keluarga berhad - takaful€¦ · invest primarily in selected shariah-compliant equities that...
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SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 2
CONTENTS
Page
GROUP CHIEF EXECUTIVE OFFICER’S STATEMENT 3
FUND PROFILE 4
GLOBAL AND LOCAL ECONOMIC REVIEW 7
EQUITY AND FIXED INCOME MARKET REVIEW 9
MARKET OUTLOOK AND INVESTMENT STRATEGY 10
FUND PERFORMANCE REPORT 12
SOFT COMMISSION RECEIVED FROM BROKERS 26
STATEMENT BY DIRECTORS 27
INDEPENDENT AUDITORS’ REPORT 28
STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2018 30
STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2017 31
STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2018 32
STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2017 33
STATEMENTS OF CHANGES IN NET ASSET VALUE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2018 34
STATEMENTS OF CHANGES IN NET ASSET VALUE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2017 34
CASH FLOW STATEMENTS FOR FINANCIAL YEAR ENDED 31 DECEMBER 2018 35
CASH FLOW STATEMENTS FOR FINANCIAL YEAR ENDED 31 DECEMBER 2017 36
NOTES TO THE FINANCIAL STATEMENTS 37
DETAILS OF INVESTMENTS 41
COMPARATIVE PERFORMANCE TABLE 53
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 3
GROUP CHIEF EXECUTIVE OFFICER’S STATEMENT
It is my pleasure to present the 2018 Annual Report of Takaful Malaysia’s Investment-Linked Funds consisting of the
Ittizan Fund, Istiqrar Fund, myEquity Index Fund, myGrowth Fund, myBlue Chips Fund, myDividend Fund and
myBalanced Fund for the year ended 31 December 2018.
In 2018, the Malaysian equity index FTSE Bursa Malaysia KLCI (FBMKLCI) hit the peak of 1,895.18 pts pre-General
Election 14 (GE-14) before scaling down to 1,663.86 pts post GE-14. A rebound in September 2018 has resulted in the
index to hit above the 1,800 pts level before closing the year at 1,690.58 pts to record a full year loss of -5.91%. During
the year, the Malaysian stock market was hindered by multiple challenges, domestically and globally. Locally, an
unexpected government change following the GE-14 resulted in changes in the Government policies as well as the
cancellation and downscaling of mega infrastructure projects. Externally, trade tensions between the United States (US)
and its trading partners continue to simmer, with a risk of a full blown trade war between the US and China.
Malaysia GDP growth has been slowing down with 9M18 GDP growth recorded at +4.7% (9M17: +5.9%); dragged by
softer growth in goods and services exports, given the moderating global economic and trade growth amid the downside
risk of further escalation in the trade war between the US and China. During the Budget 2019 tabled on 2 November
2018, the official 2018 real GDP growth forecast was lowered to +4.8% from a range of +5.5% to +6.0% previously.
International Monetary Fund (IMF) forecasted the global GDP growth of 2018 at 3.7% as the economy may have
witnessed an increasing trend in some major economies. The downside risks to global growth have been on the rise
following the trade disputes between the US and China whilst the potential for upside surprises declined. Most major
economies continued to tighten their monetary policies on the back of the rising US and global interest rates as well as
the closing stages of quantitative easing in major central banks.
On the investment front we continued to adopt prudent and vigilant investment strategies in managing risks and returns
resourcefully in advance of the ongoing uncertainties in the financial market. Despite the challenges, we are pleased to
report that the myEquity Fund, myGrowth Fund, myDividend Fund and myBlueChips Fund have outperformed by +130
bps to +569 bps of their benchmarks, whilst the FTSE Bursa Malaysia EMAS Shariah Index (FBMS) recorded a
negative return of -13.5%. By rank, the outperformance was led by the index tracking fund, myEquity fund surpassing its
benchmark by +569 bps followed by myBlueChips Fund and myDividend Fund outperforming their benchmark returns
by +438 bps and +279 bps respectively. You may find out more information about the funds, including the financial
performance in the following pages.
The market outlook for the year 2019 is expected to continue to be challenging on the back of the prevailing
uncertainties and headwinds at the global as well as domestic levels. Hence, the equity market is also anticipated to
remain volatile. Investors would be focusing on the implementation of the structural reforms which is expected to
weaken consumer sentiment and dampen profit margins of certain sectors. The positives, including Petronas spending
will remain intact, in addition to the continuity of some key infrastructure projects and recovery of exporters on a
stronger global economy. We are of the view that the market downside is fairly limited, given the strong domestic
liquidity, lower political risk and fiscal concerns being addressed.
Any upward movement of interest rate would be positive for new investments in sukuk and deposit instruments.
However, there would be limited trading opportunities to realize gains from existing holdings as the increase in interest
rate would result in the drop of market value.
While 2019 poses new challenges, the coming year also holds various opportunities for our team to strive for sound
returns to the participants. I would like to express my sincere gratitude for your unwavering support and look forward to
charting another great year of success.
Dato’ Sri Mohamed Hassan Kamil Group Chief Executive Officer
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 4
FUND PROFILE
ITTIZAN
Investment Objective
To achieve reasonable returns and capital growth opportunities via selected investments in Shariah approved shares listed in Bursa Malaysia and sukuk.
Investment Strategy
Invest in a balanced asset allocation comprising of Shariah-compliant equity, sukuk and money market.
Asset Allocation
At least 30% and a maximum of 70% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission;
The balance in cash, long and short term sukuk and other liquid Islamic investments.
Performance Benchmark
70% FBM Emas Shariah Index (“FBMSI”) and 30% one-month return Maybank General Investment Account rate (“GIA”).
ISTIQRAR
Investment Objective
To achieve a relatively stable pattern of investment returns over medium term through selected investments in Shariah approved shares listed in Bursa Malaysia and sukuk.
Investment Strategy
Invest in a balanced asset allocation comprising mainly of sukuk with smaller exposure in Shariah-compliant equity.
Asset Allocation
A maximum of 35% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission;
At least 65% and a maximum 100% in cash, long and short term sukuk and other liquid Islamic investments.
Performance Benchmark
30% FBM Emas Shariah Index (“FBMSI”) and 70% one-month return at Maybank General Investment Account rate (“GIA”).
myEQUITY INDEX FUND
Investment Objective
To achieve returns that tracks the performance of the FBM Emas Shariah Index.
Investment Strategy
Invest mainly in the top 40 of the Index component stocks; closely tracking the movement of the Benchmark in the medium to long term;
Constant rebalancing of the component stocks to closely track the benchmark performance.
Asset Allocation
90% - 95% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission;
The balance in Islamic money market instruments.
Performance Benchmark
FBM Emas Shariah Index (“FBMSI”).
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 5
myGROWTH FUND
Investment Objective
To achieve capital growth opportunities and dividend income through selective investments in Shariah approved shares listed in Bursa Malaysia.
Investment Strategy
Invest primarily in selected Shariah-compliant equities that comprise of a diversified portfolio of index-linked companies, blue-chip stocks and companies with growth prospects and attractive dividend yields that are listed on Bursa Malaysia;
Active portfolio management – constant review on asset allocation and stocks holding. Stock / portfolio turnover would be practically high in search for opportunities in capital gain and dividend yield stocks.
Asset Allocation
At least 50% and a maximum of 95% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission;
The balance in cash, long and short term sukuk and other liquid Islamic investments.
Performance Benchmark
FBM Emas Shariah Index (“FBMSI”).
myBLUE CHIPS FUND
Investment Objective
To achieve consistent capital growth in the long run through investments in Shariah-compliant Blue Chips Shares.
Investment Strategy
Invest primarily in Shariah-compliant equities with higher market capitalisation to achieve long term capital growth;
Active portfolio management - constant review on asset allocation and stock holding in search of stocks that meet the objective of the Fund.
Asset Allocation
At least 40% and a maximum of 90% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission;
The balance in Islamic money market instruments.
Performance Benchmark
FBM Emas Shariah Index (“FBMSI”).
myDIVIDEND FUND
Investment Objective
To achieve dividend income in the long term through selective investments in high dividend yield shares that provide a minimum annual gross dividend of 4.00%.
To achieve capital growth through selective investments in Blue Chips Shares that could potentially provide capital growth in the long run.
Investment Strategy
Invest primarily in dividend yield stocks that provide a minimum annual gross dividend of 4.00% as well as blue-chip stocks that could potentially grow in the long run;
At all times, exposure in stocks that yield a minimum of 4% annual gross dividend shall be at least 50% of the equity exposure;
Constant review on asset allocation and stock holding in search of stocks that comply with the objectives of the Fund.
Asset Allocation
At least 40% and a maximum of 90% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission;
At least 50% of the equity exposure is in dividend yield shares;
The balance in Islamic money market instruments.
Performance Benchmark
FBM Emas Shariah Index (“FBMSI”).
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 6
myBALANCED FUND
Investment Objective
To achieve moderate streams of income and consistent capital growth over the medium to long term period by investing in a diversified portfolio of investments;
To construct a diversified portfolio containing a balanced mixture of equities and fixed income securities.
Investment Strategy
Invest in a balanced asset allocation comprising of Shariah-compliant equity, sukuk and money market.
Asset Allocation
At least 10% and a maximum of 40% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission;
At least 10% and a maximum of 60% in sukuk and Malaysian Government Investment Issues;
The balance in Islamic money market instruments.
Performance Benchmark
40% FBM Emas Shariah Index (“FBMSI”) and 60% 12 months return Maybank General Investment Account rate (“GIA”).
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 7
GLOBAL AND LOCAL ECONOMIC REVIEW
Economic Review This annual report is for the financial year of 1 January 2018 to 31 December 2018.
IMF forecasted the global GDP growth of 2018 at 3.7% as the economy may have witnessed an increase in some
major economies. The downside risks to global growth have been on the rise following the trade dispute between
the US and China, whilst the potential for upside remained challenging. Most major economies continued to
tighten their monetary policies on the back of increasing US and global interest rates as well as the closing stages
of quantitative easing in major central banks.
Over in the US, the Bureau of Economic Analysis (BEA) via the third estimate released, estimated the GDP to
increase by 3.4% in the third quarter of 2018 (Q2 2018: 4.2%). The growth rate was revised down by 0.1
percentage point from the second estimate released in November 2018, reflecting downward revisions to
personal consumption expenditures and exports that were partly offset by an upward revision to private inventory
investment.
For Euro zone, the GDP growth in the Euro area dropped to 1.6% in Q3 from Q2’s 2.2%. The deterioration was
driven by weaker dynamics in both the domestic and external economies. The Euro zone economy has entered a
slower growth trajectory after the buoyant recovery in 2017 due to tough external environment challenges,
particularly the global trade tensions, political and socio-economic uncertainties in Europe amid the on-going
Brexit drama and EU-Italy budget standoff, as well as the rising political instability and the growing socio-
economic divide in the continent.
China’s policies turned reflationary and pro-growth as economic data remained soft following the moderation in
real GDP growth to 6.5% in Q3 2018 after hovering in the range of 6.7%-6.9% since Q3 2015 amid downside
risks from the de-leveraging and de-risking policies and the trade war with the US. In addition, the Chinese yuan
has weakened against the USD by as much as 10% in 2018. The anticipated reflationary and pro-growth
measures and additional steps, especially in 1H 2019, such as further reserve requirement ratio (RRR) cuts,
pump-priming and even the possibility of mild relaxation of property measures will mitigate the downtrend in
China’s economic growth and ease the funding crunch as well as the liquidity risk. Amid a rising tide of debt
refinancing over the next 2-3 years, these measures will consecutively result in slightly slower growth of 6.3% in
2019 compared to the estimated 6.6% in 2018.
Brent crude oil rose from USD66.87/bbl at the end of 2017 to USD84.16 in October before closing the year much
lower at USD52.20/bbl. Several contributing factors were accounted for this, including the threat of sanctions on
Iran, continued increase in global demand despite increasing predictions of the demise of demand growth and the
deteriorating situation in Venezuela. The year-end witnessed the Brent crude oil price to decrease by 38% from a
high of USD84/bbl on 5 October 2018 to USD52/bbl as the global crude oil supply-demand balance returned to
excess supply situation in 2018 after the glut in 2014-2016 was reversed in 2017. The situation was compounded
by the surge in the US shale oil output, negating the output cuts by Saudi-led OPEC and Russia-led non-OPEC
producers, as well as the outlook of slowing global economic growth, which resulted in global oil demand.
The Malaysian economy was also showing a slowdown with 9M18 GDP growth recorded at +4.7% (January-
September 2017: +5.9%; 2017: +5.9%). During the Budget 2019 tabled on 2 November 2018, the official 2018
real GDP growth forecast was reduced to +4.8% from +5.5% compared to +6.0% range previously, followed by
+4.9% expansion in 2019. The slowdown was mainly due to the drag on public investment which contracted by -
5.3% from January-September 2018, reflecting the effect of cost reviews as well as the cancellations and
postponements of major infrastructure and other development projects. Public investment was also affected by
the capital expenditure of Government-linked companies that made up nearly two-thirds of public investment
compared to the Government’s development spending share of 30%. Petronas made up 30% of the public
investment with capex tapered off as the RAPID project scheduled to be completed by this year followed by its
operation next year. The private investment expanded moderately by +4.5% trailing last year’s +9.3% growths.
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 8
Headline inflation averaged at 1.0%, mainly attributable to the waning Sales and Service Tax (SST) impact
(implementation starts September) as well as high year-ago base effects, especially in the transportation,
communication, recreation services in addition to the miscellaneous goods and services components. Exports
and imports moderated significantly in November 2018 to +1.6% YoY (Oct 2018: +17.7% YoY) and +5.0% YoY
(October 2018: +11.4% YoY). The trade outlook tilted to the downside amid the downtrend in global
manufacturing PMI, especially the new export orders component, indicating fallout from the US-China trade war
escalation.
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 9
EQUITY AND FIXED INCOME MARKET REVIEW
Equity Market
The FBMKLCI in 2018 remained volatile, hitting the peak of 1,895.18 pre-General Election 14 (GE-14) before
plummeting to 1,663.86 post GE-14 followed by a rebound in September 2018 where the index hit >1,800 pts
level. The rebound was short lived before closing the year at 1,690.58 with a year to date loss of -5.9%. The FBM
Emas Shariah Index performance contracted by -13.5% whilst the casualties were mostly small capitalization
stocks with FBM Small Cap Index registered -33.7% loss. The small cap underperformers were George Kent (-
76.2%) and Hai-O Enterprise (-50.4%). During the year, we witnessed the investors switching from small
capitalization stocks to big caps as uncertainties on the election looming in and locked gains on small caps after a
stellar performance in 2017 (+15.87%).
Two sectors reported a marginal positive performance; Bursa Malaysia Finance Index with +2.6% return through
Public Bank (+22.5%) and Hong Leong Bank (+22.9%) as well as Malaysia Consumer Index with +1.6% return
via Nestle (+45.6%) and PPB Group (+24.3%).
Construction and technology were the worst-performing sectors in the Bursa Malaysia Construction Index,
registering a sharp decline of -50.2%, whilst Bursa Malaysia Technology Index underperformed with -29.9%
returns. The construction sector recorded a poor performance due to the uncertainties on review and cancellation
of infrastructure mega projects by the new Government. For the technology sector, the strengthening of Ringgit
has triggered a sell down on exporters and revision of lower sales of smartphones by Apple. The underperformed
stocks were; Gamuda (-51.4%) and IJM (-45.3%) for the construction sector and MYEG (-37.5%) and Inari (-
31.6%) for the technology sector.
The year 2018 witnessed all countries under the ASEAN-5 registered a negative return. The FBMKLCI trailed
slightly behind Indonesia (-2.5%), whilst the rest registered lower returns with Singapore at -9.8%, Thailand at -
10.8% and Philippines at -12.8%.
Foreign investors, who were upbeat on Malaysian equities in early-2018 with a net buy of RM3.5b in Jan-Apr,
took profit as the GE-14 polling day drew closer; with net sold of RM1.2b between 2-8 May. Their net sell
accelerated post polling on 9 May, totaling RM4.4b between 14-31 May and RM4.9b in June. The net sell
continued in 2H18, bringing their position to a net sell of RM11.9b for 2018, reversing all of their RM10.6b of net
buy in 2017. In comparison by region, Malaysia’s foreign net sell settled at USD2.8b in 2018 behind Thailand
(USD8.8b) and Indonesia (USD3.6b).
Fixed Income Market
For the bond market, the local government bonds ended 2018 weaker in a bear-flattening move amid the falling
ringgit and global crude oil prices. Local government bonds were affected by external developments as well as
speculations over a possible downgrade in Malaysia’s rating outlook by international credit rating agencies. The
total gross issuance of MGS/GII papers was up by 0.8% to RM114.8 billion. GII papers dominated issuances, as
indicated by the GII-to-MGS ratio of 56:44.
The total corporate bond issuance in 2018 dropped by 15.4% to RM103.9 billion from RM122.9 billion in 2017.
The decline in financing activities was mainly attributable to a significant drop in the unrated segment together
with higher financing costs and the cancellation of some mega infrastructure projects that further dented issuance
activities within the segment. The largest issuances were from the financial sector, which contributed 48.2%
towards the total gross issuance. This was followed by the infrastructure and utilities (17.0%) as well as the
property and real estate (11.8%) sectors. The top five corporate bond issuers were DanaInfra Nasional Bhd
(RM11.1 billion), Cagamas Bhd (RM9.0 billion), Lembaga Pembiayaan Perumahan Sektor Awam (LPPSA)
(RM6.0 billion), Edra Energy Sdn Bhd (RM5.1 billion) and Danga Capital Bhd (RM3.5 billion).
Foreign funds recorded net sold off MYR2.2 billion of Ringgit debts in December, bringing the total foreign
holdings down to MYR184.7 billion (Nov: MYR187.1billion) whilst widening the full-year outflows to MYR21.9
billion, the largest since 2008. The foreign shares of MGS and MGS + GII declined to 38.4% (Dec 17: 45.1%) and
23.7% (Dec-17: 28.9%) respectively.
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 10
MARKET OUTLOOK AND INVESTMENT STRATEGY
Market Outlook
The IMF is forecasting the global economy to grow at 3.5% in 2019 and 3.6% in 2020. This is a downward
revision from their earlier projection of 3.7% for both years, partly because of the negative effects of tariff
increases enacted in the US and China earlier that year. The revision of the forecast is also due to the softer
momentum carried over from the second half of 2018, following the introduction of new automobile fuel emission
standards in Germany and in Italy, where concerns about sovereign and financial risks have weighed on the
domestic demand. The weakening financial market sentiment as well as a contraction in Turkey that is projected
to be deeper than anticipated also added to the downward revision. An escalation of trade tensions beyond those
already incorporated in the forecast remains a key source of risk to the outlook. The financial conditions have
already tightened since the fall. A range of triggers beyond escalating trade tensions could spark a further
deterioration in risk sentiment with adverse growth implications, especially given the high levels of public and
private debt. These potential triggers include a “no-deal” withdrawal of the United Kingdom from the European
Union and a greater-than-envisaged slowdown in China. These headwinds and risks to growth have raised
uncertainties and ignited volatility in the equities, bonds, currencies and commodities for 2019.
Globally, investors will focus on a number of economic, policy and political events: (i) the outcome and impact on
the trade war between US-China after a 90-day ceasefire by March 2019; (ii) policies in the major economies,
especially the monetary policies of major central banks amid expectations of Fed rate hikes pause and QE
unwinding by other major central banks in 2019; (iii) the direction of crude oil prices; and (iv) the political and
socio-economic uncertainties in Europe amid the ongoing Brexit drama and EU-Italy budget standoff as well as
the growing political and socio-economic divides in the continent.
Domestically, risks to growth are mainly external, largely from the danger of further escalation in trade war. We
are also keeping a close tab on Malaysia’s fiscal situation. On a positive note, Moody’s recently re-affirmed
Malaysia’s “A3” sovereign credit rating and “Stable” rating outlook. However, the rating agency also highlighted
Malaysia’s weakened fiscal strength and the challenges of achieving the medium term fiscal targets of lowering
the budget deficit to GDP ratio amid the soft crude oil price and the importance of credible and sustainable
measures to broaden the tax revenue base. Thus, a key lookout for 2019 is the Tax Reform Committee’s (TRC)
recommendations and proposals for tax system reforms and overhaul.
For the Malaysian economy, sub-5% growth to persist (2019E: +4.9%; 2018E: +4.7%), mainly reflecting the
mixed impact and the equally mixed outlook for domestic demand (i.e. consumer spending, private investment
and public expenditure) as the economy goes through adjustments post-GE14, especially on fiscal front. The
aforementioned moderation in global economic growth diminishes the contribution of net external demand to real
GDP growth. Besides macro viewpoint, the other key influences to Malaysia’s financial market outlook in 2019
are the crude oil price direction; MYR’s upward momentum, changes in Bank Negara Malaysia’s (BNM) overnight
policy rate (OPR) and consumer sentiment.
BNM has maintained the Overnight Policy Rate (OPR) at 3.25% in January 2019 as anticipated by the market.
The Monetary Policy Committee’s (MPC) statement made a more cautious assessment on the global economic
outlook as trade tensions began to impact global trade performance and investment activity in late-2018. BNM
has highlighted country-specific factors as one of the key downside risks for global growth prospects. As a result,
the central bank has assessed that the external sector is likely to soften amid moderating global growth, a
downgrade from its previous assessment which indicated that “exports are projected to provide an additional lift to
growth, albeit to a lesser extent.” On the domestic front, BNM projected a sustained expansion in private
consumption and private investment to offset consolidation in public spending.
For the sukuk market, 2019 will be another volatile year with expectation of growth momentum to be moderate.
Any changes to OPR would be data-dependent with focus to support GDP growth and domestic demand. In this
regard, if real GDP growth slips below 4.0%, there is a likelihood of a downward adjustment in BNM’s statutory
reserve requirement (SRR) by 50-100 bps. There is also a possibility of a slight reduction in the OPR (by 25 bps)
should the growth deceleration exceed the pace initially expected.
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 11
It is envisaged yields for MGS and corporate bonds are to increase slightly in 2019 compared to 2018. As for new
issuances, the estimated gross/net supply of MGS + GII for 2019 is about RM115 billion / RM52 billion which
should be manageable due to ample liquidity. The total bond issuances are also expected to be healthy on the
back of a steady domestic growth, continuation of infrastructure projects such as MRT2 and LRT3 although with
lower project costs and the continuation of GG issuances.
Investment Strategy
Market outlook is expected to continue to be challenging in 2019 on the back of all the uncertainties globally as
well as the domestic scenes. At end of 2018, the FBMKLCI trades at 16.0x 12M forward PER and 1.73x trailing
P/B. We believe the lackluster corporate earnings trends have brought forward market PE valuation to its mean
(PER 15.8x).
Our strategy in 2019 will be a bottom-up approach and the ability for corporate to deliver better earnings. We
remain prudent in our investment strategy; we continue to focus on stocks with good fundamentals, stable
historical income, strong management team, long-term earnings visibility and a solid balance sheet. We would
continue to seek alpha in our stock picks that are defensive in nature, to protect the capital from any potential
downside risks while meeting the long-term objective of the funds.
For certain funds which have exposure to investment in fixed income, any increase in interest rate would be
positive for new investments. However, there would be limited trading opportunity to realize gains from existing
holdings as the increase in interest rate would result in the drop of market value. The focus will be on corporate
sukuk within AAA and AA segments to maintain the healthy credit portfolio as well as for better liquidity.
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 12
FUND PERFORMANCE REPORT
ITTIZAN
Performance Review For the 12 months ended 31 December 2018, Ittizan performance is trailing its benchmark (70% FBMSI and 30% 1-Month GIA) by 240 bps with a loss of -10.9% in tandem with the benchmark’s negative return of -8.6% as detailed out below:-
Asset Allocation In terms of asset allocation, the fund has invested 48.91% in equity, 22.10% in sukuk and the remaining in money market / cash. On equity sectoral allocation, Healthcare was the top sector that the fund invested in with 7.79% exposure. The details of asset allocation and the top 5 investment holdings are given below:-
(12.0)
(10.0)
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
Retu
rn %
Ittizan vs Benchmark
Ittizan Benchmark
22.10%
7.79% 7.57% 6.83% 5.51% 5.02%
Sukuk Healthcare Utilities Energy Industrial Products
Technology
Total Return (%) Average Annual Return (%)
1-Year 3-Year 5-Year 1-Year 3-Year 5-Year
Ittizan -10.9% -4.8% -0.7% -10.9% -1.6% -0.1%
Benchmark -8.6% -3.9% -3.4% -8.6% -1.3% -0.7%
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 13
Fees / Charges levied to the Fund Among the fees/charges levied to the fund are: a) Management fee which is calculated based on 1.5% per annum of the Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of sukuk.
Details on Distribution There was no distribution declared for Ittizan for the period ended 31 December 2018.
Descriptions of any changes in Fund’s Objectives and Strategies There were no material changes in the fund’s objectives and strategies for the period ended 31 December 2018.
48.91%
28.99%
22.10%
Equities
Money Market & Cash
Sukuk
2.85%
3.00%
3.13%
3.24%
4.67%
Dialog Group Bhd
Inari Amertron Bhd
Genting Plantations Bhd
Petronas Chemicals Group Bhd
Tenaga Nasional Bhd
Top 5 Investment Holding
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 14
FUND PERFORMANCE REPORT
ISTIQRAR Performance Review For the 12 months ended 31 December 2018, Istiqrar performance is trailing its benchmark (30% FBMSI and 70% 1-Month GIA) by 220 bps with a loss of -4.1% in tandem with the benchmark’s negative return of -1.9% as detailed out below:-
Total Return (%) Average Annual Return (%)
1-Year 3-Year 5-Year 1-Year 3-Year 5-Year
Istiqrar -4.1% 3.2% 9.7% -4.1% 1.1% 1.9%
Benchmark -1.9% 4.3% 8.3% -1.9% 1.4% 1.6%
Asset Allocation In terms of asset allocation, the fund has invested 24.19% in equity, 50.44% in sukuk and the remaining in money market / cash which is in accordance with its asset allocation strategy. On equity sectoral allocation, Energy was the top sector the fund has invested in with 4.34% exposure. The details of asset allocation and the top 5 investment holdings are given below:-
(5.0)
(4.0)
(3.0)
(2.0)
(1.0)
0.0
1.0
2.0
Retu
rn %
Istiqrar vs Benchmark
Istiqrar Benchmark
50.44%
4.34% 3.61% 3.24% 2.69% 2.51%
Sukuk Energy Healthcare Industrial Products & Services
Utilities Consumer Products & Services
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 15
Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.5% per annum of the Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of sukuk.
Details on Distribution There was no distribution declared for Istiqrar for the period ended 31 December 2018.
Descriptions of any changes in Fund’s Objectives and Strategies There were no material changes in the fund’s objectives and strategies for the period ended 31 December 2018.
50.44%
25.37%
24.19%
Sukuk
Money Market & Cash
Equities
5.24%
5.25%
5.28%
5.38%
5.42%
CIMB Islamic Bank Berhad
National Bank Of Abu Dhabi
Sarawak Energy Berhad
Cerah Sama Sdn Bhd
Ranhill Powertron II Sdn Bhd
Top 5 Investment Holding
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 16
FUND PERFORMANCE REPORT
myEQUITY INDEX FUND Performance Review For the period under review, myEquity Index Fund, has outperformed its benchmark, FBMSI by 569 bps as detailed out below. Additionally, the tracking error was within the parameters set for the fund and its strategy as to closely track its benchmark. For the period, the fund’s tracking error stood at 1.8%.
Total Return (%) Average Annual Return (%)
1-Year 3-Year 5-Year 1-Year 3-Year 5-Year
myEquity Index -7.8% -2.8% 3.2% -7.8% -0.9% 0.6%
Benchmark -13.5% -10.1% -11.8% -13.5% -3.5% -2.5%
Tracking Error 1.8% - - - - -
Note : Tracking error (also called active risk) is a measure of the deviation from the benchmark. It measures how closely a portfolio follows the index to which it is benchmarked. The index fund could have a tracking error close to zero, while an actively managed portfolio would normally have a higher tracking error.
Asset Allocation In terms of asset allocation, the fund has invested 92.47% in equity and the remaining in money market / cash. On equity sectoral allocation, Utilities was the top sector the fund has invested in, which is in line with the Bursa Malaysia FBMSI index component allocation. The details of asset allocation and the top 5 investment holdings are given below:-
0.0
4.0
8.0
12.0
16.0
20.0
(16.0)
(14.0)
(12.0)
(10.0)
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
Retu
rn %
myEquity Index Fund vs Benchmark
myEquity Index Fund (LHS) Benchmark (LHS)
Tracking Error (RHS)
17.57%
14.82% 12.89% 12.00%
10.41% 9.93%
Utilities Telco & Media Consumer Products & Services
Plantation Industrial Products & Services
Healthcare
my
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 17
Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.5% per annum of the equity market value and 1% of the
remaining Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of sukuk.
Details on Distribution There was no distribution declared for myEquity Index Fund for the period ended 31 December 2018.
Descriptions of any changes in Fund’s Objectives and Strategies There were no material changes in fund’s objectives and strategies for the period ended 31 December 2018.
92.47%
7.53%
Equities
Money Market &
Cash
4.29%
4.38%
4.69%
6.87%
13.24%
Digi.Com Bhd
Sime Darby Plantation Berhad
Axiata Group Berhad
Petronas Chemicals Group Bhd
Tenaga Nasional Bhd
Top 5 Investment Holding
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 18
FUND PERFORMANCE REPORT
myGROWTH FUND Performance Review For the financial year ended 31 December 2018, myGrowth Fund recorded performance of a -11.8% loss in tandem with the negative return of its benchmark, FBMSI which recorded a loss of -13.5%.
Total Return (%) Average Annual Return (%)
1-Year 3-Year 5-Year 1-Year 3-Year 5-Year
myGrowth -11.8% -6.8% -3.9% -11.8% -2.3% -0.8%
Benchmark -13.5% -10.1% -11.8% -13.5% -3.5% -2.5%
Asset Allocation In terms of asset allocation, the fund has invested 63.08% in equity and the remaining is in money market / cash. On equity sectoral allocation, Industrial Products & Services was the top sector the fund has invested in with 11.20% exposure. The details of asset allocation and the top 5 investment holdings are given below:-
(16.0)
(14.0)
(12.0)
(10.0)
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
Retu
rn (
%)
myGrowth Fund vs Benchmark
myGrowth Fund Benchmark
11.20% 10.33%
9.37%
8.01% 7.61%
5.38%
Industrial Products & Services
Energy Utilities Healthcare Consumer Products & Services
Plantation
my
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 19
Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.5% per annum of the equity market value and 1% of the
remaining Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of sukuk.
Details on Distribution There was no distribution declared for myGrowth Fund for the period ended 31 December 2018.
Descriptions of any changes in Fund’s Objectives and Strategies There were no material changes in fund’s objectives and strategies for the period ended 31 December 2018.
63.08%
36.92%
Equities
Money Market &
Cash
3.38%
3.51%
3.70%
5.30%
5.77%
Yinson Holdings Bhd
Dialog Group Bhd
Bermaz Auto Bhd
Petronas Chemicals Group Bhd
Tenaga Nasional Bhd
Top 5 Investment Holding
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 20
FUND PERFORMANCE REPORT
myBLUE CHIPS FUND Performance Review For the period under review, myBlueChips Fund performance outperformed its benchmark, FBMSI by 438 bps with a loss of -9.1% against its benchmark’s loss of -13.5% as detailed out below:-
Total Return (%) Average Annual Return (%)
1-Year 3-Year 5-Year 1-Year 3-Year 5-Year
myBlue Chips -9.1% -3.8% -0.7% -9.1% -1.3% -0.1%
Benchmark -13.5% -10.1% -11.8% -13.5% -3.5% -2.5%
Asset Allocation In terms of asset allocation, the fund has invested 63.42% in equity and the remaining in money market / cash. On equity sectoral allocation, Industrial Products & Services was the top sector the fund has invested in as most of the blue chip companies are included in this sector. The details of asset allocation and the top 5 investment holdings are given below:-
(16.0)
(14.0)
(12.0)
(10.0)
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
Retu
rn (
%)
myBlue Chips Fund vs Benchmark
myBlue Chips Fund Benchmark
10.41%
9.39% 9.15%
7.11%
6.03%
5.06%
Industrial Products & Services
Plantation Utilities Consumer Products & Services
Healthcare Telco & Media
my
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 21
Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.5% per annum of the equity market value and 1% of the
remaining Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of sukuk.
Details on Distribution There was no distribution declared for myBlue Chips Fund for the period ended 31 December 2018.
Descriptions of any changes in Fund’s Objectives and Strategies There were no material changes in fund’s objectives and strategies for the period ended 31 December 2018.
63.42%
36.58%
Equities
Money Market &
Cash
3.03%
3.40%
3.63%
5.08%
6.12%
Petronas Gas Bhd
Sime Darby Plantation Berhad
Dialog Group Bhd
Petronas Chemicals Group Bhd
Tenaga Nasional Bhd
Top 5 Investment Holding
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 22
FUND PERFORMANCE REPORT
myDIVIDEND FUND Performance Review For the 12 months ending 31 December 2018, the fund performed in tandem with the negative trend of its benchmark FBMSI which fell -13.5% during the year and the myDividend Fund recorded a loss of -10.7%.
Total Return (%) Average Annual Return (%)
1-Year 3-Year 5-Year 1-Year 3-Year 5-Year
myDividend -10.7% -5.6% -1.2% -10.7% -1.9% -0.2%
Benchmark -13.5% -10.1% -11.8% -13.5% -3.5% -2.5%
Asset Allocation In terms of asset allocation, the fund has invested 54.54% in equity and the remaining is in money market/cash. On equity sectoral allocation, Industrial Products & Services was the top sector the fund invested in with 10.21% allocation. The details of asset allocation and the top 5 investment holdings are shown below:-
(16.0)
(14.0)
(12.0)
(10.0)
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
Retu
rn (
%)
myDividend Fund vs Benchmark
myDividend Fund Benchmark
10.21%
8.65% 7.60%
6.48%
4.90% 4.09%
Industrial Products & Services
Utilities Consumer Products & Services
Property Energy Plantation
my
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 23
Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.5% per annum of the equity market value and 1% of the
remaining Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of sukuk.
Details on Distribution There was no distribution declared for myDividend Fund for the period ended 31 December 2018.
Descriptions of any changes in Fund’s Objectives and Strategies There were no material changes in fund’s objectives and strategies for the period ended 31 December 2018.
54.54%
45.46%
Equities
Money Market &
Cash
2.92%
3.45%
3.62%
5.17%
5.21%
IHH Healthcare Bhd
Dialog Group Bhd
Bermaz Auto Bhd
Tenaga Nasional Bhd
Petronas Chemicals Group Bhd
Top 5 Investment Holding
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 24
FUND PERFORMANCE REPORT
myBALANCED FUND Performance Review For the financial year ended 31 December 2018, myBalanced Fund recorded a negative return of -2.0% outperforming its blended benchmark of 40% FBMSI and 60% 12-Month Maybank GIA rate which recorded a loss of -3.3%.
Total Return (%) Average Annual Return (%)
1-Year 3-Year 5-Year 1-Year 3-Year 5-Year
myBalanced -2.0% 5.8% 11.7% -2.0% 1.9% 2.2%
Benchmark -3.3% 2.7% 6.1% -3.3% 0.9% 1.2%
Asset Allocation As at 31 December 2018, the majority of the fund’s asset allocation is towards sukuk in line with its stated asset allocation mandate to invest up to 60% in sukuk. The fund had invested 58.80% in sukuk and remaining in equity (23.24%) and money market/cash (17.96%). The details of asset allocation and the top 5 investment holdings are given below:-
(4.0)
(3.0)
(2.0)
(1.0)
0.0
1.0
2.0
Retr
un
(%
)
myBalanced Fund vs Benchmark
myBalanced Fund Benchmark
58.80%
4.13% 3.97% 3.81% 2.81% 2.23%
Sukuk Energy Healthcare Industrial Product & Services
Consumer Products & Services
Utilities
my
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 25
Fees / Charges levied to the fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.2% per annum of the Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of sukuk.
Details on Distribution There was no distribution declared for myBalanced Fund for the period ended 31 December 2018.
Descriptions of any changes in Fund’s Objectives and Strategies There were no material changes in fund’s objectives and strategies for the period ended 31 December 2018.
58.80%
23.24%
17.96%
Sukuk
Money Market & Cash
Equities
4.65%
4.76%
4.80%
4.82%
5.04%
Malakoff Power Berhad
Bank Islam Malaysia Berhad
MMC Corporation Berhad
Tenaga Nasional Berhad
Jimah East Power Sdn Bhd
Top 5 Investment Holding
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 26
SOFT COMMISSION RECEIVED FROM BROKERS
Soft commissions received from brokers may be retained by the Company on behalf of the funds; provided that the services rendered are related to the management of the investment-linked funds and of demonstrable benefit to certificate owners as per the requirements of Clause 6.2 of the Guidelines on Investment-Linked Insurance / Takaful Business. During the financial year under review, the management company had received on behalf of the funds, soft commissions in the form of research materials and investment related publications which are incidental to the investment management of the funds. Meanwhile, all dealings with brokers are executed at competitive market rates.
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 27
STATEMENT BY DIRECTORS
In the opinion of the Directors of Manager, the Takaful Investment-Linked Funds (“Funds’’) financial statements set out
on pages 30 to 40, comprising the Statements of Assets and Liabilities as at 31 December 2018 and the related
Statements of Income and Expenditure, Changes in Net Asset Value and cash flow of the Funds for the financial year
ended 31 December 2018 together with the notes thereto, have been drawn up in accordance with the Guidelines on
Investment-Linked Insurance / Takaful Business issued by Bank Negara Malaysia and give true and fair view of the
financial position of the Funds as at 31 December 2018 and their financial performance and the movements in the
Statements of Changes in Net Assets attributable to the unitholders of the Funds for year ended on that date.
Signed in accordance with a resolution of the Directors: ………………………………………………………… Tan Sri Dato' Ahmad Fuzi Haji Abdul Razak ………………………………………………………… Encik Mahadzir Azizan Kuala Lumpur, Date: 25 April 2019
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 28
INDEPENDENT AUDITORS’ REPORT to the unitholders of Syarikat Takaful Malaysia Keluarga Berhad’s Investment-Linked funds (Company No. 131646-K) (Incorporated in Malaysia)
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Investment-Linked Funds of Syarikat Takaful Malaysia Keluarga Berhad, which comprise the Statements of Assets and Liabilities as at 31 December 2018, the Statements of Income and Expenditure, the Statements of Changes in Net Asset Value and Cash Flow Statements for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 30 to 40. In our opinion, the accompanying financial statements for the year ended 31 December 2018 are prepared, in all material respects, in accordance with the accounting policies set out in Note 1 to the financial statements and the Guidelines on Investment-Linked Insurance/Takaful Business (BNM/RH/GL 010-15). Basis for Opinion We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our auditors’ report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence and Other Ethical Responsibilities We are independent of the Investment-Linked Funds in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code. Information Other than the Financial Statements and Auditors’ Report Thereon The Directors of the Manager (“Directors”) are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements of the Investment-Linked Funds and our auditors’ report thereon. Our opinion on the financial statements of the Investment-Linked Funds does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements of the Investment-Linked Funds, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent with the financial
statements of the Investment-Linked Funds or our knowledge obtained in the audit, or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of the
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Statements The Directors are responsible for the preparation of the financial statements in accordance with the accounting policies set out in Note 1 to the financial statements and the Guidelines on Investment-Linked Insurance/Takaful Business (BNM/RH/GL 010-15). The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Investment-Linked Funds, the Directors are responsible for assessing the ability of the Investment-Linked Funds to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Investment-Linked Funds or to cease operations, or have no realistic alternative but to do so.
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 29
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Investment-Linked Funds.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Investment-Linked Funds to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements of the Investment-Linked Funds or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Investment-Linked Funds to cease to continue as a going concern.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Other Matter This report is made solely to the unitholders of Investment-Linked Funds of Syarikat Takaful Malaysia Keluarga Berhad, as a body, and for no other purpose. We do not assume responsibility to any other person for the content of this report. KPMG Desa Megat PLT (LLP0010082-LCA & AF 0759) Chartered Accountants 25 April 2019
Petaling Jaya
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 30
STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2018
ITTIZAN
ISTIQRAR
myEQUITY
INDEX
myGROWTH
myBLUE
CHIPS
myDIVIDEND
myBALANCED
Note RM RM RM RM RM RM RM
ASSETS
Sukuk
2
2,090,100 3,897,659 - - - - 12,570,096
Quoted Shares 3 4,626,658 1,869,408 30,237,577 6,122,162 5,215,859 5,843,051 4,967,565
Unit Trusts
4 - - - - 84,260 - -
Other Assets 454,481 117,732 2,027,282 450,198 227,315 832,473 411,351
Deposits with
Financial
Institutions
2,505,000
1,983,000
2,463,000
3,405,000
3,069,500
4,391,500
3,849,000
Cash and Cash
Equivalents
290
245
281
500
233
544
251
9,676,529 7,868,044 34,728,140 9,977,860 8,597,167 11,067,568 21,798,263
LIABILITIES
Other Liabilities 217,489 141,271 2,027,747 272,684 240,311 354,181 421,004
217,489 141,271 2,027,747 272,684 240,311 354,181 421,004
Net Asset Value 9,459,040 7,726,773 32,700,393 9,705,176 8,356,856 10,713,387 21,377,259
REPRESENTED
BY
Certificate
Holders Capital
5,547,206
5,922,038
30,732,191
9,379,619
7,578,991
9,935,449
20,136,988
Accumulated
Income Carried
Forward
3,911,834
1,804,735
1,968,202
325,557
777,865
777,938
1,240,271
9,459,040 7,726,773 32,700,393 9,705,176 8,356,856 10,713,387 21,377,259
Number of Units
5,521,031 5,369,889 19,681,344 7,897,059 6,464,041 7,901,669 17,208,878
Net Asset Value
Per Unit
1.7133
1.4389
1.6615
1.2290
1.2928
1.3558
1.2422
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 31
STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2017
ITTIZAN
ISTIQRAR
myEQUITY
INDEX
myGROWTH
myBLUE
CHIPS
myDIVIDEND
myBALANCED
Note RM RM RM RM RM RM RM
ASSETS
Sukuk
2 2,332,678 4,134,215 - - - - 12,525,407
Quoted Shares 3 7,555,689 2,073,170 29,666,505 6,986,148 6,499,115 7,609,033 2,550,058
Other Assets 30,136 75,678 1,354,182 527,651 408,420 598,905 547,493
Deposits with
Financial
Institutions
1,323,000
2,112,000
2,737,000
3,016,000
2,152,000
3,366,000
7,404,000
Cash and Cash
Equivalents
36,698
27,524
163,729
28,846
25,236
31,205
36,277
11,278,201 8,422,587 33,921,416 10,558,645 9,084,771 11,605,143 23,063,235
LIABILITIES
Other Liabilities 156,126 134,265 2,478,013 326,476 269,330 393,484 766,068
156,126 134,265 2,478,013 326,476 269,330 393,484 766,068
Net Asset Value 11,122,075 8,288,322 31,443,403 10,232,169 8,815,441 11,211,659 22,297,167
REPRESENTED
BY
Certificate
Holders Capital
6,025,882
6,151,229
26,814,132
8,654,352
7,213,518
9,179,832
20,635,316
Accumulated
Income Carried
Forward
5,096,193
2,137,093
4,629,271
1,577,817
1,601,923
2,031,827
1,661,851
11,122,075 8,288,322 31,443,403 10,232,169 8,815,441 11,211,659 22,297,167
Number of Units
5,784,579 5,525,170 17,453,696 7,340,772 6,193,344 7,383,067 17,600,353
Net Asset Value
Per Unit
1.9227
1.5001
1.8015
1.3939
1.4234
1.5186
1.2669
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 32
STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2018
ITTIZAN
ISTIQRAR
myEQUITY
INDEX
myGROWTH
myBLUE
CHIPS
myDIVIDEND
myBALANCED
RM RM RM RM RM RM RM
Income
Gross Dividend Income 193,109 62,046 837,073 195,680 166,261 220,165 106,735
Profit Income:
Sukuk 105,629 188,678 - - - - 633,213
Islamic Investment
Deposits with
Financial
Institutions
48,706
62,599
70,942
109,097
88,128
127,562
186,599
Other Income 81,630 11,622 185,339 93,405 58,903 92,966 9,759
429,074 324,945 1,093,354 398,182 313,292 440,693 936,306
Outgo
Fees (158,559) (122,292) (473,842) (135,115) (116,121) (146,656) (266,985)
Loss on Disposal:
Quoted Shares (1,294,701) (498,878) (644,596) (720,580) (337,581) (751,238) (705,462)
Unrealised Capital Loss (160,173) (36,133) (2,635,985) (794,747) (683,648) (796,688) (385,439)
(1,613,433) (657,303) (3,754,423) (1,650,442) (1,137,350) (1,694,582) (1,357,886)
Excess of Outgo over
Income
(1,184,359)
(332,358)
(2,661,069)
(1,252,260)
(824,058)
(1,253,889)
(421,580)
Undistributed Income
brought forward
5,096,193
2,137,093
4,629,271
1,577,817
1,601,923
2,031,827
1,661,851
Amount Available for
Distribution
3,911,834
1,804,735
1,968,202
325,557
777,865
777,938
1,240,271
Undistributed Income
carried forward
3,911,834
1,804,735
1,968,202
325,557
777,865
777,938
1,240,271
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 33
STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL PERIOD ENDED 31 DECEMBER 2017
ITTIZAN
ISTIQRAR
myEQUITY
INDEX
myGROWTH
myBLUE
CHIPS
myDIVIDEND
myBALANCED
RM RM RM RM RM RM RM
Income
Gross Dividend Income 200,749 55,379 735,282 194,953 183,176 212,115 70,842
Profit Income:
Sukuk 131,301 252,276 - - - - 594,206
Islamic Investment
Deposits with
Financial
Institutions
30,695
40,818
52,065
76,498
58,199
87,703
222,637
Unrealised Capital Gain 681,587 266,480 2,625,859 633,476 584,459 700,547 342,796
Other Income 400 800 - - - - 875
1,044,732 615,753 3,413,206 904,927 825,834 1,000,365 1,231,356
Outgo
Fees (164,813) (123,661) (409,144) (127,595) (114,997) (140,513) (264,553)
Loss on Disposal:
Quoted Shares (103,235) (26,044) (257,394) (84,597) (65,946) (85,568) (68,376)
Sukuk (37,760) (79,680) - - - - (58,200)
Other Outgo (73,854) (41,941) (257,146) (68,829) (64,090) (76,582) (90,207)
(379,662) (271,326) (923,684) (281,021) (245,033) (302,663) (481,336)
Excess of Income over
Outgo
665,070
344,427
2,489,522
623,906
580,801
697,702
750,020
Undistributed Income
brought forward
4,431,123
1,792,666
2,139,749
953,911
1,021,122
1,334,125
911,831
Amount Available for
Distribution
5,096,193
2,137,093
4,629,271
1,577,817
1,601,923
2,031,827
1,661,851
Undistributed Income
carried forward
5,096,193
2,137,093
4,629,271
1,577,817
1,601,923
2,031,827
1,661,851
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 34
STATEMENTS OF CHANGES IN NET ASSET VALUE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2018
ITTIZAN
ISTIQRAR
myEQUITY INDEX
myGROWTH
myBLUE
CHIPS
myDIVIDEND
myBALANCED
RM RM RM RM RM RM RM
Net Asset Value at the
Beginning of the
Financial Year
11,122,075
8,288,322
31,443,403
10,232,169
8,815,441
11,211,659
22,297,167
Amount Received from
Units Creation
15,129
6,579
6,682,018
1,351,272
878,885
1,596,953
1,217,307
Amount Paid from
Units Cancellation
(493,805)
(235,770)
(2,763,959)
(626,005)
(513,412)
(841,336)
(1,715,635)
Net Outgo (1,184,359) (332,358) (2,661,069) (1,252,260) (824,058) (1,253,889) (421,580)
Net Asset Value at the
End of Financial Year
9,459,040
7,726,773
32,700,393
9,705,176
8,356,856
10,713,387
21,377,259
STATEMENTS OF CHANGES IN NET ASSET VALUE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2017
ITTIZAN
ISTIQRAR
myEQUITY INDEX
myGROWTH
myBLUE
CHIPS
myDIVIDEND
myBALANCED
RM RM RM RM RM RM RM
Net Asset Value at the
Beginning of the
Financial Year
10,740,005
8,207,842
24,713,653
8,564,487
7,848,172
9,525,116
22,172,878
Amount Received from
Units Creation
11,064
-
7,193,254
1,531,487
990,417
1,766,091
1,384,522
Amount Paid from
Units Cancellation
(294,064)
(263,947)
(2,953,026)
(487,711)
(603,949)
(777,250)
(2,010,253)
Net Income 665,070 344,427 2,489,522 623,906 580,801 697,702 750,020
Net Asset Value at the
End of Financial Year
11,122,075
8,288,322
31,443,403
10,232,169
8,815,441
11,211,659
22,297,167
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 35
CASH FLOW STATEMENTS FOR FINANCIAL YEAR ENDED 31 DECEMBER 2018
ITTIZAN
ISTIQRAR
myEQUITY
INDEX
myGROWTH
myBLUE
CHIPS
myDIVIDEND
myBALANCED
2018 RM RM RM RM RM RM RM
Cash Flow from
Operating Activities
Outgo Before Taxation (1,184,359) (332,358) (2,661,069) (1,252,260) (824,058) (1,253,889) (421,580)
Adjustment for:
Profit Income
(154,335) (251,277) (70,942) (109,097) (88,128) (127,562) (819,812)
Gross Dividend
Income
(193,109)
(62,046)
(837,073)
(195,680)
(166,261)
(220,165)
(106,735)
Loss on Disposal 1,294,701 498,878 644,596 720,580 337,581 751,238 705,462
Unrealised Capital Loss 160,173 36,133 2,635,985 794,747 683,648 796,688 385,439
Outgo from Operations
Before Changes in
Operating Assets and
Liabilities
(76,929)
(110,670)
(288,503)
(41,710)
(57,218)
(53,690)
(257,226)
Proceeds from Disposal of
Investment
2,366,441
1,206,743
2,112,436
2,157,554
886,582
2,053,960
1,193,610
Purchase of Investment (1,831,706) (1,172,436) (5,690,089) (3,197,895) (1,626,315) (2,861,404) (1,191,707)
(Increase) / Decrease in
Other Assets
(424,345)
(42,054)
(673,100)
77,453
181,105
(233,568)
136,142
Increase / (Decrease) in
Other Liabilities
61,363
7,006
(450,266)
(53,792)
(29,019)
(39,303)
(345,064)
Cash generated / (used)
in Operations
94,824
(111,411)
(4,989,522)
(1,058,390)
(644,865)
(1,134,005)
(464,245)
Profit Income Received 154,335 251,277 70,942 109,097 88,128 127,562 819,812
Gross Dividend Income
Received
193,109
62,046
837,073
195,680
166,261
220,165
106,735
Net Cash generated from
/ (used in) Operating
Activities
442,268
201,912
(4,081,507)
(753,613)
(390,476)
(786,278)
462,302
Cash Flow from
Financing Activities
Proceeds from Creations
of Units
15,129
6,579
6,682,018
1,351,272
878,885
1,596,953
1,217,307
Payment for Cancellation
of Units
(493,805)
(235,770)
(2,763,959)
(626,005)
(513,412)
(841,336)
(1,715,635)
Net Cash (used in) /
generated from
Financing Activities
(478,676)
(229,191)
3,918,059
725,267
365,473
755,617
(498,328)
Net Decrease in Cash
and Cash Equivalents
(36,408)
(27,279)
(163,448)
(28,346)
(25,003)
(30,661)
(36,026)
Cash and Cash
Equivalents at 1
January 2018
36,698
27,524
163,729
28,846
25,236
31,205
36,277
Cash and Cash
Equivalents at 31
December 2018
290
245
281
500
233
544
251
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 36
CASH FLOW STATEMENTS FOR FINANCIAL YEAR ENDED 31 DECEMBER 2017
ITTIZAN
ISTIQRAR
myEQUITY
INDEX
myGROWTH
myBLUE
CHIPS
myDIVIDEND
myBALANCED
2017 RM RM RM RM RM RM RM
Cash Flow from
Operating Activities
Income Before Taxation 665,070 344,427 2,489,522 623,906 580,801 697,702 750,020
Adjustment for:
Profit Income
(161,996) (293,094) (52,065) (76,498) (58,199) (87,703) (816,843)
Gross Dividend
Income
(200,749)
(55,379)
(735,282)
(194,953)
(183,176)
(212,115)
(70,842)
Profit on Disposal 140,995 105,724 257,394 84,597 65,946 85,568 126,576
Unrealised Capital Gain (681,587) (266,480) (2,625,859) (633,476) (584,459) (700,547) (342,796)
Outgo from Operations
Before Changes in
Operating Assets and
Liabilities
(238,267)
(164,802)
(666,290)
(196,424)
(179,087)
(217,095)
(353,885)
Proceeds from Disposal of
Investment
604,142
939,210
1,993,646
2,205,932
2,063,554
2,431,548
2,366,087
Purchase of Investment (481,384) (892,682) (7,441,693) (3,117,002) (2,343,337) (3,312,302) (2,229,566)
Decrease / (Increase) in
Other Assets
63,890
42,664
750,494
(191,425)
(171,803)
(201,193)
(63,537)
(Decrease) / Increase in
Other Liabilities
(5,601)
17,894
428,339
(568)
15,349
27,143
49,867
Cash used in Operations
(57,220)
(57,716)
(4,935,504)
(1,299,487)
(615,324)
(1,271,899)
(231,034)
Profit Income Received 161,996 293,094 52,065 76,498 58,199 87,703 816,843
Gross Dividend Income
Received
200,749
55,379
735,282
194,953
183,176
212,115
70,842
Net Cash generated from
/ (used in) Operating
Activities
305,525
290,757
(4,148,157)
(1,028,036)
(373,949)
(972,081)
656,651
Cash Flow from
Financing Activities
Proceeds from Creations
of Units
11,064
-
7,193,254
1,531,487
990,417
1,766,091
1,384,522
Payment for Cancellation
of Units
(294,064)
(263,947)
(2,953,026)
(487,711)
(603,949)
(777,250)
(2,010,253)
Net Cash (used in) /
generated from
Financing Activities
(283,000)
(263,947)
4,240,228
1,043,776
386,468
988,841
(625,731)
Net Increase in Cash and
Cash Equivalents
22,525
26,810
92,071
15,740
12,519
16,760
30,920
Cash and Cash
Equivalents at 1
January 2017
14,173
714
71,658
13,106
12,717
14,445
5,357
Cash and Cash
Equivalents at 31
December 2017
36,698
27,524
163,729
28,846
25,236
31,205
36,277
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 37
NOTES TO THE FINANCIAL STATEMENTS
The Manager and its principal activities The Manager is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities Berhad. The address of its registered office and principal place of business of the Company is located at: 26
th Floor, Annexe Block
Menara Takaful Malaysia No.4, Jalan Sultan Sulaiman 50000 Kuala Lumpur The Manager is principally engaged in managing family and general takaful businesses. The family takaful business includes investment-linked products. The financial statements were approved by the Board of Directors of the Manager on 25 April 2019. 1. Summary of significant accounting policies
The accounting policies set out below have been applied consistently to periods presented in these financial statements, unless otherwise stated.
(a) Basis of accounting
The financial statements have been prepared in accordance with the notes set out in Note 1, the Guidelines on Investment-Linked Insurance/Takaful Business (issued by Bank Negara Malaysia) and the requirements of the certificate document.
(b) Functional and presentation currency
These financial statements are presented in Ringgit Malaysia (RM), which is the Funds’ functional currency.
(c) Investments
Quoted shares, which are Shariah approved, are stated at the closing market prices as at the date of the statement of assets and liabilities. Sukuk are valued at cost adjusted for amortisation of premiums or accretion of discounts over their par values at the time of acquisition using the effective yield method. The carrying value is subsequently revalued to reflect their fair values by using price quoted by Bond Pricing Agency Malaysia. Any increase or decrease in value of investments at each reporting date is taken into Statement of Income and Expenditure.
(d) Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand and bank balances.
(e) Net Creation of Units Net creation of units represents contributions paid by participants as payment for new certificate/top up for existing certificate. Net creation of units is recognized on a receipt basis.
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 38
(f) Net Cancellation of Units
Net cancellation of units represents cancellation of units arising from the surrenders and withdrawals by participant. Net cancellation of units is recognized upon surrendering of/withdrawal from the related takaful certificates.
.
(g) Income Recognition Dividend income is recognized when the right to receive payment is established. Profit income is recognized on time proportion basis that takes into account the effective yield of the asset. Gain or loss of disposal of quoted shares and sukuk are credited or charged to the Statement of Income and Expenditure.
(h) Investment management fees
Investment management fees are calculated in accordance with the provisions of the certificate document.
2. Sukuk
31 December 2018 RM
31 December 2017 RM
(i) Ittizan
Cost 2,118,031 2,373,936
Unrealised capital loss (27,931) (41,258)
Market value 2,090,100 2,332,678
(ii) Istiqrar
Cost 3,955,627 4,213,412
Unrealised capital loss (57,968) (79,197)
Market value 3,897,659 4,134,215
(iii) myBalanced
Cost 12,484,590 12,482,980
Unrealised capital gain 85,506 42,427
Market value 12,570,096 12,525,407
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 39
3. Quoted shares
31 December 2018
RM
31 December 2017
RM
(i) Ittizan
Cost 4,771,748 7,527,279
Unrealised capital (loss) / gain (145,090) 28,410
Market value 4,626,658 7,555,689
(ii) Istiqrar
Cost 1,886,210 2,032,610
Unrealised capital (loss) / gain (16,802) 40,560
Market value 1,869,408 2,073,170
(iii) myEquity Index
Cost 31,396,565 28,189,508
Unrealised capital (loss) / gain (1,158,988) 1,476,997
Market value 30,237,577 29,666,505
(iv) myGrowth
Cost 6,561,256 6,630,495
Unrealised capital (loss) / gain (439,094) 355,653
Market value 6,122,162 6,986,148
(v) myBlue Chips
Cost 5,558,954 6,159,485
Unrealised capital (loss) / gain (343,095) 339,630
Market value 5,215,859 6,499,115
(vi) myDividend
Cost 6,220,487 7,189,781
Unrealised capital (loss) / gain (377,436) 419,252
Market value 5,843,051 7,609,033
(vii) myBalanced
Cost 5,329,226 2,483,201
Unrealised capital (loss) / gain (361,661) 66,857
Market value 4,967,565 2,550,058
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 40
4. Unit Trusts
31 December 2018 RM
31 December 2017 RM
(i) myBlue Chips
Cost 85,183 -
Unrealised capital loss (923) -
Market value 84,260 -
5. Financial Instruments The Funds are exposed to market, credit, liquidity and profit rate risks.
Market risk Market risk arises when the value of securities fluctuates in response to the activities of the individual companies, general market or economic conditions. The market risk is managed through portfolio diversification and asset allocation whereby the securities exposure will be reduced in the event of anticipated market weakness. Credit risk Credit risk refers to the ability of an issuer or a counterparty to make timely profit and principal payments. The maximum exposure to credit risk is represented by the carrying amount of each financial asset as disclosed in the Statement of Assets and Liabilities.
Liquidity risk
This may come about when realisation of units is required in excess of normal amounts. The extent of exposure to the risk is contained in provisions set out in the prospectus.
Profit rate risk When the profit rate rises, Sukuk prices fall and vice versa. The market risk is monitored through periodic reviews of its asset and liability positions with the objective to limit the net changes in the value of assets and liabilities arising from profit rate movements. Shariah risk Shariah risk arises when transaction entered by Islamic Financial Institution (IFI) are declared impermissible. Any profit sourced from shariah non-compliance activities shall be cleansed in order to retain compliance and it also will impact the reputation of IFI.
Fair values The fair values of investments have been disclosed in notes 2 and 3. The basis of deriving the fair values is disclosed in Note 1(c).
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 41
DETAILS OF INVESTMENTS
ITTIZAN
Security Name Number of
Units Total Cost Market Value
% of NAV
Construction
Gamuda Bhd 47,300 230,962 110,682 1.17
Muhibbah Engineering (M) Bhd 73,000 177,363 203,670 2.15
Consumer
Bermaz Auto Bhd 93,200 212,505 200,380 2.12
Sime Darby Berhad 94,452 197,817 226,685 2.39
Energy
Dialog Group Bhd 86,664 146,699 269,525 2.85
Hibiscus Petroleum Bhd 161,000 147,359 135,240 1.43
Serba Dinamik Holdings Berhad 37,000 130,984 139,860 1.48
Yinson Holdings Bhd 24,000 106,457 100,800 1.07
Health Care
IHH Healthcare Bhd 42,000 250,084 226,380 2.39
KPJ Healthcare Berhad 130,000 142,804 135,200 1.43
Supermax Corp Bhd 34,000 139,341 118,320 1.25
Top Glove Corp Bhd 46,000 144,531 257,600 2.72
Industrial Products
Cypark Resources Bhd 67,050 98,417 105,939 1.12
Pestech International Bhd 63,300 97,487 62,667 0.66
Petronas Chemicals Group Bhd 33,000 218,540 306,570 3.24
V.S. Industry Berhad 63,000 106,111 45,990 0.49
Plantation
Genting Plantations Bhd 30,000 318,946 295,800 3.13
Sime Darby Plantation Berhad 13,452 76,823 64,032 0.68
Sarawak Oil Palms Bhd 44,700 211,689 93,870 0.99
Property
LBS Bina Group Bhd 95,000 86,259 60,800 0.64
SP Setia Bhd 30,800 102,993 71,764 0.76
Technology
Globetronics Technology Bhd 109,333 279,360 191,333 2.02
Inari Amertron Bhd 189,000 184,281 283,500 3.00
Telecommunications & Media
Axiata Group Berhad 51,994 274,355 204,336 2.16
Utilities
Gas Malaysia Bhd 36,400 106,455 103,012 1.09
Petronas Gas Bhd 8,900 196,626 170,880 1.81
Tenaga Nasional Bhd 32,487 386,500 441,823 4.67
Total Malaysian Equities 1,737,032 4,771,748 4,626,658 48.91
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 42
Security Name Number of
Units Total Cost Market Value
% of NAV
Sukuk
Electric/Power Generation
Kapar Energy Ventures Sdn Bhd 200,000 204,800 202,176 2.14
Malakoff Power Berhad 200,000 207,240 220,730 2.33
TNB Northern Energy 200,000 200,000 196,026 2.07
Financial Services
CIMB Islamic Bank Berhad 200,000 219,540 202,350 2.14
National Bank Of Abu Dhabi 200,000 204,000 202,850 2.14
Ranhill Powertron II Sdn Bhd 200,000 220,080 209,582 2.22
Oil & Gas
Alam Maritim Resources Bhd 200,000 200,000 200,000 2.11
Telecommunications & Media
BGSM Management Sdn Bhd 239,999 263,231 245,574 2.60
Transportation & Toll Roads
Cerah Sama Sdn Bhd 200,000 197,000 207,712 2.20
Projek Lebuhraya Usahasama Berhad 200,000 202,140 203,100 2.15
Total Malaysian Sukuk 2,039,999 2,118,031 2,090,100 22.10
Total Malaysian Equities & Sukuk 3,777,031 6,889,779 6,716,758 71.01
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 43
ISTIQRAR
Security Name Number of
Units Total Cost Market Value
% of NAV
Construction
Gamuda Bhd 14,000 71,891 32,760 0.42
Muhibbah Engineering(M) Bhd 31,600 81,417 88,164 1.14
Consumer Products & Service
Bermaz Auto Bhd 42,600 96,461 91,590 1.19
Sime Darby Berhad 42,451 95,459 101,882 1.32
Energy
Dialog Group Bhd 32,608 67,467 101,411 1.31
Hibiscus Petroleum Bhd 98,000 89,030 82,320 1.07
Serba Dinamik Holdings Berhad 29,000 102,425 109,620 1.42
Yinson Holdings Bhd 10,000 42,743 42,000 0.54
Health Care
IHH Healthcare Bhd 12,000 71,404 64,680 0.84
KPJ Healthcare Berhad 58,000 63,722 60,320 0.78
Supermax Corp Bhd 25,000 103,227 87,000 1.12
Top Glove Corp Bhd 12,000 44,077 67,200 0.87
Industrial Products & Services
Cypark Resources Bhd 50,250 73,742 79,395 1.03
Pestech International Bhd 50,800 78,231 50,292 0.65
Petronas Chemicals Group Bhd 13,000 86,004 120,770 1.56
Plantation
Genting Plantations Bhd 9,000 96,109 88,740 1.15
Property
LBS Bina Group Bhd 104,600 95,344 66,944 0.87
Matrix Concepts Holdings Bhd 40,000 81,333 75,200 0.97
Technology
Globetronics Technology Bhd 39,000 99,727 68,250 0.88
Inari Amertron Bhd 64,500 62,130 96,750 1.25
Telecommunications & Media
Axiata Group Berhad 22,000 95,014 86,460 1.12
Utilities
Petronas Gas Bhd 1,200 25,962 23,040 0.30
Tenaga Nasional Bhd 13,575 163,291 184,620 2.39
Total Malaysian Equities 815,184 1,886,210 1,869,408 24.19
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 44
Security Name Number of
Units Total Cost Market Value
% of NAV
Sukuk
Electric/Power Generation
Kapar Energy Ventures Sdn Bhd 400,000 409,600 404,352 5.23
Malakoff Power Berhad 300,000 310,860 331,095 4.29
Sarawak Energy Berhad 400,000 413,920 407,972 5.28
TNB Northern Energy 400,000 400,000 392,052 5.07
Oil & Gas
Alam Maritim Resources Bhd 400,000 400,000 400,000 5.17
Financial Services
CIMB Islamic Bank Berhad 400,000 439,080 404,700 5.24
National Bank Of Abu Dhabi 400,000 408,000 405,700 5.25
Ranhill Powertron II Sdn Bhd 400,000 440,160 419,164 5.42
Telecommunications & Media
BGSM Management Sdn Bhd 309,999 340,007 317,200 4.11
Transportation & Toll Roads
Cerah Sama Sdn Bhd 400,000 394,000 415,424 5.38
Total Malaysian Sukuk 3,809,999 3,955,627 3,897,659 50.44
Total Malaysian Equities & Sukuk 4,625,183 5,841,837 5,767,067 74.63
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 45
myEQUITY Index
Security Name Number of
Units Total Cost Market Value
% of NAV
Construction
Gamuda Bhd 185,400 895,356 433,836 1.33
IJM Corp Bhd 275,000 885,429 445,500 1.36
Consumer Products & Services
Fraser & Neave Holdings Bhd 8,000 197,612 268,000 0.82
Nestle (Malaysia) Berhad 5,000 535,501 737,000 2.25
Padini Holdings Berhad 29,000 171,666 101,790 0.31
Petronas Dagangan Bhd 25,000 582,613 662,500 2.02
PPB Group Berhad 57,320 776,505 1,007,686 3.08
QL Resources Bhd 59,000 355,659 401,790 1.23
Sime Darby Berhad 304,714 597,227 731,314 2.24
UMW Holdings Bhd 56,000 309,683 306,320 0.94
Energy
Dialog Group Bhd 391,984 737,063 1,219,070 3.73
Sapura Energy RCPSI Rights 148,800 - - 0.00
Sapura Energy Rights Issue 620,000 - - 0.00
Sapura Energy Bhd 372,000 686,736 107,880 0.33
Serba Dinamik Holdings Berhad 45,000 172,469 170,100 0.52
Yinson Holdings Bhd 38,000 166,914 159,600 0.49
Health Care
Hartalega Holdings Bhd 125,000 519,028 767,500 2.35
IHH Healthcare Bhd 237,000 1,414,896 1,277,430 3.91
Kossan Rubber Industries 52,000 214,190 225,680 0.69
KPJ Healthcare Berhad 185,800 178,971 193,232 0.59
Top Glove Corp Bhd 140,000 395,962 784,000 2.39
Industrial Products & Services
Lotte Chemical Titan Holding Berhad 45,200 237,075 208,824 0.64
Petronas Chemicals Group Bhd 241,700 1,653,702 2,245,393 6.87
Press Metal Aluminium Holdings Berhad 159,600 346,845 770,868 2.36
Sunway Bhd 120,816 178,988 177,600 0.54
Plantation
Genting Plantations Bhd 28,500 301,095 281,010 0.86
IOI Corporation Berhad 272,300 1,230,189 1,211,735 3.71
Kuala Lumpur Kepong Bhd 40,400 941,142 998,688 3.05
Sime Darby Plantation Berhad 300,714 1,651,716 1,431,399 4.38
Property
IOI Properties Group Bhd 149,875 298,331 230,808 0.71
Sime Darby Property Berhad 283,714 412,007 282,295 0.86
SP Setia Bhd 101,800 340,409 237,194 0.73
Technology
Inari Amertron Bhd 181,750 230,609 272,625 0.83
MYEG Services Bhd 171,500 211,904 167,213 0.51
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 46
Security Name Number of
Units Total Cost Market Value
% of NAV
Telecommunications & Media
Axiata Group Berhad 390,133 2,198,095 1,533,222 4.69
Digi.Com Bhd 312,000 1,419,204 1,404,000 4.29
Maxis Bhd 233,500 1,474,917 1,249,224 3.82
Telekom Malaysia Bhd 169,271 1,033,342 450,261 1.38
Time Dotcom Bhd 26,000 194,056 210,600 0.64
Transportation & Logistics
MISC Bhd 122,500 935,082 820,750 2.51
Westports Holdings Bhd 85,000 350,090 307,700 0.94
Utilities
Malakoff Corp Bhd 184,500 285,720 147,600 0.45
Petronas Gas Bhd 66,100 1,407,300 1,269,120 3.88
Tenaga Nasional Bhd 318,325 4,271,267 4,329,220 13.24
Total Malaysian Equities 7,365,216 31,396,565 30,237,577 92.47
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 47
myGROWTH
Security Name Number of
Units Total Cost Market Value
% of NAV
Construction
Gamuda Bhd 62,300 308,282 145,782 1.50
IJM Corp Bhd 75,300 254,104 121,986 1.26
Muhibbah Engineering (M) Bhd 38,000 101,727 106,020 1.09
Consumer Products & Services
Bermaz Auto Bhd 167,100 375,981 359,265 3.70
Petronas Dagangan Bhd 3,900 94,947 103,350 1.06
Sime Darby Berhad 115,347 256,057 276,833 2.85
Energy
Dialog Group Bhd 109,512 210,343 340,582 3.51
Hibiscus Petroleum Bhd 177,000 162,530 148,680 1.53
Serba Dinamik Holdings Berhad 49,000 178,454 185,220 1.91
Yinson Holdings Bhd 78,000 357,053 327,600 3.38
Health Care
IHH Healthcare Bhd 53,000 301,490 285,670 2.94
KPJ Healthcare Berhad 117,200 118,597 121,888 1.25
Supermax Corp Bhd 71,000 295,164 247,080 2.55
Top Glove Corp Bhd 22,000 76,991 123,200 1.27
Industrial Products & Services
Cypark Resources Bhd 77,850 112,070 123,003 1.28
Lotte Chemical Titan Holding Berhad 48,000 256,392 221,760 2.28
Pestech International Bhd 150,200 235,282 148,698 1.53
Petronas Chemicals Group Bhd 55,400 382,411 514,666 5.30
V.S. Industry Berhad 107,750 171,818 78,658 0.81
Plantation
Genting Plantations Bhd 9,100 93,958 89,726 0.93
Kuala Lumpur Kepong Bhd 9,900 224,624 244,728 2.52
Sime Darby Plantation Berhad 39,347 224,983 187,292 1.93
Property
LBS Bina Group Bhd 189,900 172,818 121,536 1.25
Technology
Globetronics Technology Bhd 24,000 59,852 42,000 0.43
Inari Amertron Bhd 138,900 145,779 208,350 2.15
Telecommunications & Media
Axiata Group Berhad 55,000 246,351 216,150 2.23
Telekom Malaysia Bhd 16,028 104,265 42,634 0.44
Time Dotcom Bhd 10,000 80,479 81,000 0.83
Utilities
Gas Malaysia Bhd 53,500 156,793 151,405 1.56
Petronas Gas Bhd 10,300 231,973 197,760 2.04
Tenaga Nasional Bhd 41,150 569,688 559,640 5.77
Total Malaysian Equities 2,174,984 6,561,256 6,122,162 63.08
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 48
myBLUECHIPS
Security Name Number of
Units Total Cost Market Value
% of NAV
Construction
Gamuda Bhd 56,000 276,747 131,040 1.57
IJM Corp Bhd 92,300 280,179 149,526 1.79
Consumer Products & Services
Fraser & Neave Holdings Bhd 2,000 74,968 67,000 0.80
Petronas Dagangan Bhd 7,700 192,511 204,050 2.44
PPB Group Berhad 4,800 79,520 84,384 1.01
Sime Darby Berhad 99,756 221,473 239,414 2.86
Energy
Dialog Group Bhd 97,512 184,218 303,262 3.63
Health Care
Hartalega Holdings Bhd 7,000 40,922 42,980 0.51
IHH Healthcare Bhd 46,000 260,270 247,940 2.97
Top Glove Corp Bhd 38,000 159,510 212,800 2.55
Industrial Products & Services
Cypark Resources Bhd 52,200 74,887 82,476 0.99
Lotte Chemical Titan Holding Berhad 40,000 213,057 184,800 2.21
Pestech International Bhd 39,000 60,558 38,610 0.46
Petronas Chemicals Group Bhd 45,700 314,405 424,553 5.08
Press Metal Aluminium Holdings Berhad 19,000 61,552 91,770 1.10
V.S. Industry Berhad 65,000 95,867 47,450 0.57
Plantation
Genting Plantations Bhd 7,500 79,988 73,950 0.88
IJM Plantations Bhd 16,200 59,198 22,681 0.27
IOI Corporation Berhad 40,400 174,789 179,780 2.15
Kuala Lumpur Kepong Bhd 9,100 209,549 224,952 2.69
Sime Darby Plantation Berhad 59,756 343,855 284,439 3.40
Property
IOI Properties Group Bhd 24,000 41,991 36,960 0.44
Sime Darby Property Berhad 103,756 151,665 103,237 1.24
SP Setia Bhd 38,600 119,329 89,938 1.08
UOA Development Bhd 45,000 108,172 95,400 1.14
Technology
Inari Amertron Bhd 133,050 137,690 199,575 2.39
Telecommunications & Media
Axiata Group Berhad 55,000 250,265 216,150 2.59
Maxis Bhd 11,700 77,769 62,595 0.75
Telekom Malaysia Bhd 26,311 171,146 69,987 0.84
Time Dotcom Bhd 9,100 75,258 73,710 0.88
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 49
Total Malaysian Unit Trusts 11,000 85,183 84,260 1.01
Total Malaysian Equities & Unit Trusts 1,383,941 5,644,137 5,300,119 63.42
Security Name Number of
Units Total Cost Market Value
% of NAV
Transportation & Logistics
MISC Bhd 17,700 121,189 118,590 1.42
Westports Holdings Bhd 13,000 44,238 47,060 0.56
Utilities Petronas Gas Bhd 13,200 293,547 253,440 3.03
Tenaga Nasional Bhd 37,600 508,672 511,360 6.12
Total Malaysian Equities 1,372,941 5,558,954 5,215,859 62.41
Unit Trusts Real Estate Investment Trusts
KLCCP Stapled Group 11,000 85,183 84,260 1.01
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 50
myDIVIDEND
Security Name Number of
Units Total Cost Market Value
% of NAV
Construction
Gamuda Bhd 67,500 333,844 157,950 1.47
IJM Corp Bhd 37,500 127,002 60,750 0.57
Consumer Products & Services
Bermaz Auto Bhd 180,400 405,767 387,860 3.62
Petronas Dagangan Bhd 4,500 90,917 119,250 1.11
Sime Darby Berhad 128,190 285,285 307,656 2.87
Energy
Dialog Group Bhd 118,800 224,317 369,468 3.45
Serba Dinamik Holdings Berhad 41,000 148,822 154,980 1.45
Health Care
IHH Healthcare Bhd 58,000 332,119 312,620 2.92
Industrial Products & Services
Cypark Resources Bhd 66,150 94,965 104,517 0.98
Lotte Chemical Titan Holding Berhad 53,000 282,461 244,860 2.29
Pestech International Bhd 48,000 74,440 47,520 0.44
Petronas Chemicals Group Bhd 60,100 415,002 558,329 5.21
Sunway Bhd 36,000 63,803 52,920 0.49
V.S. Industry Berhad 117,000 186,648 85,410 0.80
Plantation
Genting Plantations Bhd 8,200 86,303 80,852 0.75
Kuala Lumpur Kepong Bhd 6,000 137,144 148,320 1.38
Sime Darby Plantation Berhad 44,190 255,137 210,344 1.96
Property
LBS Bina Group Bhd 270,200 244,564 172,928 1.61
Matrix Concepts Holdings Bhd 135,000 278,563 253,800 2.37
SP Setia Bhd 50,000 154,348 116,500 1.09
UOA Development Bhd 71,000 171,239 150,520 1.41
Technology
Globetronics Technology Bhd 94,000 226,763 164,500 1.54
Inari Amertron Bhd 151,500 159,671 227,250 2.12
Telecommunications & Media
Axiata Group Berhad 60,000 268,517 235,800 2.20
Time Dotcom Bhd 9,000 77,326 72,900 0.68
Transportation & Logistics
MISC Bhd 17,700 123,982 118,590 1.11
Utilities
Gas Malaysia Bhd 57,900 169,670 163,857 1.53
Petronas Gas Bhd 10,900 242,263 209,280 1.95
Tenaga Nasional Bhd 40,700 559,605 553,520 5.17
Total Malaysian Equities 2,042,430 6,220,487 5,843,051 54.54
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 51
myBALANCED
Security Name Number of
Units Total Cost Market Value
% of NAV
Construction
Gamuda Bhd 17,900 91,569 41,886 0.20
Muhibbah Engineering (M) Bhd 67,700 184,448 188,883 0.88
Consumer Products & Services
Bermaz Auto Bhd 135,300 299,146 290,895 1.36
Sime Darby Berhad 128,804 312,190 309,130 1.45
Energy
Dialog Group Bhd 71,304 184,594 221,755 1.04
Hibiscus Petroleum Bhd 296,000 269,100 248,640 1.16
Serba Dinamik Holdings Berhad 76,000 266,514 287,280 1.34
Yinson Holdings Bhd 30,000 128,229 126,000 0.59
Health Care
IHH Healthcare Bhd 41,000 245,503 220,990 1.03
KPJ Healthcare Berhad 283,000 310,791 294,320 1.38
Supermax Corp Bhd 70,000 289,543 243,600 1.14
Top Glove Corp Bhd 16,000 76,221 89,600 0.42
Industrial Products & Services
Cypark Resources Bhd 138,750 203,588 219,225 1.03
Lotte Chemical Titan Holding Berhad 52,000 269,067 240,240 1.12
Pestech International Bhd 124,300 191,091 123,057 0.57
Petronas Chemicals Group Bhd 25,000 184,484 232,250 1.09
Plantation
Genting Plantations Bhd 11,000 114,432 108,460 0.51
Kuala Lumpur Kepong Bhd 3,100 69,617 76,632 0.36
Property
LBS Bina Group Bhd 288,100 262,588 184,384 0.86
Technology
Globetronics Technology Bhd 127,000 295,460 222,250 1.04
Inari Amertron Bhd 139,500 265,158 209,250 0.98
Telecommunications & Media
Axiata Group Berhad 73,000 317,157 286,890 1.34
Transportation & Logistics
Westports Holdings Bhd 7,000 30,121 25,340 0.12
Utilities
Gas Malaysia Bhd 89,600 261,488 253,568 1.19
Tenaga Nasional Bhd 16,400 207,127 223,040 1.04
Total Malaysian Equities 2,327,758 5,329,226 4,967,565 23.24
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 52
Security Name Number of
Units Total Cost Market Value
% of NAV
Sukuk
Electric/Power Generation
Jimah East Power Sdn Bhd 1,000,000 1,056,640 1,078,150 5.04
Kapar Energy Ventures Sdn Bhd 550,000 547,390 555,984 2.60
Malakoff Power Berhad 900,000 959,700 993,285 4.65
Sarawak Energy Berhad 850,000 892,450 890,426 4.17
Tanjung Bin Energy Issuer Berhad 500,000 530,600 534,995 2.50
Tenaga Nasional Berhad 1,000,000 1,000,000 1,031,390 4.82
TNB Northern Berhad 450,000 439,160 441,059 2.06
Financial Services
CIMB Islamic Bank Berhad 200,000 219,540 202,350 0.95
Bank Islam Malaysia Berhad 1,000,000 1,018,080 1,018,090 4.76
National Bank Of Abu Dhabi 400,000 406,580 405,700 1.90
Ranhill Powertron II Sdn Bhd 450,000 479,900 471,560 2.21
Oil & Gas
Alam Maritim Resources Bhd 550,000 550,000 550,000 2.57
Telecommunications & Media
BGSM Management Sdn Bhd 520,000 555,485 532,078 2.50
Transportation & Toll Roads
ANIH Berhad 500,000 515,400 513,735 2.40
Cerah Sama Sdn Bhd 900,000 904,460 934,704 4.37
MMC Corporation Berhad 1,000,000 1,031,800 1,026,930 4.80
Northport Malaysia Berhad 500,000 516,150 521,650 2.44
Projek Lebuhraya Usahasama Berhad 850,000 861,255 868,010 4.06
Total Malaysian Sukuk 12,120,000 12,484,590 12,570,096 58.80
Total Malaysian Equities & Sukuk 14,447,758 17,813,816 17,537,661 82.04
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 53
COMPARATIVE PERFORMANCE TABLE
ITTIZAN
Portfolio Composition 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14
(%) (%) (%) (%) (%)
a. Equities: 48.91 67.93 68.49 69.44 58.01
● Construction 3.32 7.12 7.52 7.57 1.86
● Consumer Products & Services 4.51 2.52 2.24 0.69 1.97
● Energy 6.83 - - - -
● Healthcare 7.79 - - - -
● Industrial Products & Services 5.51 9.99 9.90 8.10 2.45
● Infrastructure - - 2.30 3.20 2.96
● Plantation 4.80 15.17 12.59 11.92 3.97
● Property 1.40 4.36 2.74 1.31 2.21
● Technology 5.02 5.69 2.95 2.03 -
● Telecommunications & Media 2.16 - - - -
● Utilities 7.57 - - - -
● Trading/Services - 22.80 28.07 34.61 42.59
● Islamic REITs - 0.01 0.01 0.00 -
● Warrants - 0.28 0.18 - -
b. Sukuk 22.10 20.97 23.58 29.50 22.84
c. Money Market & Cash 28.99 11.10 7.93 1.06 19.15
TOTAL 100.00 100.00 100.00 100.00 100.00
31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14
Total NAV (RM) 9,459,040 11,122,075 10,740,005 22,977,064 23,385,211
Number of units 5,521,031 5,784,579 5,936,535 12,248,713 12,518,467
NAV per Unit (RM) 1.713 1.923 1.809 1.876 1.868
Highest NAV (RM) 1.970 1.923 1.891 1.953 1.934
Lowest NAV (RM) 1.690 1.807 1.787 1.714 1.802
Total Annual Return (% p.a) a) Capital Growth -10.9% 8.6% -1.5% 2.6% 1.5%
b) Income Distributions - - - - -
Average Annual Return : One-Year -10.9% 8.6% -1.5% 2.6% 1.5%
Three-Year -1.6% 3.1% 0.9% 5.4% 7.9%
Five-Year -0.1% 4.6% 4.9% 6.3% 8.5%
Benchmark Performance (70% FBM Shariah Index : 30% 1-Month GIA Rates Maybank)
Average Annual Return : One-Year -8.6% 8.5% -3.1% 2.7% -2.1%
Three-Year -1.3% 2.6% -0.9% 3.4% 5.6%
Five-Year -0.7% 3.1% 3.2% 4.4% 6.4%
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 54
ISTIQRAR
Portfolio Composition 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14
(%) (%) (%) (%) (%)
a. Equities: 24.19 25.01 24.33 33.92 31.20
● Construction 1.56 2.71 2.77 3.87 0.88
● Consumer Products & Services 2.51 0.97 0.85 0.38 1.06
● Energy 4.34 - - - -
● Healthcare 3.61 - - - -
● Industrial Products & Services 3.24 3.41 3.30 3.95 1.47
● Infrastructure - 0.00 0.84 1.58 1.86
● Plantation 1.15 5.17 4.12 5.63 2.11
● Property 1.84 1.58 0.98 0.66 1.14
● Technology 2.13 2.72 1.38 1.02 -
● Telecommunications & Media 1.12 - - - -
● Utilities 2.69 - - - -
● Trading/Services - 8.34 10.00 16.82 0.00
● Islamic REITs - 0.00 0.00 0.00 22.69
● Warrants - 0.11 0.10 - -
b. Sukuk 50.44 49.88 60.19 52.10 52.00
c. Money Market & Cash 25.37 25.11 15.48 13.98 16.80
TOTAL 100.00 100.00 100.00 100.00 100.00
31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14
Total NAV (RM) 7,726,773 8,288,322 8,207,842 12,410,092 12,400,829
Number of units 5,369,889 5,525,170 5,705,443 8,611,777 8,751,945
NAV per Unit (RM) 1.439 1.500 1.439 1.441 1.417
Highest NAV (RM) 1.515 1.500 1.467 1.459 1.430
Lowest NAV (RM) 1.429 1.439 1.420 1.372 1.372
Total Annual Return (% p.a) a) Capital Growth -4.1% 6.3% 1.2% 3.5% 2.7%
b) Income Distributions - - - - -
Average Annual Return : One-Year -4.1% 6.3% 1.2% 3.5% 2.7%
Three-Year 1.1% 3.7% 2.5% 4.4% 5.2%
Five-Year 1.9% 4.1% 4.0% 4.7% 5.2%
Benchmark Performance (30% FBM Shariah Index : 70% 1-Month GIA Rates Maybank)
Average Annual Return : One-Year -1.9% 5.5% 0.8% 3.1% 0.7%
Three-Year 1.4% 3.1% 1.5% 3.2% 4.0%
Five-Year 1.6% 3.2% 3.2% 3.6% 4.1%
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 55
Portfolio Composition
myEQUITY INDEX
31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14
(%) (%) (%) (%) (%)
a. Equities: 92.47 94.35 92.00 93.47 77.61
● Construction 2.69 5.93 5.85 5.44 5.58
● Consumer Products & Services 12.89 4.49 4.45 4.32 3.24
● Energy 5.07 - - - -
● Healthcare 9.93 - - - -
● Industrial Products & Services 10.41 16.77 13.63 14.57 3.95
● Infrastructure - 0.64 5.23 5.79 4.49
● Plantation 12.00 13.46 8.85 7.72 5.04
● Property 2.30 4.64 2.59 3.31 2.94
● Technology 1.34 1.57 0.54 1.10 -
● Telecommunications & Media 14.82 - - - -
● Transportation & Logistics 3.45 - - - -
● Utilities 17.57 - - - -
● Trading/Services - 45.88 49.94 50.41 52.35
● Islamic REITs - 0.97 0.91 0.81 -
● Warrants - - - - 0.02
b. Sukuk - - - - -
c. Money Market & Cash 7.53 5.65 8.00 6.53 22.39
TOTAL 100.00 100.00 100.00 100.00 100.00
31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14
Total NAV (RM) 32,700,393 31,443,403 24,713,653 21,199,201 15,781,182
Number of units 19,681,344 17,453,696 14,990,982 12,187,734 9,160,411
NAV per Unit (RM) 1.662 1.802 1.649 1.739 1.723
Highest NAV (RM) 1.853 1.802 1.724 1.828 1.785
Lowest NAV (RM) 1.607 1.648 1.621 1.523 1.625
Total Annual Return (% p.a) a) Capital Growth -7.8% 11.8% -5.6% 2.8% 3.2%
b) Income Distributions - - - - -
Average Annual Return : One-Year -7.8% 11.8% -5.6% 2.8% 3.2%
Three-Year -0.9% 2.7% 0.1% 8.2% 12.9%
Five-Year 0.6% 6.0% 6.9% 9.2% 12.2%
Benchmark Performance (FBM Shariah Index)
Average Annual Return : One-Year -13.5% 10.7% -6.1% 2.4% -4.2%
Three-Year -3.5% 2.1% -2.7% 3.6% 6.7%
Five-Year -2.5% 2.9% 3.1% 4.9% 8.0%
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 56
Portfolio Composition
myGROWTH
31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14
(%) (%) (%) (%) (%)
a. Equities: 63.08 68.28 72.34 78.90 81.63
● Construction 3.85 9.02 7.88 7.02 5.11
● Consumer Products & Services 7.61 0.77 0.99 3.29 3.75
● Energy 10.33 - - - -
● Healthcare 8.01 - - - -
● Industrial Products & Services 11.20 12.30 11.59 8.86 4.36
● Infrastructure - 0.89 3.14 3.39 4.13
● Plantation 5.38 11.25 10.96 13.32 5.13
● Property 1.25 3.11 0.42 0.46 3.52
● Technology 2.58 4.67 2.08 2.94 -
● Telecommunications & Media 3.50 - - - -
● Utilities 9.37 - - - -
● Trading/Services - 25.89 34.81 39.61 55.63
● Islamic REITs - 0.38 0.46 0.01 -
● Warrants - - - - -
b. Sukuk - - - - -
c. Money Market & Cash 36.92 31.72 27.66 21.10 18.37
TOTAL 100.00 100.00 100.00 100.00 100.00
31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14
Total NAV (RM) 9,705,176 10,232,169 8,564,487 8,003,942 7,013,066
Number of units 7,897,059 7,340,772 6,559,814 5,912,989 5,177,770
NAV per Unit (RM) 1.229 1.394 1.306 1.354 1.355
Highest NAV (RM) 1.433 1.394 1.355 1.443 1.455
Lowest NAV (RM) 1.207 1.303 1.290 1.200 1.300
Total Annual Return (% p.a) a) Capital Growth -11.8% 9.0% -3.0% 1.9% 1.2%
b) Income Distributions - - - - -
Average Annual Return : One-Year -11.8% 9.0% -3.0% 1.9% 1.2%
Three-Year -2.3% 2.5% 0.0% 7.3% 9.9%
Five-Year -0.8% 5.5% 5.6% 6.8% 8.4%
Benchmark Performance (FBM Shariah Index)
Average Annual Return : One-Year -13.5% 10.7% -6.1% 2.4% -4.2%
Three-Year -3.5% 2.1% -2.7% 3.6% 6.7%
Five-Year -2.5% 2.9% 3.1% 4.9% 8.0%
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 57
Portfolio Composition
myBLUE CHIPS
31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14
(%) (%) (%) (%) (%)
a. Equities: 63.42 73.72 75.49 80.29 81.25
● Construction 3.36 9.60 8.27 7.21 5.04
● Consumer Products & Services 7.11 0.91 1.03 3.26 3.85
● Energy 3.63 - - - -
● Healthcare 6.03 - - - -
● Industrial Products & Services 10.41 12.86 11.79 8.87 3.79
● Infrastructure - 0.94 3.20 3.34 4.11
● Plantation 9.39 12.27 11.51 13.65 5.96
● Property 3.90 3.20 0.38 0.41 3.28
● Technology 2.39 5.20 2.30 3.17 -
● Telecommunications & Media 5.06 - - - -
● Transportation & Logistics 1.98 - - - -
● Utilities 9.15 - - - -
● Trading/Services - 28.32 36.53 40.37 55.22
● Islamic REITs 1.01 0.42 0.48 0.01 -
● Warrants - - - - -
b. Sukuk - - - - -
c. Money Market & Cash 36.58 26.28 24.51 19.71 18.75
TOTAL 100.00 100.00 100.00 100.00 100.00
31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14
Total NAV (RM) 8,356,856 8,815,441 7,848,172 7,547,029 6,832,540
Number of units 6,464,041 6,193,344 5,912,014 5,471,230 4,955,050
NAV per Unit (RM) 1.293 1.423 1.328 1.379 1.379
Highest NAV (RM) 1.467 1.423 1.380 1.452 1.452
Lowest NAV (RM) 1.265 1.325 1.312 1.324 1.324
Total Annual Return (% p.a) a) Capital Growth -9.1% 9.3% -3.2% 2.4% 0.8%
b) Income Distributions - - - - -
Average Annual Return : One-Year -9.1% 9.3% -3.2% 2.4% 0.8%
Three-Year -1.3% 2.7% 0.0% 7.5% 11.5%
Five-Year -0.1% 5.6% 6.6% 7.6% 8.9%
Benchmark Performance (FBM Shariah Index)
Average Annual Return : One-Year -13.5% 10.7% -6.1% 2.4% -4.2%
Three-Year -3.5% 2.1% -2.7% 3.6% 6.7%
Five-Year -2.5% 2.9% 3.1% 4.9% 8.0%
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 58
Portfolio Composition
myDIVIDEND
31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14
(%) (%) (%) (%) (%)
a. Equities: 54.54 67.87 70.90 77.63 82.14
● Construction 2.04 8.90 7.64 6.88 4.51
● Consumer Products & Services 7.60 0.99 1.19 3.49 3.82
● Energy 4.90 - - - -
● Healthcare 2.92 - - - -
● Industrial Products & Services 10.21 12.27 11.45 8.84 4.25
● Infrastructure - 0.73 2.94 3.19 5.38
● Plantation 4.09 10.94 10.48 12.81 5.10
● Property 6.48 3.10 0.39 0.44 3.13
● Technology 3.66 4.60 2.03 2.89 -
● Telecommunications & Media 2.88 - - - -
● Transportation & Logistics 1.11 - - - -
● Utilities 8.65 - - - -
● Trading/Services - 25.95 34.32 39.09 53.23
● Islamic REITs - 0.39 0.46 0.02 2.72
● Warrants - - - - -
b. Sukuk - - - - -
c. Money Market & Cash 45.46 32.13 29.10 22.37 17.86
TOTAL 100.00 100.00 100.00 100.00 100.00
31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14
Total NAV (RM) 10,713,387 11,211,659 9,525,116 8,791,957 7,461,149
Number of units 7,901,669 7,383,067 6,706,536 5,975,763 5,036,643
NAV per Unit (RM) 1.356 1.519 1.420 1.471 1.481
Highest NAV (RM) 1.561 1.519 1.472 1.568 1.539
Lowest NAV (RM) 1.332 1.418 1.403 1.310 1.400
Total Annual Return (% p.a) a) Capital Growth -10.7% 8.9% -2.9% 1.6% 3.1%
b) Income Distributions - - - - -
Average Annual Return : One-Year -10.7% 8.9% -2.9% 1.6% 3.1%
Three-Year -1.9% 2.4% 0.5% 7.4% 12.8%
Five-Year -0.2% 5.5% 7.2% 9.2% 10.3%
Benchmark Performance (FBM Shariah Index)
Average Annual Return : One-Year -13.5% 10.7% -6.1% 2.4% -4.2%
Three-Year -3.5% 2.1% -2.7% 3.6% 6.7%
Five-Year -2.5% 2.9% 3.1% 4.9% 8.0%
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 59
Portfolio Composition
myBALANCED
31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14
(%) (%) (%) (%) (%)
a. Equities: 23.24 11.44 10.76 37.06 31.84
● Construction 1.08 1.26 1.27 4.05 1.14
● Consumer Products & Services 2.81 0.25 0.22 0.42 1.14
● Energy 4.13 - - - -
● Healthcare 3.97 - - - -
● Industrial Products & Services 3.81 1.57 1.48 4.38 1.98
● Infrastructure
0.00 0.40 1.72 1.96
● Plantation 0.87 2.38 1.82 6.37 1.85
● Property 0.86 0.46 0.22 0.66 1.27
● Technology 2.02 1.06 0.34 1.04 -
● Telecommunications & Media 1.34 - - - -
● Transportation & Logistics 0.12 - - - -
● Utilities 2.23 - - - -
● Trading/Services - 4.43 4.98 18.42 21.42
● Islamic REITs - - - 0.01 1.08
● Warrants - 0.03 0.02 - -
b. Sukuk 58.80 56.17 50.13 42.07 35.20
c. Money Market & Cash 17.96 32.39 39.12 20.87 32.96
TOTAL 100.00 100.00 100.00 100.00 100.00
31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 31-Dec-14
Total NAV (RM) 21,377,259 22,297,167 22,172,878 7,656,683 6,725,771
Number of units 17,208,878 17,600,353 18,120,077 6,352,300 5,668,099
NAV per Unit (RM) 1.242 1.267 1.224 1.205 1.187
Highest NAV (RM) 1.289 1.267 1.224 1.222 1.202
Lowest NAV (RM) 1.234 1.224 1.186 1.146 1.147
Total Annual Return (% p.a) a) Capital Growth -2.0% 5.3% 2.5% 2.9% 2.6%
b) Income Distributions - - - - -
Average Annual Return : One-Year -2.0% 5.3% 2.5% 2.9% 2.6%
Three-Year 1.9% 3.6% 2.6% 5.2% 6.8%
Five-Year 2.2% 4.7% 5.2% 5.5% -
Benchmark Performance (FBM Shariah Index)
Average Annual Return : One-Year -3.3% 6.3% -0.2% 3.1% 0.3%
Three-Year 0.9% 3.0% 1.1% 3.5% 4.7%
Five-Year 1.2% 3.3% 3.4% 4.0% -
SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD | ILP ANNUAL REPORT • 2018 P a g e | 60