KELUARGA BERHAD - Takaful€¦ · Invest primarily in selected Shariah-compliant equities that...

SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 2

CONTENTS

Page

GROUP CHIEF EXECUTIVE OFFICER’S STATEMENT 3

FUND PROFILE 4

GLOBAL AND LOCAL ECONOMIC REVIEW 7

EQUITY AND FIXED INCOME MARKET REVIEW 9

MARKET OUTLOOK AND INVESTMENT STRATEGY 10

FUND PERFORMANCE REPORT 12

SOFT COMMISSION RECEIVED FROM BROKERS 26

STATEMENT BY DIRECTORS 27

INDEPENDENT AUDITORS’ REPORT 28

STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2018 30

STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2017 31

STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2018 32

STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2017 33

STATEMENTS OF CHANGES IN NET ASSET VALUE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2018 34

STATEMENTS OF CHANGES IN NET ASSET VALUE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2017 34

CASH FLOW STATEMENTS FOR FINANCIAL YEAR ENDED 31 DECEMBER 2018 35

CASH FLOW STATEMENTS FOR FINANCIAL YEAR ENDED 31 DECEMBER 2017 36

NOTES TO THE FINANCIAL STATEMENTS 37

DETAILS OF INVESTMENTS 41

COMPARATIVE PERFORMANCE TABLE 53


GROUP CHIEF EXECUTIVE OFFICER’S STATEMENT

It is my pleasure to present the 2018 Annual Report of Takaful Malaysia’s Investment-Linked Funds consisting of the

Ittizan Fund, Istiqrar Fund, myEquity Index Fund, myGrowth Fund, myBlue Chips Fund, myDividend Fund and

myBalanced Fund for the year ended 31 December 2018.

In 2018, the Malaysian equity index FTSE Bursa Malaysia KLCI (FBMKLCI) hit the peak of 1,895.18 pts pre-General

Election 14 (GE-14) before scaling down to 1,663.86 pts post GE-14. A rebound in September 2018 has resulted in the

index to hit above the 1,800 pts level before closing the year at 1,690.58 pts to record a full year loss of -5.91%. During

the year, the Malaysian stock market was hindered by multiple challenges, domestically and globally. Locally, an

unexpected government change following the GE-14 resulted in changes in the Government policies as well as the

cancellation and downscaling of mega infrastructure projects. Externally, trade tensions between the United States (US)

and its trading partners continue to simmer, with a risk of a full blown trade war between the US and China.

Malaysia GDP growth has been slowing down with 9M18 GDP growth recorded at +4.7% (9M17: +5.9%); dragged by

softer growth in goods and services exports, given the moderating global economic and trade growth amid the downside

risk of further escalation in the trade war between the US and China. During the Budget 2019 tabled on 2 November

2018, the official 2018 real GDP growth forecast was lowered to +4.8% from a range of +5.5% to +6.0% previously.

International Monetary Fund (IMF) forecasted the global GDP growth of 2018 at 3.7% as the economy may have

witnessed an increasing trend in some major economies. The downside risks to global growth have been on the rise

following the trade disputes between the US and China whilst the potential for upside surprises declined. Most major

economies continued to tighten their monetary policies on the back of the rising US and global interest rates as well as

the closing stages of quantitative easing in major central banks.

On the investment front we continued to adopt prudent and vigilant investment strategies in managing risks and returns

resourcefully in advance of the ongoing uncertainties in the financial market. Despite the challenges, we are pleased to

report that the myEquity Fund, myGrowth Fund, myDividend Fund and myBlueChips Fund have outperformed by +130

bps to +569 bps of their benchmarks, whilst the FTSE Bursa Malaysia EMAS Shariah Index (FBMS) recorded a

negative return of -13.5%. By rank, the outperformance was led by the index tracking fund, myEquity fund surpassing its

benchmark by +569 bps followed by myBlueChips Fund and myDividend Fund outperforming their benchmark returns

by +438 bps and +279 bps respectively. You may find out more information about the funds, including the financial

performance in the following pages.

The market outlook for the year 2019 is expected to continue to be challenging on the back of the prevailing

uncertainties and headwinds at the global as well as domestic levels. Hence, the equity market is also anticipated to

remain volatile. Investors would be focusing on the implementation of the structural reforms which is expected to

weaken consumer sentiment and dampen profit margins of certain sectors. The positives, including Petronas spending

will remain intact, in addition to the continuity of some key infrastructure projects and recovery of exporters on a

stronger global economy. We are of the view that the market downside is fairly limited, given the strong domestic

liquidity, lower political risk and fiscal concerns being addressed.

Any upward movement of interest rate would be positive for new investments in sukuk and deposit instruments.

However, there would be limited trading opportunities to realize gains from existing holdings as the increase in interest

rate would result in the drop of market value.

While 2019 poses new challenges, the coming year also holds various opportunities for our team to strive for sound

returns to the participants. I would like to express my sincere gratitude for your unwavering support and look forward to

charting another great year of success.

Dato’ Sri Mohamed Hassan Kamil Group Chief Executive Officer


FUND PROFILE

ITTIZAN

Investment Objective

To achieve reasonable returns and capital growth opportunities via selected investments in Shariah approved shares listed in Bursa Malaysia and sukuk.

Investment Strategy

Invest in a balanced asset allocation comprising of Shariah-compliant equity, sukuk and money market.

Asset Allocation

At least 30% and a maximum of 70% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission;

The balance in cash, long and short term sukuk and other liquid Islamic investments.

Performance Benchmark

70% FBM Emas Shariah Index (“FBMSI”) and 30% one-month return Maybank General Investment Account rate (“GIA”).

ISTIQRAR


To achieve a relatively stable pattern of investment returns over medium term through selected investments in Shariah approved shares listed in Bursa Malaysia and sukuk.

Investment Strategy

Invest in a balanced asset allocation comprising mainly of sukuk with smaller exposure in Shariah-compliant equity.

Asset Allocation

A maximum of 35% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission;

At least 65% and a maximum 100% in cash, long and short term sukuk and other liquid Islamic investments.


30% FBM Emas Shariah Index (“FBMSI”) and 70% one-month return at Maybank General Investment Account rate (“GIA”).

myEQUITY INDEX FUND


To achieve returns that tracks the performance of the FBM Emas Shariah Index.

Investment Strategy

Invest mainly in the top 40 of the Index component stocks; closely tracking the movement of the Benchmark in the medium to long term;

Constant rebalancing of the component stocks to closely track the benchmark performance.

Asset Allocation

90% - 95% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission;

The balance in Islamic money market instruments.


FBM Emas Shariah Index (“FBMSI”).


myGROWTH FUND


To achieve capital growth opportunities and dividend income through selective investments in Shariah approved shares listed in Bursa Malaysia.

Investment Strategy

Invest primarily in selected Shariah-compliant equities that comprise of a diversified portfolio of index-linked companies, blue-chip stocks and companies with growth prospects and attractive dividend yields that are listed on Bursa Malaysia;

Active portfolio management – constant review on asset allocation and stocks holding. Stock / portfolio turnover would be practically high in search for opportunities in capital gain and dividend yield stocks.

Asset Allocation


The balance in cash, long and short term sukuk and other liquid Islamic investments.



myBLUE CHIPS FUND


To achieve consistent capital growth in the long run through investments in Shariah-compliant Blue Chips Shares.

Investment Strategy

Invest primarily in Shariah-compliant equities with higher market capitalisation to achieve long term capital growth;

Active portfolio management - constant review on asset allocation and stock holding in search of stocks that meet the objective of the Fund.

Asset Allocation





myDIVIDEND FUND


To achieve dividend income in the long term through selective investments in high dividend yield shares that provide a minimum annual gross dividend of 4.00%.

To achieve capital growth through selective investments in Blue Chips Shares that could potentially provide capital growth in the long run.

Investment Strategy

Invest primarily in dividend yield stocks that provide a minimum annual gross dividend of 4.00% as well as blue-chip stocks that could potentially grow in the long run;

At all times, exposure in stocks that yield a minimum of 4% annual gross dividend shall be at least 50% of the equity exposure;

Constant review on asset allocation and stock holding in search of stocks that comply with the objectives of the Fund.

Asset Allocation


At least 50% of the equity exposure is in dividend yield shares;





myBALANCED FUND


To achieve moderate streams of income and consistent capital growth over the medium to long term period by investing in a diversified portfolio of investments;

To construct a diversified portfolio containing a balanced mixture of equities and fixed income securities.

Investment Strategy

Invest in a balanced asset allocation comprising of Shariah-compliant equity, sukuk and money market.

Asset Allocation


At least 10% and a maximum of 60% in sukuk and Malaysian Government Investment Issues;



40% FBM Emas Shariah Index (“FBMSI”) and 60% 12 months return Maybank General Investment Account rate (“GIA”).


GLOBAL AND LOCAL ECONOMIC REVIEW

Economic Review This annual report is for the financial year of 1 January 2018 to 31 December 2018.

IMF forecasted the global GDP growth of 2018 at 3.7% as the economy may have witnessed an increase in some

major economies. The downside risks to global growth have been on the rise following the trade dispute between

the US and China, whilst the potential for upside remained challenging. Most major economies continued to

tighten their monetary policies on the back of increasing US and global interest rates as well as the closing stages

of quantitative easing in major central banks.

Over in the US, the Bureau of Economic Analysis (BEA) via the third estimate released, estimated the GDP to

increase by 3.4% in the third quarter of 2018 (Q2 2018: 4.2%). The growth rate was revised down by 0.1

percentage point from the second estimate released in November 2018, reflecting downward revisions to

personal consumption expenditures and exports that were partly offset by an upward revision to private inventory

investment.

For Euro zone, the GDP growth in the Euro area dropped to 1.6% in Q3 from Q2’s 2.2%. The deterioration was

driven by weaker dynamics in both the domestic and external economies. The Euro zone economy has entered a

slower growth trajectory after the buoyant recovery in 2017 due to tough external environment challenges,

particularly the global trade tensions, political and socio-economic uncertainties in Europe amid the on-going

Brexit drama and EU-Italy budget standoff, as well as the rising political instability and the growing socio-

economic divide in the continent.

China’s policies turned reflationary and pro-growth as economic data remained soft following the moderation in

real GDP growth to 6.5% in Q3 2018 after hovering in the range of 6.7%-6.9% since Q3 2015 amid downside

risks from the de-leveraging and de-risking policies and the trade war with the US. In addition, the Chinese yuan

has weakened against the USD by as much as 10% in 2018. The anticipated reflationary and pro-growth

measures and additional steps, especially in 1H 2019, such as further reserve requirement ratio (RRR) cuts,

pump-priming and even the possibility of mild relaxation of property measures will mitigate the downtrend in

China’s economic growth and ease the funding crunch as well as the liquidity risk. Amid a rising tide of debt

refinancing over the next 2-3 years, these measures will consecutively result in slightly slower growth of 6.3% in

2019 compared to the estimated 6.6% in 2018.

Brent crude oil rose from USD66.87/bbl at the end of 2017 to USD84.16 in October before closing the year much

lower at USD52.20/bbl. Several contributing factors were accounted for this, including the threat of sanctions on

Iran, continued increase in global demand despite increasing predictions of the demise of demand growth and the

deteriorating situation in Venezuela. The year-end witnessed the Brent crude oil price to decrease by 38% from a

high of USD84/bbl on 5 October 2018 to USD52/bbl as the global crude oil supply-demand balance returned to

excess supply situation in 2018 after the glut in 2014-2016 was reversed in 2017. The situation was compounded

by the surge in the US shale oil output, negating the output cuts by Saudi-led OPEC and Russia-led non-OPEC

producers, as well as the outlook of slowing global economic growth, which resulted in global oil demand.

The Malaysian economy was also showing a slowdown with 9M18 GDP growth recorded at +4.7% (January-

September 2017: +5.9%; 2017: +5.9%). During the Budget 2019 tabled on 2 November 2018, the official 2018

real GDP growth forecast was reduced to +4.8% from +5.5% compared to +6.0% range previously, followed by

+4.9% expansion in 2019. The slowdown was mainly due to the drag on public investment which contracted by -

5.3% from January-September 2018, reflecting the effect of cost reviews as well as the cancellations and

postponements of major infrastructure and other development projects. Public investment was also affected by

the capital expenditure of Government-linked companies that made up nearly two-thirds of public investment

compared to the Government’s development spending share of 30%. Petronas made up 30% of the public

investment with capex tapered off as the RAPID project scheduled to be completed by this year followed by its

operation next year. The private investment expanded moderately by +4.5% trailing last year’s +9.3% growths.


Headline inflation averaged at 1.0%, mainly attributable to the waning Sales and Service Tax (SST) impact

(implementation starts September) as well as high year-ago base effects, especially in the transportation,

communication, recreation services in addition to the miscellaneous goods and services components. Exports

and imports moderated significantly in November 2018 to +1.6% YoY (Oct 2018: +17.7% YoY) and +5.0% YoY

(October 2018: +11.4% YoY). The trade outlook tilted to the downside amid the downtrend in global

manufacturing PMI, especially the new export orders component, indicating fallout from the US-China trade war

escalation.


EQUITY AND FIXED INCOME MARKET REVIEW

Equity Market

The FBMKLCI in 2018 remained volatile, hitting the peak of 1,895.18 pre-General Election 14 (GE-14) before

plummeting to 1,663.86 post GE-14 followed by a rebound in September 2018 where the index hit >1,800 pts

level. The rebound was short lived before closing the year at 1,690.58 with a year to date loss of -5.9%. The FBM

Emas Shariah Index performance contracted by -13.5% whilst the casualties were mostly small capitalization

stocks with FBM Small Cap Index registered -33.7% loss. The small cap underperformers were George Kent (-

76.2%) and Hai-O Enterprise (-50.4%). During the year, we witnessed the investors switching from small

capitalization stocks to big caps as uncertainties on the election looming in and locked gains on small caps after a

stellar performance in 2017 (+15.87%).

Two sectors reported a marginal positive performance; Bursa Malaysia Finance Index with +2.6% return through

Public Bank (+22.5%) and Hong Leong Bank (+22.9%) as well as Malaysia Consumer Index with +1.6% return

via Nestle (+45.6%) and PPB Group (+24.3%).

Construction and technology were the worst-performing sectors in the Bursa Malaysia Construction Index,

registering a sharp decline of -50.2%, whilst Bursa Malaysia Technology Index underperformed with -29.9%

returns. The construction sector recorded a poor performance due to the uncertainties on review and cancellation

of infrastructure mega projects by the new Government. For the technology sector, the strengthening of Ringgit

has triggered a sell down on exporters and revision of lower sales of smartphones by Apple. The underperformed

stocks were; Gamuda (-51.4%) and IJM (-45.3%) for the construction sector and MYEG (-37.5%) and Inari (-

31.6%) for the technology sector.

The year 2018 witnessed all countries under the ASEAN-5 registered a negative return. The FBMKLCI trailed

slightly behind Indonesia (-2.5%), whilst the rest registered lower returns with Singapore at -9.8%, Thailand at -

10.8% and Philippines at -12.8%.

Foreign investors, who were upbeat on Malaysian equities in early-2018 with a net buy of RM3.5b in Jan-Apr,

took profit as the GE-14 polling day drew closer; with net sold of RM1.2b between 2-8 May. Their net sell

accelerated post polling on 9 May, totaling RM4.4b between 14-31 May and RM4.9b in June. The net sell

continued in 2H18, bringing their position to a net sell of RM11.9b for 2018, reversing all of their RM10.6b of net

buy in 2017. In comparison by region, Malaysia’s foreign net sell settled at USD2.8b in 2018 behind Thailand

(USD8.8b) and Indonesia (USD3.6b).

Fixed Income Market

For the bond market, the local government bonds ended 2018 weaker in a bear-flattening move amid the falling

ringgit and global crude oil prices. Local government bonds were affected by external developments as well as

speculations over a possible downgrade in Malaysia’s rating outlook by international credit rating agencies. The

total gross issuance of MGS/GII papers was up by 0.8% to RM114.8 billion. GII papers dominated issuances, as

indicated by the GII-to-MGS ratio of 56:44.

The total corporate bond issuance in 2018 dropped by 15.4% to RM103.9 billion from RM122.9 billion in 2017.

The decline in financing activities was mainly attributable to a significant drop in the unrated segment together

with higher financing costs and the cancellation of some mega infrastructure projects that further dented issuance

activities within the segment. The largest issuances were from the financial sector, which contributed 48.2%

towards the total gross issuance. This was followed by the infrastructure and utilities (17.0%) as well as the

property and real estate (11.8%) sectors. The top five corporate bond issuers were DanaInfra Nasional Bhd

(RM11.1 billion), Cagamas Bhd (RM9.0 billion), Lembaga Pembiayaan Perumahan Sektor Awam (LPPSA)

(RM6.0 billion), Edra Energy Sdn Bhd (RM5.1 billion) and Danga Capital Bhd (RM3.5 billion).

Foreign funds recorded net sold off MYR2.2 billion of Ringgit debts in December, bringing the total foreign

holdings down to MYR184.7 billion (Nov: MYR187.1billion) whilst widening the full-year outflows to MYR21.9

billion, the largest since 2008. The foreign shares of MGS and MGS + GII declined to 38.4% (Dec 17: 45.1%) and

23.7% (Dec-17: 28.9%) respectively.


MARKET OUTLOOK AND INVESTMENT STRATEGY

Market Outlook

The IMF is forecasting the global economy to grow at 3.5% in 2019 and 3.6% in 2020. This is a downward

revision from their earlier projection of 3.7% for both years, partly because of the negative effects of tariff

increases enacted in the US and China earlier that year. The revision of the forecast is also due to the softer

momentum carried over from the second half of 2018, following the introduction of new automobile fuel emission

standards in Germany and in Italy, where concerns about sovereign and financial risks have weighed on the

domestic demand. The weakening financial market sentiment as well as a contraction in Turkey that is projected

to be deeper than anticipated also added to the downward revision. An escalation of trade tensions beyond those

already incorporated in the forecast remains a key source of risk to the outlook. The financial conditions have

already tightened since the fall. A range of triggers beyond escalating trade tensions could spark a further

deterioration in risk sentiment with adverse growth implications, especially given the high levels of public and

private debt. These potential triggers include a “no-deal” withdrawal of the United Kingdom from the European

Union and a greater-than-envisaged slowdown in China. These headwinds and risks to growth have raised

uncertainties and ignited volatility in the equities, bonds, currencies and commodities for 2019.

Globally, investors will focus on a number of economic, policy and political events: (i) the outcome and impact on

the trade war between US-China after a 90-day ceasefire by March 2019; (ii) policies in the major economies,

especially the monetary policies of major central banks amid expectations of Fed rate hikes pause and QE

unwinding by other major central banks in 2019; (iii) the direction of crude oil prices; and (iv) the political and

socio-economic uncertainties in Europe amid the ongoing Brexit drama and EU-Italy budget standoff as well as

the growing political and socio-economic divides in the continent.

Domestically, risks to growth are mainly external, largely from the danger of further escalation in trade war. We

are also keeping a close tab on Malaysia’s fiscal situation. On a positive note, Moody’s recently re-affirmed

Malaysia’s “A3” sovereign credit rating and “Stable” rating outlook. However, the rating agency also highlighted

Malaysia’s weakened fiscal strength and the challenges of achieving the medium term fiscal targets of lowering

the budget deficit to GDP ratio amid the soft crude oil price and the importance of credible and sustainable

measures to broaden the tax revenue base. Thus, a key lookout for 2019 is the Tax Reform Committee’s (TRC)

recommendations and proposals for tax system reforms and overhaul.

For the Malaysian economy, sub-5% growth to persist (2019E: +4.9%; 2018E: +4.7%), mainly reflecting the

mixed impact and the equally mixed outlook for domestic demand (i.e. consumer spending, private investment

and public expenditure) as the economy goes through adjustments post-GE14, especially on fiscal front. The

aforementioned moderation in global economic growth diminishes the contribution of net external demand to real

GDP growth. Besides macro viewpoint, the other key influences to Malaysia’s financial market outlook in 2019

are the crude oil price direction; MYR’s upward momentum, changes in Bank Negara Malaysia’s (BNM) overnight

policy rate (OPR) and consumer sentiment.

BNM has maintained the Overnight Policy Rate (OPR) at 3.25% in January 2019 as anticipated by the market.

The Monetary Policy Committee’s (MPC) statement made a more cautious assessment on the global economic

outlook as trade tensions began to impact global trade performance and investment activity in late-2018. BNM

has highlighted country-specific factors as one of the key downside risks for global growth prospects. As a result,

the central bank has assessed that the external sector is likely to soften amid moderating global growth, a

downgrade from its previous assessment which indicated that “exports are projected to provide an additional lift to

growth, albeit to a lesser extent.” On the domestic front, BNM projected a sustained expansion in private

consumption and private investment to offset consolidation in public spending.

For the sukuk market, 2019 will be another volatile year with expectation of growth momentum to be moderate.

Any changes to OPR would be data-dependent with focus to support GDP growth and domestic demand. In this

regard, if real GDP growth slips below 4.0%, there is a likelihood of a downward adjustment in BNM’s statutory

reserve requirement (SRR) by 50-100 bps. There is also a possibility of a slight reduction in the OPR (by 25 bps)

should the growth deceleration exceed the pace initially expected.


It is envisaged yields for MGS and corporate bonds are to increase slightly in 2019 compared to 2018. As for new

issuances, the estimated gross/net supply of MGS + GII for 2019 is about RM115 billion / RM52 billion which

should be manageable due to ample liquidity. The total bond issuances are also expected to be healthy on the

back of a steady domestic growth, continuation of infrastructure projects such as MRT2 and LRT3 although with

lower project costs and the continuation of GG issuances.

Investment Strategy

Market outlook is expected to continue to be challenging in 2019 on the back of all the uncertainties globally as

well as the domestic scenes. At end of 2018, the FBMKLCI trades at 16.0x 12M forward PER and 1.73x trailing

P/B. We believe the lackluster corporate earnings trends have brought forward market PE valuation to its mean

(PER 15.8x).

Our strategy in 2019 will be a bottom-up approach and the ability for corporate to deliver better earnings. We

remain prudent in our investment strategy; we continue to focus on stocks with good fundamentals, stable

historical income, strong management team, long-term earnings visibility and a solid balance sheet. We would

continue to seek alpha in our stock picks that are defensive in nature, to protect the capital from any potential

downside risks while meeting the long-term objective of the funds.

For certain funds which have exposure to investment in fixed income, any increase in interest rate would be

positive for new investments. However, there would be limited trading opportunity to realize gains from existing

holdings as the increase in interest rate would result in the drop of market value. The focus will be on corporate

sukuk within AAA and AA segments to maintain the healthy credit portfolio as well as for better liquidity.


FUND PERFORMANCE REPORT

ITTIZAN

Performance Review For the 12 months ended 31 December 2018, Ittizan performance is trailing its benchmark (70% FBMSI and 30% 1-Month GIA) by 240 bps with a loss of -10.9% in tandem with the benchmark’s negative return of -8.6% as detailed out below:-

Asset Allocation In terms of asset allocation, the fund has invested 48.91% in equity, 22.10% in sukuk and the remaining in money market / cash. On equity sectoral allocation, Healthcare was the top sector that the fund invested in with 7.79% exposure. The details of asset allocation and the top 5 investment holdings are given below:-

(12.0)

(10.0)

(8.0)

(6.0)

(4.0)

(2.0)

0.0

2.0

4.0

Retu

rn %

Ittizan vs Benchmark

Ittizan Benchmark

22.10%

7.79% 7.57% 6.83% 5.51% 5.02%

Sukuk Healthcare Utilities Energy Industrial Products

Technology

Total Return (%) Average Annual Return (%)

1-Year 3-Year 5-Year 1-Year 3-Year 5-Year

Ittizan -10.9% -4.8% -0.7% -10.9% -1.6% -0.1%

Benchmark -8.6% -3.9% -3.4% -8.6% -1.3% -0.7%


Fees / Charges levied to the Fund Among the fees/charges levied to the fund are: a) Management fee which is calculated based on 1.5% per annum of the Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of sukuk.

Details on Distribution There was no distribution declared for Ittizan for the period ended 31 December 2018.

Descriptions of any changes in Fund’s Objectives and Strategies There were no material changes in the fund’s objectives and strategies for the period ended 31 December 2018.

48.91%

28.99%

22.10%

Equities

Money Market & Cash

Sukuk

2.85%

3.00%

3.13%

3.24%

4.67%

Dialog Group Bhd

Inari Amertron Bhd

Genting Plantations Bhd

Petronas Chemicals Group Bhd

Tenaga Nasional Bhd

Top 5 Investment Holding



ISTIQRAR Performance Review For the 12 months ended 31 December 2018, Istiqrar performance is trailing its benchmark (30% FBMSI and 70% 1-Month GIA) by 220 bps with a loss of -4.1% in tandem with the benchmark’s negative return of -1.9% as detailed out below:-



Istiqrar -4.1% 3.2% 9.7% -4.1% 1.1% 1.9%

Benchmark -1.9% 4.3% 8.3% -1.9% 1.4% 1.6%

Asset Allocation In terms of asset allocation, the fund has invested 24.19% in equity, 50.44% in sukuk and the remaining in money market / cash which is in accordance with its asset allocation strategy. On equity sectoral allocation, Energy was the top sector the fund has invested in with 4.34% exposure. The details of asset allocation and the top 5 investment holdings are given below:-

(5.0)

(4.0)

(3.0)

(2.0)

(1.0)

0.0

1.0

2.0

Retu

rn %

Istiqrar vs Benchmark

Istiqrar Benchmark

50.44%

4.34% 3.61% 3.24% 2.69% 2.51%

Sukuk Energy Healthcare Industrial Products & Services

Utilities Consumer Products & Services


Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.5% per annum of the Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of sukuk.

Details on Distribution There was no distribution declared for Istiqrar for the period ended 31 December 2018.

Descriptions of any changes in Fund’s Objectives and Strategies There were no material changes in the fund’s objectives and strategies for the period ended 31 December 2018.

50.44%

25.37%

24.19%

Sukuk

Money Market & Cash

Equities

5.24%

5.25%

5.28%

5.38%

5.42%

CIMB Islamic Bank Berhad

National Bank Of Abu Dhabi

Sarawak Energy Berhad

Cerah Sama Sdn Bhd

Ranhill Powertron II Sdn Bhd




myEQUITY INDEX FUND Performance Review For the period under review, myEquity Index Fund, has outperformed its benchmark, FBMSI by 569 bps as detailed out below. Additionally, the tracking error was within the parameters set for the fund and its strategy as to closely track its benchmark. For the period, the fund’s tracking error stood at 1.8%.



myEquity Index -7.8% -2.8% 3.2% -7.8% -0.9% 0.6%

Benchmark -13.5% -10.1% -11.8% -13.5% -3.5% -2.5%

Tracking Error 1.8% - - - - -

Note : Tracking error (also called active risk) is a measure of the deviation from the benchmark. It measures how closely a portfolio follows the index to which it is benchmarked. The index fund could have a tracking error close to zero, while an actively managed portfolio would normally have a higher tracking error.

Asset Allocation In terms of asset allocation, the fund has invested 92.47% in equity and the remaining in money market / cash. On equity sectoral allocation, Utilities was the top sector the fund has invested in, which is in line with the Bursa Malaysia FBMSI index component allocation. The details of asset allocation and the top 5 investment holdings are given below:-

0.0

4.0

8.0

12.0

16.0

20.0

(16.0)

(14.0)

(12.0)

(10.0)

(8.0)

(6.0)

(4.0)

(2.0)

0.0

2.0

4.0

Retu

rn %

myEquity Index Fund vs Benchmark

myEquity Index Fund (LHS) Benchmark (LHS)

Tracking Error (RHS)

17.57%

14.82% 12.89% 12.00%

10.41% 9.93%

Utilities Telco & Media Consumer Products & Services

Plantation Industrial Products & Services

Healthcare

my

http://en.wikipedia.org/wiki/Active_risk


Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.5% per annum of the equity market value and 1% of the

remaining Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of sukuk.

Details on Distribution There was no distribution declared for myEquity Index Fund for the period ended 31 December 2018.

Descriptions of any changes in Fund’s Objectives and Strategies There were no material changes in fund’s objectives and strategies for the period ended 31 December 2018.

92.47%

7.53%

Equities

Money Market &

Cash

4.29%

4.38%

4.69%

6.87%

13.24%

Digi.Com Bhd

Sime Darby Plantation Berhad

Axiata Group Berhad


Tenaga Nasional Bhd




myGROWTH FUND Performance Review For the financial year ended 31 December 2018, myGrowth Fund recorded performance of a -11.8% loss in tandem with the negative return of its benchmark, FBMSI which recorded a loss of -13.5%.



myGrowth -11.8% -6.8% -3.9% -11.8% -2.3% -0.8%

Benchmark -13.5% -10.1% -11.8% -13.5% -3.5% -2.5%

Asset Allocation In terms of asset allocation, the fund has invested 63.08% in equity and the remaining is in money market / cash. On equity sectoral allocation, Industrial Products & Services was the top sector the fund has invested in with 11.20% exposure. The details of asset allocation and the top 5 investment holdings are given below:-

(16.0)

(14.0)

(12.0)

(10.0)

(8.0)

(6.0)

(4.0)

(2.0)

0.0

2.0

4.0

Retu

rn (

%)

myGrowth Fund vs Benchmark

myGrowth Fund Benchmark

11.20% 10.33%

9.37%

8.01% 7.61%

5.38%

Industrial Products & Services

Energy Utilities Healthcare Consumer Products & Services

Plantation

my




Details on Distribution There was no distribution declared for myGrowth Fund for the period ended 31 December 2018.


63.08%

36.92%

Equities

Money Market &

Cash

3.38%

3.51%

3.70%

5.30%

5.77%

Yinson Holdings Bhd

Dialog Group Bhd

Bermaz Auto Bhd


Tenaga Nasional Bhd




myBLUE CHIPS FUND Performance Review For the period under review, myBlueChips Fund performance outperformed its benchmark, FBMSI by 438 bps with a loss of -9.1% against its benchmark’s loss of -13.5% as detailed out below:-



myBlue Chips -9.1% -3.8% -0.7% -9.1% -1.3% -0.1%

Benchmark -13.5% -10.1% -11.8% -13.5% -3.5% -2.5%

Asset Allocation In terms of asset allocation, the fund has invested 63.42% in equity and the remaining in money market / cash. On equity sectoral allocation, Industrial Products & Services was the top sector the fund has invested in as most of the blue chip companies are included in this sector. The details of asset allocation and the top 5 investment holdings are given below:-

(16.0)

(14.0)

(12.0)

(10.0)

(8.0)

(6.0)

(4.0)

(2.0)

0.0

2.0

4.0

Retu

rn (

%)

myBlue Chips Fund vs Benchmark

myBlue Chips Fund Benchmark

10.41%

9.39% 9.15%

7.11%

6.03%

5.06%


Plantation Utilities Consumer Products & Services

Healthcare Telco & Media

my




Details on Distribution There was no distribution declared for myBlue Chips Fund for the period ended 31 December 2018.


63.42%

36.58%

Equities

Money Market &

Cash

3.03%

3.40%

3.63%

5.08%

6.12%

Petronas Gas Bhd

Sime Darby Plantation Berhad

Dialog Group Bhd


Tenaga Nasional Bhd




myDIVIDEND FUND Performance Review For the 12 months ending 31 December 2018, the fund performed in tandem with the negative trend of its benchmark FBMSI which fell -13.5% during the year and the myDividend Fund recorded a loss of -10.7%.



myDividend -10.7% -5.6% -1.2% -10.7% -1.9% -0.2%

Benchmark -13.5% -10.1% -11.8% -13.5% -3.5% -2.5%

Asset Allocation In terms of asset allocation, the fund has invested 54.54% in equity and the remaining is in money market/cash. On equity sectoral allocation, Industrial Products & Services was the top sector the fund invested in with 10.21% allocation. The details of asset allocation and the top 5 investment holdings are shown below:-

(16.0)

(14.0)

(12.0)

(10.0)

(8.0)

(6.0)

(4.0)

(2.0)

0.0

2.0

4.0

Retu

rn (

%)

myDividend Fund vs Benchmark

myDividend Fund Benchmark

10.21%

8.65% 7.60%

6.48%

4.90% 4.09%


Utilities Consumer Products & Services

Property Energy Plantation

my




Details on Distribution There was no distribution declared for myDividend Fund for the period ended 31 December 2018.


54.54%

45.46%

Equities

Money Market &

Cash

2.92%

3.45%

3.62%

5.17%

5.21%

IHH Healthcare Bhd

Dialog Group Bhd

Bermaz Auto Bhd

Tenaga Nasional Bhd





myBALANCED FUND Performance Review For the financial year ended 31 December 2018, myBalanced Fund recorded a negative return of -2.0% outperforming its blended benchmark of 40% FBMSI and 60% 12-Month Maybank GIA rate which recorded a loss of -3.3%.



myBalanced -2.0% 5.8% 11.7% -2.0% 1.9% 2.2%

Benchmark -3.3% 2.7% 6.1% -3.3% 0.9% 1.2%

Asset Allocation As at 31 December 2018, the majority of the fund’s asset allocation is towards sukuk in line with its stated asset allocation mandate to invest up to 60% in sukuk. The fund had invested 58.80% in sukuk and remaining in equity (23.24%) and money market/cash (17.96%). The details of asset allocation and the top 5 investment holdings are given below:-

(4.0)

(3.0)

(2.0)

(1.0)

0.0

1.0

2.0

Retr

un

(%

)

myBalanced Fund vs Benchmark

myBalanced Fund Benchmark

58.80%

4.13% 3.97% 3.81% 2.81% 2.23%

Sukuk Energy Healthcare Industrial Product & Services

Consumer Products & Services

Utilities

my


Fees / Charges levied to the fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.2% per annum of the Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of sukuk.

Details on Distribution There was no distribution declared for myBalanced Fund for the period ended 31 December 2018.


58.80%

23.24%

17.96%

Sukuk

Money Market & Cash

Equities

4.65%

4.76%

4.80%

4.82%

5.04%

Malakoff Power Berhad

Bank Islam Malaysia Berhad

MMC Corporation Berhad

Tenaga Nasional Berhad

Jimah East Power Sdn Bhd



SOFT COMMISSION RECEIVED FROM BROKERS

Soft commissions received from brokers may be retained by the Company on behalf of the funds; provided that the services rendered are related to the management of the investment-linked funds and of demonstrable benefit to certificate owners as per the requirements of Clause 6.2 of the Guidelines on Investment-Linked Insurance / Takaful Business. During the financial year under review, the management company had received on behalf of the funds, soft commissions in the form of research materials and investment related publications which are incidental to the investment management of the funds. Meanwhile, all dealings with brokers are executed at competitive market rates.


STATEMENT BY DIRECTORS

In the opinion of the Directors of Manager, the Takaful Investment-Linked Funds (“Funds’’) financial statements set out

on pages 30 to 40, comprising the Statements of Assets and Liabilities as at 31 December 2018 and the related

Statements of Income and Expenditure, Changes in Net Asset Value and cash flow of the Funds for the financial year

ended 31 December 2018 together with the notes thereto, have been drawn up in accordance with the Guidelines on

Investment-Linked Insurance / Takaful Business issued by Bank Negara Malaysia and give true and fair view of the

financial position of the Funds as at 31 December 2018 and their financial performance and the movements in the

Statements of Changes in Net Assets attributable to the unitholders of the Funds for year ended on that date.

Signed in accordance with a resolution of the Directors: ………………………………………………………… Tan Sri Dato' Ahmad Fuzi Haji Abdul Razak ………………………………………………………… Encik Mahadzir Azizan Kuala Lumpur, Date: 25 April 2019


INDEPENDENT AUDITORS’ REPORT to the unitholders of Syarikat Takaful Malaysia Keluarga Berhad’s Investment-Linked funds (Company No. 131646-K) (Incorporated in Malaysia)

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Investment-Linked Funds of Syarikat Takaful Malaysia Keluarga Berhad, which comprise the Statements of Assets and Liabilities as at 31 December 2018, the Statements of Income and Expenditure, the Statements of Changes in Net Asset Value and Cash Flow Statements for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 30 to 40. In our opinion, the accompanying financial statements for the year ended 31 December 2018 are prepared, in all material respects, in accordance with the accounting policies set out in Note 1 to the financial statements and the Guidelines on Investment-Linked Insurance/Takaful Business (BNM/RH/GL 010-15). 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 auditors’ 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 Investment-Linked Funds in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) 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 Auditors’ Report Thereon The Directors of the Manager (“Directors”) are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements of the Investment-Linked Funds and our auditors’ report thereon. Our opinion on the financial statements of the Investment-Linked Funds 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 Investment-Linked Funds, 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 Investment-Linked Funds 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 the

other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Statements The Directors are responsible for the preparation of the financial statements in accordance with the accounting policies set out in Note 1 to the financial statements and the Guidelines on Investment-Linked Insurance/Takaful Business (BNM/RH/GL 010-15). The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Investment-Linked Funds, the Directors are responsible for assessing the ability of the Investment-Linked Funds to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Investment-Linked Funds or to cease operations, or have no realistic alternative but to do so.


Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements 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, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Investment-Linked Funds.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.

Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Investment-Linked Funds to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements of the Investment-Linked Funds or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Investment-Linked Funds to cease to continue as a going concern.

We communicate with the Directors 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 Matter This report is made solely to the unitholders of Investment-Linked Funds of Syarikat Takaful Malaysia Keluarga Berhad, as a body, and for no other purpose. We do not assume responsibility to any other person for the content of this report. KPMG Desa Megat PLT (LLP0010082-LCA & AF 0759) Chartered Accountants 25 April 2019

Petaling Jaya


STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2018

ITTIZAN

ISTIQRAR

myEQUITY

INDEX

myGROWTH

myBLUE

CHIPS

myDIVIDEND

myBALANCED

Note RM RM RM RM RM RM RM

ASSETS

Sukuk

2

2,090,100 3,897,659 - - - - 12,570,096

Quoted Shares 3 4,626,658 1,869,408 30,237,577 6,122,162 5,215,859 5,843,051 4,967,565

Unit Trusts

4 - - - - 84,260 - -

Other Assets 454,481 117,732 2,027,282 450,198 227,315 832,473 411,351

Deposits with

Financial

Institutions

2,505,000

1,983,000

2,463,000

3,405,000

3,069,500

4,391,500

3,849,000

Cash and Cash

Equivalents

290

245

281

500

233

544

251

9,676,529 7,868,044 34,728,140 9,977,860 8,597,167 11,067,568 21,798,263

LIABILITIES

Other Liabilities 217,489 141,271 2,027,747 272,684 240,311 354,181 421,004

217,489 141,271 2,027,747 272,684 240,311 354,181 421,004

Net Asset Value 9,459,040 7,726,773 32,700,393 9,705,176 8,356,856 10,713,387 21,377,259

REPRESENTED

BY

Certificate

Holders Capital

5,547,206

5,922,038

30,732,191

9,379,619

7,578,991

9,935,449

20,136,988

Accumulated

Income Carried

Forward

3,911,834

1,804,735

1,968,202

325,557

777,865

777,938

1,240,271

9,459,040 7,726,773 32,700,393 9,705,176 8,356,856 10,713,387 21,377,259

Number of Units

5,521,031 5,369,889 19,681,344 7,897,059 6,464,041 7,901,669 17,208,878

Net Asset Value

Per Unit

1.7133

1.4389

1.6615

1.2290

1.2928

1.3558

1.2422


STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2017

ITTIZAN

ISTIQRAR

myEQUITY

INDEX

myGROWTH

myBLUE

CHIPS

myDIVIDEND

myBALANCED

Note RM RM RM RM RM RM RM

ASSETS

Sukuk

2 2,332,678 4,134,215 - - - - 12,525,407

Quoted Shares 3 7,555,689 2,073,170 29,666,505 6,986,148 6,499,115 7,609,033 2,550,058

Other Assets 30,136 75,678 1,354,182 527,651 408,420 598,905 547,493

Deposits with

Financial

Institutions

1,323,000

2,112,000

2,737,000

3,016,000

2,152,000

3,366,000

7,404,000

Cash and Cash

Equivalents

36,698

27,524

163,729

28,846

25,236

31,205

36,277

11,278,201 8,422,587 33,921,416 10,558,645 9,084,771 11,605,143 23,063,235

LIABILITIES

Other Liabilities 156,126 134,265 2,478,013 326,476 269,330 393,484 766,068

156,126 134,265 2,478,013 326,476 269,330 393,484 766,068

Net Asset Value 11,122,075 8,288,322 31,443,403 10,232,169 8,815,441 11,211,659 22,297,167

REPRESENTED

BY

Certificate

Holders Capital

6,025,882

6,151,229

26,814,132

8,654,352

7,213,518

9,179,832

20,635,316

Accumulated

Income Carried

Forward

5,096,193

2,137,093

4,629,271

1,577,817

1,601,923

2,031,827

1,661,851

11,122,075 8,288,322 31,443,403 10,232,169 8,815,441 11,211,659 22,297,167

Number of Units

5,784,579 5,525,170 17,453,696 7,340,772 6,193,344 7,383,067 17,600,353

Net Asset Value

Per Unit

1.9227

1.5001

1.8015

1.3939

1.4234

1.5186

1.2669


STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2018

ITTIZAN

ISTIQRAR

myEQUITY

INDEX

myGROWTH

myBLUE

CHIPS

myDIVIDEND

myBALANCED

RM RM RM RM RM RM RM

Income

Gross Dividend Income 193,109 62,046 837,073 195,680 166,261 220,165 106,735

Profit Income:

Sukuk 105,629 188,678 - - - - 633,213

Islamic Investment

Deposits with

Financial

Institutions

48,706

62,599

70,942

109,097

88,128

127,562

186,599

Other Income 81,630 11,622 185,339 93,405 58,903 92,966 9,759

429,074 324,945 1,093,354 398,182 313,292 440,693 936,306

Outgo

Fees (158,559) (122,292) (473,842) (135,115) (116,121) (146,656) (266,985)

Loss on Disposal:

Quoted Shares (1,294,701) (498,878) (644,596) (720,580) (337,581) (751,238) (705,462)

Unrealised Capital Loss (160,173) (36,133) (2,635,985) (794,747) (683,648) (796,688) (385,439)

(1,613,433) (657,303) (3,754,423) (1,650,442) (1,137,350) (1,694,582) (1,357,886)

Excess of Outgo over

Income

(1,184,359)

(332,358)

(2,661,069)

(1,252,260)

(824,058)

(1,253,889)

(421,580)

Undistributed Income

brought forward

5,096,193

2,137,093

4,629,271

1,577,817

1,601,923

2,031,827

1,661,851

Amount Available for

Distribution

3,911,834

1,804,735

1,968,202

325,557

777,865

777,938

1,240,271


carried forward

3,911,834

1,804,735

1,968,202

325,557

777,865

777,938

1,240,271


STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL PERIOD ENDED 31 DECEMBER 2017

ITTIZAN

ISTIQRAR

myEQUITY

INDEX

myGROWTH

myBLUE

CHIPS

myDIVIDEND

myBALANCED


Income

Gross Dividend Income 200,749 55,379 735,282 194,953 183,176 212,115 70,842

Profit Income:

Sukuk 131,301 252,276 - - - - 594,206

Islamic Investment

Deposits with

Financial

Institutions

30,695

40,818

52,065

76,498

58,199

87,703

222,637

Unrealised Capital Gain 681,587 266,480 2,625,859 633,476 584,459 700,547 342,796

Other Income 400 800 - - - - 875

1,044,732 615,753 3,413,206 904,927 825,834 1,000,365 1,231,356

Outgo

Fees (164,813) (123,661) (409,144) (127,595) (114,997) (140,513) (264,553)

Loss on Disposal:

Quoted Shares (103,235) (26,044) (257,394) (84,597) (65,946) (85,568) (68,376)

Sukuk (37,760) (79,680) - - - - (58,200)

Other Outgo (73,854) (41,941) (257,146) (68,829) (64,090) (76,582) (90,207)

(379,662) (271,326) (923,684) (281,021) (245,033) (302,663) (481,336)

Excess of Income over

Outgo

665,070

344,427

2,489,522

623,906

580,801

697,702

750,020


brought forward

4,431,123

1,792,666

2,139,749

953,911

1,021,122

1,334,125

911,831

Amount Available for

Distribution

5,096,193

2,137,093

4,629,271

1,577,817

1,601,923

2,031,827

1,661,851


carried forward

5,096,193

2,137,093

4,629,271

1,577,817

1,601,923

2,031,827

1,661,851


STATEMENTS OF CHANGES IN NET ASSET VALUE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2018

ITTIZAN

ISTIQRAR

myEQUITY INDEX

myGROWTH

myBLUE

CHIPS

myDIVIDEND

myBALANCED


Net Asset Value at the

Beginning of the

Financial Year

11,122,075

8,288,322

31,443,403

10,232,169

8,815,441

11,211,659

22,297,167

Amount Received from

Units Creation

15,129

6,579

6,682,018

1,351,272

878,885

1,596,953

1,217,307

Amount Paid from

Units Cancellation

(493,805)

(235,770)

(2,763,959)

(626,005)

(513,412)

(841,336)

(1,715,635)

Net Outgo (1,184,359) (332,358) (2,661,069) (1,252,260) (824,058) (1,253,889) (421,580)


End of Financial Year

9,459,040

7,726,773

32,700,393

9,705,176

8,356,856

10,713,387

21,377,259

STATEMENTS OF CHANGES IN NET ASSET VALUE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2017

ITTIZAN

ISTIQRAR

myEQUITY INDEX

myGROWTH

myBLUE

CHIPS

myDIVIDEND

myBALANCED



Beginning of the

Financial Year

10,740,005

8,207,842

24,713,653

8,564,487

7,848,172

9,525,116

22,172,878

Amount Received from

Units Creation

11,064

-

7,193,254

1,531,487

990,417

1,766,091

1,384,522

Amount Paid from

Units Cancellation

(294,064)

(263,947)

(2,953,026)

(487,711)

(603,949)

(777,250)

(2,010,253)

Net Income 665,070 344,427 2,489,522 623,906 580,801 697,702 750,020


End of Financial Year

11,122,075

8,288,322

31,443,403

10,232,169

8,815,441

11,211,659

22,297,167


CASH FLOW STATEMENTS FOR FINANCIAL YEAR ENDED 31 DECEMBER 2018

ITTIZAN

ISTIQRAR

myEQUITY

INDEX

myGROWTH

myBLUE

CHIPS

myDIVIDEND

myBALANCED

2018 RM RM RM RM RM RM RM

Cash Flow from

Operating Activities

Outgo Before Taxation (1,184,359) (332,358) (2,661,069) (1,252,260) (824,058) (1,253,889) (421,580)

Adjustment for:

Profit Income

(154,335) (251,277) (70,942) (109,097) (88,128) (127,562) (819,812)

Gross Dividend

Income

(193,109)

(62,046)

(837,073)

(195,680)

(166,261)

(220,165)

(106,735)

Loss on Disposal 1,294,701 498,878 644,596 720,580 337,581 751,238 705,462

Unrealised Capital Loss 160,173 36,133 2,635,985 794,747 683,648 796,688 385,439

Outgo from Operations

Before Changes in

Operating Assets and

Liabilities

(76,929)

(110,670)

(288,503)

(41,710)

(57,218)

(53,690)

(257,226)

Proceeds from Disposal of

Investment

2,366,441

1,206,743

2,112,436

2,157,554

886,582

2,053,960

1,193,610

Purchase of Investment (1,831,706) (1,172,436) (5,690,089) (3,197,895) (1,626,315) (2,861,404) (1,191,707)

(Increase) / Decrease in

Other Assets

(424,345)

(42,054)

(673,100)

77,453

181,105

(233,568)

136,142

Increase / (Decrease) in

Other Liabilities

61,363

7,006

(450,266)

(53,792)

(29,019)

(39,303)

(345,064)

Cash generated / (used)

in Operations

94,824

(111,411)

(4,989,522)

(1,058,390)

(644,865)

(1,134,005)

(464,245)

Profit Income Received 154,335 251,277 70,942 109,097 88,128 127,562 819,812

Gross Dividend Income

Received

193,109

62,046

837,073

195,680

166,261

220,165

106,735

Net Cash generated from

/ (used in) Operating

Activities

442,268

201,912

(4,081,507)

(753,613)

(390,476)

(786,278)

462,302

Cash Flow from

Financing Activities

Proceeds from Creations

of Units

15,129

6,579

6,682,018

1,351,272

878,885

1,596,953

1,217,307

Payment for Cancellation

of Units

(493,805)

(235,770)

(2,763,959)

(626,005)

(513,412)

(841,336)

(1,715,635)

Net Cash (used in) /

generated from


(478,676)

(229,191)

3,918,059

725,267

365,473

755,617

(498,328)

Net Decrease in Cash

and Cash Equivalents

(36,408)

(27,279)

(163,448)

(28,346)

(25,003)

(30,661)

(36,026)

Cash and Cash

Equivalents at 1

January 2018

36,698

27,524

163,729

28,846

25,236

31,205

36,277

Cash and Cash

Equivalents at 31

December 2018

290

245

281

500

233

544

251


CASH FLOW STATEMENTS FOR FINANCIAL YEAR ENDED 31 DECEMBER 2017

ITTIZAN

ISTIQRAR

myEQUITY

INDEX

myGROWTH

myBLUE

CHIPS

myDIVIDEND

myBALANCED

2017 RM RM RM RM RM RM RM

Cash Flow from

Operating Activities

Income Before Taxation 665,070 344,427 2,489,522 623,906 580,801 697,702 750,020

Adjustment for:

Profit Income

(161,996) (293,094) (52,065) (76,498) (58,199) (87,703) (816,843)

Gross Dividend

Income

(200,749)

(55,379)

(735,282)

(194,953)

(183,176)

(212,115)

(70,842)

Profit on Disposal 140,995 105,724 257,394 84,597 65,946 85,568 126,576

Unrealised Capital Gain (681,587) (266,480) (2,625,859) (633,476) (584,459) (700,547) (342,796)

Outgo from Operations

Before Changes in

Operating Assets and

Liabilities

(238,267)

(164,802)

(666,290)

(196,424)

(179,087)

(217,095)

(353,885)

Proceeds from Disposal of

Investment

604,142

939,210

1,993,646

2,205,932

2,063,554

2,431,548

2,366,087

Purchase of Investment (481,384) (892,682) (7,441,693) (3,117,002) (2,343,337) (3,312,302) (2,229,566)

Decrease / (Increase) in

Other Assets

63,890

42,664

750,494

(191,425)

(171,803)

(201,193)

(63,537)

(Decrease) / Increase in

Other Liabilities

(5,601)

17,894

428,339

(568)

15,349

27,143

49,867

Cash used in Operations

(57,220)

(57,716)

(4,935,504)

(1,299,487)

(615,324)

(1,271,899)

(231,034)

Profit Income Received 161,996 293,094 52,065 76,498 58,199 87,703 816,843

Gross Dividend Income

Received

200,749

55,379

735,282

194,953

183,176

212,115

70,842

Net Cash generated from

/ (used in) Operating

Activities

305,525

290,757

(4,148,157)

(1,028,036)

(373,949)

(972,081)

656,651

Cash Flow from


Proceeds from Creations

of Units

11,064

-

7,193,254

1,531,487

990,417

1,766,091

1,384,522

Payment for Cancellation

of Units

(294,064)

(263,947)

(2,953,026)

(487,711)

(603,949)

(777,250)

(2,010,253)

Net Cash (used in) /

generated from


(283,000)

(263,947)

4,240,228

1,043,776

386,468

988,841

(625,731)

Net Increase in Cash and

Cash Equivalents

22,525

26,810

92,071

15,740

12,519

16,760

30,920

Cash and Cash

Equivalents at 1

January 2017

14,173

714

71,658

13,106

12,717

14,445

5,357

Cash and Cash

Equivalents at 31

December 2017

36,698

27,524

163,729

28,846

25,236

31,205

36,277


NOTES TO THE FINANCIAL STATEMENTS

The Manager and its principal activities The Manager is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities Berhad. The address of its registered office and principal place of business of the Company is located at: 26

th Floor, Annexe Block

Menara Takaful Malaysia No.4, Jalan Sultan Sulaiman 50000 Kuala Lumpur The Manager is principally engaged in managing family and general takaful businesses. The family takaful business includes investment-linked products. The financial statements were approved by the Board of Directors of the Manager on 25 April 2019. 1. Summary of significant accounting policies

The accounting policies set out below have been applied consistently to periods presented in these financial statements, unless otherwise stated.

(a) Basis of accounting

The financial statements have been prepared in accordance with the notes set out in Note 1, the Guidelines on Investment-Linked Insurance/Takaful Business (issued by Bank Negara Malaysia) and the requirements of the certificate document.

(b) Functional and presentation currency

These financial statements are presented in Ringgit Malaysia (RM), which is the Funds’ functional currency.

(c) Investments

Quoted shares, which are Shariah approved, are stated at the closing market prices as at the date of the statement of assets and liabilities. Sukuk are valued at cost adjusted for amortisation of premiums or accretion of discounts over their par values at the time of acquisition using the effective yield method. The carrying value is subsequently revalued to reflect their fair values by using price quoted by Bond Pricing Agency Malaysia. Any increase or decrease in value of investments at each reporting date is taken into Statement of Income and Expenditure.

(d) Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and bank balances.

(e) Net Creation of Units Net creation of units represents contributions paid by participants as payment for new certificate/top up for existing certificate. Net creation of units is recognized on a receipt basis.


(f) Net Cancellation of Units

Net cancellation of units represents cancellation of units arising from the surrenders and withdrawals by participant. Net cancellation of units is recognized upon surrendering of/withdrawal from the related takaful certificates.

.

(g) Income Recognition Dividend income is recognized when the right to receive payment is established. Profit income is recognized on time proportion basis that takes into account the effective yield of the asset. Gain or loss of disposal of quoted shares and sukuk are credited or charged to the Statement of Income and Expenditure.

(h) Investment management fees

Investment management fees are calculated in accordance with the provisions of the certificate document.

2. Sukuk

31 December 2018 RM

31 December 2017 RM

(i) Ittizan

Cost 2,118,031 2,373,936

Unrealised capital loss (27,931) (41,258)

Market value 2,090,100 2,332,678

(ii) Istiqrar

Cost 3,955,627 4,213,412

Unrealised capital loss (57,968) (79,197)

Market value 3,897,659 4,134,215

(iii) myBalanced

Cost 12,484,590 12,482,980

Unrealised capital gain 85,506 42,427

Market value 12,570,096 12,525,407


3. Quoted shares

31 December 2018

RM

31 December 2017

RM

(i) Ittizan

Cost 4,771,748 7,527,279

Unrealised capital (loss) / gain (145,090) 28,410

Market value 4,626,658 7,555,689

(ii) Istiqrar

Cost 1,886,210 2,032,610


Market value 1,869,408 2,073,170

(iii) myEquity Index

Cost 31,396,565 28,189,508

Unrealised capital (loss) / gain (1,158,988) 1,476,997

Market value 30,237,577 29,666,505

(iv) myGrowth

Cost 6,561,256 6,630,495


Market value 6,122,162 6,986,148

(v) myBlue Chips

Cost 5,558,954 6,159,485


Market value 5,215,859 6,499,115

(vi) myDividend

Cost 6,220,487 7,189,781


Market value 5,843,051 7,609,033

(vii) myBalanced

Cost 5,329,226 2,483,201


Market value 4,967,565 2,550,058


4. Unit Trusts

31 December 2018 RM

31 December 2017 RM

(i) myBlue Chips

Cost 85,183 -

Unrealised capital loss (923) -

Market value 84,260 -

5. Financial Instruments The Funds are exposed to market, credit, liquidity and profit rate risks.

Market risk Market risk arises when the value of securities fluctuates in response to the activities of the individual companies, general market or economic conditions. The market risk is managed through portfolio diversification and asset allocation whereby the securities exposure will be reduced in the event of anticipated market weakness. Credit risk Credit risk refers to the ability of an issuer or a counterparty to make timely profit and principal payments. The maximum exposure to credit risk is represented by the carrying amount of each financial asset as disclosed in the Statement of Assets and Liabilities.

Liquidity risk

This may come about when realisation of units is required in excess of normal amounts. The extent of exposure to the risk is contained in provisions set out in the prospectus.

Profit rate risk When the profit rate rises, Sukuk prices fall and vice versa. The market risk is monitored through periodic reviews of its asset and liability positions with the objective to limit the net changes in the value of assets and liabilities arising from profit rate movements. Shariah risk Shariah risk arises when transaction entered by Islamic Financial Institution (IFI) are declared impermissible. Any profit sourced from shariah non-compliance activities shall be cleansed in order to retain compliance and it also will impact the reputation of IFI.

Fair values The fair values of investments have been disclosed in notes 2 and 3. The basis of deriving the fair values is disclosed in Note 1(c).


DETAILS OF INVESTMENTS

ITTIZAN

Security Name Number of

Units Total Cost Market Value

% of NAV

Construction

Gamuda Bhd 47,300 230,962 110,682 1.17

Muhibbah Engineering (M) Bhd 73,000 177,363 203,670 2.15

Consumer

Bermaz Auto Bhd 93,200 212,505 200,380 2.12

Sime Darby Berhad 94,452 197,817 226,685 2.39

Energy

Dialog Group Bhd 86,664 146,699 269,525 2.85

Hibiscus Petroleum Bhd 161,000 147,359 135,240 1.43

Serba Dinamik Holdings Berhad 37,000 130,984 139,860 1.48

Yinson Holdings Bhd 24,000 106,457 100,800 1.07

Health Care

IHH Healthcare Bhd 42,000 250,084 226,380 2.39

KPJ Healthcare Berhad 130,000 142,804 135,200 1.43

Supermax Corp Bhd 34,000 139,341 118,320 1.25

Top Glove Corp Bhd 46,000 144,531 257,600 2.72

Industrial Products

Cypark Resources Bhd 67,050 98,417 105,939 1.12

Pestech International Bhd 63,300 97,487 62,667 0.66

Petronas Chemicals Group Bhd 33,000 218,540 306,570 3.24

V.S. Industry Berhad 63,000 106,111 45,990 0.49

Plantation

Genting Plantations Bhd 30,000 318,946 295,800 3.13

Sime Darby Plantation Berhad 13,452 76,823 64,032 0.68

Sarawak Oil Palms Bhd 44,700 211,689 93,870 0.99

Property

LBS Bina Group Bhd 95,000 86,259 60,800 0.64

SP Setia Bhd 30,800 102,993 71,764 0.76

Technology

Globetronics Technology Bhd 109,333 279,360 191,333 2.02

Inari Amertron Bhd 189,000 184,281 283,500 3.00

Telecommunications & Media

Axiata Group Berhad 51,994 274,355 204,336 2.16

Utilities

Gas Malaysia Bhd 36,400 106,455 103,012 1.09

Petronas Gas Bhd 8,900 196,626 170,880 1.81

Tenaga Nasional Bhd 32,487 386,500 441,823 4.67

Total Malaysian Equities 1,737,032 4,771,748 4,626,658 48.91




% of NAV

Sukuk

Electric/Power Generation

Kapar Energy Ventures Sdn Bhd 200,000 204,800 202,176 2.14

Malakoff Power Berhad 200,000 207,240 220,730 2.33

TNB Northern Energy 200,000 200,000 196,026 2.07

Financial Services

CIMB Islamic Bank Berhad 200,000 219,540 202,350 2.14

National Bank Of Abu Dhabi 200,000 204,000 202,850 2.14

Ranhill Powertron II Sdn Bhd 200,000 220,080 209,582 2.22

Oil & Gas

Alam Maritim Resources Bhd 200,000 200,000 200,000 2.11


BGSM Management Sdn Bhd 239,999 263,231 245,574 2.60

Transportation & Toll Roads

Cerah Sama Sdn Bhd 200,000 197,000 207,712 2.20

Projek Lebuhraya Usahasama Berhad 200,000 202,140 203,100 2.15

Total Malaysian Sukuk 2,039,999 2,118,031 2,090,100 22.10

Total Malaysian Equities & Sukuk 3,777,031 6,889,779 6,716,758 71.01


ISTIQRAR



% of NAV

Construction

Gamuda Bhd 14,000 71,891 32,760 0.42

Muhibbah Engineering(M) Bhd 31,600 81,417 88,164 1.14

Consumer Products & Service

Bermaz Auto Bhd 42,600 96,461 91,590 1.19


Energy

Dialog Group Bhd 32,608 67,467 101,411 1.31




Health Care









Plantation


Property


Matrix Concepts Holdings Bhd 40,000 81,333 75,200 0.97

Technology





Utilities

Petronas Gas Bhd 1,200 25,962 23,040 0.30


Total Malaysian Equities 815,184 1,886,210 1,869,408 24.19




% of NAV

Sukuk




Sarawak Energy Berhad 400,000 413,920 407,972 5.28

TNB Northern Energy 400,000 400,000 392,052 5.07

Oil & Gas


Financial Services











myEQUITY Index



% of NAV

Construction

Gamuda Bhd 185,400 895,356 433,836 1.33

IJM Corp Bhd 275,000 885,429 445,500 1.36


Fraser & Neave Holdings Bhd 8,000 197,612 268,000 0.82

Nestle (Malaysia) Berhad 5,000 535,501 737,000 2.25

Padini Holdings Berhad 29,000 171,666 101,790 0.31

Petronas Dagangan Bhd 25,000 582,613 662,500 2.02

PPB Group Berhad 57,320 776,505 1,007,686 3.08

QL Resources Bhd 59,000 355,659 401,790 1.23


UMW Holdings Bhd 56,000 309,683 306,320 0.94

Energy

Dialog Group Bhd 391,984 737,063 1,219,070 3.73

Sapura Energy RCPSI Rights 148,800 - - 0.00

Sapura Energy Rights Issue 620,000 - - 0.00

Sapura Energy Bhd 372,000 686,736 107,880 0.33



Health Care

Hartalega Holdings Bhd 125,000 519,028 767,500 2.35

IHH Healthcare Bhd 237,000 1,414,896 1,277,430 3.91

Kossan Rubber Industries 52,000 214,190 225,680 0.69




Lotte Chemical Titan Holding Berhad 45,200 237,075 208,824 0.64

Petronas Chemicals Group Bhd 241,700 1,653,702 2,245,393 6.87

Press Metal Aluminium Holdings Berhad 159,600 346,845 770,868 2.36

Sunway Bhd 120,816 178,988 177,600 0.54

Plantation


IOI Corporation Berhad 272,300 1,230,189 1,211,735 3.71

Kuala Lumpur Kepong Bhd 40,400 941,142 998,688 3.05

Sime Darby Plantation Berhad 300,714 1,651,716 1,431,399 4.38

Property

IOI Properties Group Bhd 149,875 298,331 230,808 0.71

Sime Darby Property Berhad 283,714 412,007 282,295 0.86

SP Setia Bhd 101,800 340,409 237,194 0.73

Technology


MYEG Services Bhd 171,500 211,904 167,213 0.51




% of NAV


Axiata Group Berhad 390,133 2,198,095 1,533,222 4.69

Digi.Com Bhd 312,000 1,419,204 1,404,000 4.29

Maxis Bhd 233,500 1,474,917 1,249,224 3.82

Telekom Malaysia Bhd 169,271 1,033,342 450,261 1.38

Time Dotcom Bhd 26,000 194,056 210,600 0.64

Transportation & Logistics

MISC Bhd 122,500 935,082 820,750 2.51

Westports Holdings Bhd 85,000 350,090 307,700 0.94

Utilities

Malakoff Corp Bhd 184,500 285,720 147,600 0.45

Petronas Gas Bhd 66,100 1,407,300 1,269,120 3.88

Tenaga Nasional Bhd 318,325 4,271,267 4,329,220 13.24



myGROWTH



% of NAV

Construction

Gamuda Bhd 62,300 308,282 145,782 1.50

IJM Corp Bhd 75,300 254,104 121,986 1.26



Bermaz Auto Bhd 167,100 375,981 359,265 3.70



Energy

Dialog Group Bhd 109,512 210,343 340,582 3.51




Health Care











Plantation




Property


Technology





Telekom Malaysia Bhd 16,028 104,265 42,634 0.44

Time Dotcom Bhd 10,000 80,479 81,000 0.83

Utilities

Gas Malaysia Bhd 53,500 156,793 151,405 1.56

Petronas Gas Bhd 10,300 231,973 197,760 2.04




myBLUECHIPS



% of NAV

Construction

Gamuda Bhd 56,000 276,747 131,040 1.57

IJM Corp Bhd 92,300 280,179 149,526 1.79


Fraser & Neave Holdings Bhd 2,000 74,968 67,000 0.80


PPB Group Berhad 4,800 79,520 84,384 1.01


Energy

Dialog Group Bhd 97,512 184,218 303,262 3.63

Health Care

Hartalega Holdings Bhd 7,000 40,922 42,980 0.51








Press Metal Aluminium Holdings Berhad 19,000 61,552 91,770 1.10


Plantation


IJM Plantations Bhd 16,200 59,198 22,681 0.27

IOI Corporation Berhad 40,400 174,789 179,780 2.15



Property

IOI Properties Group Bhd 24,000 41,991 36,960 0.44

Sime Darby Property Berhad 103,756 151,665 103,237 1.24

SP Setia Bhd 38,600 119,329 89,938 1.08

UOA Development Bhd 45,000 108,172 95,400 1.14

Technology




Maxis Bhd 11,700 77,769 62,595 0.75

Telekom Malaysia Bhd 26,311 171,146 69,987 0.84

Time Dotcom Bhd 9,100 75,258 73,710 0.88


Total Malaysian Unit Trusts 11,000 85,183 84,260 1.01

Total Malaysian Equities & Unit Trusts 1,383,941 5,644,137 5,300,119 63.42



% of NAV


MISC Bhd 17,700 121,189 118,590 1.42


Utilities Petronas Gas Bhd 13,200 293,547 253,440 3.03



Unit Trusts Real Estate Investment Trusts

KLCCP Stapled Group 11,000 85,183 84,260 1.01


myDIVIDEND



% of NAV

Construction

Gamuda Bhd 67,500 333,844 157,950 1.47

IJM Corp Bhd 37,500 127,002 60,750 0.57


Bermaz Auto Bhd 180,400 405,767 387,860 3.62



Energy

Dialog Group Bhd 118,800 224,317 369,468 3.45


Health Care







Sunway Bhd 36,000 63,803 52,920 0.49


Plantation




Property


Matrix Concepts Holdings Bhd 135,000 278,563 253,800 2.37

SP Setia Bhd 50,000 154,348 116,500 1.09

UOA Development Bhd 71,000 171,239 150,520 1.41

Technology





Time Dotcom Bhd 9,000 77,326 72,900 0.68


MISC Bhd 17,700 123,982 118,590 1.11

Utilities

Gas Malaysia Bhd 57,900 169,670 163,857 1.53

Petronas Gas Bhd 10,900 242,263 209,280 1.95




myBALANCED



% of NAV

Construction

Gamuda Bhd 17,900 91,569 41,886 0.20



Bermaz Auto Bhd 135,300 299,146 290,895 1.36


Energy

Dialog Group Bhd 71,304 184,594 221,755 1.04




Health Care










Plantation



Property


Technology







Utilities

Gas Malaysia Bhd 89,600 261,488 253,568 1.19






% of NAV

Sukuk


Jimah East Power Sdn Bhd 1,000,000 1,056,640 1,078,150 5.04



Sarawak Energy Berhad 850,000 892,450 890,426 4.17

Tanjung Bin Energy Issuer Berhad 500,000 530,600 534,995 2.50

Tenaga Nasional Berhad 1,000,000 1,000,000 1,031,390 4.82

TNB Northern Berhad 450,000 439,160 441,059 2.06

Financial Services


Bank Islam Malaysia Berhad 1,000,000 1,018,080 1,018,090 4.76



Oil & Gas





ANIH Berhad 500,000 515,400 513,735 2.40


MMC Corporation Berhad 1,000,000 1,031,800 1,026,930 4.80

Northport Malaysia Berhad 500,000 516,150 521,650 2.44

Projek Lebuhraya Usahasama Berhad 850,000 861,255 868,010 4.06




COMPARATIVE PERFORMANCE TABLE

ITTIZAN

Portfolio Composition 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14

(%) (%) (%) (%) (%)

a. Equities: 48.91 67.93 68.49 69.44 58.01

● Construction 3.32 7.12 7.52 7.57 1.86

● Consumer Products & Services 4.51 2.52 2.24 0.69 1.97

● Energy 6.83 - - - -

● Healthcare 7.79 - - - -

● Industrial Products & Services 5.51 9.99 9.90 8.10 2.45

● Infrastructure - - 2.30 3.20 2.96

● Plantation 4.80 15.17 12.59 11.92 3.97

● Property 1.40 4.36 2.74 1.31 2.21

● Technology 5.02 5.69 2.95 2.03 -

● Telecommunications & Media 2.16 - - - -

● Utilities 7.57 - - - -

● Trading/Services - 22.80 28.07 34.61 42.59

● Islamic REITs - 0.01 0.01 0.00 -

● Warrants - 0.28 0.18 - -

b. Sukuk 22.10 20.97 23.58 29.50 22.84

c. Money Market & Cash 28.99 11.10 7.93 1.06 19.15

TOTAL 100.00 100.00 100.00 100.00 100.00

31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14

Total NAV (RM) 9,459,040 11,122,075 10,740,005 22,977,064 23,385,211

Number of units 5,521,031 5,784,579 5,936,535 12,248,713 12,518,467

NAV per Unit (RM) 1.713 1.923 1.809 1.876 1.868

Highest NAV (RM) 1.970 1.923 1.891 1.953 1.934

Lowest NAV (RM) 1.690 1.807 1.787 1.714 1.802

Total Annual Return (% p.a) a) Capital Growth -10.9% 8.6% -1.5% 2.6% 1.5%

b) Income Distributions - - - - -

Average Annual Return : One-Year -10.9% 8.6% -1.5% 2.6% 1.5%

Three-Year -1.6% 3.1% 0.9% 5.4% 7.9%

Five-Year -0.1% 4.6% 4.9% 6.3% 8.5%

Benchmark Performance (70% FBM Shariah Index : 30% 1-Month GIA Rates Maybank)

Average Annual Return : One-Year -8.6% 8.5% -3.1% 2.7% -2.1%

Three-Year -1.3% 2.6% -0.9% 3.4% 5.6%

Five-Year -0.7% 3.1% 3.2% 4.4% 6.4%


ISTIQRAR

Portfolio Composition 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14

(%) (%) (%) (%) (%)

a. Equities: 24.19 25.01 24.33 33.92 31.20

● Construction 1.56 2.71 2.77 3.87 0.88


● Energy 4.34 - - - -



● Infrastructure - 0.00 0.84 1.58 1.86

● Plantation 1.15 5.17 4.12 5.63 2.11

● Property 1.84 1.58 0.98 0.66 1.14

● Technology 2.13 2.72 1.38 1.02 -


● Utilities 2.69 - - - -


● Islamic REITs - 0.00 0.00 0.00 22.69

● Warrants - 0.11 0.10 - -

b. Sukuk 50.44 49.88 60.19 52.10 52.00


TOTAL 100.00 100.00 100.00 100.00 100.00


Total NAV (RM) 7,726,773 8,288,322 8,207,842 12,410,092 12,400,829

Number of units 5,369,889 5,525,170 5,705,443 8,611,777 8,751,945

NAV per Unit (RM) 1.439 1.500 1.439 1.441 1.417

Highest NAV (RM) 1.515 1.500 1.467 1.459 1.430

Lowest NAV (RM) 1.429 1.439 1.420 1.372 1.372

Total Annual Return (% p.a) a) Capital Growth -4.1% 6.3% 1.2% 3.5% 2.7%


Average Annual Return : One-Year -4.1% 6.3% 1.2% 3.5% 2.7%

Three-Year 1.1% 3.7% 2.5% 4.4% 5.2%

Five-Year 1.9% 4.1% 4.0% 4.7% 5.2%

Benchmark Performance (30% FBM Shariah Index : 70% 1-Month GIA Rates Maybank)


Three-Year 1.4% 3.1% 1.5% 3.2% 4.0%

Five-Year 1.6% 3.2% 3.2% 3.6% 4.1%


Portfolio Composition

myEQUITY INDEX


(%) (%) (%) (%) (%)

a. Equities: 92.47 94.35 92.00 93.47 77.61

● Construction 2.69 5.93 5.85 5.44 5.58


● Energy 5.07 - - - -



● Infrastructure - 0.64 5.23 5.79 4.49

● Plantation 12.00 13.46 8.85 7.72 5.04

● Property 2.30 4.64 2.59 3.31 2.94

● Technology 1.34 1.57 0.54 1.10 -


● Transportation & Logistics 3.45 - - - -

● Utilities 17.57 - - - -


● Islamic REITs - 0.97 0.91 0.81 -

● Warrants - - - - 0.02

b. Sukuk - - - - -


TOTAL 100.00 100.00 100.00 100.00 100.00


Total NAV (RM) 32,700,393 31,443,403 24,713,653 21,199,201 15,781,182

Number of units 19,681,344 17,453,696 14,990,982 12,187,734 9,160,411

NAV per Unit (RM) 1.662 1.802 1.649 1.739 1.723

Highest NAV (RM) 1.853 1.802 1.724 1.828 1.785

Lowest NAV (RM) 1.607 1.648 1.621 1.523 1.625




Three-Year -0.9% 2.7% 0.1% 8.2% 12.9%

Five-Year 0.6% 6.0% 6.9% 9.2% 12.2%

Benchmark Performance (FBM Shariah Index)


Three-Year -3.5% 2.1% -2.7% 3.6% 6.7%

Five-Year -2.5% 2.9% 3.1% 4.9% 8.0%



myGROWTH


(%) (%) (%) (%) (%)

a. Equities: 63.08 68.28 72.34 78.90 81.63

● Construction 3.85 9.02 7.88 7.02 5.11


● Energy 10.33 - - - -



● Infrastructure - 0.89 3.14 3.39 4.13

● Plantation 5.38 11.25 10.96 13.32 5.13

● Property 1.25 3.11 0.42 0.46 3.52

● Technology 2.58 4.67 2.08 2.94 -


● Utilities 9.37 - - - -


● Islamic REITs - 0.38 0.46 0.01 -

● Warrants - - - - -

b. Sukuk - - - - -


TOTAL 100.00 100.00 100.00 100.00 100.00


Total NAV (RM) 9,705,176 10,232,169 8,564,487 8,003,942 7,013,066

Number of units 7,897,059 7,340,772 6,559,814 5,912,989 5,177,770

NAV per Unit (RM) 1.229 1.394 1.306 1.354 1.355

Highest NAV (RM) 1.433 1.394 1.355 1.443 1.455

Lowest NAV (RM) 1.207 1.303 1.290 1.200 1.300




Three-Year -2.3% 2.5% 0.0% 7.3% 9.9%

Five-Year -0.8% 5.5% 5.6% 6.8% 8.4%



Three-Year -3.5% 2.1% -2.7% 3.6% 6.7%

Five-Year -2.5% 2.9% 3.1% 4.9% 8.0%



myBLUE CHIPS


(%) (%) (%) (%) (%)

a. Equities: 63.42 73.72 75.49 80.29 81.25

● Construction 3.36 9.60 8.27 7.21 5.04


● Energy 3.63 - - - -



● Infrastructure - 0.94 3.20 3.34 4.11

● Plantation 9.39 12.27 11.51 13.65 5.96

● Property 3.90 3.20 0.38 0.41 3.28

● Technology 2.39 5.20 2.30 3.17 -



● Utilities 9.15 - - - -


● Islamic REITs 1.01 0.42 0.48 0.01 -


b. Sukuk - - - - -


TOTAL 100.00 100.00 100.00 100.00 100.00


Total NAV (RM) 8,356,856 8,815,441 7,848,172 7,547,029 6,832,540

Number of units 6,464,041 6,193,344 5,912,014 5,471,230 4,955,050

NAV per Unit (RM) 1.293 1.423 1.328 1.379 1.379

Highest NAV (RM) 1.467 1.423 1.380 1.452 1.452

Lowest NAV (RM) 1.265 1.325 1.312 1.324 1.324




Three-Year -1.3% 2.7% 0.0% 7.5% 11.5%

Five-Year -0.1% 5.6% 6.6% 7.6% 8.9%



Three-Year -3.5% 2.1% -2.7% 3.6% 6.7%

Five-Year -2.5% 2.9% 3.1% 4.9% 8.0%



myDIVIDEND


(%) (%) (%) (%) (%)

a. Equities: 54.54 67.87 70.90 77.63 82.14

● Construction 2.04 8.90 7.64 6.88 4.51


● Energy 4.90 - - - -



● Infrastructure - 0.73 2.94 3.19 5.38

● Plantation 4.09 10.94 10.48 12.81 5.10

● Property 6.48 3.10 0.39 0.44 3.13

● Technology 3.66 4.60 2.03 2.89 -



● Utilities 8.65 - - - -


● Islamic REITs - 0.39 0.46 0.02 2.72


b. Sukuk - - - - -


TOTAL 100.00 100.00 100.00 100.00 100.00


Total NAV (RM) 10,713,387 11,211,659 9,525,116 8,791,957 7,461,149

Number of units 7,901,669 7,383,067 6,706,536 5,975,763 5,036,643

NAV per Unit (RM) 1.356 1.519 1.420 1.471 1.481

Highest NAV (RM) 1.561 1.519 1.472 1.568 1.539

Lowest NAV (RM) 1.332 1.418 1.403 1.310 1.400




Three-Year -1.9% 2.4% 0.5% 7.4% 12.8%

Five-Year -0.2% 5.5% 7.2% 9.2% 10.3%



Three-Year -3.5% 2.1% -2.7% 3.6% 6.7%

Five-Year -2.5% 2.9% 3.1% 4.9% 8.0%



myBALANCED


(%) (%) (%) (%) (%)

a. Equities: 23.24 11.44 10.76 37.06 31.84

● Construction 1.08 1.26 1.27 4.05 1.14


● Energy 4.13 - - - -



● Infrastructure

0.00 0.40 1.72 1.96

● Plantation 0.87 2.38 1.82 6.37 1.85

● Property 0.86 0.46 0.22 0.66 1.27

● Technology 2.02 1.06 0.34 1.04 -



● Utilities 2.23 - - - -


● Islamic REITs - - - 0.01 1.08

● Warrants - 0.03 0.02 - -

b. Sukuk 58.80 56.17 50.13 42.07 35.20


TOTAL 100.00 100.00 100.00 100.00 100.00


Total NAV (RM) 21,377,259 22,297,167 22,172,878 7,656,683 6,725,771

Number of units 17,208,878 17,600,353 18,120,077 6,352,300 5,668,099

NAV per Unit (RM) 1.242 1.267 1.224 1.205 1.187

Highest NAV (RM) 1.289 1.267 1.224 1.222 1.202

Lowest NAV (RM) 1.234 1.224 1.186 1.146 1.147

Total Annual Return (% p.a) a) Capital Growth -2.0% 5.3% 2.5% 2.9% 2.6%



Three-Year 1.9% 3.6% 2.6% 5.2% 6.8%

Five-Year 2.2% 4.7% 5.2% 5.5% -



Three-Year 0.9% 3.0% 1.1% 3.5% 4.7%

Five-Year 1.2% 3.3% 3.4% 4.0% -

KELUARGA BERHAD - Takaful€¦ · Invest primarily in selected Shariah-compliant equities that...

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