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PMB SHARIAH SMALL-CAP FUND

ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 31 JULY 2018

>>> ANNUAL REPORT - PMB SHARIAH SMALL-CAP FUND >>>

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NOTIS KEPADA PARA PELABUR

__________________________________________________________ LAPORAN TAHUNAN DAN LAPORAN INTERIM SECARA

ELEKTRONIK MULAI 2018

1. Berkuatkuasa 31 Mac 2018, kami, PMB Investment Berhad (PMBI), telah

mengedarkan secara elektronik dokumen-dokumen berikut –

a. Laporan tahunan dana; dan

b. Laporan interim dana,

untuk semua dana yang dilanggani oleh tuan/puan.

„Edaran secara elektronik‟ bermaksud muat turun dari laman sesawang kami di www.pmbinvestment.com.my.

2. Sehubungan dengan itu, tuan/puan adalah secara automatik didaftarkan untuk menerima dokumen-dokumen tersebut secara elektronik.

3. Tuan/puan akan dimaklumkan mengenai ketersediaan dokumen-dokumen

tersebut melalui e-mail atau khidmat pesanan ringkas (sms) apabila dokumen-dokumen tersebut dimuatnaik ke laman sesawang kami.

4. Susulan dengan itu, tuan/puan adalah dimohon untuk mengemaskini maklumat alamat e-mel dan nombor telefon mudah alih tuan/puan

menggunakan Borang Kemaskini Maklumat Pelabur yang dilampirkan dan menyerahkan melalui saluran berikut:-

a. Pejabat Jualan atau ejen-ejen berdaftar PMBI seluruh negara; atau

b. Diposkan kepada:-

PMB Investment Berhad

Bahagian Perhubungan Pelabur Level 20, 1 Sentral, Jalan Rakyat, Kuala Lumpur Sentral,

Peti Surat 10701 50722 Kuala Lumpur;

c. Faks: 03-2785 9801; atau

d. E-mel: [email protected]

5. Sila maklumkan kepada kami secara bertulis jika tuan/puan tidak mahu

menerima dokumen secara elektronik pada bila-bila masa melalui saluran yang dinyatakan di atas.

6. Dokumen-dokumen tersebut yang bercetak masih boleh diperolehi atas permintaan tuan/puan tanpa sebarang caj di pejabat pengurusan dan

pejabat-pejabat jualan kami.

Terima kasih.

Sebarang pertanyaan, sila hubungi Unit Perhubungan Pelabur di talian

03-2785 9900 atau e-mel ke [email protected]

mailto:[email protected]


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Dear Valued Customer

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

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

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

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accordance with the Malaysian Personal Data Protection Act 2010.

Please note that PMB INVESTMENT BERHAD may amend this Personal

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

of any such amendment via our website or by email.

Privacy Notice content involves matters concerning the processing of your

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

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If you would like to obtain further information, please do not hesitate to contact us at Customer Care Line 03-2785 9900.

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


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

HEAD OFFICE Level 20, 1 Sentral Jalan Rakyat, Kuala Lumpur Sentral

Peti Surat 10701

50722 Kuala Lumpur

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

E-mail: [email protected]

Website: www.pmbinvestment.com.my

BOARD OF DIRECTORS Dato‟ Abdul Malik bin Ismail - Chairman (Effective until 31 May 2018)

Dato‟ Sri Hj Abd Rahim bin Hj Abdul

Dato‟ Mohammad Safie bin Asnan @ Asnawi (Effective until 31 May 2018)

Prof. Dr. Faridah binti Hj Hassan

Mansoor bin Ahmad

Nik Mohamed Zaki bin Nik Yusoff

Dato‟ Ahmad Nazim bin Abd Rahman (Effective until 15 August 2018)

Najmi bin Haji Mohamed

CHIEF EXECUTIVE OFFICER Najmi bin Haji Mohamed

COMPANY SECRETARIES Shahrizat binti Othman

INVESTMENT COMMITTEE MEMBERS Mansoor bin Ahmad

Nik Mohamed Zaki bin Nik Yusoff

Dato‟ Ahmad Nazim bin Abd Rahman (Effective until 15 August 2018)

Prof. Dr. Mohamed Aslam bin Mohamed Haneef

TRUSTEE CIMB ISLAMIC TRUSTEE BERHAD

SHARIAH ADVISER BIMB SECURITIES SDN. BHD. AUDITORS JAMAL, AMIN & PARTNERS

CORPORATE INFORMATION


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


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NO. CONTENTS PAGES

1. FUND INFORMATION 6

1.1 FUND NAME 6

1.2 DATE OF LAUNCH 6

1.3 FUND CATEGORY/TYPE 6

1.4 FUND INVESTMENT OBJECTIVE 6

1.5 FUND PERFORMANCE BENCHMARK 6

1.6 FUND DISTRIBUTION POLICY 6

1.7 UNIT HOLDINGS AS AT 31 JULY 2018 6

2. FUND PERFORMANCE 7 – 8

2.1 FUND COMPOSITION 7

2.2 INCOME DISTRIBUTION/UNIT SPLIT 8

3. MANAGER’S REPORT 9 – 16

3.1 FUND‟S PERFORMANCE ANALYSIS 9

3.1.1 FUND‟S PERFORMANCE MEASURED

AGAINST FUND OBJECTIVE 9

3.1.2 FUND‟S PERFORMANCE MEASURED

AGAINST BENCHMARK 9

3.2 ANALYSIS OF FUND‟S PERFORMANCE BASED ON

NAV PER UNIT 10

3.3 POLICY AND INVESTMENT STRATEGY 10

3.4 ALLOTMENT OF FUND ASSETS 10


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NO. CONTENTS PAGES 3.5 ECONOMIC REVIEW 11

3.6 EQUITY MARKET REVIEW 13

3.7 MONEY MARKET REVIEW 14

3.8 INCOME DISTRIBUTION/UNIT SPLIT 15

3.9 SIGNIFICANT OF UNIT HOLDERS 16

3.10 SOFT COMMISSIONS AND REBATES 16

4. TRUSTEE’S REPORT 25 5. SHARIAH ADVISOR’S REPORT 26 6. STATEMENT BY MANAGER 27 7. AUDITOR’S REPORT 28 – 30 8. FINANCIAL STATEMENT 31 – 47 9. BUSINESS INFORMATION NETWORK 48 – 49 10. INFORMATION OF INVESTOR RELATION 50

11. INVESTOR PROFILE UPDATE FORM 51


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1. FUND INFORMATION

1.1 FUND NAME

PMB SHARIAH SMALL-CAP FUND - PMB SSCF.

1.2 DATE OF LAUNCH 16 May 2016.

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

1.4 FUND INVESTMENT OBJECTIVE The objective of the Fund is to achieve capital growth over the medium to long term period by investing primarily in small-sized Shariah compliant

companies listed on Bursa Malaysia, in term of market capitalization.

1.5 FUND PERFORMANCE BENCHMARK

FTSE Bursa Malaysia Small Cap Shariah Index (FBM SCSI).

1.6 FUND DISTRIBUTION POLICY The distribution of income (if any) is incidental.

1.7 UNIT HOLDINGS AS AT 31 JULY 2018

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

Held %

5,000 and below 767 65.33 919,125.87 1.72

5,001 - 10,000 147 12.52 1,131,561.63 2.11

10,001 - 50,000 166 14.14 4,310,162.57 8.04

50,001 - 500,000 85 7.24 9,965,206.19 18.59

500,001 and above 9 0.77 37,277,865.01 69.54

Total 1,174 100.00 53,603,921.27 100.00

* Note: Excluding manager‟s unit


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2. FUND PERFORMANCE 2.1 FUND COMPOSITION

31 JULY Sector 2018 2017 Main Market: % %

Consumer Products 28.35 19.94

Industrial Products 16.89 25.47

Construction - 6.88

Trading & Services 5.19 3.90

Properties - 3.81

Infrastructure 4.47 3.33

Plantation 4.99 1.45

Technology 26.11 19.65

Ace Market:

Technology 9.22 -

Islamic Deposits and others 4.78 15.57

Total 100.00 100.00

Performance Information Net Asset Value (NAV) - xD (RM‟000) 26,941 24,272

Unit in circulation („000) 53,629 39,922

NAV per unit - xD (RM) 0.5024 0.6080

NAV per unit - xD: Highest (RM) 0.6356 0.6080

NAB Seunit - xD: Lowest (RM) 0.4733 0.4653

Total Return # (%) (17.37 ) 21.60

- Capital Growth # (%) (17.37 ) 21.60

- Income Return (%) - -

Management Expenses Ratio (MER) * (%) 1.70 2.10

Portfolio Turnover Ratio (PTR) ** (times) 1.44 2.82

# Source: Lipper

* MER decreased 0.40 percentage point to 1.70% in the financial year ended

31 July 2018 from 2.10% in the corresponding period last year. The

decline was due to an increase in total expenditure by 354.26% in followed

by increase in the average size of the Fund by 463.01% to RM25.11

million from RM4.46 million.

Past performance is not necessarily indicative of future performance, unit

prices and investment returns may fluctuate.


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2.1 FUND COMPOSITION (CONT.)

** PTR decreased by 48.9% to 1.44 times in the financial year ended 31 July

2018 from 2.82 times, as compared to the same period of the previous year. This was due to the increased in the average fund size by 463.01% as compared to the increased in the purchase and sale expenses by only 187.7%. The purchase and sale activities were carried out based on a

changing investment strategy in accordance with market conditions.

* AVERAGE RETURN (ENDED 31 JULY)

2018 Since Commencement (6 June 2016 until 31 July 2018)

PMB SSCF (17.37%) 0.22%

FBM SCSI (17.47%) (4.28%)

* ANNUAL TOTAL RETURN (ENDED 31 JULY)

2018 Since Commencement (6 June 2016 until 31 July 2017)

PMB SSCF (17.37%) 21.60%

FBM SCSI (17.47%) 10.28%

* Source: Lipper

2.2 INCOME DISTRIBUTION/UNIT SPLIT

DATE / YEAR ENDED 31 JULY

2018 2017

Gross Distribution per unit (sen)

Net Distribution per unit (sen)

-

-

-

-

Unit Split Ratio - -

Note: Unit split (if any) are not eligible for income distribution for the current financial year.

Past performance is not necessarily indicative of future performance, unit

prices and investment returns may fluctuate.


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3. MANAGER’S REPORT

We are please to present the Manager‟s report of PMB SSCF for the

financial year ended 31 July 2018.

3.1 FUND’S PERFORMANCE ANALYSIS 3.1.1 FUND’S PERFORMANCE MEASURED AGAINST FUND OBJECTIVE

Since commencement on 6 June 2016, the PMB SSCF has yet to achieve

its objective of achieving capital growth over the medium to long term.

However, based on data from Lipper, Fund's return since its commencement was 0.48%. For 1-year period ended 31 July 2018, the Fund's return fell by 17.37%.

3.1.2 FUND’S PERFORMANCE MEASURED AGAINST BENCHMARK Fund‟s performance measured against benchmark FBM Small Cap

Shariah Index (FBM SCSI) since its commencement is as follows:-

The graph illustrates the movement of the Fund's return against the

benchmark since commencement on 6 June 2016. During the period

ended 31 July 2018, the Fund‟s NAV per unit increased 0.48% whereas its

benchmark decreased by 8.98%.


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3.2 ANALYSIS OF FUND’S PERFORMANCE BASED ON NAV PER UNIT

For the period under review ended 31 July 2018, NAV per unit decreased

by RM0.1056 or -17.37% to RM0.5024 (CD) from RM0.6080 (XD) at 31 July

2017.

3.3 POLICY AND INVESTMENT STRATEGY The Fund shall invest between 50% and 99.5% in a diversified portfolio of Shariah-compliant equity securities of small-sized companies on Bursa

Malaysia with market capitalization of at least RM250 million but not more

than RM1 billion (at the point of acquisition). However the Fund may invest

up to 20% of its NAV in securities of companies with market capitalization

in excess of RM1 billion but not more than RM7 billion (at the point of

acquisition). The Fund will focus its investments on companies with growth

prospects in medium to long term horizon, reasonably good earnings, quality management and good corporate governance, as analysed by the Manager. In view of the Fund‟s objective, the designated fund manager will trade the securities depending on the securities market conditions.

3.4 ALLOTMENT OF FUND ASSETS Comparison of investment components based on NAV is as follows:-

ASSET ALLOCATION

31 July 2018 (%)

31 July 2017 (%)

Change (%)

Investment Exposure Average

(%)

Equity 95.22 84.43 10.79 89.83

Islamic Deposits & others 4.78 15.57 (10.79) 10.17

As at 31 July 2018, 95.22% of the Fund‟s NAV was invested in equity

market while the balance of 4.78% was held in Islamic deposits and/or

permitted investments.


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3.4 ALLOTMENT OF FUND ASSETS (CONT.)

3.5 ECONOMIC REVIEW

The Malaysian economy grew by 4.5% in the second quarter (“2Q”) of 2018. Private sector activity continued to be the primary driver of growth

as both private consumption and investment expanded strongly during the quarter. On the supply side, growth was affected by commodity-specific shocks. Growth in the mining sector contracted due mainly to unplanned

supply outages, while the agriculture sector was affected by production constraints and adverse weather conditions. Nevertheless, major economic sectors, notably the services and manufacturing sectors,

remained supportive of growth. On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 0.3% (1Q 2018: 1.4%).

Headline inflation declined to 1.3% in 2Q 2018 (1Q 2018: 1.8%), mainly reflecting the zerorisation of the Goods and Services Tax (GST) rate. The impact from the GST zerorisation, however, was offset by higher transport

inflation. Nevertheless, the fixing of RON95 fuel price since 22 March 2018 helped to contain further increase in fuel inflation during the quarter.


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3.5 ECONOMIC REVIEW (CONT.) Growth is expected to be sustained, supported mainly by private sector activity. Positive labour market conditions and capacity expansion will continue to support robust private consumption and investment respectively. While headline inflation is projected to moderate, the extent of the moderation would depend on the pass-through from changes in the consumption tax policy. Underlying inflation, which excludes the impact of changes in the consumption tax policy, is expected to remain relatively stable in the coming quarters supported by sustained private sector spending. Malaysia‟s macroeconomic fundamentals remain strong, and thus provides the country with the requisite buffers to effectively manage potential shocks to the economy.

Gross Domestic Product (GDP) Growth For Second Quarter 2018

Inflation Overall, inflation went up by 2.6% for 12-month period ending June 2018 compared to 2.7% growth during the same period in the preceding year. The growth was supported by the increase in transport (+6.6%) and food & non-alcoholic beverages (+3.3%).

Industrial Production Index (IPI) IPI increased marginally by 1.1% in June 2018 as compared with the same month of the previous year. The growth in June 2018 was supported by an increase in the index of manufacturing (4.5%) and the index of electricity (3.0%). Meanwhile, the index of mining recorded a decline of 9.4%.

Balance of Trade For 12-month period ending June 2018, trade surplus stood at RM114.9 billion, an expansion of RM26.4 billion (+29.9%) when compared to the same period a year ago. Total trade for 12-month period ending June 2018, which was valued at RM1,819.1 billion, went up by RM179.3 billion (+10.9%) when compared to the same period a year ago. For the same period, total export grew 11.9% to RM967.0 billion while total import grew 9.9% to RM852.1 billion.

(Source: Department of Statistics Malaysia, Official Portal)

Sector 2018 2018 2017 Sector 2018 2018 2017 Production Q2 Q1 Q2 Expenditure Q2 Q1 Q2

Agriculture -2.5% +2.8% +5.9% Private Final Comsumption

+8.0% +6.9% +7.1%

Construction +4.7% +4.9% +8.3% Government Final Comsumption

+3.1% +0.4% +3.3%

Services +6.5% +6.5% +6.3% Growth Fixed Capital Formation

+2.2% +0.1% +4.1%

Manufacturing +4.9% +5.3% +6.0% Export +2.0% +3.7% +9.4%

Mining & Quarrying

-2.2% +0.1% +0.1% Import +2.1% -2.0% +10.4%

GDP +4.5% +5.4% +5.8% GDP +4.5% +5.4% +5.8%


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3.6 EQUITY MARKET REVIEW For the year ending 31 July 2018, the benchmark, that is, the FBM Small Cap Shariah Index (FBM SCSI), fell -2,779.55 points or -17.47% to

13,133.81 whereas the main benchmark of Bursa Malaysia, that is the FBM KLCI, increased 24.22 points or 1.38% to 1,784.25.

During that period, the FBM SCSI recorded its highest level of 16,316.91

on 8 January 2018 and its lowest level of 12,055.68 on 11 July 2018. Meanwhile, the FBM KLCI recorded its highest level of 1,895.18 on 19 April

2018 and its lowest level of 1,663.86 was recorded on 6 July 2018. The movement range for the FBM SCSI during that period is 4,261.23 points as

compared to 3,286.75 points during the same period of the previous year.

In the period reviewed, the local stock market appeared to be in a

consolidation mode by the middle of the third quarter of 2017 although the published local economic data was much better than expected. This was

due to the unexpectedly poor financial performance of Bursa Malaysia‟s listed companies in the second quarter of 2017. This situation was

aggravated by global geopolitical instability due to a dispute between the world‟s two major nuclear powers, as well as the tendency of the United

States to raise interest rates at a faster pace following the anticipated continuous recovery of the nation‟s economic momentum. These issues

have raised an uncertainty in the stock market and caused foreign investors to reduce their weightage in the local stock market with a net

foreign outflow of RM558.5 million in the third quarter of 2017.

Foreign investors continued their selling spree in the Malaysian stock

market throughout October 2017 and November 2017, with a net outflow of RM241.7 million following an unfavourable Chinese economic data.

Since Malaysia is dependent on trade with China, as suggested by the fact that 16.3% of total trade in the first eleven months of 2017 was with China,

any indications of the latter‟s economic downturn may heighten concerns among investors over the sustainability of Malaysia‟s economic growth.

The withdrawal of foreign funds in October and November 2017 also appeared to be in “profit taking” nature following the strengthening of the

Malaysian Ringgit. Over the eleven-month period ending 30 November 2017, the exchange rate of Malaysian Ringgit against US Dollar had

increased by 4.7%.

By December 2017, the local stock market went up gradually as a foreign

investors re-enter the local stock bourse with net foreign inflow totalling RM959.9 million. The recovery of local bourse in the final week of 2017

was also due to “window dressing” activities. Continuous foreign inflow throughout January, with net inflow RM3.3 billion, had caused the local

stock market soaring to its 3-year high.


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3.6 EQUITY MARKET REVIEW (CONT.) However, this situation changed throughout February and March 2018 as investors turned cautious due to a declining US market and the uncertainty

about monetary policy that will be handled by the new chairman of US Federal Reserve, Jerome Powell. These issues did not only upset the local

stock market, but they also affected the regional market as well. The situation was further exacerbated by trade war between the United States

and China which was fuelled by the desire of the two global economic giants to cripple each other‟s economy. Investors also continued to be

wary throughtout April 2018 after the dissolution of the Malaysian Parliament due to the uncertainties surrounding country‟s leadership.

Following the surprise victory of Pakatan Harapan in the 14th General

Elections held on 9 May 2018, the FBM SCSI and FBMSHA plummeted to

theirs lowest level of 12,055.68 (11 July 2018) and 11,888.56 (28 June 2018) respectively against 13,152.25 (FBM SCSI) and 13,075.36 (FBMSHA)

level recorded on 8 May 2018. The 8.3% and 9.1% drop were driven by stock market sell-off by foreign investors with total net foreign outflow of

RM9.6 billion. Gradual improvement was seen in the stock market throughout July 2018, with a month-to-month increase of 6.5%, 5.9% and

5.5% respectively for the FBM SCSI, FBMSHA and FBM KLCI, driven by firm support from institutional and retail investors, since, technically, the market

was in oversold position as at early July.

In this volatile market sentiment, based on Lipper, the Fund NAV per unit

fell by 17.37% for the year ended 31 July 2018.

3.7 MONEY MARKET REVIEW Throughout one year period ending 31 July 2018, the Monetary Policy

Committee (MPC) of Bank Negara Malaysia (BNM) decided to increase the Overnight Policy Rate (OPR) by 25 basis points to 3.25% on 25 January

2018 and maintain the rate at 3.25% during the meeting held on 7 March 2018, 10 May 2018 and 11 July 2018.

According to BNM, the global economy continues to expand albeit with

some divergence across economies while global trade sustained its

growth momentum. In the advanced economies, rising income and policy support, particularly in the US, will continue to drive growth. Growth in

Asia will be supported by sustained domestic activity and external demand. However, the balance of risks to the outlook has tilted to the

downside. The intensification of global trade tensions could affect sentiments and weigh on trade, investment and consumption. Coupled

with ongoing monetary policy normalization in the advanced economies, shifting investor expectations and sentiments could lead to further capital

outflows and financial market adjustments in some emerging economies.


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3.7 MONEY MARKET REVIEW (CONT.) The Malaysian economy continued to expand in the first half of 2018, supported by private sector activity with additional impetus from net

exports. The positive growth performance is expected to be sustained, driven by both domestic and external demand. Private consumption will

be underpinned by continued wage and employment growth, with an additional lift from higher household spending due to the tax holiday.

Investment activity is projected to be supported by capacity expansion mainly in the export-oriented industries and ongoing infrastructure

projects, particularly in the transport and utilities sub-sectors. The external sector will continue to benefit from the sustained global growth

momentum. The growth outlook will be further supported with greater

certainty in domestic policy in the coming months. Overall, the Malaysian economy is expected to remain on a steady growth path.

Headline inflation for 2018 is projected to be lower than earlier forecast

taking into consideration the impact of recent policy measures on domestic cost factors. The impact of these measures on inflation, however, is

transitory. Headline inflation is likely to turn negative in some months and remain low in the first half of 2019 before trending upwards as these

transitory effects lapse. Core inflation is nevertheless expected to remain relatively stable in line with sustained domestic demand.

The positive domestic economic outlook, sound financial sector and improving current account surplus of the balance of payments will continue

to support Malaysia‟s fundamentals. Domestic financial markets have remained resilient despite non-resident portfolio outflows. The Malaysian

Ringgit exchange rate would be more reflective of the underlying fundamentals of the economy when the external and domestic

uncertainties recede. Notwithstanding the heightened financial market volatility, the domestic monetary and financial conditions remain

supportive of economic growth. BNM‟s monetary operations continue to ensure sufficient liquidity to support the orderly functioning of money and

foreign exchange markets and intermediation activity.

At the current level of the OPR, the degree of monetary

accommodativeness is consistent with the intended policy stance. The

MPC will continue to monitor and assess the balance of risks surrounding

the outlook for domestic growth and inflation.

(Source: Bank Negara Malaysia website)

3.8 INCOME DISTRIBUTION/UNIT SPLIT No income distribution/unit split were declared during the period under

review.


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3.9 SIGNIFICANT OF UNITHOLDERS For the financial period under review, there is no circumstances that

materially affect any interest of the unit holders others than business transaction accordance with the limitations imposed under the Deeds, Securities Commission‟s Guidelines, the Capital Markets and Services Act

2007 and other applicable laws during the financial period then ended.

3.10 SOFT COMMISSIONS AND REBATES

During the period under review, PMB Investment Berhad received goods

and services from stockbroking companies in the form of computer hardware and software related to fund investment and market analysis used for and/or in support of the investment process of Fund Managers.

The Managers, its delegates and the Trustees do not receive any form of rebate or soft commission from or otherwise share in any commissions with, any broker during the the same period under review.


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3. LAPORAN PENGURUS

Bagi tempoh dua belas (12) bulan berakhir 31 Julai 2018 (1 Ogos 2017

hingga 31 Julai 2018).

3.1 ANALISA PRESTASI DANA 3.1.1 BANDINGAN PRESTASI DANA DENGAN OBJEKTIF DANA

PMB SSCF tidak dapat mencapai objektifnya, iaitu untuk memperolehi

pertumbuhan modal dalam jangkamasa sederhana hingga panjang. Berdasarkan data Lipper, pulangan Dana sejak ia mula beroperasi adalah

0.48%. Untuk tempoh setahun berakhir 31 Julai 2018, pulangan Dana susut 17.37%.

3.1.2 BANDINGAN PRESTASI DANA DENGAN TANDA ARAS Prestasi Dana berbanding tanda aras sejak ia mula beroperasi adalah seperti berikut:-

Graf di atas mencerminkan pergerakan pulangan Dana semenjak ia mula

beroperasi pada 6 Jun 2016 dan berakhir 31 Julai 2018. Sepanjang

tempoh tersebut, NAB seunit Dana meningkat 0.48% berbanding

penyusutan penanda aras sebanyak 8.98%.


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3.2 ANALISA PRESTASI DANA BERDASARKAN NILAI ASET BERSIH SEUNIT Sepanjang tempoh kajian berakhir 31 Julai 2018, NAB seunit Dana

menyusut sebanyak RM0.1056 atau -17.37% daripada RM0.6080 (xD)

pada 31 Julai 2017 kepada RM0.5024 (CD).

3.3 POLISI DAN STRATEGI PELABURAN Dana dilabur di antara 50% dan 99.5% dalam portfolio ekuiti dan sekuriti berkaitan ekuiti patuh Syariah syarikat bersaiz kecil yang tersenarai di

Bursa Malaysia dengan modal pasaran sekurang-kurangnya RM250 juta

dan tidak melebihi RM1 bilion (pada masa pembelian). Walau

bagaimanapun, Dana ini boleh melabur sehingga 20% daripada NAB Dana

dalam sekuriti syarikat patuh Syariah yang tersenarai di Bursa Malaysia

dengan modal pasaran melebihi RM1 bilion namun tidak melebihi RM7

bilion (pada masa pembelian). Dana menumpukan pelaburan ke atas syarikat yang mempunyai prospek pertumbuhan bagi tempoh sederhana

dan panjang, pendapatan yang berpatutan, pengurusan yang berkualiti dan tadbir urus yang baik, seperti dianalisa oleh Pengurus. Selaras dengan objektif Dana, pengurus Dana akan melakukan urusniaga bergantung kepada kedudukan pasaran ekuiti.

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

PECAHAN SEUNIT MENGIKUT KELAS ASET

31 Julai 2018 (%)

31 Julai 2017 (%)

Perubahan Peratus

Mata

Purata Pendedahan

Pelaburan (%)

Ekuiti 95.22 84.43 10.79 89.83

Deposit Islam dan lain-lain 4.78 15.57 (10.79) 10.17

Pada 31 Julai 2018, pegangan ekuiti Dana ialah sebanyak 95.22% berbanding 84.43% pada 31 Julai 2017. Baki 4.78% berada dalam deposit Islam dan lain-lain bentuk pelaburan patuh Syariah yang bersesuaian dengan polisi dan objektif Dana.


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3.4 PERUMPUKAN ASET-ASET DANA (SAMB.)

3.5 SUASANA EKONOMI NEGARA Keluaran Dalam Negara Kasar (KDNK) berkembang 4.5% pada suku

kedua 2018. Aktiviti sektor swasta terus menjadi pemacu utama

pertumbuhan ekonomi negara berikutan pengembangan kukuh dalam penggunaan dan pelaburan swasta pada suku tersebut. Dari segi penawaran, pertumbuhan telah terjejas oleh kejutan berkaitan komoditi. Sektor perlombongan merosot disebabkan terutamanya oleh gangguan

bekalan yang tidak dijangka, manakala sektor pertanian mengalami kekangan pengeluaran dan keadaan cuaca yang buruk. Namun, sektor-sektor ekonomi utama, khususnya sektor perkhidmatan dan perkilangan, terus menyokong pertumbuhan. Pada asas suku tahunan terlaras secara

bermusim, ekonomi negara meningkat 0.3% (S1 2018: 1.4%). Inflasi keseluruhan menurun kepada 1.3% pada suku kedua 2018 (S1 2018: 1.8%), mencerminkan terutamanya kesan daripada pelaksanaan

kadar GST sifar. Walau bagaimanapun, impak pelaksanaan GST sifar ini

telah diimbangi oleh inflasi pengangkutan yang lebih tinggi. Namun,

langkah menetapkan harga runcit petrol RON95 sejak 22 Mac 2018 telah

membantu membendung inflasi bahan api daripada terus meningkat pada suku tersebut.


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3.5 SUASANA EKONOMI NEGARA (SAMB.) Pertumbuhan dijangka mampan, disokong terutamanya oleh aktiviti sektor swasta. Keadaan pasaran pekerja yang positif dan pengembangan

kapasiti pengeluaran masing-masing akan terus menyokong penggunaan swasta dan pelaburan yang teguh. Meskipun inflasi keseluruhan diunjurkan sederhana, namun takat penurunannya akan bergantung pada kesan pindahan berikutan perubahan dasar cukai penggunaan. Inflasi

asas, yang tidak mengambil kira kesan perubahan dasar cukai penggunaan, dijangka kekal stabil secara relatif pada suku-suku akan datang melalui sokongan perbelanjaan sektor swasta yang mampan. Asas-asas makroekonomi Malaysia terus teguh lantas menyediakan

penampan yang diperlukan untuk menguruskan secara berkesan kemungkinan kejutan terhadap ekonomi.

Pertumbuhan Keluaran Dalam Negara Kasar Malaysia (KDNK) Untuk Suku Kedua 2018

Inflasi Secara keseluruhannya, inflasi berkembang sebanyak 2.6% untuk tempoh 12-bulan berakhir Jun 2018 berbanding 2.7% untuk tempoh yang sama tahun sebelumnya. Peningkatan inflasi dipacu oleh kenaikan dalam kumpulan

pengangkutan (+6.6%) dan makanan dan minuman bukan alkohol (+3.3%).

Indeks Pengeluaran Perindustrian (IPP) IPP meningkat sebanyak 1.1% pada bulan Jun 2018 berbanding bulan yang sama

tahun sebelumnya. Peningkatan pada bulan Jun 2018 disokong oleh pertumbuhan dalam indeks pembuatan (4.5%) dan elektrik (3.0%). Manakala, indeks perlombongan mencatatkan penyusutan sebanyak 9.4%.

Sektor 2018 2018 2017 Sektor 2018 2018 2017 Penawaran S2 S1 S2 Permintaan S2 S1 S2

Pertanian -2.5% +2.8% +5.9% Penggunaan Akhir Swasta

+8.0% +6.9% +7.1%

Pembinaan +4.7% +4.9% +8.3% Penggunaan Akhir Kerajaan

+3.1% +0.4% +3.3%

Perkhidmatan +6.5% +6.5% +6.3% Pembentukan Modal Tetap Kasar

+2.2% +0.1% +4.1%

Pembuatan +4.9% +5.3% +6.0% Eskport +2.0% +3.7% +9.4%

Perlombongan -2.2% +0.1% +0.1% Import +2.1% -2.0% +10.4%

KDNK +4.5% +5.4% +5.8% KDNK +4.5% +5.4% +5.8%


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3.5 SUASANA EKONOMI NEGARA (SAMB.) Perdagangan Luar Negara Untuk tempoh 12-bulan berakhir Jun 2018, imbangan dagangan Malaysia

mencatatkan kenaikan sebanyak 29.9%, mencecah nilai RM114.9 bilion. Jumlah perdagangan untuk tempoh 12 bulan berakhir Jun 2018 bernilai RM1,819.1 bilion

berbanding RM1,639.9 bilion yang dicatatkan dalam tempoh yang sama tahun

lepas. Untuk tempoh yang sama, jumlah eksport berkembang sebanyak 11.9%, mencecah nilai RM967.0 bilion manakala jumlah import berkembang sebanyak

9.9%, mencecah nilai RM852.1 bilion.

(Sumber: Portal Rasmi Jabatan Perangkaan Malaysia)

3.6 SUASANA BURSA SAHAM TEMPATAN SEMASA

Bagi tempoh setahun berakhir 31 Julai 2018, penanda aras iaitu FBM Small Cap Shariah Index (FBM SCSI) menyusut 2,779.55 mata atau

-17.47% kepada 13,133.81 manakala penanda aras utama Bursa Malaysia iaitu FBM KLCI meningkat 24.22 mata atau 1.38% kepada

1,784.25.

Bagi tempoh tersebut, FBM SCSI mencatat paras tertinggi 16,316.91 pada

8 Januari 2018 dan paras terendah 12,055.68 pada 11 Julai 2018. Sementara itu, FBM KLCI mencatat paras tertinggi 1,895.18 pada 19 April

2018 manakala paras terendah pula ialah 1,663.86 yang dicatat pada 06 Julai 2018. Julat pergerakan FBM SCSI untuk tempoh tersebut ialah

4,261.23 mata berbanding 3,286.75 mata pada tempoh yang sama tahun sebelumnya.

Dalam tempoh kajian, pasaran saham tempatan kelihatan berada di dalam

mod konsolidasi menjelang pertengahan suku ketiga 2017 walaupun data-data ekonomi tempatan yang diumumkan lebih baik dari jangkaan. Hal ini

disebabkan oleh keputusan kewangan syarikat-syarikat tersenarai di

Bursa Malaysia untuk suku kedua 2017 tampil kurang baik dari jangkaan.

Situasi ini diburukkan lagi oleh ketidakstabilan geopolitik dunia ekoran dari ketidaksefahaman di antara dua pemimpin kuasa nuklear besar dunia

serta kecenderungan Amerika Syarikat untuk meningkatkan kadar faedah pada kadar yang lebih cepat berikutan momentum ekonomi Amerika

Syarikat yang dijangka akan terus beransur pulih. Hal-hal ini telah meningkatkan kadar ketidakpastian dalam pasaran saham dan telah

menyebabkan pelabur asing mula mengurangkan wajaran di dalam pasaran saham tempatan dengan jumlah pengaliran keluar bersih dana

sebanyak RM558.5 juta sepanjang suku ketiga 2017.

Pelabur asing terus menerus mengurangkan wajaran di dalam pasaran

saham Malaysia sepanjang Oktober 2017 dan November 2017 dengan jumlah pengeluaran bersih sebanyak RM241.7 juta ekoran dari data-data

ekonomi negara China yang kurang memberangsangkan.


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3.6 SUASANA BURSA SAHAM TEMPATAN SEMASA (SAMB.) Lantaran dari kebergantungan perdagangan Malaysia terhadap China di mana 16.3% daripada jumlah perdagangan sepanjang sebelas bulan

pertama 2017 adalah dengan China, sebarang tanda-tanda kelembapan ekonomi China boleh meningkatkan kerisauan pelabur-pelabur terhadap

kesinambungan pertumbuhan ekonomi Malaysia. Pengeluaran dana asing sepanjang Oktober dan November 2017 juga kelihatan lebih bersifat

“pengambilan untung” ekoran dari pengukuhan Ringgit Malaysia. Sepanjang tempoh sebelas bulan berakhir 30 November 2017, kadar

tukaran matawang Ringgit Malaysia berbanding US Dollar telah meningkat sebanyak 4.7%.

Menjelang bulan Disember 2017, pasaran saham tempatan kelihatan

meningkat secara berkala ekoran dari kemasukan semula pelabur-pelabur

asing ke pasaran saham tempatan dengan jumlah kemasukan bersih sebanyak RM959.9 juta. Keadaan pasaran saham juga kembali pulih

menjelang minggu terakhir 2017 lantaran dari aktiviti “menghias akaun”. Pelabur-pelabur asing kelihatan terus menerus masuk ke pasaran saham

tempatan sepanjang bulan Januari 2018 dengan jumlah kemasukan bersih sebanyak RM3.3 bilion. Keaktifan pelabur asing di pasaran saham

sepanjang bulan Januari telah menyebabkan pasaran saham tempatan meningkat ke paras tertinggi yang pernah dicapai lebih 3 tahun yang lalu.

Namun demikian, keadaan ini berubah sepanjang bulan Februari dan Mac

2018 di mana kemerosotan pasaran Amerika Syarikat serta ketidak

pastian terhadap dasar monetari yang akan diambil oleh pengerusi baru Rizab Persekutuan Amerika Syarikat, Jerome Powell, telah menyebabkan

pelabur berada dalam keadaan berjaga-jaga. Hal ini bukan sahaja mendatangkan masalah di pasaran saham tempatan, malah pasaran

serantau juga berhadapan dengan masalah yang sama. Keadaan ini ditambah burukkan lagi oleh perang perdagangan di antara Amerika

Syarikat dan China di mana kedua-dua kuasa ekonomi besar dunia kelihatan bersaing untuk melumpuhkan ekonomi satu sama lain. Pelabur

kelihatan terus berada dalam keadaan berjaga-jaga sepanjang bulan April 2018 setelah Parlimen Malaysia dibubarkan ekoran daripada

ketidakpastian terhadap kesinambungan tampuk kepimpinan negara. Berikutan kemenangan mengejut Pakatan Harapan di dalam Pilihan Raya

Umum ke-14 yang berlangsung pada 9 Mei 2018, Indeks FBM SCSI dan Indeks FBMSHA masing-masing menurun kepada paras terendah

12,055.68 (11 Julai 2018) dan 11,888.56 (28 Jun 2018) berbanding paras 13,152.25 (FBM SCSI) dan 13,075.36 (FBMSHA) yang dicatatkan pada 8

Mei 2018. Penurunan sebanyak 8.3% dan 9.1% itu didorong oleh jualan pelabur-pelabur asing dengan jumlah pengeluaran bersih sebanyak

RM9.6 bilion. Keadaan pasaran saham kelihatan beransur pulih sepanjang bulan Julai 2018, dengan peningkatan bulan-ke-bulan

sebanyak 6.5%, 5.9% dan 5.5% masing-masing bagi FBM SCSI, FBMSHA dan FBM KLCI, di dorong oleh sokongan dari pelabur-pelabur institusi dan

runcit apabila secara teknikal pasaran berada di dalam keadaan terlebih

jual (“oversold”) pada awal bulan Julai.

Dalam keadaan pasaran yang tidak menentu ini, berdasarkan sumber Lipper, NAB seunit Dana menyusut 17.37% bagi tempoh setahun berakhir

31 Julai 2018.


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3.7 SUASANA PASARAN WANG TEMPATAN SEMASA Dalam tempoh setahun berakhir 31 Julai 2018, Jawatankuasa Dasar Monetari (Monetary Policy Committee, MPC) Bank Negara Malaysia (BNM)

membuat keputusan untuk menaikkan Kadar Dasar Semalaman (Overnight Policy Rate, OPR) kepada kadar 3.25% setahun pada 25

Januari 2018 dan mengekalkan kadar yang sama di mesyuarat yang berlangsung pada 7 Mac 2018, 10 Mei 2018 dan 11 Julai 2018.

Menurut BNM, ekonomi dunia terus berkembang dan momentum

pertumbuhan perdagangan global kekal kukuh walaupun prestasi pertumbuhan yang berbeza merentas negara. Peningkatan pendapatan

dan sokongan dasar di negara-negara maju, khususnya di Amerika Syarikat, akan terus memacu pertumbuhan. Pertumbuhan di Asia akan

disokong oleh aktiviti dalam negara dan permintaan luar negara yang

kukuh. Walau bagaimanapun, terdapat perkembangan yang menunjukkan risiko terhadap prospek pertumbuhan. Ketegangan perdagangan global

yang semakin ketara boleh mempengaruhi sentimen dan memberikan kesan terhadap perdagangan, pelaburan dan penggunaan. Tambahan

lagi, berikutan langkah negara-negara maju mengembalikan dasar monetari ke tahap yang wajar, jangkaan dan sentimen pelabur yang

berubah-ubah boleh mengakibatkan aliran keluar modal yang berterusan dan pelarasan pasaran kewangan dalam beberapa ekonomi sedang pesat

membangun.

Ekonomi Malaysia terus berkembang pada separuh tahun pertama 2018,

disokong oleh aktiviti sektor swasta serta rangsangan tambahan daripada eksport bersih. Prestasi pertumbuhan yang positif dijangka terus mampan,

didorong oleh permintaan dalam dan luar negara. Penggunaan swasta akan disokong oleh peningkatan yang berterusan dalam upah dan guna

tenaga, dengan sokongan tambahan daripada perbelanjaan isi rumah yang lebih tinggi ekoran kelepasan cukai. Aktiviti pelaburan dijangka

mendapat sokongan daripada penambahan kapasiti pengeluaran, terutamanya oleh industri berorientasikan eksport dan projek infrastruktur

yang sedang dilaksanakan khususnya dalam subsektor pengangkutan dan utiliti. Sektor luaran akan terus mendapat manfaat daripada momentum

pertumbuhan global yang terus mampan. Prospek pertumbuhan negara akan menjadi bertambah baik apabila dasar dalam negara yang semakin

jelas pada bulan-bulan yang akan datang. Secara keseluruhan, ekonomi

Malaysia dijangka terus berada pada landasan pertumbuhan yang kukuh.

Inflasi keseluruhan bagi tahun 2018 dijangka lebih rendah daripada unjuran yang dibuat sebelum ini selepas mengambil kira kesan langkah-

langkah dasar baru-baru ini terhadap faktor kos domestik. Walau bagaimanapun, kesan langkah-langkah tersebut ke atas inflasi dijangka

bersifat sementara. Inflasi keseluruhan mungkin mencatat pertumbuhan negatif dalam beberapa bulan dan kekal rendah pada separuh pertama

tahun 2019 sebelum meningkat semula berikutan luputnya kesan faktor-faktor sementara ini. Namun begitu, inflasi teras dijangka kekal stabil

secara relatif, sejajar dengan permintaan dalam negara yang mampan.


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3.7 SUASANA PASARAN WANG TEMPATAN SEMASA (SAMB.) Prospek ekonomi dalam negara yang positif, sektor kewangan yang teguh dan lebihan akaun semasa imbangan pembayaran yang semakin

meningkat akan terus menyokong asas-asas ekonomi Malaysia. Pasaran kewangan domestik kekal berdaya tahan meskipun terdapat aliran keluar

portfolio bukan pemastautin. Kadar pertukaran Ringgit Malaysia akan lebih mencerminkan asas-asas ekonomi apabila ketidakpastian luaran dan

domestik berkurang. Meskipun terdapat volatiliti pasaran kewangan yang ketara, keadaan monetari dan kewangan domestik terus menyokong

pertumbuhan ekonomi. Operasi monetari BNM terus memastikan bahawa terdapat mudah tunai yang mencukupi bagi menyokong pasaran wang

dan pertukaran asing serta aktiviti pengantaraan untuk berfungsi dengan teratur.

Pada kadar semasa OPR, tahap akomodatif dasar monetari adalah sejajar dengan pendirian dasar yang ditetapkan. MPC akan terus memantau dan

menilai imbangan risiko berhubung dengan prospek pertumbuhan domestik dan inflasi.

3.8 PENGAGIHAN PENDAPATAN/TERBITAN UNIT PECAHAN Tiada pengagihan pendapatan dan/atau terbitan unit pecahan

dicadangkan bagi tempoh kewangan berakhir 31 Julai 2018.

3.9 KEPENTINGAN PEMEGANG-PEMEGANG UNIT Sepanjang tempoh kajian, tiada sebarang kejadian yang menjejaskan

kepentingan Pemegang-Pemegang Unit selain daripada urusniaga-urusniaga yang dijalankan selaras dengan Suratikatan Amanah,

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

3.10 REBAT DAN KOMISEN RINGAN Dalam tempoh di bawah tinjauan, PMB Investment Berhad telah menerima

barangan dan perkhidmatan daripada syarikat broker saham dalam bentuk perkakasan dan perisian komputer yang berkaitan dengan dana

pelaburan dan analisa pasaran yang digunakan untuk dan/atau

menyokong proses pelaburan Pengurus Dana. Pengurus, delegasi dan Pemegang Amanah kami tidak menerima atau berkongsi sebarang rebat

atau komisen ringan daripada mana-mana broker sepanjang tempoh yang sama dalam kajian.

Nota: Laporan ini telah diterjemahkan daripada laporan asal (dalam

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


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4. TRUSTEE’S REPORT To the Unit Holders of PMB SHARIAH SMALL-CAP FUND

We, CIMB ISLAMIC TRUSTEE BERHAD, being the Trustee of PMB SHARIAH SMALL-

CAP FUND (”the Fund”) are of the opinion that PMB INVESTMENT BERHAD (”the

Manager”), acting in the capacity as Manager of the Fund, has fulfilled its duties in

the following manner for the financial year ended 31 July 2018.

a) The Fund has been managed in accordance with the limitations imposed on

the investment powers of the Manager under the Deed, the Securities

Commission Malaysia‟s Guidelines on Unit Trust Funds, the Capital

Markets and Services Act 2007 (as amended from time to time) and other

applicable laws;

b) Valuation and pricing for the Fund has been carried out in accordance with

the Deed and relevant regulatory requirements; and

c) Creation and cancellation of units have been carried out in accordance with

the Deed and relevant regulatory requirements.

For and on behalf of

CIMB ISLAMIC TRUSTEE BERHAD (167913-M)

LEE KOOI YOKE Chief Operating Officer

Kuala Lumpur, Malaysia 24 September 2018


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5. SHARIAH ADVISOR’S REPORT To the Unit Holders of PMB SHARIAH SMALL-CAP FUND

We have acted as the Shariah Adviser of PMB INVESTMENT BERHAD, as Manager

of PMB SHARIAH SMALL-CAP FUND for the financial year ended 31 July 2018 .

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

fund manager, PMB INVESTMENT BERHAD as well as the provisions of its Deed

dated 28 July 2015 which had been registered with Securities Commission on 6

April 2016 are in accordance with Shariah.

In our opinion, based on the periodic reports submitted to us and information

received, PMB INVESTMENT BERHAD has managed and administered PMB

SHARIAH SMALL-CAP FUND in accordance with Shariah Principles and has

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

Advisory Council of Securities Commission of Malaysia (SACSC) for the financial

year ended 31 July 2018.

We also confirm that the investment portfolios of PMB SHARIAH SMALL-CAP FUND

comprises securities which have been classified as Shariah-compliant by the

SACSC, and that all deposits and money market instruments are those of Shariah

products of financial institutions licensed by Bank Negara Malaysia.

For and on behalf of BIMB SECURITIES SDN BHD

IR. DR. MUHAMAD FUAD ABDULLAH Designated Shariah Person KUALA LUMPUR 19 September 2018


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6. STATEMENT BY MANAGER Dear Unit Holders PMB SHARIAH SMALL-CAP FUND

We, NAJMI BIN HAJI MOHAMED and NIK MOHAMED ZAKI BIN NIK YUSOFF, being

two of the directors of PMB INVESTMENT BERHAD, do hereby state that in the

opinion of the Manager, the financial statements set out give a true and fair view

of the financial position of the Fund as at 31 July 2018 and of its financial

performance, changes in equity and cash flow of the Fund for the financial year

ended 31 July 2018 in accordance with Malaysian Financial Reporting Standards

(MFRSs), International Financial Reporting Standards (IFRSs) and modified in

accordance with the Guidelines on Unit Trust Funds by the Securities

Commission Malaysia.

For and on behalf of

PMB INVESTMENT BERHAD As Manager of PMB SHARIAH SMALL-CAP FUND

NAJMI BIN HAJI MOHAMED Director

NIK MOHAMED ZAKI BIN NIK YUSOFF Director KUALA LUMPUR 6 September 2018


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

We have audited the financial statements of PMB SHARIAH SMALL-CAP FUND, which comprise the statement of financial position as at 31 July 2018, and statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.

In our opinion, the Fund‟s financial statements give a true and fair view of the financial position of the Fund as at 31 July 2018 and of its financial performance,

changes in equity and cash flows for the financial year ended 31 July 2018 in accordance with Malaysian Financial Reporting Standards (MFRSs) and International Financial Reporting Standards (IFRSs). We also verified the

computation of the Management Expenses Ratio and Portfolio Turnover Ratio as disclosed in notes 16 and 17 of the financial statements are reasonable. The schedule have been drawn primarily from the accounting records and other records of the Fund which have been subjected to tests and other audit procedures during our review of the Fund‟s financial statements for the financial

year ended 31 July 2018. In our opinion, the informations as a whole, have been presented fairly if deemed in all respects in respect of the financial statements. Basis for Opinion We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors‟ Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence and Other Ethical Responsibilities We are independent of the Fund in accordance with the By-Laws of the Malaysian

Institute of Accountants (“By-Laws”) and the International Ethics Standards Board

for Accountants‟ Code of Ethics for Professional Accountants (“IESBA Code”) and

we have fulfilled our other ethical responsibilities in accordance with the By-Laws

and the IESBA Code.

Information Other than the Financial Statements and Auditor’s Report Thereon The Manager of the Fund is responsible for the other information. The other information comprises the Manager‟s Report and Statement by Manager, but does not include the financial statements of the Fund and our auditors‟ report thereon.

Our opinion on the financial statements of the Fund does not cover the other information and we do not express any form of assurance conclusion thereon.


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Auditors’ Report to the Unitholders of PMB SHARIAH SMALL-CAP FUND (CONT.) Information Other than the Financial Statements and Auditor’s Report Thereon

In connection with our audit of the financial statements of the Fund, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the

Fund or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material

misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Manager for the Financial Statements

The Manager of the Fund is responsible for the preparation of financial statements of the Fund that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the Securities Commission‟s Guidelines on Unit Trust Funds in

Malaysia. The Manager is also responsible for such internal control as the Manager determine is necessary to enable the preparation of financial statements of the Fund that are free from material misstatement, whether due to fraud or error. The Trustee is responsible for ensuring that the Manager maintains proper

accounting and other records as are necessary to enable true and fair presentation of these financial statements. Auditors’ Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements of the Fund as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors‟ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an

audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with approved standards on auditing in Malaysia

and International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial

statements of the Fund, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that

is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal

control.


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Auditors’ Report to the Unitholders of PMB SHARIAH SMALL-CAP FUND (CONT.) Auditors’ Responsibility for the Audit of the Financial Statements (Cont.)

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not

for the purpose of expressing an opinion on the effectiveness of the Fund‟s internal control.

• Evaluate the appropriateness of accounting policies used and the

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

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

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

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

Other Matters

This report is made solely to the unit holders of the Fund, as a body, in accordance with the Securities Commission‟s Guidelines on Unit Trust in

Malaysia and for no other purposes. We do not assume responsibility to any other person for the contents of this report.

JAMAL, AMIN & PARTNERS (No. AF 1067)

Chartered Accountants

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

Chartered Accountants

6 September 2018 KUALA LUMPUR


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8. FINANCIAL STATEMENT

STATEMENT OF FINANCIAL POSITION

AS AT 31 JULY 2018

NOTE 2018 2017 RM RM ASSETS INVESTMENT 4

Quoted shares in Malaysia 24,752,015 21,179,771

Islamic deposits with licenced financial institutions in Malaysia

5 1,103,241 3,691,728

25,855,256 24,871,499

OTHER ASSETS

Amount owing by Manager 6 180,253 1,180,361

Amount owing by stockbroking

companies 2,168,452

-

Profit receivable form lslamic deposits 191 1,228

Dividend receivable - 23,018

Al-Wadiah savings 143,783 243,854

2,492,679 1,448,461

TOTAL ASSETS 28,347,935 26,319,960

LIABILITIES

Amount owing to Trustee 1,115 755

Amount owing to stockbroking

companies 1,485,415

2,133,513

Other payables and accruals 4,700 5,603

TOTAL LIABILITIES 1,491,230 2,139,871

EQUITY

Unit holders‟ capital 8 30,185,413 22,586,439

Retained (loss)/profit (3,328,708) 1,593,650

TOTAL EQUITY 26,856,705 24,180,089

TOTAL EQUITY AND LIABILITIES 28,347,935 26,319,960

UNITS IN CIRCULATION 8 53,629,000 39,922,000

NET ASSET VALUE PER UNIT (RM) - XD 9 0.5008 0.6057


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STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 JULY 2018

NOTE

2018

Period from

6.6.2016 until 31.7.2017

RM RM

INVESTMENT INCOME

Profit from Islamic deposits 61,035 16,527

Hibah from Al-Wadiah savings 1,024 726

Gross Dividend 332,682 101,901

Other Income 1,063 -

Loss from sale of investment (3,951,720) (200,007)

Unrealised (loss)/profit on changes in fair value of investment

10 (736,538) 1,849,298

(4,292,454) 1,768,445

EXPENSES

Management Fee 11 377,537 77,612

Trustee‟s Fee 12 12,584 2,587

Audit Fee 2,500 2,500

Tax Agent‟s Fee 2,200 700

Stockbroking‟s fee and other transaction costs

13 202,567 81,177

Good and services taxation 27,259 8,466

Administrative expenses 5,257 1,753

629,904 174,795

(LOSS)/PROFIT BEFORE TAXATION (4,922,358) 1,593,650

Taxation 14 - -

(LOSS)/PROFIT AFTER TAXATION (4,922,358) 1,593,650

(LOSS)/PROFIT AFTER TAXATION IS MADE UP AS FOLLOWS:

REALISED LOSS (4,185,820) (255,648)

UNREALISED (LOSS)/PROFIT 10 (736,538) 1,849,298

(4,922,358) 1,593,650


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STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 JULY 2018

NOTE Unitholders ̀

Capital Retained

Profit/(Loss) Total

Equity RM RM RM

Balance as at 6 June 2016 - - -

Realised loss - (255,648) (255,648)

Unrealised profit - 1,849,298 1,849,298

Creation of units 23,143,393 - 23,143,393

Cancellation of units (556,954) - (556,954)

Balance as at 31 July 2017 22,586,439 1,593,650 24,180,089

Balance as at 1 August 2017 22,586,439 1,593,650 24,180,089

Realised loss - (4,185,820) (4,185,820)

Unrealised loss - (736,538) (736,538)

Creation of units 17,223,394 - 17,223,394

Cancellation of units (9,624,420) - (9,624,420)

Balance as at 31 July 2018 30,185,413 (3,328,708) 26,856,705


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STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 JULY 2018

2018

Period from

6.6.2016 until 31.7.2017

RM RM

CASH FLOWS FROM INVESTING AND OPERATING ACTIVITIES

Proceed from sale of investment 29,847,131 2,760,581

Purchase of investments (40,924,183) (20,157,549)

Dividend received 355,700 78,884

Profit from Islamic deposits 62,073 15,299

Hibah from Al-Wadiah savings 1,024 726

Receipt from other income 1,063 -

Management fee paid (367,735) (53,970)

Trustee fee paid (12,225) (1,832)

Payment for Audit fee (2,500) -

Payment of Tax agent fee (1,700) -

Payment of other expenses (236,486) (89,993)

Net cash used in investing and

operating activities (11,277,838)

(17,447,854)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from creation of units 18,212,700 21,940,390

Payment of cancellation of units (9,623,420) (556,954)

Net cash generated from financing activities

8,589,280

21,383,436

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS

(2,688,558)

3,935,582

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR/PERIOD

3,935,582

-

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR/PERIOD

1,247,024

3,935,582

CASH AND CASH EQUIVALENTS COMPRISE

Al-Wadiah Savings 143,783 243,854

Islamic Deposits 1,103,241 3,691,728

1,247,024 3,935,582


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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 JULY 2018

1. THE FUND, THE MANAGER AND PRINCIPAL ACTIVITIES

PMB SHARIAH SMALL-CAP FUND is managed by PMB INVESTMENT

BERHAD, was launched on 16 May 2016 as stated in the Master Deed dated on 28 July 2015 and has been registered with Securities Commission of Malaysia on 6 April 2016. This Fund started its operation

on 6 June 2016 and will continue to operate until it is terminated or dissolved in accordance with the provisions of the Deed of Trust and the Capital Market and Services Act 2007.

The main activities of PMB SHARIAH SMALL-CAP FUND is marketable securities transaction in which the investment is made in the “Permitted

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

Bursa Malaysia and in money market instruments approved by the Shariah Principles.

The Manager is a company incorporated in Malaysia and is a wholly owned by Pelaburan MARA Berhad. The principal activity of the Manager is the management of Unit Trust Funds and Corporate Funds.

2. OBJECTIVES AND POLICIES OF FINANCIAL RISK MANAGEMENT

The Unit Trust Fund operations are exposed to several risks including equity market risk, stock specific risk, equity-related securities risk, Shariah status reclassification risk and liquidity risk. Financial risk

management is carried out through the system of internal control and investment restrictions outlined in the Guidelines on Unit Trust Funds by the Securities Commission of Malaysia and based on Shariah Principles.

(a) Equity Market Risk The performance of the Fund is subject to the volatility of the stock market which is influenced by the changes in the economic and political climate, profit rate, international stock market performance

and regulatory policies. The very nature of a Shariah-compliant Unit Trust Fund, however, helps mitigate this risk because Fund would generally hold a well-diversified portfolio of Shariah-compliant

securities from different market sectors that the collapse of any Shariah-compliant security or any one market sector would not impact too greatly on the value of the Fund.

The table below shows the effects on the net asset value of the Fund at the reporting date due to the possible change in equity price with all other variables held constant:

Changes in Equity Price

Impact on distributed net asset value

% RM

+5 / -5 1,237,601 / (1,237,601)


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

(b) Stock Specific Risk Specific risk are the risks inherent in investing in companies

experiencing changes in business performance, taste and consumer

demand, legal action and management practices. This risk can be mitigated through diversification in investments and investment sanctions outlined by the Unit Trust Fund Guidelines and based on

Shariah Principles.

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

underlying equities that the securities are related to. Any upward

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

equity-related securities will affect the value of the Fund.

(d) Shariah Status Reclassification Risk This risk refers to the risk that the currently held Shariah-compliant

equities in the Fund may be reclassified as Shariah non-compliant in the periodic review of the equities by the SAC, the Shariah adviser or the Shariah boards of the relevant Islamic indices. If this occurs, the

Manager will take the necessary steps to dispose such equities. There may be opportunity loss to the Fund due to the Fund not being allowed to retain the excess capital gains derived from the disposal of

the Shariah non-compliant equities. In such event, the Fund should:-

i. dispose of the securities within one month if the value of the

securities exceeds or is equal to the investment cost on the date of announcement of the List of Shariah-compliant securities by the SAC. The Fund is allowed to keep dividends received and

capital gain from the disposal of the securities up to the date of announcement of the List of Shariah-compliant securities by the SAC. However, any dividends received and excess capital gain

from the disposal of Shariah non-compliant securities after the date of announcement of the List Shariah-compliant securities by SAC should be channeled to baitulmal and/or approved

charitable bodies;

ii. hold the respective securities if the market price of the said

securities is below the investment cost, until the total subsequent dividends received (if any) and the market price or value of the securities is equal to the cost of investment at which time

disposal has to take place within a month of attaining investment cost; or

iii. dispose of the securities at the price lower than the investment

cost which will result the decrease in the Fund‟s value.


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

(e) Liquidity Risk Liquidity risk is the risk that the Fund will encounter difficulty in

meeting its financial obligations. Generally, all investment are subject to a certain degree of liquidity risk depending on the nature of the investment instruments, market, sector and other factors. For the purpose of the Fund, the Fund Manager will attempt to balance the entire portfolio by investing in a mix of assets with satisfactory trading volume and those that occasionally could encounter poor liquidity. This is expected to reduce the risks for the entire portfolio without limiting the Fund‟s growth potentials.

The Fund maintains sufficient level of Islamic liquid assets, after

consultation with the Trustee, to meet anticipated payments and cancellations of unit by unit holders. Islamic liquid assets comprise cash, Islamic deposits with licensed financial institutions and other Shariah-compliant instruments which are capable of being converted into cash within 7 days.

The table below summarises the Fund‟s financial liabilities into

relevant maturity grouping based on the remaining period as at the statement of financial position date to the contractual maturity date. The amounts in the table are the contractual undiscounted cash flows. 2018

BETWEEN Less than

1 month 1 month to

1 year

Total Amount owing to Trustee 1,115 - 1,115

Amount owing to stockbroking companies

1,485,415

-

1,485,415

Other payables and accruals

- 4,700 4,700

Contractual cash outflows

1,486,530 4,700 1,491,230 2017

BETWEEN Less than

1 month 1 month to

1 year

Total Amount owing to Trustee 755 - 755

Amount owing to stockbroking companies

2,133,513

-

2,133,513

Other payables and accruals

- 5,603 5,603

Contractual cash outflows

2,134,268 5,603 2,139,871


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3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation The financial statements of the Fund have been prepared under the

historical cost convention and modified to include other bases of valuation as disclosed in other sections under significant accounting

policies and in compliance with the Malaysian Financial Reporting

Standards (MFRSs), International Financial Reporting Standards

(IFRSs) and Guidelines on Unit Trust Funds by the Securities

Commission of Malaysia.

The accounting policies adopted for the financial year ended 31 July

2018 are consistent with those adopted in the financial statements for financial year ended 31 July 2017.

The Fund has not yet adopted the following MFRS that have been

issued by the Malaysian Accounting Standards Board (MASB) but are

not yet effective:-

Effective date

MFRS 9

Financial Instruments (IFRS 9

issued by IASB in July 2014)

1 January 2018

MFRS 15

Revenue from Contracts with

Customers

1 January 2018

The adoption of the above standards is not expected to have any

material impact on the Fund‟s financial statements.

(b) Quoted Share Quoted shares are valued based on bid price at close of the market on Bursa Malaysia on the reporting date. This is to comply with

Malaysian Financial Reporting Standards - MFRS 139.

However, these unit trust is subject to the Trust Deed whereby quoted shares are valued at the market closing price on Bursa Malaysia at the reporting date. Accordingly, for any unit trust transactions at this reporting date, the actual sales and purchase

price of the unit trust is set out in note 9.

(c) Dividend Income The amount of dividend from the investment is determined on an accrual basis once the company‟s share price is recorded ”xD” (without dividend) on Bursa Malaysia. The single tier system was

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


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3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

(d) Profit from Islamic Deposits

The profit from Islamic deposits is on accrual basis. The profit received by the Fund was derived from Malaysia and credited by any

bank or financial institution licensed under the Banking and Financial Institutions Act 1989 or Islamic Banking Act 1983 which are exempt from tax according Income Tax Act 1967 (ITA 1967).

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

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

Fund and are not subject to tax.

(f) Unrealised (Loss)/Profit Unrealised profit/(loss) represent (loss)/profit as a result of changes in

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

(g) Creation and Cancellation of Units

Proceeds from creation of units and payment of cancellation of units

are based on the market value of the units comprising the share of capital and the portion of income at the date of the invention or disposition.

(h) Distribution Equalisation

Distribution equalisation is accounted for on the date of issue and depreciation based on the average amount of distributable income

included in the unit price and disposals.

(i) Cash and Cash Equivalents

Cash and cash equivalents comprise of Islamic deposits and Al-Wadiah savings with banks and licensed financial institutions where

such savings are based on Shariah Principles.

(j) Financial Instruments The financial assets and liablities set out in the Statement of

Financial Position include cash in banks, investment in quoted shares, deposits in financial institutions, debtors and creditors. The accounting policies on those items are stated in their respective

accounting policies. Financial instruments are classified as assets or liabilities based on

the details of the contractual aggreements. Gain from Islamic deposits and Al-Wadiah savings, dividends, gains or losses relating to financial instruments classified as assets, are reported as income

or loss from investments.


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4. INVESTMENT

Details are as follows:

2018 2017 RM RM

(a) Quoted shares @ cost 23,639,255 19,330,473

Surplus 1,112,760 1,849,298

Market Value 24,752,015 21,179,771

(b) Islamic Deposit 1,103,241 3,691,728

Total investments 25,855,256 24,871,499

The list of investments are as in Schedule A.

5. ISLAMIC DEPOSITS Islamic deposits includes fixed deposits based on Shariah Principles in licensed financial institutions as follows:-

2018 2017 RM RM

(a) Islamic Banks - 2,089,900

(b) Investment Bank 1,103,241 1,601,828

1,103,241 3,691,728

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

Average

Profit Rate %

Average Maturity Period Days

(a) Islamic Banks - - (b) Investment Bank 4.10 3

6. AMOUNT OWING BY MANAGER 2018 2017 RM RM

Creation of unit receivable 213,697 1,203,003

Manager‟s fee accrued (33,444) (22,642)

180,253 1,180,361


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7. DISTRIBUTION

No income distribution to unit holders is recommended for the financial year ended 31 July 2018 (2017: No income distribution had been

declared).

8. UNIT HOLDERS’ CAPITAL

2018 2017

Unit RM Unit RM

Balance brought forward

39,922,000 22,586,439 - -

Creation of units during the year

29,630,000 17,223,394 40,925,000 23,143,393

69,552,000 39,809,833 40,925,000 23,143,393

Cancellation of units during the year

(15,923,000 ) (9,624,420 ) (1,003,000 ) (556,954)

Balance carried forward

53,629,000 30,185,413 39,922,000 22,586,439

9. NET ASSET VALUE

Net Asset Value is derived after deducting the total labilities of the Fund from the Fund‟s total assets.

To comply with MFRS 139 in preparing this Financial Statements, quoted

shares have been valued at the bid price at the market close on Bursa Malaysia at the reporting date as compared to the Deed of Trust which sets market value at the last quoted price on Bursa Malaysia for the

determination of the sales and purchase price of unit trust at that date. Accordingly, on 31 July 2018 and 31 July 2017 the adjustment of the net asset value per unit for the purpose of distribution to the unit holders of the

unit trust as at the above dates is as follows:


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9. NET ASSET VALUE (CONT.)

2018 2017

RM RM/Unit RM RM/Unit

Net asset value per unit for

the distribution of unit trust 26,940,939 0.5024 24,271,570 0.6080

Net asset value difference

when complying with MFRS

139

84,234 0.0016 91,481 0.0023

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

26,856,705 0.5008 24,180,089 0.6057

10. UNREALISED (LOSS)/PROFIT ON CHANGES IN FAIR VALUE OF INVESTMENT

2018 RM

2017

RM

Unrealised profit on quoted shares 1,112,760 1,849,298

Total unrealised profit 1,112,760 1,849,298

Less: Unrealised profit of previous year

1,849,298 -

(736,538) 1,849,298

11. MANAGEMENT FEE

The fee paid to the Manager, PMB INVESTMENT BERHAD is computed on a

daily basis at 1.5% per annum on the Net Asset Value before deducting Management fee and Trustee‟s fee for that particular day.

12. TRUSTEE’S FEE

The fee paid to the Trustee, CIMB ISLAMIC TRUSTEE BERHAD is computed

on a daily basis at 0.05% per annum on the Net Asset Value before deducting Management fee and Trustee‟s fee for that particular day.


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13. TRANSACTIONS WITH BROKER/DEALER (01/08/2017 – 31/07/2018)

Name of Broker/Dealer

Transaction Value

RM

%

Commission & Fee

RM

%

Jupiter Securities Sdn. Bhd. 26,757,568 37.11 67,857 33.50

Hong Leong Investment Bank Bhd.

7,650,539 10.61 20,402 10.07

Maybank Investment Bank Bhd.

5,670,244 7.87 17,346 8.56

Affin Hwang Investment Bank Bhd.

5,578,187 7.74 17,750 8.76

KAF-Seagroatt & Campbell

Securities Sdn. Bhd. 5,026,823 6.97 15,061 7.44

Kenanga Investment Bank

Bhd. 4,851,374 6.73 15,321 7.56

Public Investment Bank Bhd. 4,542,999 6.30 12,227 6.04

Alliance Investment Bank Bhd.

3,703,070 5.14 10,552 5.21

BIMB Securities Sdn. Bhd. 2,801,711 3.89 9,014 4.45

RHB Investment Bank Bhd. 2,192,778 3.04 7,277 3.59

AmInvestment Bank Bhd. 1,891,125 2.62 4,833 2.39

MIDF Amanah Investment

Bank Bhd. 1,328,780 1.84 4,596 2.27

Macquarie Capital Securities

(M) Sdn. Bhd. 99,970 0.14 331 0.16

Total Transaction 72,095,168 100.00 202,567 100.00


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14. TAXATION 2018

RM 2017

RM

Taxation for the year - -

Taxes are imposed at a rate of 24% on dividend chargeable income less

allowance allowed at 10%.

The reconciliation between tax expenses and accounting profit multiplied by

24% tax rates for the financial year ended 31 July 2018 and 31 July 2017 are as follows:-

2018 RM

2017

RM

(Loss)/Profit before taxation (4,922,358) 1,593,650

Taxation at the rate of 24% 1,181,366 (382,476)

Tax effect of income not subject to tax (1,030,189) 424,427

Tax effect of expenses not allowed (151,177) (41,951)

Taxation for the year - -

15. MANAGER’S AND DIRECTORS’ INTERESTS

The details of the interests of the Manager‟s and the Directors‟ of the company in the Fund are as follows:-

2018 2017

(a) Unit Holding

PMB INVESTMENT BERHAD 25,078.73 units worth

RM12,599.55

38,111.00 units

worth

RM23,171.49

Directors Nil Nil

(b) Expenses

Management fee paid and accrued

RM377,537 RM77,612

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


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16. MANAGEMENT EXPENSES RATIO (MER)

MER is calculated as follows:- 2018 2017

MER =

Fees + Expenses incurred x 100

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

1.70%

2.10%

The ratio of total fees and expenses of the Fund over the daily average net asset value of the Fund for the financial year ending is reasonable.

17. PORTFOLIO TURNOVER RATIO (PTR)

PTR is calculated as follows:

2018 2017

PTR =

(Total acquisition + Total Disposals)/2

Average net asset value of the

Fund calculated on a daily basis

1.44 times

2.82 times

The turnover ratio of the average amount of the purchase cost and the sale of investments over the daily average net asset value of the Fund for the

financial year ending is reasonable.

18. FUNCTIONAL AND PRESENTATION CURRENCY

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


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SCHEDULE A

LIST OF INVESTMENTS AS AT 31 JULY 2018

RM RM %

A QUOTED SHARES

MAIN MARKET

CONSUMER PRODUCTS 1 Ajinomoto (Malaysia) Bhd 73,200 1,503,600 1,604,544 5.97 2 Apex Healthcare Bhd 30,400 215,782 215,536 0.80

3 CCK Consolidated Holdings Bhd

735,500 623,875 680,338 2.53

4 CCM Duopharma Biotech Bhd

785,800 1,127,559 958,676 3.57

5 Dutch Lady Milk Industries Bhd

15,900 1,065,583 1,063,710 3.96

6 Hong Leong Industries Bhd 97,000 1,090,930 1,055,360 3.93 7 Padini Holdings Bhd 281,400 1,150,558 1,688,400 6.29

8 Sinotop Holdings Bhd 455,700 294,281 107,089 0.40

Total 7,072,168 7,373,653 27.45

INDUSTRIAL PRODUCTS

1 Hibiscus Petroleum Bhd 1,599,700 1,569,374 1,543,711 5.75

2 PMB Technology Bhd 435,000 1,495,979 1,361,550 5.07

3 Uchi Technologies Bhd 484,400 1,548,427 1,491,952 5.55

Total 4,613,780 4,937,213 16.37

TRADING/SERVICES

1 Mega First Corporation Bhd 382,300 1,374,404 1,349,519 5.02

PROPERTIES

1 Boustead Plantations Bhd 1,017,000 1,287,607 1,291,590 4.81

TECHNOLOGY

1 D&O Green Technologies

Bhd

1,921,400 1,400,974 1,393,015 5.19

2 Elsoft Research Bhd 680,250 1,678,825 1,843,477 6.87

3 Pentamaster Corporation Bhd

623,500 1,209,748 1,770,740 6.59

4 Vitrox Corporation Bhd 279,200 1,397,735 1,772,920 6.60

Total 5,687,282 6,780,152 25.25

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


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SCHEDULE A

LIST OF INVESTMENTS AS AT 31 JULY 2018

RM

RM

%

A QUOTED SHARES

MAIN MARKET

INFRASTRUCTURE

1 TIME dotCom Bhd 142,100 1,271,100 1,165,220 4.34

ACE MARKET

TECHNOLOGY

1 Borneo Aqua Harvest Bhd 1,039,200 1,271,510 1,340,568 4.99

2 N2N Connect Bhd 830,000 1,061,404 1,054,100 3.93

Total 2,332,914 2,394,668 8.92

Total Quoted Shares 23,639,255 24,752,015 92.16

Unrealised Gain 1,112,760

24,752,015

RM RM %

B ISLAMIC DEPOSIT

1 MIDF Amanah Investment Bank Bhd

Commodity Murabahah

1,103,241 1,103,432 4.11

Total Islamic Deposit 1,103,241 1,103,432 4.11

25,855,447 96.27

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

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


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9. BUSINESS INFORMATION NETWORK REGIONAL OFFICES: Head Office Level 21, 1 Sentral, Jalan Rakyat Kuala Lumpur Sentral 50470 Kuala Lumpur Tel: (03) 27859900 Fax: (03) 27859901 E-mail: [email protected] Central Region Tingkat 1, Wisma PMB No. 1A, Jalan Lumut 50400 Kuala Lumpur Tel: (03) 40454000 Fax: (03) 40443800 H/P: (013) 2710392 (Suhaila Malzuki) E-mail: [email protected] [email protected] Northern Region No. 46 1/F Jalan Todak 2 Pusat Bandar Seberang Jaya 13700 Perai, Pulau Pinang Tel: (04) 3909036 Fax: (04) 3909041 H/P: (019) 4741717 (Mohammad Faizal Mohammad Tahir) E-mail: [email protected] [email protected] Eastern Region Lot D103, Tingkat 1, Mahkota Square Jalan Mahkota, 25000 Kuantan, Pahang Tel: (09) 5158545 Fax: (09) 5134545 H/P: (017) 7710117 (Ameer Khalifa Mohd Azman) E-mail: [email protected] [email protected] Southern Region No. 17-01, Jalan Molek 1/29 Taman Molek, 81100 Johor Bahru Tel: (07) 3522120 Fax: (07) 3512120 H/P: (012) 2070440 (Ahmad Zaki Omar) E-mail: [email protected] [email protected] Sarawak No. 59, Tingkat Satu, Jalan Tun Jugah 93350 Kuching, Sarawak Tel: (082) 464402 Fax: (082) 464404 H/P: (013) 8230645 (John Nyaliaw) E-mail: [email protected] [email protected]







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REGIONAL OFFICES: Sabah Lot 2-3-19C, Tingkat 2, Plaza Wawasan Lorong Plaza Wawasan, 88000 Kota Kinabalu, Sabah Tel: (088) 244129 Fax: (088) 244419 H/P: (013) 8808273 (Hadjira@Azeera Mangguna) E-mail: [email protected] [email protected] AGENCY OFFICES:

Kuala Lumpur Nor Azihan Alias AAG Suite, Level 3, Wisma PMB, No. 1A, Jalan Lumut 50400 Kuala Lumpur H/P: (019) 2277375 E-mail: [email protected]

Abdul Samah Ashaari Al-Fateh, Suite 1402, Level 14, G Tower 199, Jalan Tun Razak 50400 Kuala Lumpur H/P: (019) 2206085 E-mail: [email protected]

Najdiah Abu Bakar Heroz Ventures Resources 19-1 Jalan Danau Lumayan, Bandar Permaisuri 56000 Kuala Lumpur H/P: (019) 2773776 E-mail: [email protected]

Melaka Datuk Md. Ramly Mohamad No. 253-A, Jalan TMR 3, Taman Melaka Raya 75000 Melaka Tel: (06) 2815051 Fax: (06) 2815046 H/P: (012) 6093859 E-mail: [email protected]

Terengganu Mohd Nazri Othman No. 472-C, Tingkat 1, Jalan Kamaruddin 20400 Kuala Terengganu, Terenggganu Tel: (09) 6271820 H/P: (019) 9847878

Institutional Unit Trust Agents: Financial Institutions For Autodebit Services:

Phillip Mutual Bhd

Apex Investment Services Bhd

Bank Simpanan Nasional

CIMB Bank Berhad

Malayan Banking Berhad/Maybank Islamic Berhad

RHB Bank Berhad/RHB Islamic Bank Berhad





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10. INFORMATION OF INVESTOR RELATION

CUSTOMER SERVICES

You may communicate with us via:-

Investor Relation Careline : (03) 2785 9900

E-mail : [email protected]

Our Customer Service Personnel would assist your queries on our unit

trust funds.

NOTES TO PROSPECTIVE INVESTORS

This report in not an offer to sell units.

Prospective investor should read and understand the contents of the

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

adviser on this scheme.

Past performance of the Fund is not an indication of future

performance and unit prices and investment returns may fluctuate.


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11. INVESTOR PROFILE UPDATE FORM

PMB SHARIAH SMALL-CAP FUND - pmbinvestment.com.my · Peti Surat 10701 . 50722 Kuala Lumpur; c....

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