pmb shariah index fund · najmi bin haji mohamed ym tengku ahmad badli shah bin raja hussin chief...

PMB SHARIAH INDEX FUND

ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020

Islamic Fund Management Company (IFMC)

>>> ANNUAL REPORT - PMB SHARIAH INDEX FUND >>>

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Dear Unitholder,

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

mailto:[email protected]


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Dear Valued Customer

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

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

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

commercial transactions.

PMB INVESTMENT BERHAD respects and is committed to the protection of

your personal information and your privacy. This Personal Data Protection

Notice explains how we collect and handle your personal information in

accordance with the Malaysian Personal Data Protection Act 2010.

Please note that PMB INVESTMENT BERHAD may amend this Personal

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

of any such amendment via our website or by email.

Privacy Notice content involves matters concerning the processing of your

personal information by us in connection with your investment account

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

contents of the Privacy Notice in effect.

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

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

offices whether head office or other branches.

If you would like to obtain further information, please do not hesitate to

contact us at Customer Care Line 03-2785 9900.

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


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

HEAD OFFICE Level 20, 1 Sentral

Jalan Rakyat, Kuala Lumpur Sentral

Peti Surat 10701

50722 Kuala Lumpur

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

E-mail: [email protected]

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

Prof. Dr. Faridah binti Hj Hassan

Mansoor bin Ahmad

Nik Mohamed Zaki bin Nik Yusoff

Najmi bin Haji Mohamed

YM Tengku Ahmad Badli Shah bin Raja Hussin

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

Nik Mohamed Zaki bin Nik Yusoff

Prof. Dr. Mohamed Aslam bin Mohamed Haneef

TRUSTEE AMANAHRAYA TRUSTEES BERHAD

SHARIAH ADVISER BIMB SECURITIES SDN BHD

AUDITORS JAMAL, AMIN & PARTNERS

CORPORATE INFORMATION

mailto:[email protected]

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


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TABLE OF CONTENTS

1. FUND INFORMATION 6

1.1 FUND NAME 6

1.2 DATE OF LAUNCH 6

1.3 FUND CATEGORY/TYPE 6

1.4 FUND INVESTMENT OBJECTIVE 6

1.5 FUND PERFORMANCE BENCHMARK 6

1.6 FUND DISTRIBUTION POLICY 6

1.7 UNIT HOLDINGS AS AT 31 MARCH 2020 6

2. FUND PERFORMANCE DATA 7 – 8

2.1 PORTFOLIO COMPOSITION 7

2.2 PERFORMANCE DETAILS 7

3. MANAGER’S REPORT 9 – 27

3.1 FUND PERFORMANCE 9

3.2 INCOME DISTRIBUTION/UNIT SPLIT 10

3.3 CHARACTERISTIC AND COMPARISON OF

INVESTMENT COMPONENTS OF FBMSHA AS AT 31

MARCH 2020

10

3.4 POLICY AND INVESTMENT STRATEGY 10

3.5 ASSET ALLOCATION OF THE FUND 11

3.6 ECONOMIC REVIEW 12

3.7 EQUITY MARKET REVIEW 13


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TABLE OF CONTENTS 3.8 MONEY MARKET REVIEW 16

3.9 INTEREST OF UNIT HOLDERS 17

3.10 SOFT COMMISSIONS AND REBATES 17

4. TRUSTEE’S REPORT 28 5. SHARIAH ADVISER’S REPORT 29 6. STATEMENT BY MANAGER 30 7. AUDITOR’S REPORT 31 – 34 8. FINANCIAL STATEMENT 35 – 64 9. BUSINESS INFORMATION NETWORK 65 – 68 10. INFORMATION OF INVESTOR RELATION 69

11. INVESTOR PROFILE UPDATE FORM 70


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1. FUND INFORMATION

1.1 FUND NAME

PMB SHARIAH INDEX FUND – PMB SIF.

1.2 DATE OF LAUNCH 15 Januay 2013.

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

1.4 FUND INVESTMENT OBJECTIVE The objective of the Fund is to provide investors with an opportunity to

gain reasonable return and capital growth in the medium to long term period by investing in Shariah-compliant securities whilst at the same time the Manager will attempt to match closely its performance with the

performance of the FBMSHA.

1.5 FUND PERFORMANCE BENCHMARK

FTSE Bursa Malaysia EMAS Shariah Index (FBMSHA)

1.6 FUND DISTRIBUTION POLICY The distribution is annual, subject to the total returns of the Fund,

availability of income for the financial period, cash flow of the distribution and stability and sustainability of the distributon of returns. The distribution of income, if any, will be made in the form of cash or additional units.

1.7 UNIT HOLDINGS AS AT 31 MARCH 2020

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

Held %

5,000 and below 2,016 78.26 3,541,571.11 12.29

5,001 - 10,000 291 11.29 2,077,647.01 7.21

10,001 - 50,000 240 9.32 4,152,513.60 14.41

50,001 - 500,000 27 1.05 2,162,981.90 7.51

500,001 and above 2 0.08 16,881,150.00 58.58

Total 2,576 100.00 28,815,863.62 100.00

* Note: Excluding manager’s unit


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2. FUND PERFORMANCE DATA 2.1 PORTFOLIO COMPOSITION

2.2 PERFORMANCE DETAILS

* Source: Lipper

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

Past performance is not necessarily indicative of future performance,

unit prices and investment returns may fluctuate.

FINANCIAL YEAR ENDED 31 MARCH SECTOR 2020 2019 2018 Main Market % % % Consumer Products & Services 1.95 12.46 5.90 Industrial Products & Services 7.48 9.84 17.08

Construction 5.91 4.60 4.20 Trade & Services - - 43.15 Financial Services 1.42 1.16 0.25 Property 3.42 2.53 2.92

Islamic Real Estate Investment Trust (i-REIT)

- 1.08 0.88

Energy 6.96 3.08 - Healthcare 8.95 12.86 -

Telecommunications & Media 14.78 13.63 - Transportation & Logistic 3.56 4.18 - Utilities 14.64 15.68 - Infrastructure - - 0.60

Plantation 10.35 11.86 13.71 Technology 2.52 1.09 2.35 Ace Market Technology 1.26 - -

Quoted Shariah-compliant Warrant - - 0.01

Islamic Deposit / Cash / Others 16.80 5.95 8.95

Total 100.00 100.00 100.00

FINANCIAL YEAR ENDED 31 MARCH 2020 2019 2018 Net Asset Value (NAV) - xD (RM‘000) 11,410 12,913 14,413

Unit in circulation (‘000) 28,816 28,822 28,517

NAV per unit - xD (RM) 0.3960 0.4480 0.5054

NAV per unit - xD: Highest (RM) 0.4874 0.5150 0.5303

NAB Seunit - xD: Lowest (RM) 0.3718 0.4406 0.4878

Total Return * (%) (8.04) (8.29) 5.80

- Capital Growth * (%) (11.61) (11.36) 3.25

- Income Return (%) (3.57) (3.07) 2.55

Gross Distribution per unit (sen) ^ 1.60 1.55 1.25

Net Distribution per unit (sen) ^ 1.60 1.55 1.25

Management Expenses Ratio (MER) ¹

(%) 0.75 0.72 0.82

Portfolio Turnover Ratio (PTR) ² (times) 0.93 0.53 0.21


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2.2 PERFORMANCE DETAILS (CONT.) ¹ MER for PMB SIF was slightly up by 0.03 percentage points to 0.75% from

0.72% in the corresponding period last year. The increase due to reduction in the average size of fund by 2.34% to RM13.31 million from RM13.63 million. Meanwhile, total expenditure was unchanged.

² The PTR percentage increased by 75.50% to 0.93 times from 0.53 times

for the financial year ended 31 March 2020, as compared to the same period of the previous year. This was due to the increasing buy and sell of

shares activities in line with the market conditions during the reviewed period. Purchase and sell activities were carried out based on a changing investment strategy in accordance with market conditions.

* AVERAGE TOTAL RETURN (31 MARCH)

1-year 3-year 5-year PMB SIF (8.01%) (3.72%) (2.81%)

BENCHMARK (13.51%) (7.60%) (5.09%)

* ANNUAL TOTAL RETURN (31 MARCH)

2020 2019 2018 2017 2016 PMB SIF (8.04%) (8.29%) 5.80% 0.58% (3.39%)

BENCHMARK (13.54%) (11.66%) 3.27% 2.50% (4.75%)

* Source: Lipper

Past performance is not necessarily indicative of future performance,

unit prices and investment returns may fluctuate.


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3. MANAGER’S REPORT

We are pleased to present the Manager‘s report of PMB SIF for the financial year ended 31 March 2020 (1 April 2019 until 31 March 2020).

3.1 FUND PERFORMANCE

Fund has met its objective, which is to gain reasonable return and capital growth in the long term period. However, for the medium term not met.

Based on data from Lipper, the Fund's returns for 10-year recorded an increase of 28.47%. Meanwhile for 5 and 3-year period, the Fund recorded a negative return of 13.29% and 10.77% respectively. For the 1-year financial period, the Fund's return fell by -8.04%.

Fund‘s performance measured against benchmark FBMSHA for 3-year

ended 31 March 2020 is as follows:-

The graph illustrates the movement of the Fund‘s return against the benchmark. For the 3-year period ended 31 March 2020, the Fund‘s

NAV/unit decreased 10.77% whereas its benchmark also decreased 21.12%.

The graph illustrates the movement of the Fund‘s return against the benchmark. For the 5-year period ended 31 March 2020, the Fund‘s

NAV/unit recorded a negative return of 13.29%. In comparison, its benchmark fell 22.99%.

For 1-year financial period ended 31 March 2020, NAV/unit decreased by

RM0.0360 or -8.04% to RM0.4120 (cD) from RM0.4480 (xD) as at 31 March 2019.

Source: Lipper

Source: Lipper


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3.2 INCOME DISTRIBUTION/UNIT SPLIT

The Fund has declared an income distribution of 1.60 sen (net) per unit in

the form of new unit except for Yayasan Sarawak (cash) for the financial year ended 31 March 2020. The Fund did not carry out any unit split exercise during the financial year

ended 31 March 2020.

3.3 CHARACTERISTIC AND COMPARISON OF INVESTMENT COMPONENTS OF FBMSHA AS AT 31 MARCH 2020 The FBM Shariah comprises the constituents that are Shariah-compliant according to the Shariah Advisory Council (SAC) of the Securities Commission Malaysia (SC) screening methodology. The FBM Shariah has been designed to provide investors with a broad benchmark for Shariah-

compliant investment. It was launched on 22 January 2007 and developed using a base value of 6,000 as of 31 March 2006. As of 31 March 2020, FBM Shariah contains 180 components.

Industry Breakdown* %

Components FBMSHA

% Components

PMB SIF 31/3/20 31/3/20 31/3/19

Shariah-compliant Equity Consumer Products & Services 14.06 1.95 12.46 Industrial Products & Services 8.77 7.48 9.84 Construction 4.12 5.91 4.60 Financial Services 1.01 1.42 1.16

Property 2.33 3.42 2.53 Plantation 12.60 10.35 11.86 Technology 3.17 2.52 1.09 Energy 5.73 6.96 3.08

Healthcare 11.95 8.95 12.86 Utilities 16.06 14.64 15.68 Transportation & Logistics 4.23 3.56 4.18 Telecommunications & Media 15.42 14.78 13.63

ACE Market : Technology - 1.26 -

99.45 83.20 92.97 Islamic Real Estate Investment Trust (i-REIT)

0.55 - 1.08

Islamic Deposits and others - 16.80 5.95

Total 100.00 100.00 100.00

* the industry breakdown is based on the classification by Bursa Malaysia

3.4 POLICY AND INVESTMENT STRATEGY It is a passively managed index fund whereby the Fund Manager

constructs the Fund‘s investment portfolio based on an index sampling approach by investing not less than 60% of the Fund‘s NAV in the top 15 constituent stocks of the FBM Shariah that represent approximately 64%

of the market capitalization of the index. The balance will be invested in the next remaining constituent stocks of FBM Shariah and any other Shariah-compliant securities listed on Bursa Malaysia. The Fund shall invest in the Shariah–compliant equity at 90% to 99.5% of its NAV.


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3.4 POLICY AND INVESTMENT STRATEGY (CONT.)

* the industry breakdown is based on the classification by Bursa Malaysia

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

ASSET ALLOCATION

31 March 2020 (%)

31 March

2019 (%)

Change (%)

Investment Exposure Average

(%) Shariah-compliant Equity 83.20 92.97 (9.77) 88.09

Islamic Real Estate Investment Trust (i-REIT)

- 1.08 (1.08) 0.54

Islamic Deposits/ cash/

others 16.80 5.95 10.85 11.37

As at 31 March 2020, 83.20% of the Fund‘s NAV was invested in Shariah-

compliant equity market. The balance of 16.80% was held in Islamic deposits and/or other permitted investments.

Top 15 Constituents Of The FBMSHA Versus Top 15 Stocks Of The Fund As At 31 March 2020

Constituent % FBMSHA % PMB SIF

1. Tenaga Nasional Bhd 12.91 9.57 2. Sime Darby Plantation Bhd 4.85 4.78

3. Digi.Com Bhd 4.39 4.57

4. IHH Healthcare Bhd 4.22 0.00

5. Axiata Group Bhd 4.14 4.18

6. Maxis Bhd 4.04 3.98

7. Petronas Chemicals Group Bhd 3.93 4.74

8. Dialog Group Bhd 3.83 3.82

9. IOI Corporation Bhd 3.49 3.90

10. PPB Group Bhd 3.03 0.00

11. Top Glove Corp Bhd 3.00 3.50

12. MISC Bhd 2.94 3.56

13. Hartalega Holdings Bhd 2.78 2.48

14. Kuala Lumpur Kepong Bhd 2.66 0.00

15. Petronas Gas Bhd 2.42 3.31

62.64 52.39

Other constituents 36.81 30.83

Shariah-compliant Equity 99.45 83.22

Islamic Real Estate Investment Trust (i-REIT) 0.55 -

Liquidity - 16.78

Total 100.00 100.00


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3.6 ECONOMIC REVIEW The Malaysian economy was driven by higher private sector spending (7.4%; 3Q 2019: 5.4%) in the fourth quarter of 2019. Private consumption

grew strongly by 8.1% (3Q 2019: 7.0%), while private investment registered a higher growth of 4.2% (3Q 2019: 0.3%). However, growth was affected by supply disruptions in the commodities sector. Consequently, the Malaysian economy expanded by 3.6% in the fourth

quarter of 2019. On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 0.6% (3Q 2019: 0.9%). For 2019 as a whole, the economy expanded by 4.3% (2018: 4.7%). During the quarter, headline inflation averaged lower mainly reflecting the lapse in the impact from

Sales and Services Tax (SST) implementation. Core inflation, excluding the impact of consumption tax policy changes, was stable at 1.4%.

The Ringgit appreciated by 2.3% against the US Dollar in the fourth

quarter, supported mainly by the resumption in non-resident portfolio inflows. This was due to improved investor sentiments following positive developments on global trade negotiations. Synchronised policy rate cuts

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

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

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

Net financing expanded by 4.7% on an annual basis, supported by

sustained growth in outstanding loans. Growth in outstanding business loans improved, while outstanding household loans grew at a stable pace. Demand for both business and household loans sustained its momentum

from improvements since the second quarter. However, growth of outstanding corporate bonds moderated slightly amid higher redemptions.

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

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

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

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

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

the absence of strong demand pressures.


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3.6 ECONOMIC REVIEW ( CONT.)

Gross Domestic Product (GDP) Growth For 4th Quarter 2019

(Source: Bank Negara Malaysia Website)

Inflation Overall, inflation went up by 1.0% for 1-year period ended February 2020, higher

than 0.5% growth recorded during the same period in the preceding year. The slower growth for 1-year period ended February 2020 was due to the drop in transport (-1.4%).

Industrial Production Index (IPI) IPI in February 2020 registered a growth of 5.8% over the same month in the

previous year. The growth in February 2020 was driven by the increase in all sectors; electricity (6.8%), mining (6.1%) and manufacturing (5.6%).

Balance of Trade For 1-year period ended February 2020, trade surplus stood at RM139.2 billion,

an expansion of RM15.0 billion (+12.0%) when compared to the same period a year ago. Total trade for 1-year period ended February 2020 which was valued at RM1,846.8 billion, a drop of RM22.8 billion (-1.2%) when compared to RM1,869.6

billion at the same period a year ago. For the same period, total export shrunk 0.4% to RM993.0 billion while total import also shrunk 2.2% to RM853.8 billion.

(Source: Department of Statistics Malaysia, Official Portal)

3.7 EQUITY MARKET REVIEW

For the year ending 31 March 2020, the main benchmark for the

Malaysian Shariah-compliant equity, FBM Shariah Index, had dropped by -1,582.98 points or -13.54% to 10,105.08 while the main benchmark for

Malaysian stock market, FBM KLCI, had dropped by -292.74 points or -17.81% to 1,350.89.

During that period, the FBM Shariah Index recorded its highest level of

12,334.29 on 4 July 2019 and its lowest of 9,120.49 on 19 March 2020. Meanwhile, FBM KLCI posted its highest level of 1,691.00 on 2 July 2019 while the lowest level of 1,219.72 was recorded on 19 March 2020. The

movement range for the FBM Shariah Index during the stipulated financial period was 3,213.80 points as compared to 2,362.98 points during the same period in the previous year.

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

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

+8.1% +7.0% +8.5%

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

+1.3% +1.0% +4.0%

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

-0.7% -3.7% +0.3%

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

Mining & Quarrying

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

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


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3.7 EQUITY MARKET REVIEW ( CONT.)

Market continues to weaken in April 2019 as it lacked fresh catalyst.

Moreover, market was weighed down by FTSE Russel announcement that Malaysia was under its watchlist for potential removal from WGBI (FTSE

World Government Bond Index). Malaysia — currently assigned a '2' and included to the WGBI since 2004, is being considered for a potential downgrade to '1' which would render Malaysia ineligible for inclusion in the WGBI. If this materialize, Malaysia is facing fund outflow of USD6.0 billion

to USD8.0 billion or approximately RM24.0 billion to RM33.0 billion and this would consequently put pressure on Malaysian Ringgit.

Foreign funds staged a commendable return to Bursa in last week of May after the deadlock in trade talks since the start of May had caused disarray

in the markets. Trade talks failed after US raised levies to 25% from 10% on $200 billion worth of Chinese goods and Beijing retaliated by imposing higher tariffs on $60 billion worth of U.S. goods.

Trade tensions between China and the US escalated further after the U.S. Commerce Department moved to add Huawei and 70 affiliates to its so-

called "Entity List", effectively banning the Chinese telecoms giant from buying parts and components from U.S. companies without a government approval. However, US temporarily eased restrictions on China's Huawei Technologies. Washington granted Huawei Technologies Co Ltd a licence

to purchase U.S. goods until August 2019, a move intended to give telecom operators that rely on the Chinese firm time to make other arrangements.

Domestically, Bank Negara Malaysia (BNM) had cut its overnight policy

rate (OPR) by 25 basis points to 3.00%, its first since 2016. Meanwhile, Malaysia's economy in the first three months of the year grew at a slower pace at 4.5% than the prior quarter of 4.7%.

The stock market rallied in June, boosted by U.S.-China trade optimism and dovish comments from the various central banks. However, the stock

market closed lower in July, August and September despite Malaysia posted Gross Domestic Product (GDP) growth of 4.9% for the second quarter of 2019. The contributing factors were mainly due to uninspiring second quarter Malaysia‘s corporate earnings, the 10-year US treasury

yield inverted and briefly fell below the 2-year yield, tit-for-tat retaliation between US and China had escalated the trade tensions, geopolitical concerns and China allowed the yuan to weaken beyond 7 per US dollar.

In October, the FBMKLCI up 14.07 points or 0.9% month-on-month (MoM)

as key banking heavyweights led gains after the US central bank cut rates for the third time in 2019 by 25 basis points. In addition, the U.S. and China agreed to finalise the first phase of a trade agreement, which includes a pause in tariff escalation and China buying U.S. agriculture

products. The IMF cut its global growth forecast for 2019 to 3.0% from 3.2% due to falling manufacturing activity and trade. The forecast for 2020 was lowered to 3.4% from 3.6%. Locally, the budget 2020 was considered as an expansionary budget and market neutral.


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The third-quarter corporate earnings reporting season had been somewhat

underwhelming, yielding a mixed bag of results and few catalysts to drive the market. Externally, hopes of a Sino-US trade deal were dimmed after

China warned the US of retaliation after US President Donald Trump signed the Hong Kong Bill. Also, worries remained as some reports suggested Beijing and Washington were unable to agree on terms of tariff rollbacks and President Donald Trump threatened fresh tariffs.

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

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

Profit-taking and selling pressure continued to drag the local blue-chip benchmark FBM KLCI lower in January 2020, with investors seemingly

reluctant to make significant moves amid lack of positive catalyst to spur the local market sentiment. Market sentiment was also rattled by the geopolitical tension between US - Iran and the outbreak of a new coronavirus stemming from Wuhan, China. World Health Organization

(WHO) declared a global health emergency but did not recommend restricting the movement of people and goods and said the country had the situation under control. The World Bank projected Malaysia's economic growth to inch down to 4.5% in 2020 and 2021, with weak

export expansion partly offset by strong domestic demand. Meanwhile, BNM cut OPR to 2.75% in pre-emptive measures to secure improving growth trajectory.

The stock market extended its sell-off in February in a volatile session, as a domestic political crisis and the widening spread of the coronavirus

heightened pessimism among investors. After Pakatan Harapan (PH) lost its Parliamentary majority, Tun Dr. Mahathir tendered his resignation as Prime Minister. However, he was appointed as Interim Prime Minister by the King. The political turmoil plaguing Malaysia was resolved when the

King appointed Tan Sri Muhyiddin Yassin as Malaysia‘s 8th Prime Minister. On the economic front, Malaysia‘s economy expanded by 3.6% in the 4Q 2019, dragging the full-year GDP growth to 4.3%, the lowest since the 2009 financial crisis amid supply disruptions in the commodity sector

during the quarter. Meanwhile, 4Q2019 corporate earnings saw more disappointing performances than outperformances.

In March 2020, FBMKLCI tumbled -8.9% MoM to close at 1,350.89 (rebounding off low of 1,220). The FBMKLCI Index started the month on a

weaker tone due to (a) the rising number of COVID-19 infections across the region had reduced investors‘ appetite for riskier assets, (b) oil prices tanked after OPEC led by Saudi Arabia, failed to reach agreement with the world‘s No. 2 oil producer Russia to deepen production cuts and later on Saudi Arabia initiated a price war, (c) WHO termed the coronavirus

outbreak a pandemic, and (d) The Dow Jones Industrial Average closed 2,352.60 points lower, or 9.99%, at 21,200.62 on 12 March, its worst drop since the 1987 ―Black Monday‖ market crash, when it collapsed by more than 22%.


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By mid-month, FBMKLCI rallied on the news that (a) US Federal Reserve

pledged an unlimited quantitative easing to stabilise the economy, (b) US Senate approved the $2 trillion fiscal stimulus package for the economy, (c) Malaysia has unveiled a landmark comprehensive rescue plan worth a total of RM250 billion, and (d) Securities Commission and Bursa Malaysia have suspended short selling until 30th April.

In this volatile market sentiment, the NAV/unit decreased by 8.04% within a 1-year period ended 31 March 2020.


3.8 MONEY MARKET REVIEW Throughout 1-year period ended 31 March 2020, the Monetary Policy

Committee (MPC) of BNM decided to reduce the OPR by 25 basis points to 2.50% in their meeting held on 3 March 2020. The ceiling and floor rates of the corridor of the OPR are correspondingly reduced to 2.75% and 2.25%, respectively.

Global economic conditions have weakened in the recent period. The ongoing COVID-19 outbreak has disrupted production and travel activity, especially within the region. This has also led to greater risk aversion, resulting in tighter financial conditions and a resurgence in financial market

volatility. Downside risks to the global growth outlook have increased, particularly in the near term. However, a number of countries have implemented policy responses. With further anticipated policy measures, these actions are expected to mitigate the economic impact of COVID-19.

The Malaysian economy grew at a moderate pace of 4.3% in 2019. Looking ahead, growth, particularly in the first quarter, will be affected by the COVID-19 outbreak primarily in the tourism-related and manufacturing sectors. The weakness in the agriculture sector is also likely to persist in

the first quarter. For 2020, private and public sector activities will be supportive of growth. Household spending is expected to grow at a slower pace amid moderate employment and income growth. Investment activity is projected to record a modest recovery, underpinned by ongoing and

new projects, both in the public and private sectors. The 2020 economic stimulus package will also provide some support to economic activity. Although domestic growth is expected to gradually improve in the second half of the year, there are key downside risks, mainly stemming from the

evolving nature and prolonged impact of the COVID-19 outbreak, and continued weakness in commodity-related sectors.

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

modest. The trajectory of headline inflation will be dependent on global oil and commodity price developments and the timing of the lifting of the domestic retail fuel price ceilings. Underlying inflation is expected to be

more moderate, amid limited demand pressures despite the continued expansion in economic activity.

The reduction in the OPR is intended to provide a more accommodative monetary environment to support the projected improvement in economic

growth amid price stability. The MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation.



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

materially affect any interest of the unit holders other than business

transaction in accordance with the limitations imposed under the Deeds, Securities Commission‘s Guidelines, the Capital Markets and Services Act 2007 and other applicable laws during the financial period then ended.

3.10 SOFT COMMISSIONS AND REBATES During the 1-year financial period ended 31 March, the Fund Manager

received services from one of the stockbroking institutions that indirectly

assists in the decision-making process pertaining to the fund's investment. The services received are in the form of advisory services on Shariah matters. In addition, the Fund Manager also received soft commission from brokers in term of software and computer hardware related to fund‘s

investment, stock market and economic matters.


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3. LAPORAN PENGURUS

Bagi tempoh kewangan berakhir 31 Mac 2020 (1 April 2019 hingga 31

Mac 2020).

3.1 PRESTASI DANA PMB Shariah Index Fund telah mencapai objektifnya, iaitu untuk memperolehi pulangan yang berpatutan dan pertumbuhan modal dalam

jangka panjang. Walau bagaimanapun, untuk jangka sederhana Dana tidak dapat mencapai objektifnya. Berdasarkan data daripada sumber

Lipper, pulangan Dana untuk jangkamasa 10-tahun mencatat pulangan

sebanyak 28.47% manakala bagi jangkamasa 5 dan 3-tahun Dana masing-masing mencatat penyusutan sebanyak 13.29% dan 10.77%.

Untuk tempoh setahun kewangan berakhir 31 Mac 2020, pulangan Dana menyusut sebanyak 8.04%.

Prestasi Dana berbanding tanda aras sejak bagi tempoh 3-tahun adalah seperti berikut:-

Graf di atas mencerminkan pergerakan pulangan Dana untuk jangkamasa 3-tahun berakhir 31 Mac 2020. Sepanjang tempoh tersebut, NAB/unit Dana menyusut 10.77% berbanding penyusutan penanda aras sebanyak 21.12%.

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

Graf di atas mencerminkan pergerakan pulangan Dana untuk jangkamasa 5-tahun berakhir 31 Mac 2020. Sepanjang tempoh tersebut, NAB/unit Dana menyusut 13.29% berbanding penyusutan penanda aras sebanyak 22.99%.

Sepanjang tempoh setahun kewangan berakhir 31 Mac 2020, NAB/unit Dana menyusut sebanyak RM0.0360 atau -8.04% kepada RM0.4120 (cD) daripada RM0.4480 (xD) pada 31 Mac 2019.

Sumbe r: Lipper

Sumber: Lipper


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3.2 PENGAGIHAN PENDAPATAN/TERBITAN UNIT PECAHAN Bagi tahun kewangan berakhir 31 Mac 2020, Dana telah mengisytiharkan

pengagihan pendapatan dalam bentuk unit sebanyak 1.60 sen (bersih) seunit kecuali Yayasan Sarawak (tunai).

Tiada sebarang unit pecahan dicadangkan sepanjang tempoh setahun kewangan berakhir 31 Mac 2020.

3.3 CIRI-CIRI DAN PERBANDINGAN KOMPONEN PELABURAN DANA DENGAN TANDA ARAS FBMSHA PADA 31 MAC 2020 FBM Shariah mengandungi komponen yang berlandaskan Syariah seiring dengan metodologi penapisan Majlis Penasihat Syariah Suruhanjaya Sekuriti Malaysia (MPSSS). FBM Shariah telah direka untuk memberi para pelabur satu penanda aras yang menyeluruh bagi pelaburan patuh

Syariah. Ianya telah dilancarkan pada 22 Januari 2007 dan menggunapakai nilai asas di paras 6,000 pada 31 Mac 2006. Setakat 31 Mac 2020, FBM Shariah mengandungi 180 komponen.

Pecahan Industri* %

Komponen FBMSHA

% Komponen

PMB SIF 31/3/2020 31/3/2019 31/3/19

Ekuiti Patuh Syariah Barangan Pengguna & Perkhidmatan 14.06 1.95 12.46 Barangan Industri & Perkhidmatan 8.77 7.48 9.84

Pembinaan 4.12 5.91 4.60 Perkhidmatan Kewangan 1.01 1.42 1.16 Hartanah 2.33 3.42 2.53 Perladangan 12.60 10.35 11.86

Teknologi 3.17 2.52 1.09 Tenaga 5.73 6.96 3.08 Penjagaan Kesihatan 11.95 8.95 12.86 Utiliti 16.06 14.64 15.68

Pengangkutan & Logistik 4.23 3.56 4.18 Telekomunikasi & Media 15.42 14.78 13.63 Pasaran ACE : Teknologi - 1.26 -

99.50 83.20 92.97 Amanah Pelaburan Hartanah Islam (i-REIT)

0.55 - 1.08

Deposit Islam dan lain-lain - 16.80 5.95

Total 100.00 100.00 100.00 *Pecahan industri adalah berdasarkan klasifikasi oleh Bursa Malaysia

3.4 POLISI DAN STRATEGI PELABURAN

Dana diurus secara pasif yang mana Pengurus membina portfolio pelaburan berdasarkan pendekatan pensampelan indeks dengan melabur tidak kurang 60% daripada nilai aset bersih Dana dalam 15 saham utama komponen FBM Shariah yang mewakili lebih kurang 64% modal pasaran FBM Shariah. Selebihnya dana dilabur dalam lain-lain saham komponen FBM Shariah dan lain-lain sekuriti patuh Syariah dalam pasaran modal Malaysia. Dana melabur dalam ekuiti patuh Syariah antara 90% hingga 99.5% daripada nilai aset bersih.


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3.4 POLISI DAN STRATEGI PELABURAN ( SAMB.)

*Pecahan industri adalah berdasarkan klasifikasi oleh Bursa Malaysia

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

PECAHAN SEUNIT MENGIKUT KELAS ASET

31 Mac 2020 (%)

31 Mac 2019 (%)

Perubahan

Peratus Mata

Purata Pendedahan

Pelaburan (%)

Ekuiti Patuh Syariah 83.20 92.97 (9.77) 88.09

Amanah Pelaburan Hartanah Islam (i-REIT)

- 1.08 (1.08) 0.54

Deposit Islam dan lain-lain 16.80 5.95 10.85 11.37

Pada 31 Mac 2020, pegangan ekuiti patuh Syariah Dana ialah sebanyak 83.20%. Baki 16.80% berada dalam deposit Islam dan pelaburan-pelaburan

lain yang dibenarkan.

15 Saham Konstituen Terbesar FBMSHA Berbanding PMB SIF Pada 31 Mac 2020

Saham Konstituen % FBMSHA % PMB SIF

1. Tenaga Nasional Bhd 12.91 9.57 2. Sime Darby Plantation Bhd 4.85 4.78

3. Digi.Com Bhd 4.39 4.57

4. IHH Healthcare Bhd 4.22 0.00

5. Axiata Group Bhd 4.14 4.18

6. Maxis Bhd 4.04 3.98

7. Petronas Chemicals Group Bhd 3.93 4.74

8. Dialog Group Bhd 3.83 3.82

9. IOI Corporation Bhd 3.49 3.90

10. PPB Group Bhd 3.03 0.00

11. Top Glove Corp Bhd 3.00 3.50

12. MISC Bhd 2.94 3.56

13. Hartalega Holdings Bhd 2.78 2.48

14. Kuala Lumpur Kepong Bhd 2.66 0.00

15. Petronas Gas Bhd 2.42 3.31

62.64 52.39

Saham –saham Konstituen lain 36.81 30.83

Ekuiti Patuh Syariah 99.45 83.22

Amanah Pelaburan Hartanah Islam (i-REIT) 0.55 -

Kecairan - 16.78

Jumlah 100.00 100.00


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3.6 SUASANA EKONOMI NEGARA Ekonomi Malaysia telah dipacu oleh perbelanjaan sektor swasta yang lebih tinggi (7.4%; S3 2019: 5.4%) pada suku keempat 2019. Penggunaan swasta meningkat dengan kukuh sebanyak 8.1% (S3 2019: 7.0%), manakala pelaburan swasta mencatatkan pertumbuhan yang lebih tinggi

sebanyak 4.2% (S3 2019: 0.3%). Walau bagaimanapun, pertumbuhan telah menerima kesan daripada gangguan bekalan dalam sektor komoditi. Berikutan itu, ekonomi Malaysia berkembang sebanyak 3.6% pada suku keempat 2019. Berdasarkan pelarasan bermusim suku tahunan, ekonomi

meningkat sebanyak 0.6% (S3 2019: 0.9%). Bagi keseluruhan tahun 2019, ekonomi negara berkembang sebanyak 4.3% (2018: 4.7%). Pada suku keempat, purata inflasi keseluruhan adalah lebih rendah, mencerminkan terutamanya luputnya kesan daripada pelaksanaan Cukai

Jualan dan Perkhidmatan (Sales and Services Tax, SST). Inflasi teras, yang tidak mengambil kira kesan perubahan dasar cukai penggunaan, stabil pada kadar 1.4%.

Ringgit menambah nilai sebanyak 2.3% berbanding dengan Dollar

Amerika Syarikat (AS) pada suku keempat, disokong terutamanya oleh aliran masuk semula portfolio bukan pemastautin. Hal ini disebabkan oleh sentimen pelabur yang bertambah baik berikutan perkembangan yang positif dalam rundingan perdagangan global. Langkah yang diambil oleh

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

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

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

global yang bertambah lemah.

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

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

sederhana sedikit berikutan penebusan yang lebih tinggi.

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

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

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


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

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

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

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

(Sumber: Laman sesawang Bank Negara Malaysia)

Pertumbuhan Keluaran Dalam Negara Kasar Malaysia untuk Suku Keempat 2019


Inflasi Secara keseluruhannya, inflasi berkembang pada kadar 1.0% untuk

tempoh setahun berakhir Februari 2020 lebih tinggi berbanding 0.5% yang dicatat dalam tempoh yang sama tahun lalu. Pertumbuhan inflasi yang perlahan ini ekoran penyusutan dalam kumpulan pengangkutan (-1.4%).

Indeks Pengeluaran Perindustrian (IPP) IPP meningkat sebanyak 5.8% pada bulan Februari 2020 berbanding

bulan yang sama tahun sebelumnya. Pertumbuhan pada bulan Februari 2020 disokong oleh pertumbuhan dalam semua indeks; elektrik (6.8%),

pembuatan (5.6%) dan perlombongan (6.1%).

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

Malaysia mencecah nilai RM139.2 bilion berkembang RM15.0 bilion (+12.0%) berbanding tempoh yang sama tahun sebelumnya. Jumlah perdagangan untuk tempoh 1-tahun berakhir Februari 2020 bernilai RM1,846.8 bilion menguncup RM22.8 bilion (-1.2%) berbanding RM1,869.6 bilion yang dicatatkan dalam tempoh yang sama tahun lepas.

Untuk tempoh yang sama, jumlah eksport menguncup 0.4%, mencecah nilai RM993.0 bilion manakala jumlah import turut menguncup 2.2%, mencecah nilai RM853.8 bilion.

(Sumber data: Portal Rasmi Jabatan Perangkaan Malaysia)

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

Pertanian -5.7% +3.7% -0.4%

Penggunaan Akhir Swasta

+8.1% +7.0% +8.5%

Pembinaan +1.0% -1.5% +2.6%

Penggunaan Akhir

Kerajaan

+1.3% +1.0% +4.0%

Perkhidmatan +6.1% +5.9% +6.9%

Pembentukan Modal Tetap Kasar

-0.7% -3.7% +0.3%

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

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


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3.7 SUASANA BURSA SAHAM TEMPATAN Bagi tempoh setahun berakhir 31 Mac 2020, penanda aras utama ekuiti

patuh Syariah Malaysia iaitu Indeks FBM Shariah menurun 1,582.98 mata atau -13.54 % kepada 10,105.08 manakala penanda aras utama Bursa

Malaysia iaitu FBM KLCI menurun 292.74 mata atau -17.81% kepada 1,350.89.

Bagi tempoh tersebut, Indeks FBM Shariah mencatat paras tertinggi 12,334.29 pada 4 Julai 2019 dan paras terendah 9,120.49 pada 19 Mac

2020. Sementara itu, FBM KLCI mencatat paras tertinggi 1,691.00 pada 2 Julai 2019 manakala paras terendah pula ialah 1,219.72 yang dicatat pada 19 Mac 2020. Julat pergerakan Indeks FBM Shariah untuk tempoh tersebut ialah 3,213.8 mata berbanding 2,362.98 mata pada tempoh yang

sama tahun sebelumnya.

Pada bulan April 2019, pasaran saham berterusan lemah akibat kekurangan pemangkin baru di pasaran. Satu lagi faktor yang kurang memberangsangkan membabitkan tindakan penyedia indeks global FTSE

Russell yang meletakkan Malaysia dalam senarai pemantauannya. Pada masa ini, Malaysia yang diberikan kedudukan ‗2‘ (tahap akses tertinggi) Indeks Bon Kerajaan Dunia FTSE (WGBI) semenjak tahun 2004, berpotensi dipertimbang untuk diturunkan kepada tahap ‗1‘ yang akan

menjadikan Malaysia tidak lagi layak untuk disenaraikan dalam WGBI. Sekiranya hal ini terjadi, Malaysia berdepan risiko aliran keluar dana berjumlah AS$6 bilion hingga AS$8 bilion atau kira-kira RM24 hingga RM33 bilion dan hal ini boleh memberi tekanan kepada Ringgit Malaysia.

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

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

Ketegangan perdagangan antara China dan AS terus meningkat selepas

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

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

alternatif lain.

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

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


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3.7 SUASANA BURSA SAHAM TEMPATAN (SAMB.)

Pasaran saham melonjak pada bulan Jun, didorong oleh keyakinan

terhadap perdagangan A.S.-China dan ulasan yang menjurus kepada pelonggaran dasar dari pelbagai bank pusat. Walau bagaimanapun, pasaran saham ditutup rendah pada bulan Julai, Ogos dan September walaupun Malaysia mencatatkan pertumbuhan Keluaran Dalam Negara

Kasar (KDNK) 4.9% pada suku kedua 2019. Di antara faktor penyumbang kejatuhan disebabkan oleh keputusan korporat Malaysia suku kedua yang kurang memberangsangkan, hasil perbendaharaan AS untuk 10 tahun menyongsang atau lebih rendah berbanding hasil 2 tahun, tindakan saling

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

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

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

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

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

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

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

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

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

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

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

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

Pengambilan untung dan tekanan jualan terus mengheret indeks penanda

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

untuk merangsang sentimen pasaran tempatan. Sentimen pasaran juga terkesan oleh ketegangan geopolitik antara AS - Iran dan wabak koronavirus baru yang berpunca dari Wuhan, China.


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3.7 SUASANA BURSA SAHAM TEMPATAN (SAMB.)

Pertubuhan Kesihatan Sedunia (WHO) mengisytiharkan kecemasan

kesihatan global tetapi tidak mencadangkan menghadkan pergerakan manusia dan barangan dan berkata keadaan adalah terkawal. Bank Dunia

mengunjurkan pertumbuhan ekonomi Malaysia mencapai 4.5% pada tahun 2020 dan 2021, dengan perkembangan eksport yang lemah diimbangi oleh permintaan domestik yang kukuh. Sementara itu, BNM memotong OPR kepada 2.75% dalam langkah-langkah awal untuk

memastikan peningkatan pertumbuhan.

Penjualan saham di pasaran berterusan pada bulan Februari dalam

dagangan yang tidak menentu, ekoran berlakunya krisis politik domestik dan penyebaran wabak koronavirus telah meningkatkan keadaan yang pesimis di kalangan pelabur. Selepas Pakatan Harapan (PH) kehilangan majoriti di Parlimen, Tun Dr. Mahathir mengemukakan peletakan

jawatannya sebagai Perdana Menteri. Walau bagaimanapun, beliau dilantik sebagai Perdana Menteri Interim oleh Yang Dipertuan Agong. Kemelut politik yang melanda Malaysia telah diselesaikan apabila Yang Dipertuan Agong melantik Tan Sri Muhyiddin Yassin sebagai Perdana

Menteri Malaysia ke-8. Mengenai ekonomi, KDNK Malaysia berkembang 3.6% pada S4 2019, menyeret pertumbuhan tahun 2019 kepada 4.3%, yang terendah sejak krisis kewangan 2009 di tengah-tengah gangguan bekalan di sektor komoditi pada suku tersebut. Sementara itu, pendapatan

korporat S4 2019 menyaksikan prestasi di bawah jangkaan adalah lebih banyak berbanding yang melebihi jangkaan.

Pada bulan Mac 2020, FBMKLCI jatuh 8.9% MoM untuk ditutup pada

1.350.89 (melantun dari paras terendah 1.220). Indeks FBMKLCI bermula lemah ekoran (a) peningkatan jumlah jangkitan COVID-19 di rantau ini telah mengurangkan keinginan pelabur keatas aset berisiko, (b) harga

minyak merosot setelah OPEC yang dipimpin oleh Arab Saudi, gagal mencapai kesepakatan dengan pengeluar minyak No. 2 dunia Rusia untuk meningkatkan pemotongan pengeluaran dan kemudiannya Arab Saudi memulakan perang harga, (c) WHO isytihar wabak koronavirus sebagai

pandemik, dan (d) Dow Jones Industrial Average ditutup 2.352.60 mata lebih rendah, atau 9.99%, pada 21.200.62 pada 12 Mac, penurunan terburuk sejak peristiwa "Black Monday" 1987, ketika ia jatuh lebih dari 22%. Menjelang pertengahan bulan, FBMKLCI melantun kembali

didokong oleh (a) Rizab Persekutuan AS akan melaksanakan pelonggaran kuantitatif tanpa had untuk menstabilkan ekonomi, (b) Senat AS meluluskan pakej rangsangan fiskal $ 2 trilion, (c) Malaysia telah mengumumkan rancangan penyelamatan bernilai keseluruhan RM250

bilion, dan (d) Suruhanjaya Sekuriti dan Bursa Malaysia telah menggantung penjualan singkat sehingga 30 April.

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

menyusut -8.04% bagi tempoh 1-tahun kewangan berakhir 31 Mac 2020.

3.8 SUASANA PASARAN WANG TEMPATAN SEMASA Dalam tempoh setahun kewangan berakhir 31 Mac 2020, Jawatankuasa

Dasar Monetari (MPC) BNM dalam mesyuaratnya bertarikh 3 Mac 2020 telah membuat keputusan untuk mengurangkan OPR sebanyak 25 mata asas kepada 2.50%. Dengan itu, kadar koridor tertinggi dan terendah bagi OPR masing-masing diturunkan kepada 2.75% dan 2.25%.


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3.8 SUASANA PASARAN WANG TEMPATAN SEMASA Keadaan ekonomi global telah merosot dalam tempoh kebelakangan ini. Wabak COVID-19 yang sedang menular telah mengganggu aktiviti

pengeluaran dan aktiviti yang berkaitan dengan perjalanan, terutamanya di rantau ini. Hal ini juga telah mendorong kepada kegiatan penghindaran risiko yang lebih ketara, lantas mengakibatkan keadaan kewangan menjadi lebih ketat dan mendadak semula volatiliti pasaran kewangan.

Risiko kepada prospek pertumbuhan global telah meningkat, terutamanya dalam tempoh terdekat. Walau bagaimanapun, beberapa negara telah melaksanakan tindak balas dasar. Dengan jangkaan pelaksanaan beberapa langkah dasar, tindakan ini dijangka boleh mengurangkan

impak ke atas ekonomi akibat wabak COVID-19.

Ekonomi Malaysia meningkat pada kadar yang sederhana sebanyak 4.3%

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

dalam sektor pertanian juga dijangka berterusan pada suku pertama. Pada tahun 2020, aktiviti sektor swasta dan sektor awam dijangka terus menyokong pertumbuhan. Perbelanjaan isi rumah diunjurkan berkembang pada kadar yang lebih perlahan dalam keadaan pertumbuhan pekerjaan

dan pendapatan yang sederhana. Aktiviti pelaburan dijangka mencatatkan pemulihan yang sederhana, disokong oleh projek-projek sektor awam dan swasta yang baharu dan sedang dilaksanakan. Pakej rangsangan ekonomi 2020 juga akan menyediakan sokongan kepada kegiatan

ekonomi. Walaupun pertumbuhan dalam negara dijangka bertambah baik secara beransur-ansur pada separuh tahun kedua, terdapat risiko pertumbuhan menjadi lebih perlahan yang berpunca terutamanya daripada sifat evolusi dan kesan berpanjangan daripada wabak COVID-19

serta kelemahan yang berterusan dalam sektor yang berkaitan komoditi.

Pada tahun 2020, inflasi keseluruhan dijangka mencatatkan purata lebih

tinggi tetapi kekal pada kadar yang sederhana. Trajektori inflasi keseluruhan akan bergantung pada perkembangan harga minyak dan komoditi sedunia serta masa pemansuhan harga siling bagi harga runcit

bahan api domestik. Inflasi asas dijangka lebih sederhana, dalam keadaan tekanan permintaan yang terhad meskipun kegiatan ekonomi terus berkembang.

Pengurangan dalam OPR bertujuan untuk menyediakan persekitaran

monetari yang lebih akomodatif bagi menyokong jangkaan pertumbuhan ekonomi yang bertambah baik dalam keadaan harga yang stabil. MPC

akan terus memantau dan menilai imbangan risiko berhubung dengan prospek pertumbuhan domestik dan inflasi.


3.9 KEPENTINGAN PEMEGANG-PEMEGANG UNIT Sepanjang tempoh kajian, tiada sebarang kejadian yang menjejaskan kepentingan Pemegang-Pemegang Unit selain daripada urusniaga-urusniaga yang dijalankan selaras dengan Surat Ikatan Amanah,

Garispanduan Tabung Unit Amanah, Akta Pasaran Modal dan Perkhidmatan 2007 dan undang-undang lain yang berkuatkuasa.


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3.10 REBAT DAN KOMISEN RINGAN

Sepanjang tempoh setahun berakhir 31 Mac 2020, Pengurus Dana

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

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

dengan pengurusan pelaburan dana dan pengurusan pasaran saham dan ekonomi.

Nota: Laporan ini telah diterjemahkan daripada laporan asal (dalam

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

Bahasa Inggeris.


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4. TRUSTEE’S REPORT To the Unit Holders of PMB SHARIAH INDEX FUND We, AMANAHRAYA TRUSTEES BERHAD, have acted as Trustee of PMB

SHARIAH INDEX FUND for the financial year ended 31 March 2020. In our opinion,

PMB INVESTMENT BERHAD, the Manager, has operated and managed PMB

SHARIAH INDEX FUND in accordance with the limitations imposed on the

investment powers of the management company under the Deed, securities laws

and the applicable Guidelines on Unit Trust Funds during the financial year then

ended.

We are also of the opinion that:

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

regulatory requirement;

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

Deed and any regulatory requirement; and

(c) The distribution of income made by PMB SHARIAH INDEX FUND as declared

by the Manager is appropriate and reflects the investment objective of PMB

SHARIAH INDEX FUND.

Yours faithfully

AMANAHRAYA TRUSTEES BERHAD

ZAINUDIN BIN SUHAIMI Deputy Chief Executive Officer

Kuala Lumpur, Malaysia 17 June 2020


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5. SHARIAH ADVISER’S REPORT To the Unit Holders of PMB SHARIAH INDEX FUND We have acted as the Shariah Adviser of PMB Shariah Index Fund (―the Fund‖)

managed by PMB INVESTMENT BERHAD (―the Manager‖) for the financial year

ended 31 March 2020.

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

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

dated 6 September 2016 which had been registered with the Securities

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

principles.

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

managed and administered the Fund in accordance with Shariah principles and

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

Shariah Advisory Council (―SAC‖) of the SC for the financial year ended 31 March

2020.

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

the latest ―List of Shariah-Compliant Securities‖ issued by the SAC of the SC and

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

Negara Malaysia (―BNM‖). As for securities and instruments which have not been

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

determined the Shariah status of the said securities and instruments.

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

IR. DR. MUHAMAD FUAD ABDULLAH Designated Shariah Person KUALA LUMPUR 22 June 2020


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

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

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

fair view on the financial position of the Fund as at 31 March 2020 and of its

statement of comprehensive income, changes in equity and cash flows of the

Fund for the financial year ended 31 March 2020 in accordance with Malaysian

Financial Reporting Standards (MFRSs), International Financial Reporting

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

Funds by the Securities Commission of Malaysia.

For and on behalf of

PMB INVESTMENT BERHAD As Manager of PMB SHARIAH INDEX FUND

NAJMI BIN HAJI MOHAMED Director

TENGKU AHMAD BADLI SHAH BIN RAJA HUSSIN Director KUALA LUMPUR 3 June 2020


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

We have audited the financial statements of PMB SHARIAH INDEX FUND, which comprise the statement of financial position as at 31 March 2020, and statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statement, including a summary of significant accounting policies and other explanatory notes. In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Funds as at 31 March 2020 and of its financial performance, changes in equity and cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and modified in accordance with the Guidelines on Unit Trust Fund, issued by the Securities Commission of Malaysia. We have also verified the computation of the Management Expenses Ratio and Portfolio Turnover Ratio as disclosed in notes of the financial statements are reasonable. The schedule have been drawn primarily from the accounting records and other records of the Fund which have been subjected to tests and other audit procedures during our review of the Fund's financial statements for the financial year ended 31 March 2020. In our opinion, the informations as a whole, have been presented fairly if deemed in all respects in respect of the financial statements. Basis for Opinion We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors‘ Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence and Other Ethical Responsibilities We are independent of the Fund in accordance with the By-Laws of the Malaysian Institute of Accountants (―By-Laws‖) and the International Ethics Standards Board for Accountants‘ Code of Ethics for Professional Accountants (―IESBA Code‖) and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code.

Information Other than the Financial Statements and Auditor’s Report Thereon The Manager of the Fund is responsible for the other information. The other information comprises the Manager‘s Report and Statement by Manager, but does not include the financial statements of the Fund and our auditors‘ report thereon. Our opinion on the financial statements of the Fund does not cover the other information and we do not express any form of assurance conclusion thereon.


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

In connection with our audit of the financial statements of the Fund, our

responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Fund or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Manager for the Financial Statements

The Manager of the Fund is responsible for the preparation of financial statements of the Fund that give a true and fair view in accordance with

Malaysian Financial Reporting Standards, International Financial Reporting Standards and the Securities Commission‘s Guidelines on Unit Trust Funds in Malaysia. The Manager is also responsible for such internal control as the Manager determine is necessary to enable the preparation of financial statements

of the Fund that are free from material misstatement, whether due to fraud or error. The Trustee is responsible for ensuring that the Manager maintains proper

accounting and other records as are necessary to enable true and fair presentation of these financial statements. In preparing the financial statements of the Fund, the Manager is responsible for

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

Auditors’ Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial

statements of the Fund as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors‘ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia

and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these

financial statements. As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and

maintain professional scepticism throughout the audit. We also:


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

• Identify and assess the risks of material misstatement of the financial statements of the Fund, whether due to fraud or error, design and perform

audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,

intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to

design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund‘s

internal control.

• Evaluate the appropriateness of accounting policies used and the

reasonableness of accounting estimates and related disclosures made by the Manager.

• Conclude on the appropriateness of the Manager‘s use of the going concern basis of accounting and, based on the audit evidence obtained,

whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund‘s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors‘ report to the related disclosures in the

financial statements of the Fund or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors‘ report. However, future events or conditions may cause the Fund to cease to continue as a going concern.

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

statements of the Fund, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Manager regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


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Other Matters

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

JAMAL, AMIN & PARTNERS (No. AF 1067)

Chartered Accountants

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

3 June 2020 KUALA LUMPUR


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7. FINANCIAL STATEMENT

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2020

NOTE 31.3.2020 31.03.2019

ASSETS RM RM

INVESTMENT 4

Quoted Shariah-compliant shares in Malaysia

9,426,389 12,126,386

Islamic deposits with licensed

financial institutions in Malaysia 5 1,741,343

2,156,886

11,167,732 14,283,272

OTHER ASSETS

Amount owing by stockbroking companies 497,618 -

Profit receivable from Islamic deposits 327 862

Dividend receivable 79,138 31,882

Tax receivable - 41,918

Al-Wadiah savings 96,345 163,846

673,428 238,508

TOTAL ASSETS 11,841,160 14,521,780

LIABILITIES

Amount owing to Manager 6 6,124 6,777

Amount owing to stockbroking

companies - 1,170,039

Amount owing to Trustee 510 565

Distribution 7 461,054 446,741

Other payables and accruals 4,350 3,950

TOTAL LIABILITIES 472,038 1,628,072

EQUITY

Unit holders‘ capital 8 13,585,284 13,590,435

Retained loss (2,216,162) (696,727)

TOTAL EQUITY 11,369,122 12,893,708

TOTAL EQUITY AND LIABILITIES 11,841,160 14,521,780

UNITS IN CIRCULATION 8 28,815,864 28,822,000

NET ASSET VALUE PER UNIT (RM) -XD 9 0.3945 0.4474


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STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020

NOTE

31.03.2020

31.03.2019

RM RM

INVESTMENT INCOME

Profit from Islamic deposits 37,191 40,165

Hibah from Al-Wadiah savings 337 280

Dividend income 341,717 341,739

Other income - 25

Profit from sale of investment 573,809 274,416

Unrealised loss on changes in fair

value of investment 10 (1,801,332)

(1,706,291)

(848,278) (1,049,666)

EXPENSES

Management fee 11 80,066 81,835

Trustee fee 12 6,672 6,820

Audit fee 3,250 3,250

Tax agent fee 1,500 700

Stockbroking fee and other transaction costs

13 68,988 45,192

Sales and services taxation 2,781 1,984

Administrative expenses 4,928 4,152

168,185 143,933

LOSS BEFORE TAXATION 14 (1,016,463) (1,193,599)

Taxation (41,918) -

LOSS AFTER TAXATION (1,058,381) (1,193,599)

LOSS TAXATION IS MADE UP AS FOLLOWS:

REALISED PROFIT 742,951 512,692

UNREALISED LOSS 10 (1,801,332) (1,706,291)

(1,058,381) (1,193,599)


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STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020

NOTE Unit holders’

Capital Retained Losses

Total Equity

RM RM RM

Balance as at 1 April 2018 13,439,985 950,678 14,390,663

Realised Profit - 512,692 512,692

Unrealised Loss - (1,706,291) (1,706,291)

Creation of units 620,274 - 620,274

Cancellation of units (469,824) - (469,824)

Dividend equalisation - (7,065) (7,065)

Distribution 7 - (446,741) (446,741)

Balance as at 31 March 2019 13,590,435 (696,727) 12,893,708

Balance as at 1 April 2019 13,590,435 (696,727) 12,893,708

Realised Profit - 742,951 742,951

Unrealised loss - (1,801,332) (1,801,332)

Creation of units 211,756 - 211,756

Cancellation of units (216,907) - (216,907)

Distribution 7 - (461,054) (461,054)

Balance as at 31 March 2020 13,585,284 (2,216,162) 11,369,122


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STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020

31.03.2020 31.03.2019 RM RM

CASH FLOWS FROM INVESTING AND OPERATING ACTIVITIES

Proceeds from sale of investments 12,570,737 7,152,199

Puchase of investments (12,765,922) (6,195,155)

Dividends received 294,462 328,806

Profit from Islamic deposit 37,726 39,787

Hibah from Al-Wadiah savings 337 280

Receipt from other income - 25

Management fee paid (80,719) (82,576)

Trustee fee paid (6,726) (6,881)

Payment for Audit fee (3,250) (2,500)

Payment of Tax agent fee (1,100) (700)

Payment of other expenses (76,697) (51,816)

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

(31,152) 1,181,469

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from creation of units 91,973 613,209

Distribution paid (326,958) (356,462) Payment of cancellation of units (216,907) (469,824)

Net cash used in financing activities (451,892) (213,077)

NET (DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS

(483,044)

968,392

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 2,320,732 1,352,340

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 1,837,688 2,320,732

CASH AND CASH EQUIVALENTS COMPRISE

Al-Wadiah Savings 96,345 163,846

Islamic deposits with licensed financial

institutions in Malaysia

1,741,343

2,156,886

1,837,688 2,320,732


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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020

1. THE FUND, THE MANAGER AND PRINCIPAL ACTIVITIES

PMB Shariah Index Fund is managed by PMB INVESTMENT BERHAD, was launched on 19 February 1969 known as Kumpulan Modal Bumiputera Yang Kedua and was re-launched on 25 March 2002 as ASM

Index Fund. On 19 July 2012, this Fund changed its name to ASM Shariah Index Fund as stated in Ninth Master Supplemental Deed dated on 9 October 2012 and has registered with Securities Commission Malaysia on

12 November 2012. Pursuant to the Master Prospectus dated on 28 April 2014, this Fund once again changed its name from ASM Shariah Index Fund to PMB Shariah Index Fund in line with the changes of the

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

Capital Markets and Services Act 2007.

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

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

Malaysia and money market instruments approved by the Shariah Principles.

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

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

2. OBJECTIVE AND POLICIES OF FINANCIAL RISK MANAGEMENT

This Unit Trust Fund operations are exposed to several risks including equity market risk, stock specific risk, equity-related securities risk,

Shariah status reclassification risk, liquidity risk and tracking error risk. Financial risk management is carried out through the system of internal control and investment restrictions outlined in the Guidelines on Unit Trust

Funds by the Securities Commission Malaysia and based on Shariah Principles.

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

market which is influenced by the changes in the economic and political climate, profit rate, international stock market performance and regulatory policies. The movement of the value in the underlying

investment portfolio will affect the Net Asset Value (NAV) of the Fund. Any downward movement of the value will negatively impact the NAV of the Fund.


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

(a) Equity Market Risk (Cont.) The table below shows the impact on the NAV of the Fund at the

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

variables held constant:

QUOTED SHARIAH-COMPLIANT SHARE

IN MALAYSIA

CHANGES IN EQUITY

PRICE

IMPACT ON DISTRIBUTED NET

ASSET VALUE RM % RM 9,426,389 +5 / -5 471,319/ (471,319)

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

circumstances affecting individual companies such as adverse financial performance, news of a possible merge of loss of key personnel of a company. Any adverse price movements of such stock

will adversely affect the Fund‘s NAV.

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

on the value of the underlying equities that the Shariah-compliant securities are related to. Any upward movement in the value of the

underlying Shariah-compliant equities may result an upward movement of the value of the respective Shariah-compliant equity-related securities, and vice versa. Hence, the movement of the value of the Shariah-compliant equity-related securities will affect the value

of the Fund. The Fund may also invest in Shariah-compliant equity-related securities such as Shariah-compliant warrants, that have an expiry date and may experience time decay and the erosion of value accelerates as the instrument advances to its expiry date. If the

Shariah-compliant warrant is not exercised on or before the expiry date, the Shariah-compliant warrant will have no value and negatively impact the NAV of the Fund.

(d) Shariah Status Reclassification Risk

This risk refers to the risk that the currently held Shariah-compliant

equity securities in the portfolio of Shariah-compliant funds may be reclassified as Shariah non-compliant in the periodic review of the securities by the SAC of the SC, the Shariah Adviser or the Shariah Supervisory Boards of relevant Islamic indices. If this occurs, the

Manager will take the necessary steps to dispose of such securities. Opportunity loss could occur due to the restriction on the Fund to retain the excess capital gains derived from the disposal of the

reclassified Shariah non-compliant securities. In such an event, the Fund is required:-


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FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020 2. OBJECTIVE AND POLICIES OF FINANCIAL RISK MANAGEMENT (CONT)

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

calendar month if the value of the securities exceeds or is equal to the investment cost on the effective date of Reclassification of the List of Shariah-compliant securities (―Reclassification‖) by the

SAC of the SC, the Shariah Adviser or the Shariah Supervisory Boards of relevant Islamic indices. The Fund is allowed to keep dividends received and capital gains from the disposal of the securities up to the effective date of Reclassification. However,

any dividends received and excess capital gains from the disposal of the Shariah non-compliant securities after the effective date of Reclassification should be channelled to baitulmal and/or approved charitable bodies;

(ii) to hold such securities if the value of the said securities is below the investment cost on the effective date of Reclassification until the total subsequent dividends received (if any) and the market price of the securities is equal to the cost of investment at which

time disposal has to take place within one (1) calendar month; capital gains (if any) from the disposal of the securities should be channeled to baitulmal and/or approved charitable bodies; or

(iii) to dispose such securities at a price lower than the investment

cost which will result in a decrease in the Fund‘s value.

(e) Liquidity Risk

Liquidity risk refers to the ease of liquidating an asset depending on the asset‘s volume traded in the market. If the Fund hold assets that

are illiquid, or are difficult to dispose of, the value of the Fund will be negatively affected when it has to sell such assets at unfavourable prices.

The Fund maintains sufficient level of Islamic liquid assets, after

consultation with the Trustee, to meet anticipated payments and cancellations of units by unit holders. Islamic liquid assets comprise cash, Islamic deposits with licensed financial institutions and other Shariah-compliant instruments which are capable of being converted

into cash within 7 days.

The table below summarises the Fund‘s financial liabilities into relevant maturity grouping based on the remaining period as at the statement of financial position date to the contractual maturity date.

The amounts in the table are the contractual undiscounted cash flows.


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

e) Liquidity Risk (Cont.) 2020

BETWEEN Less than

1 month 1 month to 1 year

Total

Amount owing to Manager 6,124 - 6,124

Amount owing to Trustee 510 - 510

Distribution 461,054 - 461,054

Other payables and accruals - 4,350 4,350

Contractual cash outflows 467,688 4,350 472,038 2019

BETWEEN Less than

1 month 1 month to 1 year

Total

Amount owing to Manager 6,777 - 6,777

Amount owing to Trustee 565 - 565

Amount owing to stockbroking companies

1,170,039

-

1,170,039

Distribution 446,741 - 446,741

Other payables and accruals - 3,950 3,950

Contractual cash outflows 1,624,122 3,950 1,628,072

(f) Tracking Error Risk

The Fund‘s performance may not reflect the performance of FBMSHA as the weights of index stocks held by the Fund vs the respective

stock‘s weightings in the FBMSHA does not fully replicate the FBMSHA constituents. As a result, there is no guarantee that the Fund will exactly replicate or track the underlying benchmark‘s return. However the Fund will be rebalanced on a monthly basis to

management its tracking error versus the benchmark.


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NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation The financial statements of the Fund are prepared under the historical cost conversion and modified to include other bases of valuation as disclosed in other sections under significant accounting policies and in compliance with Malaysian Financial Reporting

Standards (MFRSs), International Financial Reporting Standards (IFRSs) and Guidelines on Unit Trust Funds by the Securities Commission of Malaysia

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

Effective date

MFRS 101

Definition of Material (Amendments to MFRS 101)

1 January 2020

MFRS 108 Definition of Material (Amendments to MFRS 108)

1 January 2020

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

(b) Quoted Shariah-compliant Shares

Quoted Shariah-compliant shares are valued based on bid price at

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

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

Bursa Malaysia at the reporting date. Accordingly, for any unit trust

transactions at this reporting date, the actual sale and purchase price of the unit trust is set out in note 9.

(c) Dividend Income

The amount of dividend from the investment is determined on an

accrual basis once the company's share price is recorded "XD" (without dividend) on Bursa Malaysia. The single tier system was

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

(d) Profit from Islamic Deposits

The profit from Islamic deposits is on accrual basis. The profit received by Fund derived from Malaysia and credited by any bank or financial institution licensed under the Financial Services Act 2013 or Islamic Financial Services Act 2013 are exempt from tax according

Income Tax 1967 (ITA 1967).


(44)



3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

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

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

Fund and are not subject to tax.

(f) Unrealised Profit/ (Loss)

Unrealised profit/(loss) represent profit/(loss) as a result of changes

in Fair Market Value of quoted Shariah-compliant shares using the Bid price at the reporting date as compared to the previous financial year.

(g) Creation and Cancellation of Units

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

disposition.

(h) Distribution Equalisation

Distribution equalisation is accounted for on the date of issue and

depreciation based on the average amount of distributable income included in the unit price and disposals.

(i) Cash and Cash Equivalents

Cash and cash equivalents comprise of Islamic deposits and Al-Wadiah savings with banks and licensed financial institutions where such savings are based on Shariah Principles.

(j) Financial Instruments

Unless specifically disclosed below, the Fund generally applied the following accounting policies retrospectively. Nevertheless, as permitted by MFRS 9, Financial Instruments, the Fund have elected

not to restate the comparatives. (i) Recognition and Initial Measurement Recognition and Initial MeasurementA financial asset or a financial liability is recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the instrument.

A financial asset or a financial liability is recognised in the

statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the instrument.

A financial asset (unless it is a trade receivable without significant financing component) or a financial liability is initially measured at

fair value plus or minus, for an item not at fair value through profit or loss, transaction costs that are directly attributable to its acquisition or issuance. A trade receivable without a significant financing component is initially measured at the transaction price.


(45)




(j) Financial Instruments (Cont.)

An embedded derivative is recognised separately from the host contract where the host contract is not a financial asset, and accounted for separately if, and only if, the derivative is not closely

related to the economic characteristics and risks of the host contract and the host contract is not measured at fair value through profit or loss. The host contract, in the event an embedded derivative is recognised separately, is accounted for in

accordance with policy applicable to the nature of the host contract.

(ii) Financial instrument categories and subsequent measurement

Financial assets

Categories of financial assets are determined on initial recognition and are not reclassified subsequent to their initial recognition unless the Fund changes its business model for managing financial assets in which case all affected financial assets are

reclassified on the first day of the first reporting period following the change of the business model.

a) Amortised cost (AC)

Amortised cost category comprises financial assets that are

held within a business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and profit on the principal

amount outstanding. The financial assets are not designated as fair value through profit or loss. Subsequent to initial recognition, these financial assets are measured at amortised cost using the effective profit method. The

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

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


(46)





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

Financial assets (Cont.)

b) Fair value through other comprehensive income (FVOCI)

(i) Debt investments

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

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

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

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

On derecognition, gains and losses accumulated in other

comprehensive income are reclassified to profit or loss.

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

applied to the amortised cost.

(ii) Equity investments

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

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

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

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

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


(47)






Financial assets (Cont.)

c) Fair value through profit or loss (FVPL)

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

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

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

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

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

Financial Liabilities

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

a) Fair value through profit or loss (FVPL)

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

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


(48)






Financial Liabilities (Cont.)

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

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

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

loss:

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

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

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

Fund‘s key management personnel; or

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

modifies the cash flows and separation is not prohibited.

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

profit or loss.

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

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

enlarge an accounting mismatch.


(49)





Financial Liabilities (Cont.)

b) Amortised cost (AC)

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

Profit expense and foreign exchange gains and losses are

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

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

obligation can be estimated reliably.

Provision is reviewed at each reporting date and adjusted to

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

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

recognised as a finance cost. (iii) Derecognition

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

when, the contractual rights to the cash flows from the financial

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

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


(50)


FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)


(iii) Derecognition (Cont.)

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

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

liability based on modified terms is recognised at fair value. On derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid, including

any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

(iv) Offsetting

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

(v) Unitholders‘ Contribution

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

Instruments classified as equity are measured at cost and are not remeasured subsequently.

Distribution equalisation is accounted for at the date of creation

and cancellation of units of the Fund. It represents the average amount of distributable income or loss included in the creation and cancellation prices of units.

(k) Impairment of Assets (i) Financial assets

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

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

The Fund recognised loss allowances for expected credit losses

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

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


(51)



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

The Fund measure loss allowances at an amount equal to lifetime

expected credit loss, except for debt securities that are determined to have low credit risk at the reporting date, cash and bank balance and other debt securities for which credit risk has not increased significantly since initial recognition, which are

measured at 12-month expected credit loss. Loss allowances for trade receivables, contract assets and lease receivables are always measured at an amount equal to lifetime expected credit loss.

When determining whether the credit risk of a financial asset has

increased significantly since initial recognition and when estimating expected credit loss, the Fund consider reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative

information and analysis, based on the Fund‘s historical experience and informed credit assessment and including forward-looking information, where available.

Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of the asset, while 12-month expected credit losses are the portion of

expected credit losses that result from default events that are possible within the 12 months after the reporting date. The maximum period considered when estimating expected credit losses is the maximum contractual period over which the Fund are

exposed to credit risk.

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

An impairment loss in respect of financial assets measured at

amortised cost is recognised in profit or loss and the carrying amount of the asset is reduced through the use of an allowance account.

An impairment loss in respect of debt investments measured at fair value through other comprehensive income is recognised in

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

At each reporting date, the Fund assess whether financial assets

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

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


(52)


FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

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

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

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

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

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

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

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

For the purpose of impairment testing, assets are grouped

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

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

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

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

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


(53)



(k) Impairment of Assets (Cont.)

(ii) Other Assets (Cont.)

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

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

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

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

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

(l) Fair Value of financial instruments

The carrying values of the financial instruments recorded at the date

of reporting approximate their fair values.


(54)


FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020 4. INVESTMENT

Details are as follows:

2020 2019

RM

RM

(a) Quoted Shariah – compliant shares @ cost 10,981,317 11,879,982

(Deficit)/Surplus (1,554,928) 246,404

Market Value 9,426,389 12,126,386

(b) Islamic Deposits 1,741,343 2,156,886

Total Investments 11,167,732 14,283,272

The list of investments are as in Schedule A.

5. ISLAMIC DEPOSITS WITH LICENSED FINANCIAL INSTITUTIONS IN MALAYSIA

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

2020 2019 RM RM

(a) Islamic Bank 1,741,343 -

(b) Investment Bank - - 2,156,886

1,741,343 2,156,886

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

Average

Profit Rate %

Average Maturity Period

Days (a) Islamic Bank 2.40 6 (b) Investment Bank - -

6. AMOUNT OWING TO MANAGER

2020 2019 RM RM

Management fee accrued 6,124 6,777

6,124 6,777


(55)



7. DISTRIBUTION The Manager with the approval of the Trustee has declared an income distribution of 1.60 sen (gross) (1.60 sen net) per unit to be distributed in the form of units for the financial year ended 31 March 2020 [2019: 1.55 sen (gross) (1.55 sen net)].

Distributions declared are derived from the following sources:-

2020 2019 RM RM Dividend Income 341,717 341,739

Profit from Islamic deposits 37,191 40,165

Hibah from sale of investment 573,809 274,416

Profit from Al-Wadiah savings 337 280

Other Income - 25

Undistributed profit for the year

(281,897) (65,951)

671,157 590,674

Expenses (168,185) (143,933)

Taxation (41,918) -

461,054 446,741

Unit in circulation 28,815,864 28,822,000

Gross distribution per unit (sen)

1.60 1.55

Net distribution per unit (sen)

1.60 1.55

Distribution declared after taking into account the unrealised loss in the

current financial year amounting RM1,801,332 (2019: Unrealised loss RM1,706,291)


(56)


FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020 8. UNIT HOLDERS’ CAPITAL

2020 2019

Unit RM Unit RM

Balance brought forward

28,822,000 13,590,435 28,517,000 13,439,985

Creation of units during the period

463,316

211,756

1,275,000

620,274

29,285,316 13,802,191 29,792,000 14,060,259

Cancellation of units during the period

(469,452)

(216,907)

(970,000)

(469,824)

Balance carried forward

28,815,864 13,585,284 28,822,000 13,590,435

9. NET ASSET VALUE

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

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

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

Accordingly, on 31 March 2020 and 31 March 2019 the adjustment of the net asset value per unit for the purpose of distributing to the unit holders of

the unit trust as at the above dates is as follows:-

2020 2019

RM RM/Unit RM RM/Unit

Net asset value per unit for the distribution of unit trust

11,410,308 0.3960 12,913,480 0.4480

Net asset value difference when

complying with MFRS 9

41,186 0.0015 19,772 0.0006

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

the Financial Statements

11,369,122 0.3945 12,893,708 0.4474


(57)



10. UNREALISED LOSS ON CHANGES IN FAIR VALUE OF INVESTMENT 2020

RM 2019

RM

Unrealised (loss)/profit on quoted Shariah - compliant shares (1,554,928)

246,404

Total unrealised (loss)/profit (1,554,928) 246,404

Less: Unrealised profit from previous year

246,404 1,952,695

(1,801,332) (1,706,291)

11. MANAGEMENT FEE The fee paid to the Manager, PMB INVESTMENT BERHAD is computed on

a daily basis at 0.6% per annum on the Net Asset Value before deducting

Management fee and Trustee fee for that particular day.

12. TRUSTEE FEE The fee paid to the Trustee, AMANAHRAYA TRUSTEES BERHAD is computed

on a daily basis at 0.05% per annum on the Net Asset Value before

deducting Management fee and Trustee fee for that particular day.

13. TRANSACTIONS WITH BROKER/DEALER (01/04/2019 – 31/03/2020)

Broker/Dealer

Transaction Value

RM

%

Commission & Fee

RM

%

Public Investment Bank Bhd. 10,415,359 42.23 28,150 40.80

Kenanga Investment Bank Bhd.

2,883,017 11.69 9,355 13.56

KAF Equities Sdn. Bhd. 2,701,533 10.95 7,298 10.58

Hong Leong Investment Bank Bhd.

1,891,216 7.67 5,624 8.15

Affin Hwang Investment Bank Bhd.

1,769,594 7.17 4,844 7.02

Alliance Investment Bank Bhd.

1,607,550 6.52 2,754 3.99

Maybank Investment Bank Bhd.

1,250,946 5.07 3,921 5.68

BIMB Securities Sdn Bhd 1,199,275 4.86 4,104 5.95

AmInvestment Bank Bhd. 573,829 2.33 1,815 2.63

MIDF Amanah Investment

Bank Bhd.

371,920 1.51 1,123 1.64

Total Transaction 24,664,239 100.00 68,988 100.00


(58)


FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020 14. TAXATION

2020 RM

2019

RM

Taxation for the year - -

Overprovision of tax receivable 41,918 -

Tax expenses for the year 41,918 - Taxes are imposed at a rate of 24% on dividend chargeable income less allowance allowed at 10%.

The reconciliation between tax expense and accounting profit multiplied by 24% tax rates for the financial period ended 31 March 2020 and 31 March 2019 are as follows:-

2020 RM

2019

RM

Loss before taxation (1,016,463) (1,193,599)

Taxation at rate of 24% 243,951 286,464

Tax effect of income not subject to tax (203,587) (251,920)

Tax effect of expenses not allowed (40,364) (34,544)

Taxation for the year - -

Overprovision of tax receivable 41,918 -

Tax expenses for the year 41,918 -

15. MANAGER’S AND DIRECTORS’ INTERESTS

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

2020 2019

(a) Unit Holding

PMB INVESTMENT

BERHAD

Nil 10,012.23 units worth

RM4,485.48

Directors Nil Nil

(b) Expenses

Management fee paid and accrued

RM80,066 RM81,835

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


(59)


FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020 16. MANAGEMENT EXPENSES RATIO (MER)

MER is calculated as follows:- 2020 2019

MER =

Fees + Expenses incurred x 100

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

0.75%

0.72%

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

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

17. PORTFOLIO TURNOVER RATIO (PTR)

PTR is calculated as follows:

2020 2019

PTR =

(Total acquisition + Total disposals)/2

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

0.93 times

0.53 times

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

18. FINANCIAL INSTRUMENTS

a) Classification of financial instruments

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

i) Amortised Cost (AC)

ii) Fair Value Through Profit or Loss (FVPL)

iii) Fair Value Through Other Comprehensive Income (FVOCI)


(60)


FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020 18. FINANCIAL INSTRUMENTS (CONT.)

a) Classification of finncial instruments (Cont.)

Reclassification to new MFRS 9 category 2020 Carrying

Amount

AC

FVPL

FVOCI

MFRS 139 RM RM RM RM

Financial Assets

Quoted Shariah

– compliant shares in

Malaysia

9,426,389 - 9,426,389 -

Islamic deposits

with licensed financial institution in Malaysia

1,741,343

1,741,343

- -

Amount owing by

stockbroking companies

497,618

497,618

- -

Profit receivable

from Islamic deposits

327

327 - -

Dividend

receivable 79,138

79,138

- -

Al-Wadiah

savings 96,345 96,345

- -

11,841,160 2,414,771 9,426,389 -

Reclassification to new MFRS 9 category

Carrying

Amount

OL MFRS 139 RM RM

Financial Liabilities

Amount owing to Manager 6,124 6,124


Distribution 461,054 461,054


472,038 472,038


(61)



18. FINANCIAL INSTRUMENTS (CONT.)

a) Classification of finncial instruments (Cont.)

19. FUNCTIONAL AND PRESENTATION CURRENCY

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


2019 Carrying Amount

AC

FVPL

FVOCI

MFRS 139 RM RM RM RM

Financial Assets

Quoted Shariah – compliant shares in

Malaysia

12,126,386 - 12,126,386 -

Islamic deposits

with licensed financial institution in

Malaysia

2,156,886

2,156,886

-

-

Profit receivable

from Islamic deposits

862 862 - -

Dividend

receivable 31,882 31,882 - -

Tax receivable 41,918 41,918 - -

Al-Wadiah savings 163,846 163,846 - -

14,521,780 2,395,394 12,126,386 -


Carrying Amount

OL

MFRS 139 RM RM

Financial Liabilities Amount owing to Manager 6,777 6,777


Amount owing to stockbroking companies

1,170,039 1,170,039

Distribution 446,741 446,741


1,628,072 1,628,072


(62)

SCHEDULE A

LIST OF INVESTMENTS AS AT 31 MARCH 2020

RM RM % A

QUOTED SHARIAH-COMPLIANT SHARES

MAIN MARKET

CONSUMER PRODUCT & SERVICES

1 Fraser & Neave Holdings

Bhd

1,600 39,024 49,536 0.44

2 Sime Darby Bhd 102,500 179,280 172,200 1.52

Total 218,304 221,736 1.96

ENERGY 1 Dialog Group Bhd 143,500 370,550 431,935 3.81

2 Hibiscus Petroleum Bhd 220,000 206,600 73,700 0.65

3 Sapura Energy Bhd 500,000 52,500 37,500 0.33

4 T7 Global Bhd 600,000 280,162 186,000 1.64

5 Velesto Energy Bhd 500,000 77,500 57,500 0.51

Total 987,312 786,635 6.94

HEALTHCARE 1 Hartalega Holdings Bhd 41,200 123,015 283,456 2.50

2 Supermax Corporation Bhd 200,000 284,000 338,000 2.98

3 Top Glove Corporation Bhd 62,000 233,995 394,940 3.48

Total 641,010 1,016,396 8.96

INDUSTRIAL PRODUCT & SERVICES 1 Cahya Mata Sarawak Bhd 123,200 374,040 147,840 1.30

2 Petronas Chemicals Group

Bhd

107,000 682,214 528,580 4.66

3 Press Metal Aluminium

Holdings Bhd

50,000 198,265 164,500 1.45

Total 1,254,519 840,920 7.41

CONSTRUCTION

1 Econpile Holdings Bhd 500,000 335,200 200,000 1.76

2 Gamuda Bhd 100,000 366,605 283,000 2.49

3 IJM Corporation Bhd 118,800 251,331 187,704 1.65

Total 953,136 670,704 5.90

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


(63)

SCHEDULE A LIST OF INVESTMENTS AS AT 31 MARCH 2020

RM RM % A

QUOTED SHARIAH-COMPLIANT SHARES

MAIN MARKET

PROPERTY

1 Malaysian Resources

Corporation Bhd

500,000 323,580 192,500 1.70

2 S P Setia Bhd 70,000 181,000 51,800 0.46

3 Sime Darby Property Bhd 219,900 259,173 119,845 1.06

4 Yong Tai Bhd 600,000 119,250 24,000 0.21

Total 883,003 388,145 3.43 FINANCIAL SERVICES

1 Syarikat Takaful Malaysia Keluarga Bhd

50,000 294,000 162,000 1.43

Total 294,000 162,000 1.43

PLANTATION 1 Genting Plantation Bhd 20,000 187,602 188,400 1.66

2 IOI Corporation Bhd 111,200 479,008 440,352 3.88

3 Sime Darby Plantation Bhd 110,500 583,996 529,295 4.67

Total 1,250,606 1,158,047 10.21

TECHNOLOGY 1 Greatech Technology Bhd 61,200 37,332 143,820 1.27

2 My E.G. Services Bhd 300,000 310,500 288,000 2.54

Total 347,832 431,820 3.81 TELECOMMUNICATIONS & MEDIA 7.81

1 Axiata Group Bhd 145,400 645,688 475,458 4.19

2 Digi.Com Bhd 120,000 581,502 522,000 4.60

3 Maxis Bhd 84,800 520,754 453,680 4.00

4 Telekom Malaysia Bhd 62,400 274,230 231,504 2.04

Total 2,022,174 1,682,642 14.83

TRANSPORTATION & LOGISTIC 1 MISC Bhd 54,600 360,077 405,132 3.57

Total 360,077 405,132 3.57

UTILITIES

1 Malakoff Corporation Bhd 250,000 214,525 201,250 1.78

2 Petronas Gas Bhd 24,500 412,551 376,810 3.32

3 Tenaga Nasional Bhd 90,800 1,142,268 1,084,152 9.56

Total 1,769,344 1,662,212 14.66



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SCHEDULE A

LIST OF INVESTMENTS AS AT 31 MARCH 2020

TOTAL QUOTED SHARIAH - COMPLIANT SHARES 10,981,317 9,426,389 83.11 UNREALISED LOSS (1,554,928) 9,426,389

RM RM %

B ISLAMIC DEPOSITS

1 Bank Muamalat Malaysia Bhd

Commodity Murabahah

700,687 700,732 6.18

2 Bank Muamalat Malaysia Bhd

Commodity Murabahah435,324

250,064 250,081 2.21

3 CIMB Islamic Bank Bhd

Commodity Murabahah

790,592 790,857 6.97

Total Islamic Deposits 1,741,343 1,741,670 15.36

11,168,059 98.47

PERCENTAGE TYPE PLACEMENT PLACEMENT OF NET ASSET NO. FINANCIAL INSTITUTION COST FAIR VALUE VALUE



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

Kuala Lumpur Sentral 50470 Kuala Lumpur Tel: (03) 27859900 Fax: (03) 27859901 E-mail: [email protected]

Central Region Tingkat 1, Wisma PMB

No. 1A, Jalan Lumut 50400 Kuala Lumpur

Tel: (03) 40454000 Fax: (03) 40443800

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

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

Northern Region No. 46 1/F Jalan Todak 2 Pusat Bandar Seberang Jaya 13700 Perai, Pulau Pinang

Tel: (04) 3909036 Fax: (04) 3909041

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


Eastern Region Lot D103, Tingkat 1, Mahkota Square Jalan Mahkota, 25000 Kuantan, Pahang Tel: (09) 5158545 Fax: (09) 5134545

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


Southern Region No. 17-01, Jalan Molek 1/29 Taman Molek, 81100 Johor Bahru Tel: (07) 3522120 Fax: (07) 3512120

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


[email protected]


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

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

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

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

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


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

H/P: (012) 2202975 (Rosdiana Mohamad Radzi)

E-mail: [email protected] Kelantan

Tingkat 1, Lot 1156, Seksyen 11, 15100 Kota Bharu, Kelantan Tel: (09) 7421791

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


AGENCY OFFICES Kuala Lumpur Nor Azihan Alias

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

50400 Kuala Lumpur

H/P: (019) 2277375


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

50400 Kuala Lumpur

H/P: (019) 2206085



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Kuala Lumpur

Amir Md Yusof

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

H/P: (011) 16776969


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

50470 Kuala Lumpur

H/P: (019) 2348786

E-mail: [email protected] Melaka

Datuk Md. Ramly Mohamad

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

75000 Melaka

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

E-mail: [email protected] Terengganu

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

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

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

24000 Bandar Kertih, Kemaman, Terenggganu

H/P: (019) 2277375


Kedah

Mohd Azrik Sapee

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

H/P: (017) 4219195


Pulau Pinang

Norshuhada Din

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

H/P: (011) 14711650



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Institutional Unit Trust Agents: Financial Institutions For Autodebit Services:

iFast Capital Sdn Bhd

Phillip Mutual Berhad

KAF Investment Funds Berhad

TA Investment Management

Berhad

Bank Simpanan Nasional

CIMB Bank Berhad

Malayan Banking Berhad/Maybank Islamic Berhad

RHB Bank Berhad/RHB Islamic Bank Berhad

Corporate Unit Trust Adviser (CUTA):

Genexus Advisory Sdn. Bhd


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10. INFORMATION OF INVESTOR RELATION

CUSTOMER SERVICES

You may communicate with us via:-

Investor Relation Careline : (03) 2785 9900

E-mail : [email protected]

Our Customer Service Personnel would assist your queries on our unit

trust funds.

NOTES TO PROSPECTIVE INVESTORS

This report in not an offer to sell units.

Prospective investor should read and understand the contents of the

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

adviser on this scheme.

Past performance of the Fund is not an indication of future

performance and unit prices and investment returns may fluctuate.


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11. INVESTOR PROFILE UPDATE FORM

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