BIMB AL-FALAH - Bank Islam · PDF file(BIMB DANA AL-FALAH; ANNUAL REPORT FY 31 AUGUST 2015) |3...

ANNUAL REPORT FOR THE YEAR ENDED31 AUGUST 2015

LAPORAN TAHUNAN BAGI TAHUN BERAKHIR 31 OGOS 2015

MANAGER:BIMB INVESTMENT MANAGEMENT BERHAD (Company No: 276246-X)

BIMB AL-FALAH

BIMB DANA AL-FALAH

(BIMB DANA AL-FALAH; ANNUAL REPORT FY 31 AUGUST 2015) |2

Table of Content

No. Particulars Page

1.0 Manager‟s Report 3

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

3

1.2 Performance for the Financial Year Ended 31 August 2015 4

1.3 Economic and Market Review 7

1.4 Market Outlook And Strategy 13

1.5 Asset Allocation as at 31 August 2015 14

1.6 Other Performance Data for the Financial Year Ended 31 August 2015 15

1.7 Unit Holdings as at 31 August 2015 16

1.8 Policy on Rebate And Soft Commission 17

2.0 Trustee‟s Report 33

3.0 Shariah Committee‟s Report 34

4.0 Directors‟ Declaration 35

5.0 Independent Auditors‟ Report To The Unitholders of BIMB Dana Al-Falah

36

6.0 Financial Statements (Audited) 38

7.0 Corporate Directory 67


i. Manager’s Report

Dear Unit Holders,

We are pleased to present the Manager‟s report of BIMB Dana Al-Falah for the financial year ended 31 August 2015.

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

Performance Benchmark/ Fund Distribution Policy

Fund Name BIMB Dana Al-Falah Fund Type Growth Fund Category Mixed Assets Fund Investment Objective

The principal investment objective of the Fund is to achieve long term capital appreciation of the units by investing in a diversified portfolio of equities, Sukuk and money market instruments. Accordingly, all investment income (if any) shall be reinvested for long term capital growth rather than distributed annually. Note: Any material change to the investment objective of the Fund would require unit holders’ approval.

Fund Performance Benchmark

70:30 ratio of the “FBM Emas Shariah Index” and 12-month GIA of Bank Islam.

Fund Distribution Policy

Distribution of income1 (if any) is incidental.

1 The distribution of income will automatically be reinvested. Hence, unit holders will receive additional units from the reinvestment of

income distribution.


1.2.2 Total return and average total return for the respective financial year ended 31 August 2015

BIMB Dana Al-Falah Benchmark

Total Return

(%)

Average Total Return

(%)

Total Return

(%)

Average Total Return

(%)

1-Year Period -17.78 -17.78 -8.56 -8.56

3-Year Period -10.24 -3.41 3.70 1.23

5-Year Period 1.01 0.20 22.45 4.49

1.2.3 Total return for the last 5 financial years

Financial Years Total Return

BIMB Dana Al-Falah (%)

Benchmark (%)

31 August 2015 -17.78 -8.56

31 August 2014 8.14 7.79

31 August 2013 0.96 5.21

31 August 2012 9.16 13.84

31 August 2011 3.09 3.72


Figure 3: Movement of the Fund versus the Benchmark

Note Data Source : BIMB Investment Management Berhad Data Verified : Novagni Analytics & Advisory Sdn. Bhd. (formerly known

as Perkasa Normandy Advisers Sdn. Bhd). Benchmark : 70:30 ratio of the “FBM Emas Shariah Index” and 12-month

Bank Islam GIA rate.

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

Bhd. (363145-w)

2. Average Total return is derived by this formula:

Total Return Number of Years under Review

The calculation of average total returns is based on methods obtained from Lipper Asia Ltd. Past performance is not necessarily indicative of future performance and unit prices and investment returns may go down, as well as up.


1.3 Economic and Market Review 1.3.1 Economy

Global The United States („US‟) Gross Domestic Product (GDP) grew at a rate of 3.7% in

the second quarter of 2015 as compared to 0.6% growth in the first quarter of 2015 and 2.1% in the fourth quarter of 2014. The second quarter reflected positive contributions from personal consumption expenditures, exports, state and local government spending and fixed assets investments. American households and businesses, backed by gains in employment, rising home prices and lower fuel costs had contributed to the expansion phase during the quarter.

US headline inflation rate decline to 0.2% in July 2015 from 1.7% in September

2014 due to lower energy prices. US core inflation rate moderated to 1.7% in July 2015 from 1.8% in September 2014.

US unemployment rate fell to 5.3% in July 2015, from 5.9% in September 2014,

supported by rising incomes, consumer spending and economic growth The Euro zone economy grew by 0.4% in the second quarter of 2015 as compared

to 0.5% in the first quarter 2015 and 0.4% in the fourth quarter of 2014.Germany‟s

economic growth improved while France and Italy‟s stagnated as economic

disparities between the 19-nation economy persist. Euro zone‟s annual inflation declined to 0.2% in July 2015 from 0.3% in September

as falling energy prices offset rises in industrial goods. The Euro zone unemployment rate fell to 10.9% in July 2015 from 11.5% in

September 2014 due to significant improvement of unemployment rate in Italy, Spain and Portugal.

The Chinese economy maintained a growth rate of 7.0% for the second quarter of

2015, maintaining comparable economic growth rate to the first quarter of 2015 as China‟s ruling Communist party moves towards a more sustainable economic model

based on domestic consumption instead of trade and investment. China‟s first and

second quarter‟s economic growth in 2015 was the weakest performance since the global economic crisis.

(Source: Bloomberg and RHB Research Institute Sdn Bhd)


Local

The Malaysian economy moderated at 4.9 % in the second quarter of 2015

underpinned by notable impact from the Goods and Services Tax (GST), weak commodity prices and challenging external demand, among others. The 2015 second quarter‟s growth was the weakest since 3

rd quarter 2013 compared to 5.6% in the first quarter of 2015 and 5.7% in the fourth quarter of 2014.

Malaysia‟s headline inflation in July 2015 increased to 3.3% from 2.5% in

September 2014 due to the continued effects of Goods and Services Tax (GST), implemented on 1st April 2015.

Bank Negara‟s international reserve stood at USD 96.7 billion as at 30 July 2015

from US$127.3 billion in September 2014 as a result of capital flight outside domestic economy. At these levels, the foreign exchange reserves are sufficient to finance 7.6 months of retained imports and cover 1.1 times the short term external debt of the nation.

Loan growth was marginal at 9.53% in June 2015 as compared to 9.19% in

September 2014 due to higher lending to real estate, finance, insurance, transport and construction sectors.

(Source: Bloomberg, Bank Negara Malaysia and RHB Research Institute Sdn Bhd)

1.3.2 Market Review Equity FTSE Bursa Malaysia EMAS Shariah Index (“FBM Shariah”) commenced the year under

review at 13,219.74 points before it touched the highest of 13,393.64 points on 3 November 2014. The FBM Shariah declined to the lowest of 10,705.63 points on 25 August 2015 before ending the financial year at 11,443.34 points on 28 August 2015. For the year under review, the FBM Shariah lost 1,776.40 points or 13.44% whereas the FBM KLCI lost 253.37 points or 13.58% respectively. Among the key factors that contributed to the movement of the index are highlighted below:

Weakening of oil prices in September 2014 to below USD100 due to the rise in

US oil stockpile. Continued Oil price collapse to below USD80 per barrel in November 2014. On 27 November 2014, Organisation of Petroleum Exporting Countries‟ (OPEC)

decided against lowering production to support oil price. On 1 December 2014, the FBM Shariah continued to drop by 3.24% dragged

lower by oil and gas, plantation and property sectors as the local market was trying to comprehend the possible implications of lower oil revenue for the country.


Towards the end of January 2015, European Central Bank (ECB) executed a full-scale quantitative easing (QE) to mitigate deflationary concerns and spur growth in the European Union.

Fitch commented on a possible downgrade of Malaysia‟s sovereign rating on 20

January 2015. Oil price recovery of more than 40% from USD 46.59 on 13 January 2015 to

USD 66.78 per barrel on 30 April 2015. In May thru June, continued selling pressure from foreign institutions on

mounting concerns over the outcome of Fitch‟s announcement on Malaysia‟s

sovereign rating together with the possible negative outcome of Greece exiting the Euro zone.

On 30 Jun 2015, Fitch affirmed Malaysia‟s sovereign credit rating at “A-” with

outlook upgraded to “Stable” on the backs of improving fiscal position, financing

flexibility and favorable GDP growth. In early August, the Ringgit depreciated further against the US dollar as foreign

investors flee domestic equity and fixed-income markets as fear of U.S interest rate hike escalated. This was also underpinned by the growing concerns of the domestic political landscape that continue to remain fluid.

In late August, the Shanghai and Shenzhen stock exchange tumble over concerns of China‟s economic hard landing that triggered a regional sell-off throughout Asia. This has subsequently led to a contagion effect in Europe and the U.S. Worries over China‟s weaker consumption have also eroded oil prices

that plunged to a six-and-a-half year low of USD42.51 per barrel, adding concerns to the global oil supply glut.

In August alone, the Ringgit had depreciated 9.7% from USD/MYR 3.82 to USD/MYR 4.19 in light of the unfolding events during the month. To date, speculation over the timing of the US interest rate hike remains uncertain and poses further market volatility risk in the near term as the Ringgit continues to devalue. Collectively, the August sell-off had erased 7% to 10% of global market capitalization.

(Source: Bank Negara Malaysia, Bloomberg and RHB Research Institute Sdn. Bhd.)


Bond Market and Money Market a) Global

For the financial year under review, US Treasury (UST) yields appear to be flattening with short-end yield edging ahead of prospects of September interest rate lift off. Long-end yields have remained benign supported by declining commodity and oil prices as well as bleaker global growth outlook.

Figure 4: US Treasury Yields

Source: US Treasury Department, 31 August 2015

1.07%

1.54%

1.94%

2.21%

2.64%

2.95%

0.94%

1.63%

2.05%

2.35%

2.83%

3.09%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

UST

-3Y

UST

-5Y

UST

-7Y

UST

-10

Y

UST

-20

Y

UST

-30

Y

YIE

LD

TENURE

31/08/2015 31/08/2014

US TREASURY (UST) YIELDS


b) Local On the local front, sukuk yields increased across all board throughout the financial year under review due to concerns over soft Ringgit performance and slumping oil prices among others.

Table 1: Sukuk/ Islamic Bond Yields

Tenure/Date 31 August 2015

(%) 31 August 2014

(%) Change * (bps)

3-Year Bonds

GII 3.60 3.59 1.00

AAA Corporate 4.20 4.02 18.00

5-Year Bonds

GII 4.05 3.82 22.3


7-Year Bonds

GII 4.21 4.03 18.4


10-Year Bonds

GII 4.40 4.16 23.7


Source: Bond Pricing Agency Malaysia (BPAM), 31 August 2015


Figure 5: Overnight Policy Rate (OPR)

Source: Bank Negara Malaysia (BNM), 31 August 2015

Figure 6: Interest Rate Swap (IRS)

Source: Bank Negara Malaysia (BNM), 31 August 2015

31-Aug-15, 3.25%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

30

-Jan

-08

30

-Mar

-08

30

-May

-08

30

-Ju

l-0

83

0-S

ep

-08

30

-No

v-0

83

0-J

an-0

93

0-M

ar-0

93

0-M

ay-0

93

0-J

ul-

09

30

-Se

p-0

93

0-N

ov-

09

30

-Jan

-10

30

-Mar

-10

30

-May

-10

30

-Ju

l-1

03

0-S

ep

-10

30

-No

v-1

03

0-J

an-1

13

0-M

ar-1

13

0-M

ay-1

13

0-J

ul-

11

30

-Se

p-1

13

0-N

ov-

11

30

-Jan

-12

30

-Mar

-12

30

-May

-12

30

-Ju

l-1

23

0-S

ep

-12

30

-No

v-1

23

0-J

an-1

33

0-M

ar-1

33

0-M

ay-1

33

0-J

ul-

13

30

-Se

p-1

33

0-N

ov-

13

30

-Jan

-14

30

-Mar

-14

30

-May

-14

30

-Ju

l-1

43

0-S

ep

-14

30

-No

v-1

43

0-J

an-1

53

0-M

ar-1

53

0-M

ay-1

53

0-J

ul-

15

RA

TE

DATE

OVERNIGHT POLICY RATE (OPR)

3.78%3.85%

3.92%

4.00% 4.00%

4.25%

4.46%

3.67%3.74%

3.83%

3.93%

4.01%

4.18%

4.34%

3.40%

3.60%

3.80%

4.00%

4.20%

4.40%

4.60%

IRS-

1YR

IRS-

2YR

IRS-

3YR

IRS-

4YR

IRS-

5YR

IRS-

7YR

IRS-

10

YR

RA

TE

TENURE

31/08/2015 31/08/2014

INTEREST RATE SWAP (IRS)


1.4 Market Outlook and Strategy

a) Equity

The equity market outlook is expected to experience continual volatily in 2015. Notwithstanding the QE (Quantitative Easing) in Euro zone and Japan, global economic recovery will face headwind from multiple aspects including the strengthening US Dollar, potential US interest rate hike, concerns over China‟s economic slow-down and currency devaluation along with global oil production glut affecting oil prices.

On the domestic front, the Bursa Malaysia should be supported by domestic

liquidity and strong buying support from local funds. The uncertainties over the US interest rate hike may induce volatility within the local bourse and incite capital flight outside Malaysia‟s economic borders, deepening the

Ringgit‟s devaluation. The weakening crude oil price may also pose larger repercussion on the country‟s oil and gas industry as well as its fiscal position

in the near term. Fundamentally, the Malaysian economy is in good stead to grow at 4.0% to

5.5% in 2015 as domestic demand remains the growth driver supported by broad-based capital spending by both the private and public sectors. The Malaysian government had taken necessary steps to strengthen the economy, stabilise the currency, and restore investor confidence, affirming that both the banking system and the capital market are resilient and able to cope with potential economic uncertainty.

Currently, the Fund is adopting a temporary defensive strategy via

maintaining higher cash portion within its portfolio. The equity strategy remains to invest in companies with good earnings visibility, strong balance sheet, and high dividend yield with good valuation prospects given the suitable opportunity arise.

b) Sukuk Market and Money Market The Ringgit Islamic Debt Securities (IDS) market is expected to be volatile.

The continued reduction in accommodative monetary policy by the Federal Reserve in the United States and weak Ringgit will be negative for IDS price. However, the ample liquidity in the domestic market and demand from local institutions will support the IDS market.

Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 3.25% at the Monetary Policy Committee (MPC) meeting 7 July 2015. The MPC statement stated that future changes in OPR will depend on economic data on growth and inflation as well as risks of destabilising financial


imbalances. Moving forward, the OPR is expected to remain unchanged at least until Q12016.

Headline inflation is expected to trend higher due to GST. The lower fuel prices will partially offset other domestic cost factors. While month-on-month headline inflation would be subjected to the volatility in global oil prices, underlying inflation is expected to remain contained amid the stable domestic demand conditions. Inflation is expected to be between 2.5% to 3.5% in the next 12 months.

.

1.5 Asset allocation as at 31 August

BIMB Dana Al-Falah 2015 (%)

2014 (%)

2013 (%)

Investment in Quoted Securities

Construction 3.8 7.3 14.9

Consumer Products 0.9 1.1 6.4

Finance 3.1 2.7 -

Industrial Products 10.1 10.1 -

Infrastructure Project Companies 2.6 5.8 5.2

Plantation 4.3 8.5 2.5

Properties 4.9 6.7 17.5

REITs - - 0.6

Technology - 1.1 -

Trading and Services 15.0 32.8 28.0

Warrant - 1.9 2.1

44.7 78.0 77.2 INVESTMENT IN ISLAMIC DEBT SECURITIES:

15.9 13.3 17.1

SHORT TERM INVESTMENTS: 39.4 8.7 5.7

100.0 100.0 100.0


1.6 Other Performance Data for the Financial Year Ended 31 August

BIMB Dana Al-Falah 2015 2014 2013

Unit Prices (RM)

Highest NAV per unit for the year 0.5639 0.6015 0.6333

Lowest NAV per unit for the year 0.4492 0.5383 0.5417

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

Total NAV (RM) 24,879,924 29,743,041 23,421,454

Units in Circulation (UIC) 54,294,763 53,372,537 43,241,059

NAV per unit (RM)* 0.4582 0.5573 0.5417

Return of Fund (%)(a) [page16]

Capital Growth (%)(b) [page16] -17.78 2.88 -6.15

Income Return (%)(c) [page16] - 5.26 7.11

Return of Fund (%) -17.78 8.14 0.96

Gross Distribution per Unit (Sen) - 2.85 4.12

Net Distribution per Unit (Sen) - 2.85 4.10

NAV per Unit before Distribution (RM) - 0.5858 0.5827

NAV per Unit after Distribution (RM)* - 0.5573 0.5417

Date of Distribution - 29 August 2014

30 August 2013

Management Expense Ratio (MER) (%)(d) [pg 16] 1.74 1.69 1.76

Portfolio Turnover Ratio (PTR) (times)(e) [pg 16] 5.20 9.47 0.96

* The price and net asset value per unit are ex-distribution.


Note:

a) Return of the Fund = NAV per unit (end of year) - 1 NAV per unit (beginning of year)

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

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

d) Management

Expense Ratio = The management expense ratio is the total

management expenses expressed as an annual percentage of the Fund‟s average Net Asset Value.

e) Portfolio Turnover

Ratio

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

1.7 Unit Holdings as at 31 August 2015

Size of Holdings

BIMB Dana Al-Falah

No. of Unit Holders No. of Units Held

No. % Units %

5,000 and below 1,608 50.39 2,510,825.44 4.62

5,001 to 10,000 545 17.08 4,011,180.73 7.39

10,001 to 50,000 871 27.30 19,194,395.22 35.35

50,001 to 500,000 166 5.20 15,059,291.96 27.74

500,001 and above * 1 0.03 13,519,069.89 54.90

3,191 100.00 54,294,763.24 100.00

Unit Held by Manager 0 0.00 0.00 0.00

Grand Total for The Fund 3,191 100.00 54,294,763.24 100.00

* included under this category are nominee accounts


1.8 Policy on Rebate and Soft Commission

Any stock broking rebates received by the Manager will be directed into the account of the Fund. Any soft commissions received from the broker which are in the form of research and advisory services that assist in the decision-making process relating to the Fund‟s investment may be retained by the Manager. The Manager received soft commission from brokers in the form of research and advisory services during the year under review. For and on behalf of

The Manager

BIMB INVESTMENT MANAGEMENT BERHAD

Date: 28 October 2015


1.0 Laporan Pengurus

Para Pemegang Unit yang Dihormati,

Kami dengan sukacitanya membentangkan Laporan Pengurus BIMB Dana Al-Falah bagi tahun kewangan berakhir pada 31 Ogos 2015.

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

Dana/ Polisi Agihan Dana

Nama Dana BIMB Dana Al-Falah

Jenis Dana Pertumbuhan

Kategori Dana Aset Campuran

Objektif Pelaburan Dana

Objektif utama pelaburan Dana adalah untuk mencapai peningkatan modal pada harga unit dalam jangkamasa panjang dengan melabur dalam pelbagai portfolio ekuiti, Sukuk dan instrumen pasaran wang. Sehubungan dengan itu, semua pendapatan pelaburan (jika ada) akan dilaburkan semula untuk pertumbuhan modal jangkamasa panjang berbanding pengagihan setiap tahun. Nota: Sebarang perubahan ketara kepada objektif pelaburan Dana memerlukan kelulusan daripada pemegang unit.

Penanda Aras Dana

Nisbah 70:30 “Indeks FBM Emas Shariah” dan GIA 12 bulan Bank Islam.

Polisi Agihan Dana

Pendapatan1 (jika ada) adalah sampingan.

1 Pengagihan pendapatan akan dilaburkan semula secara automatik. Oleh itu, pemegang unit akan menerima Unit tambahan daripada

pelaburan semula pengagihan pendapatan.


1.2 Pencapaian bagi tahun berakhir 31 Ogos 2015

1.2.1 Kajian Pencapaian bagi BIMB Dana Al-Falah

Bagi tempoh kewangan dalam kajian, BIMB Dana Al-Falah (Al-Falah) mencatatkan pulangan sebanyak -17.78% berbanding pulangan penanda arasnya sebanyak -8.56%. Sejak penubuhannya pada 27 Disember 2001 hingga 31 Ogos 2015, Al-Falah telah mencatatkan pulangan berjumlah 78.69% berbanding apa yang diraih oleh penanda arasnya sebanyak 103.50%. Penanda aras prestasi terpilih Al-Falah ialah nisbah 70:30 nisbah "Indeks Syariah Emas FBM" dan kadar 12-bulan Akaun Pelaburan Am Bank Islam (GIA). Strategi kami adalah secara konsistennya terus menumpukan kepada syarikat-syarikat terkemuka yang berupaya membayar dividen secara berkekalan dan mempunyai prospek pertumbuhan pendapatan yang baik. Bagaimanapun, bagi tahun kewangan berakhir pada 31 Ogos 2015, keadaan pasaran yang buruk menyebabkan Dana Al-Falah tidak dapat memenuhi objektifnya apabila tinjauan pasaran semakin merosot dan munculnya sentimen ekonomi yang negatif. Berikutan terdapat pelbagai faktor negatif yang mempengaruhi keadaan pasaran, iaitu penurunan nilai matawang, kejatuhan harga minyak dan pertumbuhan ekonomi dunia yang merosot, Dana telah melaksanakan peruntukan aset sebagai langkah awal untuk menyesuaikan dengan keadaan pasaran yang rapuh dan mudah terjejas berikutan memuncaknya pembetulan pasaran ekuiti sejagat dengan keadaan turun naik pasaran yang berlanjutan. Pada ketika ini, keutamaan Dana adalah melindungi Nilai Aset Bersih (NAB) atau Net Asset Value (NAV) melalui strategi defensif yang bersifat sementara dengan mengekalkan bahagian pegangan tunai yang lebih tinggi dalam portfolionya. Keutamaan Dana berubah buat sementara waktu daripada menyediakan pendapatan yang konsisten dan peningkatan modal dalam tempoh terdekat kepada pengekalan modal. Pada 31 Ogos 2015, Dana mempunyai pendedahan sebanyak 44.7% dalam ekuiti, 15.9% dalam sekuriti hutang Islam dan 39.4% dalam pelaburan jangka pendek dan pegangan tunai..Dari segi jumlah NAB, saiz Dana pada 31 Ogos 2015 adalah sebanyak RM24.88 juta, berbanding RM29.74 juta pada 31 Ogos 2014. Bagi tahun kewangan dalam kajian, Al-Falah tidak mengisytiharkan sebarang agihan pendapatan kerana Dana telah beralih menjadi defensif dalam menjana tunai untuk mengurangkan kesan daripada keadaan pasaran yang menjejaskan. NAB seunit Dana telah merosot kepada RM0.4582 pada 31 Ogos 2015 daripada RM0.5573 (selepas pengagihan) pada 31 Ogos 2014. Bagi tahun kewangan berakhir pada 31 Ogos 2015, terdapat perubahan yang ketara terhadap peruntukan tunai Dana bertujuan memelihara nilai pemegang unit kerana keadaan pasaran yang buruk berlaku secara berterusan dalam tempoh terdekat. Melangkah ke hadapan, Pengurus akan terus melabur dalam syarikat yang dilihat menawarkan pendapatan yang baik, lembaran imbangan yang kukuh dan hasil dividen yang tinggi dengan prospek penilaian yang baik sekira timbulnya peluang yang bersesuaian.


1.2.2 Jumlah pulangan dan purata jumlah pulangan bagi setiap tahun berakhir 31 Ogos

2015

BIMB Dana Al-Falah Penanda Aras Jumlah

Pulangan

(%)

Purata Jumlah

Pulangan (%)

Jumlah Pulangan

(%)

Purata Jumlah

Pulangan (%)

Jangkamasa 1-Tahun

-17.78 -17.78 -8.56 -8.56

Jangkamasa 3-Tahun

-10.24 -3.41 3.70 1.23

Jangkamasa 5-Tahun

1.01 0.20 22.45 4.49

1.2.3 Jumlah pulangan tahunan bagi 5 tahun kewangan yang lalu

Tahun Kewangan Jumlah Pulangan

BIMB Dana Al- Falah (%)

Penanda Aras (%)

31 Ogos 2015 -17.78 -8.56

31 Ogos 2014 8.14 7.79

31 Ogos 2013 0.96 5.21

31 Ogos 2012 9.16 13.84

31 Ogos 2011 3.09 3.72


Rajah 3: Pergerakan Dana Berbanding Penanda Aras

Nota: Sumber Data : BIMB Investment Management Berhad Data disahkan oleh : Novagni Analytics & Advisory Sdn. Bhd. (dahulunya

dikenali sebagai Perkasa Normandy Managers Sdn.Bhd) Penanda Aras : Nisbah 70:30 “FBM Emas Shariah Index” dan 12 bulan

kadar Akaun Pelaburan Am Bank Islam. Nota: 1. Jumlah Pulangan telah disahkan oleh Novagni Analytics & Advisory 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.


1.3 Ekonomi dan Kajian Pasaran 1.3.1 Ekonomi

Global

Keluaran Dalam Negara Kasar (GDP) Amerika Syarikat („AS‟) berkembang pada

kadar 3.7% pada suku kedua tahun 2015 berbanding dengan pertumbuhan sebanyak 0.6% pada suku pertama tahun yang sama dan 2.1% pada suku keempat tahun 2014. Pencapaian suku kedua mencerminkan sumbangan positif daripada perbelanjaan penggunaan individu, eksport, perbelanjaan kerajaan negeri dan tempatan, dan pelaburan aset tetap. Pencapaian isi rumah dan perniagaan AS yang disokong oleh peningkatan dalam guna tenaga, kenaikan harga rumah dan kos bahan api yang lebih rendah, telah menyumbang kepada kadar pertumbuhan bagi suku tersebut.

Kadar inflasi utama (headline) AS menyusut kepada 0.2% pada bulan Julai 2015

berbanding dengan 1.7% pada bulan September 2014 disebabkan oleh harga bahan api yang lebih rendah. Kadar inflasi teras AS mencatat paras sederhana iaitu 1.7% pada bulan Julai 2015 berbanding 1.8% pada bulan September 2014

Kadar pengangguran AS jatuh kepada 5.3% pada bulan Julai 2015, daripada

5.9% pada bulan September 2014, disokong oleh peningkatan pendapatan, perbelanjaan pengguna dan pertumbuhan ekonomi.

Pertumbuhan ekonomi zon Euro adalah sebanyak 0.4% pada suku kedua 2015

berbanding 0.5% pada suku pertama 2015 dan 0.4% pada suku keempat 2014. Keadaan ekonomi Jerman bertambah baik manakala Perancis dan Itali pula terbantut apabila ketidaksamaan pertumbuhan ekonomi antara 19-buah negara terus berlaku.

Inflasi tahunan zon Euro menurun kepada 0.2% pada bulan Julai 2015 daripada

0.3% pada bulan September apabila kejatuhan harga bahan api mengimbangi kenaikan harga barangan industri .

Kadar pengangguran zon Euro jatuh kepada 10.9% pada bulan Julai 2015

daripada 11.5% pada bulan September 2014 disebabkan oleh pengurangan ketara dalam kadar pengangguran di Itali, Sepanyol dan Portugal.

Kadar pertumbuhan ekonomi China kekal sebanyak 7.0% pada suku kedua 2015,

mengekalkan perbandingan kadar pertumbuhan ekonomi pada suku pertama 2015 apabila parti pemerintah Komunis China bergerak ke arah mencapai model ekonomi lebih mampan berdasarkan kepada penggunaan domestik dan bukannya perdagangan dan pelaburan. Pertumbuhan ekonomi China dalam suku pertama dan kedua pada tahun 2015 memperlihatkan prestasinya yang paling lemah sejak krisis ekonomi global.

(Sumber: Bloomberg dan RHB Research Institute Sdn Bhd)


Dalam Negara

Ekonomi Malaysia berkembang pada paras sederhana iaitu 4.9% pada suku

kedua 2015 antaranya disebabkan oleh impak agak ketara daripada pelaksanaan Cukai Barangan dan Perkhidmatan (GST), kejatuhan harga komoditi dan permintaan luar yang mencabar. Pertumbuhan suku kedua 2015 merupakan yang terendah sejak suku ke-3 tahun 2013 berbanding dengan 5.6% pada suku pertama 2015 dan 5.7% pada suku keempat 2014 .

Kadar inflasi utama (headline) Malaysia pada bulan Julai 2015 meningkat

kepada 3.3% daripada 2.5% pada bulan September 2014 kerana kesan yang berterusan daripada pelaksanaan Cukai Barangan dan Perkhidmatan (GST) pada 1 April 2015.

Rizab antarabangsa Bank Negara Malaysia berjumlah AS$96.7 bilion setakat 30

Julai 2015 berbanding AS$127.3 bilion pada bulan September 2014 berikutan pengaliran keluar modal daripada ekonomi domestik. Pada tahap ini, rizab pertukaran asing adalah mencukupi untuk membiayai 7.6 bulan import tertangguh dan menampung 1.1 kali hutang luar jangka pendek negara.

Pertumbuhan pinjaman berkembang pada kadar yang kecil iaitu 9.53% pada

bulan Jun 2015 berbanding 9.19% pada bulan September 2014 disebabkan oleh pemberian pinjaman yang lebih tinggi kepada sektor hartanah, kewangan, insurans, pengangkutan dan pembinaan.

(Sumber: Bloomberg, Bank Negara Malaysia dan RHB Research Institute Sdn Bhd)

1.3.2 Kajian Pasaran Ekuiti

Indeks Syariah EMAS FTSE Bursa Malaysia ("FBM Syariah") memasuki tahun kewangan pada paras 13,219.74 mata sebelum mencecah paras tertinggi 13,393.64 mata pada 3 November 2014. FBM Syariah jatuh ke paras terendah 10,705.63 mata pada 25 Ogos 2015 sebelum mengakhiri tahun kewangan untuk mencatat 11,443.34 mata pada 28 Ogos 2015. Bagi tahun dalam kajian, FBM Syariah jatuh 1,776.40 mata atau 13.44% manakala FBM KLCI susut 253.37 mata atau 13.58%. Antara faktor utama yang menyumbang kepada pergerakan indeks dinyatakan di bawah

Harga minyak mentah semakin lemah pada bulan September 2014 apabila berada di bawah paras AS$100 setong berpunca daripada peningkatan simpanan minyak stok pengimbal AS.

Harga minyak mentah terus jatuh di bawah paras AS$80 setong pada bulan

November 2014 .


Pada 27 November 2014, Pertubuhan Negara-negara Pengeksport Petroleum (OPEC) menentang pengurangan pengeluaran bagi tujuan menyokong harga minyak.

Pada 1 Disember 2014, FBM Syariah jatuh lagi sebanyak 3.24% disebabkan oleh

prestasi lemah yang ditunjukkan oleh sektor minyak dan gas, perladangan, hartanah apabila pasaran tempatan cuba untuk memahami implikasi yang mungkin timbul daripada hasil pendapatan minyak mentah negara yang lebih rendah.

Menjelang akhir bulan Januari 2015, Bank Pusat Eropah ( ECB ) melaksanakan

program kelonggaran kuantitatif (QE) secara besar-besaran untuk mengurangkan kebimbangan terhadap deflasi dan merangsang pertumbuhan di Kesatuan Eropah.

Fitch memberikan ulasannya tentang kemungkinan penurunan penarafan

kedaulatan Malaysia pada 20 Januari 2015.

Harga minyak mentah kembali pulih apabila meningkat lebih 40% daripada AS$46.59 pada 13 Januari 2015 kepada AS$66.78 setong pada 30 April 2015.

Pada bulan Mei hingga Jun, tekanan jualan terus diterima daripada institusi asing

dengan meningkatnya kebimbangan tentang kesan pengumuman Fitch terhadap penarafan kedaulatan Malaysia dan juga kemungkinan Greece keluar dari zon Euro.

Pada 30 Jun 2015, Fitch mengesahkan penarafan kredit kedaulatan Malaysia

pada "A-" dengan tinjauan dinaikkan pada tahap "stabil" berikutan kedudukan fiskal yang semakin baik, pembiayaan yang fleksibel dan pertumbuhan KDNK yang menggalakkan.

Pada awal bulan Ogos, nilai Ringgit jatuh lagi berbanding dolar AS kerana

pelabur-pelabur asing keluar daripada pasaran ekuiti domestik dan pasaran pendapatan tetap kerana takut kenaikan kadar faedah AS yang lebih tinggi. Keadaan ini juga disebabkan oleh kebimbangan yang semakin meningkat terhadap landskap politik negara yang tidak menentu.

Pada akhir bulan Ogos, Bursa Saham Shanghai dan Shenzen jatuh teruk

berikutan terdapat kebimbangan berlakunya kejatuhan secara mendadak ekonomi China, sehingga membawa kepada penjualan secara besar-besaran di peringkat rantau Asia. Keadaan itu mengakibatkan berlakunya kesan penularan ke Eropah dan Amerika Syarikat. Kekhuatiran terhadap penggunaan yang lemah di China juga menjejaskan harga minyak mentah yang menjunam kepada paras rendah dalam tempoh enam setengah tahun iaitu $42.51 setong, meningkatkan lagi kebimbangan kepada berlakunya lebihan bekalan minyak mentah dunia.


Pada bulan Ogos sahaja, Ringgit telah mengalami penyusutan sebanyak 9.7% daripada AS$/RM3.82 kepada AS$/RM4.19 disebabkan oleh peristiwa-peristiwa yang berlaku pada bulan itu. Setakat ini, bilakah berlakunya kenaikan kadar faedah AS masih tidak dapat dipastikan, sekali gus terus mengakibatkan wujud risiko untuk pasaran menjadi tidak menentu atau meruap dalam tempoh terdekat apabila nilai Ringgit terus dinilai semula. Secara kolektifnya, jualan besar-besaran yang berlaku pada bulan Ogos telah menghapuskan 7% hingga 10% modal pasaran global.

(Sumber: Bank Negara Malaysia, Bloomberg dan RHB Research Institute Sdn. Bhd.) Pasaran Bon dan Pasaran Wang a) Global

Bagi tahun kewangan dalam kajian, hasil Perbendaharaan AS (UST) kelihatan mendatar dengan hasil jangka pendek mendahului prospek penarikan balik kadar faedah pada bulan September. Hasil jangka panjang kekal dalam keadaan menggalakkan disokong oleh kejatuhan harga komoditi dan minyak mentah serta tinjauan pertumbuhan dunia yang suram.

Rajah 4: Kadar Pulangan Perbendaharaan AS

Sumber : Jabatan Perbendaharaan AS, 31 Ogos 2015

1.07%

1.54%

1.94%

2.21%

2.64%

2.95%

0.94%

1.63%

2.05%

2.35%

2.83%

3.09%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

UST

-3Y

UST

-5Y

UST

-7Y

UST

-10

Y

UST

-20

Y

UST

-30

Y

YIE

LD

TENURE

31/08/2015 31/08/2014

US TREASURY (UST) YIELDS


b) Dalam Negara

Di dalam negara, hasil sukuk meningkat secara menyeluruh pada sepanjang tahun kewangan disebabkan antaranya oleh kebimbangan terhadap prestasi nilai mata wang Ringgit yang lemah dan harga minyak mentah yang tidak menjejaskan.

Jadual 1: Kadar Pulangan Sukuk/ Bon Islam

Tempoh/ Tarikh 31 Ogos 2015

(%) 31 Ogos 2014

(%) Perubahan

* (bps)

Bon 3 Tahun

GII 3.60 3.59 1.00

Korporat AAA 4.20 4.02 18.00

Bon 5 Tahun

GII 4.05 3.82 22.3

Korporat AAA 4.44 4.22 22.0

Bon 7 Tahun

GII 4.21 4.03 18.4


Bon 10 Tahun

GII 4.40 4.16 23.7


Sumber: Agensi Penetapan Harga Bon Malaysia (BPAM), 31 Ogos 2015


Rajah 5: Kadar Polisi Semalaman (OPR)

Sumber: Bank Negara Malaysia (BNM), 31 Ogos 2015

Rajah 6: Pertukaran Kadar Faedah (IRS)

Sumber: Bank Negara Malaysia (BNM), 31 Ogos 2015

31-Aug-15, 3.25%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

30

-Jan

-08

30

-Mar

-08

30

-May

-08

30

-Ju

l-0

83

0-S

ep

-08

30

-No

v-0

83

0-J

an-0

93

0-M

ar-0

93

0-M

ay-0

93

0-J

ul-

09

30

-Se

p-0

93

0-N

ov-

09

30

-Jan

-10

30

-Mar

-10

30

-May

-10

30

-Ju

l-1

03

0-S

ep

-10

30

-No

v-1

03

0-J

an-1

13

0-M

ar-1

13

0-M

ay-1

13

0-J

ul-

11

30

-Se

p-1

13

0-N

ov-

11

30

-Jan

-12

30

-Mar

-12

30

-May

-12

30

-Ju

l-1

23

0-S

ep

-12

30

-No

v-1

23

0-J

an-1

33

0-M

ar-1

33

0-M

ay-1

33

0-J

ul-

13

30

-Se

p-1

33

0-N

ov-

13

30

-Jan

-14

30

-Mar

-14

30

-May

-14

30

-Ju

l-1

43

0-S

ep

-14

30

-No

v-1

43

0-J

an-1

53

0-M

ar-1

53

0-M

ay-1

53

0-J

ul-

15

RA

TE

DATE

OVERNIGHT POLICY RATE (OPR)

3.78%3.85%

3.92%

4.00% 4.00%

4.25%

4.46%

3.67%3.74%

3.83%

3.93%

4.01%

4.18%

4.34%

3.40%

3.60%

3.80%

4.00%

4.20%

4.40%

4.60%

IRS-

1YR

IRS-

2YR

IRS-

3YR

IRS-

4YR

IRS-

5YR

IRS-

7YR

IRS-

10

YR

RA

TE

TENURE

31/08/2015 31/08/2014

INTEREST RATE SWAP (IRS)


1.4 Tinjauan Pasaran dan Strategi

a) Ekuiti Tinjauan pasaran ekuiti menjangkakan pasaran terus mengalami keadaan yang

tidak menentu pada tahun 2015. Meskipun program Kelonggaran Kuantitatif (QE) dilaksanakan di zon Euro dan Jepun, pemulihan ekonomi sejagat akan menghadapi halangan dari pelbagai aspek termasuk pengukuhan nilai dolar AS, potensi kenaikan kadar faedah di AS, kebimbangan terhadap pertumbuhan perlahan ekonomi China dan penurunan nilai mata wang serta lebihan pengeluaran minyak mentah dunia yang menjejaskan harga komoditi itu.

Di dalam negara, Bursa Malaysia dilihat terus mendapat sokongan mudah tunai dalam negara dan juga sokongan belian yang tinggi daripada dana-dana tempatan. Ketidaktentuan tentang kenaikan kadar faedah AS mungkin membawa kepada keadaan yang tidak menentu dalam bursa tempatan dan mencetuskan modal keluar dari Malaysia dan memburukkan lagi kejatuhan nilai Ringgit. Harga minyak mentah yang semakin lemah mungkin juga memberikan kesan lebih besar kepada industri minyak dan gas negara, dan juga kedudukan fiskal dalam jangka masa terdekat.

Pada asasnya, ekonomi Malaysia berada di landasan yang betul untuk berkembang sebanyak 4.0% hingga 5.5% pada tahun 2015 apabila permintaan dalam negara kekal menjadi pemacu utama pertumbuhan disokong oleh perbelanjaan modal secara meluas oleh sektor swasta dan awam. Kerajaan Malaysia telah mengambil langkah-langkah perlu untuk mengukuhkan ekonomi, menstabilkan mata wang dan mengembalikan keyakinan pelabur, mengesahkan bahawa kedua-dua sistem perbankan dan pasaran modal adalah berdaya tahan dan berupaya untuk menghadapi ketidaktentuan ekonomi.

Pada masa ini, Dana ini menerima pakai strategi defensif buat sementara dengan mengekalkan sebahagian besar tunai dalam portfolionya. Strategi ekuiti kekal dengan melabur dalam syarikat yang dilihat menawarkan pendapatan yang baik, lembaran imbangan yang kukuh dan hasil dividen yang tinggi dengan prospek penilaian yang baik sekiranya timbul peluang-peluang yang bersesuaian.

b) Pasaran Sukuk dan Pasaran Wang

Pasaran Sekuriti Hutang Islam menggunakan mata wang Ringgit (IDS) dijangka berada dalam keadaan tidak menentu. Pengurangan berterusan dalam dasar kewangan yang bersesuaian dilakukan oleh Rizab Persekutuan AS dan kelemahan nilai Ringgit menjadi sesuatu yang negatif kepada harga IDS. Bagaimanapun, mudah tunai yang lebih daripada mencukupi dalam pasaran domestik dan permintaan daripada institusi-institusi tempatan akan menyokong pasaran IDS itu.

Bank Negara Malaysia memutuskan untuk mengekalkan Kadar Dasar Semalaman (OPR) pada paras 3.25% ketika mesyuarat Jawatankuasa Dasar Monetari (MPC) yang diadakan pada 7 Julai 2015. Kenyataan MPC menyatakan perubahan OPR pada masa depan akan bergantung kepada data ekonomi tentang pertumbuhan, inflasi dan juga risiko ketidakseimbangan imbangan kewangan. Dalam melangkah ke hadapan, OPR dijangka terus dikekalkan sekurang-kurangnya sehingga suku pertama 2016 .


Inflasi utama (headline) dijangka meningkat disebabkan oleh GST. Harga minyak atau bahan api yang lebih rendah sebahagiannya akan diimbangi oleh faktor-faktor kos tempatan yang lain. Walaupun inflasi utama bagi tempoh bulan-ke-bulan akan tertakluk kepada turun naik harga minyak global inflasi asas dijangka kekal terkawal di tengah-tengah keadaan permintaan dalam negeri yang stabil. Kadar inflasi dijangka antara 2.5% kepada 3.5% dalam tempoh 12 bulan akan datang.

1.5 Peruntukan Aset Pada 31 Ogos

BIMB Dana Al-Falah 2015 (%)

2014 (%)

2013 (%)

Pelaburan Sekuriti Tersiarharga:

Pembinaan 3.8 7.3 14.9

Barangan pengguna 0.9 1.1 6.4

Kewangan 3.1 2.7 -

Barangan Industri 10.1 10.1 -

Syarikat Projek Infrastruktur 2.6 5.8 5.2

Perladangan 4.3 8.5 2.5

Hartanah 4.9 6.7 17.5

REITs - - 0.6

Teknologi - 1.1 -

Perdagangan dan Perkhidmatan 15.0 32.8 28.0

Waran - 1.9 2.1

44.7 78.0 77.2 PELABURAN DALAM SEKURITI HUTANG SECARA ISLAM:

15.9 13.3 17.1

PELABURAN JANGKA PENDEK: 39.4 8.7 5.7

100.0 100.0 100.0


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

pada awal tahun} x 100

d) Nisbah Perbelanjaan Pengurusan

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

e) Nisbah Pusing Ganti

Portfolio = Ia dikira dengan mengambil purata jumlah

perolehan dan pelupusan pelaburan dalam Dana bagi tempoh tahunan dibahagi dengan purata Nilai Aset Bersih Dana yang dikira pada asas harian

1.7 Pecahan Pegangan Unit pada 31 Ogos 2015

Saiz Dipegang

BIMB Dana Al-Falah

Bilangan Pemegang Unit Bilangan Unit Pegangan

Bilangan % Bilangan %

5,000 dan ke bawah 1,608 50.39 2,510,825.44 4.62

5,001 hingga 10,000 545 17.08 4,011,180.73 7.39

10,001 hingga 50,000 871 27.30 19,194,395.22 35.35

50,001 hingga 500,000 166 5.20 15,059,291.96 27.74

500,001 dan ke atas * 1 0.03 13,519,069.89 24.90

3,191 100.00 54,294,763.24 100.00

Unit yang dipegang oleh Pengurus 0 0.00 0.00 0.00

Jumlah Keseluruhan Dana 3,191 100.00 54,294,763.24 100.00

*Akaun penama juga termasuk di bawah kategori ini


1.8 Polisi Rebat dan Komisyen Bukan Tunai

Sebarang rebat broker saham yang diterima oleh Pengurus akan dimasukkan secara terus ke dalam akaun Dana. Sebarang komisen ringan (bukan tunai) yang diterima daripada broker dalam bentuk perkhidmatan penyelidikan dan perundingan bertujuan membantu proses membuat keputusan berkaitan dengan pelaburan Dana boleh disimpan oleh Pengurus. Pengurus menerima komisen bukan tunai daripada broker dalam bentuk perkhidmatan penyelidikan dan khidmat nasihat bagi tahun dalam kajian. Bagi dan bagi pihak Pengurus BIMB INVESTMENT MANAGEMENT BERHAD Tarikh: 28 Oktober 2015 Nota: Laporan ini telah diterjemahkan daripada laporan asal (dalam Bahasa Inggeris). Jika terdapat perbezaan, sila rujuk kepada laporan Bahasa Inggeris


3.0 Shariah Committee’s Report

ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2015

يب ٱب ٱلر س م ـ ب ٱلر ب يب ب س To the Unit Holders of BIMB Dana Al-Falah

We have acted as the Shariah Committee of BIMB Dana Al-Falah. Our responsibilities are to ensure that the procedures and processes employed by BIMB Investment Management Berhad and that the provisions of the Deed dated 6 December 2001 are in accordance with Shariah principles. In our opinion, BIMB Investment Management Berhad has managed BIMB Dana Al-Falah in accordance with Shariah principles and complied with applicable guidelines, rulings or decisions issued by the Securities Commission pertaining to Shariah matters for the year ended 31 August 2015. In addition, we also confirm that the investment portfolio of BIMB Dana Al-Falah 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.

أعٱي واهللا For and on behalf of the Shariah Committee ……………………………………………….. USTAZ DR. AHMAD SHAHBARI@SOBRI SALAMON (Chairman) ……………………………………………….. USTAZ DR. YUSOF RAMLI (Committee Member) ……………………………………………….. USTAZAH DR. ASMAK AB. RAHMAN (Committee Member) Date: 28 October 2015


4.0 Directors’ Declaration

ANNUAL REPORT FOR THE YEAR ENDED 31 August 2015

To the Unit Holders of

BIMB Dana Al-Falah

We, Mustapha Bin Hamat and Najmuddin Bin Mohd Lutfi, being two of the directors of the

Manager, BIMB Investment Management Berhad, for BIMB Dana Al-Falah, 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 August 2015 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 of the Board of Directors,

…………………………………

MUSTAPHA BIN HAMAT

(Non Executive Independent Director)

…………………………………

NAJMUDDIN BIN MOHD LUTFI

(Chief Executive Officer)

Date: 28 October 2015


5.0 Independent Auditor’s Report

Independent Auditors’ Report to the Unitholders of BIMB Dana Al-Falah

(Established in Malaysia)

Report on the Financial Statements We have audited the financial statements of BIMB Dana Al-Falah (“the Fund”), which comprise

the statement of financial position as at 31 August 2015, 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 38 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 and International Financial Reporting Standards. The Manager is also responsible 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 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 August 2015 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 This report is made solely to the unitholders of the Fund as a body in accordance with Securities Commission‟s Guidelines on Unit Trust Funds in Malaysia and for no other purpose. We do not

assume responsibility to any other person for the content of this report. KPMG Desa Megat & Co. Ow Peng Li Firm Number: AF 0759 Approval Number: 2666/09/15(J) Chartered Accountants Chartered Accountant Petaling Jaya, Selangor Date: 28 October 2015


6.0 Financial Statements (Audited) BIMB Dana Al-Falah 6.1 Statement of Financial Position as at 31 August 2015

Note 2015 2014

RM % RM %

Investments Quoted securities 4 11,121,275 44.7 23,188,021 78.0 Islamic debt securities 5 3,967,940 15.9 3,974,040 13.3

15,089,215 60.67 27,162,061 91.3 Other assets Amount due from stockbroker - - 96,133 0.3 Amount due from Manager 200 - 146,018 0.5 Other receivables 136,291 0.5 106,032 0.4 Current tax assets 4,059 - 4,059 - Cash and cash equivalent 6 10,388,287 41.87 3,952,132 13.3

Total assets 28,618,052 102.9 31,466,435 105.8 Liabilities Amount due to stockbroker - - 126,985 0.4 Amount due to Manager 676,833 2.7 1,430 - Other payables 61,295 0.2 73,862 0.3

Total liabilities 738,128 2.9 202,277 0.7

24,879,924 100.0 31,264,158 105.1 Unitholders’ fund Unitholders‟ capital 7 30,605,277 123.0 29,809,227 100.2 Distribution equalisation 117,747 0.5 117,747 0.4 Accumulated losses (5,843,100) 23.5 (183,933) (0.6)

24,879,924 100.0 29,743,041 100.0 Distribution payable - - 1,521,117 5.1

24,879,924 100.0 31,264,158 105.1 Number of Units in Circulation 7 54,294,763 53,372,537

Net Asset Value Attributable to unitholders 24,879,924 29,743,041

Net Asset Value per Unit (sen) 45.8 sen 55.7 sen

The notes on pages 42 to 66 are an integral part of these financial statements.


BIMB Dana Al-Falah 6.2 Statement of Profit or Loss and Other Comprehensive Income for the Year Ended

31 August 2015

Note 2015 2014 RM RM Income

(Loss) /Gain on sale of shares (3,545,312) 1,345,746 Dividends from shares quoted in Malaysia 684,237 748,652 Income from Islamic debt securities 181,501 174,366 Income from short term investments 84,718 105,767 Gain on disposal of Islamic debt securities - 14,600 Hibah from Al-Wadiah account 811 1,391 Net (loss)/gain from financial instruments at fair value through profit or loss

(2,522,351)

482,163

(5,116,396) 2,872,685 Less : Amortisation of premium (5,712) (5,939)

Gross (loss)/income (5,122,108) 2,866,746 Expenses Manager‟s fee 8 461,581 488,096 Trustee‟s fee 9 24,618 26,032 Audit fee 11,000 10,000 Tax agent fee 2,000 2,000 Administrative expenses 37,860 26,270

537,059 552,398 Net (loss)/income before taxation (5,659,167) 2,314,348 Tax income 10 - 2,195

Net (loss)/income after taxation (5,659,167) 2,316,543 Other comprehensive income for the year - - Total comprehensive (loss)/income for the year (5,659,167) 2,316,543 Total comprehensive (loss)/income for the year consist of: Realised (loss)/gain (3,136,816) 1,834,380 Unrealised amount (2,522,351) 482,163

(5,659,167) 2,316,543

The notes on pages 42 to 66 are an integral part of these financial statements.


BIMB Dana Al-Falah

6.5 Notes to the Financial Statements

1. Information on the Fund BIMB Dana Al-Falah (hereinafter referred to as “the Fund”) was constituted pursuant to

the execution of a Deed dated 6 December 2001 between the Manager - BIMB Investment Management Berhad, the Trustee - ABB Trustee Berhad and the registered holders of the Fund. The address 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 Shariah compliant

Investments as defined in the Deed, which include stocks and shares of companies quoted on Bursa Malaysia, short term deposits and Islamic debt securities.

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

Malaysia, is a subsidiary of Bank Islam Malaysia Berhad.

The financial statements were approved by the Board of Directors of the Manager on 28 October 2015

2. Basis of Preparation

(a) Statement of Compliance

The financial statements of the Fund have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRS”) and International Financial Reporting

Standards. The following are accounting standards, amendments and interpretations that have been issued by the Malaysian Accounting Standards Board (“MASB”) but have not been

adopted by the Fund:


2. Basis of Preparation (continued)

(a) Statement of compliance (continued)

MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2016 Amendments to MFRS 5, Non-current Assets Held for Sale and Discontinued

Operations (Annual Improvements 2012-2014 Cycle) Amendments to MFRS 7, Financial Instruments: Disclosures (Annual

Improvements 2012-2014 Cycle) Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128,

Investments in Associates and Joint Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

Amendments to MFRS 10, Consolidated Financial Statements, MFRS 12, Disclosure of Interests in Other Entities and MFRS 128, Investments in Associates and Joint Ventures – Investment Entities: Applying the Consolidation Exception

Amendments to MFRS 11, Joint Arrangements – Accounting for Acquisitions of Interests in Joint Operations

MFRS 14, Regulatory Deferral Accounts Amendments to MFRS 101, Presentation of Financial Statements – Disclosure

Initiative Amendments to MFRS 116, Property, Plant and Equipment and MFRS 138,

Intangible Assets – Clarification of Acceptable Methods of Depreciation and Amortisation

Amendments to MFRS 116, Property, Plant and Equipment and MFRS 141, Agriculture – Agriculture: Bearer Plants

Amendments to MFRS 119, Employee Benefits (Annual Improvements 2012-2014 Cycle)

Amendments to MFRS 127, Separate Financial Statements – Equity Method in Separate Financial Statements

Amendments to MFRS 134, Interim Financial Reporting (Annual Improvements 2012-2014 Cycle)

MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2017 MFRS 15, Revenue from Contracts with Customers MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2018

MFRS 9, Financial Instruments (2014)


2. Basis of Preparation (continued)

(a) Statement of compliance (continued)

The Fund plans to apply the abovementioned accounting standards, amendments and interpretations:

from the annual period beginning on 1 September 2016 for those accounting standards, amendments or interpretations that are effective for annual periods beginning on or after 1 January 2016 except for MFRS 5, MFRS 10, MFRS 11, MFRS 14, MFRS 116, MFRS 119, MFRS 127 and MFRS 134 which are not applicable to the Fund.

from the annual period beginning on 1 September 2017 for those accounting standards, amendments or interpretations that are effective for annual periods beginning on or after 1 January 2017.

from the annual period beginning on 1 September 2018 for those accounting standards, amendments or interpretations that are effective for annual periods beginning on or after 1 January 2018.

The Fund is currently assessing the financial impact of adopting the abovementioned standards, amendments and interpretations.

(b) Basis of Measurement

The financial statements are prepared on the historical cost basis except as disclosed in note 3(a).

(c) Functional and Presentation Currency

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

Fund‟s functional currency.

(d) Use of Estimates and Judgments 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, 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.

(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 and Islamic debt 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, cash at bank and short term investments. 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(d).


3. Significant Accounting Policies (continued)

(a) Financial Instruments (continued)

Financial liabilities All financial liabilities are subsequently measured at amortised cost.

Financial liabilities measured at amortised cost comprises amount due to stockbroker, amount due to Manager and other payables.

(iii) Derecognition

A financial asset or part of it is derecognised when, and only when the contractual rights to the cash flows from the financial asset expire or the financial asset is transferred to another party without retaining control or substantially all risks and rewards of the asset. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain or loss that had been recognised in equity is recognised in profit or loss.

A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

(b) Income Recognition

(i) Dividend Income Dividend from quoted investments is recognised when right to receive payment is

established. (ii) Income from short term investments and Islamic debt securities

Income from short term investments and Islamic debt securities 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.



(c) 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. Cash and cash equivalents are categorised and measured as financing and receivables in accordance with policy Note 3(a)(ii)(b).

(d) Impairment

Financial assets

All financial assets (except for financial assets categorised as fair value through profit or loss) are assessed at each reporting date whether there is any objective evidence of impairment as a result of one or more events having an impact on the estimated future cash flows of the asset. Losses expected as a result of future events, no matter how likely, are not recognised.

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

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

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

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

(e) Taxation

Tax expense comprises current and deferred tax. Tax expense is recognised in the statement of profit or loss and other comprehensive income 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 statement of financial position date, and any adjustment to tax payable in respect of previous years.

(f) Unitholders’ Capital

The Fund issues cancellable units, which are cancelled at the 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.


3. Significant Accounting Policies (continued) (f) Unitholders’ Capital (continued)

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 assets value per unit for creations and cancellations. The units in the Fund are puttable instruments, classified as equity, which entitle the unitholders to a pro-rata share of the net asset of the Fund. The units are subordinated and have identical features. There is no contractual obligation to deliver cash or another financial asset other than the obligation on the Fund to repurchase the units. The total expected cash flows from the units are based on the change in the net asset of the Fund.

(g) Distribution

Distributions are at the discretion of the Fund. A distribution to the Fund‟s unitholders

is accounted for as a deduction from realised reserves except when realised reserves is not enough, it will be sourced out of distribution equalisation. The mode of the income distribution is via creation of additional units based on NAV as at the date one month after the accrual date. A proposed distribution is recognised in equity in the period in which they are declared.

(h) Net Asset Value

As the distribution is to be reinvested, for this Fund, the Net Assets Value is calculated after deducting the retained earnings allocated for distribution.



(i) Fair Value Measurement

The fair value of an asset or a liability, except for share-based payment and lease transactions, is determined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market or in the absence of a principal market, in the most advantageous market. For non-financial asset, the fair value measurement takes into account a market participant‟s ability to generate economic benefits by using the asset in its highest and

best use or by selling it to another market participant that would use the asset in its highest and best use. When measuring the fair value of an asset or a liability, the Fund uses observable market data as far as possible. Fair value are categorised into different levels in a fair value hierarchy based on the input used in the valuation technique as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or

liabilities that the Fund can access at the measurement date. Level 2: inputs other than quoted prices included within Level 1 that are

observable for the asset or liability, either directly or indirectly. Level 3: unobservable inputs for the asset or liability. The Fund recognises transfers between levels of the fair value hierarchy as of the date of the event or change in circumstances that caused the transfers.


4. Quoted Securities

Number

of shares held

Cost

Market value

Percentage of value of funds

at 31.8.2015

As at 31 August 2015 RM RM %

Main Market

(i) Construction

IJM Corporation Bhd. 63,500 423,186 400,050 1.61 Sunway Construction Group Bhd. 245,030

283,160

274,434

1.10 WCT Holdings Bhd. 236,711 541,473 279,319 1.12

1,247,819 953,803 3.83

(ii) Consumer products

UMW Holdings Bhd. 26,000 323,776 221,000 0.89

323,776 221,000 0.89

(iii) Finance

BIMB Holdings Bhd. 190,000 865,369 758,100 3.05

865,369 758,100 3.05

(iv) Industrial products

Coastal Contract Bhd. 200,900 592,816 385,728 1.55 Petronas Chemical Group Bhd.

200,000 1,355,000

1,214,000

4.88

Petronas Gas Bhd. 42,100 990,257 897,572 3.61

2,938,073 2,497,300 10.04

(v) Infrastructure

DiGi.Com Bhd. 105,500 576,707 551,765 2.22

Westport Holdings Bhd. 24,000 88,170 100,800 0.41

664,877 652,565 2.63

(vi) Plantation

Kuala Lumpur Kepong Bhd. 51,900 1,252,620 1,080,558 4.34

1,252,620 1,080,558 4.34


4. Quoted securities (continued)

Number of shares/warrant

held

Cost

Market value

Percentage of value of

funds at 31.8.2015

As at 31 August 2015 RM RM % Main Market (continued) (vii) Properties

Eastern & Oriental Bhd 84,000 163,345 128,520 0.52 Glomac Bhd. 209,900 263,575 154,276 0.62 LBS Bina Group Bhd. 448,200 838,265 582,660 2.34 Malaysian Resources Corporation Bhd. 277,400

541,846

237,177

0.95

UEM Sunrise Bhd. 140,000 398,273 118,300 0.48 2,205,304 1,220,933 4.91

(viii) Trading and services

Axiata Group Bhd. 135,173 907,571 829,962 3.34

Brahim‟s Holdings Bhd. 113,500 257,313 65,830 0.26 Dayang Enterprise Holdings Bhd. 112,000

341,462

175,840

0.71

Dialog Group Bhd. 288,682 524,923 453,231 1.82

Maxis Bhd. 51,500 354,042 338,355 1.36

MISC Bhd. 56,500 482,647 457,650 1.84

Sime Darby Bhd. 37,337 347,654 278,161 1.12

Tenaga Nasional Bhd. 37,700 418,762 421,486 1.69 TH Heavy Engineering Bhd. 300,000

263,489

46,500

0.19

UMW Oil & Gas Corporation Bhd. 374,000

980,902

374,000

1.50

Uzma Bhd. 173,100 392,452 296,001 1.19

5,271,217 3,737,016 15.02

(ix) Warrant

WCT Holdings Bhd. 47,342 - - -

- Warrant E*

- - -

Total portfolio investment

as at 31 August 2015 14,769,055 11,121,275 44.71

Bonus warrants received at nil cost. The warrants were subsequently listed on Bursa Malaysia Berhad at 4 September 2015, with a market value of RM0.19 per warrant.


4. Quoted securities (continued)

As at 31 August 2014

Number of

shares held

Cost RM

Market Value

RM


Funds at 31.8.2014

% Main Market

(i) Construction Gamuda Bhd. 224,000 1,065,742 1,081,920 3.64 IJM Corporation Bhd. 34,000 226,211 221,000 0.74 Malaysian Recources Corporation Bhd. 277,400 541,846 471,580 1.58 WCT Holdings Bhd. 181,250 454,394 386,063 1.30

2,288,193 2,160,563 7.26

(ii) Consumer products

UMW Holdings Bhd. 26,000 323,776 321,360 1.08

323,776 321,360 1.08

(iii) Finance

BIMB Holdings Bhd. 190,000 865,369 818,900 2.75

865,369 818,900 2.75

(iv) Industrial products

Hartalega Holdings Bhd. 41,000 279,570 282,900 0.95 Petronas Chemical Group Bhd. 200,000

1,355,000

1,260,000

4.24

Petronas Gas Bhd. 53,600 1,260,755 1,222,080 4.10

Top Glove Corporation Bhd. 52,000 253,592 249,080 0.84

3,148,917 3,014,060 10.13

(v) Infrastructure

DiGi.Com Bhd. 166,500 830,626 954,045 3.21 Time Dotcom Bhd. 156,500 704,971 763,720 2.57

1,535,597 1,717,765 5.78

(vi) Plantation

Boustead Plantations Bhd. 55,910 90,351 89,456 0.30 IOI Corporation Bhd. 186,600 905,054 891,948 3.00 Kuala Lumpur Kepong Bhd. 69,900 1,687,055 1,540,596 5.18

2,682,460 2,522,000 8.48


4. Quoted Securities (continued)


Number of

shares held Cost

RM

Market Value

RM

Percentage of value of Funds

at 31.8.2014

% Main Market (continued)

(vii) Properties Glomac Bhd. 209,900 263,575 237,187 0.80 LBS Bina Group Bhd. 448,200 838,265 752,976 2.53 Matrix Concepts Holdings Bhd. 33,000

91,810

104,280

0.35

S P Setia Bhd. 141,000 553,914 486,450 1.64 Sunway Bhd. 43,300 135,375 129,900 0.44 UEM Sunrise Bhd. 140,000 398,273 268,800 0.90

2,281,212 1,979,593 6.66

(viii) Technology Unisem (M) Bhd. 185,000 338,035 327,450 1.10

338,035 327,450 1.10

(ix) Trading and services

Axiata Group Bhd. 271,300 1,824,276 1,880,109 6.32 Brahim‟s Holdings Bhd. 498,500 1,151,235 663,005 2.23 Dialog Group Bhd. 577,382 1,049,879 998,871 3.36 IHH Healthcare Bhd. 52,000 254,536 253,760 0.85 Maxis Bhd. 163,000 1,120,180 1,067,650 3.59 MMC Corporation Bhd. 60,000 171,360 148,200 0.50 Parkson Holdings Bhd. 111,910 551,977 335,730 1.13 Sime Darby Bhd. 51,637 486,635 488,486 1.64 SapuraKencana

Petroleum Bhd. 70,991

298,575

299,582

1.01 Tenaga Nasional Bhd. 195,400 2,060,803 2,419,052 8.13

TH Heavy Engineering Bhd. 695,000

666,969

573,375

1.93

Telekom Nasional Bhd. 97,500 567,863 620,100 2.08

10,204,288 9,747,920 32.77


4. Quoted Securities (continued)


Number of

shares held Cost

RM

Market Value

RM


Funds at 31.8.2014

% Main Market (continued)

(x) Warrant

Mah Sing Group Bhd. - Warrant B 592,700 389,030 364,510 1.23 Sunway Bhd. - Warrant A 285,200 256,964 213,900 0.72

645,994 578,410 1.95

Total portfolio investment as at 31 August 2014 24,313,841 23,188,021 77.96


7. Unitholders’ Capital

No. of units RM

As at 31 August 2013/1 September 2013 43,241,059 24,283,066

Creation of units 27,475,561 15,610,099

Cancellation of units (17,344,083) (10,083,938)

As at 31 August 2014/1 September 2014 53,372,537 29,809,227 Creation of units 9,683,946 5,361,729

Cancellation of units (8,761,720) (4,565,679)

As at 31 August 2015 54,294,763 30,605,277

In accordance with the Deed, the maximum number of units that can be issued out for circulation is 400,000,000 (2014: 400,000,000). As at 31 August 2015, the number of units yet to be issued was 345,705,237 units (2014: 346,627,463). Based on historic information over the last 12 months, redemption levels are expected to approximate RM4,566,000 (2014: RM10,084,000) and the average monthly level of creation net of redemption are expected to approximate RM66,300 (2014: RM460,500). However, the actual level of redemptions may differ significantly from the historic experience.

8. Manager’s Fee

The management fee payable to the manager of the Fund is based on 1.50% (2014: 1.50%) per annum of the net asset value of the Fund calculated on a daily basis.

9. Trustee’s Fee

The trustee‟s fee is payable to the trustee of the Fund based on 0.08% (2014: 0.08%) per

annum subject to a minimum of RM18,000 (2014: RM18,000) per annum of the net asset value of the Fund calculated on a daily basis.


10. Tax expense/(refund)

2015 2014 RM RM

Tax (refund)/expense

- Current year - (2,195)

Reconciliation of effective tax expense

Net (loss)/income before tax (5,659,167) 2,314,348

(Loss)/Income tax using Malaysian tax rate @ 25% (1,414,792) 578,587 Non-deductible expenses 766,281 12,790

Income not subject to tax 648,511 (593,572)

- (2,195)

11. Distribution

2015 2014 RM RM Distribution to unitholders is from the following sources:

(Loss)/Gain on sale of shares - 1,345,746

Gross dividends from share quoted in Malaysia - 748,652

Income from Islamic debt securities - 174,366

Income from short term investments - 105,767

Gain on sale of Islamic debt securities - 14,600

Hibah from Al-Wadiah account - 1,391

Tax income - 2,195

- 2,392,717 Less:

Expenses - (552,398)

Taxation - -

Amortisation of premium - (5,939)

Undistributed income - (313,263)

Net distributable - 1,521,117

The Manager has declared a net distribution of Nil (2014: 2.85 sen) per unit based on units in circulation as at 31 August 2015 amounting to Nil (2014: RM1,521,117) in respect of the current financial year.


12. Units held by related parties

The total number and value of units held legally or beneficially by a related party of the Manager is as follows:

As at 31.8.2015 As at 31.8.2014

Units RM Units RM Bank Islam Malaysia

Berhad 158,935 72,824 151,187 84,256

The Manager does not hold any unit in the Fund (2014: Nil).

13. Transactions with Related Parties

Other than as disclosed in Note 7 of the financial statements, other transaction with related parties are as follows:

Transactions as at 31 August Balance as at 31 August 2015 2014 2015 2014 RM RM RM RM

The Manager

BIMB Investment Management Berhad

- Management fee 461,581 488,096 (33,166) (37,694)

- Amount due from Manager

-

-

200

146,018 - Amount due to Manager

-

-

(676,833)

(1,430)

Holding company of the Manager

Bank Islam Malaysia Berhad

- Income from short term placement

(48,188)

(41,697)

4,136,187

1,850,878

Related company of the Manager

BIMB Securities Sdn. Bhd.

- Brokerage fee 23,700 31,934 - -

The Trustee

ABB Trustee Berhad

- Trustee fee 24,618 26,032 (1,669) (2,010)


14. Transactions with related and other stockbroking companies

Value of trade

Percentage of total

trade

Brokerage fee

Percentage of total

brokerage fee

RM % RM % 1 September 2014 to 31 August 2015

Hong Leong Investment Bank Bhd.

10,223,961

18.16

32,307

17.30

RHB Investment Bank Bhd. 10,044,736 17.85 30,414 16.29 BIMB Securities Sdn Bhd.* 7,536,238 13.39 23,700 12.69 MIDF Investment Bank Bhd. 5,755,228 10.23 19,127 10.24 TA Securities Holdings Bhd. 5,688,952 10.11 18,513 9.91 AmInvestment Bank Bhd. 4,155,474 7.38 14,557 7.80 Kenanga Investment Bank Bhd. 3,604,990 6.40 12,539 6.72 Macquarie Capital Securities (Malaysia) Sdn Bhd.

3,290,000

5.85

10,603

5.68

CIMB Investment Bank Bhd. 2,374,501 4.22 10,501 5.62 Maybank Investment Bank Bhd. 1,865,454 3.31 8,256 4.42 Other brokers 1,745,312 3.10 6,209 3.33

56,284,846 100.00 186,726 100.00

1 September 2013 to 31 August 2014

Maybank Investment Bank Bhd. 14,180,496 19.26 48,146 20.45 RHB Investment Bank Bhd. 9,498,063 12.90 29,877 12.69 BIMB Securities Sdn Bhd.* 9,318,845 12.65 31,934 13.56 MIDF Investment Bank Bhd. 8,155,446 11.07 27,735 11.78 Hong Leong Investment Bank Bhd.

7,807,033

10.60

26,617

11.31

AmInvestment Bank Bhd. 6,540,612 8.88 21,703 9.22 CIMB Investment Bank Bhd. 6,207,641 8.43 21,962 9.33 TA Securities Holdings Bhd. 4,183,911 5.68 14,561 6.18 Kenanga Investment Bank Bhd. 3,610,842 4.90 12,671 5.38 Bank Muamalat Malaysia Bhd. 2,056,215 2.79 - - Other brokers 2,080,116 2.84 226 0.10

73,639,220 100.00 235,432 100.00

* Transactions with the related parties have been entered into in the normal course of business and have been transacted at arm‟s lengths basis.


15. Management Expense Ratio (“MER”)

The management expense ratio for the financial year is 1.74% (2014: 1.69%). 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.

16. Portfolio Turnover Ratio (“PTR”)

The portfolio turnover ratio for the financial year is 5.20 times (2014: 9.47 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.

17. Financial Instruments

17.1 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 F&R/ (OL)

FVTPL

RM RM RM


Financial assets

Quoted securities 11,121,275 - 11,121,275

Islamic debt securities 3,967,940 - 3,967,940

Amount due from Manager 200 200 -

Receivables 136,291 136,291 -

Cash and cash equivalents 10,388,287 10,388,287 -

25,613,993 10,524,778 15,089,215

Financial liabilities

Other payables (738,128) (738,128) -


17. Financial Instruments (continued)

17.1 Categories of financial instruments (continued)

Carrying amount

F&R/ (OL)

FVTPL

RM RM RM


Financial assets

Quoted securities 23,188,021 - 23,188,021

Islamic debt securities 3,974,040 - 3,974,040

Receivables 348,183 348,183 -

Cash and cash equivalents 3,952,132 3,952,132 -

31,462,376 4,300,315 27,162,061

Financial liabilities

Other payables (202,277) (202,277) -

17.2 Net gains and losses arising from financial instruments

2015 2014 RM RM

Net (loss)/gains on:

Fair value through profit or loss:

- Designated upon initial recognition (5,207,637) 2,759,588

Financing and receivables 85,529 107,158

(5,122,108) 2,866,746

17.3 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


17.4 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.

17.5 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.

17.6 Market risk

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

2015 2014 RM RM

Fixed rate instruments

Islamic debt securities 3,967,940 3,974,040

Short term investments 10,237,714 3,522,989

Fair value sensitivity analysis for fixed rate instruments


The Fund accounts for the Islamic debt securities at fair value through profit and loss. An increase of 100 basis points (bp) in profit rates at the end of the reporting period would have decreased on the unitholders‟ fund and statement of comprehensive income by RM105,061 (2014 : RM138,161). A decrease of 100 basis point (bp) in profit rates would have equal but opposite effect on the equity and statement on comprehensive income respectively. 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. 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 10% (2014 : 5%) strengthening in equity prices at the end of the reporting period would have increased the net asset value and unitholders‟ fund by RM1,112,128

(2014: RM1,159,401). A 10% (2014: 5%) weakening in equity prices would have had equal but opposite effect on the net asset value and unitholders‟ fund respectively.

17.7 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.

Fixed income risks are in the form of profit rate and credit risks. To manage these risks, investments will be in investment grade sukuk.

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 monthly Investment Committee meetings of the Manager held at least 6 times a year.


17.8 Fair value of financial instruments

The carrying amounts of cash and cash equivalents, short term investment, short term receivables and payables approximate fair values due to the relatively short term nature of these financial instruments. The table below analyses financial instruments carried at fair value for which fair value is disclosed, together with their fair values and carrying amounts shown in the statement of financial position.

Fair value of financial instruments carried at fair value

Carrying Level 1 Level 2 Level 3 Total amount RM RM RM RM RM

As at 31.8.2015

Financial assets

Quoted securities 11,121,275 - - 11,121,275 11,121,275

Islamic debt securities

- 3,967,940 -

3,967,940

3,967,940

11,121,275 3,967,940 - 15,089,215 15,089,215

As at 31.8.2014

Financial assets

Quoted securities 23,188,021 - - 23,188,021 23,188,021

Islamic debt securities

-

3,974,040

-

3,974,040

3,974,040

23,188,021 3,974,040 - 27,162,061 27,162,061

Policy on transfer between levels The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused the transfer. Level 1 fair value Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical financial assets or liabilities that the entity can access at the measurement date.


Quoted equities Quoted equities in Malaysia are valued at a market 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. Level 2 fair value Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the financial assets or liabilities, either directly or indirectly. Islamic debt securities Islamic debt securities issued by Malaysian corporations and rated by the Rating Agency of Malaysia Berhad are carried at fair value. In arising at fair value gain/loss, the acquisition cost is adjusted for the amortisation of any premium or accretion of any discount over their par values at the time of acquisition. The premium or discount is amortised or accreted on a yield to maturity basis over the remaining term of the investments from the date of acquisition. This adjusted cost (carrying value) is then revalued to reflect its fair value (indicative market value) using the fair price quoted by an independent bond pricing agency (BPA) registered with the Securities Commission. If such quotations are not available, it will be valued on a weekly basis or as and when appropriate by reference to average indicative yield quoted by the three reputable financial institutions in over-the-counter markets as the close of trading. These institutions include investments banks and commercial banks. Transfers between Level 1 and Level 2 fair values There has been no transfer between Level 1 and 2 fair values during the financial year (2014: no transfer in either direction). Level 3 fair value Level 3 fair value is estimated using unobservable inputs for the financial assets and liabilities.

18. 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.


7.0 Corporate Directory

Manager BIMB Investment Management Berhad Registered Office Level 32, Menara Bank Islam, No. 22, Jalan Perak 50450, Kuala Lumpur Business Office Level 19, Menara Bank Islam, No. 22, Jalan Perak 50450, Kuala Lumpur

Board of Directors Dato‟ Sri Zukri Samat (Chairman – Non Executive) Mustapha Hamat (Non-Executive Independent Director) Dato‟ Ghazali Awang (Non-Executive Independent Director) Datuk Noripah Kamso (Non-Executive Independent Director) Dr. Mohd Hatta Dagap (Non-Executive Independent Director) Malkiat Singh @ Malkit Singh Maan (Non-Executive Non Independent Director) Khairul Kamarudin (Non-Executive Non Independent Director) Najmuddin Mohd Lutfi (Chief Executive Officer)

Investment Committee Ghazali Awang (Chairman - Independent Member) Mustapha Hamat (Independent Member) Khairul Muzamel Perera Abdullah (Non Independent Member)

Audit Committee Mustapha Hamat (Chairman - Independent Member) Ghazali Awang (Independent Member) Malkiat Singh @ Malkit Singh Maan (Non-Executive Non Independent Member)

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

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


Key Management Najmuddin Mohd Lutfi (Chief Executive Officer) Badrol Ahmad Fathan (Head of Investment) Azman Ali (Head of Compliance) Noor Rose Mona Aziz (Head, Finance and Operations)

Principal Banker Bank Islam Malaysia Berhad Ground Floor, Menara Bank Islam No.22, Jalan Perak 50450 Kuala Lumpur

Trustee ABB Trustee Berhad (5004-P) Tingkat 17, Menara Affin 80, Jalan Raja Chulan 50200 Kuala Lumpur

Federation of Investment Managers Malaysia (FiMM)

19-06-1, 6th Floor, Wisma Tune No.19, Lorong Dungun Damansara Heights 50490 Kuala Lumpur

Distributors Bank Islam Malaysia Berhad Branches IFast Capital Sdn Bhd Phillip Mutual Berhad Johor Bharu Agency Office Bank Simpanan Nasional Registered Unit Trust Consultant with BIMB Investment Management Berhad

Toll Free Number: 1-800-88-1196

Toll Free Number: 1-800-88-1196Call Centre: 03-26 900 900

Level 19, Menara Bank Islam,No. 22 Jalan Perak, 50450 Kuala Lumpur

03-2161 2524 / 2924

www.bimbinvestment.com.my

[email protected]

BIMB AL-FALAH - Bank Islam · PDF file(BIMB DANA AL-FALAH; ANNUAL REPORT FY 31 AUGUST 2015) |3...

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