OPUS MONEY PLUS FUND

OPUS MONEY PLUS FUND

ANNUAL REPORT

FOR THE FINANCIAL YEAR ENDED30 JUNE 2021

Opus Asset Management Sdn. Bhd.


CONTENTS PAGE

Fund Information 1

Fund Performance Data 2

Manager’s Report 4

Statement by the Manager 8

Trustee's Report 9

Independent Auditors' Report 10

Financial Statements

Statement of Financial Position 14

Statement of Comprehensive Income 15

Statement of Changes in Net Asset Value 16

Statement of Cash Flows 17

Summary of Significant Accounting Policies 18

Notes to Financial Statements 28

Corporate Information 54


FUND INFORMATION

Fund name Opus Money Plus Fund

Type (Category) Income (Money Market)

Fund's Launch Date 28 September 2018

Financial Year End 30 June

Investment Objective

Benchmark Maybank 1-month fixed deposit rate.

Distribution Policy

Breakdown of unit holdings as at 30 June 2021

Size of holdings (units)No. of unit

holdersPercentage of

UnitholdersNo. of units

heldPercentage of

units held0-5,000 255 65.22 496,668 5.62 5,001-10,000 69 17.65 472,958 5.35 10,001-50,000 53 13.55 1,115,425 12.63 50,001-500,000 11 2.81 2,175,741 24.64 500,001 and above 3 0.77 4,571,965 51.76 Total 391 100.00 8,832,757 100.00

The Fund seeks to achieve higher returns than 1-month fixed depositrate and to provide liquidity while preserving capital*.* Opus Money Plus Fund is neither a capital guaranteed fund nor acapital protected fund.

The Fund intends to distribute income, if any, at least once a year.

1


FUND PERFORMANCE DATA

Fund Performance Data

As at As at As at 30-Jun-21 30-Jun-20 30-Jun-19% of NAV % of NAV % of NAV

Portfolio Composition:Unquoted fixed income securities 74.35 87.53 76.17Cash and cash equivalents 25.65 12.47 23.83Total 100.00 100.00 100.00

Total Net Asset Value (NAV) (RM) 8,843,391 10,972,954 9,626,530 Units in circulation (million) 8,832,757 10,932,364 9,525,404 NAV per unit (RM) 1.0012 1.0037 1.0106

01.07.2020 01.07.2019 28.09.2018to 30.06.2021 to 30.06.2020 to 30.06.2019

Highest NAV per unit* 1.0084 1.0179 1.0147 Lowest NAV per unit* 1.0002 1.0034 1.0000

Return of the Fund (%) 1.85 3.30 2.70- Capital growth (%) -0.25 -0.66 1.04- Income return (%) 2.10 3.99 1.64Gross distribution per Unit (sen) 2.09 3.95 1.65Net distribution per Unit (sen) 2.09 3.95 1.65Management Expense Ratio (%) 0.38 0.38 0.28Portfolio Turnover Ratio (times) 2.68 2.04 1.21

*ex-distribution

Basis of calculation and assumption made in calculating the returns:Capital return = (End NAV per Unit / Beginning NAV per unit) - 1 Income return = Income distribution per Unit / NAV per Unit ex-dateTotal return = (1 + Capital return) x (1 + Income return) - 1

2


FUND PERFORMANCE DATA (continued)

Performance of the Fund

1 Year 2 YearsSince Inception

Date @01.07.2020 to

30.06.202101.07.2019 to

30.06.202118.10.2018 to

30.06.20211.85% 5.21% 8.06%1.51% 4.21% 6.44%0.34% 1.00% 1.62%

Annual Total Return of the Fund

Financial Year 2021

Financial Year 2020

Financial Period 2019

01.07.2020 to 30.06.2021

01.07.2019 to 30.06.2020

18.10.2018 to30.06.2019

1.85% 3.30% 2.70%1.51% 2.66% 2.14%0.34% 0.64% 0.56%

Average Total Return of the Fund

1 Year 2 Years Since Inception

Date @01.07.2020 to

30.06.202101.07.2019 to

30.06.202118.10.2018 to

30.06.20211.85% 2.57% 2.91%1.51% 2.08% 2.34%0.34% 0.49% 0.57%

Note: * Source: Bloomberg, Opus Asset Management Sdn Bhd# Source: Malayan Banking Berhad@ The Fund's inception date was 18 October 2018 (i.e. after the end of Fund's initial offer

period).

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

Benchmark #Outperformance

Opus Money Plus Fund (Opus MPF) *Benchmark #Outperformance

Opus Money Plus Fund (Opus MPF) *

Opus Money Plus Fund (Opus MPF) *Benchmark #Outperformance

3


MANAGER'S REPORT

Performance Review

As at 30 June 2021, the Fund was 74.35% invested while 25.65% was held in cash. For theperiod 1 July 2020 to 30 June 2021, the Fund had registered a return of 1.85% as compared tothe benchmark return of 1.51% which was the accreted value of the Maybank 12-Months FixedDeposit Rate. Hence, the Fund overperformed the benchmark by 0.34%. Since its inception,the Fund has outperformed the benchmark by 1.62% with returns of 8.06% compared to thebenchmark of 6.44%. . The Fund had a duration of 2.5 months. The average rating of theportfolio was AA1.

Apart from cash, 74.35% are rated higher than AA3 or P1, which are generally quite liquid. Forcorporate bonds rated lower than AA3, bid-offer spreads are generally wider due to the lessliquid market conditions.

During the financial year under review, the Fund has declared a total gross distribution ofRM0.0209 per unit to unitholders. We believe the Fund has achieved its objective of providinginvestors with higher return than Maybank 1-month fixed deposit rate, while providing liquidityand preserving capital.

4


MANAGER'S REPORT (continued)

Market Review (continued)

Globally, the International Monetary Fund (IMF) highlighted a divergent recovery theme, withhigh degree of uncertainty surrounding global outlook. Moreover, further pandemic relatedsetbacks will likely increase income inequality, affecting developing countries more severelythan developed countries.

Nonetheless, the progress of a US-led economic recovery remains well underway for thequarter. Strong stimulus-induced and consumer-driven retail sales momentum eventually eased,highlighting that policy effectiveness is likely fading. At the same time, supply and labourconstraints contributed towards an upward rise in inflation felt especially by manufacturingfirms and consumers. Moreover, June headline US inflation rose to a 13-year high of 5% y/ywith most of the sharp increases largely services-related in nature (E.g. used car prices &airfares), reflecting the broad based reopening optimism from the world’s largest economy.

Favourable macroeconomic conditions led to an uneven pace of recovery from major economiesas the unwinding of accommodative policies in the previous quarter saw its effectiveness fade in2Q21. Instead, headline inflation saw an ascent with upward inflationary pressures mostlyinduced via low base effects and supply driven constraints. Similarly, commodity pricesskyrocketed, boosting external trade, with major exporting nations enjoying stronger economicactivity. Nonetheless, any sustained resurgence in growth will be contingent upon theresurgence of cases, vaccination rates and increased mobility. Specifically, any virus outbreakswill delay labour markets recovery thereby causing lower per capita economies to fall furtherbehind its pace of recovery.

Similarly, from a policymaking standpoint the US Federal Reserve (Fed); akin to previousquarter, kept accommodative policies unchanged. Guiding that the federal funds rate and assetpurchase programme to remain at 0-0.25% and USD120b respectively. Interestingly, the Fedincreased their inflation expectations for 2021 from 2.4% to 3.4% but emphasized that inflationis transitory and will average towards the inflation target of 2% over the longer term. At thesame time, the central bank also raised its growth projections to 7% this year, up from theprevious 6.5% projection. Hence, changes in its June forecast for inflation and growth targetsstoked tapering discussions amongst market participants as policymakers signalled that theremay be two rate hikes by the end of 2023. While selling pressure in 2Q21 remained minimalcompared to the previous quarter, 2 – 3-yr US Treasury (UST) yields rose 13bps with above 7-yr UST yields recovering up to 24bps.

Meanwhile, a promising Eurozone recovery increasingly became broad based as the blocnations successfully ramped up its vaccination programmes, having experienced a double diprecession in 1Q21. Since then, the gradual reopening of economies & lifting of travel bans in2Q21 prompted optimism & confidence amongst purchasing managers. Inflation surged withinthe European Central Bank’s (ECB) target of below, but close to 2% over the medium term.Nonetheless, the ECB’s policy stance remains accommodative in order to avoid a prematurewithdrawal of policies in order to bolster confidence and reduce uncertainty.

5



Market Review (continued)

Market Outlook

Strategies Employed

As the fund’s focus is on capital preservation and liquidity, we will continue to invest in highquality, liquid and short dated securities with minimal risks.

Malaysia’s pace of recovery in 2Q21 was dented by the imposition of MCO3.0, as virusoutbreaks and containment measures took precedent over the resumption of economic activity.Although mobility restrictions are expected to adversely impact 2021 growth figures by up to1%, Malaysia benefited from the resumption of global economic activity. For 2Q21, Malaysianexternal trade remained a key proponent of growth, with manufacturing-driven electrical &electronic exports and imports sustaining high double-digit growth. At the same time, inflationrose 4.4% from 1.7% previously due to low base effects. The affirmation of Malaysia’ssovereign rating by S&P Global Rating at A- with a negative outlook reflect Malaysia’s strongexternal position, monetary flexibility and track record of sustainable growth. But, moderated byMalaysia’s precarious fiscal debt situation.

Bank Negara Malaysia (BNM) maintained the Overnight Policy Rate (OPR) at 1.75% in May’smonetary policy meeting. On the fiscal front, the Malaysian Government released another stringof stimulus package dubbed PEMULIH worth RM150b with RM10b via fiscal injection focusedon providing cash assistance to B40 and M40 households, supporting businesses and acceleratevaccination programmes. Foreign inflows of Ringgit bonds remained resilient, sustaining a newrecord of inflows for 13-months in a row to date. Malaysian Government Securities (MGS)yields remained volatile for the quarter as the 2 – 7-yr eased 6bps; save the 3Y, while above 10-yr benchmark securities steepened by 10bps.

As global vaccination-led optimism & growth materialises faster than anticipated, effectivenessof fiscal & monetary policies are showing signs of subsiding. Nonetheless, expect major centralbanks to maintain accommodative policies to support the recovery, until growth becomesembedded. As the nature of the pandemic remains highly uncertain, any outbreaks will continueto be key downside risk to global growth. Therefore, we expect the 10-yr UST to trend around1.60-1.80% in the near term.

Locally, in line with BNM’s accommodative stance we opine that the OPR to remain at 1.75%.But, we are seeing increasing possibility of another 25bps cut in view of the slower recovery.Similarly, uncertainty brought about by MCO3.0, slow vaccination rates and restriction ofmovement is expected to hamper growth. We expect 2021 growth to trend at 4-5% for the yearas a result. While additional fiscal support from the government is expected to pressure yieldshigher from oversupply concerns, we opine that that the government has limited space to borrow in view of its high debt levels. As such, any additional borrowings are likely to be small.

6



Soft Commissions and Rebates

Cross Trade

State Affairs of the Fund

Asset Allocation

30-Jun-21 30-Jun-20% of NAV % of NAV

Unquoted fixed income securities - local 74.35 87.53Cash and cash equivalents 25.65 12.47

Total 100.00 100.00

Income Distribution / Unit Split

Ex dateNAV per unit

before distribution (RM)

Gross distribution per unit (Sen)

Net distribution per unit (Sen)

NAV per unit after distribution

(RM)

28-Jul-20 1.0058 0.05 0.05 1.005426-Aug-20 1.0071 0.15 0.15 1.005728-Sep-20 1.0070 0.20 0.20 1.005127-Oct-20 1.0068 0.10 0.10 1.005923-Dec-20 1.0084 0.60 0.60 1.002426-Jan-21 1.0040 0.25 0.25 1.001624-Feb-21 1.0030 0.25 0.25 1.000626-Mar-21 1.0008 0.04 0.04 1.000427-Apr-21 1.0021 0.10 0.10 1.001227-May-21 1.0027 0.15 0.15 1.001325-Jun-21 1.0029 0.20 0.20 1.0009

No soft commissions or rebates were received from any broker for the financial year under review.

Cross trade transactions have been carried out during the reported period and the InvestmentCommittee of the Fund has reviewed that such transactions were in the best interest of the Fund,transacted in the normal course of business at agreed terms and on a fair value basis.

There is neither any significant change to the state affairs of the Fund nor any circumstances thatmaterially affect any interests of the unit holders during the financial year under review.

The Fund has distributed a total gross distribution of RM0.0209 per unit to the unitholders for thefinancial year under review.

No unit splits were declared for the financial year from 1 July 2020 to 30 June 2021.

7


STATEMENT BY THE MANAGER

SIAW WEI TANG CHAN CHOONG KONGMANAGING DIRECTOR DIRECTOR

Kuala Lumpur24 August 2021

We, SIAW WEI TANG and CHAN CHOONG KONG, being two of the Directors of Opus

Asset Management Sdn. Bhd., do hereby state that in the opinion of the Manager, the

accompanying financial statements set out on pages 14 to 53 are drawn up in accordance with

the provisions of the Deeds and give a true and fair view of the financial position of the Fund as

of 30 June 2021 and of its financial performance and cash flows for the financial year then

ended in accordance with Malaysian Financial Reporting Standards and International Financial

Reporting Standards.

On behalf of the Manager

8


TRUSTEE'S REPORT

For The Financial Year Ended 30 June 2021To the Unitholders of OPUS MONEY PLUS FUND

1.

2.

3.

For SCBMB Trustee Berhad(Company No. : 201201021301 (1005793-T))

Prasad VijayasundaramChief Executive Officer

Kuala Lumpur, Malaysia24 August 2021

We have acted as Trustee for OPUS MONEY PLUS FUND (“the Fund”) for the financial year ended30 June 2021. To the best of our knowledge, OPUS ASSET MANAGEMENT SDN BHD (“theManager”) has managed the Fund in the financial year under review in accordance with the following:

Limitations imposed on the investment powers of the Manager under the Deed, securities lawsand the Securities Commission Malaysia's Guidelines on Unit Trust Funds and other applicablelaws;

Valuation and pricing of the Fund are carried out in accordance with the Deed and any applicableregulatory requirements;

Creation and cancellation of units are carried out in accordance with the Deed and any applicableregulatory requirement; and

We are of the view that the distribution made during the financial year by the Manager is consistentwith the investment objective and distribution policy of the Fund.

9

INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS OF


REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

Basis for Opinion

Independence and Other Ethical Responsibilities

Information Other than the Financial Statements and Auditors’ Report Thereon

We have audited the financial statements of Opus Money Plus Fund (“the Fund”), which comprise the statementof financial position as at 30 June 2021 of the Fund, and the statement of comprehensive income, statement ofchanges in net asset value and statement of cash flows of the Fund for the financial year then ended, and notesto the financial statements, including a summary of significant accounting policies, as set out on pages 14 to 53.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of theFund as at 30 June 2021, and of its financial performance and its cash flows for the financial year then ended inaccordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards.

We conducted our audit in accordance with approved standards on auditing in Malaysia and International

Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’

Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

We are independent of the Fund in accordance with the By-Laws (on Professional Ethics, Conduct andPractice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board forAccountants’ International Code of Ethics for Professional Accountants (including International IndependenceStandards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code.

The Manager of the Fund is responsible for the other information. The other information comprises theinformation included in the annual report, but does not include the financial statements of the Fund and ourauditors’ 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.

10


OPUS MONEY PLUS FUND (CONTINUED)

Information Other than the Financial Statements and Auditors’ Report Thereon (Continued)

Responsibilities of the Manager and the Trustee for the Financial Statements

Auditors’ Responsibilities for the Audit of the Financial Statements

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

The Manager of the Fund is responsible for the preparation of the financial statements of the Fund that give a

true and fair view in accordance with Malaysian Financial Reporting Standards and International Financial

Reporting Standards. The Manager is also responsible for such internal control as the Manager determines is

necessary to enable the preparation of financial statements of the Fund that are free from material

misstatement, whether due to fraud or error. The Trustee is responsible for ensuring that the Manager maintains

proper accounting and other records as are necessary to enable fair presentation of these financial statements.

In preparing the financial statements of the Fund, the Manager is responsible for assessing the Fund’s ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the Manager either intend to liquidate the Fund or to cease operations, or

have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements of the Fund as a

whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that

includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with approved standards on auditing in Malaysia and International Standards on

Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error

and are considered material if, individually or in the aggregate, they could reasonably be expected to influence

the economic decisions of users taken on the basis of these financial statements.

11



Auditors’ Responsibilities for the Audit of the Financial Statements (Continued)

•

•

•

•

•

As a part of an audit in accordance with approved standards on auditing in Malaysia and International Standards

on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We

also:-

Identify and assess the risks of material misstatement of the financial statements of the Fund,whether due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk ofnot 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 ofinternal 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 accountingestimates and related disclosures made by the Manager.

Conclude on the appropriateness of the Manager’s 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 Fund’s ability 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 Fund 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 Fund to cease to continue

as a going concern.

Evaluate the overall presentation, structure and content of the financial statements of the Fund,including the disclosures, and whether the financial statements of the Fund represent the underlyingtransactions and events in a manner that achieves fair presentation.

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

12



OTHER MATTERS

Crowe Malaysia PLT Chong Wei-Chnoong

201906000005 (LLP0018817-LCA) & AF 1018 03525/08/2022 J

Chartered Accountants Chartered Accountant

Kuala Lumpur

24 August 2021

This report is made solely to the unitholders of the Fund and for no other purpose. We do not assume

responsibility to any other person for the content of this report.

13


STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2021

Note 2021 2020RM RM

ASSETS

4 6,574,851 9,604,776 5 2,246,442 1,278,901

24,854 92,334

TOTAL ASSETS 8,846,147 10,976,011

LIABILITIES

Amount due to manager 2,573 2,853 Amount due to trustee 183 204

TOTAL LIABILITIES 2,756 3,057

NET ASSET VALUE 8,843,391 10,972,954

UNITHOLDERS' FUNDSUnitholders' capital 8,785,258 10,938,153 Retained earnings 58,133 34,801

8,843,391 10,972,954

UNITS IN CIRCULATION 6 8,832,757 10,932,364

NET ASSET VALUE PER UNIT 1.0012 1.0037

Amount due from manager (Creation)

NET ASSET ATTRIBUTABLE TO UNITHOLDERS

The accompanying summary of significant accounting policies and notes to the financialstatements form an integral part of these financial statements.

Financial assets at fair value through profit or loss ("FVTPL") Cash and cash equivalents

14


STATEMENT OF COMPREHENSIVE INCOMEFOR THE FINANCIAL YEAR ENDED 30 JUNE 2021

2021 2020Note RM RM

433,436 287,554

50,789 26,887 4 (145,596) (20,984)

338,629 293,457

7 (52,610) (28,457) 8 (3,758) (2,033)

(1,193) (533)

(57,561) (31,023)

281,068 262,434

10 - -

281,068 262,434

266,689 274,482 14,379 (12,048)

281,068 262,434

INVESTMENT INCOMEInterest income from unquoted fixed income securitiesInterest income from deposits with licensed financial institutionsNet loss on financial assets at FVTPL

EXPENSESManagement feeTrustee’s feeOther expenses

PROFIT BEFORE TAXATION

The accompanying summary of significant accounting policies and notes to the financial statementsform an integral part of these financial statements.

TAXATION

PROFIT AFTER TAXATION AND TOTALCOMPREHENSIVE INCOME FOR THE FINANCIAL YEAR END

Profit after taxation is made up as follows:Realised amountUnrealised amount

15


STATEMENT OF CHANGES IN NET ASSET VALUEFOR THE FINANCIAL YEAR ENDED 30 JUNE 2021

Unitholders’ Retainedcapital earnings Total

Note RM RM RM

9,577,394 49,136 9,626,530

- 262,434 262,434 25,288,491 - 25,288,491

275,109 - 275,109 (24,202,841) - (24,202,841)

11 - (276,769) (276,769)

10,938,153 34,801 10,972,954

10,938,153 34,801 10,972,954

- 281,068 281,068 79,547,195 - 79,547,195

251,517 - 251,517 (81,951,607) - (81,951,607)

11 - (257,736) (257,736)

8,785,258 58,133 8,843,391

Distribution

Balance as at 1 July 2020

Movement in net asset value:Total comprehensive income

for the financial year end


Balance as at 30 June 2021

Balance as at 1 July 2019

Movement in net asset value:Total comprehensive income

for the financial year endCreation of units from applicationsCreation of units from distributionsCancellation of unitsDistribution

Balance as at 30 June 2020

Creation of units from applicationsCreation of units from distributionsCancellation of units

16


STATEMENT OF CASH FLOWSFOR THE FINANCIAL YEAR ENDED 30 JUNE 2021

2021 2020RM RM

34,105,317 10,006,995

15,550,000 10,750,000(46,732,628) (23,117,880)

395,076 355,121

50,789 26,887(52,890) (27,675)(3,779) (1,977)(1,193) (533)

3,310,692 (2,009,062)

79,866,192 25,471,266(81,951,607) (24,202,841)

(257,736) (276,769)

(2,343,151) 991,656

967,541 (1,017,406)

1,278,901 2,296,307

2,246,442 1,278,901

2,202,427 1,223,14344,015 55,758

2,246,442 1,278,901

Proceeds from sale of investments

Interest income received from deposits with licensed financial institutionsManagement fee paid

Proceeds from redemption of unquoted fixed income securitiesPurchase of investmentsInterest income received from unquoted fixed income securities

Payment for distribution

CASH FLOWS FROM FINANCING ACTIVITIES

Trustee’s fee paidPayment for other fees and expensesNet cash generated from/(used in) operating and investing activities

CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES


Deposits with licensed financial institutionsBank balance

CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR

Cash and cash equivalents comprise:

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FINANCIAL YEAR

Net cash (used in)/generated from financing activities

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

Proceeds from creation of unitsPayments for cancellation of units

17


SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - 30 JUNE 2021

A Basis of preparation of the financial statements

(a)

Amendments to MFRS 3: Definition of a BusinessAmendments to MFRS 4: Extension of the Temporary Exemption from Applying MFRS 9Amendments to MFRS 101 and MFRS 108: Definition of MaterialAmendments to MFRS 16: COVID-19-Related Rent Concessions

Amendments to References to the Conceptual Framework in MFRS StandardsAmendments to MFRS 9, MFRS 139 and MFRS 7: Interest Rate Benchmark Reform

The adoption of the above amendments accounting standards (including the consequentialamendments, if any) did not have any material impact of the Fund's financial statements.

Amendments to MFRSs (Including The Consequential Amendments)

The following accounting policies have been used in dealing with items which are consideredmaterial in relation to the financial statements.

The financial statements of the Fund are prepared under the historical cost convention andmodified to include other bases of valuation as disclosed in other sections under significantaccounting policies, and in compliance with Malaysian Financial Reporting Standards (“MFRSs”)and International Financial Reporting Standards (“IFRSs”).

The preparation of financial statements in conformity with MFRS and IFRS requires the use ofcertain critical accounting estimates and assumptions that affect the reported amounts of assetsand liabilities and disclosure of contingent assets and liabilities at the date of the financialstatements, and the reported amounts of revenues and expenses during the reported financial year.It also requires the Manager to exercise their judgement in the process of applying the Fund’saccounting policies. Although these estimates and judgement are based on the Manager’s bestknowledge of current events and actions, actual results may differ.

The areas involving a higher degree of judgement or complexity, or areas where assumptions andestimates are significant to the financial statements are disclosed in Note J.

During the current financial year, the Fund has adopted the following amendments toaccounting standards (including the consequential amendments, if any):-

18


SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - 30 JUNE 2021(CONTINUED)

A Basis of preparation of the financial statements (continued)

(b)

Effective Date Amendments to MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16

- Interest Rate Benchmark Reform - Phase 2Amendments to MFRS 16: Covid-19-Related Rent Concessions

beyond 30 June 2021Amendments to MFRS 3: Reference to the Conceptual Framework 1 January 2022

1 January 20221 January 2022

MFRS 17: Insurance Contracts 1 January 2023Amendments to MFRS 17: Insurance Contracts 1 January 2023

1 January 2023Amendments to MFRS 101: Disclosure of Accounting Policies 1 January 2023Amendments to MFRS 108: Definition of Accounting Estimates 1 January 2023Amendments to MFRS 112: Deferred Tax related to Assets and Liabilities

arising from a Single TransactionAmendments to MFRS 10 and MFRS 128: Sale or Contribution

of Assets between an Investor and its Associate or Joint Venture Deferred

Amendments to MFRS 137: Onerous Contracts – Cost of Fulfilling a ContractAnnual Improvements to MFRS Standards 2018 – 2020

The Fund has not applied in advance the following accounting standards (including theconsequential amendments, if any) that have been issued by the Malaysian AccountingStandards Board (MASB) but are not yet effective for the current financial year:-

MFRSs (Including The Consequential Amendments)

Amendments to MFRS 116: Property, Plant and Equipment – Proceeds before Intended Use

Amendments to MFRS 101: Classification of Liabilities as Current or Non-current

1 January 2021

1 April 2021

1 January 2022

1 January 2023

The adoption of the above accounting standards (including the consequential amendments, ifany) is expected to have no material impact on the financial statements of the Fund upon itsinitial application.

19


(CONTINUED)

B Income recognition

C Distribution

D Taxation

E Presentation and functional currency

Current taxes are measured using tax rates and tax laws that have been enacted or substantivelyenacted at the end of the reporting period and are recognised in statement of comprehensiveincome except to the extent that the tax relates to items recognised outside statement ofcomprehensive income (either in other comprehensive income or directly in equity).

Interest income from deposits with licensed financial institutions and unquoted fixed incomesecurities are recognised on an accrual basis using the effective interest method.

Realised gain and loss on sale of unquoted fixed income securities are measured by the differencebetween the net disposal proceeds and the carrying amounts of investment, calculated on theweighted average cost basis.

Realised gains and losses on sale of collective investment scheme are accounted for as thedifference between the net disposal proceeds and the carrying amount of the collective investmentscheme, determined on a weighted average cost basis.

Distributions are at the discretion of the Fund. A distribution to the Fund’s unitholders isaccounted for as a deduction from realised reserve. A proposed distribution is recognised as aliability in the year in which it is approved for appropriation.

Current tax assets and liabilities are the expected amount of income tax recoverable or payable tothe taxation authorities.


Items included in the financial statements of the Fund are measured using the currency of theprimary economic environment in which the Fund operates (the “functional currency”). Thefinancial statements are presented in Ringgit Malaysia ("RM"), which is the Fund’s presentationand functional currency.

20


(CONTINUED)

F Financial instruments

Financial Assets

Debt Instruments

(i) Amortised Cost


Financial assets and financial liabilities are recognised in the statement of financial position whenthe Fund has become a party to the contractual provisions of the instruments.

The financial asset is held for collection of contractual cash flows where those cash flowsrepresent solely payments of principal and interest. Interest income is recognised by applyingthe effective interest rate to the gross carrying amount of the financial asset. When the assethas subsequently become credit-impaired, the interest income is recognised by applying theeffective interest rate to the amortised cost of the financial asset.

Financial instruments are classified as financial assets, financial liabilities or equity instruments inaccordance with the substance of the contractual arrangement and their definitions in MFRS 132.Interest, dividends, gains and losses relating to a financial instrument classified as a liability arereported as an expense or income. Distributions to holders of financial instruments classified asequity are charged directly to equity.

Financial instruments are offset when the Fund has a legally enforceable right to offset andintends to settle either on a net basis or to realise the asset and settle the liability simultaneously.

A financial instrument is recognised initially at its fair value. Transaction costs that are directlyattributable to the acquisition or issue of the financial instrument (other than a financialinstrument at fair value through profit or loss) are added to/deducted from the fair value on initialrecognition, as appropriate. Transaction costs on the financial instrument at fair value throughprofit or loss are recognised immediately in profit or loss.

Financial instruments recognised in the statement of financial position are disclosed in theindividual policy statement associated with each item.

All recognised financial assets are measured subsequently in their entirety at either amortised costor fair value (through profit or loss, or other comprehensive income), depending on theclassification of the financial assets.

21


(CONTINUED)

F Financial instruments (continued)

Financial Assets (continued)

Debt Instruments (continued)

(i) Amortised Cost (continued)

(ii) Fair Value through Other Comprehensive Income

(iii) Fair Value through Profit or Loss


All other financial assets that do not meet the criteria for amortised cost or fair value throughother comprehensive income are measured at fair value through profit or loss.

Regular purchases and sales of financial assets are recognised on the trade date, the date onwhich the Fund commits to purchase or sell the asset. Investments are initially recognised atfair value. Subsequent to initial recognition, financial assets at fair value through profit orloss are measured at fair value.

Unrealised gains or losses arising from changes in the fair value of the financial assets at‘fair value through profit or loss’ category are recognised in the statement of comprehensiveincome in the financial year in which they arise.

The financial asset is held for both collecting contractual cash flows and selling the financialasset, where the asset’s cash flows represent solely payments of principal and interest.Movements in the carrying amount are taken through other comprehensive income andaccumulated in the fair value reserve, except for the recognition of impairment, interestincome and foreign exchange difference which are recognised directly in profit or loss.Interest income is calculated using the effective interest rate method.

The effective interest method is a method of calculating the amortised cost of a financialasset and of allocating interest income over the relevant period. The effective interest rate isthe rate that discounts estimated future cash receipts (including all fees and points paid orreceived that form an integral part of the effective interest rate, transaction costs and otherpremiums or discounts), excluding expected credit losses, through the expected life of thefinancial asset or a shorter period (where appropriate).

22


(CONTINUED)


Financial Assets (continued)

Debt Instruments (continued)

(iii) Fair Value through Profit or Loss (continued)

(i) Records its basis for using a non-BPA price;(ii) Obtain necessary internal approvals to use the non-BPA price; and(iii) Keeps an audit trail of all decisions and basis for adopting the market yield.

Financial Liabilities

(i) Financial Liabilities at Fair Value through Profit or Loss

(ii) Other Financial Liabilities


The Fund reclassifies debt instruments when and only when its business model for managingthose assets change.

Fair value through profit or loss category comprises financial liabilities that are either heldfor trading or are designated to eliminate or significantly reduce a measurement orrecognition inconsistency that would otherwise arise. The changes in fair value of thesefinancial liabilities are recognised in profit or loss.

Other financial liabilities are subsequently measured at amortised cost using the effectiveinterest method.

Unquoted fixed income securities denominated in Ringgit Malaysia are revalued on a dailybasis based on fair value prices quoted by a bond pricing agency (“BPA”) registered with theSecurities Commission of Malaysia (“SC”). Where such quotations are not available orwhere the Manager is of the view that the price quoted by the BPA for a specified unquotedfixed income securities differs from the market price by more than 20 basis points, theManager may use the market price, provided that the Manager:

23


(CONTINUED)


Financial Liabilities (continued)

(ii) Other Financial Liabilities (continued)

Derecognition


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

A financial asset or part of it is derecognised when, and only when, the contractual rights to thecash flows from the financial asset expire or when it transfers the financial asset and substantiallyall risks and rewards of ownership of the asset to another entity. On derecognition of a financialasset measured at amortised cost, the difference between the carrying amount of the assets and thesum of the consideration received and receivable is recognised in profit or loss. In addition, onderecognition of a debt instrument classified as fair value through other comprehensive income,the cumulative gain and loss previously accumulated in the fair value reserve is reclassified fromequity to profit or loss. In contrast, there is no subsequent reclassification of the fair value reserveto profit or loss following the derecognition of an equity investment.

The effective interest method is a method of calculating the amortised cost of a financialliability and of allocating interest expense over the relevant period. The effective interestrate is the rate that exactly discounts estimated future cash payments (including all fees andpoints paid or received that form an integral part of the effective interest rate, transactioncosts and other premiums or discounts), through the expected life of the financial liability ora shorter period (where appropriate).

24


(CONTINUED)


Impairment of financial assets

The amount of expected credit losses is updated at each reporting date to reflect changes in creditrisk since initial recognition of the respective financial instrument. The Fund always recogniseslifetime expected credit losses for the receivables using the simplified approach. The expectedcredit losses on these financial assets are estimated using a provision matrix based on the Fund’shistorical credit loss experience and are adjusted for forward-looking information (including timevalue of money where appropriate).

For all other financial instruments, the Fund recognises lifetime expected credit losses when therehas been a significant increase in credit risk since initial recognition. However, if the credit risk onthe financial instrument has not increased significantly since initial recognition, the Fundmeasures the loss allowance for that financial instrument at an amount equal to 12-monthexpected credit losses.

The Fund recognises an impairment gain or loss in profit or loss for all financial instruments witha corresponding adjustment to their carrying amount through a loss allowance account, except forinvestments in debt instruments that are measured at fair value through other comprehensiveincome, for which the loss allowance is recognised in other comprehensive income andaccumulated in the fair value reserve, and does not reduce the carrying amount of the financialasset in the statement of financial position.


The Fund recognises a loss allowance for expected credit losses on investments in debtinstruments that are measured at amortised cost or at fair value through other comprehensiveincome, the receivables, deposits with financial institutions and cash at bank.

The expected credit loss is estimated as the difference between all contractual cash flows that aredue to the Fund in accordance with the contract and all the cash flows that the Fund expects toreceive, discounted at the original effective interest rate.

25


(CONTINUED)

G Cash and cash equivalents

H Unitholders' capital

The unitholders’ capital is classified as equity.

I Segmental information

The Fund issues cancellable units, which are cancelled at the unitholder’s option and are classifiedas equity. Cancellable units can be put back to the Fund at any time for cash equal to aproportionate share of the Fund’s Net Asset Value (“NAV”). The outstanding units are carried atthe redemption amount that is payable as at the date of the statement of financial position if theunitholder exercises the right to put the unit back to the Fund.

Units are created and cancelled at the unitholder’s option at prices based on the Fund’s NAV perunit at the time of creation or cancellation. The Fund’s NAV is calculated by dividing the netassets attributable to unitholders with the total number of outstanding units.

The units in the Fund are puttable instruments which entitle the unitholders to a pro-rata share ofthe Net Asset of the Fund. The units are subordinated and have identical features. There is nocontractual obligations to deliver cash or another financial asset other that the obligation on theFund to repurchase the units. The total expected cash flows from the units in the Fund over thelife of the units are based on the change in the Net Asset of the Fund.

Operating segments are reported in a manner consistent with the internal reporting used by chiefoperating decision-maker. The chief operating decision-maker, who is responsible for allocatingresources and assessing performance of the operating segments that undertakes strategic decisionsfor the Fund.

Cash and cash equivalents comprise bank balances, deposits with licensed financial institutions,and short term, highly liquid investments that are readily convertible to known amounts of cashand which are subject to an insignificant risk of changes in value with original maturity periods ofthree months or less.


26


(CONTINUED)

J Critical accounting estimates and judgements in applying accounting policies

Key Sources of Estimation Uncertainty

Fair Value Estimates for Unquoted Financial Assets

Income Taxes

Critical Judgements Made in Applying Accounting Policies

Manager believes that there are no instances of application of critical judgement in applying theFund’s accounting policies which will have a significant effect on the amounts recognised in thefinancial statements.

Manager believes that there are no key assumptions made concerning the future, and other keysources of estimation uncertainty at the reporting date, that have a significant risk of causing amaterial adjustment to the carrying amounts of assets and liabilities within the next financial yearother than as disclosed below:-

The Fund carries certain financial assets that are not traded in an active market at fair value. TheFund uses its judgement to select a variety of methods and make assumptions that are mainlybased on market conditions existing at the end of each reporting period. The amount of fair valuechanges would differ if the Fund uses different valuation methodologies and assumptions, andeventually affect profit and/or other comprehensive income. The carrying amount of thesefinancial assets as at the reporting date is disclosed in Note 4 to the financial statements.

There are certain transactions and computations for which the ultimate tax determination may bedifferent from the initial estimate. The Fund recognises tax liabilities based on its understandingof the prevailing tax laws and estimates of whether such taxes will be due in the ordinary courseof business. Where the final outcome of these matters is different from the amounts that wereinitially recognised, such difference will impact the income tax expense and deferred tax balancesin the year in which such determination is made.


27


NOTES TO THE FINANCIAL STATEMENTS - 30 JUNE 2021

1 INFORMATION ON THE FUND

2 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Opus Money Plus Fund (hereinafter referred to as ‘the Fund’) was constituted pursuant to theexecution of a deed dated 13 July 2018 between Opus Asset Management Sdn. Bhd. as theManager and SCBMB Trustee Berhad as the Trustee. The Fund was launched on 28 September2018 and will continue to be in operation until determined otherwise by the Manager or theTrustee as provided under the Deed.

The principal place of business is located at B-19-2, Northpoint Offices, Mid Valley City, No.1,Medan Syed Putra Utara, 59200 Kuala Lumpur.

The objective of the Fund is to achieve higher returns than the Maybank 1-month fixed depositrate and to provide liquidity while preserving capital.

The Manager, Opus Asset Management Sdn. Bhd., a company incorporated in Malaysia, isprincipally engaged in the business of fund management and the provision of financial advisoryservices.

The financial statements were authorised for issue by the Manager on 24 August 2021.

The Fund is exposed to a variety of risks which include management risk, market risk (inclusive ofprice risk and interest rate risk), credit risk, liquidity risk, non-compliance risk and capital riskmanagement.

Financial risk management is carried out through internal control processes adopted by theManager and adherence to the investment restrictions as stipulated in the Fund’s Prospectus.

28


NOTES TO THE FINANCIAL STATEMENTS - 30 JUNE 2021 (CONTINUED)

2 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

Financial instruments of the Fund are as follows:

Financialassets at fair

value throughprofit or loss

Amortisedcost Total

RM RM RM

Unquoted fixed income securities 6,574,851 - 6,574,851 Cash and cash equivalents - 2,246,442 2,246,442

- 24,854 24,854

6,574,851 2,271,296 8,846,147

Unquoted fixed income securities 9,604,776 - 9,604,776 Cash and cash equivalents - 1,278,901 1,278,901

- 92,334 92,334

9,604,776 1,371,235 10,976,011

Management risk

Price risk

The Fund’s overall exposure to price risk was as follows:

2021 2020RM RM

Financial assets at fair value through profit or loss* 6,574,851 9,604,776

* Includes interest receivable of RM47,359 (2020: RM57,201).

2021

Poor management of the Fund may jeopardise the investment of each unitholder. Therefore, it isimportant for the Manager to set the investment policies and appropriate strategies to be in linewith the investment objective before any investment activities can be considered. However, therecan be no guarantee that these measures will produce the desired results.

Price risk is the risk that the fair value of an investment of the Fund will fluctuate because ofchanges in market prices (other than those arising from interest rate risk).

Amount due from manager

2020

Amount due from manager

29




Price risk (continued)

Change in price of

investments Market value

Impact onprofit after

tax andnet asset value

% RM RM

-5 6,201,117 (326,375)0 6,527,492 - 5 6,853,867 326,375

-5 9,070,196 (477,379)0 9,547,575 - 5 10,024,954 477,379

Interest rate risk

In general, when interest rates rise, unquoted fixed income securities prices will tend to fall andvice versa. Therefore, the net asset value of the Fund may also tend to fall when interest rates riseor are expected to rise. However, investors should be aware that should the Fund hold an unquotedfixed income securities till maturity, such price fluctuations would dissipate as it approachesmaturity, and thus the growth of the net asset value shall not be affected at maturity. In order tomitigate interest rates exposure of the Fund, the Manager will manage the duration of the portfoliovia shorter or longer tenured assets depending on the view of the future interest rate trend of theManager, which is based on its continuous fundamental research and analysis.

This risk is crucial since bond portfolio management depends on forecasting interest ratemovements. Unquoted fixed income securities with longer maturity and lower yield coupon ratesare more susceptible to interest rate movements.

2021

The table below summarises the sensitivity of the Fund’s net asset value and profit after tax tomovements in prices of investments. The analysis is based on the assumption that the price of theinvestments fluctuates by 5% with all other variables held constant.

2020

30




Interest rate risk (continued)

2021 2020% change in interest rate RM RM

+1% (331) (802)-1% 560 1,419

Credit risk

Credit risk is the risk that the counterparty to a financial instrument will cause financial loss for theFund by failing to discharge an obligation. The Fund is exposed to the risk of credit-related lossesthat can occur as a result of a counterparty or issuer being unable or unwilling to honour itscontractual obligations to make timely repayments of interest, principal and proceeds fromrealisation of investments. These credit exposures exist within financing relationships, derivativesand other transactions.

The Manager manages the Fund’s credit risk by undertaking credit evaluation and closemonitoring of any changes to the issuer/counterparty’s credit profile to minimise such risk. It is theFund’s policy to buy financial instruments with reputable counterparties. The Manager also closelymonitors the creditworthiness of the Fund’s counterparties by reviewing their credit ratings andcredit profiles on a regular basis.

At the reporting date, the Fund’s maximum exposure to credit risk is represented by the carryingamount of each class of financial assets recognised in the statement of financial position. None ofthe Fund’s financial assets were past due or impaired as at the end of the reporting period.

Investors should note that unquoted fixed income securities (such as the bonds held by the Fund)and money market instruments are subject to interest rate fluctuations. Such investments may besubject to unanticipated rise in interest rates which may impair the ability of the issuers to makepayments of interest and principal, especially if the issuers are highly leveraged. An increase ininterest rates may therefore increase the potential for default by an issuer.

The table below summarises the sensitivity of the Fund’s net asset value to movements in prices ofunquoted fixed income securities held by the Fund as a result of movement in interest rate. Theanalysis is based on the assumptions that the interest rate increased and decreased by 1% with allother variables held constant.

Impact on profit after tax/net asset value

31




Credit risk (continued)

The following table sets out the credit risk concentration of the Fund:

Unquotedfixed income

securities

Cash and cash

equivalents

Amountdue frommanager Total

RM RM RM

- AAA 2,775,798 1,441,332 - 4,217,130 - AA2 765,936 - - 765,936 - AA3 2,034,487 - - 2,034,487 - A1 - 805,110 - 805,110 - P1 998,630 - - 998,630 - Other - - 24,854 24,854

6,574,851 2,246,442 24,854 8,846,147

- AAA 2,523,412 1,278,901 - 3,802,313 - AA1 761,959 - - 761,959 - AA3 2,535,850 - - 2,535,850 - Unrated (Government) 766,476 - - 766,476

1,288,336 - - 1,288,336 - P1 1,728,743 - - 1,728,743 - Other - - 92,334 92,334

9,604,776 1,278,901 92,334 10,976,011

The Manager consider these banks and financial institutions have low credit risks. Therefore, theManager is of the view that the loss allowance is immaterial and hence, it is not provided for.

2021

2020

- Unrated (Government Guaranteed)

32




Liquidity risk

Maturity Analysis

Less than 1 month

Between 1 month to 1 year Total

RM RM RM

Amount due to manager 2,573 - 2,573 Amount due to trustee 183 - 183

2,756 - 2,756

Amount due to manager 2,853 - 2,853 Amount due to trustee 204 - 204

3,057 - 3,057

Non-compliance risk

2021

Liquidity risk is the risk that the Fund will encounter difficulty in meeting its financial obligations.

Liquidity risk exists when particular investments are difficult to sell, possibly preventing the Fund

from selling such illiquid securities at an advantageous time or price. Unit trust fund with principal

investment strategies that involve securities or securities with substantial market and/or credit risk

tend to have the greater exposure to liquidity risk. As part of its risk management, the Manager

will attempt to manage the liquidity of the Fund through asset allocation and diversification

strategies within the portfolio. The Manager will also conduct constant fundamental research and

analysis to forecast future liquidity of its investments.

The table below summarises the Fund’s financial liabilities into relevant maturity groupings basedon the remaining year as at the statement of financial position date to the contractual maturity date.The amounts in the table are the contractual undiscounted cash flows.

2020

This is the risk of the Manager not complying with the internal policies, the Deeds of the Fund, allapplicable laws or guidelines issued by the regulators. This may occur as a result of system failureor the inadvertence of the Manager. The magnitude of such risk and its impact on the Fund and/orunitholders are dependent on the nature and severity of the non-compliance. Non-compliance mayadversely affect the Fund especially if the investment of the Fund has to be disposed at a lowerprice to rectify the non-compliance.

33




Capital risk management

3 FAIR VALUE ESTIMATION

The capital of the Fund is represented by equity consisting of unitholders’ capital of RM8,785,258(2020: RM10,938,153) and retained earnings of RM58,133 (2020: RM34,801). The amount ofequity can change significantly on a daily basis as the Fund is subject to daily subscriptions andredemptions at the discretion of unitholders. The Fund’s objective when managing capital is tosafeguard the Fund’s ability to continue as a going concern in order to provide returns forunitholders and benefits for other stakeholders and to maintain a strong capital base to support thedevelopment of the investment activities of the Fund.

Fair value is defined as the price that would be received to sell an asset or paid to transfer aliability in an orderly transaction between market participants at the measurement date (i.e. an exitprice).

The fair values of financial assets traded in active market (such as publicly traded derivatives andtrading securities) are based on quoted market prices at the close of trading on the financial yearend date.

An active market is a market in which transactions for the asset or liability take place withsufficient frequency and volume to provide pricing information on an ongoing basis.

The fair value of financial assets that are not traded in an active market is determined by usingvaluation techniques. The Fund uses a variety of methods and makes assumptions that are basedon market conditions existing at each year end date. Valuation techniques used for non-standardised financial instruments such as options, currency swaps and other over-the-counterderivatives, include the use of comparable recent arm’s length transactions, reference to otherinstruments that are substantially the same, discounted cash flow analysis, option pricing modelsand other valuation techniques commonly used by market participants making the maximum useof market inputs and relying as little as possible on entity-specific inputs.

34



3 FAIR VALUE ESTIMATION (CONTINUED)

(i)

(ii)

Fair value hierarchy

••

•

The Fund adopted MFRS 13 “Fair Value Measurement” in respect of disclosures about the degreeof reliability of fair value measurement. This requires the Fund to classify fair value measurementsusing a fair value hierarchy that reflects the significance of the inputs used in making themeasurements. The fair value hierarchy has the following levels:

Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.Level 2: Inputs other than quoted prices included within level 1, that are observable for theasset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).Level 3: Inputs for the asset and liability that are not based on observable market data (that is,unobservable inputs).

The fair values are based on the following methodologies and assumptions:

For bank balances, deposits and placements with financial institutions with maturities less than1 year, the carrying value is a reasonable estimate of fair value.

The carrying value less impairment of receivables and payables are assumed to approximatetheir fair values. The carrying values of financial assets and financial liabilities approximatetheir fair values due to their short term nature.

For instruments for which there is no active market, the Fund may use internally developedmodels, which are usually based on valuation methods and techniques generally recognised asstandard within the industry. Valuation models are used primarily to value unlisted equity, debtsecurities and other debt instruments for which market were or have been inactive during thefinancial year. Some of the inputs to these models may not be market observable and are thereforeestimated based on assumptions.

The output of a model is always an estimate or approximation of a value that cannot be determinedwith certainty, and valuation techniques employed may not fully reflect all factors relevant to thepositions the Fund holds.

Valuations are therefore adjusted, where appropriate, to allow for additional factors includingmodel risk, liquidity risk and counterparty risk.

35




Level 1 Level 2 Level 3 TotalRM RM RM RM

- 6,574,851 - 6,574,851

- 9,604,776 - 9,604,776

The level in the fair value hierarchy within which the fair value measurement is categorised in itsentirety is determined on the basis of the lowest level input that is significant to the fair valuemeasurement in its entirety. For this purpose, the significance of an input is assessed against thefair value measurement in its entirety. If a fair value measurement uses observable inputs thatrequire significant adjustment based on unobservable inputs, that measurement is a Level 3measurement.

Assessing the significance of a particular input to the fair value measurement in its entiretyrequires judgement, considering factors specific to the asset or liability.

The determination of what constitutes ‘observable’ requires significant judgement by the Fund.The Fund considers observable data to be that market data that is readily available, regularlydistributed or updated, reliable and verifiable, not proprietary, and provided by independentsources that are actively involved in the relevant market.

The following table analyses within the fair value hierarchy the Fund’s financial assets (by class)measured at fair value:

2021

- Unquoted fixed income securities

Financial assets at fair value through profit or loss: - Unquoted fixed income securities

Financial assets at fair value through profit or loss:

2020

36




4 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL)

2021 2020RM RM

Financial assets designated as FVTPL:- Unquoted fixed income securities 6,574,851 9,604,776

2021 2020RM RM

Net loss on financial assets at FVTPL comprised:- net realised loss on sale of financial assets at FVTPL (159,975) (8,936) - net unrealised gain/(loss) on changes in fair value 14,379 (12,048)

(145,596) (20,984)

Financial instruments that trade in markets that are considered to be active but are valued based onquoted market prices, dealer quotations or alternative pricing sources supported by observableinputs are classified within Level 2. Level 2 instruments include unquoted fixed income securities.As Level 2 instruments include positions that are not traded in active markets and/or are subject totransfer restrictions, valuations may be adjusted to reflect illiquidity and/or nontransferability,which are generally based on available market information. The Fund's policies on valuation ofthese financial assets are stated in Note F.

37



4 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL)(CONTINUED)

Financial assets designated as FVTPL as at 30 June 2021 are as follows:

Name of Counter Nominal value Cost

Fair value as at

30/06/2021

Fair value as at 30/06/2021

expressed as a percentage of

value of the Fund

RM RM %

UNQUOTED FIXED INCOME SECURITIES

CORPORATE BONDS

BANKS

750,000 766,866 765,936 8.66

FINANCE

1,000,000 1,021,892 1,019,232 11.53

1,000,000 1,000,884 1,001,823 11.33

1,000,000 984,970 998,630 11.29

3,007,746 3,019,685 34.15

4.77% CIMB BANK BERHAD 09/08/2021 AA2

5.20% AL-DZAHAB ASSETS BERHAD 29/09/2021 AAA

0.00% Toyota Capital Malaysia Sdn Bhd 23/07/2021 P1

2.15% Cagamas Berhad 17/12/2021 AAA

38

OPUS MONEY PLUS FUND NOTES TO THE FINANCIAL STATEMENTS - 30 JUNE 2021 (CONTINUED)


Financial assets designated as FVTPL as at 30 June 2021 are as follows: (continued)


Fair value as at

30/06/2021



value of the Fund

RM RM %

UNQUOTED FIXED INCOME SECURITIES (CONTINUED)

CORPORATE BONDS (CONTINUED)

GAMING

750,000 754,960 754,743 8.53

POWER

1,000,000 1,018,414 1,014,884 11.48

TELECOMMUNICATION

1,000,000 1,027,693 1,019,603 11.53

TOTAL CORPORATE BONDS 6,575,679 6,574,851 74.35

3.97% Berjaya Land Berhad 16/12/2021 AAA

5.25% Malakoff Power Bhd

4.67% BGSM Management Sdn Bhd 27/08/2021 AA3

39






Fair value as at

30/06/2021



value of the Fund

RM RM %



6,575,679 6,574,851 74.35

(828)

6,574,851

ACCUMULATED UNREALISED LOSS

TOTAL FINANCIAL ASSETS AT FVTPL

TOTAL UNQUOTEDFIXED INCOME SECURITIES

40




Financial assets designated as FVTPL as at 30 June 2020 are as follows:

Name of CounterNominal

value Cost

Fair value as at

30/06/2020



value of the Fund

RM RM %

UNQUOTED FIXED INCOME SECURITIES

CORPORATE BONDS

BANKS

500,000 509,458 506,308 4.61

750,000 765,424 761,959 6.94

1,274,882 1,268,267 11.55

5.35% Ambank Islamic Berhad 21/12/2020 AA3

4.90% Malayan Banking Berhad 19/10/2020 AA1

41

OPUS MONEY PLUS FUND NOTES TO THE FINANCIAL STATEMENTS - 30 JUNE 2021 (CONTINUED)




value Cost

Fair value as at

30/06/2020



value of the Fund

RM RM %



FINANCE

500,000 505,871 505,716 4.61

250,000 253,705 253,117 2.31

250,000 245,824 247,658 2.26

1,500,000 1,480,142 1,481,085 13.50

2,485,542 2,487,576 22.68

GAMING

750,000 751,925 753,860 6.87



0.00% Sabah Credit Corporation 06/11/2020 P1

0.00% Sabah Credit Corporation 18/12/2020 P1

3.89% Berjaya Land Berhad 17/12/2020 AAA

42






value Cost

Fair value as at

30/06/2020



value of the Fund

RM RM %



INVESTMENT HOLDING

1,000,000 1,010,740 1,010,720 9.21

POWER

750,000 761,869 759,604 6.92

TELECOMMUNICATION

750,000 762,291 759,178 6.92

TOLL ROAD

500,000 514,074 510,759 4.65 4.72% Besraya 28/07/2020 AA3

4.30% Rantau Abang Capital Berhad 03/12/2020 AAA

5.15% Malakoff Power Bhd 17/12/2020 AA-

5.25% BGSM Management Sdn Bhd 24/12/2020 AA3

43






Fair value as at

30/06/2020



value of the Fund

RM RM %



WATER

1,250,000 1,291,824 1,288,336 11.74

TOTAL CORPORATE BONDS 8,853,147 8,838,300 80.54

MALAYSIAN GOVERNMENT SECURITIES

750,000 766,836 766,476 6.99

766,836 766,476 6.99

9,619,983 9,604,776 87.53

(15,207)

9,604,776

3.72% Government of Malaysia 23/03/2021 NR-GOVT

TOTAL MALAYSIAN GOVERNMENT SECURITIES

TOTAL UNQUOTEDFIXED INCOME SECURITIES

ACCUMULATED UNREALISED LOSS

TOTAL FINANCIAL ASSETS AT FVTPL

4.42% Pengurusan Air Spv Berhad 05/02/2021 NR-GG

44



5 CASH AND CASH EQUIVALENTS2021 2020RM RM

Deposits with licensed financial institutions 2,202,427 1,223,143Bank balance 44,015 55,758

2,246,442 1,278,901

2021 2020

Weighted average rate of return 1.75% 2.00%

Average maturity 1 day 1 day

6 UNITS IN CIRCULATION2021 2020

Units Units

At the beginning of the financial year 10,932,364 9,525,404Creation of units during the financial year

250,749 273,414 79,189,756 25,121,278

Cancellation of units during the financial year (81,540,112) (23,987,732)

At the end of the financial year 8,832,757 10,932,364

Deposits with licensed financial institutions include interest receivable of RM106 (2020: RM67)

Arising from distribution during the financial year Arising from applications during the financial year

45



7 MANAGEMENT FEE

8 TRUSTEE’S FEE

9 AUDIT FEE AND TAX AGENT’S FEE

In accordance with the Deed, the Manager is entitled to a management fee at a rate not exceeding3.00% (2020: 3.00%) per annum of the net asset value of the Fund, calculated on a daily basis.

The management fee provided in the financial statements is 0.35% (2020: 0.35%) per annum basedon the net asset value of the Fund, calculated on a daily basis for the financial year.

There will be no further liability to the Manager in respect of the management fee other than theamounts recognised above.

In accordance with the Deed, the Trustee is entitled to a trustee fee at a rate not exceeding 0.20%(2020: 0.20%) per annum of the net asset value of the Fund, subject to a minimum of RM12,000per annum calculated on a daily basis.

The Trustee’s fee provided in the financial statements is 0.025% (2020: 0.025%) per annum basedon the net asset value of the Fund, calculated on a daily basis for the financial year.

There will be no further liability to the Trustee in respect of the Trustee’s fee other than theamounts recognised above.

The auditors’ remuneration and tax agent’s fees for the Fund for the current financial yearamounted to RM9,000 (2020: RM9,000) and RM2,800 (2020: RM2,800) respectively were borneby the Manager.

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10 TAXATION

(a) Tax charge for the financial year2021 2020RM RM

Current taxation - -

(b) Numerical reconciliation of income tax expense

2021 2020RM RM

Profit before taxation 281,068 262,434

67,456 62,984

Tax effects of: Income not subject to tax (81,270) (70,430)

1,188 616

Tax expense - -

Expenses not deductible for tax purposes

The numerical reconciliation between profit before taxation multiplied by the Malaysianstatutory income tax rate and the tax expense of the Fund is as follows:

Tax calculated at a tax rate of 24% (2020: 24%)

Restriction on tax deductible expenses for unit trust funds 12,626 6,830

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11 DISTRIBUTION

2021 2020RM RM

Distribution to unitholders are from the following sources:

350,051 240,457

41,178 22,312 Realised loss on sale of investments (131,862) (7,272) Prior year’ realised income 49,796 52,083 Gross realised income 309,163 307,580 Less: Expenses (51,427) (30,811) Gross distribution amount 257,736 276,769 Less: Taxation - -

Net distribution amount 257,736 276,769

Entitlement date Payment date

Gross distribution

per unit (sen)

Netdistribution

per unit (sen)

28-Jul-20 29-Jul-20 0.05 0.05 26-Aug-20 27-Aug-20 0.15 0.15 28-Sep-20 29-Sep-20 0.20 0.20 27-Oct-20 28-Oct-20 0.10 0.10 23-Dec-20 24-Dec-20 0.60 0.60 26-Jan-21 27-Jan-21 0.25 0.25 24-Feb-21 25-Feb-21 0.25 0.25 26-Mar-21 29-Mar-21 0.04 0.04 27-Apr-21 28-Apr-21 0.10 0.10 27-May-21 28-May-21 0.15 0.15 25-Jun-21 28-Jun-21 0.20 0.20

2.09 2.09

Interest income from unquoted fixed income securitiesInterest income from deposits with licensed financial institutions

2021

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11 DISTRIBUTION (CONTINUED)

Entitlement date Payment date

Gross distribution

per unit (sen)

Netdistribution

per unit (sen)

28-Aug-19 29-Aug-19 0.20 0.20 25-Sep-19 26-Sep-19 1.00 1.00 23-Oct-19 24-Oct-19 0.50 0.50

26-Nov-19 27-Nov-19 0.40 0.40 23-Dec-19 24-Dec-19 0.30 0.30 30-Jan-20 31-Jan-20 0.20 0.20 24-Feb-20 25-Feb-20 0.20 0.20 25-Mar-20 26-Mar-20 0.10 0.10 24-Apr-20 27-Apr-20 0.30 0.30 20-May-20 21-May-20 0.40 0.40 24-Jun-20 25-Jun-20 0.35 0.35

3.95 3.95

Gross distribution is derived using total income less total expenses.

12 MANAGEMENT EXPENSE RATIO (“MER”)

2021 2020% %

MER 0.38 0.38

MER = (A + B + C) x 100 D

A = Management feeB = Trustee’s feeC = Other expensesD

Gross distribution per unit is derived from gross realised income less expenses divided by thenumber of units in circulation, while net distribution per unit is derived from gross realised incomeless expenses and taxation divided by the number of units in circulation.

Management expense ratio includes management fee, trustee’s fee and other expenses which iscalculated as follows:

= Average net asset value of the Fund for the financial year, calculated on a daily basis

The average net asset value of the Fund for the financial year, calculated on a daily basis isRM15,057,846 (2020: RM8,119,377)

2020

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13 PORTFOLIO TURNOVER RATIO (“PTR”)

2021 2020

PTR (times) 2.68 2.04

PTR is derived from the following calculation:

(Total acquisition for the financial year + total disposal for the financial year) ÷ 2Average net asset value of the Fund for the financial year calculated on a daily basis

where: Total acquisition for the financial year = RM46,732,628 (2020: RM23,117,880)Total disposals for the financial year = RM34,105,317 (2020: RM10,006,995)

14 UNITS HELD BY THE MANAGER AND PARTIES RELATED TO THE MANAGER

The related parties and their relationship with the Fund are as follows:

Related parties Relationship

Opus Asset Management Sdn Bhd The ManagerPersons connected with the Manager (a) Employees and related to the Manager

The number of units held by person connected with the Manager is as follows:

2021 2021 2020 2020Units RM Units RM

11 11 11 11

3,622,761 3,627,122 62,933 63,165 Person connected with the Manager

The Manager*

*The units are held beneficially by the Manager for booking purposes and were transacted at theprevailing market price.

Other than the above, there were no units held by Directors or parties related to the Manager.

(b) A wholesale fund that is managed by the Manager

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15

Value of trades^Percentage

of total tradesBrokerage

fees

Percentage of total

brokerage feesRM % RM %

50,687,007 62.70 - -

13,820,906 17.10 - -

6,883,166 8.51 - -

4,733,186 5.86 - -

1,981,480 2.45 - -

1,747,230 2.16 - -

984,970 1.22 - -

80,837,945 100.00 - -

^*

Malayan Banking Berhad*

AmBank Islamic Berhad

Hong Leong Bank Berhad

United Overseas Bank (Malaysia) Bhd

AmBank (M) Berhad

TRANSACTIONS WITH BROKERS

Details of transactions by the Fund for the financial year ended 30 June 2021 are as follows:

RHB Investment Bank Berhad*

Broker/ financial institution

Included in transactions with brokers and dealers are cross trades conducted betweenportfolios managed by the Manager.

CIMB Bank Berhad

Includes purchase price plus accrued interest at acquisition.

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15

Value of trades^Percentage

of total tradesBrokerage

fees

Percentage of total

brokerage feesRM % RM %

14,611,245 44.11 - -

5,952,055 17.96 - -

4,335,822 13.09 - -

1,788,078 5.40 - -

1,528,230 4.61 - -

1,522,771 4.60 - -

1,125,112 3.40 - -

762,140 2.30 - -

748,120 2.26 - -

505,478 1.53 - -

245,824 0.74 - -

33,124,875 100.00 - -

^* Included in transactions with brokers and dealers are cross trades conducted between

portfolios managed by the Manager.

Others

Includes purchase price plus accrued interest at acquisition.

Kenanga Investment Bank Berhad

United Overseas Bank (Malaysia) Bhd

TRANSACTIONS WITH BROKERS (CONTINUED)

Details of transactions by the Fund for the financial year ended 30 June 2020 are as follows:

Broker/ financial institution

RHB Investment Bank Berhad*

AmBank (M) Berhad

Hong Leong Bank Berhad

Standard Chartered Bank Malaysia Berhad

Affin Hwang Investment Bank Bhd

Alliance Bank Malaysia Berhad*

CIMB Islamic Bank

Malayan Banking Berhad*

52



16 SEGMENTAL INFORMATION

17

There were no changes in the reportable operating segments during the financial year.

The internal reporting provided to the Committee for the Fund’s assets, liabilities andperformance is prepared on a consistent basis with the measurement and recognitionprinciples of MFRS and IFRS. The Committee is responsible for the performance of theFund and considers the business to have a single operating segment located in Malaysia.Asset allocation decisions are based on a single, integrated investment strategy and theFund’s performance is evaluated on an overall basis.

The reportable operating segment derives its income by seeking investments to achievetargeted returns consummate with an acceptable level of risk within the portfolio. Thesereturns consist of interest and gains on the appreciation in the value of investments which isderived from unquoted fixed income securities in Malaysia.

SIGNIFICANT EVENT DURING THE FINANCIAL YEAR AND SUBSEQUENTEVENT

On 11 March 2020, the World Health Organization declared the COVID-19 outbreak asglobal pandemic. Following the declaration, the Government of Malaysia has on 18 March2020 imposed the Movement Control Order (“MCO”) and subsequently entered into variousphases of the MCO to curb the spread of the COVID-19 pandemic in Malaysia.

The management has assessed the impact on the Fund and of the opinion that there were nomaterial financial impacts arising from the pandemic. Nevertheless, the fund manager hastaken and will continue to take necessary steps to safeguard and preserve its financialcondition, emphasising on liquidity management to meet its continuing financialcommitments and liquidity needs.

Given the dynamic nature of the COVID-19 pandemic, it is not practicable to provide areasonable estimate of its impacts on the Fund’s financial position, operating results andcash flows at the date on which these financial statements are authorised for issue.

53


CORPORATE INFORMATION

MANAGER

Opus Asset Management Sdn Bhd 199601042272 (414625-T)B-19-2, Northpoint Offices,Mid Valley City,No. 1, Medan Syed Putra Utara,59200 Kuala LumpurMalaysia

Tel: 03-2288 8882Fax: 03-2288 8889

TRUSTEE

SCBMB Trustee Berhad 201201021301 (1005793-T)Level 23, Equatorial PlazaJalan Sultan Ismail50250 Kuala Lumpur,Malaysia

Tel: 03-7682 9724

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OPUS MONEY PLUS FUND

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