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Fund Information

Fund Name
PB Islamic Equity Fund (PBIEF)

Fund Type
Capital Growth

Fund Category
Equity (Shariah-compliant)

Fund Investment Objective


To achieve capital growth through a diverse selection of growth stocks that
comply with Shariah requirements.

Fund Performance Benchmark


The benchmark for PBIEF is the FTSE Bursa Malaysia EMAS Shariah
Index, a free float adjusted capitalisation-weighted index comprising
constituents of the FTSE Bursa Malaysia EMAS Index, which have been
designated as Shariah-compliant securities by the Shariah Advisory
Council of the Securities Commission Malaysia.
The PBIEF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited
(FTSE) or by Bursa Malaysia Berhad (BURSA MALAYSIA) or by the London Stock Exchange
Group companies (the LSEG) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any
warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained
from the use of the FTSE BURSA MALAYSIA EMAS SHARIAH INDEX (the Index), and/or the
figure at which the said Index stands at any particular time on any particular day or otherwise. The
Index is compiled and calculated by FTSE. However, neither FTSE nor BURSA MALAYSIA nor
LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index
and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any
person of any error therein.

FTSE, FT-SE and Footsie are trade marks of LSEG and are used by FTSE under licence.
BURSA MALAYSIA is a trade mark of BURSA MALAYSIA.

Fund Distribution Policy


Incidental

Breakdown of Unitholdings of PBIEF as at 31 August 2016


Size of holdings No. of % of No. of units
unitholders unitholders held (million)
5,000 and below 2,015 5.17 7
5,001 to 10,000 3,488 8.95 26
10,001 to 50,000 16,027 41.10 426
50,001 to 500,000 16,955 43.48 2,187
500,001 and above 506 1.30 574
Total 38,991 100.00 3,220

Note: Excluding Managers Stock.

PB Islamic Equity Fund


Fund Performance Fund Performance
For the Financial Year Ended 31 August 2016 For the Financial Year Ended 31 August 2016

Average Total Return for the Following Years Ended 31 August Distribution and Unit Split
2016
Financial year 2016 2015 2014
Average Total
Return of PBIEF (%) Date of distribution 30.8.16 28.8.15 29.8.14
1 Year 8.07 Distribution per unit
3 Years 5.98 Gross (sen) 0.25 1.40 1.75
5 Years 8.66 Net (sen) 0.25 1.40 1.74
Unit split - - -
Annual Total Return for the Financial Years Ended 31 August
Year 2016 2015 2014 2013 2012 Impact on NAV Arising from Distribution (Final) for the
PBIEF (%) 8.07 -1.68 11.01 7.27 13.32 Financial Years
The calculation of the above returns is based on computation methods of Lipper. 2016 2015 2014
Notes: Sen Sen Sen
per unit per unit per unit
1. Total return of the Fund is derived by this formulae:

( )
End of Period FYCurrent Year NAV per unit Net asset value before distribution 26.35 25.78 27.96
-1 Less: Net distribution per unit (0.25) (1.40) (1.74)
End of Period FYPrevious Year NAV per unit
(Adjusted for unit split and distribution paid out for the period) Net asset value after distribution 26.10 24.38 26.22
The above total return of the Fund was sourced from Lipper. Past performance is not necessarily indicative of future performance and
unit prices and investment returns may go down, as well as up.
2. Average total return is derived by this formulae:
Total Return Asset Allocation for the Past Three Financial Years
Number of Years Under Review
As at 31 August
Other Performance Data for the Past Three Financial Years (Per Cent of Net Asset Value)
Ended 31 August 2016 2015 2014
2016 2015 2014 % % %
Unit Prices (MYR)* EQUITY SECURITIES
Highest NAV per unit for the year 0.2693 0.2809 0.2861 Quoted
Lowest NAV per unit for the year 0.2426 0.2470 0.2511 Malaysia
Net Asset Value (NAV) and Units in Basic Materials 4.4 1.9 3.0
Circulation (UIC) as at the End of Communications 19.6 24.7 21.9
the Year Consumer, Cyclical - - 2.2
Total NAV (MYR000) 841,697 700,553 475,497 Consumer, Non-cyclical 19.8 19.4 23.1
UIC (in 000) 3,224,305 2,873,719 1,813,635 Diversified 8.7 6.9 9.2
NAV per unit (MYR) 0.2610 0.2438 0.2622 Energy 7.8 2.6 7.4
Total Return for the Year (%) 8.07 -1.68 11.01 Financial 4.2 4.3 4.5
Capital growth (%) 7.37 -3.16 10.13 Industrial 5.9 8.6 6.2
Income (%) 0.65 1.53 0.80 Utilities 11.0 10.1 13.2

Management Expense Ratio (%) 1.58 1.58 1.59 81.4 78.5 90.7
Portfolio Turnover Ratio (time) 0.28 0.64 0.54
Outside Malaysia
* All prices quoted are ex-distribution. Australia
Notes: Management Expense Ratio is calculated by taking the total management expenses Consumer, Non-cyclical - - 1.2
expressed as an annual percentage of the Funds average net asset value.
Hong Kong
Portfolio Turnover Ratio is calculated by taking the average of the total acquisitions and
disposals of the investments in the Fund for the year over the average net asset value
Communications 1.6 1.3 0.1
of the Fund calculated on a daily basis. Consumer, Cyclical - 1.5 -
The Portfolio Turnover Ratio for the financial year 2016 dropped to 0.28 time from 0.64 1.6 2.8 0.1
time in the previous financial year on account of lower level of rebalancing activities
performed by the Fund during the year.

PB Islamic Equity Fund PB Islamic Equity Fund


Fund Performance Statement Of Distribution Of Returns
For the Financial Year Ended 31 August 2016 For the Financial Year Ended 31 August 2016

Asset Allocation for the Past Three Financial Years (contd) Sen Per Unit

As at 31 August Gross Distribution 0.2500


(Per Cent of Net Asset Value) Net Distribution 0.2500
Total Returns 1.9700
2016 2015 2014
% % %
Effects of Distribution on NAV per unit before and after
Indonesia
Communications 0.5 - 0.7 Distribution:
Consumer, Non-cyclical 1.0 2.0 - Before After
1.5 2.0 0.7 Distribution Distribution

Korea NAV per unit (MYR) 0.2635 0.2610


Basic Materials - - 0.5
Communications 1.3 1.1 1.1
Consumer, Cyclical - - 0.2
1.3 1.1 1.8
Singapore
Industrial 0.9 1.5 -
Taiwan
Consumer, Non-Cyclical - - 0.5
Technology - 1.3 -
- 1.3 0.5
Thailand
Consumer, Non-Cyclical 1.5 1.7 -
United States
Communications 0.7 2.9 1.1
Technology - 1.2 2.1
0.7 4.1 3.2
TOTAL QUOTED EQUITY
SECURITIES 88.9 93.0 98.2
COLLECTIVE INVESTMENT FUNDS
Quoted
Malaysia
Financial 1.6 1.3 0.7
TOTAL QUOTED COLLECTIVE
INVESTMENT FUNDS 1.6 1.3 0.7
SHARIAH-BASED PLACEMENTS
WITH A FINANCIAL INSTITUTION 8.6 10.7 6.6
OTHER ASSETS & LIABILITIES 0.9 -5.0 -5.5

PB Islamic Equity Fund PB Islamic Equity Fund


Managers Report Managers Report

Overview Effect of Distribution Reinvestment on Portfolio Exposures


This Annual Report covers the financial year from 1 September 2015 to 31-Aug-16
31 August 2016. Before Distribution After Distribution
Reinvestment* Reinvestment*
PB Islamic Equity Fund (PBIEF or the Fund) seeks to achieve capital
growth through a diverse selection of growth stocks that comply with Shariah-compliant Equities 90.5% 89.6%
Shariah requirements. Islamic Money Market 9.5% 10.4%
* Assumes full reinvestment.
For the financial year under review, the Fund registered a return of +8.07%
as compared to its Benchmarks return of +8.63%. The Funds Shariah- Change in Portfolio Exposures from 31-Aug-15 to 31-Aug-16
compliant equity portfolio registered a return of +10.73% while its Islamic
money market portfolio registered a return of +3.20% during the financial Average
year under review. A detailed performance attribution analysis is provided 31-Aug-15 31-Aug-16 Change Exposure
in the sections below. Shariah-compliant Equities 89.2% 89.6% +0.4% 89.02%
Islamic Money Market 10.8% 10.4% -0.4% 10.98%
For the five financial years ended 31 August 2016, the Fund generated
a total return of +43.38% and outperformed the Benchmarks return
Returns Breakdown by Asset Class
of +29.43% over the same period. Consequently, it is the opinion of the
Manager that the Fund has met its objective to achieve capital growth over Market /
the said period. Returns On Benchmark Benchmark Average Attributed
Investments Returns Index Used Exposure Returns

Performance of PBIEF Shariah-


from 31 August 2011 to 31 August 2016 compliant
Equities 10.73% 8.63% FBMS 89.02% 9.55%
60%
Islamic Money
PBIEF FBMS
Market 3.20% 3.57% 1M-IIMMR 10.98% 0.35%
45%
less:
Returns from Start of Period

Expenses -1.83%
30%
Total Net
Return for
15%
the Year -8.07%
FBMS = FTSE Bursa Malaysia EMAS Shariah Index
0%
1M-IIMMR = 1-Month Islamic Interbank Money Market Rate

-15%
2011 2012 2013 2014 2015 2016
Shariah-compliant Equity Portfolio Review
For the financial year under review, the Funds Shariah-compliant equity
The FTSE Bursa Malaysia EMAS Shariah Index (FBMS) is the selected portfolio registered a return of +10.73% as compared to the equity
Benchmarks return of +8.63%. The Funds Shariah-compliant equity
Benchmark for PBIEF as it is a free float adjusted capitalisation-weighted
portfolio outperformed the Benchmark as it was overweighted in selected
index which comprises constituents of the FTSE Bursa Malaysia EMAS stocks in the Communications sector which outperformed the broader
Index, which have been designated as Shariah-compliant securities by the market over the financial year under review.
Shariah Advisory Council of the Securities Commission of Malaysia.
The Fund commenced the financial year under review with a Shariah-
Income Distribution and Impact on NAV Arising from compliant equity exposure of 89.2% and its Shariah-compliant equity
Distribution exposure was increased to above 90% in November 2015 to capitalise on
Shariah-compliant investment opportunities in the domestic and regional
The gross distribution of 0.25 sen per unit (net distribution of 0.25 sen per unit) markets. The Funds Shariah-compliant equity weight was reduced to
below 90% in January 2016 to weather the consolidation phase in the
for the financial year ended 31 August 2016 had the effect of reducing the
domestic and regional markets. The Fund ended the financial year under
Net Asset Value (NAV) of the Fund after distribution. As a result, the NAV per review with a Shariah-compliant equity exposure of 89.6%. Based on
unit of the Fund was reduced to RM0.2610 from RM0.2635 after distribution. an average Shariah-compliant equity exposure of 89.02%, the Shariah-
compliant equity portfolio is deemed to have registered a return of +9.55%
to the Fund as a whole for the financial year under review. A full review of
the performance of the equity markets is tabled in the following sections.
PB Islamic Equity Fund PB Islamic Equity Fund
Managers Report Managers Report

Sector Allocations In mid-July 2016, the FBMS Index rose amid buoyant global markets
and the unexpected move by Bank Negara Malaysia (BNM) to reduce
In terms of sector allocation within the Shariah-compliant equity portfolio, the Overnight Policy Rate (OPR) by 25 bps. The Index rose higher in
the top 5 sectors account for 66.9% of the NAV of the Fund and 73.9% August 2016 amid higher oil prices and firmer regional markets to touch
of the Funds Shariah-compliant equity portfolio. The weightings of the an intra-day high of 12,596.80 points in mid-August. However, the Index
top 5 sectors in Malaysia (unless otherwise indicated) are in the following subsequently eased on the back of lacklustre global sentiment and profit-
order: Consumer, Non-cyclical (19.8%), Communications (19.6%), Utilities taking activities to close at 12,430.50 points and register a gain of 8.63% for
(11.0%), Diversified (8.7%) and Energy (7.8%). the financial year under review.
Islamic Money Market Portfolio Review
FTSE Bursa Malaysia EMAS Shariah Index
During the financial year under review, the Funds Islamic money market (31 August 2015 - 31 August 2016)
portfolio, which was invested primarily in Islamic deposits, yielded a return 13,500
of +3.20%. In comparison, the 1-Month Islamic Interbank Money Market
Rate (1M-IIMMR) registered a return of +3.57% over the same period. 13,000

12,500
During the financial year under review, the Funds exposure to Islamic
money market investments decreased from 10.8% to 10.4% as funds were 12,000
mobilised into Shariah-compliant equity investments. Based on an average

Index
exposure of 10.98%, the Islamic money market portfolio is estimated to 11,500

have contributed +0.35% to the Funds overall returns for the financial year 11,000
under review.
10,500

Stock Market Review 10,000


Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16
Commencing the financial year under review at 11,443.34 points, the FTSE
Bursa Malaysia EMAS Shariah (FBMS) Index retraced to a low of 11,366.06
points in early September 2015 in tandem with a major correction in global Starting the financial year under review at 78.87 points, regional equity
equity markets amid concerns over Chinas economic growth outlook. The markets, as proxied by the S&P Shariah BMI Asia Ex-Japan (S&P SAEJ)
Index subsequently rebounded in late September 2015 as global equity Index, continued to decline in September 2015 on back of concerns over
markets recovered on the back of positive U.S. economic data. Chinas economic growth outlook and an impending U.S. interest rate rise.
Profit-taking activities following the announcement of Budget 2016 caused The S&P SAEJ Index rebounded in October 2015 following a statement
the Index to retrace towards late October 2015. The Index continued to by the European Central Bank (ECB) that it was prepared to undertake
trend lower in November 2015 due to expectations of an increase in U.S. another large stimulus package. The cut in Chinas interest rates and
interest rates in December 2015. Following the U.S. Federal Reserves reserve requirement ratios for banks as well as the U.S. Federal Reserves
decision to hike interest rates by 25 basis points (bps) on 16 December, stance to keep its interest rate hike on hold in October 2015 also helped
the Index subsequently rebounded to a high of 12,894.94 points in late bolster market sentiment. However, the Index eased in mid-November
December 2015 in tandem with global equity markets. as stronger-than-expected U.S. job market data gave rise to increased
concerns of a U.S. interest rate hike in December 2015.
The retracement in regional and global markets as well as crude oil
prices falling below US$40/barrel caused the FBMS Index to retrace to a The S&P SAEJ Index continued to retrace until mid-January in tandem with
4-month low of 12,105.60 points in mid-January 2016. The revised 2016 low oil prices. The Index subsequently rebounded in February and March
budget announcement on 28 January, coupled with reduced volume of 2016 on the back of the ECBs rate cut and expectations that the increase
foreign selling in February 2016 helped to lift market sentiment. The Index in U.S. interest rates would be delayed.
continued its uptrend in March 2016 in tandem with higher regional markets The Index traded range-bound from April to June 2016 as the U.S. Federal
and firmer global sentiment. Following declines in the regional markets, Reserves decision to keep interest rates unchanged was within market
the FBMS Index retraced towards late April 2016 and continued to be sold expectations. The S&P SAEJ Index advanced in July and August 2016 on
down in May 2016 due to weaker-than-expected corporate earnings for improving economic momentum in China and expectations of further delays
the first quarter of 2016. The FBMS Index was dampened by uncertainties in U.S interest rate hikes to close at 89.99 points, registering an increase
arising from Brexit in June 2016. of 14.10% (+10.18% in Ringgit terms) for the financial year under review.
Regional markets, namely the Indonesia, Taiwan, South Korea, Singapore,
Thailand and Hong Kong markets registered returns of +25.15%, +18.25%,
+9.35%, +4.47%, +4.13% and -3.01% (in Ringgit terms) respectively for the
financial year under review.

PB Islamic Equity Fund PB Islamic Equity Fund


Managers Report Managers Report

Commencing the financial year under review at 147.75 points, the U.S.
equity market, as proxied by the S&P U.S. Shariah Index, stabilised Malaysias Annual GDP Growth
in September 2015 on the back of positive U.S. economic data and 7.0
subsequently rallied in October 2015 following a statement by the ECB that
6.0
it was prepared to undertake another large stimulus package. The cut in 6.0
5.5
5.3
Chinas interest rates and reserve requirement ratios for banks as well as 4.7
5.0
5.0
the U.S. Federal Reserves stance to keep its interest rate hike on hold in 4.0 - 4.5
October 2015 also helped bolster market sentiment. 4.0
%

However, the Index eased in November 2015 as stronger-than-expected 3.0

U.S. job market data gave rise to increased concerns of a U.S. interest rate
2.0
hike in December 2015. After the Federal Reserve raised interest rates for
the first time in nearly a decade in December 2015, the Index traded range- 1.0
bound in the last month of the year. The U.S. market fell sharply in January
0.0
2016 in tandem with the overall decline in global markets on renewed 2011 2012 2013 2014 2015 2016F
concerns over Chinas economic growth and sustained low oil prices.
Source: Bank Negara Malaysia
The Index subsequently rebounded in February 2016 as oil prices rallied
on talks of a production freeze by the members of the Organisation of Following a growth of 1.9% in 2015, Malaysias exports registered a
the Petroleum Exporting Countries (OPEC). The Index remained flat in moderate growth of 1.2% in 1H 2016 mainly due to slower exports of
March and April 2016 as weak first-quarter corporate earnings did little to electrical and electronic products. Led by a smaller decline in the imports of
improve sentiment. The Index traded range-bound in June 2016 as the U.S. intermediate goods, import growth gained pace from 0.4% in 2015 to 1.4%
Federal Reserves decision to keep interest rates unchanged was within in 1H 2016. Malaysias cumulative trade surplus widened to RM41.8 billion
market expectations. The Index subsequently advanced in July 2016 amid in 1H 2016 compared to RM41.7 billion in the same period last year. Due to
expectations of further delays in Fed rate hikes and more loosening policies capital inflows, Malaysias foreign reserves increased to US$97.3 billion as
by central banks around the world due to concerns on a slowing global at end of July 2016 compared to US$96.7 billion a year ago.
economy.
Compared to 2.1% in 2015, Malaysia registered an average inflation rate of
The Index traded range-bound in August 2016 on the back of lower crude 2.4% in the first seven months of 2016 amid higher food and housing costs.
oil prices and the possibility of an earlier than expected Fed rate hike. The BNM reduced the OPR by 25 bps to 3.00% for the first time in seven years,
S&P U.S. Shariah Index closed at 162.43 points in August to register a on concerns that uncertainties in the global environment could dampen
gain of 9.93% (+6.75% in Ringgit terms) for the financial year under review. Malaysias growth. Loans growth moderated to 6.4% in the first seven
months of 2016 from 9.0% in 2015 on lower demand from the household
Islamic Money Market Review sector.
The 1M-IIMMR eased from 3.58% to 3.49%, averaging at 3.54% during the Due to increased government spending, the Federal governments budget
financial year under review following the 25 bps cut in OPR. deficit for 1H 2016 rose to RM32.8 billion (5.6% of GDP) from RM15.6 billion
(2.8% of GDP) in 1H 2015. The 1H 2016 budget deficit has exceeded the
Economic Review target of 3.1% of GDP for 2016 projected by the Ministry of Finance (MOF).

Malaysias GDP growth moderated from 5.0% in 2015 to 4.1% in 1H 2016 On the regional front, Singapores GDP growth rose from 2.0% in 2015
on the back of slower investment spending and export growth. Growth to 2.1% in 1H 2016 amid faster growth in manufacturing and construction
in the services sector edged up from 5.1% in 2015 to 5.4% in 1H 2016. activities. Meanwhile, Indonesias economic growth inched up from 4.8% in
Meanwhile, the pace of construction sector activities firmed from 8.2% in 2015 to 5.0% in 1H 2016 on the back of higher investment spending.
2015 to 8.4% in 1H 2016.
Thailands GDP growth gained pace from 2.8% in 2015 to 3.4% in 1H 2016
amid higher consumer spending and export growth.
In North Asia, Chinas GDP growth slowed from 6.9% in 2015 to 6.7% in 1H
2016 amid a moderation in the manufacturing and services sectors. Growth
in the manufacturing sector edged down from 6.0% in 2015 to 5.9% in
1H 2016, while the pace of the services sector eased from 8.3% to 7.5%
over the same period. Hong Kongs GDP growth moderated from 2.4% in
2015 to 1.2% in 1H 2016 due to lower domestic demand and exports.

PB Islamic Equity Fund PB Islamic Equity Fund


Managers Report Managers Report

South Koreas GDP growth rose from 2.6% in 2015 to 3.0% in 1H 2016 on For the Eurozone, initial estimates of a sustained growth rate of 1.6%
the back of higher investment spending. Meanwhile, Taiwans GDP growth in 2016 may have to be revised down due to the effects of Brexit on the
moderated from 0.6% in 2015 to 0.2% in 1H 2016 amid lower investment Eurozone economy.
spending and exports.
In North Asia, Chinas GDP growth is projected to ease from 6.9% in 2015
On the international front, U.S. GDP growth eased from 2.6% in 2015 to 6.5% in 2016 as economic growth continues to moderate. Meanwhile,
to 1.4% in 1H 2016 amid slower consumer and investment spending. Chinas inflation rate is projected to increase from 1.4% in 2015 to 2.0% in
Consumer spending growth moderated from 3.2% to 2.6% over the same 2016 due to higher food prices. The Chinese central bank has the flexibility
period. Meanwhile, investment spending contracted by 2.0% in 1H 2016 to further cut the one-year lending rate to support domestic demand. In
compared to a growth of 5.0% in 2015 due to lower investment in the addition, the Chinese government may unveil more stimulus measures
industrial sector. such as further fiscal spending in the event the economy grows at a
weaker-than-expected pace.
At the Federal Open Market Committee (FOMC) meeting in mid-December
2015, the U.S. Federal Reserve raised the Federal funds rate for the first Over in Hong Kong, GDP growth is projected to slow from 2.4% in 2015
time in nearly a decade to a target range of 0.25%-0.50% from 0.00%-0.25% to 1.3% in 2016 amid moderating external demand and a slowdown in
previously. At the FOMC meeting in mid-July 2016, the U.S. Federal inbound tourism. Going forward, the Hong Kong government is anticipated
Reserve kept the Federal funds rate unchanged at a range of 0.25%-0.50%. to maintain its existing tightening stance on the residential property market.
Although labour markets continued to improve, the Federal Reserve noted However, ample liquidity, demand for better living standards and resilient
that business fixed investment remained soft. economic growth will underpin Hong Kongs property market over the long
term.
The Eurozones GDP growth was sustained at 1.6% in 1H 2016 compared
to a similar growth rate in 2015. At its monetary policy meeting held on South Koreas GDP growth is projected to grow by 2.6% in 2016, which
10 March 2016, the ECB reduced its main refinancing rate by 5 bps to is similar to the growth rate in 2015 amid resilient private consumption.
0.00% while the deposit rate was reduced by 10 bps to -0.40%. The ECB Meanwhile, Taiwans GDP growth is projected to gain pace from 0.6% in
also increased the pace of its asset-buying program from 60 billion to 2015 to 1.0% in 2016 as exports are envisaged to recover.
80 billion with effect from April 2016 to improve the regions economic
recovery and combat deflation. In South-East Asia, Singapores GDP growth is projected to moderate from
2.0% in 2015 to 1.8% in 2016 amid moderating external demand. However,
In a referendum held on 23 June 2016, British voters voted in favour fiscal spending and corporate tax rebates are expected to support domestic
of exiting the European Union (EU). Upon the United Kingdom (U.K.) demand. Indonesias GDP growth is projected to grow at 5.0% in 2016
governments formal notification of an exit from the EU, the U.K. has a two- propelled by firmer investment spending.
year period to negotiate new trade treaties with the EU.
Thailands GDP growth is envisaged to gain pace from 2.8% in 2015 to
3.0% in 2016, as the tourism and manufacturing sectors benefit from a
Outlook and Investment Strategy
more politically stable environment.
After closing on a mixed note in 2015, global and regional equity markets
Malaysias GDP growth is anticipated to moderate from 5.0% in 2015 to a
generally trended lower in the first two months of 2016 amid continued
range of 4.0%-4.5% in 2016 on the back of a slower export growth. However,
concerns over the global economic outlook for 2016, continued weakness
economic growth is expected to be supported by sustained consumer and
in Chinese manufacturing output and the Yuans depreciation. Global and
investment spending amid government measures to increase disposable
regional markets rebounded in March 2016 amid firmer energy prices
incomes and the ongoing implementation of infrastructure projects.
but subsequently traded on a mixed note in 2Q 2016 on the back of
renewed global economic concerns and the consequences of Brexit on At the end of August 2016, the local stock market was trading at a
the European economy. Global and regional markets strengthened in July prospective P/E of 16.8x, which is above its 10-year average P/E ratio of
2016 amid expectations of fresh monetary and fiscal easing around the 15.9x. The markets dividend yield of 3.10% is close to the 12-Month fixed
world. In August 2016, global markets closed mixed amid concerns that deposit rate of 3.11%.
the Federal Reserve may consider earlier-than-expected interest rate hikes
amid a resilient labour market. Looking ahead, the performance of equity At the end of the financial year under review, South-East Asian markets
markets will depend on the growth momentum of economic activities in the were generally trading at a premium while North Asian markets were
U.S., Europe and Asia Pacific region. generally trading at a discount to their historical averages following their
respective performances over the same period.
U.S. economic growth is projected to moderate from 2.6% in 2015 to a
range of between 1.4% and 1.9% in 2016 due to a slowdown in investment Given the above factors, the Fund will continue to rebalance its investment
spending. portfolio according to its objective of achieving capital growth through a
diverse selection of growth stocks that comply with Shariah requirements.
Notes: Q = Quarter
H = Half

PB Islamic Equity Fund PB Islamic Equity Fund


Managers Report Statement Of Assets And Liabilities
As at 31 August 2016

Policy on Soft Commissions 2016 2015


MYR000 MYR000
The management company may receive goods or services which include
research materials, data and quotation services and investment related Assets
publications by way of soft commissions provided they are of demonstrable Investments 761,425 660,508
benefit to the Fund and unitholders. Tax recoverable 31 106
Other receivables 1,824 1,654
During the financial year under review, PBIEF has received data and Cash and cash equivalents 89,720 84,974
quotation services by way of soft commissions. These services were used
to provide financial data on securities and price quotation information to the 853,000 747,242
Fund Manager during the financial year under review. Liabilities
Due to brokers/financial institutions, net 272 2,883
Due to the Manager, net 2,842 3,455
Due to the Trustee 46 40
Other payables 82 79
Distribution payable 8,061 40,232
11,303 46,689
Total net assets 841,697 700,553
Net asset value (NAV) attributable
to unitholders (Total equity) 841,697 700,553
Units in circulation (in 000) 3,224,305 2,873,719

NAV per unit, ex-distribution (in sen) 26.10 24.38

PB Islamic Equity Fund PB Islamic Equity Fund


Statement Of Income And Expenditure Statement Of Changes In Net Asset Value
For the Financial Year Ended 31 August 2016 For the Financial Year Ended 31 August 2016

2016 2015 (Accumulated


MYR000 MYR000 loss)/
Unitholders retained
Income capital earnings Total
Profit from Shariah-based placements 2,352 2,266 MYR000 MYR000 MYR000
Dividend income 16,636 19,458
Net gain/(loss) from investments 59,390 (28,159) As at 1 September 2014 439,040 36,457 475,497
Net realised/unrealised foreign exchange Creation of units 291,269 - 291,269
(loss)/gain (1,897) 1,674 Cancellation of units (7,675) - (7,675)
Net loss after taxation - (18,306) (18,306)
76,481 (4,761) Distribution - (40,232) (40,232)
Less: Expenses As at 31 August 2015 722,634 (22,081) 700,553
Trustees fee 514 419
Management fee 12,849 10,475
Audit fee 7 7
Tax agents fee 3 3 As at 1 September 2015 722,634 (22,081) 700,553
Brokerage fee 1,293 2,384 Creation of units 102,868 - 102,868
Administrative fees and expenses 148 130 Cancellation of units (15,203) - (15,203)
14,814 13,418 Net income after taxation - 61,540 61,540
Distribution (1,068) (6,993) (8,061)
Net income/(loss) before taxation 61,667 (18,179)
Taxation (127) (127) As at 31 August 2016 809,231 32,466 841,697

Net income/(loss) after taxation 61,540 (18,306)


Net income/(loss) after taxation is made
up as follows:
Realised 4,131 42,683
Unrealised 57,409 (60,989)
61,540 (18,306)

Final distribution for the financial year 8,061 40,232

PB Islamic Equity Fund PB Islamic Equity Fund


Statement Of Cash Flows
For the Financial Year Ended 31 August 2016

2016 2015
MYR000 MYR000
Cash flows from operating activities
Proceeds from sale of investments 200,938 321,789
Purchase of investments (247,034) (545,459)
Subscription of rights - (765)
Cash received from capital distribution - 80
Profit from Shariah-based placements
received 2,366 2,248
Interest received from foreign currency
accounts 1 1
Net dividend income received 16,326 18,587
Trustees fee paid (508) (404)
Management fee paid (12,716) (10,096)
Audit fee paid (7) (7)
Tax agents fee paid (3) (5)
Taxation recovered 75 -
Payment of other fees and expenses (146) (141)
Payment to charitable bodies (2) -
Net cash outflow from operating
activities (40,710) (214,172)
Cash flows from financing activities
Cash proceeds from units created 102,868 296,027
Cash paid on units cancelled (15,949) (5,227)
Distribution paid (40,232) (31,666)
Net cash inflow from financing
activities 46,687 259,134
Net increase in cash and cash
equivalents 5,977 44,962
Effect of change in foreign exchange
rates (1,231) 1,565
Cash and cash equivalents at the
beginning of the financial year 84,974 38,447
Cash and cash equivalents at the end
of the financial year 89,720 84,974
Cash and cash equivalents comprise:
Cash at banks 16,905 10,235
Shariah-based placements with a
licensed financial institution 72,815 74,739
89,720 84,974

PB Islamic Equity Fund

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