposal in profit or loss.

Financial liabilit ies, within the scope of MFRS 9, are recognised in the

statement of financial posit ion when, and only when, the Trust

becomes a party to the contractual provisions of the financial

instruments.

Debt and equity instruments issued by the Trust are classified as either

financial liabilit ies or as equity in accordance with the substance of the

contractual arrangements and the definit ions of a financial liability and

an equity instrument.

The Trust derecognises a financial asset only when the contractual

rights to the cash flows from the asset expire, or when it transfers the

financial asset and substantially all the risks and rewards of ownership of

the asset to another entity. If the Trust neither transfers nor retains

substantially all the risks and rewards of ownership and continues to

control the transferred asset, the Trust recognises its retained interest in

the asset and an associated liability for amounts it may have to pay. If

the Trust retains substantially all the risks and rewards of ownership of a

transferred financial asset, the Trust continues to recognise the financial

asset and also recognises a collateralised borrowing for the proceeds

received.

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3.

(c) Financial liabilities and equity instruments (contd.)

(iii) Derecognition of financial liabilities

(iv) Unit holders' capital

(d) Income recognition

(e) Cash and cash equivalents

Distribut ion equalisat ion represents the average distributable amount

included in the creation and cancellat ion prices of units. The amount is

either refunded to unit holders by way of distribut ion and/or adjusted

accordingly when units are cancelled.

The Trust derecognises financial liabilit ies when, and only when, the

Trust‟s obligations are discharged, cancelled or expire. The difference

between the carrying amount of the financial liability derecognised

and the consideration paid and payable, including any non-cash assets

t ransferred or liabilit ies assumed, is recognised in profit or loss.

For the purposes of the statement of cash flows, cash and cash equivalents

include cash at bank and highly liquid instruments with maturit ies of three

months or less, which have an insignificant risk of changes in value.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

Gross dividend income from investments are recognised on a declared

basis when the right to receive dividends has been established.

Realised gain on disposal of investments is measured as the difference

between the net proceeds and its carrying amount.

Income from investments at amort ised cost are accounted for on an

accrual basis based on effective interest rate method.

The unit holders' contribut ions to the Trust meet the definit ion of

puttable instruments classified as equity instruments under the revised

MFRS 132 Financial Instruments: Presentation.

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3.

(f) Income tax

(g) Fair value measurement

● In the principal market for the asset or liability, or

●

No deferred tax is recognised as there are no material temporary

differences.

The principal or the most advantageous market must be accessible to by

the Trust.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

Current tax assets and liabilit ies are measured at the amount expected to

be recovered from or paid to the tax authorit ies. The tax rates and tax laws

used to compute the amount are those that are enacted or substantively

enacted by the report ing date.

The Trust uses valuation techniques that are appropriate in the

circumstances and for which sufficient data are available to measure fair

value, maximising the use of relevant observable inputs and minimising the

use of unobservable inputs.

All assets for which fair value is measured or disclosed in the financial

statements are categorised within the fair value hierarchy, described as

follows, based on the lowest level input that is significant to the fair value

measurement as a whole:

Current taxes are recognised in profit or loss except to the extent that the

tax relates to items recognised outside profit or loss, either in other

comprehensive income or directly in equity.

Fair value is the price that would be received to sell an asset or paid to

transfer a liability in an orderly transaction between market part icipants at

the measurement date. The fair value measurement is based on the

presumption that the transaction to sell or transfer the liability takes place

either:

In the absence of a principal market, in the most advantageous

market for the asset or liability.

The fair value of an asset or a liability is measured using the assumptions

that market part icipants would use when pricing the asset or liability,

assuming that market part icipants act in their economic best interest.

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3.

(g) Fair value measurement (contd.)

●

●

● Level 3: Inputs that are not based on observable market data.

(h) Significant accounting estimates and judgements

4. MANAGER'S FEE

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

or liabilit ies.

Level 2: Inputs that are based on observable market data, either directly

or indirectly.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

For assets that are recognised in the financial statements on a recurring

basis, the Trust determines whether transfers have occurred between

Levels in the hierarchy by re-assessing categorisat ion (based on the lowest

level input that is significant to the fair value measurement as a whole) at

the end of each report ing period.

The Manager's fee is computed daily. The fee is computed based on 1.00%

(2016: 1.00%) per annum on the bond and money market port ion and 1.50%

(2016: 1.50%) per annum on the equity port ion of the net asset value ("NAV") of

the Trust, before deducting Manager's fee and Trustee's fee for the day.

The preparation of the Trust 's financial statements requires the Manager to

make judgements, est imates and assumptions that affect the reported

amounts of revenues, expenses, assets and liabilit ies and the disclosure of

contingent liabilit ies at the report ing date. However, uncertainty about

these assumptions and est imates could result in outcomes that require a

material adjustment to the carrying amount of the asset or liability in the

future.

No major judgements have been made by the Manager in applying the

Trust 's accounting policies. There are no key assumptions concerning the

future and other key sources of est imation uncertainty at the report ing

date, that have a significant risk of causing a material adjustment to the

carrying amounts of assets and liabilit ies within the next financial year.

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5. TRUSTEE'S FEE

6. TAXATION

2017 2016

RM RM

Net income before taxation 1,168,223 170,553

Taxation at Malaysian statutory rate of 24% 280,374 40,933

Income not subject to tax (408,287) (176,734)

Expenses/items not deductible for tax purposes 127,913 135,801

Tax expense for the year - -

7. INVESTMENTS AT FVTPL

2017 2016

RM RM

At cost

Sukuk (a) 10,596,800 10,577,770

Quoted investments (b) 13,219,762 11,186,424

23,816,562 21,764,194

At fair value

Sukuk (a) 10,650,405 10,543,716

Quoted investments (b) 13,602,638 11,070,367

24,253,043 21,614,083

The tax charge for the financial year is in relat ion to the taxable income earned

by the Trust after deducting tax allowable expenses. In accordance with

Schedule 6 of the Income Tax Act 1967, profit income earned by the Trust is

exempted from tax.

The Trustee's fee is computed based on 0.08% (2016: 0.08%) per annum of the

NAV of the Trust, before deducting Manager's fee and Trustee's fee for the day,

subject to a minimum of RM18,000 per annum. The Trustee fee is calculated and

accrued daily.

A reconciliat ion of income tax expense applicable to net income before

taxation at the statutory income tax rate to income tax expense at the

effective income tax rate of the Trust is as follows:

Income tax is calculated at the Malaysian statutory tax rate of 24% (2016: 24%)

of the est imated assessable income for the financial year.

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7. INVESTMENTS AT FVTPL (CONTD.)

(a) Sukuk

At cost: 10,596,800 10,577,770

At fair value: 10,650,405 10,543,716

Fair Value

Nominal over Net Asset

Value Cost Fair Value Value As at

RM RM 30.11.2017

%

Banks

4.60% Imtiaz Sukuk I I Bhd

22 March 2019 2,000,000 2,013,800 2,010,000 8.15

Power

4.38% Sarawak Hidro Sdn Bhd

11 August 2025 1,500,000 1,511,100 1,483,155 6.01

4.54% Tanjung Bin Power

Sdn Bhd

16 August 2019 1,000,000 1,004,300 1,003,850 4.07

2,500,000 2,515,400 2,487,005 10.08

Plantation

5.25% Bumitama Agri Ltd

18 March 2019 2,000,000 2,022,800 2,019,580 8.19

Real Estate

20 October 2023 3,000,000 3,041,700 2,956,800 11.99

0% Talam Transform Bhd

28 June 2019 172,163 - 162,650 0.66

3,172,163 3,041,700 3,119,450 12.65

Conglomerate

5.02% UMW Holdings Bhd

4 October 2021 1,000,000 1,003,100 1,014,370 4.11

Total sukuk 10,672,163 10,596,800 10,650,405 43.18

4.25% Aman Sukuk Bhd

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7. INVESTMENTS AT FVTPL (CONTD.)

(a) Sukuk (contd.)

Less than More than

1 year 1 - 2 years 2 - 5 years 5 years Total

RM RM RM RM RM

- 5,196,080 1,014,370 4,439,955 10,650,405

1,999,910 - 4,138,831 4,404,975 10,543,716

(b) Quoted investments

2017 2016

RM RM

At cost: 13,219,762 11,186,424

At fair value: 13,602,638 11,070,367

Fair Value

over Net Asset

Value As at

UnitsUnits CostCost Fair Value 30.11.2017

RMRM RM %

Construction

Econpile Holdings Bhd 164,600 347,965 521,782 2.11

Sunway Construct ion Group Bhd 160,100 354,919 384,240 1.56

IJM Corporation Bhd 114,900 383,712 355,041 1.44

Kimlun Corporation Bhd 39,000 90,277 90,480 0.37

WCT Holdings Bhd 374,480 819,570 576,699 2.34

853,080 1,996,443 1,928,242 7.82

Consumer

Padini Holdings Bhd 109,100 408,071 550,955 2.23

Finance

BIMB Holdings Bhd 29,700 122,406 127,710 0.52

2016

The remaining maturity of sukuk as at the end of the financial year are as follows:

2017

The weighted average effective yield of sukuk for the year was 4.39% (2016: 4.08%) per

annum.

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7. INVESTMENTS AT FVTPL (CONTD.)

(b) Quoted investments (contd.)

Fair Value

over Net Asset

Value As at

UnitsUnits CostCost Fair Value 30.11.2017

RMRM RM %

Industrial Product

Kossan Rubber Industries 15,900 125,261 122,271 0.50

Pecca Group Bhd 244,700 391,511 357,262 1.45

Petronas Chemicals Group Bhd 103,000 736,497 762,200 3.09

Petronas Gas Bhd 17,700 359,848 281,076 1.14

Top Glove Corporation Bhd 44,000 248,160 296,120 1.20

425,300 1,861,277 1,818,929 7.38

Plantation

Genting Plantat ions Bhd 23,900 261,712 250,950 1.02

IOI Corporation Bhd 111,200 503,496 495,952 2.01

Kuala Lumpur Kepong Bhd 16,200 381,812 394,956 1.60

Sime Darby Plantat ion Bhd 97,613 545,657 489,041 1.98

248,913 1,692,677 1,630,899 6.61

PropertiesSime Darby Property Bhd 97,613 146,420 117,136 0.47 SP Set ia Bhd 110,666 380,590 386,224 1.57

208,279 527,010 503,360 2.04

Trading Services

Axiata Group Bhd 162,272 805,865 864,910 3.51 Bermaz Auto Bhd 89,200 186,551 182,860 0.74 Dayang Enterprise Holdings Bhd 410,600 276,278 252,519 1.02 Dialog Group Bhd 209,200 360,332 504,172 2.04 MISC Bhd - Local 35,600 279,712 250,980 1.02 Perdana Petroleum Bhd 124,001 190,961 190,961 0.77 Petronas Dagangan Bhd 12,400 286,495 300,080 1.22 Sapura Energy Bhd 139,000 259,663 173,750 0.70 Serba Dinamik Holdings Bhd 72,500 216,288 232,000 0.94 Sime Darby Bhd 136,113 206,351 319,865 1.30 Sunway Bhd 284,666 491,922 464,006 1.88 Telekom Malaysia Bhd 119,791 796,278 722,340 2.93 Tenaga Nasional Bhd 148,000 2,072,099 2,288,080 9.28

1,943,343 6,428,795 6,746,523 27.35

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7. INVESTMENTS AT FVTPL (CONTD.)

(b) Quoted investments (contd.)

Fair Value

over Net Asset

Value As at

UnitsUnits CostCost Fair Value 30.11.2017

RMRM RM %

Infrastructure

Lingkaran Trans Kota Holdings Bhd 43,500 183,083 258,825 1.05

3,861,215 13,219,762 13,565,443 55.00

Right IssueSP Set ia Bhd - OR 19,008 - 15,967 0.06

Preference shares

SP Set ia Bhd - PA 57,026 - - -

WarrantsSunway Bhd 36,600 - 21,228 0.09

Total quoted investments 3,973,849 13,219,762 13,602,638 55.15

TOTAL INVESTMENTS AT FVTPL 23,816,562 24,253,043 98.33

8. SHORT TERM DEPOSIT PLACEMENTS WITH FINANCIAL INSTITUTIONS

2017 2016

RM RM

Licensed banks 1,813,000 3,631,000

2017 2016 2017 2016

3.20 3.33 2 20 Licenced banks

Average Maturity (Days)

The weighted average effective profit rates ("WAEPR") of placements and the

average maturity of placements as at the report ing date were as follows:

WAEPR (%p.a)

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9. OTHER RECEIVABLES

2017 2016

RM RM

Dividend receivable 15,060 24,351

Profit receivable 97,894 108,142

112,954 132,493

10. AMOUNT DUE TO MANAGER

2017 2016

RM RM

Amount due to Manager is in respect of:

Manager's fee 27,470 27,539

Cancellat ion of unit 33,126 -

60,596 27,539

11. PROVISION FOR DISTRIBUTION

SOURCE OF DISTRIBUTION

Income distribut ion to unit holders is from the following sources:

2017 2016

RM RM

Gross dividend income 348,071 458,889Profit from Sukuk 475,682 501,298

Profit on short term deposits placement 64,572 79,898

Previous year's realised income - 1,284

Net gain on disposal of FVTPL investments 99,131 -

987,456 1,041,369

Less : Expenses (532,973) (565,836)

Net distribut ion 454,483 475,533

Gross distribut ion per unit (sen) 1.00 1.00

Net distribut ion per unit (sen) 1.00 1.00

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12. UNIT HOLDERS' CAPITAL/NUMBER OF UNITS IN CIRCULATION

Units RM Units RM

As at beginning of the year 47,553,300 25,267,662 59,433,300 31,633,758

Creation of units for:

- Sales 2,810,000 1,484,419 2,735,000 1,444,712

- Distribut ion 900,000 475,429 1,240,000 654,804

Cancellat ion of units (5,815,000) (3,071,834) (15,855,000) (8,379,399)

Distribut ion equalisat ion - (64,278) - (86,213)

As at end of the year 45,448,300 24,091,398 47,553,300 25,267,662

13. UNITS HELD BY A RELATED PARTY

No. of Valued at No. of Valued at

Units NAV Units NAV

Manager 20,794 11,285 12,663 6,691

The Manager is the legal and beneficial owner of the above units.

2017

20162017

2016

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14.

DEALERS

Percent of

Value of Percent of Brokerage Brokerage

Stock Broker Trade Total Trade Fee Fee

RM % RM %

Maybank Securit ies* 4,619,171 12.81 9,625 14.30

CIMB Investment Bank Bhd* 8,514,030 23.61 8,972 13.33

Macquarie Malaysia Sdn Bhd 3,652,973 10.13 8,219 12.21

Credit Suisse (M) Sdn Bhd 3,066,006 8.50 6,937 10.31

RHB Investment Bank Berhad* 2,506,086 6.95 6,869 10.21

CLSA Securit ies (M) Sdn Bhd 2,458,561 6.82 5,532 8.22

Hong Leong Investment Bank

Bhd* 1,948,736 5.40 4,410 6.55

Kenanga Investment Bank Bhd

(M) Sdn Bhd 1,871,602 5.19 4,211 6.26

JP Morgan Securit ies (M) Sdn

Bhd 1,751,021 4.86 3,940 5.85

Affin Hwang Investment Bank

Bhd 1,244,032 3.45 2,799 4.16

Others 4,427,793 12.28 5,793 8.60

36,060,011 100.00 67,307 100.00

AMB has no direct equity interest in above companies.

*

The 10 largest stockbroking companies/brokers/dealers in terms of trade value are as

follows:

The dealings with the above companies have been transacted at arm's length

based on the normal terms in the stockbroking industry.

PNB and/or the unit trust funds under the management of the Manager and

ASNB have direct equity interest in the ult imate holding company of the

respective companies.

TRANSACTIONS WITH RELATED AND OTHER STOCKBROKING COMPANIES/BROKERS/

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15. MANAGEMENT EXPENSE RATIO

2017 2016

Management Expense Ratio (“MER”) 1.65% 1.63%

16. PORTFOLIO TURNOVER RATIO

2017 2016

Portfolio Turnover Ratio (“PTR”) 0.78 t imes 0.89 t imes

17. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES

Fair Values

(i)

(ii) Quoted investments

(iii) Sukuk

The fair value of quoted investments in shares and REITs are determined by

reference to the closing price on the Bursa Malaysia as at the statement of

financial posit ion date.

The following methods and assumptions are used to est imate the fair values of the

following classes of financial instruments:

The fair value of investments in unquoted fixed income securit ies are based on

the fair value prices quoted by Bond Pricing Agency Sdn. Bhd, a bond pricing

agency registered with the Securit ies Commission, as the statement of financial

posit ion date.

Cash and Cash Equivalents, Short term deposit placements with Financial

Institutions, Amount from/due to Stockbrokers, Amount Due to Manager/Trustee

and Other Receivables/Payables

The carrying balances approximate the fair values due to the relat ively short-

term maturity of these financial instruments.

Portfolio turnover rat io is calculated based on the ratio of the average acquisit ion

and disposals of investments for the year, to the average daily NAV of the Trust.

Management expense ratio is calculated based on the ratio of the total fees and

recovered expenses for the year, to the average daily NAV of the Trust.

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18.

Quoted prices (unadjusted) in active markets for identical assets or liabilit ies.

Inputs that are not based on observable market data.

Level 1 Level 2 Level 3 Total

RM RM RM RM

Quoted investments 13,602,638 - - 13,602,638

Sukuk - 10,650,405 - 10,650,405

13,602,638 10,650,405 - 24,253,043

Quoted investments 11,070,367 - - 11,070,367

Sukuk - 10,543,716 - 10,543,716

11,070,367 10,543,716 - 21,614,083

There were no transfers between Level 1 and 2 during the current and previous year.

19. SEGMENTAL REPORTING

All of the Trust 's investments are located in Malaysia.

20.

(a) Introduction

Level 2:

Level 1:

The Trust uses the following hierarchy for determining the fair value of all financial

instruments carried at fair value:

FAIR VALUE HIERARCHY

Investments at FVTPL

Level 3:

2016

2017

The Trust is managed into one main operating segment, which invests in various

financial instruments. The Trust 's activit ies are interrelated and each activity is

dependent on the others. Accordingly, all significant operating decisions are based

upon a single, integrated investment strategy and the Trust 's performance is

evaluated on an overall basis.

Inputs that are based on observable market data, either directly or

indirectly.

FINANCIAL RISK AND MANAGEMENT OBJECTIVES AND POLICIES

The Trust maintains investment portfolios in a variety of listed financial instruments as

dictated by its Trust Deed and investment management strategy.

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20.

(b) Market risk

(i) Equity price risk

Equity price risk sensitivity

Effects on

profit

Changes for the year

in equity Increase/

price (decrease)

Market index % RM

1,360,264/

+/(-) 10 (1,360,264)

1,107,037/

+/(-) 10 (1,107,037)

The sensit ivity analysis above assumes that the equity portfolio moves in line with

the above index.

The Trust is exposed to a variety of risks including market risk (which includes price

risk), credit risk and liquidity risk. Whilst these are the most important types of financial

risks inherent in each type of financial instruments, the Manager and the Trustee

would like to highlight that this list does not purport to const itute an exhaust ive list of

all the risks inherent in an investment in the Trust.

FINANCIAL RISK AND MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

Market risk is the risk that the fair value of future cash flows of financial instruments

will fluctuate due to changes in market variables such as equity prices and interest

rates. The market risk is managed through consistent monitoring and swift response

to various factors that may adversely affect the Trust.

2017

2016

Management's best est imate of the effect on profit for the year due to a

reasonable change in equity index, with all other variables held constant is

indicated in the table below:

Equity price risk is the risk of unfavourable changes in the fair values of equit ies as

the result of changes in the levels of equity indices and the value of individual

shares. The equity price risk exposure arises from the Trust 's investments in quoted

equity securit ies. This risk can be minimised through invest ing in a wide range of

companies in different sectors, which function independently from one another.

FTSE Bursa Malaysia KLCI

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20.

(b) Market risk (contd.)

(i) Equity price risk (contd.)

Equity price risk concentration

As a % of As a % of

RM NAV RM NAV

Ordinary shares

Construction 1,928,242 7.82 1,373,677 5.47

Consumer 550,955 2.23 - -

Finance 127,710 0.52 249,452 0.99

Industrial Products 1,818,929 7.38 1,920,731 7.64

Infrastructure 258,825 1.05 1,296,157 5.16

Plantation 1,630,899 6.61 1,171,796 4.66

Propert ies 503,360 2.04 17,952 0.07

Trading Services 6,746,523 27.35 5,040,602 20.07

Total ordinary shares 13,565,443 55.00 11,070,367 44.06

Warrants 21,228 0.09 - -

Right Issue 15,967 0.06 - -

13,602,638 55.15 11,070,367 44.06

(ii) Profit rate risk

Profit rate risk sensitivity

FINANCIAL RISK AND MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

The following table demonstrates the sensit ivity of the Trust 's profit for the year

to a reasonably possible changes in profit rates with all other variables held

constant.

The Trust actively manages its profit rate risk by maintaining a portfolio of

financial instruments guided by its investment guidelines and policies, and

regular reviews of profit rates and market expectations.

Profit rate risk is the risk that the value of the profit rate sensit ive financial

instruments of the Trust will fluctuate due to changes in market profit rates.

20162017

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20.

(b) Market risk (contd.)

(ii) Profit rate risk (contd.)

Profit rate risk sensitivity (contd.)

Effect on

income and

Equity for

the year

Changes Increase/

in basis (Decrease)

points* RM

2017

4,533/

Short term deposit placements +25/-25 (4,533)

26,626/

Sukuk +25/-25 (26,626)

2016

9,078/

Short term deposit placements +25/-25 (9,078)

26,359/

Sukuk +25/-25 (26,359)

*

The sensit ivity is the effect of the assumed changes in profit rates on:

•

•

FINANCIAL RISK AND MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

The assumed movement in basis points for interest rate sensit ivity analysis is

based on the currently observable market environment.

changes in fair value of investments for the year, based on revaluing fixed rate

financial assets at the end of the report ing period.

the net profit income for one year, based on the floating rate financial assets

held at the end of the report ing period; and

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20.

(b) Market risk (contd.)

(ii) Profit rate risk (contd.)

Profit rate risk exposure

Less than More than Non-profit Total Profit rate

1 year 1 year rate bearing

RM RM RM RM %

2017

Assets:

Quoted

investments - - 13,602,638 13,602,638 -

Sukuk - 10,650,405 - 10,650,405 4.70

Short term

deposit

placement 1,813,000 - - 1,813,000 3.20

Other assests - - 423,200 423,200 -

Total assests 1,813,000 10,650,405 14,025,838 26,489,243

Liabilities:

Other liabilit ies - - 1,823,438 1,823,438 -

Total liabilit ies - - 1,823,438 1,823,438

Total profit rate

sensit ivity gap 1,813,000 10,650,405 12,202,400 24,665,805

FINANCIAL RISK AND MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

The following table analyses the Trust 's profit rate risk exposure. The Trust 's assets

and liabilit ies are included at fair value and categorised by the earlier of

contractual re-pricing or maturity dates.

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20. FINANCIAL RISK AND MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

(b) Market risk (contd.)

(ii) Profit rate risk (contd.)

Profit rate risk exposure (contd.)

Less than More than Non-profit Total Profit rate

1 year 1 year rate bearing

RM RM RM RM %

2016

Assets:

Quoted

investments - - 11,070,367 11,070,367 -

Sukuk 1,999,910 8,543,806 - 10,543,716 4.27

Short term

deposit

placement 3,631,000 - - 3,631,000 3.33

Other assests - - 569,349 569,349 -

Total assests 5,630,910 8,543,806 11,639,716 25,814,432

Liabilities:

Other liabilit ies - - 686,103 686,103 -

Total liabilit ies - - 686,103 686,103

Total profit rate

sensit ivity gap 5,630,910 8,543,806 10,953,613 25,128,329

(c) Credit risk

Credit risk is the risk that the counterparty to a financial instrument will cause a

financial loss for the Trust by failing to discharge an obligation. This risk is reduced with

the introduction of the RENTAS payment system where the securit ies and the

payment will be matched on a real t ime basis. However, the failure of any party

involved in the transaction to deliver the securit ies or make good the payment

could have a serious implication to the Trust. In order to mit igate this risk, the Trust

has an approved list of financial inst itut ions as the counterparty for any securit ies

transactions.

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20. FINANCIAL RISK AND MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

(c)

As a % of As a % of As a % of As a % of

Credit Rating Sukuk NAV Sukuk NAV

AAA 41.69 18.00 41.78 17.53

AA2s 18.87 8.15 28.45 11.94 AA2 18.95 8.18 - - AA - - 18.83 7.90 AA3 18.96 8.19 - - AA- - - 9.48 3.98

BB3S 1.53 0.66 1.46 0.61

100.00 43.18 100.00 41.96

As a % of As a % of As a % of As a % of

Sukuk NAV Sukuk NAV

Sector

Banks 18.87 8.15 28.45 11.94

Conglomerate 9.52 4.11 9.37 3.93

Plantat ion 18.96 8.19 - -

Power 23.35 10.08 32.87 13.79

Real estate 29.30 12.65 29.31 12.30

100.00 43.18 100.00 41.96

2017

The Trust invests only in unquoted fixed income securit ies with at least investment

grade credit rat ing by a credit rat ing agency. The following table analyses the Trust 's

portfolio of fixed income securit ies by rat ing category:

Credit risk exposure

Credit quality of financial assets

At the report ing date, the Trust 's maximum exposure to credit risk is represented by

the carrying amount of each class of financial assets recognised in the statement of

financial posit ion.

2016

Credit risk (contd.)

2017

Credit risk concentration

The table below analyses the Trust 's portfolio of unquoted fixed income securit ies

analysed by sectorial distribut ion:

2016

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20. FINANCIAL RISK AND MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

(d) Liquidity risk

Less than 1 month to

1 month 1 year Total

Financial liabilities: RM RM RM

Other liabilit ies

2017 1,322,901 500,537 1,823,438

2016 157,570 528,533 686,103

(e) Risk management structure

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 of cash, deposits with financial

inst itut ions and other instruments which are capable of being converted into cash

within 7 days.

Liquidity risk is defined as the risk that the Trust will encounter difficulty in meeting

obligations associated with financial liabilit ies that are sett led by delivering cash or

another financial assets. Exposure to liquidity risk arises because of the possibility that

the Trust could be required to pay its liabilit ies or redeem its units earlier than

expected. The Trust 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 holders' option

based on the Trust 's net asset value per unit at the time of redemption calculated in

accordance with the Trust 's Deed.

The following table summarises the maturity profile of the Trust 's units in issue

(classified as equity instruments) and financial liabilit ies. Balances due within six

months equal their carrying amounts, as the impact of discounting is insignificant.

The table also analyses the maturity profile of the Trust 's financial assets

(undiscounted where appropriate) and equity in order to provide a complete view

of the Trust 's contractual commitments and liquidity.

The maturity grouping is based on the remaining period from the end of the

report ing period to the contractual maturity date. When a counterparty has a

choice of when the amount is paid, the liability is allocated to the earliest period in

which the Trust can be required to pay.

The Trust 's Manager and Investment Manager are responsible for identifying and

controlling risks. The Board of Directors of the Manager is ult imately responsible for the

overall risk management approach within the Trust.

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20. FINANCIAL RISK AND MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

(f)

(g) Risk mitigation

-

-

-

-

The External Investment Manager will seek to reduce all these risks as associated with

the Trust by virtue of its experience, by adopting the analyt ical process and by

structuring a broadly diversified investment pool.

Selecting investments that are bank or government guaranteed or secured

against assets to mit igate default risk.

Lengthening or shortening the Trust 's average maturity period of the bonds/fixed

income investments (within the Trust 's objective) in anticipation of changing

interest rates.

Invest ing the Trust over a wide range of equit ies of different companies which

provides diversification across a number of sectors and industries, minimising the

risk not only of any single company's securit ies becoming worthless, but also of all

holdings suffering uniformly adverse business condit ions.

Monitoring and managing risks is primarily set up to be performed based on limits

established by the Manager and Trustee. These limits reflect the investment strategy

and market environment of the Trust as well as the level of the risk that the Trust is

willing to accept. In addit ion, the Trust monitors and measures the overall risk bearing

capacity in relat ion to the aggregate risk exposure across all risks type and activit ies.

The Trust has in investment guidelines that set out its overall business strategies, its

tolerance for risk and its general risk management philosophy. The Manager also has a

Compliance Department to ensure that the Trust complies with various regulat ions

and guidelines as st ipulated in its Trust Deed, the Securit ies Commission's Guidelines on

Unit Trust Funds and the Capital Markets and Services Act, 2007.

Actively monitoring the Trust 's asset allocation to ensure minimum impact from

any adverse market movements. The External Investment Manager will ensure

that the equit ies are carefully selected through company visits, fundamental

analysis and portfolio diversification.

The External Investment Manager (CIMB-Principal Asset Management Berhad) will

take reasonable steps to ensure that the above potential risks are managed by:

Risk measurement and reporting system

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20. FINANCIAL RISK AND MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

(g) Risk mitigation (contd.)

(h) Excessive risk concentration

21. CURRENCY

All amount are stated in Ringgit Malaysia ("RM").

Concentrat ion indicates the relat ive sensit ivity of the Trust 's performance to

developments affecting a part icular industry or geographical location.

Concentrat ions of risk arise when a number of financial instruments or contracts are

entered into with the same counterparty, or where a number of counterpart ies are

engaged in similar business activit ies, or activit ies in the same geographic region, or

have similar economic features that would cause their ability to meet contractual

obligations to be similarly affected by changes in economic, polit ical or other

condit ions.

When deemed appropriate and for the benefit of the Trust, the External Investment

Manager may take temporary defensive posit ions that may be inconsistent with the

Trust 's principal strategy in dealing with adverse market, economical, polit ical and

other condit ions.

In order to avoid excessive concentrat ion of risk, the Trust 's policies and procedures

include specific guidelines to focus on maintaining a diversified portfolio in

accordance with the Trust 's Trust Deed, Investment Manager's guidelines and the

Securit ies Commission's Guidelines on Unit Trust Funds. Portfolio diversification across a

number of sectors and industries minimises the risk not only of any single company's

securit ies becoming worthless but also of all holdings suffering uniformly adverse

business condit ions. Specifically, the Trust 's Trust Deed and Securit ies Commission's

Guidelines on Unit Trust Funds limits the Trust 's exposure to a single entity/industry

sector to a certain percentage of its NAV.

It is and has been throughout the current and previous financial year, the Trust 's

policy that no derivatives shall be undertaken for either investment risk

management purposes.

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CORPORATE INFORMATION

MANAGER AMANAH MUTUAL BERHAD (195414-U) BUSINESS OFFICE 34th Floor, Menara PNB 201-A, Jalan Tun Razak 50400 Kuala Lumpur Tel No: 03-2034 0800 Fax No: 03-2162 5958 / 2163 3212 CHIEF EXECUTIVE OFFICER Puan Aldilla @ Zilfalila binti Abdul Halim INVESTMENT COMMITTEE MEMBERS

1. Tan Sri Abdul Wahid bin Omar (Chairman/Non-Independent member)

2. Dato‟ Abdul Rahman bin Ahmad (Non-Independent member)

3. Dato‟ Noorizah binti Hj Abd Hamid (Independent member)

4. Puan Norlin binti Abdul Samad (Independent member)

SHARIAH COMMITTEE MEMBERS

1. Dato‟ Dr. Abdul Halim bin Ismail (Chairman)*

2. Prof. Datuk Dr. Syed Othman bin Syed Hussin Alhabshi

3. Prof. Dato‟ Dr. Abdul Monir bin Yaacob

4. Prof. Dato‟ Dr. Mahmood Zuhdi bin Hj Ab. Majid

5. Datuk Dr. Mohd Daud Bakar *Dato’ Dr. Abdul Halim bin Ismail has retired effective 1 January 2018.

TRUSTEE AmanahRaya Trustees Berhad (766894-T) Tingkat 4, Wisma TAS, No. 21, Jalan Melaka 50100 Kuala Lumpur PORTFOLIO MANAGER

CIMB-Principal Asset Management Berhad (304078-K)

10th Floor, Bangunan CIMB

Jalan Semantan

Bukit Damansara

50490 Kuala Lumpur