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TABLE OF CONTENT 1.0

Manager‟s Report

3

1.1

Fund Name / Fund Type / Fund Category / Fund Investment Objective/ Fund Performance Benchmark / Fund Distribution Policy

3

1.2

Performance for the Financial Year Ended 31 October 2013

4

1.3

Economic and Market Review

7

1.4

Market Outlook and Strategy

9

1.5

Asset Allocation as at 31 October 2013

10

1.6

Other Performance Data for the Financial Year Ended 31 October 2013

11

1.7

Unit Holdings as at 31 October 2013

13

1.8

Policy on Rebate and Soft Commission

13

2.0

Trustee‟s Report

26

3.0

Shariah Committee‟s Report

27

4.0

Directors‟ Declaration Report

28

5.0

Independent Auditors‟ Report

29

6.0

Financial Statements (Audited)

32

7.0

Corporate Directory

67

2

1.0 Manager’s Report Dear Unit Holders, We are pleased to present the Manager‟s report of BIMB i Dividend Fund for the financial year ended 31 October 2013. 1.1

Fund Name/ Fund Type/ Fund Category/ Fund Investment Objective/ Fund Performance Benchmark/ Fund Distribution Policy

Fund Name

BIMB i Dividend Fund

Fund Type

Income and Growth

Fund Category

Equity

Fund Investment Objective

This Fund aims to primarily provide investors with a combination of steady and recurring income and capital growth in the *medium to long term through investments in Shariah-compliant dividend yielding equities, which historically offered solid performance and is generally less volatile when compared to the broader equity market. Note: “medium to long term” in this context refers to 3 years or more. Any material change to the investment objective of the Fund would require Unit Holders’ approvals.

Fund Performance Benchmark

The Fund will be measured against an absolute return benchmark of 6% per annum. This is not a guaranteed return and it is only a measurement of the Fund‟s performance. The Fund may or may not achieve the aforesaid 6% per annum growth rate in any particular financial year but targets to achieve this growth rate through long term.

Fund Distribution Policy

The Manager will declare annual distributions (subject to the availability of income).

3

1.2

Performance for the Financial Year Ended 31 October 2013

1.2.1 Performance review for BIMB i Dividend Fund For the financial year under review, BIMB i Dividend Fund (the Fund) declared a net income distribution of 2.15 sen per unit, equivalent to a yield of 7.70% per annum. The selected performance benchmark for this Fund is an absolute return benchmark of 6.00% per annum. Our strategy has consistently been to remain focus on investing in stocks with consistent track record of dividend distribution and potential capital growth over medium to long term. During its financial year ending 31 October 2013, the Fund has met its objectives of providing investors with a combination of income and capital growth in medium to long term through investments in dividend yielding equities, which historically offered solid performance and is generally less volatile when compared to broader equity market. As at 31 October 2013, the fund had 89.2% exposure to equities. Thus far, the Fund continues to be managed in line with its stated objective by investing in dividend yielding equities. For the year ended 31 October 2013, there were no significant changes to the state of affairs of the Fund and no circumstances that materially affect the interest of Unit Holders that have taken place up to the date of this Manager‟s Report.

4

1.2.2 Total return and average total return for the financial year ended 31 October 2013

1-Year Period Since Inception

BIMB i Dividend Fund Total Average Return Total Return (%) (%) 3.04 3.04 22.91 8.58

Benchmark Average Total Return Total Return (%) (%) 6.00 6.00 16.50 6.18

1.2.3 Total return for the last 3 financial years/ period Total Return BIMB i Dividend Benchmark Fund (%) (%) 3.04 6.00

Financial Years

31 October 2013 31 October 2012

20.05

6.00

31 October 2011*

-0.76

3.68

*Since launch from 18 March 2011 to 31 October 2011. 1.2.4 Income distribution for the last 2 financial years

Financial Years

31 October 2013 31 October 2012

Income Distribution Distribution Distribution Yield per (sen)/ unit annum (%) 2.15 7.70 1.90

7.66

5

Benchmark per annum (%) 6.00 6.00

Figure 1: Movement of the Fund versus the Benchmark

Note: Data Source: BIMB Investment Management Berhad Data verified by: Perkasa Normandy Managers Sdn.Bhd Benchmark: “Absolute return of 6% per annum”

Notes: 1.

Total Return of the Fund has been verified by Perkasa Normandy Advisers Sdn. Bhd. (363145-w)

2.

Average Total return is derived by this formula: Total Return Number of Years under Review

Past performance is not necessarily indicative of future performance and unit prices and investment returns may go down, as well as up.

6

1.3

Economic and Market Review Economy a) Global  The United States (US) Real Gross Domestic Product (GDP) growth was 2.8% in the third quarter 2013 supported by a build-up in inventories and an increase in fixed residential investment. The US economic growth was 0.1% in the fourth quarter 2012.  The US headline inflation eased to 1.5% year-on-year ('yoy') in August 2013 from 2.0%yoy in July 2013, indicating that price pressure is easing.  The US unemployment rate rose to 7.3% of total labour force in October 2013 from 7.2% in September 2013. The US unemployment rate was 7.6% of total labour force in March 2013.  The US Federal Reserve („Fed‟) maintained its Quantitative Easing (QE) of buying USD85 billion of bond monthly and the target range for the federal funds rate at 0-0.25% at its monetary policy meeting on 30 October 2013 as the Fed needs more evidence of lasting improvement in the economy before deciding on the timing of the tapering.  The European Commission („EC‟) reduced of its Euro zone 2014 growth forecast to 1.1% from 1.2% and raised the unemployment rate projection to 12.2% from 12.1%. For 2013, the EC expects the economy to contract by 0.4% with unemployment rate at 12.2%, both unchanged from the May forecast.  The Euro zone‟s October annual inflation rate fell to 0.7% from 1.1% in September.  The Euro zone‟s unemployment in September was at a record 12.2% as some governments implemented tough austerity measures to reduce their work force in order to contain their deficits and debts.  The European Central Bank (ECB) kept interest rates at a record-low of 0.5% on 2 October 2013, for the fifth successive month, after reducing it by a quarter points in May 2013. The ECB president said recent economic data have indicated that the Euro zone's economy is improving but the recovery remains "weak, fragile, uneven", as bank lending to businesses was still weak. He added that the current 7

low interest rates were needed to support a fragile economy at a time when governments still need to restructure their economies and cut excessive levels of debt. (Source: Bloomberg and RHB Research Institute Sdn. Bhd.) b) Local  Bank Negara Malaysia‟s (BNM) Monetary Policy Committee (MPC) maintained the Overnight Policy Rate (OPR) at 3.0% on 5 September. In the MPC‟s assessment, there are increased uncertainties to the balance of risks surrounding the outlook for domestic growth and inflation.  Loan growth was 9.5%yoy in September 2013 due to improved credit demand from business sector and stable household loans. Loan growth was mainly from the purchase of passenger cars, residential properties and use of credit cards while business credit demand primarily came from wholesale and retail trade, real estate as well as finance and insurance sectors.  The international reserves rose by RM22.3 billion to RM446.2 billion as at 31 October 2013 from RM423.9 billion as at 31 October 2012. The reserve position is sufficient to finance 9.7 months of retained imports and is 3.9 times the short-term external debt.  Malaysia‟s headline inflation rose to a 20-month high of 2.6% in September due to an increase in price of petrol as the government reduced the subsidy for petrol. (Source: Bank Negara Malaysia, Bloomberg, RHB Research Institute Sdn. Bhd. and CIMB Investment Bank) Market Review Equity FTSE Bursa Malaysia EMAS Shariah Index (“FBM Shariah”) commenced the year under review at 11,488.4 points before it declined to the lowest of 10,831.06 points on 27 November 2012. It touched the highest of 12,785.27 points on 24 October 2013 and closed at 12,742.2 points on 31 October 2013. For the year under review, the FBM Shariah gained 1,253.8 points or 10.91% meanwhile the FBM KLCI gained by 133.78 points or 8.00% to 8

close at 1,806.85 points. Among the key factors that contributed to the movement of the index are highlighted below:  The International Monetary Fund (IMF) reduced its global economic growth forecast by 0.2 percentage point to 3.1% in 2013 from 3.3% projected in April. This was the fifth consecutive time the IMF trimmed its prediction for global economic growth in 2013 as global growth increased slower than expected. The IMF reduced its 2013 projection for the US to 1.7% from 1.9% projected in April. Similarly, it expects the Euro zone to contract by 0.6% in 2013, sharper than the -0.4% projected in April. For the emerging economies, China‟s and India‟s real GDP growth forecasts were reduced to 7.8% and 5.6% respectively in 2013 from 8.1% and 5.8% projected in April.  The World Bank reduced its global GDP growth forecast for 2013 to 2.4% from 3.0%. The global growth, however, is envisaged to strengthen to 3.1% in 2014.  Standard & Poor's (S&P) announced downgrades of a set of euro area countries. The debt ratings of France and Austria were downgraded by one notch to AA+ from AAA. Malta, Slovakia and Slovenia were also downgraded by one notch. The ratings of Italy, Spain, Portugal and Cyprus were downgraded by two notches. S&P insisted that the region's leaders are not doing enough to solve their debt crisis.  The United Kingdom launched a second round of quantitative easing with £75 billion to protect the country‟s faltering economy amid the Euro zone debt problems.  The US implemented an open-ended quantitative easing and Japan added ¥10 trillion to its asset-purchase programme. (Source: Bloomberg and RHB Research Institute Sdn. Bhd.)

1.4

Market Outlook and Strategy  The equity market is expected to be volatile in the year 2013 and 2014. The equity market should be supported by domestic liquidity. However, possible monetary policy tightening by the Federal Reserve in the United States may provide downside risk for the equity market as foreign investors will sell Malaysian equities.

9

7.6 11.2 7.3 4.9 3.4 30.0 64.4 35.6 100.0

Note: a)

Return of the Fund

=

NAV per unit (end of year) - 1 NAV per unit (beginning of year)

b) Capital Growth

= Total Return of the Fund – Income Return

c)

= {Income Distribution per Unit / NAV per Unit on beginning of year} x 100

Income Return

d) Management Expenses Ratio

= The Management Expenses Ratio for the annual period are as above. It is the total management expenses expressed as an annual percentage of the Fund‟s average Net Asset Value.

e)

= It represents the average of the total acquisitions and disposals of the investment in the Fund for the annual period over the average Net Asset Value of the Fund calculated on a daily basis.

Portfolio Turnover Ratio

12

1.7

Unit Holdings as at 31 October 2013 BIMB i Dividend Fund

Size of Holdings

No. of Unit Holders % No.

5,000 and below

478

35.62

5,001 to 10,000

137

10,001 to 50,000

405

50,001 to 500,000 500,001 and above * Units Held by Holders Units Held by Manager Grand Total for The Fund

No. of Units Held Units % 1,391,246.80

0.31

10.21

990,232.48

0.22

30.18

10,137,647.48

2.28

296

22.06

47,250,976.05

10.62

25

1.86

385,205,589.97

86.57

1,341

99.93

444,975,692.78

100.00

1

0.07

400.00

0.00

1,342

100.00

444,976,092.78

100.00

*included under this category are nominee accounts.

1.8

Policy on Rebate and Soft Commission The Manager does not receive any soft commission from brokers. All dealings with brokers are executed at competitive market rates.

For and on behalf of The Manager BIMB INVESTMENT MANAGEMENT BERHAD Date: 11 December 2013

13

1.0 Laporan Pengurus Para Pemegang Unit yang Dihormati, Kami dengan sukacitanya membentangkan Laporan Pengurus BIMB i Dividend Fund bagi tahun kewangan berakhir 31 Oktober 2013. 1.1

Nama Dana/ Jenis Dana/ Kategori Dana/ Objektif Pelaburan Dana/ Penanda Aras Dana/ Polisi Agihan Dana

Nama Dana

BIMB i Dividend Fund

Jenis Dana

Dana Pendapatan dan Pertumbuhan

Kategori Dana Objektif Pelaburan Dana

Ekuiti Tujuan utama Dana ini adalah untuk mewujudkan peluang kepada pelabur, kombinasi pendapatan tetap dan berulang serta pertumbuhan modal dalam *jangkamasa sederhana sehingga jangkamasa panjang melalui pelaburan dalam ekuiti patuh Syariah yang menghasilkan dividen, yang mana mengikut sejarah menawarkan prestasi yang kukuh dan secara amnya lebih stabil berbanding pasaran ekuiti secara keseluruhan. *Nota: “Jangkamasa sederhana ke panjang” dalam konteks ini merujuk kepada 3 tahun atau lebih. Sebarang perubahan kepada objektif pelaburan Dana memerlukan kelulusan daripada Pemegang Unit.

Penanda Aras Dana

Dana akan diukur berdasarkan penanda aras pulangan mutlak sebanyak 6% setahun. Ia bukanlah pulangan yang dijamin dan ia hanyalah sebagai ukuran prestasi Dana. Dana ini mungkin atau mungkin tidak mencapai kadar pertumbuhan sebanyak 6% setahun dalam mana-mana tahun kewangan tertentu tetapi sasarannya adalah untuk mencapai kadar pertumbuhan ini melalui jangkamasa panjang.

Polisi Agihan Dana

Pengurus akan mengisytiharkan agihan tahunan (tertakluk kepada pendapatan diperolehi).

14

1.2

Pencapaian bagi Tahun Kewangan Berakhir 31 Oktober 2013

1.2.1 Kajian Pencapaian bagi BIMB i Dividend Fund Bagi tahun kewangan dalam kajian, BIMB i Dividend Fund (Dana) mengumumkan pengagihan pendapatan bersih sebanyak 2.15 sen seunit, bersamaan dengan pengagihan hasil sebanyak 7.70% setahun. Penanda aras prestasi terpilih dana adalah penanda aras pulangan yang mutlak sebanyak 6.00% setahun. Strategi kami adalah secara konsistennya mengekalkan tumpuan pelaburan terhadap saham-saham yang mempunyai rekod pencapaian dalam pengagihan dividen dan mempunyai potensi pertumbuhan modal dalam tempoh sederhana dan panjang. Bagi tahun kewangan berakhir 31 Oktober 2013, Dana telah mencapai matlamatnya untuk memberikan pendapatan dan pertumbuhan modal dalam jangka sederhana dan panjang kepada para pelaburnya melalui pelaburan ekuiti-ekuiti yang memberikan pulangan dividen. Pelaburan dalam ekuiti-ekuiti berkenaan pada asas sejarahnya menawarkan prestasi yang mantap dan secara amnya lebih stabil berbanding dengan pasaran secara keseluruhannya. Setakat 31 Oktober 2013, Dana mempunyai pendedahan sebanyak 89.2% dalam pasaran ekuiti. Dana kekal diurus selari dengan objektif yang dinyatakan dengan melabur dalam ekuiti-ekuiti yang menawarkan pulangan dividen. Bagi tahun berakhir 31 Oktober 2013, tidak terdapat sebarang perubahan ketara dalam hal ehwal pengurusan Dana dan tiada berlakunya sebarang keadaan yang menjejaskan kepentingan para pemegang unit sehingga tarikh Laporan Pengurus disediakan.

15

1.2.2 Jumlah Pulangan dan Purata Jumlah Pulangan bagi Tempoh Kewangan Berakhir pada 31 Oktober 2013 BIMB i Dividend Fund Purata Jumlah Jumlah Pulangan Pulangan (%) (%) Jangkamasa 1Tahun Sejak Pelancaran

Penanda Aras Purata Jumlah Jumlah Pulangan Pulangan (%) (%)

3.04

3.04

6.00

6.00

22.91

8.58

16.5

6.18

1.2.3 Jumlah Pulangan Tahunan Bagi 3 Tahun/ Tempoh Kewangan yang lalu

Tahun Kewangan 31 Oktober 2013

Jumlah Pulangan BIMB i Dividend Fund Penanda Aras (%) (%) 3.04 6.00

31 Oktober 2012

20.05

6.00

31 Oktober 2011

-0.76

3.68

*Sejak pelancaran pada 18 March 2011 sehingga 31 Oktober 2011. 1.2.4 Agihan Pendapatan Bagi 2 Tahun Kewangan yang lalu

Tahun Kewangan

31 Oktober 2013 31 Oktober 2012

Pengagihan Pendapatan Pengagihan Pengagihan Keuntugan (sen)/ unit setahun (%) 2.15 7.70 1.90

7.66

16

Penanda Aras (%) 6.00 6.00

Rajah 1: Pulangan Dana Berbanding Pulangan Penanda Aras

Nota: Sumber Data: BIMB Investment Management Berhad Data disahkan oleh: Perkasa Normandy Managers Sdn.Bhd Penanda Aras:”Pulangan mutlak sebanyak 6% setahun”

Nota: 1. Jumlah Pulangan telah disahkan oleh Perkasa Normandy Managers Sdn. Bhd. (363145-w) 2.

Jumlah Pulangan Purata adalah berpandukan formula berikut: Jumlah Pulangan Bilangan Tahun Bawah Kajian

Prestasi tahun-tahun sebelum ini tidak semestinya menjadi petunjuk prestasi masa depan dan harga unit serta pulangan pelaburan mungkin turun dan naik.

17

1.3

Ekonomi dan Kajian Pasaran Ekonomi a) Global  Pertumbuhan Keluaran Dalam Negara Kasar (GDP) Benar Amerika Syarikat (AS) adalah 2.8% dalam suku ketiga tahun 2013 dengan disokong oleh kegiatan meningkatkan inventori dan berlakunya peningkatan dalam pelaburan kediaman yang tetap. Pertumbuhan ekonomi AS telah meningkat 0.1% dalam suku keempat tahun 2012.  Inflasi kasar AS menyusut kepada 1.5% pada bulan Ogos daripada 2.0% pada bulan Julai 2013 dalam perbandingan tahun-ke-tahun, menandakan bahawa tekanan harga berkurangan.  Kadar pengangguran AS meningkat kepada 7.3% daripada jumlah tenaga buruh bagi bulan Oktober 2013 daripada 7.2% pada bulan September 2013. Kadar pengangguran AS adalah 7.6% daripada jumlah tenaga buruh pada bulan Mac 2013.  Rizab Persekutuan AS mengekalkan program Kelonggaran Kuantitatif (QE) yang melibatkan pembelian bon berjumlah AS$85 bilion setiap bulan dan julat sasaran kadar dana persekutuan antara 0-0.25% dalam mesyuarat dasar kewangan pada 30 Oktober 2013 kerana lebih banyak bukti diperlukan tentang berpanjangannya pemulihan ekonomi sebelum menetapkan tempoh masa untuk mengurangkan QE.  Suruhanjaya Eropah („EC‟) mengurangkan unjuran pertumbuhan zon Euro bagi tahun 2014 kepada 1.1% daripada 1.2% dan menaikkan unjuran kadar pengangguran kepada 12.2% daripada 12.1%. Bagi tahun 2013, „EC‟ menjangkakan ekonomi mengalami penguncupan sebanyak 0.4% dengan kadar pengangguran berada pada paras 12.2%, kedua-dua tidak berubah dari unjuran bulan Mei.  Inflasi zon Euro bagi bulan Oktober jatuh kepada 0.7% berdasarkan kadar tahunan daripada 1.1% dalam bulan September.  Pengangguran zon Euro pada bulan September berada pada paras rekodnya iaitu 12.2% apabila beberapa negara anggotanya melaksanakan langkah-langkah jimat cermat yang ketat untuk mengurangkan tenaga kerja mereka dalam usaha mengekang defisit-defisit dan hutang-hutang mereka.

18

 Bank Pusat Eropah (ECB) mengekalkan kadar-kadar faedah pada paras catatan rekod terendah sebanyak 0.5% pada 2 Oktober 2013, untuk tempoh selama lima bulan berturut-turut, selepas mengurangkannya sebanyak suku mata peratusan pada bulan Mei 2013. Presiden ECB berkata data ekonomi terbaharu menunjukkan ekonomi Zon Euro semakin baik tetapi pemulihannya masih "lemah, rapuh, tidak tetap", kerana kegiatan pemberian pinjaman kepada sektor perniagaan masih lemah. Beliau menambah kadar faedah semasa yang rendah diperlukan untuk menyokong ekonomi yang rapuh pada saat ketika kerajaan masih perlu menstrukturkan semula ekonomi dan mengurangkan paras hutang berlebihan mereka. (Sumber: Bloomberg dan RHB Research Institute Sdn. Bhd.) b) Dalam Negara  Jawatankuasa Dasar Kewangan (MPC) Bank Negara Malaysia (BNM) mengekalkan Kadar Dasar Semalaman pada paras 3.0% pada 5 September. Pada penilaian MPC, terdapat peningkatan dalam ketidakpastian terhadap risiko yang menyelubungi pertumbuhan dalam negara dan inflasi.  Pertumbuhan pinjaman berada pada paras 9.5% pada bulan September 2013 dalam perbandingan tahun-ke-tahun berikutan permintaan kredit lebih baik daripada sektor perniagaan dan pinjaman isi rumah yang stabil. Para pengguna kebanyakannya membuat pinjaman untuk membeli kereta, hartanah kediaman dan kad-kad kredit manakala permintaan kredit perniagaan diperoleh terutamanya daripada perdagangan borong dan peruncitan, hartanah serta sektor kewangan dan insurans.  Rizab antarabangsa meningkat sebanyak RM22.3 bilion kepada RM446.2 bilion pada 31 Oktober 2013 daripada RM423.9 bilion pada 31 Oktober 2012. Kedudukan rizab ini memadai untuk membiayai 9.7 bulan import tertangguh dan ia adalah 3.9 kali hutang luar negeri jangka pendek.  Inflasi utama Malaysia meningkat ke paras tertinggi dalam tempoh 20 bulan iaitu sebanyak 2.6% pada bulan September disebabkan oleh peningkatan harga petrol apabila kerajaan mengurangkan subsidi bagi bahan api berkenaan. (Sumber: Bloomberg, RHB Research Institute Sdn. Bhd. dan CIMB Investment Bank) 19

Kajian Pasaran Ekuiti Indeks Syariah Emas FTSE Bursa Malaysia (“FBM Syariah) memulakan tahun kewangan dalam kajian pada paras 11,488.4 mata sebelum jatuh ke paras terendahnya iaitu 10,831.06 mata pada 27 November 2012. Indeks itu mencapai paras tertinggi iaitu 12,785.27 mata pada 24 Oktober 2013 dan ditutup pada paras 12,742.2 mata pada 31 Oktober 2013. Bagi tahun kewangan dalam kajian, FBM Syariah mencatat kenaikan sebanyak 1,253.8 mata atau 10.91% manakala FBM KLCI untung sebanyak 133.78 mata atau 8.00% untuk ditutup pada 1,806.85 mata. Antara faktor utama yang menyumbang kepada pergerakan indeks adalah seperti di bawah:  Tabung Kewangan Antarabangsa (IMF) mengurangkan ramalan pertumbuhan ekonomi dunia sebanyak 0.2 mata peratusan kepada 3.1% pada tahun 2013 daripada unjuran 3.3% pada bulan April. Ini adalah kali kelima berturut-turut, IMF mengurangkan unjuran pertumbuhan ekonomi dunia bagi tahun 2013 apabila perkembangan global meningkat lebih perlahan daripada yang dijangkakan. IMF mengurangkan unjuran pertumbuhan AS bagi tahun 2013 kepada 1.7% daripada 1.9% pada bulan April. Zon Euro dijangka menguncup sebanyak 0.6% pada tahun 2013, lebih teruk berbanding -0.4% yang dicatatkan pada bulan April. Bagi ekonomi yang baru muncul, China dan India, unjuran pertumbuhan KDNK benar telah dikurangkan, masing-masing kepada 7.8% dan 5.6% pada tahun 2013 daripada 8.1% dan 5.8% yang dibuat unjurannya pada bulan April.  Bank Dunia mengurangkan unjuran pertumbuhan KDNK global bagi tahun 2013 kepada 2.4% daripada 3.0%. Pertumbuhan dunia, bagaimanapun, dijangka berada dalam keadaan lebih kukuh pada paras 3.1% bagi tahun 2014.  Standard & Poor‟s (S&P) mengumumkan penurunan taraf sekumpulan negara-negara Euro. Penarafan hutang Perancis dan Austria diturunkan sebanyak satu takuk kepada AA+ dari AAA. Malta, Slovakia dan Slovenia juga diturunkan taraf sebanyak setakuk. Itali, Sepanyol, Portugal dan Cyprus menyaksikan penarafannya diturunkan sebanyak dua takuk. S&P menegaskan usaha yang dilakukan oleh para pemimpin rantau berkenaan masih belum cukup untuk menyelesaikan krisis hutang mereka.

20

 United Kingdom melancarkan pusingan kedua program kelonggaran kuantitatif bernilai £75 bilion untuk melindungi ekonominya yang tidak bermaya di tengah-tengah kemelut hutang zon Euro.  AS melaksanakan program kelonggaran kuantitatif yang terbuka dan Jepun pula menambah ¥10 trilion lagi kepada program pembelian aset yang dijalankannya. (Sumber: Bloomberg dan RHB Research Institute Sdn. Bhd.) 1.4

Tinjauan Pasaran dan Strategi  Pasaran ekuiti dijangka berada dalam keadaan meruap atau turun naik dalam tahun 2013 dan 2014. Pasaran itu seharusnya mendapat sokongan mudah tunai dalam pasaran domestik. Bagaimanapun, pelaksanaan pengetatan dasar kewangan yang mungkin dilakukan oleh Rizab Persekutuan di AS dilihat boleh menyebabkan berlakunya risiko kejatuhan dalam pasaran ekuiti kerana pelabur-pelabur asing akan menjual ekuiti Malaysia yang dipegang mereka.  Ekonomi global terus mengalami pertumbuhan yang sederhana manakala ekonomi negara-negara pasaran baru muncul terus berkembang pada kadar sederhana disokong oleh permintaan domestik.  Dalam ekonomi Malaysia, permintaan domestik terus menyokong pertumbuhan di tengah-tengah kelemahan permintaan luar. Dalam melangkah ke hadapan, pertumbuhan ekonomi dijangka mendapat sokongan daripada peluasan berterusan dalam aktiviti dalam negara.  Strategi ekuiti kami ialah melabur dalam syarikat-syarikat yang mampu meraih pendapatan yang baik, lembaran imbangan yang kukuh, hasil dividen yang tinggi, penilaian munasabah dan prospek pertumbuhan yang baik. Berikutan pasaran ekuiti yang tidak menentu, strategi kami juga ialah menjual saham-saham apabila penilaiannya tinggi dan membeli saham apabila berlaku pembetulan harga di pasaran.

21

7.6 11.2 7.3 4.9 3.4 30.0 64.4 35.6 100.0

Nota:a)

Pulangan ke atas Dana

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

b) Penambahan Modal

= Pulangan Ke atas Dana – Pulangan Pendapatan

c)

= {Pengagihan Pendapatan Se Unit / NAB se unit pada “ex-date”} x 100

Pulangan Pendapatan

d) Nisbah Perbelanjaan Pengurusan

e)

Nisbah Pusing Ganti Portfolio

= Ia dikira dengan mengambil jumlah perbelanjaan pengurusan sepertimana yang dinyatakan sebagai peratusan tahunan daripada jumlah purata Nilai Aset Bersih Dana. = Ia dikira dengan mengambil purata jumlah perolehan dan pelupusan pelaburan dalam Dana bagi tempoh tahunan dibahagi dengan purata Nilai Aset Bersih Dana yang dikira pada asas harian

24

1.7

Pecahan Pegangan Unit pada 31 Oktober 2013

Saiz Dipegang Kurang daripada 5,000 5,001 hingga 10,000 10,001 hingga 50,000 50,001 hingga 500,000 500,001 dan ke atas * Unit yang dipegang oleh Pemegang Unit Unit yang dipegang oleh Pengurus Jumlah Keseluruhan Dana

BIMB i Dividend Fund Bilangan Pemegang Bilangan Pemegang Unit Unit % Bilangan % Bilangan 478

35.62

1,391,246.80

0.31

137

10.21

990,232.48

0.22

405

30.18

10,137,647.48

2.28

296

22.06

47,250,976.05

10.62

25

1.86

385,205,589.97

86.57

1,341

99.93

444,975,692.78

100.00

1

0.07

400.00

0.00

1,342

100.00

444,976,092.78

100.00

*Akaun Penama juga termasuk di bawah kategori ini. 1.8

Polisi Rebat dan Komisyen Bukan Tunai Pihak pengurusan tidak menerima sebarang komisyen bukan tunai daripada broker. Semua urusniaga dengan broker telah dilaksanakan pada kadar pasaran yang berdaya saing.

Untuk dan bagi pihak Pengurus BIMB INVESTMENT MANAGEMENT BERHAD Tarikh: 11 Disember 2013 Nota: Laporan ini telah diterjemahkan daripada laporan asal (dalam Bahasa Inggeris). Jika terdapat perbezaan, sila rujuk kepada laporan Bahasa Inggeris.

25

2.0 Trustee’s Report HSBC (MALAYSIA) TRUSTEE BERHAD ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2013 To the Unit Holders of BIMB i Dividend Fund We have acted as Trustee of BIMB i Dividend Fund (“the Fund”) for the financial year ended 31 October 2013. To the best of our knowledge, BIMB Investment Management Berhad (“the Manager” or “the Management Company”) has operated and managed the Fund in accordance with the following: 1.

limitation imposed on the investment powers of the Management Company and the Trustee under the Deed, the Supplemental Deed, the Securities Commission‟s Guidelines on Unit Trust Funds, the Capital Market and Services Act 2007 and other applicable laws;

2.

valuation/ pricing is carried out in accordance with the Deed, the Supplemental Deed and any regulatory requirement; and

3.

creation and cancellation of units are carried out in accordance with the Deed, the Supplemental Deed and any regulatory requirements.

A gross distribution of 2.1543 sen per unit was declared to the unit holders for the financial year ended 31 October 2013. We are of the view that the distribution is not inconsistent with the objective of the Fund. For HSBC (MALAYSIA) Trustee Berhad ………………………

TAN BEE NIE Head, Trustee Operations Kuala Lumpur Date: 11 December 2013

26

3.0 Shariah Committee’s Report ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2013 ِ‫بِسۡمِ ٱهللِ ٱلرََّحۡمَـٰنِ ٱلرََّحِيم‬ To the Unit Holders of BIMB i Dividend Fund We have acted as the Shariah Committee of BIMB i Dividend Fund. Our responsibilities are to ensure that the procedures and processes employed by BIMB Investment Management Berhad and that the provisions of the Deed dated 23 June 2010 are in accordance with Shariah principles. In our opinion, BIMB Investment Management Berhad has managed BIMB i Dividend Fund in accordance with Shariah principles and complied with applicable guidelines, rulings or decisions issued by the Securities Commission pertaining to Shariah matters for the financial year ended 31 October 2013. In addition, we also confirm that the investment portfolio of BIMB i Dividend Fund comprises securities which have been classified as Shariah-compliant by the Shariah Advisory Council (SAC) of the Securities Commission, as the case may be and that all deposits and money market instruments placed by the Funds are Shariah-compliant. ‫ﻭﺍهلل ﺃﻋلﻡ‬ For and on behalf of the Shariah Committee ……………………………………………….. USTAZ DR. AHMAD SHAHBARI@SOBRI SALAMON (Chairman) ……………………………………………….. USTAZ DR. YUSOF RAMLI (Committee Member) ……………………………………………….. USTAZAH DR. ASMAK AB. RAHMAN (Committee Member) Date: 11 December 2013 27

4.0 Director’s Declaration Report ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2013

To the Unit Holders of BIMB i Dividend Fund

We, Mustapha Bin Hamat and Nazaruddin Bin Othman, being two of the directors of the Manager, BIMB Investment Management Berhad, for BIMB i Dividend Fund do hereby state that in our opinion, the accompanying Statement of Financial Position, Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Net Asset Value and Statement of Cash Flows are drawn up so as to give true and fair view of the Statement of Financial Position of the Fund as at 31 October 2013 and Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Net Asset Value and Statement of Cash Flows for the year ended on that date.

For and on behalf on the Board of Directors, …………………………………………… Mustapha Bin Hamat (Non-Executive Independent Director) ………………………………………….. Nazaruddin Bin Othman (Chief Executive Officer)

Date: 11 December 2013

28

5.0 Independent Auditors’ Report (Established in Malaysia) Independent Auditors’ Report to the Unitholders of BIMB i Dividend Fund Report on the Financial Statements We have audited the financial statements of BIMB i-Dividend Fund (“the Fund”), which comprise the statement of financial position as at 31 October 2013, and the statements of profit or loss and other comprehensive income, changes in net asset value and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 32 to 66. Manager’s and Trustee’s Responsibility for the Financial Statements The Manager of the Fund is responsible for the preparation of financial statements that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and for such internal control as the Manager determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Trustee is responsible for ensuring that the Manager maintains proper accounting and other records as are necessary to enable true and fair presentation of these financial statements. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity‟s preparation of financial statements that give a true and fair view in order 29

to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity‟s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of the Fund as of 31 October 2013 and of its financial performance, changes in net asset attributable to unitholders and cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards. Other Matters As stated in Note 2(a) to the financial statements, BIMB i-Dividend Fund adopted Malaysian Financial Reporting Standards (“MFRS”) and International Financial Reporting Standards (“IFRS”) on 1 November 2012 with a transition date of 1 November 2011. These standards were applied retrospectively by the Manager to the comparative information in these financial statements, including the statements of financial position as at 31 October 2012 and 1 November 2011, and the statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year ended 31 October 2012 and related disclosures. We were not engaged to report on the comparative information that is prepared in accordance with MFRS and IFRS, and hence it is unaudited. Our responsibilities as part of our audit of the financial statements of the Fund for the year ended 31 October 2013 have, in these circumstances, included obtaining sufficient appropriate audit evidence that the opening balances as at 1 November 2012 do not contain misstatements that materially affect the financial position as of 31 October 2013 and financial performance and cash flows for the year then ended.

30

11 December 2013

6.0 Financial Statements (Audited) 6.1 Statement of Financial Position as At 31 October 2013 31.10.2013 Note

(RM)

31.10.2012 %

(RM)

1.11.2011 %

(RM)

%

Investments Quoted securities

4

105,690,629

89.2

34,802,933

74.5

7,325,333

64.0

-

-

1,097,627

2.3

-

-

683,965

0.6

3,482,660

7.5

53,202

0.5

Other receivables

389,214

0.3

12,112

0.0

18,095

0.2

Current tax assets

166,037

0.1

35,441

0.0

2,115

0.0

21,557,749

18.2

13,448,471

28.8

4,073,158

35.5

128,487,594

108.4

52,879,244

113.1

11,471,903

100.2

-

-

2,853,171

6.1

-

-

253,051

0.2

-

-

-

-

201,718

0.2

82,554

0.2

26,935

0.2

9,566,986

8.0

3,182,625

6.8

-

-

Total Liabilities

10,021,755

8.4

6,118,350

13.1

26,935

0.2

Net Asset Value

118,465,839

100.0

46,760,894

100.0

11,444,968

100.0

123,794,643

104.4

46,480,891

99.4

11,501,017

100.5

(5,328,804)

4.4

280,003

0.6

(56,049)

(0.5)

118,465,839

100.0

46,760,894

100.0

11,444,968

100.0

Other assets Amount due from stockbrokers Amount due from Manager

Cash and cash equivalents

5

Total assets Liabilities Amount due to stockbrokers Amount due to Manager Other payables Distribution payables

Unitholders’ funds Unitholders‟ capital (Accumulated Losses)/ Retained profits

6

Number of Units in Circulation

444,976,093

167,506,567

46,129,115

Net Asset Value per Unit (sen) – Ex distribution

26.6

27.9

24.8

The notes are an integral part of these financial statements.

32

6.2 Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 31 October 2013

Note

2013 (RM)

2012 (RM)

Income Gross dividends from shares quoted in Malaysia Gain on sale of shares Income from short term investments Net (loss)/ gain from financial instruments at fair value through profit or loss

3,917,873

1,105,077

7,464,474

2,542,255

567,115

168,189

(6,477,861)

192,915

5,471,601

4,008,436

Expenses Manager‟s fee

7

1,394,257

359,789

Trustee‟s fee

8

74,360

19,189

Auditors‟ remuneration

10,000

10,000

Administration expenses

12,405

6,875

Tax agent‟s fee

3,000

2,006

1,494,022

397,859

3,977,579

3,610,577

(19,400)

(91,900)

3,958,179

3,518,677

Realised amount

10,436,040

3,325,762

Unrealised amount

(6,477,861)

192,915

3,958,179

3,518,677

Net income before taxation Tax expense

9

Net income for the year Net income for the year consist of:


33

6.2 Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 31 October 2013 (continued)

Note

Net income for the year

2013 (RM)

3,958,179

3,518,677

-

-

Other comprehensive income


34

2012 (RM)

6.3 Statement of Changes in Net Asset Value for the Year Ended 31 October 2013

Unitholders’ capital (RM) 11,501,017

(Accumulated loss)/ Retained profits (RM) (56,049)

Total (RM) 11,444,968

39,107,495

-

39,107,495

-

-

-

(4,127,621)

-

(4,127,621)

-

(3,182,625)

(3,182,625)

34,979,874

(3,182,625)

31,797,249

-

3,518,677

3,518,677

As at 31 October 2012

46,480,891

280,003

46,760,894

As at 1 November 2012 Movement in unitholders‟ contribution or distribution Creation of units via cash Creation of units via reinvestment of distribution Cancellation of units

46,480,891

280,003

46,760,894

82,589,210

-

82,589,210

3,080,944

-

3,080,944

(8,365,402)

-

(8,365,402)

-

(9,566,986)

(9,566,986)

77,313,752

(9,566,986)

67,746,766

-

3,958,179

3,958,179

123,794,643

(5,328,804)

118,465,839

Note As at 1 November 2011 Movement in unitholders‟ contribution or distribution Creation of units via cash Creation of units via reinvestment of distribution Cancellation of units Distribution Total distribution to unitholders Net income for the year

Distributions Total distribution to unitholders Net income for the year As at 31 October 2013

10

10

The notes are an integral part of these financial statements. 35

6.4 Statement of Cash Flows for the Year Ended 31 October 2013 2013 (RM)

2012 (RM)

Cash Flows from operating activities Proceeds from sale of investments Dividend received Income from short term investments Audit fee paid Payment for administrative expenses Trustee fee paid

100,898,499

18,873,281

3,734,377

988,394

567,115

168,189

-

(8,860)

(15,410)

(7,281)

(68,833)

(16,641)

(1,290,615)

(312,018)

(172,898,728)

(41,860,167)

(69,073,595)

(22,175,103)

Creation of units

85,396,905

35,678,037

Cancellation of units

(8,112,351)

(4,127,621)

(101,681)

-

77,182,873

31,550,416

Net increase in cash and cash equivalents

8,109,278

9,375,313

Cash and Cash Equivalents at 1 November

13,448,471

4,073,158

Cash and cash equivalents at 31 October

21,557,749

13,448,471

568,161

1,200,656

20,989,588

12,247,815

21,557,749

13,448,471

Management fee paid Purchase of investments Net cash used in operating activities Cash flows from financing activities

Payment of distributions Net cash generated from financing activities

Cash and cash equivalents comprise: Cash at bank Short term investments

The notes are an integral part of these financial statements. 36

Notes to the financial statements 1.

Information on the Fund BIMB i Dividend Fund (hereinafter referred to as “the Fund”) was constituted pursuant to the execution of a Deed dated 23 June 2010 between the Manager - BIMB Investment Management Berhad., the Trustee – HSBC (Malaysia) Trustee Berhad and the registered holders of the Fund. The addresses of the registered office and principal place of business of the Fund are as follows: Registered office Level 32, Menara Bank Islam No. 22, Jalan Perak 50450 Kuala Lumpur Principal place of business Level 19, Menara Bank Islam No.22, Jalan Perak 50450 Kuala Lumpur The principal activity of the Fund is to invest in Authorised Investments as defined in the Deed, which include stocks and shares of companies quoted on Bursa Malaysia, and short term deposits. The Manager, BIMB Investment Management Berhad, a company incorporated in Malaysia, is a subsidiary of Bank Islam Malaysia Berhad. The financial statements were approved by the Board of Directors on 11 December 2013

37

2.

Basis of Preparation

(a) Statement of Compliance The financial statements of the Fund have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRSs”), International Financial Reporting Standards in Malaysia and Securities Commission‟s Guidelines on Unit Trust Funds. This is the Fund‟s first financial statements prepared in accordance with MFRSs and MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards has been applied. In the previous years, the financial statements of the Fund were prepared in accordance with Financial Reporting Standards (“FRS”). The transition to MFRS has no financial impact to the financial statements of the Fund. The Fund has adopted the amendments to MFRS 101, Presentation of Financial Statements which are effective for annual periods beginning on or after 1 November 2012. The adoption of the amendments to MFRS 101 has no impact on the financial statements other than the presentation format of the statement of financial position and the statement of profit or loss and other comprehensive income. The following are accounting standards, amendments and interpretations of the MFRS framework that have been issued by the Malaysian Accounting Standards Board (“MASB”) but have not been adopted by the Fund: MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2013

       

MFRS 10, Consolidated Financial Statements MFRS 11, Joint Arrangements MFRS 12, Disclosure of Interests in Other Entities MFRS 13, Fair Value Measurement MFRS 119, Employee Benefits (2011) MFRS 127, Separate Financial Statements (2011) MFRS 128, Investments in Associates and Joint Ventures (2011) IC Interpretation 20, Stripping Costs in the Production Phase of a Surface Mine 38

2.

Basis of Preparation (continued)

(a) Statement of Compliance (continued) MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2013

         

Amendments to MFRS 7, Financial Instruments: Disclosures – Offsetting Financial Assets and Financial Liabilities Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards – Government Loans Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements 2009-2011 Cycle) Amendments to MFRS 101, Presentation of Financial Statements (Annual Improvements 2009-2011 Cycle) Amendments to MFRS 116, Property, Plant and Equipment (Annual Improvements 2009-2011 Cycle) Amendments to MFRS 132, Financial Instruments: Presentation (Annual Improvements 2009-2011 Cycle) Amendments to MFRS 134, Interim Financial Reporting (Annual Improvements 2009-2011 Cycle) Amendments to MFRS 10, Consolidated Financial Statements: Transition Guidance Amendments to MFRS 11, Joint Arrangements: Transition Guidance Amendments to MFRS 12, Disclosure of Interests in Other Entities: Transition Guidance

MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2014  Amendments to MFRS 10, Consolidated Financial Statements: Investment Entities  Amendments to MFRS 12, Disclosure of Interests in Other Entities: Investment Entities  Amendments to MFRS 127, Separate Financial Statements (2011): Investment Entities  Amendments to MFRS 132, Financial Instruments: Presentation – Offsetting Financial Assets and Financial Liabilities  Amendments to MFRS 136, Impairment of Assets – Recoverable Amount Disclosures for Non-Financial Assets  Amendments to MFRS 139, Financial Instruments: Recognition and Measurement – Novation of Derivatives and Continuation of Hedge Accounting  IC Interpretation 21, Levies 39

from the annual period beginning on 1 November 2013 for those standards, amendments or interpretations that are effective for annual periods beginning on or after 1 January 2013, except for MFRS 10,11,12,119,127,128, IC Interpretation 20, amendments to MFRS 116,10, 11 and 12 which are not applicable to the Fund. from the annual period beginning on 1 November 2014 for those standards, amendments or interpretations that are effective for annual periods beginning on or after 1 January 2014, except for MFRS 10,12,127,132,136, 139, and IC Interpretation 21 which are not applicable to the Fund. from the annual period beginning on 1 November 2015 for those standards, amendments or interpretations that are effective for annual periods beginning on or after 1 January 2015.

2.

Basis of Preparation (continued)

(d) Use of Estimates and Judgements The preparation of financial statements in conformity with MFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods effected. There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have significant effect on the amounts recognised in the financial statements. 3.

Significant Accounting Policies The accounting policies set out below have been applied consistently to the periods presented in these financial statements, and in preparing the opening MFRS statements of financial position of the Fund at 1 November 2011 (the transition date to MFRS framework), unless otherwise stated.

(a) Financial Instruments (i) Initial recognition and measurement A financial instrument is recognised in the statement of financial statements when, and only when, the Fund becomes a party to the contractual provisions of the instrument. A financial instrument is recognised initially, at its fair value plus, in the case of a financial instrument not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument.

41

3.

Significant Accounting Policies (continued)

(a) Financial Instruments (continued) (ii) Financial instrument categories and subsequent measurement The Fund categorises financial instruments as follows: Financial assets (a)

Financial assets at fair value through profit or loss Fair value through profit or loss category comprises financial assets that are held for trading, or financial assets that are specifically designated into this category upon initial recognition. These include quoted securities. Financial assets categorised as fair value through profit or loss are subsequently measured at their fair values with the gain or loss recognised in the statement of profit or loss and other comprehensive income.

(b)

Financing and receivables Financing and receivables category are debt instruments that are not quoted in an active market and these comprises amount due from stockbroker, amount due from manager, other receivables, and cash and cash equivalents. Financial assets categorised as financing and receivables are subsequently measured at amortised cost using the effective profit method.

All financial assets except for those measured at fair value through profit or loss, are subject to review for impairment, note 3(c). Financial liabilities All financial liabilities are subsequently measured at amortised cost. Financial liabilities measured at amortised cost comprises amount due to stockbroker, amount due to Manager, other payables and distribution payable.

42

3.


(a) Financial Instruments (continued) (iii) Derecognition A financial asset or part of it is derecognised when, and only when the contractual rights to the cash flows from the financial asset expire or the financial asset is transferred to another party without retaining control or substantially all risks and rewards of the asset. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain or loss that had been recognised in equity is recognised in profit or loss. A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss. (b) Cash and cash equivalents Cash and cash equivalents consist of cash at bank and short term investments with licensed financial institutions which are readily convertible to cash with an insignificant risk of changes in value with original maturities of three months or less, and are used by the Fund in the management of its short term commitments. Cash and cash equivalents are categorised and measured as financing and receivables in accordance with policy Note 3(a)(ii)(b).

43

3.


(c) Impairment Financial assets All financial assets (except for financial assets categorised as fair value through profit or loss) are assessed at each reporting date whether there is any objective evidence of impairment as a result of one or more events having an impact on the estimated future cash flows of the asset. Losses expected as a result of future events, no matter how likely, are not recognised. An impairment loss in respect of financing and receivables is recognised in profit or loss and is measured as the difference between the asset‟s carrying amount and the present value of estimated future cash flows discounted at the asset‟s original effective profit rate. The carrying amount of the asset is reduced through the use of an allowance account. (d) Unitholders’ Capital The Fund issues cancellable units, which are cancelled at the holder‟s option and are classified as equity. Cancellable units can be put back to the Fund at any time for cash equal to a proportionate share of the Fund‟s net asset value. The outstanding units is carried at the redemption amount that is payable at the financial position date if the holder exercises the right to put the unit back to the Fund. Units are created and cancelled at the holder‟s option at prices based on the Fund‟s net assets value per unit at the time of creation or cancellation. The Fund‟s net assets value per unit is calculated by dividing the net assets attributable to unitholders with the total number of outstanding units. In accordance with the Securities Commission‟s Guidelines on Unit Trust Funds in Malaysia, investment positions are valued based on the last traded market price for the purpose of determining the net asset value per unit for creations and cancellations. The units in the Fund are puttable instruments, classified as equity, which entitle the unitholders to a pro-rata share of the net asset of the Fund. The units are subordinated and have identical features. There is no contractual obligation to deliver cash or another financial asset other than the obligation on the Fund to repurchase the units. The total expected cash flows from the units are based on the change in the net asset of the Fund. 44

3.


(e) Revenue recognition (i) Dividend income Dividend from financial assets is recognised when right to receive payment is established. (ii) Income from short term investments Income from short term investments are recognised in the statement of profit or loss and other comprehensive income as it accrues, taking into account the effective profit on the asset. (f) Taxation Tax expense comprises current and deferred tax. Tax expense is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. (g) Distribution Distributions are at the discretion of the Fund. A distribution to the Fund‟s unitholders is accounted for as a deduction from realised reserves. A proposed distribution is recognised as a liability in the period in which it is declared. (h) Net Asset Value The Net Asset Value is calculated after deducting the retained earnings allocated for distribution.

45

4.

Quoted securities

As at 31.10.2013 Company’s Name (A) i)

iv)

Market Value (RM)

Construction Hock Seng Lee Berhad IJM Corporation Berhad Malaysian Resources Corporation Berhad Mudajaya Group Berhad WCT Holdings Berhad

iii)

Cost (RM)

Main Market Gamuda Berhad

ii)

Number of shares held

Percentage of value of Funds at 31.10.2013 (%)

Consumer products Bonia Corporation Berhad MSM Malaysia Holdings Berhad

Industrial products Perisai Petroleum Teknologi Berhad Shell Refining Company Berhad

Infrastructure Wesports Holdings Berhad YTL Power International Berhad

1,356,000

6,420,845

6,603,720

5.57

757,600

1,472,480

1,492,472

1.26

685,000

3,905,466

3,973,000

3.35

2,547,000

4,125,740

3,642,210

3.08

1,520,400

4,288,486

4,226,712

3.57

953,800

2,428,381

2,336,810

1.97

7,819,800

22,641,398

22,274,924

18.80

40,000

135,897

136,400

0.11

127,700

655,940

635,946

0.54

167,700

791,837

772,346

0.65

1,792,500

2,643,920

2,527,425

2.13

60,000

622,991

427,200

0.36

1,852,500

3,266,911

2,954,625

2.49

62,000

156,550

159,340

0.13

253,000

543,914

480,700

0.41

315,000

700,464

640,040

0.54

46

4.

Quoted securities (continued)

As at 31.10.2013 Company’s Name

(A) v)

vi)

vii)

Main Market (continued) Plantation Hap Seng Plantations Holdings Berhad IOI Corporation Berhad Kuala Lumpur Kepong Berhad


Cost (RM)

Market Value (RM)


806,700

2,441,122

2,137,755

1.81

127,100

686,634

691,424

0.58

44,500

1,022,825

1,027,950

0.87

978,300

4,150,581

3,857,129

3.26

Glomac Berhad LBS Bina Group Berhad Mah Sing Group Berhad Matrix Concepts Holdings Berhad SP Setia Berhad

1,527,600

1,906,794

1,726,188

1.46

3,356,300

5,690,806

5,974,214

5.04

1,314,099

3,175,342

2,943,582

2.49

1,735,000

5,102,736

5,031,500

4.25

1,119,700

4,129,931

3,437,479

2.90

Sunway Berhad

1,821,200

5,570,023

5,081,148

4.29

UEM Sunrise Berhad

1,551,500

4,683,278

3,630,510

3.06

12,425,399

30,258,910

27,824,621

23.49

2,025,700

4,109,990

4,193,199

3.54

Properties

Reits Al-Hadharah Boustead REIT

47

4.



(A) viii)

Main Market (continued) Trading and services Bumi Armada Berhad Dayang Enterprise Holdings Berhad Dialog Group Berhad Maxis Berhad Media Chinese International Limited MMC Corporation Berhad Parkson Holdings Berhad Sime Darby Berhad SapuraKencana Petroleum Berhad Star Publications Malaysia Berhad Tenaga Nasional Berhad Telekom Malaysia Berhad


Cost (RM)

Market Value (RM)


517,000

2,051,165

2,047,320

1.73

135,000

698,781

739,800

0.62

954,000

2,663,754

2,623,500

2.21

328,000

2,354,921

2,358,320

1.99

2,752,400

4,223,006

2,945,068

2.49

1,030,300

2,799,551

2,761,204

2.33

565,100

2,620,597

2,124,776

1.79

954,500

8,998,882

9,096,385

7.68

1,897,400

7,533,353

7,589,600

6.41

1,087,100

3,517,678

2,706,879

2.28

120,000

1,074,734

1,131,600

0.96

596,000

3,167,902

3,123,040

2.64

10,936,800

41,704,324

39,247,492

33.13

48

4.



(A) ix)

Main Market (continued) Warrant Gamuda Berhad - Warrant D LBS Bina Group Berhad - Warrant A Mah Sing Group Berhad - Warrant B Sunway Berhad - Warrant A


Cost (RM)

Market Value (RM)


97,900

208,214

214,401

0.18

456,500

382,843

365,200

0.31

2,280,500

1,403,963

1,311,288

1.11

2,846,663

2,546,375

2,035,364

1.72

5,681,563

4,541,395

3,926,253

3.32

112,165,810

105,690,629

89.22

Total portfolio investment as at 31 October 2013

49

4.



ii)

iv)

v)

Cost (RM)

Market Value (RM)


Main Market Consumer products MSM Malaysia Holdings Bhd. Padiberas Nasional Berhad

127,700

655,940

639,777

1.4

438,500

1,350,880

1,442,665

3.0

566,200

2,006,820

2,082,442

4.4

294,000

913,269

890,820

1.9

10,000

47,078

51,400

0.1

304,000

960,347

942,220

2.0

60,000

622,991

528,000

1.1

253,000

543,914

412,390

0.9

696,700

2,136,367

2,048,298

4.4

21,500

459,708

460,530

1.0

26,200

188,781

187,592

0.4

744,400

2,784,856

2,696,420

5.8

Finance BIMB Holdings Berhad Syarikat Takaful Malaysia Berhad

iii)


Industrial Products Shell Refining Company Berhad Infrastructure YTL Power International Berhad Plantation Hap Seng Plantations Holdings Berhad Kuala Lumpur Kepong Berhad United Malacca Berhad

50

4.



(A) vi)

vii)

ix)

Main Market (continued) Properties Mah Sing Group Berhad S P Setia Berhad

Reits Al-„Aqar Healthcare REIT Al-Hadrah Boustead REIT Axis REIT


Cost (RM)

Market Value (RM)


326,000

781,641

733,500

1.6

196,000

729,551

707,560

1.5

522,000

1,511,192

1,441,060

3.1

3,303,000

4,410,327

4,591,170

9.8

2,710,000

5,568,489

5,392,900

11.6

396,000

1,098,369

1,227,600

2.6

6,409,000

11,077,185

11,211,670

24.0

873,500

2,356,615

2,279,835

4.9

62,000

175,336

202,740

0.4

2,008,800

3,335,363

3,314,520

7.1

362,500

2,259,827

2,523,000

5.4

98,100

543,640

475,785

1.0

973,400

2,732,918

2,939,668

6.3

1,199,100

3,889,250

3,753,183

8.1

5,577,400

15,292,949

15,488,731

33.2

34,800,254

34,802,933

74.5

Trading and services Gas Malaysia Berhad IHH Helathcare Berhad Media Chinese International Limited Maxis Berhad Parkson Holdings Berhad Pos Malaysia Berhad Star Publication Malaysia Berhad

Total portfolio investment as at 31 October 2012 51

4.



ii)

Consumer products MSM Malaysia Holdings Bhd. UMW Holdings Bhd.

60,000

303,866

301,800

2.7

85,000

617,002

563,550

4.9

145,000

920,868

865,350

7.6

11,000

314,340

348,700

3.1

253,000

543,914

483,230

4.2

264,000

858,254

831,930

7.3

35,000

547,364

556,500

4.8

350,000

406,711

388,500

3.4

Plantation Batu Kawan Bhd. Properties Al-Aqar KPJ REIT

v)


Infrastructure

YTL Power International Bhd.

iv)

Cost (RM)

Market Value (RM)

Main Market

DIGI.Com Bhd.

iii)


Trading and services

Bumi Armada Bhd. Maxis Bhd. Malaysian Bulk Carriers Bhd. Petronas Dagangan Bhd. Plus Expressways Bhd. Star Publication Malaysia Bhd. Telekom Malaysia Bhd.

5,000

15,301

18,700

0.2

110,000

598,884

588,500

5.1

109,900

289,436

205,513

1.8

30,000

500,560

489,000

4.3

213,000

941,893

941,460

8.2

150,000

509,972

481,500

4.2

162,000

639,231

686,880

6.0

779,900

3,495,277

3,411,553

29.8

52

4.



(A) vi)


Cost (RM)

Main Market (continued) Industrial products

Petronas Gas Bhd.

53,000

664,104

694,300

6.1

Shell Refining Company

60,000

622,991

577,200

5.0

113,000

1,287,095

1,271,500

11.1

7,515,569

7,325,333

64.0

Total portfolio investment as at 31 October 2011

5.


Market Value (RM)

Cash and cash equivalents

Short term placements in licensed financial institutions Special Investment Account* Wakalah i Deposit

As at 31.10.2013 (RM)

As at 31.10.2012 (RM)

As at 1.11.2011 (RM)

13,592,531

5,295,189

2,465,409

7,397,057

4,530,609

1,586,880

Waheed i Deposits*

Cash at bank

-

2,422,017

-

20,989,588

12,247,815

4,052,289

568,161

1,200,656

20,869

21,557,749

13,448,471

4,073,158

*Special Investment Account and Waheed i Deposits are placed with a related party, Bank Islam Malaysia Berhad. 53

6.

Unitholders’ Capital As at 2013 No. of (RM) units

As at 1 November 2012 Creation of units Cancellation of units At 31 October

As at 2012 No. of (RM) units

As at 2011 No. of (RM) units

167,506,567

46,480,891

46,129,115

11,501,017

-

-

306,366,763

85,679,154

135,829,306

39,107,495

47,120,364

11,748,098

(28,897,237)

(8,365,402)

(14,451,854)

(4,127,621)

(991,249)

(247,081)

444,976,093

123,794,643

167,506,567

46,480,891

46,129,115

11,501,017

In accordance with the Deed, the maximum number of units that can be issued out for circulation is 1,000,000,000 units (31 October 2012: 1,000,000,000 units, 1 November 2011: 1,000,000,000 units). As at 31 October 2013, the number of units yet to be issued was 555,023,907 units (31 October 2012: 832,493,433 units, 1 November 2011: 953,870,885 units). Based on historic information over the last 12 months, redemption levels are expected to approximate RM8,370,000 (31 October 2012: RM4,130,000, 1 November 2011: RM250,000) and the average monthly level of creation net of redemption are expected to approximate RM6,440,000 (31 October 2012: RM2,910,000, 1 November 2011: RM960,000). However, the actual level of redemptions may differ significantly from the historic experience. 7.

Manager’s Fee The manager‟s fee payable to the Manager of the Fund is based on 1.50% (2012: 1.50%) per annum of the net asset value of the Fund calculated on a daily basis.

8.

Trustee’s Fee The trustee‟s fee is payable to the trustee of the Fund based on 0.08% (2012: 0.08%) per annum subject to a minimum of RM18,000 per annum of the net asset value of the Fund calculated on a daily basis.

54

9.

Tax expense 2013 (RM)

2012 (RM)

Tax expense - Current year Reconciliation of effective tax expense Net income before taxation Income tax using Malaysian tax rate @ 25% Non-deductible expenses Income not subject to tax

19,400

91,900

3,977,579

3,610,577

994,395

902,644

1,957,773

89,359

(2,932,768)

(900,103)

19,400

91,900

10. Distribution

Distribution to unitholders is from the following sources: Gain on sale of shares Gross dividends from share quoted in Malaysia Income from short term investments Hibah from Al-Wadiah account

2013 (RM)

2012 (RM)

6,921,602

2,448,135

3,632,936

1,062,287

525,845

161,962

25

-

11,080,408

3,672,384

(1,494,022)

(397,859)

(19,400)

(91,900)

9,566,986

3,182,625

Less: Expenses Tax expense Net distribution

The Manager has declared a net distribution of 2.15 sen (2012: 1.90 sen) per unit based on units in circulation as at 31 October 2013 amounting to RM9,566,986 (2012: RM3,182,625) in respect of the current financial year. The distribution was approved by the Investment Committee in October 2013. 55

All units are held legally and beneficially by the company.

12. Transactions with Related Parties (continued) Transaction as at 2013 2012 (RM) (RM)

Balance as at 2013 (RM)

2012 (RM)

Related company of the Manager BIMB Securities Sdn. Bhd. - Brokerage fee

109,786

26,457

-

-

The Trustee HSBC(Malaysia) Trustee Berhad - Trustee fee

74,360

19,189

(8,813)

(3,286)

13. Transactions with related and other stockbroking companies 1 November 2012 to 31 October 2013 Maybank Investment Bank Berhad CIMB Investment Bank Berhad RHB Investment Bank Berhad MIDF Investment Bank Berhad BIMB Securities Sdn. Bhd.* AmInvestment Bank Berhad OSK Investment Bank Berhad

Value of trade (RM)

% of total trade

Brokerage Fee (RM)

% of total brokerage fee

62,134,558

23.15

197,969

23.31

53,058,260

19.77

172,176

20.27

53,043,828

19.77

159,080

18.73

37,445,203

13.95

115,945

13.65

33,454,484

12.47

109,786

12.92

26,670,034

9.94

85,752

10.10

2,544,425

0.95

8,674

1.02

268,350,792

100.00

849,382

100.00

57

13. Transactions (continued)

with

1 November 2011 to 31 October 2012 AmInvestment Bank Berhad CIMB Investment Bank Berhad Maybank Investment Bank Berhad RHB Investment Bank Berhad OSK Investment Bank Berhad MIDF Amanah Investment Bank Berhad BIMB Securities Sdn. Bhd.*

related

and

Value of trade (RM)

other

stockbroking

companies

% of total trade

Brokerage Fee (RM)

% of total brokerage fee

10,241,019

16.09

36,084

15.98

9,922,274

15.59

37,094

16.43

9,493,652

14.92

37,892

16.78

9,052,157

14.22

29,234

12.95

8,632,836

13.56

29,716

13.16

8,398,415

13.20

29,301

12.98

7,902,472

12.42

26,457

11.72

63,642,825

100.00

225,778

100.00

*Transactions with the related party have been entered into in the normal course of business and have been transacted at arm‟s length basis. 14. Management Expense Ratio (“MER”) The Management Expense Ratio for the financial year is 1.61% (2012: 1.65%). Management expense ratio is the ratio of total fees and recovered expenses of the Fund expressed as a percentage of the Fund‟s average net asset value. It is a total management expenses expressed as an annual percentage of the Fund‟s average net asset value. 15. Portfolio Turnover Ratio (“PTR”) The Portfolio Turnover Ratio for the financial year is 1.41 times (2012: 1.28 times). It represents the average of total acquisitions and disposals of the investments in the Fund for the financial year over the average net asset value of the Fund calculated on a daily basis.

58

16. Financial Instruments 16.1 Categories of financial instruments The table below provides an analysis of financial instruments categorised as follows: (a) Financing and receivables (F&R); (b) Fair value through profit or loss (FVTPL); (c) Other financial liabilities measured at amortised cost (OL).

Carrying amount (RM) As at 31 October 2013 Financial assets Quoted securities Receivables Cash and cash equivalents

Financial liabilities Payables Distribution payable

As at 31 October 2012 Financial assets Quoted securities Receivables Cash and cash equivalents

Financial liability Payables Distribution payable

F&R/ (OL) (RM)

FVTPL (RM)

105,690,629 1,073,179 21,557,749 128,321,557

1,073,179 21,557,749 22,630,928

105,690,629 105,690,629

(454,769) (9,566,986) (10,021,755)

(454,769) (9,566,986) (10,021,755)

-

34,802,933 4,592,399 13,448,471 52,843,803

4,592,399 13,448,471 18,040,870

34,802,933 34,802,933

(2,935,725) (3,182,625) (6,118,350)

(2,935,725) (3,182,625) (6,118,350)

-

59

16. Financial Instruments (continued) 16.1 Categories of financial instruments (continued)

Carrying amount (RM) As at 1 November 2011 Financial assets Quoted securities Receivables Cash and cash equivalents

F&R/ (OL) (RM)

FVTPL (RM)

7,325,333 71,297 4,073,158 11,469,788

71,297 4,073,158 4,144,455

7,325,333 7,325,333

(26,935)

(26,935)

-

Financial liabilities Payables

16.2 Net gains and losses arising from financial instruments

Net gains on: Fair value through profit or loss: - Designated upon initial recognition Financing and receivables

2013 (RM)

2012 (RM)

4,904,486

3,840,247

567,115

168,189

5,471,601

4,008,436

16.3 Financial risk management The Fund has exposure to the following risks from its use of financial instruments:    

Credit risk Liquidity risk Market risk Investment risk

60

16. Financial Instruments (continued) 16.4 Credit Risk Credit risk is the risk of a financial loss to the Fund if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Fund‟s exposure to credit risk arises principally from its investment securities and receivables. The Manager manages the credit risk by setting counterparty limits and undertaking credit evaluation to minimise the risk. The exposure to credit risk is monitored on an ongoing basis. The Fund‟s maximum credit risk exposure at the reporting date is represented by the respective carrying amounts of the relevant financial assets in the statement of financial position. No financial assets carried at amortised cost were past due or impaired as at date of statement of financial position. 16.5 Liquidity Risk Liquidity risk is the risk that the Fund will not be able to meet its financial obligations as they fall due. The Fund‟s exposure to liquidity risk arises principally from its various payables which are due within one year. The Fund maintains sufficient level of liquid assets, after consultation with the Trustee, to meet anticipated payments and cancellation of units by unit holders. Liquid assets comprise cash and other instruments, which are capable of being converted into cash within 7 days.

61

16. Financial Instruments (continued) 16.6 Market Risk Market risk is the risk that changes in market prices, such as profit rates and other prices will affect the Fund‟s financial position or cash flows. Profit rate risk The profit rate profile of the fund‟s significant profit-bearing financial instruments, based on carrying amounts as at the end of reporting period was: Fixed rate instruments

As at 31.10.2013 (RM)

As at 31.10.2012 (RM)

As at 1.11.2011 (RM)

Short term placements

20,989,588

12,247,815

4,052,289

Fair value sensitivity analysis for fixed rate instruments The Fund accounts for the fixed rate short term investment are not significantly exposed to profit rate risk. Market price risk Equity price risk arises from the Fund‟s investments in equity securities. Risk management objectives, policies and processes for managing the risk The Fund is restricted to invest in securities issued by any issuer of not more than a certain percentage of its net asset value. Under such restriction, the exposure risk to the securities of any issuer is mitigated.

62

16. Financial Instruments (continued) 16.6 Market Risk (continued) Market price risk (continued) Equity price risk sensitivity analysis This analysis assumes that all other variables remain constant and the Fund‟s equity investments are positively correlated to each other. A 5% strengthening in the equity prices at the end of the reporting period would have increased the net asset value and unitholders‟ fund by RM5,284,531 (2012: RM1,740,147, 2011: RM366,267). A 5% weakening in equity prices would have had equal but opposite effect on the net asset value and unitholders‟ fund respectively. 16.7 Investment Risk Investments are bound by regulatory guidelines that govern the maximum securities holdings and maximum liquid assets holdings. Equity investment risks consist primarily of market risk, specific stock risk and liquidity risk. The mechanism employed to control investment risk for equity funds is by placing acceptable stock and sector limits. Risk management objectives, policies and processes for managing the risk The Manager has written policies and guidelines on risk management, which set out the overall investment risks strategies and general risk management philosophies. These processes monitor, measure and control risks associated with the business. Matters relating to investment risks in respect of funds portfolio are discussed during the Investment Committee meetings of the Manager.

63

16. Financial Instruments (continued) 16.8 Fair value of financial instruments The carrying amounts of cash and cash equivalents, short term receivables and payables approximate fair values due to the relatively short term nature of these financial instruments. The fair value of quoted securities, together with the carrying amounts shown in the statement of financial position is disclosed in Note 4. The following summarises the method used in determining the fair value of financial instruments: Quoted equities: Quoted equities in Malaysia are valued at a last done price quoted on the Bursa Malaysia at the date of the statement of financial position, in accordance with the Deed. Unrealised gain or loss is taken to statement of comprehensive income. 16.8.1

Fair value hierarchy The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: 

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



Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

64

16. Financial Instruments (continued) 16.8 Fair value of financial instruments (continued) 16.8.1

Fair value hierarchy (continued) Carrying Amount (RM)

Level 1 (RM)

Level 2 (RM)

As at 31 October 2013 Financial assets at fair value through profit or loss - Quoted securities

105,690,629

through profit or loss 105,690,629

-

As at 31 October 2012 Financial assets at fair value through profit or loss - Quoted securities

34,802,933


-

As at 1 November 2011 Financial assets at fair value through profit or loss - Quoted securities

7,325,333


-

17. Capital Management The Fund‟s capital is represented by the unitholders‟ fund in the statement of financial position. The Manager of the Fund monitors the adequacy of capital on an ongoing basis. There is no external capital requirement imposed on the Fund.

65

18. Explanation of transition to MFRSs As stated in Note 2(a), these are the first financial statements of the Fund prepared in accordance with MFRSs. The accounting policies set out in Note 3 have been applied in preparing the financial statements of the Fund for the year ended 31 October 2013 and the comparative information presented in these financial statements for the year ended 31 October 2012 and in the preparation of the opening MFRS statement of financial position at 1 November 2011 (the Fund‟s date of transition to MFRSs). The transition to MFRSs does not have significant financial impact to the financial statements of the Fund. Hence, no reconciliation of accounting policies between the FRSs and MFRSs is presented.

66