Takaful investment linked funds report ended 31 March 2011

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Takaful investment linked funds report ended 31 March 2011

  1. 1. Takaful Investment-Linked Funds Report CONTENTS Portfolio Statement Statement by Manager Independent Auditors' Report Statements of Financial Position Statements of Comprehensive Income Statements of Changes in Equity Notes to the Financial Statements 1-18 19 20-21 22-23 24-25 26-28 Cash Flow Statements 29-33 34-87 Takaful Investment-Linked Funds Takaful Investment-Linked Funds Report for the year ended 31 March 2011
  2. 2. PORTFOLIO STATEMENT Takaful Investment-Linked Funds Report 1 FUND NAME : TAKAFUL IKHLAS FIXED INCOME FUND TAKAFUL IKHLAS BALANCED FUND TAKAFUL IKHLAS GROWTH FUND EQUITY MARKET OUTLOOK Our view on the market is underlined by two key observations on portfolio flows: - Bonds to equities – mostly evident in the US and other developed economies as improved growth outlook has raised investors’ risk appetite in equities. Selectively in markets like Indonesia, there has been aggressive sell down on the bond market. The foreign selling on Malaysian govvies remain moderate but we are mindful of the high foreign holdings of MGS (estimated RM73bn). -EMequitiestoDMequities–inflationhangoverin emerging economies and concerns on tightening policies has triggered a shift from EM equities to DM equities. Although Malaysia is least affected by inflations, the portfolio shift out of Asia has affected the KLCI recently. This trend is expected to continue in the 1H11 amidst volatile market conditions. Until we see inflations peaking in China and signs that Asia’s tightening stance is over, we expect foreign investors will still remain cautious on emerging markets. The capital flight to developed economies may dominate in 1H 2011. However, we remain positive on structural improvements in Asian economies and as such remain positive on EM Asia over the medium term. Likewise, the economic improvements in the US may cyclical and may not be sustainable. As such, we could see a reversal of flows back into Asia in 2H 2011 when inflation concerns eases (and policy tightening ends). FIXED INCOME MARKET REVIEW Atthemonetarypolicy(MPC)meetingon11March 2011, policymakers held the Overnight Policy Rate (OPR) steady at 2.75%, however they hiked Statutory Reserve Requirement (SRR) ratio from 1.00% to 2.00%, effective 1 April 2011 as a pre- emptive measure to manage the risk of liquidity build-up from resulting in macroeconomic and financial imbalances. Bank Negara Malaysia (BNM) in its 2010 Annual Report released on 23 March 2011, maintained its previous GDP growth outlook of 5.0-6.0% this year (versus 7.2% growth in 2010). Meanwhile, inflation rate is expected to rise to an average of 2.5% to 3.5% in 2011 from 1.7% in 2010. Steadier yield movements was seen during early of the month as market players attracted into the safe haven of the government bond market attributable to geo-political tensions in MENA (Middle East North Africa) as well as Japan earthquake and tsunami effects. However, the higher inflationary expectation set by the BNM annual report has weakened Malaysian Government Bonds market. MGS yields were rose across the board mainly along the 3-year and 5-year MGS as shorter term govvies are more sensitive to policy rate changes. Central bank conducted two government bonds auctions in the month of March. The mid-month reopening of the MGS September 2016 received a bid-to-cover ratio of 2.24 times for the
  3. 3. Takaful Investment-Linked Funds Report 2 FIXED INCOME MARKET REVIEW (CONTD). RM4.0 billion offered with average yield of 3.567%. Auction of 3.5 years GII maturing September 2014 saw a weak demand with 1.43 times oversubscribed. The average yield generated from the RM4.0 billion offer was at 3.505%. BOND MARKET OUTLOOK Upcoming govvies issuance: 15-year new issue of MGS maturing April 2026 and a 10-year new issue of GII maturing April 2021 which will see about RM4.0 billion being offered. PM remarked that the government may sell RM48 billion in Islamic bonds to fund the MRT project and more investments will be unveil to spur growth and consider slowing subsidy cuts to shield consumers from rising prices.
  4. 4. Takaful Investment-Linked Funds Report 3 Summary of Position Takaful Ikhlas Fixed Income Fund (TIFIF) Apr 2010 - Mar 2011 Total Capital Injections Total Net Income/(Losses) Value at Cost Market Value Exposure : : : : Bonds : Liquidity : Total As At 31 Mar 2011 RM 4,512,030 353,034 4,864,666 4,865,826 81.43% 18.57% RM RM RM 3,961,242 903,424 4,864,666 PORTFOLIO SUMMARY (TIFIF) Since Inception until 31 March 2011 1 Year (Apr 2010 - March 2011) 3 Years (Apr 2008 - March 2011) AVERAGE ANNUAL RETURN PORTFOLIO BENCHMARK 18.42% 10.65% 5.64% 2.87% 13.16% 9.34% Fund Performance Note: Fund performance compared with Benchmark on GIA
  5. 5. Takaful Investment-Linked Funds Report 4 COMPARATIVE FUND PERFORMANCE TABLE (TIFIF) Total Investment (RM) Total NAV/Market Value (RM) CATEGORY OF INVESTMENTS MAR-07 MAR-08 - - 100.00% 1,048,797.98 1,496,072.25 MAR-09 MAR-10 MAR-11 1 - Debt Securities (a) Bonds (b) Government Guaranteed 2 - Liquidity/Cash 45.39% - 54.61% 56.61% 18.45% 24.94% 80.57% 16.65% 2.78% 75.69% 5.16% 19.15% 1,198,749.12 1,365,681.64 4,512,029.80 1,058,166.00 1,405,434.001,203,558.00 1,323,028.00 4,292,198.00 Total Number of Units 1,052,706.00 1,508,352.001,157,288.00 1,301,777.00 4,420,281.00 Published NAV per unit (RM) 1.0050 0.93201.0400 1.0160 0.9710 Highest NAV per unit (RM) 1.0060 1.03901.0490 1.0390 1.039 Lowest NAV per unit (RM) 0.9950 0.84100.9950 0.8410 0.8410 Total Annual return: - Capital growth - Income distributions 0.85% - 3.77% - 2.03% - 4.99% - 18.42% Yearly Performance Table
  6. 6. Takaful Investment-Linked Funds Report 5 Summary of Position Takaful Ikhlas Balance Fund (TIBF) Apr 2010 - Mar 2011 Total Capital Injections Total Net Income/(Losses) Value at Cost Market Value Exposure Equities Bonds Liquidity Total As At 31 Mar 2011 RM 4,588,003 897,827 5,455,867 5,589,729 63.80% 22.39% 13.81% RM RM RM RM 3,566,208 1,251,455 772,066 5,589,729 PORTFOLIO SUMMARY (TIBF) Since Inception until 31 March 2011 1 Year (Apr 2010 - March 2011) 3 Years (Apr 2008 - March 2011) AVERAGE ANNUAL RETURN PORTFOLIO BENCHMARK 40.35% 37.12% 14.42% 12.82% 17.17% 16.12% Fund Performance Note: Fund performance compared with Benchmark on 75% FBM Syariah + 25% GIA : : :
  7. 7. Takaful Investment-Linked Funds Report 6 COMPARATIVE FUND PERFORMANCE TABLE (TIBF) Total Investment (RM) Total NAV/Market Value (RM) CATEGORY OF INVESTMENTS MAR-07 MAR-08 11.19% 3.56% 3.44% 5.45% 38.50% 5.49% 2.33% 1.97% - - 28.07% 2,234,272.31 2,863,711.18 MAR-09 MAR-10 MAR-11 1 - Equity (a) Constructions (b) Plantations (c) Consumer Products (d) Industrial Products (e) Trading/Services (f) Properties (g) Infras. Project Co (h) TSR & Warrants 2 - Debt Securities/Bonds 3 - Liquidity/Cash 3.12% 15.79% 2.94% 1.80% 34.11% 2.72% - - 17.32% - 22.20% 3.68% 7.88% 2.97% 2.19% 26.52% 3.26% - 31.35% - 22.15% 13.70% 2.62% 5.44% 2.60% 31.31% 2.69% 3.94% - 34.81% - 2.89% 8.76% 7.77% 3.72% 4.03% 35.31% 1.37% 2.84% - 22.39% 13.81% 2 ,468,314.45 2,119,070.43 4,588,003.47 2,216,701.00 2,741,4512 ,437,061.00 2,060,996.00 5,199,044 Total Number of Units 2 ,066,632.00 2,519,1532,165,799.00 2,348,527.00 4,237,813 Published NAV per unit (RM) 1.0730 1.08801.1250 0.8780 1.2268 Highest NAV per unit (RM) 1.1100 1.11901.1990 0.9980 1.2130 Lowest NAV per unit (RM) 0.9920 0.84100.9920 0.8410 0.8410 Total Annual return: - Capital growth - Income distributions 12.88% - 6.12% - -19.90% - 27.84% - 40.35% Yearly Performance Table -
  8. 8. Takaful Investment-Linked Funds Report 7 Summary of Position Takaful Ikhlas Growth Fund (TIGF) Apr 2010 - Mar 2011 Total Capital Injections Total Net Income/(Losses) Value at Cost Market Value Exposure : : : : Equities : Liquidity : Total As At 31 Mar 2011 RM 5,100,548 888,115 5,941,027 6,136,395 84.49% 15.51% RM RM RM 951,829 5,184,566 6,136,395 PORTFOLIO SUMMARY (TIGF) Since Inception until 31 March 2011 1 Year (Apr 2010 - March 2011) 3 Years (Apr 2008 - March 2011) AVERAGE ANNUAL RETURN PORTFOLIO BENCHMARK 39.80% 43.17% 15.71% 16.22% 12.26% 17.23% Fund Performance Note: Fund performance compared with Benchmark on FBM Syariah
  9. 9. Takaful Investment-Linked Funds Report 8 COMPARATIVE FUND PERFORMANCE TABLE (TIGF) Total Investment (RM) Total NAV/Market Value (RM) CATEGORY OF INVESTMENTS MAR-07 MAR-08 14.22% 1.10% 7.92% 8.87% 35.21% 11.07% 3.25% 3.77% 14.59% 2,333,002 3,398,972 MAR-09 MAR-10 MAR-11 1 - Equity (a) Constructions (b) Plantations (c) Consumer Products (d) Industrial Products (e) Trading/Services (f) Properties (g) Infras. Project Co (h) TSR & Warrants 2 - Liquidity/Cash 5.59% 20.38% 3.53% 4.79% 40.05% 2.75% - - 22.81% 6.41% 12.94% 3.72% 4.65% 29.61% 3.32% - - 39.35% 13.57% 5.84% 5.98% 4.56% 41.03% 2.46% 3.99% - 22.57% 10.57% 12.20% 4.18% 5.20% 46.58% 2.80% 2.96% - 15.51% 2,653,974 2,258,085 5,100,548 2,328,518 3,148,9722,616,098 2,175,285 5,998,278 Total Number of Units 2,137,879 3,182,9682,292,290 2,746,035 5,362,940 Published NAV per unit (RM) 1.0890 0.98901.1410 0.7920 1.1185 Highest NAV per unit (RM) 1.1410 1.07001.2410 0.9810 1.1660 Lowest NAV per unit (RM) 0.9770 0.77100.9770 0.7710 0.7710 Total Annual return: - Capital growth - Income distributions 16.33% - 7.06% - -26.90% - 32.71% - 39.80% - Yearly Performance Table
  10. 10. PORTFOLIO STATEMENT Takaful Investment-Linked Funds Report 9 FUND NAME : AMHIGH ISLAMIC CASH STRATEGY AMHIGH ISLAMIC EQUITY STRATEGIES ECONOMIC AND EQUITY MARKET REVIEW The year 2010 was definitely the year of emerging markets, with Asia (excluding Japan) in the spotlight because of its strong economic growth. After the doldrums of the global economic crisis in 2008 and 2009, there were great expectations that the global economic recovery would take root beginning 2010, and it certainly did not disappoint. The journey was not smooth sailing though, as many economies were still affected with varying degree of risks which resulted in downgrades in their sovereign bond debt ratings. Still, 2010 closed with a bang with convincing growth recorded especially in Asia, and there is hope that this would continue for the next few years. Unfortunately though, certain economies in Europe especially, did not recover fully as yet. Portugal, Ireland, Italy, Greece and Spain lead the sovereign debt crisis in 2010. While the rating downgrade continues for these countries, fortunately none of these countries have defaulted yet on their loans. Greece’s rating fell to junk status (non-investment grade) and many Eastern European countries may very well go down on the same route if oil prices continue to stay high. A rescue package worth US$1 trillion was formulated to help resolve the Greek crisis, as it was detrimental to the strength of the Euro. As the economy in most parts of developing world recovered, other countries maintained their super low interest rates. The United States for example, maintained near zero interest rates in March 2010 for an “indefinite term”. This resulted in further interestratesdifferentialsbetweendevelopedand emerging economies and encouraged investors to shift from developed economies to emerging economies, which promised higher returns on top of a much brighter economic prospect. 2010 also saw the combination of high food prices, high oil prices and wages that do not change much which help drove people to the streets in protests. The protests even brought governments down as what had happened in Tunisia and Egypt. The protests in Libya especially and elsewhere in the Middle East, help drove up oil prices on concerns of supply disruption. The spike in oil prices has stoked concerns about inflation worldwide, which resulted in the lowering of expected GDP growth rates in most countries. During the period under review, global risks continued to persist. Tension between the two Koreas intensified when North Korea decided to bombard its southern neighbour. Euro-zone debt worries grew, after Ireland’s sovereign ratings were downgraded, while Spain and Portugal’s ratings were put under review. The insurgencies in the Middle East continued, while the tension in Libya intensified as NATO decided to take action. Back in Malaysia, the stronger economic recovery beginning in 2010 began to grab BNM’s attention, as BNM started their interest rate normalisation process, by increasing the OPR by 25 bps to 2.25% in March 2010, in an attempt to manage imbalances amid a recovering economy.
  11. 11. Takaful Investment-Linked Funds Report 10 ECONOMIC AND EQUITY MARKET REVIEW (CONTD.) The new economic model (NEM) was unveiled, the first of two parts of which the highlight was to implement new strategies in order for Malaysia to achieve high income status by 2020. The planned goods and services tax (GST) implementation also fizzled, whereby the government postponed indefinitely on grounds that the GST should not be implemented yet because the country’s economy was just starting to recover. The ringgit continued to strengthen throughout 2010 and early 2011 to a 13-year high, in tandem with the appreciation of other Asian currencies on several factors, namely increasing interest rates, speculation of the devaluation of the Chinese renmimbi, and continued capital inflow. In fact, the ringgit was the best performer among Asian currencies, with expectation that it may hit below the three ringgit to the US dollar threshold towards the end of the period under review. In May 2010, BNM raised the OPR further to 2.50%, as Malaysia’s GDP for 1Q10 accelerated at the fastest pace in 10 years at 10.1% yoy. The 10th Malaysian plan covering the road map for the country’s economy was unveiled by the Prime Minister the following month, which covers 5 years beginning 2011. Some notable targets (or KPIs) under the 10MP are a 12.8% average annual growth in private investments, GDP growth rate of 6% annually, and to reduce the fiscal deficit by half to 2.8% of GDP by 2015. Subsidy rationalisation programme also began in May 2010, where petrol and diesel prices were gradually increased in tandem with the rising crude oil prices. Sugar prices were also raised by 20 sen. These helped create a push-inflationary effect, causing inflation to rise yoy and prompted BNM to raise the OPR further. The Malaysian Economic Transformation Programme (ETP) was unveiled in September 2010, setting out key economic targets for the next 10 years. Of utmost importance according to economists, is proper execution which was key to success of the ETP. The 2011 Budget, although with a few goodies announced, was without any major surprises. In November 2010, BNM maintained the OPR at 2.75%, as a compromise between managing inflationary pressures and sustaining economic growth. In fact, the GDP growth for the third quarter 2010 has actually slowed down a little bit. Nevertheless, due to the rising crude oil prices, the Malaysian government intensified its subsidy rationalisation towards the end of the review period and increased the petrol and diesel prices even further. Despite the inflation rate in 2010 being relatively tame on the back of push inflationary factors such as rising commodity prices, the expectation was that the inflation rate will go higher in early 2011 due to the lagging effect. Inflation is also expected to be higher as commodity prices continued to rise, and the government continuing its subsidiary rationalisation programme. BOND AND SUKUK MARKET REVIEW The global economy gathered pace in much
  12. 12. Takaful Investment-Linked Funds Report 11 BOND AND SUKUK MARKET REVIEW (CONTD.) of 2010 due to many factors such as positive economic data, the upgrading of the economic outlook of the US economy by the US Federal Reserve Bank, as well as improving consumer sentiments. However, in the emerging markets especially in Asia, governments’ focus has shifted towards dealing with inflation rather than providing continuing support for growth, most notably during the first quarter of 2011. Inflation has also been exacerbated by the rise in global food and oil prices. Most central banks have started aggressive stance to hike interest rates, amid less tightening of monetary policy, led by China, India, South Korea and Taiwan. In Malaysia, the domestic sovereign bond and sukuk market was affected by many events, both external and internal. The turmoil in the Middle East, the rise in global commodity prices, and the rise inflation coupled with the tightening of monetary policies have all played a role in yields, supply and trading volume. Corporate bonds and sukuks market meanwhile had a better run in 2010 compared to MGS and GII. Trading activities concentrated in high-end AAA and AA segments, with trading volume in private debt securities (PDS) being moderately higher than in 2009. ECONOMIC AND EQUITY MARKET OUTLOOK On the global level, we expect the equity markets in 2011 to provide decent yet subdued returns. The main thrusts for the positive showing of equity markets include favourable global and emerging economic outlook, coupled with decent valuations and improving corporate sector profitability. What make the performance to be subdued are the rising oil, commodity and food prices which have a push-inflation factor and hence result in weaker consumption demand as consumers adjust to the higher prices. Comparing between developed markets and emerging markets, the developed markets are showing signs of positive momentum, as leading economic indicators showed higher consumer spending and increasing manufacturing production. Corporate earnings were revised upwards, supporting valuations and markets seen especially in the first quarter of 2011. In the near term, the negative factors affecting developed markets include the central bank of Germany, Europe’s largest economy, raising interest rates, and the fallout from the earthquake disaster in Japan, which creates a certain amount of uncertainty as to the recovery pace in Japan’s economy in the aftermath of the disaster. Emerging markets on the other hand, especially in Asia, will largely depend on the fallout and recovery of Japan post earthquake. Disruptions in components supply, and the scale-down production in Japan, will mean less manufactured goods and reduced imports from Japan. This in turn will affect the Asia market at least for first half of 2011 as Japan is one of the biggest importers in Asia. Overall, we expect a positive economic outlook for Malaysia, with BNM expecting a GDP growth rate of 6.0% in 2011. Focus would continue to be
  13. 13. Takaful Investment-Linked Funds Report 12 ECONOMIC AND EQUITY MARKET OUTLOOK (CONTD.) ontheETPandGTProlloutdetails,and construction projects to be announced concurrently. As at the end of the period under review, the Malaysian market is trading at a PER of 14x, which is at about 15% premium against regional markets. However, if the rollout of ETP and GTP is accelerated, we expect upward revisions of the Malaysian market PER. BOND AND SUKUK MARKET OUTLOOK At least for the first half of 2011, external factors such as the disaster in Japan, the turmoil in the Middle East and the sovereign debt situation in parts of Europe, continue to affect most investors’ sentiments towards non-ringgit bonds and sukuks. At the same time especially in the near term, the risk of rising inflation in Malaysia remains on investors’ radar screens. Nevertheless, we view the negative external newsflows as temporary and even then, investors will normally seek debt securities as safe haven. While BNM has so far kept the OPR unchanged at 2.75% (as at the end of the period under review), we opine that to tackle inflation, the central bank will further hike the OPR gradually under its normalization regime to 3.50% by early 2012. According to the latest BNM annual report, BNM expects inflation to rise to an average of 2.5% to 3.5% in 2011 from 1.7% in 2010. We expect the issuance of private debt securities (PDS) market to pick up beginning second quarter 2011, with the implementation of some of the Economic Transformation Programme such as the KL MRT. For these types of projects especially infrastructure related, it is highly likely that the bonds/sukuks will be government guaranteed and will fetch an AAA rating. We reckon any new primary issues will be well taken up in view of the relatively high liquidity still in the market. Investors would likely focus on corporate bonds rather than government bonds for better yield enhancements in view of the impending rise in interest rates. INVESTMENT OBJECTIVE AmHigh’s investment objective is to provide participants with a steady medium to long term capital growth at a reasonable level of risk through investments in a diversified portfolio of unit trust funds (both equities and non-equities) which are Syariah-compliant. During the year under review, there has been no change in the investment objective. PORTFOLIO PERFORMANCE REVIEW Cash Strategy Since inception on 16 July 2008 and up to 31 March 2011, the Cash Strategy has performed steadily and achieved a return of 6.41%. For the period under review (one-year period from 31 March 2010 to 31 March 2011), the Cash Strategy’s return was 3.17%, outperforming its benchmark, the Kuala Lumpur Islamic Reference Rate, which increased by 3.08% during the same period under review. The improvement in return was caused by our focus in sukuk unit trust funds
  14. 14. Takaful Investment-Linked Funds Report 13 PORTFOLIO PERFORMANCE REVIEW (CONTD.) allocating lesser weightings in Islamic money market funds. The upward revision on the OPR by BNM has caused the benchmark’s performance to be adjusted upwards. Overall, our Cash Strategy has shown a steady growth despite the volatility in the equity markets. Equity Strategy For the one-year period as at 31 March 2011, the Equity Strategy registered a return of 11.14%, against its benchmark, the Dow Jones Islamic Index, which registered a return of 14.67%. Since inception however, our Equity Strategy registered a return of 32.50% against the benchmark’s return of 7.05%, outperforming the benchmark by some 25%. Despite the volatility in the equity markets, we have been able to take advantage on the right market timing when we performed our monthly portfolio rebalancing activities. This is notable as the fund has been growing steadily upwards since inception. Portfolio Strategy Our core strategy is to perform active and dynamic investment management, via monthly portfolio rebalancing and to leverage on the right market timing. Through the use of our Quant technical model, suitable unit trust funds will be selected for the investment portfolio. Continuous stringent screening process of underlying unit trust funds will also be in place. For Cash Strategy, we will continue to focus in sukuk funds in view of better prospects and outlook due to the economic transformation plans and other economic boosting activities as announced by the Malaysian government. The future prospects look bright provided no negative factors affect the economic outlook and market forecast. We expect the steady performance to spillover and continue for the new financial year. Distribution AmHigh is a pure growth fund and adopts a policy of reinvesting investment profits to maximise returns. Therefore, it does not declare distributions, nor does it have a distribution policy in relation to investments. Rebates and Soft Commissions The Manager and the External Investment Adviser receive soft commissions from unit trust management companies and brokers in the form of goods and services such as research materials, data and quotation services, investment related publications and software incidental to investment activities. Such soft commissions are of demonstrable benefit to Participants and are retained by the Manager and/or the External Investment Adviser. The Manager and the External Investment Adviser however, do not retain any rebate from, or otherwise share in any commission with unit trust management companies or brokers, in consideration for direct dealings in the investment of the funds. Accordingly, any rebates or commissions will be directed and reinvested in AmHigh for the mutual benefit of Participants.
  15. 15. Takaful Investment-Linked Funds Report 14 Since inception (16 July 2008) Performance (as at 31 March 2011) 1-year return Year-to-date (from 1 January) 6.41% Cash Strategy 3.17% 0.50% 8.34% Benchmark (1-yr KLIRR) 3.08% 0.76% 32.50% Equity Strategy 11.14% 1.51% 7.05% Benchmark (DJIM) 14.67% 4.32% April-10 June-10 May-10 Cash Strategy Monthly Performance (%) Benchmark (1-yr KLIRR) Equity Strategy Benchmark (DJIM) July-10 September-10 August-10 October-10 December-10 November-10 January-11 March-11 February-11 0.29 0.37 0.31 0.25 0.25 0.26 -0.43 4.23 -5.17 1.02 -2.69 -10.20 0.39 0.27 0.36 0.26 0.25 0.26 2.43 3.16 -0.76 6.02 9.85 -2.93 0.30 0.09 0.35 0.26 0.26 0.25 3.23 2.75 0.01 3.49 6.82 -0.35 0.18 0.37 -0.01 0.26 0.26 0.24 0.84 2.30 -1.60 0.68 1.13 2.46 6-month return 1.21% 1.54% 7.68% 14.91% 3-month return 0.50% 0.76% 1.51% 4.32% 1-month return 0.34% 0.26% 2.30% 1.13% AmHigh Performance
  16. 16. Takaful Investment-Linked Funds Report 15 AmHigh Islamic Cash Strategy performance from 16 July 2008 to 31 March 2011 -0.50 2.00 4.50 7.00 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 % Cash Strategy 1-year Kuala Lumpur Islamic Reference Rates (KLIRR) AmHigh Islamic Equity Strategy performance from 16 July 2008 to 31 March 2011 -45 -25 -5 15 35 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 % Equity Strategy Dow Jones Islamic Market Index (DJIM) AmHigh Performance (Contd.)
  17. 17. Takaful Investment-Linked Funds Report 16 Category of Investment As at 31 March 2011 As at 31 March 2010 Exposure: Equity unit trust funds Non-equity unit trust funds Islamic deposit placement Liquidity Total As at 31 March 2009 (date of inception: 16 July 2008) 61.19% 15.30% 0.73% 22.78% 100.00% 63.15% 16.15% - 20.70% 100.00% 21.90% 2.30% 9.53% 66.27% 100.00% Comparative Fund Performance Table As at 31 March 2011 As at 31 March 2010 Total NAV Number of units in circulation NAV per unit (RM) Highest NAV per unit (RM) Lowest NAV per unit (RM) As at 31 March 2009 (date of inception: 16 July 2008) 11,727,117 11,020,104 1.0642 1.0750 0.9960 5,961,376 5,762,342 1.0350 1.0350 0.9960 83,279 82,882 1.0050 1.0040 0.9960 Yearly Performance Table (Cash Strategy) AmHigh Performance (Contd.)
  18. 18. Takaful Investment-Linked Funds Report 17 As at 31 March 2011 As at 31 March 2010 Total Annual return: - Capital growth - Income distributions Average Annual Return Benchmark return (1-year KLIRR) As at 31 March 2009 (date of inception: 16 July 2008) 3.17% 3.17% - 3.17% 3.08% 2.60% 2.60% - 2.60% 2.58% 0.52% 0.52% - 0.73% 2.06% Fund Performance (Cash Strategy) As at 31 March 2011 As at 31 March 2010 Total NAV Number of units in circulation NAV per unit (RM) Highest NAV per unit (RM) Lowest NAV per unit (RM) As at 31 March 2009 (date of inception: 16 July 2008) 62,183,779 47,437,462 1.3139 1.3562 0.9960 28,613,953 23,952,220 1.1950 1.1940 0.9960 418,429 417,013 1.0030 1.0040 0.9960 Yearly Performance Table (Equity Strategies) Note: Comprised of three combined equity strategies (i.e. Large Cap, Mid Cap, Small Cap Equity Strategy) AmHigh Performance (Contd.)
  19. 19. Takaful Investment-Linked Funds Report 18 As at 31 March 2011 As at 31 March 2010 As at 31 March 2009 (date of inception: 16 July 2008) Total Annual return: - Capital growth - Income distributions Average Annual Return Benchmark return (DJIM) 11.14% 11.14% - 11.14% 14.67% 18.66% 18.66% - 18.66% 47.76% 0.46% 0.46% - 0.65% -36.84% Fund Performance (Equity Strategies) Note: The weighted average performance return of the three combined equity strategies Summary of Position Cash Strategy & Equity Strategies as at 31 March 2011 Islamic Cash Strategy Islamic Large Capital Equity Strategy Islamic Medium Capital Equity Strategy Islamic Small Capital Equity Strategy Total all strategies Exposure Equity unit trust funds Non-equity unit trust funds Islamic deposit placement Liquidity Total As At 31 Mar 2011 RM 11,770,596 25,564,173 24,156,417 13,599,970 75,091,156 61% 15% 1% 23% RM RM RM RM RM 45,950,358 11,485,413 550,339 17,105,046 75,091,156 : : : : : : : : AmHigh Performance (Contd.)
  20. 20. Takaful Investment-Linked Funds Report 19 STATEMENT BY THE MANAGER In the opinion of the Manager, Takaful Ikhlas Sdn. Bhd. the accompanying financial statements set out on pages 22 to 87 have been drawn up in accordance with applicable Financial Reporting Standards in Malaysia and are in compliance with Shari’ah requirements and the Guidelines issued by Bank Negara Malaysia so as to give a true and fair view of the financial position of the TAKAFUL INVESTMENT LINKED FUNDS of TAKAFUL IKHLAS SDN. BHD. as at 31 March 2011 and of their results, changes in net asset value and their cash flows for the year then ended. On behalf of TAKAFUL IKHLAS SDN. BHD. Dato’ Syed Moheeb Bin Syed Kamarulzaman Kuala Lumpur, Malaysia 25 May 2011
  21. 21. Takaful Investment-Linked Funds Report 20 REPORT OF THE AUDITORS TO THE UNITHOLDERS OF TAKAFUL IKHLAS SDN. BHD. TAKAFUL INVESTMENT LINKED FUNDS (INCORPORATED IN MALAYSIA) Report on the financial statements We have audited the financial statements of the Takaful Investment Linked Funds of Takaful Ikhlas Sdn. Bhd. (“the Manager”) (comprising the Fixed Income Fund, Balanced Fund, Growth Fund, AmHigh Islamic Cash Strategy Fund and AmHigh Islamic Equity Strategies Fund) (“the Funds”), which comprise the statements of financial position as at 31 March 2011, and the statements of comprehensive income, statements of changes in equity and cash flow statements of the Funds for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 22 to 87. Directors’ responsibility for the financial statements The directors of the Manager are responsible for the preparation and fair presentation of these financial statements in accordance with Financial Reporting Standards and the Guidelines issued by Bank Negara Malaysia. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors’ responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
  22. 22. Takaful Investment-Linked Funds Report 21 REPORT OF THE AUDITORS TO THE UNITHOLDERS OF TAKAFUL IKHLAS SDN. BHD. TAKAFUL INVESTMENT LINKED FUNDS (INCORPORATED IN MALAYSIA) (CONTD.) An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Funds’ preparation and fair presentation of the financial statements 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 Funds’ internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and the Guidelines issued by Bank Negara Malaysia so as to give a true and fair view of the financial position of the Funds as at 31 March 2011 and of their financial performance and cash flows of the Funds for the year then ended. Other matters This report is made solely to the unitholders of the Funds, as a body, in accordance with the Guidelines issued by Bank Negara Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report. Ernst & Young Habibah binti Abdul AF: 0039 No. 1210/05/12(J) Chartered Accountants Chartered Accountant Kuala Lumpur, Malaysia 25 May 2011 Auditors’ responsibility (Contd.)
  23. 23. Takaful Investment-Linked Funds Report 22 STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2011 AmHigh Islamic Cash Strategy Fund 2011 RM 11,574,717 11,474,703 100,014 1,365 - 228,500 11,804,582 - 468 25,267 40,792 66,527 11,738,055 12,580,647 (842,592) 11,738,055 11,020,104 1.0651 Balanced Fund 2011 RM 5,581,263 4,817,663 763,600 9,100 - 390 5,590,753 69,215 312,388 - 10,106 391,709 5,199,044 4,437,094 761,949 5,199,043 4,237,813 1.2268 Fixed Income Fund 2011 RM 4,835,645 3,933,845 901,800 31,856 2,192 390 4,870,083 30,907 545,093 - - 576,000 4,294,083 4,137,465 156,618 4,294,083 4,420,281 0.9715 AmHigh Islamic Equity Strategies Fund 2011 RM 61,988,817 61,538,755 450,062 2,710 - 1,012,426 63,003,952 338,574 967 203,757 298,102 841,400 62,162,552 60,171,538 1,991,014 62,162,552 47,437,462 1.3104 Growth Fund 2011 RM 6,206,166 5,184,566 1,021,600 8,460 - 390 6,215,016 68,528 - 69,546 15,629 153,703 6,061,313 5,601,058 460,255 6,061,313 5,362,940 1.1302 ASSETS Investments Financial Assets at FVTPL Investment accounts with a licensed commercial bank Receivables Deferred Tax Assets Cash and Bank Balances TOTAL ASSETS LIABILITIES Provision for taxation Amount due to the Invesment Linked Takaful funds Payables Deferred tax liability TOTAL LIABILITIES Net Assets of Funds EQUITY Unitholders’ Capital Undistributed surplus / (deficits) TOTAL EQUITY UNITS IN CIRCULATION NET ASSET VALUE (“NAV”) PER UNIT (RM) Note 3 5 4 5 7 The accompanying notes form an integral part of the financial statements.
  24. 24. Takaful Investment-Linked Funds Report 23 STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2011 (CONTD.) AmHigh Islamic Cash Strategy Fund 2010 RM 5,580,160 5,580,160 - 1,081 - 401,452 5,982,693 - 468 11,827 9,023 21,318 5,961,375 6,037,640 (76,265) 5,961,375 5,762,342 1.0345 Balanced Fund 2010 RM 2,766,160 2,370,160 396,000 94,929 17,993 420 2,879,502 53,746 84,305 - - 138,051 2,741,451 2,445,014 296,437 2,741,451 2,519,153 1.0882 Fixed Income Fund 2010 RM 1,271,663 1,251,663 20,000 225,534 2,717 420 1,500,334 14,726 80,174 - - 94,900 1,405,434 1,349,250 56,184 1,405,434 1,508,352 0.9318 AmHigh Islamic Equity StrategiesFund 2010 RM 21,817,052 21,817,052 - 4,849,058 - 2,206,760 28,872,870 44,562 969 83,107 130,279 258,917 28,613,953 27,445,482 1,168,471 28,613,953 23,952,220 1.1946 Growth Fund 2010 RM 3,907,288 2,629,288 1,278,000 76 23,490 420 3,931,274 61,804 209,564 510,933 - 782,301 3,148,973 2,952,102 196,871 3,148,973 3,182,968 0.9893 ASSETS Investments Financial Assets at FVTPL Investment accounts with a licensed commercial bank Receivables Deferred Tax Assets Cash and Bank Balances TOTAL ASSETS LIABILITIES Provision for taxation Amount due to the Invesment Linked Takaful funds Payables Deferred tax liabilities TOTAL LIABILITIES Net Assets of Funds EQUITY Unitholders’ Capital Undistributed surplus/(deficits) TOTAL EQUITY UNITS IN CIRCULATION NET ASSET VALUE (“NAV”) PER UNIT (RM) Note 3 5 4 5 7 The accompanying notes form an integral part of the financial statements.
  25. 25. Takaful Investment-Linked Funds Report 24 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2011 AmHigh Islamic Cash Strategy Fund 2011 RM - 1,440 15,280 397,136 413,856 (1,044,885) (103,527) (2) (1,148,415) (734,559) (31,769) (766,328) Balanced Fund 2011 RM 72,441 85,092 134,713 351,256 643,502 (99,133) (29,659) (99) (128,891) 514,611 (49,099) 465,512 Fixed Income Fund 2011 RM - 177,894 40,153 6,563 224,610 (91,683) (15,709) (77) (107,470) 117,140 (16,706) 100,434 AmHigh Islamic Equity Strategies Fund 2011 RM - 46,039 4,373,857 2,098,281 6,518,177 (4,489,075) (744,700) (23) (5,233,798) 1,284,380 (461,837) 822,543 Growth Fund 2011 RM 102,196 30,564 96,602 488,987 718,349 (363,412) (36,905) (144) (400,461) 317,888 (54,504) 263,384 INCOME Gross dividend income Profit Income Realised gain on disposal of investments Fair value gain on FVTPL financial assets OUTGO Certificate benefits paid and payable Management expenses Investment charges Excess/(deficit) of income over outgo before tax Taxation Excess/(deficit) of income over outgo after tax Note 6 The accompanying notes form an integral part of the financial statements.
  26. 26. Takaful Investment-Linked Funds Report 25 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2011 (CONTD.) AmHigh Islamic Cash Strategy Fund 2010 RM - 126 - 112,819 112,945 (154,871) (24,754) (30) (179,655) (66,710) (9,023) (75,733) Balanced Fund 2010 RM 36,739 52,204 103,719 420,120 612,783 (34,023) (16,427) (197) (50,647) 562,135 (52,081) 510,054 Fixed Income Fund 2010 RM - 66,833 4,156 4,187 75,176 (47,693) (5,902) - (53,595) 21,581 (6,010) 15,571 AmHigh Islamic Equity Strategies Fund 2010 RM - 417 557,567 1,628,936 2,186,919 (661,771) (181,389) (448) (843,608) 1,343,311 (174,840) 1,168,471 Growth Fund 2010 RM 52,685 17,731 64,275 643,038 777,728 (68,957) (21,970) (237) (91,164) 686,564 (66,583) 619,981 INCOME Gross dividend income Profit Income Realised gain on disposal of investments Fair value gain on FVTPL financial assets OUTGO Certificate benefits paid and payable Management expenses Investment charges Excess/(deficit) of income over outgo before tax Taxation Excess/(deficit) of income over outgo after tax Note 6 The accompanying notes form an integral part of the financial statements.
  27. 27. Takaful Investment-Linked Funds Report 26 STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 MARCH 2011 At 1 April 2009 Total comprehensive income for the year Amount received for creations during the year Balance as at 31 March 2010 Total comprehensive income for the year Amount received for creations during the year Balance at 31 March 2011 Unitholders’ Capital Note7(i)(a) RM 1,287,263 - 61,987 1,349,250 - 2,788,215 4,137,465 Undistributed Surplus Note 7(i)(b) RM 40,613 15,571 - 56,184 100,434 - 156,618 (i) Fixed Income Fund Total Equity RM 1,327,876 15,571 61,987 1,405,434 100,433 2,788,215 4,294,083 At 1 April 2009 Total comprehensive income for the year Amount received for creations during the year Balance as at 31 March 2010 Total comprehensive income for the year Amount received for creations during the year Balance at 31 March 2011 Unitholders’ Capital Note 7(ii)(a) RM 2,332,177 - 112,837 2,445,014 - 1,992,080 4 ,437,094 Undistributed Surplus Note 7(ii)(b) RM (213,617) 510,054 - 296,437 465,512 - 761,949 (i) Balanced Fund Total Equity RM 2,118,560 510,054 112,837 2,741,451 465,512 1,992,080 5,199,043 The accompanying notes form an integral part of the financial statements.
  28. 28. Takaful Investment-Linked Funds Report 27 STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 MARCH 2011 (CONTD.) At 1 April 2009 Total comprehensive income for the year Amount received for creations during the year Balance as at 31 March 2010 Total comprehensive income for the year Amount received for creations during the year Balance at 31 March 2011 Unitholders’ Capital Note 7(iii)(a) RM 2,683,153 - 268,949 2,952,102 - 2,648,956 5,601,058 Undistributed Surplus Note 7(iii)(b) RM (423,110) 619,981 - 196,871 263,384 - 460,255 (iii) Growth Fund Total Equity RM 2,260,043 619,981 268,949 3,148,973 263,384 2,648,956 6,061,313 At 1 April 2009 Total comprehensive income for the year Amount received for creations during the year Balance as at 31 March 2010 Total comprehensive income for the year Amount received for creations during the year Balance at 31 March 2011 Unitholders’ Capital Note 7(iv)(a) RM 83,811 - 5,953,829 6,037,640 - 6,543,007 12,580,647 Undistributed Surplus Note 7(iv)(b) RM (532) (75,733) - (76,265) (766,328) - (842,592) (iv) AmHigh Islamic Cash Strategy Total Equity RM 83,279 (75,733) 5,953,829 5,961,375 (766,328) 6,543,007 11,738,055 The accompanying notes form an integral part of the financial statements.
  29. 29. Takaful Investment-Linked Funds Report 28 STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 MARCH 2011 (CONTD.) At 1 April 2009 Total comprehensive income for the year Amount received for creations during the year Balance as at 31 March 2010 Total comprehensive income for the year Amount received for creations during the year Balance at 31 March 2011 Unitholders’ Capital Note 7(v)(a) RM 418,427 - 27,027,055 27,445,482 - 32,726,056 60,171,538 Undistributed Surplus Note 7(v)(b) RM - 1,168,471 - 1,168,471 822,543 - 1,991,014 (v) AmHigh Islamic Equity Strategies Total Equity RM 418,427 1,168,471 27,027,055 28,613,953 822,543 32,726,056 62,162,552 The accompanying notes form an integral part of the financial statements.
  30. 30. Takaful Investment-Linked Funds Report 29 CASH FLOW STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 CASH FLOWS FROM OPERATING ACTIVITIES Excess of income over outgo before taxation Adjustment for: Fair value gain on FVTPL financial assets Realised gain on disposal of investments Profit from investment accounts Deficit from operations before changes in operating assets and liabilities Purchase of investments (Increase)/Decrease in investment account placements with a commercial bank Decrease/(Increase) in other receivables Net proceeds from disposal of investments Increase in amount due to the Investment Linked Takaful Funds Cash used in operating activities Profit received on investment accounts Net cash used in operating activities CASH FLOW FROM FINANCING ACTIVITY Issue of units for cash representing net cash generated from financing activity NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR 2011 RM 117,140 (6,563) (40,153) (177,894) (107,470) (2,675,619) (881,800) 193,679 40,152 464,919 (2,966,139) 177,894 (2,788,245) 2,788,215 (30) 420 390 2010 RM 21,581 (4,187) (4,156) (66,833) (53,595) (222,868) 303,000 (206,762) 4,155 47,199 (128,870) 66,833 (62,037) 61,987 (50) 470 420 (i) Fixed Income Fund
  31. 31. Takaful Investment-Linked Funds Report 30 CASH FLOW STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 (CONTD.) CASH FLOWS FROM OPERATING ACTIVITIES Excess of income over outgo before taxation Adjustment for: Fair value gain on FVTPL financial assets Realised gain on disposal of investments Profit from investment accounts Dividend income Deficit from operations before changes in operating assets and liabilities Purchase of investments (Increase)/Decrease in investment account placements with a commercial bank Net proceeds from disposal of investments Decrease/(Increase) in other receivables Increase in other payable Increase in amount due to the Investment Linked Takaful Funds Cash used in operating activities Profit received on investment accounts Dividend received Net cash used in operating activities CASH FLOW FROM FINANCING ACTIVITY Issue of units for cash representing net cash generated from financing activity NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR 2011 RM 514,611 (351,253) (134,713) (85,092) (72,441) (128,888) (2,096,249) (367,600) 134,713 85,830 (5,531) 228,083 (2,149,643) 85,092 72,441 (1,992,110) 1,992,080 (30) 420 390 2010 RM 562,135 (420,120) (103,719) (52,204) (36,739) (50,647) (301,880) 60,800 100,641 (82,446) - 71,702 (201,830) 52,204 36,739 (112,887) 112,837 (50) 470 420 (ii) Balanced Fund
  32. 32. Takaful Investment-Linked Funds Report 31 CASH FLOW STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 (CONTD.) CASH FLOWS FROM OPERATING ACTIVITIES Excess of income over outgo before taxation Adjustment for: Fair value gain on FVTPL financial assets Realised gain on disposal of investments Profit from investment accounts Dividend income Deficit from operations before changes in operating assets and liabilities Purchase of investments Decrease/(increase) in investment account placements with a commercial bank Net proceeds from disposal of investments (Increase)/decrease in other receivables (Decrease)/increase in amount due to the Investment Linked Takaful Funds (Decrease)/increase in other payables Cash used in operating activities Profit received on investment accounts Dividend received Net cash used in operating activities CASH FLOW FROM FINANCING ACTIVITY Issue of units for cash representing net cash generated from financing activity NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR 2011 RM 317,888 (488,987) (96,602) (30,564) (102,196) (400,461) (2,066,291) 256,400 96,602 (8,384) (209,564) (450,048) (2,781,946) 30,564 102,196 (2,648,986) 2,648,956 (30) 420 390 2010 RM 686,564 (643,038) (64,275) (17,731) (52,685) (91,164) (620,286) (390,000) 59,886 430 190,787 510,933 (339,414) 17,731 52,685 (268,999) 268,949 (50) 470 420 (iii) Growth Fund
  33. 33. Takaful Investment-Linked Funds Report 32 CASH FLOW STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 (CONTD.) CASH FLOWS FROM OPERATING ACTIVITIES Deficit of income over outgo before taxation Adjustment for: Fair value gain on FVTPL financial assets Realised gain on disposal of investments Profit from investment accounts Deficit from operations before changes in operating assets and liabilities Purchase of investments Net proceeds from disposal of investments (Increase)/Decrease in investment account placements with a commercial bank Increase in other receivable Increase in amount due to Investment Linked Takaful funds Increase in other payables Cash used in operating activities Profit received on investment accounts Net cash used in operating activities CASH FLOW FROM FINANCING ACTIVITY Issue of units for cash representing net cash generated from financing activity NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR 2011 RM (734,559) (397,136) (15,280) (1,440) (1,148,415) (5,497,435) 15,308 (100,014) (284) - 13,440 (6,717,399) 1,440 (6,715,959) 6,543,007 (172,952) 401,452 228,500 2010 RM (66,710) (112,819) - (126) (179,655) (5,443,371) - 11,600 (866) - 11,827 (5,600,465) 126 (5,600,339) 5,953,829 353,490 47,962 401,452 (iv) AmHigh Islamic Cash Strategy Fund
  34. 34. Takaful Investment-Linked Funds Report 33 CASH FLOW STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 (CONTD.) CASH FLOWS FROM OPERATING ACTIVITIES Excess of income over outgo before taxation Adjustment for: Fair value gain on FVTPL financial assets Realised gain on disposal of investment Profit from investment accounts Deficit from operations before changes in operating assets and liabilities Purchase of investments Net proceeds from disposal of investments (Increase)/decrease in investment account placements with a commercial bank Decrease/(increase) in other receivables Decrease in amount due to Investment Linked Takaful funds Increase in other payables Cash used in operating activities Profit received on investment accounts Net cash used in operating activities CASH FLOW FROM FINANCING ACTIVITY Issue of units for cash representing net cash generated from financing activity NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR/PERIOD 2011 RM 1,284,380 (2,098,281) (4,373,857) (46,039) (5,233,797) (37,623,909) 4,374,345 (450,062) 4,846,348 (2) 120,650 (33,966,428) 46,039 (33,920,389) 32,726,056 (1,194,333) 2,206,760 1,012,426 2010 RM 1,343,311 (1,628,936) - (417) (286,041) (20,065,563) - 38,400 (4,848,348) - 83,107 (25,078,445) 417 (25,078,028) 27,027,055 1,949,027 257,733 2,206,760 (v) AmHigh Islamic Equity Strategies Fund
  35. 35. Takaful Investment-Linked Funds Report 34 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 1. THE MANAGER AND ITS PRINCIPAL ACTIVITY The Manager of the Takaful Investment Linked Funds, Takaful Ikhlas Sdn. Bhd. is engaged principally in the managing of general, family and investment-linked takaful businesses. The Takaful Investment Linked Funds of Takaful Ikhlas Sdn. Bhd. comprise the Fixed Income Fund, Balanced Fund, Growth Fund, AmHigh Islamic Cash Strategy and AmHigh Islamic Equity Strategies. The Manager is a private limited liability company, incorporated and domiciled in Malaysia. The registered office of the Company is located at 9th Floor, IKHLAS Point, Tower 11A, Avenue 5, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia. The financial statements were authorised for issue by the Manager on 25 May 2011. 2. SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of Preparation The financial statements of the Takaful Investment Linked Funds have been prepared under the historical cost convention, unless otherwise indicated in the accounting policies below and comply with Financial Reporting Standards (“FRS”) in Malaysia, the Takaful Act, 1984, and the Guidelines and Circulars issued by BNM and where applicable are modified to comply with the principles of Shariah. At the beginning of the current financial year, the Takaful Investment Linked Funds had adopted new and revised FRSs which are mandatory for the financial periods beginning on or after 1 April 2010 as described fully in Note 2.3. The financial statements are presented in Ringgit Malaysia (RM) and all values are rounded to the nearest thousand (RM’000) except when otherwise indicated.
  36. 36. Takaful Investment-Linked Funds Report 35 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.2 Summary of Significant Accounting Policies (a) Revenue Recognition Revenue is recognised when it is probable that the economic benefits associated with the transactions will flow to the enterprise and the amount of the revenue can be measured reliably. Contributions of the Takaful Investment Linked Funds are in respect of the net creation of units which represent contributions paid by certificate holders as payment for a new contract or subsequent payments to increase the amount of that contract. Net creation of units is recognised on a receipt basis. Profit income is recognised on a time proportion basis that reflects the effective yield on the assets. Proceeds arising from the sale of investments are set off against the weighted average cost of investments. The resulting gains or losses are taken to the Statements of Comprehensive Income. Dividend income is recognised on a declared basis when the policyholders’ right to receive payment is established. (b) Income Tax Income tax on the surplus and deficit for the year comprises current and deferred tax. Current tax is the expected amount of income taxes payable in respect of the taxable profit and surplus for the year and is measured using the tax rates that have been enacted at the Statements of Financial Position. Deferred tax is provided for, using the liability method, on temporary differences at the date of Statements of Financial Position between the tax bases of assets and liabilities and their carrying amounts in the financial statements. In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences, unutilised tax losses and unutilised tax credits to the extent that it is probable that taxable profits will be available against the deductible temporary differences, unutilised tax losses and unutilised tax credits can be utilised. Deferred tax is not recognised if the temporary difference arises from the initial recognition of an asset or liability in a transaction which at the time of the transaction, affects neither accounting profit nor taxable profit. Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted at the date of Statements of Financial Position. Deferred tax is recognised in the statement of comprehensive income, except when it arises from a transaction which is recognised directly in equity, in which case the deferred tax is also charged or credited directly in equity. (i) (ii) (iii) (iv)
  37. 37. Takaful Investment-Linked Funds Report 36 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.2 Summary of Significant Accounting Policies (Contd.) (c) Investments and other financial assets The Takaful Investment Linked Funds classify its investments into financial assets at fair value through profit or loss (“FVTPL”) and loans and other receivables (“LAR”). The classification depends on the purpose for which the investments were acquired or originated. Management determines the classification of its investments at initial recognition and re-evaluates this at every financial year end. All regular way purchases and sales of financial assets are recognised on the trade date which is the date that the Company commits to purchase or sell the asset. Regular way puchases or sales of financial assets require delivery of assets within the period generally established by regulation or convention in the market place. FVTPL Financial assets at FVTPL include financial assets held for trading and those designated at fair value through profit or loss at inception. Investments typically bought with the intention to sell in the near future are classified as held-for-trading. For investments designated as at fair value through profit or loss, the following must be met; the designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the assets or liabilities or recognising gains or losses on a different basis, or the assets and liabilities are part of a group of financial assets, financial liabilities or both which are managed and their performance evaluated on a fair value basis, in accordance with a documented risk management or investment strategy. These investments are initially recorded at fair value. Subsequent to initial recognition these investments are measured at the fair value. Fair value adjustments and realised gains and losses are recognised in the Statements of Comprehensive Income. (i) -
  38. 38. Takaful Investment-Linked Funds Report 37 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.2 Summary of Significant Accounting Policies (Contd.) (c) Investments and other financial assets (Contd.) LAR LAR are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These investments are initially recognised at cost, being the fair value of the consideration paid for the acquisition of the investment. All transaction costs directly attributable to the acquisition are also included in the cost of the investment. After initial measurement, loans and receivables are measured at amortised cost, using the effective yield method, less provision for impairment. Gains and losses are recognised in profit or loss when the investments are derecognised or impaired, as well as through the amortisation process. The Funds’ LAR include investment accounts with a licensed commercial bank which is initially recognised at cost being the fair value of the consideration paid for the acqulsition of the investment. After initial measurement, are measured at amortised cost using the effective yield method less improvement. (d) Fair value of Financial Instruments The fair value of financial assets that are actively traded in organised financial markets is determined by reference to quoted market bid prices for assets and offer prices for liabilities, at the close of business on the financial year end. For investments in unit and real estate investment trusts, if any, fair value is determined by reference to published bid values. For financial assets where an active market may not exist, the fair value is determined by using valuation techniques. Such techniques include using recent arm’s length transactions, reference to the current market value of another asset which is substantially the same, discounted cash flow analysis and/or option pricing models making maximum use of market inputs and relying as little as possible on entity-specific inputs. For discounted cash flow techniques, estimated future cash flows are based on management’s best estimates and the discount rate used is a market related rate for a similar asset. Certain financial assets are valued using pricing models that consider, among other factors, contractual and market prices, co-relation, time value of money, credit risk, yield curve volatility factors and/or prepayment rates of the underlying positions. The use of different pricing models and assumptions could produce materially different estimates of fair values. The fair value of floating rate and over-night deposits with financial institutions is their carrying value. The carrying value is the cost of the deposit/placement and accrued profit. The fair value of fixed yield-bearing deposits is estimated using discounted cash flow techniques. Expected cash flows are discounted at current market rates for similar instruments at the end of the financial year. If the fair value of a financial asset cannot be measured reliably, the asset is measured at cost, being the fair value of the consideration paid for the acquisition of the asset. All transaction costs directly attributable to the acquisition are also included in the cost of the financial asset. (ii)
  39. 39. Takaful Investment-Linked Funds Report 38 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.2 Summary of Significant Accounting Policies (Contd.) (e) Impairment of Financial Assets The Takaful Investment Linked Funds assess at each reporting date whether there is any objective evidence that a financial asset or a group of financial assets is impaired. The Takaful Investment Linked Funds first assess whether objective evidence of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant. If it is determined that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, the asset is included in a group of financial assets with similar credit risk characteristics and that group of financial assets is collectively assessed for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment. The impairment assessment is performed at each reporting date. If there is objective evidence that an impairment loss on assets carried at amortised cost has been incurred, the amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not been incurred) discounted at the financial asset’s original effective yield. The carrying amount of the asset is reduced and the loss is recorded in statement of comprehensive income. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed. Any subsequent reversal of an impairment loss is recognised in statement of comprehensive income to the extent that the carrying value of the asset does not exceed its amortised cost at the reversal date. (f) Derecognition of Financial Assets Financial assets are derecognised when the rights to receive cash flows from them have expired or when they have been transferred and the Takaful Investment Linked Funds have also transferred substantially all risks and rewards of ownership. (g) Financial liabilities Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability. Financial liabilities, within the scope of FRS 139, are recognised in the statement of financial position when, and only when, the Takaful Investment Linked Funds become a party to the contractual provisions of the financial instrument. Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities.
  40. 40. Takaful Investment-Linked Funds Report 39 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in statement of comprehensive income. (h) Creation/cancellation of units Amounts received for units created represent contributions paid by policyholders/unitholders as payment for new contracts or subsequent payments to increase the amount of the contracts. Creation/cancellation of units are recognised in the financial statements at the next valuation date, after the request to purchase/sell units are received from the unitholders. (i) Unitholders’ accounts Unitholders’ accounts of the Funds represent equity instruments in the statement of financial position in accordance with the revised FRS 132: Financial Instruments: Disclosure and Presentation. (j) Cash and cash equivalents Cash and cash equivalents include cash in hand and at banks, excluding fixed and call deposits with licensed financial institutions, which have an insignificant risk of changes in value. The cash flow statement has been prepared using the indirect method. (i) (ii) 2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.2 Summary of Significant Accounting Policies (Contd.) (g) Financial liabilities (Contd.) Financial liabilities at FVTPL Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as at FVTPL. Financial liabilities held for trading include derivatives entered into by the Takaful Investment Linked Funds that do not meet the hedge accounting criteria. Derivative liabilities are initially measured at fair value and subsequently stated at fair value, with any resultant gains or losses recognised in statement of comprehensive income. Net gains or losses on derivatives include exchange differences. The Takaful Investment Linked Funds have not designated any financial liabilities as at FVTPL. Other financial liabilities The Takaful Investment Linked Funds’ other financial liabilities include trade payables and other payables. Trade and other payables are recognised initially at fair value plus directly attributable transaction costs and subsequently measured at amortised cost using the effective profit method. For other financial liabilities, gains and losses are recognised in statement of comprehensive income when the liabilities are derecognised, and through the amortisation process. A financial liability is derecognised when the obligation under the liability is extinguished. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the
  41. 41. Takaful Investment-Linked Funds Report 40 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.3 Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs and Issues Committee Interpretations (“IC Interpretations”) The significant accounting policies adopted are consistent with those applied in the annual audited financial statements for the financial year ended 31 March 2010, except for the adoption of the following new/revised FRSs, amendments to FRSs and Interpretations of the Issues Committee (“IC”) issued by the Malaysian Accounting Standards Board (“MASB”) that are mandatory for the financial period beginning 1 January 2010. Standard/Interpretation FRS 4: Insurance Contracts FRS 7: Financial Instruments: Disclosures FRS 8: Operating Segments FRS 101: Presentation of Financial Statements (Revised 2009) FRS 123: Borrowing Costs Amendments to FRS 1: First-time Adoption of Financial Reporting Standards and FRS 127: Consolidated and Separate Financial Statements: Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate Amendments to FRS 2: Share-based Payment - Vesting Conditions and Cancellations Amendments to FRS 132: Financial Instruments: Presentation Amendments to FRS 139: Financial Instruments: Recognition and Measurement FRS 7 : Financial Instruments: Disclosures Amendment to FRSs contained in the documents entitled Improvements to RFSs (2009). IC Interpretation 9: Reassessment of Embedded Derivatives IC Interpretation 10: Interim Financial Reporting and Impairment IC Interpretation 11: FRS 2 - Group and Treasury Share Transactions IC Interpretation 13: Customer Loyalty Programmes IC Interpretation 14: FRS 119 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction TR i - 3: Presentation of Financial Statements of Islamic Financial Institutions Unless otherwise described below, the directors expect that the adoption of the pronouncements above will have no material impact on the financial statements of the Takaful Investment Linked Funds in the period of their initial application: FRS 7 : Financial Instruments: Disclosures Prior to 1 January 2010, information about financial instruments was disclosed in accordance with the requirements of FRS 132 Financial Instruments: Disclosure and Presentation. FRS 7 introduces new disclosures to improve the information about financial instruments. It requires the disclosure of qualitative and quantitative information about exposure to risks arising from financial instruments, including specified minimum disclosures about credit risk, liquidity risk and market risk, including sensitivity analysis to market risk.
  42. 42. Takaful Investment-Linked Funds Report 41 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.3 Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs and Issues Committee Interpretations (“IC Interpretations”) (Contd.) The Takaful Investment Linked Funds have applied the FRS 7 new disclosures throughout the Takaful Investment Linked Funds’ financial statements for the year ended 31 March 2011. FRS 101 Presentation of Financial Statements (Revised) The revised FRS 101 introduces changes in the presentation and disclosures of financial statements. The revised Standard separates owner and non-owner changes in equity. The statement of changes in equity includes only details of transactions with owners, with all non-owner changes presented as a single line. The Standard also introduces the statement of comprehensive income, with all items of income and expense recognised in profit or loss, together with all other items of recognised income and expense recognised directly in equity, either in one single statement, or in two linked statements. The Takaful Investment Linked Funds have elected to present this statement in one single statement. The revised FRS 101 also requires the takaful Investment Linked Funds to make new disclosures to enable users of the financial statements to evaluate the Manager’s objectives, policies and process for managing capital risk. The revised FRS 101 was adopted retrospectively by the Funds. Amendments to FRS 132 Financial Instruments: Presentation and FRS 101 Presentation of Financial Statements – Puttable Financial Instruments and Obligations Arising on Liquidation Amendments to FRS 132 and FRS 101 became effective for annual periods beginning on or after 1 January 2010. The amendment to FRS 132 requires entities to classify puttable financial instruments as equity if the instruments have certain particular features and meet specific conditions. The amendments to FRS 101 require disclosure of certain information relating to puttable instruments classified as equity. The Unitholders’ capital has the features and meets the conditions for classification as equity instruments. Consequently, upon adoption of the Amendments to FRS 132, Unitholders’ capital is classified as equity of the respective funds, consistent with the disclosures made in previous year.
  43. 43. Takaful Investment-Linked Funds Report 42 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.4 Standards issued but not yet effective As at the date of authorisation of these reports, the following FRSs, Amendments to FRSs and Interpretations of the Issues Committee (“IC Interpretations”) have been issued by the Malaysian Accounting Standards Board (“MASB”) but are not yet effective and have not been adopted by the Takaful Investment Linked Funds. Effective for financial periods beginning on or after 1 July 2010 FRS 1: First-time Adoption of Financial Reporting Standards (revised) FRS 3: Business Combinations (revised) FRS 127: Consolidated and Separate Financial Statements (amended) Amendments to FRS 2: Share-based Payment Amendments to FRS 5: Non-current Assets Held for Sale and Discontinued Operations Amendments to FRS 138: Intangible Assets Amendments to IC Interpretation 9: Reassessment of Embedded Derivatives IC Interpretation 12: Service Concession Arrangements IC Interpretation 16: Hedges of a Net Investment in a Foreign Operation IC Interpretation 17: Distribution of Non-cash Assets to Owners Effective for financial periods beginning on or after 1 January 2011 Amendments to FRS 1: Limited Exemption from Comparative FRS 7 Disclosures for first-time Adopters Amendments to FRS 1: Additional Amendments for First-time adopters Amendments to FRS 2: Group Cash-settled Share-based Payments Transactions Amendments to FRS 7: Improving Disclosures about Financial Instruments IC Interpretation 4: Determining whether an Arrangement contains a lease IC Interpretation 18: Transfer of Assets from Customers TR 3: Guidance on Transition to IFRSs Tri-4: Shariah Compliant Sale Contracts Effective for financial periods beginning on or after 1 July 2011 Amendments to IC Interpretation 14, Prepayments of a Minimum Funding Requirements IC Interpretation 19, Extinguishing Financial Liabilities with equity instruments Effective for financial periods beginning on or after 1 January 2012 FRS 124: Related Party Disclosures (revised) IC Interpretation 15: Agreements for the Construction of Real Estate. The directors expect that the adoption of the standards and interpretations above will have no material on the financial statements in the period of initial application. 2.5 Significant accounting estimates and judgements (a) Critical judgements in applying the Funds’ accounting policies In the process of applying the Takaful Investment Linked Funds’ accounting policies, which are described above, the Manager is of the opinion that there are no instances of judgement which are expected to have a significant financial impact on the amounts and balances recognised in the financial statements.
  44. 44. Takaful Investment-Linked Funds Report 43 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.5 Significant accounting estimates and judgements (contd.) (b) Key Sources of Estimation Uncertainty The key assumption concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year is discussed below. Deferred tax Deferred tax implications arising from the changes in corporate income tax rates are measured with reference to the estimated realisation and settlement of temporary differences in the future periods in which the tax rates are expected to apply, based on the tax rates enacted or substantively enacted at the date of the reporting date. While the Manager’s estimates on the realisation and settlement of temporary differences are based on the available information at the date of the Statements of Financial Position, changes in business strategy, future operating performance and other factors could impact on the actual timing and amount of temporary differences realised and settled. Any difference between the actual amount of the estimated amount would be recognised in the Statements of Comprehensive Income in the period in which actual realisation and settlement occurs. While the Manager’s estimates on the realisation and settlement of temporary differences are based on the available information at the date of the Statements of Financial Position, changes in business strategy, future operating performance and other factors could impact on the actual timing and amount of temporary differences realised and settled. Any difference between the actual amount of the estimated amount would be recognised in the statements of comprehensive income in the period in which actual realisation and settlement occurs. Deferred tax assets are recognised for all provisions for unrealised gains/ losses on investments, net amortisation of premium on investments and other temporary differences to the extent that it is probable that taxable profit will be available against which the benefits can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies. Fair value of financial instruments When the fair value of financial assets recorded in the statement of financial position cannot be derived from active markets, they are determined using a variety of valuation techniques that include the use of mathematical models. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of liquidity and model inputs such as credit risk (both own and counterparty’s), correlation and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. The models are calibrated regularly and tested for validity using prices from any observable current market transactions in the same instrument (without modification or repackaging) or based on any available observable market data.
  45. 45. 2011 RM 498,900 3,434,945 3,933,845 901,800 4,835,645 500,525 (1,625) 498,900 3,460,718 (25,772) 3,434,945 901,800 4,835,645 Takaful Investment-Linked Funds Report 44 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 Investments Financial Assets at FVTPL: Unquoted, Government Islamic Investment Unquoted, Private Debt Securities Investment accounts with a licensed commercial bank (a) Fair Value Through Profit & Loss (“FVTPL”) Unquoted, Government Islamic Investment Cost Fair value loss recognised in statement of comprehensive income Fair value Unquoted, Private Debt Securities Cost Fair value loss recognised in statement of comprehensive income Fair value (b) Investment accounts with a licensed commercial bank Total investments (i) Fixed Income Fund 2010 RM - 1,251,663 1,251,663 20,000 1,271,663 - - - 1,285,624 (33,961) 1,251,663 20,000 1,271,663 3. INVESTMENTS
  46. 46. Takaful Investment-Linked Funds Report 45 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 Fair Value RM 498,900 498,900 No. of units 500,000 500,000 Fair Value as % of NAV 11.62% 11.62% Cost RM 500,525 500,525 The composition, cost and fair value of the investments as at 31 March 2011 are as detailed below: Government Islamic Investment: Govt. Islamic Investment 3.87% Fair Value RM 251,100 199,900 301,170 176,070 199,480 701,540 283,275 102,880 410,920 400,320 306,750 101,540 3,434,945 No. of units 250,000 200,000 300,000 170,133 200,000 700,000 250,000 100,000 400,000 400,000 300,000 100,000 3,370,133 Fair Value as % of NAV 5.85% 4.66% 7.01% 4.10% 4.65% 16.34% 6.60% 2.40% 9.57% 9.32% 7.14% 2.36% 79.99% Cost RM 259,150 200,000 300,000 171,426 200,000 700,000 300,150 103,750 415,880 405,160 303,342 101,860 3,460,718 Private Debt Securities: SilTerra Capital Bhd 3.90% Aman Sukuk Berhad 4.05% AmIslamic Bank Bhd 4.30% Binariang GSM Sdn Bhd 5.55% Gulf Investment Corp. 5.25% M’sia Airport Capital Bhd 4.55% Mukah Power Senior Sukuk 7.80% Putrajaya Hldg Sdn Bhd 5% Sime Darby Bhd 4.75% TTM Sukuk BI-ID 4.61% UMW Holdings Bhd 4.55% Wesport M’sia SB 4.54% (i) Fixed Income Fund (Contd.) 3. INVESTMENTS (Contd.)
  47. 47. Takaful Investment-Linked Funds Report 46 As % of NAV 11.62% 5.85% 54.07% 20.08% 91.61% As % of Debt Securities 12.68% 6.38% 59.02% 21.91% 100.00% The table below analyses concentration of credit risk of the fund’s portfolio of debt securities by sectoral distribution: Credit Rating Government Islamic Investment: Government Guaranteed Private Debt Securities: Government Guaranteed AAA AA 2011 RM 498,900 251,100 2,321,790 862,055 3,933,845 As % of NAV 11.62% 7.14% 19.83% 11.66% 31.80% 9.57% 91.61% As % of Debt Securities 12.68% 7.80% 21.64% 12.73% 34.71% 10.45% 100.00% Sector Government Islamic Investment Consumer Products Construction and Engineering Financial services Infrastructures and utilities Trading/Services 2011 RM 498,900 306,750 851,320 500,650 1,365,305 410,920 3,933,845 (i) Fixed Income Fund (Contd.) NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 3. INVESTMENTS (Contd.)
  48. 48. Investment accounts with a licensed commercial bank The effective profit rate during the year ended 31 March 2011 of the investment accounts with a licensed commercial bank of the Fixed Income Fund was 2.68%. Takaful Investment-Linked Funds Report 47 As % of NAV 21.00% The table below provides information regarding the credit risk exposures of the Fund’s portfolio of investment accounts according to the credit ratings of licensed financial institution: Credit Rating AAA 2011 RM 901,800 > 1 Year RM - Total RM 901,800 < 1 Year RM 901,800 The maturity profile of the investment accounts with a licensed commercial bank as at 31 March 2011 is as follows: (i) Fixed Income Fund (Contd.) NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 3. INVESTMENTS (Contd.)
  49. 49. Takaful Investment-Linked Funds Report 48 Investments Financial Assets at FVTPL: Unquoted, Government Islamic Investment Unquoted, Private Debt Securities Quoted, Main Board Shariah Approved Securities Investment accounts with a licensed commercial bank (a) Fair Value Through Profit & Loss (FVTPL) Unquoted, Government Islamic Investment Cost Fair Value loss recognised in statement of comprehensive income Fair value Unquoted, Private Debt Securities Cost Fair Value loss recognised in statement of comprehensive income Fair value Quoted, Main Board Shariah Approved Securities Cost Fair Value gain/(loss) recognised in statement of comprehensive income Fair value (b) Investment accounts with a licensed commercial bank Total investments (ii) Balanced Fund 2011 RM 199,560 1,051,895 3,566,208 4,817,663 763,600 5,581,263 200,210 (650) 199,560 1,057,126 (5,231) 1,051,895 3,433,999 132,209 3,566,208 763,600 5,581,263 2010 RM - 591,208 1,778,952 2,370,160 396,000 2,766,160 - - - 603,070 (11,862) 591,208 1,992,016 (213,063) 1,778,952 396,000 2,766,160 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 3. INVESTMENTS (Contd.)
  50. 50. Takaful Investment-Linked Funds Report 49 (ii) Balanced Fund (Contd.) Fair Value RM 199,560 199,560 No. of units 200,000 200,000 Fair Value as % of NAV 3.84% 3.84% Cost RM 200,210 200,210 Government Islamic Investment: Govt. Islamic Investment 3.87% Fair Value RM 200,780 176,070 300,660 169,965 102,880 101,540 1,051,895 No. of units 200,000 170,133 300,000 150,000 100,000 100,000 1,020,133 Fair Value as % of NAV 3.86% 3.39% 5.78% 3.27% 1.98% 1.95% 20.23% Cost RM 200,000 171,426 300,000 180,090 103,750 101,860 1,057,126 Private Debt Securities: AmIslamic Bank Bhd 4.30% Binariang GSM Sdn Bhd 5.55% M’sia Airport Capital Bhd 4.55% Mukah Power Senior Sukuk 7.80% Putrajaya Hldg Sdn Bhd 5.00% Westport M’sia SB 4.54% The composition, cost and fair value of the debt securities, as at 31 March 2011 are as detailed below: NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 3. INVESTMENTS (Contd.)
  51. 51. Takaful Investment-Linked Funds Report 50 (ii) Balanced Fund (contd.) As % of NAV 3.84% 7.76% 12.47% 24.07% As % of Debt Securities 15.95% 32.25% 51.81% 100.00% The table below analyses concentration of credit risk of the fund’s portfolio of debt securities by sectoral distribution: Credit Rating Government Islamic Investment: Government Guaranteed Private Debt Securities: AAA AA 2011 RM 199,560 403,540 648,355 1,251,455 As % of NAV 3.84% 3.86% 12.98% 3.39% 24.07% As % of Debt Securities 15.95% 16.04% 53.94% 14.07% 100.00% Sector Government Islamic Investment Financial services Infrastructures and utilities Trading/Services 2011 RM 199.560 200,780 675,045 176,070 1,251,455 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 3. INVESTMENTS (Contd.) The table below provides information regarding the credit risk exposures of the Fund’s Portfolio of debt securities according to the credit ratings of counterparties:
  52. 52. Takaful Investment-Linked Funds Report 51 Fair Value RM 145,000 61,800 910 157,090 68,400 64,200 207,740 142,450 75,000 203,060 274,500 169,480 38,250 129,000 101,500 123,480 No. of units 20,000 20,000 1,000 23,000 6,000 30,000 34,000 37,000 25,000 26,000 30,000 38,000 15,000 50,000 50,000 18,000 Fair Value as % of NAV 2.79% 1.19% 0.02% 3.02% 1.32% 1.23% 4.00% 2.74% 1.44% 3.91% 5.28% 3.26% 0.74% 2.48% 1.95% 2.38% Cost RM 131,791 34,845 0 125,078 68,060 61,131 213,047 119,678 85,240 235,532 263,934 149,108 67,985 85,506 110,826 74,625 The composition, cost and fair value of the Shari’ah Approved Securities of the Balanced Fund as at 31 March 2011 are as detailed below: Syariah Approved Securities: Quoted, Main Board UMW Holdings Bhd QL Resources Bhd QL Resources Bhd-Warrants Petronas Chemicals Group Bhd Petronas Gas Bhd Malaysian Resources Corp. Bhd IJM Corporation Bhd Gamuda Berhad WCT Berhad MSC Berhad Sime Darby Bhd Plus Expressways Bhd M’sian Bulk Carriers Berhad Kencana Petroleum Bhd Dayang Enterp. Hldgs Bhd Msia Marine & Heavy Engineering (ii) Balanced Fund (contd.) NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 3. INVESTMENTS (Contd.)
  53. 53. Takaful Investment-Linked Funds Report 52 Fair Value RM 244,361 178,042 178,200 218,550 115,500 158,900 76,360 106,260 256,500 71,675 3,566,208 No. of units 40,125 31,850 33,000 46,500 50,000 70,000 23,000 7,000 45,000 23,500 792,975 Fair Value as % of NAV 4.70% 3.42% 3.43% 4.20% 2.22% 3.06% 1.47% 2.04% 4.93% 1.38% 68.59% Cost RM 282,825 179,354 171,814 215,656 79,552 165,219 79,487 101,378 251,500 80,830 3,433,999 Syariah Approved Securities: Quoted, Main Board Tenaga Nasional Berhad Parkson Holdings Bhd Maxis Berhad Axiata Group Berhad Dialog Group Bhd YTL Power International Berhad KLCC Property Holdings Berhad Batu Kawan 101 Corporation Bhd Tradewinds Plantation Bhd (ii) Balanced Fund (contd.) NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 3. INVESTMENTS (Contd.)
  54. 54. Takaful Investment-Linked Funds Report 53 RM 763,600 As % of NAV 14.69% Credit Rating AAA The table below provides information regarding the credit risk exposures of the Fund’s portfolio of investment accounts according to the credit ratings of licensed financial institution: 2011 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 (ii) Balanced Fund (contd.) 3. INVESTMENTS (Contd.) Investment accounts with a licensed commercial bank The effective profit rate during the year ended 31 March 2011 of the investment accounts with a licensed commercial bank of the Balanced Fund was 2.68%. > 1 Year RM - Total RM 763,600 < 1 Year RM 763,600 The maturity profile of the investment accounts with a licensed commercial bank as at 31 March 2011 is as follows:
  55. 55. Takaful Investment-Linked Funds Report 54 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 Investments Financial Assets at FVTPL: Quoted, Main Board Shariah Approved Securities Investment accounts with a licensed commercial bank (a) Fair Value Through Profit & Loss (FVTPL) Quoted, Main Board Shariah Approved Securities Cost Fair value gain/(loss) recognised in statement of comprehensive income Fair value (b) Investment accounts with a licensed commercial bank Total investments (iii) Growth Fund 2011 RM 5,184,566 1,021,600 6,206,166 4,989,198 195,368 5,184,566 1,021,600 6,206,166 2010 RM 2,629,288 1,278,000 3,907,288 2,922,907 (293,619) 2,629,288 1,278,000 3,907,288 3. INVESTMENTS (Contd.)
  56. 56. Takaful Investment-Linked Funds Report 55 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 Fair Value RM 181,250 74,160 1,092 204,900 114,000 107,000 244,400 177,100 120,000 173,382 457,500 175,500 156,100 17,850 193,500 142,100 No. of units 25,000 24,000 1,200 30,000 10,000 50,000 40,000 46,000 40,000 22,200 50,000 45,000 35,000 7,000 75,000 70,000 Fair Value as % of NAV 2.99% 1.22% 0.02% 3.38% 1.88% 1.77% 4.03% 2.92% 1.98% 2.86% 7.55% 2.90% 2.58% 0.29% 3.19% 2.34% Cost RM 166,281 41,814 0 170,349 113,434 101,886 252,148 152,585 133,885 199,391 440,354 153,313 134,206 31,469 138,827 160,161 The composition, cost and fair value of the Shari’ah Approved Securities of the Growth Fund as at 31 March 2011 are as detailed below: Syariah Approved Securities: Quoted, Main Board UMW Holdings Bhd QL Resources Bhd QL Resources Bhd-Warrants Petronas Chemicals Group Petronas Gas Bhd Malaysian Resources IJM Corporation Bhd Gamuda Berhad WCT Berhad MISC Berhad Sime Darby Bhd TM Berhad Plus Expressways Bhd Malaysian Bulk Carriers Berhad Kencana Petroleum Bhd Dayang Enterprise Holdings Bhd 3. INVESTMENTS (Contd.)
  57. 57. Takaful Investment-Linked Funds Report 56 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 Fair Value RM 171,500 308,459 212,168 232,200 479,400 138,600 181,600 83,000 89,000 151,800 342,000 183,330 71,675 5,184,566 No. of units 25,000 50,650 37,955 43,000 102,000 60,000 80,000 25,000 20,000 10,000 60,000 63,000 23,500 1,170,505 Fair Value as % of NAV 2.83% 5.09% 3.50% 3.83% 7.91% 2.29% 3.00% 1.37% 1.47% 2.50% 5.64% 3.02% 1.18% 85.54% Cost RM 119,034 347,678 216,322 224,581 479,197 95,836 188,382 87,597 86,384 144,826 337,788 190,722 80,749 4,989,198 (iii) Growth Fund (Contd.) Syariah Approved Securities: Quoted, Main Board Mia Marine and Heavy Engineering Tenaga Nasional Berhad Parkson Holdings Bhd Maxis Berhad Axiata Group Berhad Dialog Group Efid YTL Power International Berhad KLCC Property Holdings Berhad Sunway City Bhd Batu Kawan 101 Corporation Bhd IJM Plantations Bhd Tradewinds Plantation 3. INVESTMENTS (Contd.)
  58. 58. Takaful Investment-Linked Funds Report 57 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 RM 1,021,600 As % of NAV 16.85% Credit Rating AAA The table below provides information regarding the credit risk exposures of the Fund’s portfolio of investment accounts according to the credit ratings of licensed financial institution: 2011 3. INVESTMENTS (Contd.) (iii) Growth Fund (Contd.) Investment accounts with a licensed commercial bank The effective profit rate during the year ended 31 March 2011 of the investment accounts with a licensed commercial bank of the Growth Fund was 2.68%. The maturity profile of the investment accounts with a licensed commercial bank as at 31 March 2011 is as follows: Total RM 1,021,600 < 1 Year RM 1,021,600 > 1 Year RM -
  59. 59. Takaful Investment-Linked Funds Report 58 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 2011 RM 11,474,703 100,014 11,574,717 10,964,806 509,897 11,474,703 100,014 11,574,717 - 5,580,160 2010 RM 5,580,160 - 5,580,160 5,467,371 112,789 5,580,160 (iv) AmHigh Islamic Cash Strategy Fund Investments Financial Assets at FVTPL: Islamic Unit Trust Investment accounts with a licensed commercial bank (a) Fair Value Through Profit & Loss (FVTPL) Islamic Unit Trust Cost Fair value gain recognised in statement of comprehensive income Fair value (b) Investment accounts with a licensed commercial bank Total investments 3. INVESTMENTS (Contd.)
  60. 60. Takaful Investment-Linked Funds Report 59 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 The composition, cost and fair value of the Islamic Unit Trust, as at 31 March 2011 are as detailed below: Fair Value RM 2,378,898 338,601 1,475,012 886,210 1,919,536 290,418 3,556,130 629,898 11,474,703 No. of units 2,029,777 624,945 1,327,047 1,637,187 3,261,190 579,676 6,416,691 1,195,933 17,072,445 Fair Value as % of NAV 20.27% 2.88% 12.57% 7.55% 16.35% 2.47% 30.30% 5.37% Cost RM 2,268,900 334,206 1,420,700 849,600 1,836,600 279,000 3,367,500 608,300 10,964,806 Islamic Unit Trust AmInvestment Services Berhad Hwang-DBS Investment Mgt. Berhad Maakl Mutual Berhad Pacific Mutual Fund Berhad Avenue Invest Berhad Alliance Investment Management Berhad Amanah Mutual Berhad BIMB Investment Management Berhad (iv) AmHigh Islamic Cash Strategy Fund (Contd.) 3. INVESTMENTS (Contd.)
  61. 61. Takaful Investment-Linked Funds Report 60 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 The maturity profile of the investment accounts with a licensed commercial bank as at 31 March 2011 is as follows: Investment accounts with a licensed commercial bank The effective profit rate during the year ended 31 March 2011 of the investment accounts with a licensed commercial bank of the AmHigh Cash Strategy Fund was 2.50%. As % of NAV 0.85% RM 100,014 The table below provides information regarding the credit risk exposures of the Fund’s portfolio of investment accounts according to the credit ratings of licensed financial institution: Credit Rating AA 2011 > 1 Year RM - Total RM 100,014 < 1 Year RM 100,014 3. INVESTMENTS (Contd.) (iv) AmHigh Islamic Cash Strategy Fund (Contd.)
  62. 62. Takaful Investment-Linked Funds Report 61 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 2011 RM 61,538,755 450,062 61,988,817 57,812,473 3,726,282 61,538,755 450,062 61,988,817 - 21,817,052 2010 RM 21,817,052 - 21,817,052 20,188,563 1,628,489 21,817,052 (v) AmHigh Islamic Equity Strategies Fund Investments Financial Assets at FVTPL: Islamic Unit Trust Investment accounts with a licensed commercial bank (a) Fair Value Through Profit & Loss (FVTPL) Islamic Unit Trust Cost Fair value gain recognised in statement of comprehensive income Fair value (b) Investment accounts with a licensed commercial bank Total investments The composition, cost and fair value of the Islamic Unit Trust, as at 31 March 2011 are as detailed below: Fair Value RM 11,535,110 4,802,842 11,145,243 6,172,241 6,225,638 3,474,158 3,417,915 2,984,228 6,083,081 985 5,697,313 61,538,755 No. of UNITS 29,814,245 7,313,737 23,668,558 10,396,229 10,922,172 6,413,435 3,950,433 2,697,729 19,782,378 1,713 14,519,147 129,479,777 Fair Value as % of NAV 18.56% 7.73% 17.93% 9.93% 10.02% 5.59% 5.50% 4.80% 9.79% 0.00% 9.17% Cost RM 10,534,697 4,221,620 10,126,120 5,831,406 5,999,300 3,221,073 3,379,100 2,890,704 6,070,700 - 5,537,753 57,812,473 Islamic Unit Trust AmInvestment Services Berhad CIMB-Principal Asset Management Maakl Mutual Berhad Pacific Mutual Fund Berhad Amanah Mutual Berhad Avenue Invest Berhad Hwang-DBS Investment Berhad Prudential Management Berhad BIMB Investment Management Berhad Alliance Investment Management Asia Unit Trust 3. INVESTMENTS (Contd.)
  63. 63. Takaful Investment-Linked Funds Report 62 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 The maturity profile of the investment accounts with a licensed commercial bank as at 31 March 2011 is as follows: Investment accounts with a licensed commercial bank The effective profit rate during the year ended 31 March 2011 of the investment accounts with a licensed commercial bank of the AmHigh Equities Strategies Fund was 2.50%. 4. AMOUNT DUE TO THE INVESTMENT LINKED TAKAFUL FUNDS As % of NAV 0.72% RM 450,062 The table below provides information regarding the credit risk exposures of the Fund’s portfolio of investment accounts according to the credit ratings of licensed financial institution: Credit Rating AA 2011 > 1 Year RM - Total RM 450,062 < 1 Year RM 450,062 The amount due to the Investment Linked Takaful Funds is profit-free, unsecured and has no fixed terms of repayment. (v) AmHigh Islamic Equity Strategies Fund (Contd.) 3. INVESTMENTS (Contd.)
  64. 64. Takaful Investment-Linked Funds Report 63 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 2011 RM 2,717 (525) 2,192 2010 RM 3,052 (335) 2,717 (i) Fixed Income Fund (ii) Balanced Fund (iii) Growth Fund 2011 RM 17,993 (28,099) (10,106) 2011 RM 23,490 (39,119) (15,629) 2010 RM 51,603 (33,610) 17,993 2010 RM 74,932 (51,442) 23,490 At beginning of year Deferred tax liability arising on unrealised capital gains on investments, recognised in the statements of comprehensive income (Note 6) At the end of the year At beginning of year Deferred tax liability arising on unrealised capital gains on investments, recognised in the statements of comprehensive income (Note 6) At the end of the year At beginning of year Deferred tax liability arising on unrealised capital gains on investments, recognised in the statements of comprehensive income (Note 6) At the end of the year 5. DEFERRED TAXATION
  65. 65. Takaful Investment-Linked Funds Report 64 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 2011 RM (9,023) (31,769) (40,792) 2010 RM - (9,023) (9,023) (iv) AmHigh Islamic Cash Strategy Fund (v) AmHigh Islamic Equity Strategies Fund 2011 RM (130,279) (167,823) - (298,102) 2010 RM - (130,315) 36 (130,279) At beginning of year Deferred tax liability arising on unrealised capital gains on investments, recognised in the statements of income and expenditure (Note 9) At the end of the year At beginning of year Deferred tax liability arising on unrealised capital gains on investments, recognised in the statements of income and expenditure (Note 9) Overprovision of deferred tax in prior year At the end of the year 5. DEFERRED TAXATION (CONTD.)
  66. 66. Takaful Investment-Linked Funds Report 65 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 2011 RM 16,181 525 16,706 2011 RM 21,000 28,099 49,099 2011 RM 15,385 39,119 54,504 2010 RM 5,675 335 6,010 2010 RM 18,471 33,610 52,081 2010 RM 15,141 51,442 66,583 (i) Fixed Income Fund (ii) Balanced Fund (iii) Growth Fund Tax expense for the year: Malaysian income tax Deferred tax: Relating to origination and reversal of temporary difference (Note 5) Tax expense for the year Tax expense for the year: Malaysian income tax Deferred tax: Relating to origination and reversal of temporary difference (Note 5) Tax expense for the year Tax expense for the year: Malaysian income tax Deferred tax: Relating to origination and reversal of temporary difference (Note 5) Tax expense for the year 6. TAXATION
  67. 67. Takaful Investment-Linked Funds Report 66 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 2011 RM - 31,769 31,769 2011 RM 294,014 167,823 - 461,837 2010 RM - 9,023 9,023 2010 RM 44,561 130,315 (36) 174,840 (iv) AmHigh Islamic Cash Strategy Fund (v) AmHigh Islamic Equity Strategies Fund Tax expense for the year: Malaysian income tax Deferred tax: Relating to origination and reversal of temporary difference (Note 5) Tax expense for the year Tax expense for the year: Malaysian income tax Deferred tax: Relating to origination and reversal of temporary difference (Note 5) Overprovision in prior year Tax expense for the year 6. TAXATION (CONTD.)
  68. 68. Takaful Investment-Linked Funds Report 67 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 The tax charge on the funds relates to tax on investment income at the applicable tax rate of 8%, which is also applicable to that of the Family Takaful fund of the Manager. A reconciliation of income tax expenses applicable to the surplus before taxation at the tax rate applicable to the Takaful Investment Linked Funds, to income tax expense at the effective income tax rate, is as follows: (i) Fixed Income Fund Surplus before taxation Taxation at applicable tax rate of 8% Expenses not deductible for tax purposes Tax expense for the year 2011 RM 117,140 9,371 7,335 16,706 2010 RM 21,581 1,727 4,283 6,010 6. TAXATION (CONTD.)
  69. 69. Takaful Investment-Linked Funds Report 68 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 (iii) Growth Fund Surplus before taxation Taxation at applicable tax rate of 8% Expenses not deductible for tax purposes Tax expense for the year 2011 RM 317,888 25,431 29,073 54,504 2010 RM 686,564 54,925 11,658 66,583 Surplus before taxation Taxation at applicable tax rate of 8% Expenses not deductible for tax purposes Tax expense for the year 2011 RM 514,611 41,169 7,930 49,099 2010 RM 562,135 44,971 7,110 52,081 (ii) Balanced Fund 6. TAXATION (CONTD.)
  70. 70. Takaful Investment-Linked Funds Report 69 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 (v) AmHigh Islamic Equity Strategies Fund Surplus before taxation Taxation at applicable tax rate of 8% Expenses not deductible for tax purposes Overprovision of deferred tax in prior year Tax expense for the year 2011 RM 1,284,380 102,750 359,087 - 461,837 2010 RM 1,343,311 107,465 67,411 (36) 174,840 Loss before taxation Taxation at applicable tax rate of 8% Expenses not deductible for tax purposes Tax expense for the year 2011 RM (734,559) (58,765) 90,534 31,769 2010 RM (66,710) (5,337) 14,360 9,023 (iv) AmHigh Islamic Cash Strategy Fund 6. TAXATION (CONTD.)
  71. 71. Takaful Investment-Linked Funds Report 70 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 (i) Fixed Income Fund Unitholders’capital Undistributed surplus Total equity Net assets value per unit at 31 March (a) Unitholders’ capital Unitholders’ account at beginning of year Amount received for creations during the year As at end of the year (b) Undistributed surplus Undistributed surplus brought forward Net surplus for the year after taxation Undistributed surplus carried forward No.of Units 1,300,914 207,438 1,508,352 No.of Units 1,508,352 2,911,929 4,420,281 Note (a) (b) RM 1,287,263 61,987 1,349,250 RM 1,349,250 2,788,215 4,137,465 2011 RM 4,137,465 156,618 4,294,083 0.9715 2010 RM 1,349,250 56,184 1,405,434 0.9318 2011 RM 56,184 100,434 156,618 2010 RM 40,613 15,571 56,184 20102011 7. TOTAL EQUITY
  72. 72. Takaful Investment-Linked Funds Report 71 NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2011 (ii) Balanced Fund Unitholders’capital Undistributed surplus Total equity Net assets value per unit at 31 March (a) Unitholders’ capital Unitholders’ account at beginning of year Amount received for creations during the year As at end of the year (b) Undistributed surplus Undistributed surplus/(loss) brought forward Net surplus for the year after taxation Undistributed surplus carried forward Note (a) (b) No.of Units 2,325,394 193,759 2,519,153 No.of Units 2,519,153 1,718,660 4,237,813 RM 2,332,177 112,837 2,445,014 RM 2,445,014 1,992,080 4,437,094 2011 RM 4,437,094 761,949 5,199,043 1.2268 2010 RM 2,445,014 296,437 2,741,451 1.0882 2011 RM 296,437 465,512 761,949 2010 RM (213,617) 510,054 296,437 20102011 7. TOTAL EQUITY (CONTD.)

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