PDSF Ar Eng
PDSF Ar Eng
PDSF Ar Eng
Fund Information 2
Fund Performance 2
Manager’s Report 8
Trustee’s Report 13
Statement By Manager 14
Corporate Information 40
Public Dividend Select Fund (PDSF) 1. Total return of the Fund is derived by this formulae:
Fund Category
Equity
( End of Period FYCurrent Year NAV per unit
End of Period FYPrevious Year NAV per unit )
(Adjusted for unit split and distribution paid out for the period)
-1
Fund Investment Objective The above total return of the Fund was sourced from Lipper.
To provide steady recurring income by investing in a portfolio of stocks
2. Average total return is derived by this formulae:
which offer or have the potential to offer attractive dividend yields*.
Total Return
* Stocks which offer attractive dividend yields refer to stocks with
consistency in rewarding shareholders via dividend payouts. Number of Years Under Review
Fund Performance Benchmark Other Performance Data for the Past Three Financial Years
The benchmarks of the Fund and their respective percentages are 90% Ended 31 May
FTSE Bursa Malaysia Top 100 Index (FBM 100) and 10% 3-Month Kuala
Lumpur Interbank Offered Rate (KLIBOR). 2022 2021 2020
Unit Prices (MYR)*
The PDSF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited
(“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Highest NAV per unit for the year 0.2677 0.2636 0.2595
Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any Lowest NAV per unit for the year 0.2356 0.2265 0.1987
warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained
from the use of the FTSE BURSA MALAYSIA TOP 100 INDEX (“the Index”), and/or the figure at
which the said Index stands at any particular time on any particular day or otherwise. The Index is Net Asset Value (NAV) and Units in
compiled and calculated by FTSE. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall Circulation (UIC) as at the End of
be liable (whether in negligence or otherwise) to any person for any error in the Index and neither
FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any
the Year
error therein. Total NAV (MYR’000) 1,036,422 1,157,923 1,216,677
“FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. UIC (in ’000) 4,234,075 4,547,795 5,302,507
“BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. NAV per unit (MYR) 0.2448 0.2546 0.2295
Fund Distribution Policy Total Return for the Year (%) -1.73 12.94 -3.86
Capital growth (%) -3.48 11.13 -5.94
Semi-annual Income (%) 1.81 1.63 2.21
Fund Performance Total Expense Ratio (%) 1.56 1.55 1.56
Portfolio Turnover Ratio (time) 0.23 0.42 0.22
Average Total Return for the Following Years Ended
31 May 2022 * All prices quoted are ex-distribution.
Notes: Total Expense Ratio is calculated by taking the total expenses expressed as an annual
Average Total percentage of the Fund’s average net asset value.
Return of PDSF (%)
Portfolio Turnover Ratio is calculated by taking the average of the total acquisitions and
1 Year -1.73 disposals of the investments in the Fund for the year over the average net asset value
3 Years 2.23 of the Fund calculated on a daily basis.
5 Years 0.31 The Portfolio Turnover Ratio for the financial year 2022 dropped to 0.23 times from 0.42
times in the previous financial year on account of lower level of rebalancing activities
Annual Total Return for the Financial Years Ended 31 May performed by the Fund during the year.
Distribution and Unit Split Asset Allocation for the Past Three Financial Years (cont’d)
Financial year 2022 2021 2020 As at 31 May
Date of distribution 30.11.21 31.5.22 30.11.20 31.5.21 29.11.19 29.5.20 (Percent of NAV)
Interim Final Interim Final Interim Final
2022 2021 2020
Distribution per unit % % %
Gross (sen) 0.30 0.25 0.30 0.15 0.30 0.70 Outside Malaysia
Net (sen) 0.30 0.25 0.30 0.15 0.30 0.70 France
Unit split - - - - - - Consumer, Cyclical - - 1.3
Hong Kong
Impact on NAV Arising from Distribution (Interim & Final) for Communications 2.0 3.1 -
the Financial Years Consumer, Cyclical - - 0.8
2022 2021 2020 Financial - - 0.2
Interim Final Interim Final Interim Final 2.0 3.1 1.0
Sen Sen Sen Sen Sen Sen
per unit per unit per unit per unit per unit per unit Japan
Consumer, Cyclical 0.8 - -
NAV before
distribution 25.87 24.73 24.43 25.61 24.82 23.65 Korea
Less: Net distribution (0.30) (0.25) (0.30) (0.15) (0.30) (0.70) Communications 0.9 0.9 -
Technology 0.9 0.8 0.7
NAV after distribution 25.57 24.48 24.13 25.46 24.52 22.95
1.8 1.7 0.7
Past performance is not necessarily indicative of future performance and unit
Singapore
prices and investment returns may go down, as well as up.
Financial 1.3 - 0.4
Asset Allocation for the Past Three Financial Years Taiwan
Industrial - - 2.1
As at 31 May
Technology 1.2 0.7 -
(Percent of NAV)
2022 2021 2020 1.2 0.7 2.1
% % % United States
EQUITY SECURITIES Communications - 0.2 0.6
Quoted Consumer, Cyclical - 1.6 -
Malaysia Consumer, Non-cyclical 0.7 - -
Ordinary Shares Technology 3.5 6.7 3.8
Basic Materials 6.2 3.7 1.0
Communications 4.8 7.3 7.4 4.2 8.5 4.4
Consumer, Cyclical 7.3 6.8 5.1
TOTAL QUOTED EQUITY
Consumer, Non-cyclical 9.9 6.9 16.7
SECURITIES 86.1 89.6 85.4
Diversified 3.4 2.9 2.4
Energy 1.8 1.8 3.8 COLLECTIVE INVESTMENT FUNDS
Financial 27.0 26.6 25.6 Quoted
Industrial 5.9 10.6 7.1 Malaysia
Technology 2.4 3.0 0.7 Financial 4.9 4.5 5.0
Utilities 6.1 6.0 5.1
TOTAL QUOTED COLLECTIVE
74.8 75.6 74.9 INVESTMENT FUNDS 4.9 4.5 5.0
Preference Shares
Financial - - 0.6
Asset Allocation for the Past Three Financial Years (cont’d) Gross Net
Distributions Distribution Distribution
As at 31 May --------- Sen per unit ---------
(Percent of NAV)
Interim, November 2021 0.30 0.30
2022 2021 2020
Final, May 2022 0.25 0.25
% % %
REDEEMABLE CONVERTIBLE Total Distributions 0.55 0.55
UNSECURED LOAN STOCKS
Quoted
Total Return of the Fund -1.73%
Malaysia
Redeemable Convertible
Unsecured Loan Stocks 0.1 0.1 0.1 Effects of Distribution on NAV per unit before and after
Distribution:
TOTAL QUOTED REDEEMABLE
CONVERTIBLE UNSECURED NAV NAV
LOAN STOCKS 0.1 0.1 0.1 Before After
Distributions Distribution Distribution
DEPOSITS WITH FINANCIAL
-------- MYR per unit --------
INSTITUTIONS 7.7 3.8 8.2
Interim, November 2021 0.2587 0.2557
OTHER ASSETS & LIABILITIES 1.2 2.0 1.3 Final, May 2022 0.2473 0.2448
0%
Equity Portfolio Review
-10%
For the financial year under review, the Fund’s equity portfolio registered a
return of -0.20% as compared to the equity Benchmark’s return of -3.04%.
-20%
The Fund’s equity portfolio registered a smaller decline as compared to the
-30%
equity Benchmark as its selected holdings within the Financial and Basic
Materials sectors outperformed the broader market during the financial year
-40%
under review.
May-17 May-18 May-19 May-20 May-21 May-22
The Fund commenced the financial year under review with an equity
exposure of 93.7% and ended the financial year under review with an
The Fund’s Benchmark is a composite index of 90% FTSE Bursa Malaysia equity exposure of 90.2% as the Fund continued to capitalise on investment
Top 100 Index (FBM 100) and 10% 3-Month Kuala Lumpur Interbank opportunities in the domestic and foreign markets. Based on an average
Offered Rate (KLIBOR). equity exposure of 92.93%, the Fund’s equity portfolio is deemed to have
registered a return of -0.19% to the Fund as a whole for the financial year
Income Distribution and Impact on NAV Arising from under review. A full review of the performance of the equity markets is
Distribution tabled in the following sections.
The total cumulative gross distribution of 0.55 sen per unit (net distribution
Sector Allocation
of 0.55 sen per unit) for the financial year ended 31 May 2022 had the
effect of reducing the Net Asset Value (NAV) of the Fund after distribution. The top 5 sectors in Malaysia invested by the Fund are Financial, Consumer
For example, the gross distribution of 0.25 sen per unit (net distribution of (Non-cyclical), Consumer (Cyclical), Basic Materials and Utilities.
0.25 sen per unit) declared for the month of May 2022 has reduced the NAV
per unit of the Fund to RM0.2448 from RM0.2473 after distribution.
Stock Market Review Malaysia’s export growth moderated to 21.8% in the first four months of
2022 compared to 26.0% in 2021 amid slower exports of manufactured
Commencing the financial year under review at 11,198.59 points, goods including petroleum and chemical products. Meanwhile, import
the FBM 100 retraced in June and July 2021 amid concerns over the growth firmed to 24.3% from 23.3% over the same period on higher imports
country’s economic recovery following the re-imposition of nationwide of intermediate and consumption goods. The country’s cumulative trade
lockdown measures in light of a resurgence of Covid-19 infections. The surplus widened to RM88.6 billion in the first four months of 2022 from
index subsequently rose in August 2021 on improved investor sentiment RM79.0 billion in the corresponding period of the prior year. In a move to
following positive corporate earnings, higher commodity prices as well as a normalise interest rates in line with the recovery of the domestic economy,
relaxation of lockdown measures. Bank Negara Malaysia (BNM) increased its Overnight Policy Rate (OPR)
However, concerns over major regulatory changes by the Chinese by 25 basis points (bps) to 2.00% on 11 May 2022 from a record low of
government as well as the impact of the impending tapering of the U.S. 1.75%.
Federal Reserve’s (Fed) asset purchases led the domestic and global On the global monetary policy front, the Fed’s reduction of its monthly
markets lower in September 2021. The FBM 100 subsequently rebounded bond purchase programme commenced in November 2021 and ended in
in October 2021 on optimism over progress in the country’s vaccination March 2022. To contain inflationary pressures, the Fed raised the Federal
rate as well as the easing of movement restrictions, before declining in funds rate (FFR) by 50 bps at the Federal Open Market Committee (FOMC)
November 2021 amid profit-taking activities following the Budget 2022 meeting on 3-4 May 2022, bringing the Fed funds target range to 0.75%-
announcement which included a proposed one-off prosperity tax on high- 1.00% from 0.25%-0.50%. The Fed also announced that its balance sheet
income corporations. reduction (run-off) exercise will start in June 2022.
The FBM 100 rebounded from December 2021 to mid-January 2022
amid buying interest in selected banking and basic materials stocks, but Outlook and Investment Strategy
trended lower in the second half of January 2022 on concerns over the Global and selected regional markets generally traded lower in the first five
Fed’s potential acceleration in the tightening of its monetary policy. Led by months of 2022 amid concerns over the prospect of a tighter U.S. monetary
strength in selected banking, plantation and basic materials stocks amid policy to contain inflation, the economic impact of the ongoing Russia-
expectations for higher interest rates as well as surging prices for palm oil Ukraine conflict, and the Covid-19 lockdowns in selected major cities of
and other commodities, the index rose in February 2022 before easing in China until 1 June 2022. While the global economy is expected to register
early March 2022 amid the escalation of the Russia-Ukraine conflict and positive growth in 2022, headwinds such as supply chain disruptions,
profit-taking activities in the plantation sector. China’s ‘zero-Covid’ policy and elevated inflationary pressures could
The FBM 100 subsequently rose towards the end of March 2022 in tandem dampen the pace of economic growth.
with the rebound in the regional markets, and further strengthened in April Looking ahead, the equity markets’ longer-term performance will depend on
2022 on the back of gains in the plantation sector as well as optimism the pace of recovery in the key economies of the U.S., Europe and the Asia
over the re-opening of Malaysia’s international borders on 1 April 2022. Pacific region. Meanwhile, investors will focus on inflation trends and the
However, the index retraced in May 2022 in tandem with the regional timeline for the normalisation of monetary policies by major central banks
markets amid concerns over the potential adverse impact of monetary amid the risk of ongoing Covid-19 infections and geopolitical tensions.
tightening measures by major central banks on global economic growth.
The FBM 100 closed at 10,858.51 points to register a decline of 3.04% for In its annual report released on 30 March 2022, barring any unforeseen
the financial year under review. circumstances, BNM projects Malaysia’s real GDP to grow by between
5.3% and 6.3% in 2022 from 3.1% in 2021, supported by higher private
Economic Review consumption and investment spending as well as continued growth in the
exports of electronic products and commodities.
Malaysia’s real gross domestic product (GDP) growth accelerated to 5.0%
in 1Q 2022 from 3.1% in 2021, mainly attributable to improved consumer BNM projects the inflation rate to be in the range of 2.2% to 3.2% in 2022
and investment spending. On the supply side, growth in the services sector compared to 2.5% in 2021. Meanwhile, the central bank also highlighted
rose to 6.5% in 1Q 2022 from 1.9% in 2021. Meanwhile, growth in the that elevated commodity prices and prolonged global supply chain
manufacturing sector moderated to 6.6% from 9.5% over the same period. disruptions could potentially lead to higher inflation.
Malaysia’s inflation rate eased to 2.2% in the first four months of 2022 from
As at end-May 2022, the FBM 100 traded at a prospective P/E ratio of
2.5% in 2021 amid a moderation in transportation costs.
15.3x, which is below its 10-year average of 16.7x. The market’s dividend
yield stood at 3.7%.
Given the above factors, the Fund will continue to rebalance its investment To the unit holders of PUBLIC DIVIDEND SELECT FUND (“Fund”),
portfolio accordingly with the objective of providing steady recurring income
by investing in a portfolio of stocks which offer or have the potential to offer We have acted as Trustee of the Fund for the financial year ended
attractive dividend yields. 31 May 2022 and we hereby confirm to the best of our knowledge, after
having made all reasonable enquiries, PUBLIC MUTUAL BERHAD has
Note: Q = Quarter operated and managed the Fund during the year covered by these financial
statements in accordance with the following:
Cross-Trade Transactions
1. Limitations imposed on the investment powers of the management
No cross-trade transactions were undertaken by PDSF during portfolio company under the deed, securities laws and the Guidelines on Unit
rebalancing activities over the financial year under review. Trust Funds;
2. Valuation and pricing is carried out in accordance with the deed; and
Policy on Soft Commissions
3. Any creation and cancellation of units are carried out in accordance with
The management company may receive goods and services which bring
the deed and any regulatory requirement.
a direct benefit or advantage to the management of the funds and may be
in the form of research and advisory services that assist in the decision- We are of the opinion that the distribution of income by the Fund is appropriate
making process relating to the Fund’s investments. and reflects the investment objective of the Fund.
During the financial year under review, PDSF has received soft commissions
from brokers/dealers who have also executed trades for other funds
managed by Public Mutual. The soft commissions were utilised for goods
and services which include the provision of financial data, price quotation
on securities, benchmarks for fund performance measurement, research
services and investment-related publications to assist the Manager in the
For AMANAHRAYA TRUSTEES BERHAD
investment decision-making process. The soft commissions received were
for the benefit of the funds and there were no churning of trades.
We, TAN SRI DATO’ SRI DR. TAY AH LEK and QUAH POH KEAT, being two Independent auditors’ report to the Unitholders of
of the directors of PUBLIC MUTUAL BERHAD, do hereby state that, in the PUBLIC DIVIDEND SELECT FUND
opinion of the Manager, the accompanying statement of assets and liabilities
as at 31 May 2022 and the related statement of income and expenditure, Report on the audit of the financial statements
statement of changes in net asset value and statement of cash flows for Opinion
the financial year ended on that date together with the notes thereto, are
drawn up in accordance with Malaysian Financial Reporting Standards and We have audited the financial statements of PUBLIC DIVIDEND SELECT
International Financial Reporting Standards so as to give a true and fair FUND (“the Fund”), which comprise the statement of assets and liabilities as
view of the financial position of PUBLIC DIVIDEND SELECT FUND as at at 31 May 2022, and the statement of income and expenditure, statement of
31 May 2022 and of its financial performance, changes in net asset value changes in net asset value and statement of cash flows of the Fund for the
and cash flows for the financial year then ended and comply with the financial year then ended, and notes to the financial statements, including
requirements of the Deeds. a summary of significant accounting policies, as set out on pages 18 to 39.
In our opinion, the accompanying financial statements give a true and fair
view of the financial position of the Fund as at 31 May 2022, and of its
financial performance and its cash flows for the financial year then ended
in accordance with Malaysian Financial Reporting Standards (“MFRS”) and
International Financial Reporting Standards (“IFRS”).
For and on behalf of the Manager 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
TAN SRI DATO’ SRI DR. TAY AH LEK provide a basis for our opinion.
Independence and other ethical responsibilities
We are independent of the Fund in accordance with the By-Laws (on
Professional Ethics, Conduct and Practice) of the Malaysian Institute of
Accountants (“By-Laws”) and the International Code of Ethics for Professional
Accountants (including International Independence Standards) (“IESBA
QUAH POH KEAT Code”), and we have fulfilled our other ethical responsibilities in accordance
with the By-Laws and the IESBA Code.
28 June 2022
Information other than the financial statements and auditors’ report
thereon
The Manager of the Fund is responsible for the other information. The other
information comprises the information included in the Annual Report of the
Fund, 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.
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.
Report on the audit of the financial statements (cont’d) Report on the audit of the financial statements (cont’d)
Responsibility of the Manager and Trustee for the financial statements Auditors’ responsibility for the audit of the financial statements (cont’d)
The Manager of the Fund is responsible for the preparation of financial • Conclude on the appropriateness of the Manager’s use of the going
statements of the Fund that give a true and fair view in accordance with concern basis of accounting and, based on the audit evidence obtained,
MFRS and IFRS. The Manager is also responsible for such internal control whether a material uncertainty exists related to events or conditions
as the Manager determines is necessary to enable the preparation of financial that may cast significant doubt on the Fund’s ability to continue as a
statements of the Fund that are free from material misstatement, whether going concern. If we conclude that a material uncertainty exists, we
due to fraud or error. are required to draw attention in our auditors’ report to the related
disclosures in the financial statements of the Fund or, if such disclosures
In preparing the financial statements of the Fund, the Manager is responsible are inadequate, to modify our opinion. Our conclusions are based on the
for assessing the Fund’s ability to continue as a going concern, disclosing, audit evidence obtained up to the date of our auditors’ report. However,
as applicable, matters related to going concern and using the going concern future events or conditions may cause the Fund to cease to continue
basis of accounting unless the Manager either intends to liquidate the Fund as a going concern.
or to cease operations, or has no realistic alternative but to do so.
• Evaluate the overall presentation, structure and content of the financial
The Trustee is responsible for overseeing the Fund’s financial reporting statements of the Fund, including the disclosures, and whether the
process. The Trustee is also responsible for ensuring that the Manager financial statements of the Fund represent the underlying transactions
maintains proper accounting and other records as are necessary to enable and events in a manner that achieves fair presentation.
true and fair presentation of these financial statements.
We communicate with the Manager regarding, among other matters, the
Auditors’ responsibility for the audit of the financial statements planned scope and timing of the audit and significant audit findings, including
Our objectives are to obtain reasonable assurance about whether the financial any significant deficiencies in internal control that we identify during our audit.
statements of the Fund as a whole are free from material misstatement, Other matters
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 This report is made solely to the unitholders of the Fund, as a body, in
a guarantee that an audit conducted in accordance with approved standards accordance with Guidelines on Unit Trust Funds issued by the Securities
on auditing in Malaysia and International Standards on Auditing will always Commission Malaysia and for no other purpose. We do not assume
detect a material misstatement when it exists. Misstatements can arise from responsibility to any other person for the content of this report.
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
judgment and maintain professional skepticism throughout the audit. We also: Ernst & Young PLT Ng Sue Ean
• Identify and assess the risks of material misstatement of the financial 202006000003 (LLP0022760-LCA) & AF 0039 No. 03276/07/2022 J
statements of the Fund, whether due to fraud or error, design and perform Chartered Accountants Chartered Accountant
audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The Kuala Lumpur, Malaysia
risk of not detecting a material misstatement resulting from fraud is 28 June 2022
higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order
to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness
of the Fund’s internal control.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made
by the Manager.
1. The Fund, The Manager and Their Principal Activities 2. Summary of Significant Accounting Policies (cont’d)
The Public Dividend Select Fund (hereinafter referred to as “the Fund”) (a) Basis of Preparation (cont’d)
was set up pursuant to the execution of a Supplemental Master Deed
dated 13 April 2005 between the Manager, Public Mutual Berhad, the Effective dates
Trustee, AmanahRaya Trustees Berhad and the registered unitholders of for financial periods
the Fund. The Fund is governed by a Master Deed dated 28 January 1999 beginning on or after
and subsequent Supplemental Master Deeds (collectively referred to Onerous Contracts - Cost of Fulfilling a 1 January 2022
as “Deeds”). Contract (Amendments to MFRS 137
The Fund’s objective is to provide steady recurring income by investing Provisions, Contingent Liabilities and
in a portfolio of stocks which offer or have the potential to offer attractive Contingent Assets) *
dividend yields. The Fund invests in investments as defined in the MFRS 17 - Insurance Contracts * 1 January 2023
Deeds. The Fund was launched on 3 May 2005 and will continue its Amendments to MFRS 17 Insurance 1 January 2023
operations until terminated by the Trustee as provided in the Master Contracts *
Initial Application of MFRS 17 and MFRS 9 1 January 2023
Deed.
- Comparative Information (Amendment to
The Manager of the Fund is Public Mutual Berhad, a company MFRS 17 Insurance Contracts) *
incorporated in Malaysia. Its principal activities are the management Classification of Liabilities as Current or 1 January 2023
of unit trusts and the sale of trust units. Its ultimate holding company is Non-current (Amendments to MFRS 101
Public Bank Berhad, a licensed bank incorporated in Malaysia and listed Presentation of Financial Statements)
on the Main Market of Bursa Malaysia Securities Berhad. Disclosure of Accounting Policies 1 January 2023
(Amendments to MFRS 101 Presentation
2. Summary of Significant Accounting Policies of Financial Statements)
Definition of Accounting Estimates 1 January 2023
(a) Basis of Preparation (Amendments to MFRS 108 Accounting
Policies, Changes in Accounting Estimates
The financial statements of the Fund have been prepared under
and Errors)
the historical cost convention, as modified by the revaluation of
Deferred Tax related to Assets and Liabilities 1 January 2023
financial assets and financial liabilities at fair value and comply
arising from a Single Transaction
with Malaysian Financial Reporting Standards (“MFRS”) and
(Amendments to MFRS 112 Income Taxes) *
International Financial Reporting Standards (“IFRS”).
Sale or Contribution of Assets between an To be announced
The Fund has adopted MFRSs, Amendments and Issue Committee Investor and its Associate or Joint Venture
(“IC”) Interpretations which were effective from periods beginning (Amendments to MFRS 10 and MFRS 128) *
on or after 1 January 2021 and 1 April 2021. The adoption of * These MFRSs and Amendments are not relevant to the Fund.
these MFRSs, Amendments and IC Interpretations do not have
any significant impact on the financial statements of the Fund. (b) Accounting Estimates and Judgements
The Fund will adopt the following MFRSs and Amendments when The preparation of the Fund’s financial statements requires the
they become effective in the respective financial periods and these Manager to make judgements, estimates and assumptions that
MFRSs and Amendments are not expected to have material impact affect the reported amounts of revenues, expenses, assets and
to the financial statements of the Fund upon the initial application. liabilities, and the disclosure of contingent liabilities at the reporting
date. However, uncertainty about these assumptions and estimates
Effective dates could result in outcome that could require a material adjustment to
for financial periods the carrying amount of an asset or a liability in the future.
beginning on or after
There are no major judgements nor key assumptions concerning
Amendments to MFRSs contained in the 1 January 2022 the future and other key sources of estimation uncertainty at the
document entitled “Annual Improvements reporting date, that may cast significant doubt upon the Fund’s
to MFRS Standards 2018-2020” ability to continue as a going concern. Therefore, the financial
Reference to the Conceptual Framework 1 January 2022 statements continue to be prepared on the going concern basis.
(Amendments to MFRS 3 Business
Combinations) * (c) Fair Value Measurement
Property, Plant and Equipment - Proceeds 1 January 2022
before Intended Use (Amendments to Fair value is the price that would be received to sell an asset or
MFRS 116 Property, Plant and Equipment) * paid to transfer a liability in an orderly transaction between market
participants at the measurement date.
2. Summary of Significant Accounting Policies (cont’d) 2. Summary of Significant Accounting Policies (cont’d)
(d) Financial Instruments (d) Financial Instruments (cont’d)
Financial assets and financial liabilities are recognised in the i) Financial Assets (cont’d)
Statement of Assets and Liabilities when, and only when, the Fund
becomes a party to the contractual provisions of the instrument. Financial Assets at amortised cost
A financial asset is measured at amortised cost if it is held
A financial asset or financial liability is considered to be held for within a business model whose objective is to hold financial
trading if: assets in order to collect contractual cash flows and its
contractual terms give rise on specified dates to cash flows that
• It is acquired or incurred principally for the purpose of selling
are solely payments of principal and interest on the principal
or repurchasing it in the near term; or
amount outstanding. The Fund includes in this category
• On initial recognition, it is part of a portfolio of identified financial amount due from brokers/financial institutions, amount due
instruments that are managed together and for which, there is from the Manager, other receivables, deposits with financial
evidence of a recent actual pattern of short-term profit-taking; institutions and cash at banks.
or
ii) Financial Liabilities
• It is a derivative (except for a derivative that is a financial
guarantee contract or a designated and effective hedging Financial liabilities are recognised initially at fair value and
instrument). classified according to the substance of the contractual
arrangements entered into and the definitions of a financial
i) Financial Assets liability.
The Fund determines the classification of its financial assets at The Fund derecognises a financial liability when the obligation
initial recognition, and the categories include financial assets under the liability is discharged, cancelled or expired.
measured at fair value through profit or loss (“FVTPL”) and
financial assets measured at amortised cost. Financial Liabilities at FVTPL
A financial liability is measured at FVTPL if it meets the
When financial assets are recognised initially on trade date, definition of held for trading.
they are measured at fair value, plus, in the case of financial
assets not at FVTPL, directly attributable transaction costs. Financial Liabilities at amortised cost
This category includes all financial liabilities, other than those
Financial assets are derecognised on trade date when the measured at FVTPL. The Fund includes in this category
rights to receive cash flows from the investments have expired amount due to brokers/financial institutions, amounts due to
or the Fund has transferred substantially all risks and rewards the Manager and the Trustee, and other payables.
of ownership.
Impairment
Financial Assets at FVTPL The Fund holds only receivables which have maturities of less than
A financial asset is classified as FVTPL if it meets the definition 12 months at amortised cost and has chosen to apply the simplified
of held for trading. Subsequent to initial recognition, financial
approach on all receivables.
assets at FVTPL are measured at fair value. Changes in the
fair value of those financial instruments are recorded in “Net (e) Foreign Currency
gain or loss on financial assets at FVTPL”. Interest earned,
distribution income and dividend revenue elements of such i) Functional and Presentation Currency
instruments are recorded separately in “Interest income”, The financial statements of the Fund are measured using
“Distribution income” and “Dividend income” respectively. the currency of the primary economic environment in which
Exchange differences on financial assets at FVTPL are not the Fund operates (“the functional currency”). The financial
recognised separately in profit or loss but are included in net statements are presented in Malaysian Ringgit (“MYR”), which
gain or net loss on changes in fair value of financial assets is also the Fund’s functional currency.
at FVTPL.
2. Summary of Significant Accounting Policies (cont’d) 2. Summary of Significant Accounting Policies (cont’d)
(e) Foreign Currency (cont’d) (j) Related Parties
ii) Foreign Currency Transactions Related parties refer to Public Bank Berhad and its subsidiaries.
Transactions in foreign currencies are measured and recorded
in the functional currency of the Fund on initial recognition at
3. Financial Risk and Capital Management Policies
exchange rates approximating those ruling at the transaction The Fund is exposed to a variety of financial risks, which include market
dates. Monetary assets and liabilities denominated in foreign risk (such as price risk and currency risk), credit and counterparty risk,
currencies are translated at the rate of exchange ruling at single issuer risk, liquidity risk and the current COVID-19 pandemic.
the reporting date. Non-monetary items denominated in The overall financial risk management objective of the Fund is to
foreign currencies that are measured at historical cost are mitigate capital loss.
translated using the exchange rates as at the dates of the
initial recognition. Financial risk management is carried out through policy reviews, internal
control systems and adherence to the investment powers and restrictions
Exchange differences arising from translation of monetary stipulated in the Guidelines on Unit Trust Funds issued by the Securities
items at the reporting date are recognised in profit or loss. Commission Malaysia.
Exchange differences arising from the translation of non-
monetary financial assets at FVTPL are included in profit (a) Market Risk
or loss.
Market risk arises when the value of the securities fluctuates in
(f) Unitholders’ Capital response to the activities of individual companies, and general
market or economic environments. Market risk is managed
The Unitholders’ contributions to the Fund meet the definition of
through portfolio diversification and changes in asset allocation.
puttable instruments and are classified as equity instruments.
It comprises the following risks:
Distribution equalisation represents the average distributable
amount included in the creation and cancellation prices of units. i) Price Risk
This amount is either refunded to Unitholders by way of distribution Price risk is the risk that prices of equity securities and
and/or adjusted accordingly when units are cancelled. collective investment funds rise or fall as a result of changes
(g) Cash and Cash Equivalents in factors specific to a particular security or general market
conditions.
Cash and cash equivalents comprise cash at licensed banks which
are subject to an insignificant risk of changes in value. The increase/(decrease) in the NAV attributable to unitholders
as at reporting date, assuming equity and collective
(h) Income investment funds’ prices change by +/(-) 5% with all other
variables held constant, is +/(-) MYR47,235,000 (2021:
Income is recognised to the extent that it is probable that the
+/(-) MYR54,558,000). This analysis is for illustration purpose
economic benefits will flow to the Fund and the income can
only and not an indication of future variances.
be reliably measured. Income is measured at the fair value of
consideration received or receivable, and is presented gross of ii) Currency Risk
withholding tax which is disclosed separately.
The Fund invests in financial instruments denominated in
Distribution income and dividend income are recognised on the currencies other than its functional currency. Consequently,
date when the Fund’s right to receive the payment is established. the Fund is exposed to risks arising from changes in the
Interest income for all interest-bearing financial instruments and exchange rate of its functional currency relative to other
accretion of discount/amortisation of premium are recognised using foreign currencies that might significantly impact the value of
the effective interest method. the Fund’s assets or liabilities denominated in currencies other
than Malaysian Ringgit.
(i) Taxation
The increase/(decrease) in the NAV attributable to unitholders
Current tax assets and liabilities are measured at the amount as at reporting date, assuming exchange rates of foreign
expected to be recovered from or paid to the tax authorities. The currencies fluctuate by +/(-) 5% with all other variables held
tax rate and tax laws used to compute the amount are those that constant, is +/(-) MYR6,967,000 (2021: +/(-) MYR9,521,000).
are enacted or substantively enacted by the reporting date. The This analysis is for illustration purpose only and not an
Fund may also incur withholding taxes on income received from indication of future variances.
financial instruments.
Technology Level 3: Inputs for the asset or liability other than observable market
Apple Inc. 18 8,275 11,403 1.1 data.
Intel Corporation 20 4,586 3,898 0.4 As of end of the financial year, the Fund held the following financial
Microsoft Corp 11 9,672 12,615 1.2 instruments carried at fair value on the Statement of Assets and
NVIDIA Corporation 10 5,840 7,829 0.8 Liabilities:
28,373 35,745 3.5 Level 1 Total
COLLECTIVE 2022 2021 2022 2021
INVESTMENT FUNDS MYR’000 MYR’000 MYR’000 MYR’000
Financial assets at
Malaysia
FVTPL
Financial - Equity securities 892,845 1,038,184 892,845 1,038,184
IGB Real Estate - Collective
Investment Trust 18,857 26,710 30,925 3.0 investment funds 50,516 51,649 50,516 51,649
Sunway Real Estate - Redeemable
Investment Trust 12,558 21,689 19,591 1.9 convertible
unsecured loan
48,399 50,516 4.9 stocks 1,343 1,317 1,343 1,317
REDEEMABLE 944,704 1,091,150 944,704 1,091,150
CONVERTIBLE
UNSECURED
There were no transfers between Level 1 and Level 2 during the current
LOAN STOCKS
and previous financial year.
Malaysia
The carrying amounts of financial assets and financial liabilities,
Hume Cement Industries
other than above, approximate fair values due to relatively short term
Berhad - 5.00% / 2024 850 850 1,343 0.1
maturities of these financial instruments.
TOTAL 1,129,136 944,704 91.1
6. Due from Brokers/Financial Institutions, Net
Cost is translated to the Fund’s functional currency based on the 2022 2021
exchange rates at the reporting date of the Statement of Assets and MYR’000 MYR’000
Liabilities. Amount due from a related financial
Net (loss)/gain from investments for the financial year is as follows: institution 2,744 -
2022 2021
MYR’000 MYR’000 7. Deposits with Financial Institutions
Financial assets at FVTPL 2022 2021
- realised gain on disposal 18,838 1,726 MYR’000 MYR’000
- unrealised (loss)/gain on changes in Deposits with a related licensed financial
fair value (53,282) 133,555 institution 79,374 44,274
(34,444) 135,281
2022 2021 2022 2021 At beginning of the financial year 4,547,795 5,302,507
% % Day Day Creation of units 82,593 211,631
Money market deposits, Cancellation of units (396,313) (966,343)
less than 1 year 1.79 1.81 1 1 At end of the financial year 4,234,075 4,547,795
17. Transactions with Related and Other Brokers/Financial 19. Segment Information
Institutions (cont’d) For management purposes, the Fund is organised into one main
Percent operating segment, which invests in various financial instruments and
Percent Brokerage of Total the analysis of the Fund’s investment income is as follows:
Value of of Total Fees and Fees and
2022 2021
Name Trade Trade Commissions Commissions
MYR’000 MYR’000
MYR’000 % MYR’000 %
(a) Investment Type
CLSA Limited 39,218 8 7 1 Equity securities (4,716) 175,817
China International Collective investment funds 5,111 (2,934)
Capital Corp HK Convertible unsecured loan stocks 68 (170)
Securities Ltd 35,800 7 5 1 Deposits 913 1,063
Mercury Securities 1,376 173,776
Sdn Bhd 31,370 6 71 8
J.P. Morgan (b) Regional Locations
Securities plc 21,050 4 63 7 Malaysia 6,729 119,147
Citigroup Global Asia Pacific (22,937) 29,823
Markets Limited 16,151 3 3 # Europe & United States 17,584 24,806
Macquarie
1,376 173,776
Securities Korea
Limited 14,163 3 42 5
Macquarie
Securities
(Australia) Limited 11,251 2 2 #
CLSA Singapore
Pte Ltd 9,812 2 15 2
Others 27,135 5 65 8
515,014 100 870 100
Auditor of the Manager and the Fund Chiang Kang Pey - Deputy Chief Executive Officer
Ernst & Young PLT
Level 23A, Menara Milenium Lum Ming Jang - Chief Investment Officer
Jalan Damanlela
Pusat Bandar Damansara Richard Tan Koon Eam - Senior General Manager,
50490 Kuala Lumpur Information Technology
East Malaysia
Bintulu Sandakan
4, Lot 2646, Jalan Tun Ahmad Zaidi, Lot 16, Block B,
97000 Bintulu, Sarawak. Bandar Maju Commercial Centre,
Tel: 086-859500 Fax: 086-330221 Mile 1.5, North Road,
Senior Branch Manager: 90000 Sandakan, Sabah.
Lilian Lo Fui Ping Postal Address:
Public Mutual Berhad,
Kota Kinabalu Sandakan Branch
Lot 1-0-10, Lorong Api-Api 1, P.O. Box No. 3488,
Api-Api Centre, 90739 Sandakan, Sabah.
88000 Kota Kinabalu, Sabah. Tel: 089-231500 Fax: 089-222889
Tel: 088-327500
Fax: 088-238389 Sibu
Branch Manager: 10, Lorong 2,
Lim Shaw Siang Jalan Tuanku Osman,
96000 Sibu, Sarawak.
Kuching Tel: 084-363500 Fax: 084-330269
Lot 205 & 206, Section 49, Branch Manager:
Jalan Tunku Abdul Rahman, Tiong Kung Kuok
93100 Kuching, Sarawak.
Tel: 082-226500 Fax: 082-239825 Tawau
Senior Branch Manager: TB 4437, Lot 28,
Jones Chen Chung Sze Block D, Sabindo Square,
Jalan Dunlop,
Miri 91000 Tawau, Sabah.
D-G-16, Miri Times Square, Tel: 089-982500 Fax: 089-765326
Marina Parkcity, Assistant Branch Manager:
98000 Miri, Sarawak. Teo Wee Ann
Tel: 085-323500 Fax: 085-416195
Branch Manager:
Allan Ngo Say Khiang
Agency Offices
Penang (Bayan Baru) Sarawak (Sarikei)
Liang Wing Sim Agency Office Ling Chai Kua Agency Office
104, 1st Floor, 1st Floor, No. 28, Jalan Nenas Lrg 2,
Jalan Mayang Pasir, 96100 Sarikei, Sarawak.
Taman Sri Tunas, Tel: 084-654108/652094
Bayan Baru,
11950 Bayan Lepas, Penang.
Tel: 04-6422170/1
Fax: 04-6411268