Maybank Malaysia Sukuk Fund Annual Report 2021

Transcription

1. Maybank Asset Management Sdn Bhd 199701006283 Level 12 Tower C Dataran Maybank No .1 Jalan Maarof 59000 Kuala Lumpur, Malaysia Telephone +603 2297 7888 Facsimile +603 2715 0071 www.maybank-am.com.my MAYBANK MALAYSIA SUKUK FUND Annual report For the financial year ended 31 January 2022
2. CORPORATE INFORMATION MANAGER Maybank Asset Management Sdn Bhd (199701006283 (421779-M)) Level 12 Tower C Dataran Maybank No.1 Jalan Maarof 59000 Kuala Lumpur, Malaysia Telephone +603 2297 7888 Facsimile +603 2715 0071 www.maybank-am.com.my EXTERNAL INVESTMENT MANAGER Maybank Islamic Asset Management Sdn Bhd (201301012623 (10424610K)) Level 12 Tower C Dataran Maybank No.1 Jalan Maarof 59000 Kuala Lumpur, Malaysia Telephone +603 2297 7872 Facsimile +603 2297 7898 TRUSTEE TMF Trustees Malaysia Bhd (200301008392 (610812-W)) 10th Floor, Menara Hap Seng No. 1 & 3 Jalan P, Ramlee 50250 Kuala Lumpur Telephone +603 2382 4288 Facsimile +603 2382 4170 SHARIAH ADVISER Maybank Islamic Bhd (200701029411 (787435-M)) Level 15 Tower A Dataran Maybank No. 1 Jalan Maarof 59000 Kuala Lumpur Telephone +603 2297 2001 Facsimile +603 2297 2002
3. MAYBANK MALAYSIA SUKUK FUND CONTENT PAGE Manager 's report 1-6 Trustee's report 7 Statement by Manager 8 Report of the Shariah Adviser 9 Independent auditors' report 10 - 13 Statement of comprehensive income 14 Statement of financial position 15 Statement of changes in equity 16 Statement of cash flows 17 Notes to the financial statements 18 - 56
4. MAYBANK MALAYSIA SUKUK FUND Manager ’s report For the financial year ended 31 January 2022 A. Fund Information 1. Name of Fund Maybank Malaysia Sukuk Fund (the “Fund”) 2. Type of Fund Income 3. Category of Fund Sukuk 4. Duration of Fund The Fund is an open-ended fund. 5. Fund launch date / commencement date 8 January 2014 / 24 February 2014 6. Fund’s investment objective The Fund aims to provide investors with annual income through investing in a portfolio of Sukuk. 7. Fund distribution policy Distribution, if any, shall be on an annual basis and will be made from the realised income of the Fund. 8. Fund’s performance benchmark 12-months Islamic Fixed Deposit-i rate. 9. The Fund's investment policy and principal investment strategy The Fund invests between 70% - 98% of the Fund’s NAV in a portfolio of Ringgit Malaysia ("RM")denominated sukuk issued and/or offered in Malaysia with a minimum sukuk rating of ‘AA-’ by RAM Holdings Berhad ("RAM") or equivalent rating by Malaysian Rating Corporation Berhad ("MARC"). The Fund will also invest between 2% - 30% of the Fund’s NAV in Shariah-compliant liquid assets including Shariah-compliant money market instruments and placement in Shariah-compliant deposits. 10. Net income distribution for the financial year ended 31 January 2022 The Fund distributed a total net income of RM61,730,171 to unitholders for the financial year ended 31 January 2022. Below are details of distributions made during the financial year: Gross/net distribution per unit (sen) 2.00 1.50 Distribution dates (ex-date) 28 July 2021 27 January 2022 1
5. MAYBANK MALAYSIA SUKUK FUND Manager ’s report For the financial year ended 31 January 2022 (cont'd) A. Fund Information (cont'd) 10. Net income distribution for the financial year ended 31 January 2022 (cont'd) Below is the impact of the distributions to the Fund’s NAV: Before distribution (RM) 1.0765 1.0540 Distribution dates (ex-date) 28 July 2021 27 January 2022 After distribution (RM) 1.0565 1.0390 Changes % (1.86) (1.42) No. of units ('000) *6 446 ** 1,588,499 1,588,951 % 0.03 99.97 100.00 11. Breakdown of unitholdings by size Fund size As at 31 January 2022, the size of the Fund was 1,588,951,017 units. Breakdown of unitholdings as at 31 January 2022 Unitholdings 5,000 units and below 5,001 to 10,000 units 10,001 to 50,000 units 50,001 to 500,000 units 500,001 units and above Total * ** No. of unitholders 3 1 32 36 % 8.33 2.78 88.89 100.00 Includes 1,341 units held by Maybank Asset Management Sdn Bhd (the "Manager") Includes units held under an Institutional Unit Trust Scheme Advisers (“IUTA”) and 803,466,150 units held by Malayan Banking Berhad, the ultimate holding company of the Manager B. Performance Review 1. Key performance data of the Fund 2022 2021 2020 Sukuk (%) Cash and other net assets (%) Total (%) 92.13 7.87 100.00 90.46 9.54 100.00 88.06 11.94 100.00 NAV (RM’000) Units in circulation (units‘000) NAV per unit (RM sen) Highest NAV per unit (RM sen) Lowest NAV per unit (RM sen) 1,651,458 1,588,951 1.0393 1.0843 1.0390 2,137,530 1,973,105 1.0833 1.1107 1.0393 1,156,157 1,079,376 1.0711 1.1142 1.0149 Category 2
6. MAYBANK MALAYSIA SUKUK FUND Manager ’s report For the financial year ended 31 January 2022 (cont'd) B. Performance Review (cont'd) 1. Key performance data of the Fund (cont'd) Category Annual return (%) (1) - Capital growth (%) - Income distribution (%) Total return (%) Benchmark (%) 2022 2021 2020 (4.04) 3.36 (0.82) 1.12 3.65 4.81 5.54 4.16 9.93 1.85 2.13 3.16 28.07.2021 and 27.01.2022 3.50 Distribution dates (ex-date) Gross/net distribution per unit (RM sen) Management Expense Ratio ("MER") (%) (2) Portfolio Turnover Ratio ("PTR") (times) (3) 0.41 0.31 28.07.2020 and 30.01.2021 3.93 0.41 0.45 31.01.2020 4.45 0.41 0.58 Note: (1) Actual return of the Fund for the financial year is computed based on the daily average NAV per unit, net of Manager and Trustee's fees. (2) The Fund's MER remained the same at 0.41% in the current financial year compared to the previous financial year. (3) The Fund's PTR decreased from 0.45 times to 0.31 times in the current financial year due to decrease in investing activities during the current financial year under review. Investors are reminded that past performance of the Fund is not necessarily an indicative of its future performance and that unit prices and investment returns may fluctuate. 2. Performance of the Fund up to 31 January 2022 1 year to 31.01.2022 % (4.04) 3.36 (0.82) 1.85 (0.82) Category Capital growth Income distributions Total return of the Fund Benchmark Average total return 3 3 years to 31.01.2022 % (3.03) 17.85 14.28 7.30 4.55 5 years to 31.01.2022 % (1.77) 27.87 25.61 14.37 4.67
7. MAYBANK MALAYSIA SUKUK FUND Manager ’s report For the financial year ended 31 January 2022 (cont'd) B. Performance Review (cont'd) 2. Performance of the Fund up to 31 January 2022 (cont'd) Source: Lipper, as at 31 January 2022 Maybank Malaysia Sukuk Fund recorded a return of 25.61% over the 5 year period to 31 January 2022, compared to the benchmark return of 14.37% over the same period. For the 1 year period to 31 January 2022, the Fund recorded a return of -0.82% compared to the benchmark return of 1.85%. The underperformance was driven by the selloffs in the local bond market in February 2021, March 2021 and October 2021 caused by rising United States Treasury (“UST”) yields on the back of economic recovery optimism and inflation concerns leading to rate hikes expectations in the United States (“US”) that led to a rout in global bond market. Has the Fund achieved its objective? As the Fund continues to pay distribution on a consistent basis, the Fund has achieved its investment objective. 3. Annual total return of the Fund Category Annual total return Benchmark 2022 % 2021 % 2020 % 2019 % 2018 % (0.82) 1.85 4.81 2.13 9.93 3.16 5.37 3.35 4.32 3.15 4
8. MAYBANK MALAYSIA SUKUK FUND Manager ’s report For the financial year ended 31 January 2022 (cont'd) B. Performance Review (cont'd) 4. Basis of calculation made in calculating the returns: The performance figures are a comparison of the growth/decline in NAV after taking into account all the distributions payable (if any) during the stipulated period. An illustration of the above would be as follows: Capital return Income return Total return = = = (NAV per unit end / NAV per unit begin) - 1 Income distribution per unit / NAV per unit ex-date (1+Capital return) x (1+Income return) - 1 C. Market Review After four Overnight Policy Rate ("OPR") cuts by Bank Negara Malaysia ("BNM") between January 2021 and July 2021, the market saw BNM maintained its OPR at 1.75% throughout the period. Amidst the stable domestic monetary policy by BNM, the local fixed income market was more affected by the rise in UST yields that affected the global bond market. The global market saw the UST yields rose 24 basis point (“bps”) to 120 bps between the 2 year and 30 year maturities during the period as expectations on the Federal Reserve System (“Fed”) to raise its interest rates gathered pace throughout the period under review as US economy showed signs of recovery and its inflation creeping up. Selloffs in global yields in 1Q 2021 and September 2021 to October 2021 saw local government bond yields rose 27-108 bps with the 10-year Malaysia Government Securities (“MGS”) reaching a high of 3.68% or 98 bps increase from a year before. This led to similar adjustment in corporate bonds as the market adjusted to the movement in government bond. D. Market Outlook & Strategies We expect local bond market to be well supported on economic recovery and still lower yields from fixed deposits and money market funds. Similar with equities, we expect the recovery momentum to sustain into 2022 as Malaysia almost fully reopened its economic activities, supported by very high vaccination rates among all Malaysians. For Malaysia fixed income, our investment thesis for economic recovery and reflation trades will continue in 2022, i.e. to seek value from high quality corporate bonds in the primary and secondary market and remain slightly negative on having long duration. We foresee that Malaysia will keep its OPR level at 1.75% for 1Q2022 as economic recovery progresses steadily, and as an insurance to protect against potential negative surprises from new Coronavirus Diseases 2019 (“COVID-19”) variants and other unforeseen headwinds. BNM is likely to make the first interest rate hike in the 2H2022. Given the flush liquidity in the banking system, this will continue to lend support to the local bond market as yield pickup remains decent as compared to the low yielding fixed deposits and money market funds. 5
9. MAYBANK MALAYSIA SUKUK FUND Manager ’s report For the financial year ended 31 January 2022 (cont'd) D. Market Outlook & Strategies (cont'd) We continue to maintain our neutral duration relative to the The Refinitiv Bond Pricing Agency Malaysia (“TRBPAM”) Sukuk Index as we assume a more defensive stance given our expectation of a steepening yield curve on the back of more robust economic activities in 2022. We expect the flush liquidity in domestic capital market will provide support the local bond market as yield pickup remains decent as compared to the low yielding fixed deposits and money market instruments due to the current low interest rate environment. We continue to overweight corporate bonds over sovereign bonds to anchor the Fund’s income in corporate bonds’ coupons as they are less volatile and provide higher yields to buffer against potential mark-to-market losses in the event of a turnaround in sovereign bond yields as economy starts to recover. We prefer strong AA-rated papers (A financial institution rated AA has a strong capacity to meet its financial obligations) for yield pickup and potential long term upgrade as economic activities accelerate. We will continue to look for attractive Sukuk investments to trade and also improve the portfolio current yield of 4.12% with the cash available. Aside from the Sukuk secondary market, we continue to monitor new primary issuances that offers higher yields to deliver the required performance. As of 31 January 2022, the Fund is 92.13% invested in Ringgit Malaysia denominated Sukuk investments. E. Soft Commissions and Rebates The Manager and its delegates will not retain any form of soft commissions and rebates from or otherwise share in any commission with any broker in consideration for directing dealings in the investments of the Fund unless the commission received is retained in the form of goods and services such as financial wire services and stock quotations system incidental to investment management of the Fund. All dealings with brokers are executed on best available terms. During the financial year ended 31 January 2022, the Manager and its delegates did not receive any rebates from the brokers or dealers but have retained soft commissions in the form of goods and services such as research materials and advisory services that assist in decision making process relating to the investment of the Fund (i.e. research materials, data and quotation services, computer hardware and software incidental to the investment management of the Fund and investment advisory services) which were of demonstrable benefits to the unitholders. 6
10. TRUSTEE 'S REPORT TO THE UNITHOLDERS OF MAYBANK MALAYSIA SUKUK FUND FOR THE FINANCIAL YEAR ENDED 31 JANUARY 2022 We have acted as Trustee of Maybank Malaysia Sukuk Fund (the "Fund") for the financial year ended 31 January 2022. In our opinion and to the best of our knowledge, Maybank Asset Management Sdn Bhd (the "Manager") has operated and managed the Fund in accordance with the following: (a) Limitations imposed on the investment powers of the Manager and the Trustee under the Deed, the Securities Commission's Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007 and other applicable laws; (b) Valuation and pricing were carried out in accordance with the Deeds and relevant regulatory requirements; (c) Creation and cancellation of units were carried out in accordance with the Deeds and relevant regulatory requirements; and (d) The distribution of returns for the year are tied to and reflect the objectives of the Fund. For and on behalf of TMF Trustees Malaysia Berhad (Company No: 200301008392/ 610812-W) Norhayati Binti Azit Director - Funds Services Kuala Lumpur, Malaysia 15 March 2022 7
11. STATEMENT BY MANAGER TO THE UNITHOLDER 'S OF MAYBANK MALAYSIA SUKUK FUND FOR THE FINANCIAL YEAR ENDED 31 JANUARY 2022 We, Dato' Idris Bin Kechot and Ahmad Najib Bin Nazlan, being two of the Directors of Maybank Asset Management Sdn Bhd (the "Manager"), do hereby state that, in the opinion of the Manager, the accompanying financial statements set out are drawn up in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards so as to give a true and fair view of the financial position of Maybank Malaysia Sukuk Fund as at 31 January 2022 and of its results, changes in equity and cash flows for the financial year then ended and complied with the requirements of the Deeds. For and on behalf of the Manager Dato' Idris Bin Kechot Chairman Ahmad Najib Bin Nazlan Director Kuala Lumpur, Malaysia 15 March 2022 8
12. REPORT OF THE SHARIAH ADVISER TO THE UNITHOLDER 'S OF MAYBANK MALAYSIA SUKUK FUND FOR THE FINANCIAL YEAR ENDED 31 JANUARY 2022 We hereby confirm the following: . 1. To the best of our knowledge, after having made all reasonable enquiries, Maybank Asset Management Sdn Bhd (the "Manager") has operated and managed Maybank Malaysia Sukuk Fund ("the Fund") during the year covered by these financial statements in accordance with the Shariah principles and complied with the applicable guidelines, rulings or decisions issued by the Securities Commission Malaysia pertaining to Shariah matters; and 2. The asset of the Fund comprises instruments that have been classified as Shariah compliant. For and on behalf of Maybank Islamic Berhad Dr Aznan Bin Hasan Chairman of the Shariah Committee of Maybank Islamic Berhad Kuala Lumpur, Malaysia 15 March 2022 9
13. Independent auditors ’ report to the Unitholders of Maybank Malaysia Sukuk Fund Report on the audit of the financial statements Opinion We have audited the financial statements of Maybank Malaysia Sukuk Fund (the "Fund"), which comprise the statement of financial position as at 31 January 2022 of the Fund, and statement of comprehensive income, statement of changes in equity and statement of cash flows of the Fund for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information, as set out on pages 14 to 56. In our opinion, the accompanying financial statements give a true and fair view of the financial position of the as at 31 January 2022, and of its financial performance and cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards. 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 report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence and other ethical responsibilities We are independent of the Fund in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Code of Ethics for Professional Accountants (including International Independence Standards) (“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 Maybank Asset Management Sdn Bhd ("the Manager”) is responsible for the other information. The other information comprises the information included in the annual report of the Fund, but does not include the financial statements of the Fund and our auditors’ report thereon. Our opinion on the financial statements of the Fund does not cover the other information and we do not express any form of assurance conclusion thereon. 10
14. Independent auditors ’ report to the Unitholders of Maybank Malaysia Sukuk Fund (cont'd) Information other than the financial statements and auditors’ report thereon (cont'd) In connection with our audit of the financial statements of the Fund, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Fund or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Manager and Trustee for the financial statements The Manager is responsible for the preparation of financial statements of the Fund that give a true and fair view in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards. The Manager is also responsible for such internal control as the Manager determines is necessary to enable the preparation of financial statements of the Fund that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Fund, the Manager is responsible for assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Manager either intends to liquidate the Fund or to cease operations, or have no realistic alternative but to do so. The Trustee is responsible for overseeing the Fund’s financial reporting process. The Trustee is also responsible for ensuring that the Manager maintains proper accounting and other records as are necessary to enable true and fair presentation of these financial statements. Auditors’ responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements of the Fund as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 11
15. Independent auditors ’ report to the Unitholders of Maybank Malaysia Sukuk Fund (cont'd) Auditors’ responsibilities for the audit of the financial statements (cont'd) 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 skepticism throughout the audit. We also: ● Identify and assess the risks of material misstatement of the financial statements of the Fund, whether due to fraud or error, design and perform audit procedures responsive to those risks, 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 Fund’s internal control. ● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Manager. ● Conclude on the appropriateness of the Manager’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements of the Fund or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Fund to cease to continue as a going concern. ● Evaluate the overall presentation, structure and content of the financial statements of the Fund, including the disclosures, and whether the financial statements of the Fund represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with the Manager regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 12
16. Independent auditors ’ report to the Unitholders of Maybank Malaysia Sukuk Fund (cont'd) Other matters This report is made solely to the unitholders of the Fund, as a body, in accordance with the Guidelines on Unit Trust Funds issued by the Securities Commission Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report. Ernst & Young PLT 202006000003 (LLP0022760-LCA) & AF 0039 Chartered Accountants Kuala Lumpur, Malaysia 15 March 2022 13 Yeo Beng Yean 03013/10/2022 J Chartered Accountant
17. MAYBANK MALAYSIA SUKUK FUND STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 JANUARY 2022 2022 RM 2021 RM 77 ,992,841 59,658,080 (4,485,285) (80,109,674) (6,602,118) 7,821,770 3,480,829 70,960,679 7,002,593 1,000,370 8,288 3,900 9,000 187,340 8,211,491 5,444,295 777,756 8,500 3,900 9,000 160,421 6,403,872 (14,813,609) - 64,556,807 - (14,813,609) 64,556,807 65,296,065 (80,109,674) (14,813,609) 61,075,978 3,480,829 64,556,807 Note INVESTMENT (LOSS)/INCOME Profit income Net (loss)/gain on financial assets at fair value through profit or loss ("FVTPL") - Realised (loss)/gain - Unrealised (loss)/gain 4 EXPENSES Manager's fee Trustee's fee Auditors’ remuneration Tax agent's fee Shariah advisory fee Administrative expenses 5 6 Net (loss)/income before taxation Taxation Net (loss)/income after taxation and total comprehensive (loss)/income for the financial year 7 Net (loss)/income after taxation is made up of the following: Net realised income Net unrealised (loss)/income Distributions for the financial year: Net distributions per unit (sen) Gross/net distributions per unit (sen) Distributions dates (ex-date) 14 14 14 61,730,171 63,247,400 3.50 3.93 28 July 2021 and 28 July 2020 and 27 January 2022 30 January 2021 The accompanying notes form an integral part of the audited financial statements. 14
18. MAYBANK MALAYSIA SUKUK FUND STATEMENT OF FINANCIAL POSITION AS AT 31 JANUARY 2022 2022 RM 2021 RM 8 1 ,521,491,973 1,932,684,464 9 117,859,440 17,976,372 7,520,870 46,479 1,664,895,134 47,696,211 21,224,658 5,625,737 138,259,409 1,722,486 2,147,212,965 13,256,930 71,568 108,814 13,437,312 9,516,330 86,961 79,982 9,683,273 1,651,457,822 2,137,529,692 1,647,565,783 3,892,039 2,061,675,386 75,854,306 1,651,457,822 2,137,529,692 1,651,457,822 2,137,529,692 1,588,951,017 1,973,105,122 1.0393 1.0833 Note ASSETS Financial assets at FVTPL Shariah-compliant deposit with a licensed Islamic financial institution Profit income receivables Amount due from brokers Amount due from Manager Cash at bank TOTAL ASSETS 10 11 LIABILITIES Amount due to Manager Amount due to Trustee Other payables and accruals TOTAL LIABILITIES 11 12 NET ASSET VALUE ("NAV") OF THE FUND EQUITY Unitholders' capital Retained earnings NET ASSETS ATTRIBUTABLE TO UNITHOLDERS 13(a) 13(b) & (c) NET ASSET VALUE (RM) NUMBER OF UNITS IN CIRCULATION (UNIT) 13(a) NAV PER UNIT (RM) The accompanying notes form an integral part of the audited financial statements. 15
19. MAYBANK MALAYSIA SUKUK FUND STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 JANUARY 2022 At 1 February 2021 Total comprehensive loss for the financial year Creation of units Reinvestment of units Cancellation of units Distributions (Note 14) At 31 January 2022 At 1 February 2020 Total comprehensive income for the financial year Creation of units Reinvestment of units Cancellation of units Distributions (Note 14) At 31 January 2021 Unitholders' capital Note 13(a) RM Retained earnings Note 13(b) & Note 13(c) RM Total equity RM 2,061,675,386 75,854,306 2,137,529,692 608,918,559 53,444,898 (1,071,891,547) (4,581,513) 1,647,565,783 (14,813,609) (57,148,658) 3,892,039 (14,813,609) 608,918,559 53,444,898 (1,071,891,547) (61,730,171) 1,651,457,822 1,107,561,160 48,595,993 1,156,157,153 1,835,145,006 72,634,836 (927,716,710) (25,948,906) 2,061,675,386 64,556,807 (37,298,494) 75,854,306 64,556,807 1,835,145,006 72,634,836 (927,716,710) (63,247,400) 2,137,529,692 The accompanying notes form an integral part of the audited financial statements. 16
20. MAYBANK MALAYSIA SUKUK FUND STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 JANUARY 2022 2022 RM 2021 RM CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES Net payment for purchase of financial assets at FVTPL Net proceeds from sale of financial assets at FVTPL Profit income received Manager 's fee paid Trustee's fee paid Payment of other fees and expenses Decrease in Shariah-compliant deposit with a licensed financial institution with maturity of more than 3 months Net cash generated from/(used in) from operating and investing activities (421,409,761) 818,366,705 16,507,455 (7,110,349) (1,015,764) (179,701) 405,158,584 (1,172,206,607) 251,045,640 62,291,532 (5,188,263) (741,180) (121,437) 73,000,000 (791,920,315) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from creation of units Payment for redemption of units Distributions to unitholders Net cash (used in)/generated from financing activities NET CHANGE IN CASH AND CASH EQUIVALENTS FOR THE FINANCIAL YEAR CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FINANCIAL YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR Cash and cash equivalents comprise: Cash at bank Shariah-compliant deposit with a licensed Islamic financial institutions with maturity of less than 3 months (Note 9) 739,657,098 (1,068,043,188) (8,285,273) (336,671,362) 68,487,222 (51,406,808) 49,418,697 100,825,505 117,905,919 49,418,697 46,479 1,722,486 117,859,440 117,905,919 47,696,211 49,418,697 The accompanying notes form an integral part of the audited financial statements. 17 1,701,538,860 (922,460,081) (38,565,272) 740,513,507
21. MAYBANK MALAYSIA SUKUK FUND NOTES TO THE FINANCIAL STATEMENT FOR THE FINANCIAL YEAR ENDED 31 JANUARY 2022 1 . THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES Maybank Malaysia Sukuk Fund (the "Fund”) was constituted pursuant to the execution of a Deed dated 14 December 2012, a First Supplementary Deed dated 9 July 2014, Second Supplementary Deed dated 20 March 2015 and a Third Supplementary Deed dated 10 December 2015 between the Manager, Maybank Asset Management Sdn Bhd (“MAM”) and the Trustee, TMF Trustees Malaysia Bhd. The Deeds & supplementary Deeds are collectively referred to as "Deeds". The principal activity of the Fund is to invest between 70% to 98% of the Fund's NAV in a portfolio of Ringgit Malaysia ("RM")-denominated sukuk issued and/or offered in Malaysia with a minimum Sukuk rating of 'AA-' by RAM Holdings Berhad ("RAM") or equivalent rating by Malaysian Rating Corporation Berhad ("MARC"). However, if any of the sukuk held in the Fund has been downgraded to a rating of “BBB+” or lower by RAM or equivalent rating by MARC, the Manager may choose to dispose the sukuk as soon as practicable. However, if such prompt action may be detrimental to the Fund, the Manager may continue to hold onto the downgraded sukuk for up to 90 days. The Manager will also invest between 2% to 30% of the Fund's NAV in Shariah-compliant liquid assets including Shariah-compliant money market instruments and placement in Shariah-compliant deposit. The Manager of the Fund is MAM, a company incorporated in Malaysia. It is a holder of the Capital Markets Services Licence ("CMSL") with fund management as its regulated activity under the Capital Markets and Services Act 2007 ("CMSA"). The principal place of business of MAM is at Level 12, Tower C, Dataran Maybank, No. 1 Jalan Maarof, 59000 Kuala Lumpur, Malaysia. MAM is a subsidiary of Maybank Asset Management Group Berhad ("MAMG"), which in turn is a subsidiary of Malayan Banking Berhad ("MBB"). MAM has appointed Maybank Islamic Asset Management Sdn Bhd (“MIAM”) as the External Investment Manager for the Fund. MIAM is a subsidiary of MAMG and is a holder of CMSL to carry out Islamic fund management business pursuant to Section 61 of the CMSA. The roles and responsibilities of MIAM include management of the investment portfolio in accordance with the investment objective, subject to the CMSA and the Guidelines on Unit Trust Funds issued by the Securities Commission of Malaysia ("SC") and any other relevant guidelines issued by the SC as well as the terms and conditions of the investment management agreement between MIAM and MAM. The financial statements were authorised for issue by the Board of Directors of the Manager ("the Directors") in accordance with a resolution of the Directors on 15 March 2022. 2.1 Basis of preparation The financial statements of the Fund have been prepared in accordance to Malaysian Financial Reporting Standards (“MFRS”) as issued by the Malaysian Accounting Standards Board (“MASB”), International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), the Deeds and any regulatory requirements. 18
22. MAYBANK MALAYSIA SUKUK FUND 2 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of preparation (cont'd) The Fund has adopted the MFRS, Amendments to Standards and Interpretations Committee ("IC") Interpretations which have become effective during the financial year. The adoption of the new pronouncements did not result in any material impact to the financial statements. The financial statements have been prepared on a historical cost basis except as disclosed in the accounting policies in Note 2.3 to 2.14 in the financial statements. 2.2 Standards and amendments to standards issued but not yet effective The following are Standards and Amendments to Standards and Interpretations issued by the MASB, but not yet effective, up to the date of issuance of the Fund's financial statements. The Fund intends to adopt the relevant standards, if applicable, when they become effective. Effective for annual periods beginning on or after Description Amendment to MFRS 16: Covid-19 - Related Rent Concessions beyond 30 June 2021 Amendments to MFRS 3: Reference to the Conceptual Framework Amendments to MFRS 116: Proceeds before Intended Use Amendments to MFRS 137: Onerous Contracts - Cost of Fulfilling a Contract Annual Improvements to MFRS Standards 2018-2020 Cycle MFRS 17: Insurance Contracts Amendments to MFRS 101: Classification of Liabilities as Current or Non-current Amendments to MFRS 101: Disclosure of Accounting Policies Amendments to MFRS 108: Definition of Accounting Estimates Amendments to MFRS 112: Deferred Tax related to Assets and Liabilities arising from a Single Transaction Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 1 April 2021 1 January 2022 1 January 2022 1 January 2022 1 January 2022 1 January 2023 1 January 2023 1 January 2023 1 January 2023 1 January 2023 Deferred The Fund expects that the adoption of the above standards and amendments to standards will not have any material impact on the financial statements in the period of initial application. 2.3 Financial instruments Financial assets and financial liabilities are recognised when the Fund becomes a party to the contractual provision of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. 19
23. MAYBANK MALAYSIA SUKUK FUND 2 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) 2.4 Financial assets All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place. All recognised financial assets are subsequently measured in their entirety at amortised cost or fair value, depending on the classification of the assets. (i) Financial assets at amortised cost The Fund classifies cash and cash equivalents and profit income as financial assets at amortised cost. These assets are subsequently measured using the effective profit rate ("EPR") method and are subject to impairment. The EPR is a method of calculating the amortised cost of financial asset and of allocating and recognising the profit income in profit or loss of the relevant period. Unless designated as at FVTPL on initial recognition, debt instruments that meet the following conditions are subsequently measured at amortised cost less impairment loss: the assets are held within a business model whose objectives is to hold assets in order to collect contractual cash flows; and the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and profit on the principal amount outstanding. Debt instruments that do not meet the criteria above are classified as either fair value through other comprehensive income ("FVTOCI") or FVTPL. (ii) Financial assets at FVTPL Investments in Sukuk is classified as FVTPL, unless the Fund designates an investment that is not held for trading as FVTOCI on initial recognition. A financial asset is held for trading if: - it has been acquired principally for the purpose of selling it in the near term; or - on initial recognition it is part of the portfolio of identified financial instruments that the Fund manages together and has evidence of a recent actual pattern of short-term profit-taking; or - it is a derivative that is not designated and effective as a hedging instruments or a financial guarantee. Debt instruments that do not meet the amortised cost or FVTOCI criteria are measured at FVTPL. In addition, debt instruments that meet the amortised cost criteria but are designated as at FVTPL are measured at FVTPL. A debt instrument may be designated as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities or recognising the gains and losses on them on different bases. 20
24. MAYBANK MALAYSIA SUKUK FUND 2 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) 2.4 Financial assets (cont'd) (ii) Financial assets at FVTPL (cont'd) Debt instruments are reclassified from amortised cost to FVTPL when the business model is changed such that the amortised cost criteria are no longer met. Reclassification of debt instruments that are designated as at FVTPL on initial recognition is not allowed. Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on remeasurement recognised in profit or loss. Profit income on debt instruments as at FVTPL is disclosed separately in the profit or loss. The carrying cost of unquoted fixed income securities denominated in RM are revalued on a daily basis based on fair value prices quoted by Bond Pricing Agency ("BPA") registered with the Securities Commission Malaysia ("SC"). Where such quotations are not available or where the Manager is of the view that the price quoted by the BPA for a specific unquoted fixed income securities differs from the market price by more than 20 basis points, the Manager may use the market price, provided that the Manager: - records its basis for using a non-BPA price; obtain necessary internal approvals to the use of non-BPA price; and keeps an audit trail of all decisions and basis for adopting the market yield. Changes in the fair value of FVTPL investments are recognised in 'unrealised gain on FVTPL investments' in profit or loss. Accumulated unrealised gains or losses are reclassified to 'realised gain on FVTPL investments' in profit or loss when the associated assets are sold. (iii) Impairment Credit losses are recognised based on the 'Expected Credit Loss' ("ECL") model. The Fund recognises loss allowances for ECL on financial instruments that are not measured at FVTPL. The impairment model does not apply to equity investments. ECL is a probability-weighted estimate of credit losses. It is measured as follows: - Financial assets that are not credit-impaired at the reporting date: As the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Fund expects to receive); - Financial assets that are credit-impaired at the reporting date: As the difference between the gross carrying amount and the present value of estimated future cash flows. At each reporting date, the Fund assesses whether financial assets carried at amortised cost are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. 21
25. MAYBANK MALAYSIA SUKUK FUND 2 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) 2.4 Financial assets (cont'd) (iii) Impairment (cont'd) Evidence that a financial asset is credit-impaired includes the following observable data: - Significant financial difficulty of the issuer or counterparty; Significant downgrade in credit rating of the instrument by a rating agency; A breach of contract such as a default or past due event; or The disappearance of an active market for a security because of financial difficulties. For balances with short-term nature, full impairment will be recognised on uncollected balances after the grace period. (iv) Derecognition The Fund derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Fund neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Fund recognises its retained profit in the asset and an associated liability for amounts it may have to pay. If the Fund retains substantially all the risks and rewards of ownership of a transferred financial asset, the Fund continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received. On derecognition of financial asset classified as FVTPL, the cumulative unrealised gain or loss previously recognised is transferred to realised gain or loss on disposal in profit or loss. On derecognition of financial asset at amortised cost, gain or losses are recognised in profit or loss when the asset is dercognised, modified and impaired. 2.5 Financial liabilities (i) Classification Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability. The Fund classifies amount due to Manager, amount due to Trustee, distributions payable, and other payables and accruals as financial liabilities. (ii) Recognition and measurement The Fund’s financial liabilities are recognised initially at fair value plus directly attributable transaction costs and subsequently measured at amortised cost using the effective profit rate method. 22
26. MAYBANK MALAYSIA SUKUK FUND 2 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) 2.5 Financial liabilities (cont'd) (iii) Derecognition A financial liability is derecognised when the obligation under the liability is extinguished. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process. 2.6 Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: (a) In the principal market for the asset or liability; or (b) In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Fund. The fair value of an asset or a liability is measured using the assumptions that the market participants would use when pricing the asset or liability, assuming that the market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: (a) Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities. (b) Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. (c) Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognised in the financial statements on a recurring basis, the Fund determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting date. For the purpose of fair value disclosures, the Fund has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. 23
27. MAYBANK MALAYSIA SUKUK FUND 2 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) 2.7 Functional and presentation currency The financial statements of the Fund are measured using the currency of the primary economic environment in which the Fund operates (the "functional currency”). The financial statements are presented in RM, which is also the Fund’s functional currency. 2.8 Unitholders' capital The unitholders’ contributions to the Fund meet the criteria to be classified as equity instruments under MFRS 132 Financial Instruments: Presentation . Those criteria include: (i) the units entitle the holder to a proportionate share of the Fund’s NAV; (ii) the units are the most subordinated class and class features are identical; (iii) there is no contractual obligations to deliver cash or another financial asset other than the obligation on the Fund to repurchase; and (iv) the total expected cash flows from the units over its life are based substantially on the profit or loss of the Fund. The outstanding units are carried at the redemption amount that is payable at each financial year if unitholder exercises the right to put the unit back to the Fund. Units are created and cancelled at prices based on the Fund's NAV per unit at the time of creation or cancellation. The Fund's NAV per unit is calculated by dividing the net assets attributable to unitholders with the total number of outstanding units. Distribution equalisation represents the average distributable amount included in the creation and cancellation prices of units. This amount is either refunded to unitholders by way of distribution and/or adjusted accordingly when units are cancelled. 2.9 Distributions Any distribution to the Fund’s unitholders is accounted for as a deduction from realised reserves except where distributions is sourced out of distribution equalisation which is accounted for as a deduction from unitholders’ capital. A proposed distribution is recognised as a liability in the financial year in which it is approved. Distribution is either reinvested or paid in cash to the unitholders on the income payment date. Reinvestment of units is based on the NAV per unit on the income payment date, which is also the time of creation. 2.10 Cash and cash equivalents Cash and cash equivalents comprise cash at bank and Shariah-compliant deposit with a licensed Islamic financial institution with original maturity of three months or less which have an insignificant risk of changes in value. 24
28. MAYBANK MALAYSIA SUKUK FUND 2 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) 2.11 Revenue / Income Revenue is measured at the fair value of consideration received or receivable. Profit income from Sukuk includes amortisation of premium and accretion of discount, and is recognised using the effective profit rate method. Profit income from Shariah-compliant deposit with a licensed Islamic financial institution is recognised on the accrual basis using the effective profit rate method. Realised gain or loss on disposal of Sukuk is accounted for as the difference between the net disposal proceeds and the carrying amount of the investments, determined on cost adjusted for accretion of discount or amortisation or premium. Other revenue/income is generally recognised when the Fund satisfies a performance obligation by transferring a promised good or service or an asset to a customer. An asset is transferred when (or as) the customer obtains control of that asset. 2.12 Taxation Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date. Current taxes are recognised in profit or loss, except to the extent that the tax relates to items recognised outside profit or loss, either in other comprehensive income or directly in equity. Current tax expense is determined according to Malaysian tax laws at the current tax rate based upon the taxable profit earned during the financial year. No deferred tax is recognised as no temporary differences have been identified. 2.13 Segment information Operating segments are reported in a manner consistent with the internal reporting used by the chief operating decision-maker. The chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments. 2.14 Critical accounting estimates and judgements The preparation of the Fund's financial statements requires the Manager to make judgements, estimates and assumption that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability in the future. No major judgement have been made by the Manager in applying the Fund's accounting policies. There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities. 25
29. MAYBANK MALAYSIA SUKUK FUND 3 . SHARIAH INFORMATION OF THE FUND The Shariah Adviser confirmed that the investment portfolio of the Fund during the financial year ended 31 January 2022 is Shariah-compliant. 4. PROFIT INCOME 2022 RM Profit income from Sukuk Profit income from Shariah-compliant deposit Amortisation of premium, net of accretion of discount 5. 85,430,413 1,721,822 (9,159,394) 77,992,841 2021 RM 63,379,257 2,620,958 (6,342,135) 59,658,080 MANAGER'S FEE The Manager's fee is computed daily. The fee is based on 0.35% (2021: 0.35%) per annum ("p.a.") on the NAV of the Fund, before deducting Manager's fee and Trustee's fee for the day. 6. TRUSTEE'S FEE The Trustee's fee is computed on a daily basis at 0.05% (2021: 0.05%) p.a. of the NAV of the Fund before deducting the Manager's fee and Trustee's fees. 7. TAXATION 2022 RM 2021 RM - - Tax charge for the financial year: Current income tax expense Income tax is calculated at the Malaysian statutory tax rate of 24% (2021: 24%) of the estimated assessable income for the financial year. The tax charge for the financial year is in relation to the taxable income earned by the Fund after deducting tax allowable expenses. In accordance with Schedule 6 of the Income Tax Act 1967, the profit income earned by the Fund from its investment in Sukuk and Shariah-compliant deposit is exempted from tax. 26
30. MAYBANK MALAYSIA SUKUK FUND 7 . TAXATION (CONT'D) A reconciliation of income tax expense applicable to net (loss)/income before taxation at the statutory income tax rate to income tax expense at the effective income tax rate is as follows: 2022 RM 8. 2021 RM Net (loss)/income before taxation (14,813,609) 64,556,807 Tax at Malaysian statutory rate of 24% (2021: 24%) Income not subject to tax Loss not deductible for tax purposes Expenses not deductible for tax purposes Tax expense for the financial year (3,555,266) (17,641,813) 19,226,321 1,970,758 - 15,493,634 (17,030,563) 1,536,929 - FINANCIAL ASSETS AT FVTPL 2022 RM 2021 RM 1,521,491,973 1,932,684,464 Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 5,000,000 5,033,360 4,934,600 0.30 5,000,000 5,000,000 25,000,000 35,000,000 5,130,802 5,394,940 27,783,590 38,309,332 5,194,600 5,377,600 27,491,750 38,063,950 0.31 0.33 1.66 2.30 5,000,000 5,000,000 5,000,000 15,000,000 5,000,093 5,000,103 5,000,112 15,000,308 4,965,500 4,952,500 4,942,700 14,860,700 0.30 0.30 0.30 0.90 5,000,000 5,000,000 15,000,000 25,000,000 5,022,425 5,392,839 15,700,690 26,115,954 5,178,800 5,242,350 15,923,400 26,344,550 0.31 0.32 0.96 1.59 Sukuk Sukuk 2022 AEON Credit Service Bhd - 3.80% - 10.02.2027 Anih Bhd - 5.34% - 29.11.2023 - 5.70% - 27.11.2026 - 6.00% - 29.11.2028 AZRB Capital Sdn Bhd - 5.15% - 26.12.2029 - 5.25% - 26.12.2030 - 5.35% - 26.12.2031 Besraya (M) Sdn Bhd - 5.04% - 26.07.2024 - 5.20% - 28.07.2026 - 5.36% - 28.07.2028 27
31. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 7,000,000 6,999,793 6,558,020 0.40 25,000,000 35,000,000 5,000,000 10,000,000 12,700,000 87,700,000 24,998,154 34,997,939 5,375,503 9,998,960 12,720,565 88,091,121 24,677,750 35,259,700 5,067,350 10,071,600 12,744,323 87,820,723 1.49 2.14 0.31 0.61 0.77 5.32 Cypark Ref Sdn Bhd - 5.11% - 30.06.2028 5,000,000 5,067,180 5,053,350 0.31 DanaInfra Nasional Bhd - 4.90% - 21.02.2033 5,000,000 5,521,341 5,377,700 0.33 Danajamin Nasional Bhd - 4.80% - 06.10.2022 2,500,000 2,502,452 2,534,650 0.15 Danum Capital Bhd - 4.68% - 14.02.2034 6,800,000 7,683,267 7,070,436 0.43 20,000,000 5,000,000 2,500,000 7,800,000 5,000,000 5,000,000 45,300,000 23,223,292 5,928,778 3,059,760 9,113,837 5,939,217 6,084,227 53,349,111 22,730,200 5,714,250 2,920,550 9,156,576 5,894,900 5,920,000 52,336,476 1.38 0.35 0.18 0.55 0.36 0.36 3.18 17,000,000 16,995,934 16,563,270 1.00 15,000,000 5,000,000 39,300,000 5,000,000 64,300,000 15,454,109 5,085,756 41,200,022 5,310,385 67,050,272 14,786,850 5,089,200 40,425,159 5,143,350 65,444,559 0.90 0.31 2.45 0.31 3.97 Sukuk (cont'd) 2022 (cont'd) Bank Pembangunan (M) Bhd - 3.18% - 11.10.2030 Country Garden Real Estate Sdn Bhd - 4.90% - 04.05.2026 - 5.25% - 27.03.2025 - 5.70% - 02.03.2027 - 6.40% - 06.05.2022 - 6.40% - 18.03.2022 Edra Energy Sdn Bhd - 6.19% - 04.07.2031 - 6.23% - 05.01.2032 - 6.39% - 05.01.2034 - 6.43% - 05.07.2034 - 6.47% - 05.01.2035 - 6.51% - 05.07.2035 Evyap Sabun Malaysia Bhd - 4.05% - 30.12.2025 Fortune Premiere Sdn Bhd - 3.99% - 11.09.2026 - 4.80% - 13.03.2023 - 5.05% - 05.09.2025 - 5.05% - 31.10.2025 28
32. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Sukuk (cont'd) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 10,000,000 5,000,000 15,000,000 10,301,698 5,167,186 15,468,884 9,785,400 4,968,950 14,754,350 0.59 0.30 0.89 3,000,000 13,000,000 13,000,000 29,000,000 3,004,850 13,025,184 13,017,726 29,047,760 2,981,550 12,740,000 12,361,700 28,083,250 0.18 0.77 0.75 1.70 10,000,000 10,059,687 9,682,800 0.59 10,000,000 10,000,000 5,000,000 25,000,000 10,013,867 10,593,052 5,006,630 25,613,549 9,533,800 10,246,300 5,040,950 24,821,050 0.58 0.62 0.31 1.51 5,000,000 5,000,000 16,100,000 26,100,000 4,999,686 4,999,644 16,104,477 26,103,807 5,075,400 5,142,650 16,180,178 26,398,228 0.31 0.31 0.98 1.60 4,300,000 2,000,000 5,000,000 5,000,000 20,000,000 5,000,000 41,300,000 4,453,643 2,214,091 5,440,517 5,439,041 22,658,889 5,502,585 45,708,766 4,542,004 2,126,360 5,357,050 5,380,650 21,579,000 5,569,300 44,554,364 0.28 0.13 0.32 0.33 1.31 0.34 2.71 2022 (cont'd) Gamuda Bhd - 4.10% - 28.06.2030 - 4.26% - 16.11.2029 Gamuda Land (T12) Bhd - 3.55% - 12.08.2025 - 3.75% - 12.08.2027 - 3.90% - 12.08.2030 Guan Chong Bhd - 3.84% - 03.12.2027 IJM Corporation Bhd - 3.85% - 23.08.2030 - 4.76% - 10.04.2029 - 4.83% - 10.06.2022 Infracap Resources Sukuk - 4.60% - 15.04.2033 - 4.90% - 15.04.2036 - 4.40% - 15.04.2031 Jimah East Power Sdn Bhd - 5.52% - 04.06.2026 - 5.59% - 04.06.2027 - 5.68% - 04.12.2028 - 5.74% - 04.06.2029 - 5.77% - 04.12.2029 - 6.20% - 04.12.2031 29
33. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 10,000,000 22,300,000 10,000,000 20,000,000 15,000,000 5,000,000 82,300,000 10,070,003 23,249,030 10,234,913 20,702,427 15,372,550 5,222,660 84,851,583 10,104,600 22,174,228 10,183,600 20,061,400 14,810,100 5,074,050 82,407,978 0.61 1.34 0.62 1.21 0.90 0.31 4.99 10,000,000 10,234,616 9,749,400 0.59 5,000,000 10,000,000 15,000,000 5,451,323 11,156,175 16,607,498 5,148,600 10,512,200 15,660,800 0.31 0.64 0.95 12,000,000 20,000,000 32,000,000 11,998,972 19,999,199 31,998,171 11,569,200 19,042,800 30,612,000 0.70 1.15 1.85 Manjung Island Energy Bhd - 4.90% - 25.11.2031 10,000,000 10,744,375 10,610,300 0.64 MBB - 4.13% - Perpetual 10,000,000 10,037,234 10,160,600 0.62 6,900,000 6,200,000 15,000,000 28,100,000 7,053,730 6,445,269 16,349,348 29,848,347 7,094,511 6,660,784 16,294,500 30,049,795 0.43 0.40 0.99 1.82 2,000,000 28,800,000 19,800,000 50,600,000 2,005,334 29,086,774 19,943,072 51,035,180 2,003,560 28,007,712 18,862,272 48,873,544 0.12 1.70 1.14 2.96 Sukuk (cont'd) 2022 (cont'd) Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd - 4.25% - 01.12.2023 - 4.75% - 01.12.2028 - 4.75% - 02.12.2024 - 4.75% - 02.12.2027 - 4.75% - 30.11.2029 - 5.25% - 02.12.2030 Kuala Lumpur Kepong Bhd - 3.75% - 27.09.2029 Lebuhraya Duke Fasa 3 Sdn Bhd - 5.64% - 22.08.2031 - 5.95% - 23.08.2034 Malaysia Airports Holdings Bhd - 3.30% - 05.11.2027 - 3.60% - 06.11.2030 MMC Corporation Bhd - 5.29% - 26.04.2023 - 5.70% - 24.03.2028 - 5.95% - 12.11.2027 Malaysian Resources Corporation - 3.85% - 14.08.2023 - 4.25% - 13.08.2027 - 4.45% - 14.08.2030 30
34. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % Mitsubishi UFJ (Malaysia) - 2.88% - 24.03.2023 20,000,000 20,019,311 20,078,000 1.22 National Bank of Abu Dhabi - 4.75% - 09.12.2027 14,500,000 14,958,358 15,085,800 0.91 9,000,000 10,000,000 19,000,000 8,997,706 9,999,370 18,997,076 8,996,580 9,987,400 18,983,980 0.54 0.60 1.14 15,000,000 5,000,000 500,000 2,500,000 5,000,000 28,000,000 10,165,664 5,018,843 499,999 2,629,842 4,999,915 23,314,263 9,764,550 4,653,050 490,580 2,476,975 4,858,100 22,243,255 0.59 0.28 0.03 0.15 0.29 1.34 3,700,000 13,500,000 21,000,000 38,200,000 3,891,280 14,104,363 22,801,166 40,796,809 3,753,946 13,644,450 21,373,800 38,772,196 0.23 0.83 1.29 2.35 13,000,000 5,000,000 10,000,000 10,000,000 38,000,000 13,010,912 5,006,898 10,017,740 10,021,691 38,057,241 12,845,690 4,896,150 9,715,300 9,638,300 37,095,440 0.78 0.30 0.59 0.58 2.25 8,000,000 7,921,935 7,256,800 0.44 Sukuk (cont'd) 2022 (cont'd) OSK Rated Bond Sdn Bhd - 4.39% - 28.04.2028 - 4.52% - 30.04.2031 Pengurusan Aset Air Berhad - 1.00% - 05.02.2036 - 3.12% - 27.09.2030 - 3.32% - 04.06.2027 - 3.90% - 30.10.2029 - 4.00% - 30.10.2034 Penang Port Sdn Bhd - 4.30% - 24.12.2026 - 4.48% - 27.12.2029 - 4.68% - 26.12.2031 Perbadanan Kemajuan Pertanian Negeri Pahang - 3.96% - 30.10.2024 - 4.11% - 30.10.2025 - 4.21% - 30.10.2026 - 4.36% - 29.10.2027 Pengerang LNG (TWO) Sdn Bhd - 3.31% - 21.10.2034 31
35. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 10,000,000 5,000,000 700,000 10,000,000 5,000,000 5,000,000 35,700,000 10,619,741 5,395,646 729,909 11,061,838 5,488,213 5,364,649 38,659,996 10,538,400 5,315,950 745,423 10,733,900 5,489,200 5,232,700 38,055,573 0.64 0.32 0.05 0.65 0.33 0.32 2.31 Krung Thai Bank Public Company Limited Company Limited (Cayman Branch) 5,000,000 - 4.10% - 19.03.2031 4,999,800 4,970,100 0.30 10,000,000 15,000,000 5,000,000 9,000,000 39,000,000 10,013,315 15,014,967 4,999,887 9,463,796 39,491,965 9,803,700 14,374,500 4,606,500 8,723,340 37,508,040 0.59 0.87 0.28 0.53 2.27 5,000,000 15,000,000 20,000,000 4,999,717 15,033,356 20,033,073 5,000,000 15,004,650 20,004,650 0.30 0.91 1.21 5,000,000 5,000,000 10,000,000 4,999,856 4,999,821 9,999,677 5,001,050 5,026,450 10,027,500 0.30 0.30 0.60 10,000,000 10,237,660 10,371,500 0.63 Sabah Credit Corporation - 4.90% - 16.02.2022 5,000,000 5,001,097 5,003,850 0.30 Sime Darby Plantation Bhd - 5.65% - Perpetual 4,400,000 4,430,251 4,697,220 0.28 Sukuk (cont'd) 2022 (cont'd) Projek Lebuhraya Usahasama Bhd - 4.80% - 12.01.2027 - 4.96% - 12.01.2029 - 5.00% - 11.01.2030 - 5.07% - 10.01.2031 - 5.27% - 12.01.2033 - 4.72% - 12.01.2026 Pelabuhan Tanjung Lepas - 3.15% - 28.08.2025 - 3.30% - 27.08.2027 - 3.40% - 28.08.2030 - 4.05% - 18.06.2030 reNIKOLA Solar Sdn Bhd - 4.30% - 11.05.2028 - 4.60% - 09.05.2031 SP Setia Berhad - 3.85% - 25.06.2026 - 4.30% - 23.06.2028 SAJ Capital Sdn Bhd - 5.31% - 26.01.2024 32
36. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 15,000,000 15,000,000 30,000,000 14,999,843 14,999,457 29,999,300 14,544,150 14,251,800 28,795,950 0.88 0.86 1.74 5,000,000 35,000,000 28,000,000 3,200,000 30,000,000 101,200,000 5,000,017 35,000,218 30,934,807 3,413,642 34,123,299 108,471,983 4,741,600 32,884,600 29,994,160 3,502,816 33,060,000 104,183,176 0.29 1.99 1.82 0.21 2.00 6.31 2,000,000 3,000,000 5,000,000 1,999,829 3,028,775 5,028,604 1,955,800 2,948,310 4,904,110 0.12 0.18 0.30 5,000,000 10,000,000 10,000,000 15,000,000 40,000,000 5,376,733 11,401,159 10,817,665 16,278,386 43,873,943 5,240,900 10,578,100 10,695,500 16,091,250 42,605,750 0.32 0.64 0.65 0.97 2.58 Sunway Treasury Sukuk Sdn Bhd - 3.45% - 17.07.2023 10,000,000 10,000,060 10,023,100 0.61 Tanjung Bin Power - 5.28% - 16.08.2027 4,500,000 4,664,150 4,778,415 0.29 5,000,000 5,000,000 30,000,000 40,000,000 5,550,173 5,559,056 35,535,359 46,644,588 5,323,950 5,406,250 33,277,800 44,008,000 0.32 0.33 2.02 2.67 Sukuk (cont'd) 2022 (cont'd) Sime Darby Property Bhd - 3.42% - 03.12.2027 - 3.64% - 03.12.2030 Sarawak Energy Bhd - 3.30%- 14.06.2030 - 3.65%- 15.06.2035 - 4.95% - 25.11.2033 - 5.18%- 25.04.2036 - 5.32%- 03.12.2032 SME Bank - 3.10% - 31.07.2026 - 3.30% - 23.04.2027 Southern Power Generation Sdn Bhd - 5.09% - 30.04.2029 - 5.25% - 30.04.2031 - 5.41% - 29.04.2033 - 5.45% - 31.10.2033 Tanjung Bin Energy Issuer Bhd - 5.70% - 16.03.2027 - 5.95% - 14.09.2029 - 6.20% - 16.03.2032 33
37. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 17,000,000 15,000,000 2,800,000 10,000,000 44,800,000 18,305,779 16,885,540 2,784,346 9,898,727 47,874,392 18,490,560 15,927,750 2,508,212 8,783,900 45,710,422 1.12 0.96 0.15 0.53 2.76 24,060,000 24,159,115 23,921,655 1.45 15,000,000 5,000,000 5,000,000 25,000,000 15,293,963 5,246,187 5,268,088 25,808,238 14,920,500 4,954,850 4,948,000 24,823,350 0.90 0.30 0.30 1.50 The Holstein Milk Company Sdn Bhd - 3.72% - 28.05.2026 5,000,000 4,999,805 4,926,300 0.30 TNB Northern Energy Bhd - 5.18% - 30.05.2033 1,700,000 1,864,924 1,754,434 0.11 25,000,000 19,000,000 29,000,000 20,000,000 10,000,000 103,000,000 25,101,330 19,064,737 29,310,187 20,833,603 10,324,076 104,633,933 24,749,250 18,979,100 29,533,310 20,446,000 10,291,800 103,999,460 1.50 1.15 1.79 1.24 0.62 6.30 14,400,000 5,000,000 20,000,000 39,400,000 14,408,104 5,150,185 21,613,437 41,171,726 14,129,136 5,144,200 21,237,400 40,510,736 0.86 0.31 1.29 2.46 26,600,000 27,720,463 27,011,768 1.64 Sukuk (cont'd) 2022 (cont'd) Tenaga Nasional Bhd - 5.18% - 03.08.2037 - 4.98% - 27.08.2038 - 3.25% - 10.08.2035 - 3.55% - 10.08.2040 TG Excellence Bhd - 3.95% - Perpetual Telekosang Hydro One Sdn Bhd - 5.10%- 06.08.2029 - 5.15%- 06.08.2030 - 5.30%- 06.08.2032 UEM Sunrise Bhd - 4.30% - 16.02.2026 - 4.60% - 20.05.2026 - 5.00%- 19.05.2023 - 5.15%- 31.10.2025 - 5.32%- 12.11.2024 UMW Holdings Bhd - 3.03%- 05.11.2025 - 4.65%- 13.09.2023 - 5.22%- 02.10.2026 YTL Power International Bhd - 5.05%- 03.05.2027 34
38. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Sukuk (cont'd) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 1,500,060,000 1,558,912,618 1,521,491,973 92.13 2022 (cont'd) Total Sukuk Unrealised loss on financial assets at FVTPL (37,420,645) 2021 AEON Credit Service Bhd - 3.80% - 10.02.2027 10,000,000 10,078,642 10,263,100 0.48 5,000,000 10,000,000 14,000,000 5,000,000 34,000,000 5,199,105 10,945,352 15,394,924 5,339,172 36,878,553 5,345,750 11,355,900 16,531,480 5,789,750 39,022,880 0.25 0.53 0.77 0.27 1.82 5,000,000 5,000,000 5,000,000 15,000,000 5,000,000 5,000,000 5,000,000 15,000,000 5,260,950 5,262,700 5,262,200 15,785,850 0.25 0.25 0.25 0.75 5,000,000 10,000,000 5,000,000 15,000,000 35,000,000 5,015,081 10,063,046 5,472,869 15,793,870 36,344,866 5,055,050 10,658,900 5,482,900 16,831,800 38,028,650 0.24 0.50 0.26 0.79 1.79 BGSM Management Sdn Bhd - 5.60% - 27.12.2023 5,000,000 5,165,922 5,402,400 0.25 Bank Pembangunan (M) Bhd - 3.18% - 11.10.2030 7,000,000 7,000,000 6,885,480 0.32 Anih Bhd - 5.34% - 29.11.2023 - 5.70% - 27.11.2026 - 6.00% - 29.11.2028 - 5.85% - 29.11.2027 AZRB Capital Sdn Bhd - 5.15% - 26.12.2029 - 5.25% - 26.12.2030 - 5.35% - 26.12.2031 Besraya (M) Sdn Bhd - 4.80% - 28.07.2021 - 5.04% - 26.07.2024 - 5.20% - 28.07.2026 - 5.36% - 28.07.2028 35
39. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Sukuk (cont'd) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 35,000,000 5,000,000 10,000,000 17,700,000 67,700,000 35,000,000 5,441,018 10,000,000 17,964,148 68,405,166 37,409,050 5,522,450 10,412,100 18,358,794 71,702,394 1.75 0.26 0.49 0.86 3.36 5,000,000 5,075,984 5,421,800 0.25 10,000,000 5,000,000 5,000,000 5,000,000 25,000,000 10,000,000 5,528,329 5,053,882 5,558,825 26,141,036 10,393,300 5,684,500 5,674,650 5,780,200 27,532,650 0.49 0.27 0.27 0.27 1.30 10,000,000 10,077,393 10,346,300 0.48 5,000,000 10,000,000 15,000,000 5,018,690 11,385,060 16,403,750 5,032,500 11,122,900 16,155,400 0.24 0.52 0.76 5,000,000 10,000,000 15,000,000 5,000,000 2,500,000 12,500,000 5,000,000 5,000,000 20,000,000 80,000,000 5,305,206 10,677,273 16,079,411 6,003,921 3,095,747 14,744,989 6,142,665 5,562,141 23,506,255 91,117,608 5,508,550 11,194,800 17,148,000 5,993,000 3,072,350 15,439,375 6,233,000 5,933,650 23,873,400 94,396,125 0.26 0.52 0.80 0.28 0.14 0.72 0.29 0.28 1.12 4.41 16,800,000 16,800,000 16,819,488 0.79 2021 (cont'd) Country Garden Real Estate Sdn Bhd - 5.25% - 27.03.2025 - 5.70% - 02.03.2027 - 6.40% - 06.05.2022 - 6.40% - 18.03.2022 Cypark Ref Sdn Bhd - 5.11% - 30.06.2028 DanaInfra Nasional Bhd - 3.47% - 26.09.2029 - 4.79% - 27.11.2034 - 4.84% - 11.02.2039 - 4.90% - 21.02.2033 Danajamin Nasional Bhd - 4.80% - 06.10.2027 Danum Capital Bhd - 3.29% - 13.05.2030 - 4.68% - 14.02.2034 Edra Energy Sdn Bhd - 5.82% - 4.07.2025 - 5.88% - 03.07.2026 - 5.97% - 05.01.2028 - 6.23% - 05.01.2032 - 6.39% - 05.01.2034 - 6.43% - 05.07.2034 - 6.51% - 05.07.2035 - 6.15% - 03.01.2031 - 6.19% - 04.07.2031 Evy ap- 4.05% - 30.12.2025 36
40. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Sukuk (cont'd) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 10,000,000 15,000,000 5,000,000 5,000,000 10,000,000 39,100,000 5,000,000 89,100,000 10,006,773 15,544,677 5,161,308 5,035,663 10,170,430 41,478,121 5,388,326 92,785,298 10,311,900 15,564,300 5,201,450 5,254,850 10,488,600 42,298,771 5,416,350 94,536,221 0.48 0.73 0.24 0.25 0.49 1.98 0.25 4.42 10,000,000 7,000,000 15,000,000 32,000,000 10,331,909 7,226,315 15,080,978 32,639,202 10,278,800 7,298,340 15,559,350 33,136,490 0.48 0.34 0.73 1.55 6,100,000 6,102,018 6,119,703 0.29 10,000,000 10,000,000 20,000,000 11,552,931 10,780,051 22,332,982 11,170,000 10,613,000 21,783,000 0.52 0.50 1.02 13,000,000 13,000,000 13,000,000 39,000,000 13,026,623 13,029,470 13,019,689 39,075,782 13,057,720 13,041,730 13,002,990 39,102,440 0.61 0.61 0.61 1.83 10,000,000 10,068,755 10,082,300 0.47 10,000,000 10,000,000 5,000,000 25,000,000 50,000,000 10,015,221 10,663,628 5,025,503 26,042,204 51,746,556 9,961,800 10,707,200 5,130,100 27,254,000 53,053,100 0.47 0.50 0.24 1.28 2.49 2021 (cont'd) Fortune Premiere Sdn Bhd - 3.90% - 17.12.2024 - 3.99% - 11.09.2026 - 4.80% - 13.03.2023 - 4.85% - 02.11.2023 - 4.85% - 07.09.2023 - 5.05% - 05.09.2025 - 5.05% - 31.10.2025 Gamuda Bhd - 4.10% - 28.06.2030 - 4.26% - 16.11.2029 - 4.79% - 16.03.2023 Gulf Investment Corporation - 5.10% - 16.03.2021 Government Investment Issue - 4.47% - 15.09.2039 - 3.47% - 15.10.2030 Gamuda Land (T12) Bhd - 3.55% - 12.08.2025 - 3.75% - 12.08.2027 - 3.90% - 12.08.2030 Guan Chong Bhd - 3.84% - 03.12.2027 IJM Corporation Bhd - 3.85% - 23.08.2030 - 4.76% - 10.04.2029 - 4.83% - 10.06.2022 - 5.05% - 18.08.2028 37
41. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Sukuk (cont'd) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 4,300,000 2,000,000 5,000,000 5,000,000 12,000,000 5,000,000 33,300,000 4,485,085 2,250,138 5,495,280 5,489,039 13,667,463 5,541,637 36,928,642 4,777,085 2,254,820 5,738,150 5,781,500 13,946,280 6,085,750 38,583,585 0.22 0.11 0.27 0.27 0.65 0.28 1.80 2,000,000 2,074,503 2,246,740 0.11 10,000,000 20,000,000 15,000,000 10,000,000 10,000,000 20,000,000 22,000,000 5,000,000 112,000,000 10,107,408 20,911,673 15,468,487 10,432,729 10,501,324 20,807,593 22,505,960 5,242,742 115,977,916 10,304,800 21,319,600 15,804,600 10,599,900 10,646,600 21,333,400 23,421,640 5,512,550 118,943,090 0.48 1.00 0.74 0.50 0.50 1.00 1.10 0.26 5.58 10,000,000 10,261,217 10,390,100 0.49 5,000,000 10,000,000 15,000,000 5,488,449 11,222,348 16,710,797 5,466,100 11,166,600 16,632,700 0.26 0.52 0.78 12,000,000 20,000,000 32,000,000 11,999,029 20,000,000 31,999,029 12,027,720 19,869,000 31,896,720 0.56 0.93 1.49 5,000,000 5,227,935 5,599,300 0.26 2021 (cont'd) Jimah East Power Sdn Bhd - 5.52% - 04.06.2026 - 5.59% - 04.06.2027 - 5.68% - 04.12.2028 - 5.74% - 04.06.2029 - 5.77% - 04.12.2029 - 6.20% - 04.12.2031 Kimanis Power Sdn Bhd - 5.40% - 06.08.2027 Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd - 4.25% - 01.12.2023 - 4.75% - 01.12.2028 - 4.75% - 02.12.2024 - 4.75% - 02.12.2025 - 4.75% - 02.12.2026 - 4.75% - 02.12.2027 - 4.75% - 30.11.2029 - 5.25% - 02.12.2030 Kuala Lumpur Kepong Bhd - 3.75% - 27.09.2029 Lebuhraya Duke Fasa 3 Sdn Bhd - 5.64% - 22.08.2031 - 5.95% - 23.08.2034 Malaysia Airports Holdings Bhd - 3.30% - 05.11.2027 - 3.60% - 06.11.2030 Malakoff Power Bhd - 5.65% - 17.12.2025 38
42. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 5,000,000 4,988,897 5,228,150 0.24 10,000,000 20,000,000 30,000,000 10,695,590 21,626,175 32,321,765 11,342,700 22,871,400 34,214,100 0.53 1.07 1.60 5,000,000 10,000,000 15,000,000 5,000,000 10,204,856 15,204,856 5,175,950 10,458,200 15,634,150 0.24 0.49 0.73 6,900,000 31,000,000 2,000,000 5,900,000 45,800,000 7,174,329 32,390,570 2,034,808 6,238,976 47,838,683 7,174,689 34,215,630 2,179,060 6,586,524 50,155,903 0.34 1.60 0.10 0.31 2.35 10,000,000 28,600,000 18,600,000 57,200,000 10,043,345 28,936,581 18,804,351 57,784,277 10,093,600 29,100,500 18,884,394 58,078,494 0.47 1.36 0.88 2.71 Mumtaz Rakyat Sukuk Bhd - 4.95% - 19.06.2026 15,000,000 15,063,595 15,132,750 0.71 National Bank of Abu Dhabi - 4.75% - 09.12.2027 10,900,000 11,188,958 12,035,780 0.56 3,200,000 12,500,000 25,000,000 40,700,000 3,407,349 13,088,763 27,323,232 43,819,344 3,410,720 13,527,750 27,417,250 44,355,720 0.16 0.63 1.28 2.07 Sukuk (cont'd) 2021 (cont'd) Malaysia Airports Capital Bhd - 4.15% - 27.12.2024 Manjung Island Energy Bhd - 4.82% - 25.11.2030 - 4.90% - 25.11.2031 MBB - 4.08% - 25.09.2024 - 4.13% - Perpetual MMC Corporation Bhd - 5.29% - 26.04.2023 - 5.70% - 24.03.2028 - 5.80% - 12.11.2025 - 5.95% - 12.11.2027 Malaysia Resources Corporation Bhd - 3.85% - 14.08.2023 - 4.25% - 13.08.2027 - 4.45% - 14.08.2030 Penang Port Sdn Bhd - 4.30% - 24.12.2026 - 4.48% - 27.12.2029 - 4.68% - 26.12.2031 39
43. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Sukuk (cont'd) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 5,000,000 10,000,000 5,000,000 5,000,000 5,000,000 5,000,000 35,000,000 5,020,734 10,000,000 5,000,000 5,288,921 5,000,000 5,000,000 35,309,655 4,944,350 10,271,000 5,261,100 5,285,950 5,152,050 5,522,350 36,436,800 0.23 0.48 0.25 0.25 0.24 0.26 1.71 10,000,000 15,000,000 5,000,000 10,000,000 9,000,000 5,000,000 54,000,000 10,017,349 15,018,179 5,000,000 10,000,000 9,511,202 5,000,000 54,546,730 10,057,500 15,051,750 4,978,900 10,418,500 9,437,940 5,579,950 55,524,540 0.47 0.70 0.23 0.49 0.44 0.26 2.59 5,000,000 5,000,000 10,000,000 20,000,000 5,000,000 5,000,000 10,000,000 20,000,000 5,537,400 5,529,600 9,853,100 20,920,100 0.26 0.26 0.46 0.98 12,800,000 5,000,000 10,000,000 10,000,000 37,800,000 12,816,678 5,008,636 10,021,162 10,025,043 37,871,519 12,835,584 5,012,150 10,015,100 10,000,000 37,862,834 0.60 0.23 0.47 0.47 1.77 7,000,000 7,000,000 6,695,080 0.31 2021 (cont'd) Pengurusan Air SPV Bhd - 3.12% - 27.09.2030 - 3.32% - 04.06.2027 - 3.80% - 30.10.2026 - 3.90% - 30.10.2029 - 4.00% - 30.10.2034 - 4.54% - 23.02.2029 Perbadanan Tabung Pendidikan Tinggi Nasional - 3.15% - 28.08.2025 - 3.30% - 27.08.2027 - 3.40% - 28.08.2030 - 3.95% - 18.06.2027 - 4.05% - 18.06.2030 - 4.58% - 28.02.2034 Prasarana Malaysia Bhd - 4.38% - 12.03.2031 - 4.53% - 10.03.2034 - 3.75% - 23.03.2040 Perbadanan Kemajuan Pertanian Negeri Pahang - 3.96% - 30.10.2024 - 4.11% - 30.10.2025 - 4.21% - 30.10.2026 - 4.36% - 29.10.2027 Pengerang LNG (TWO) Sdn Bhd - 3.31% - 21.10.2034 40
44. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Sukuk (cont'd) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 10,000,000 5,000,000 20,700,000 15,000,000 10,000,000 5,000,000 65,700,000 10,733,038 5,444,908 21,453,786 16,750,531 11,045,740 5,451,091 70,879,094 11,031,300 5,643,100 23,535,279 17,192,400 11,656,900 5,445,450 74,504,429 0.52 0.26 1.10 0.80 0.55 0.25 3.48 5,000,000 5,000,000 5,159,650 0.24 5,000,000 5,000,000 10,000,000 5,030,750 5,029,745 10,060,495 5,345,850 5,121,200 10,467,050 0.25 0.24 0.49 3,600,000 10,000,000 13,600,000 3,654,677 10,355,160 14,009,837 3,684,816 10,654,800 14,339,616 0.17 0.50 0.67 15,000,000 15,000,000 30,000,000 15,000,208 15,000,000 30,000,208 15,054,000 15,020,400 30,074,400 0.70 0.70 1.40 10,000,000 15,000,000 35,000,000 5,000,000 28,000,000 5,000,000 30,000,000 8,300,000 136,300,000 10,701,860 14,999,999 35,000,000 5,641,208 31,134,746 5,350,265 34,428,282 8,846,298 146,102,658 11,137,500 15,155,250 34,770,400 5,590,150 32,036,760 5,801,950 35,430,300 9,791,095 149,713,405 0.52 0.71 1.63 0.26 1.50 0.27 1.66 0.46 7.01 5,000,000 4,994,226 5,465,500 0.26 2021 (cont'd) Projek Lebuhraya Usahasama Bhd - 4.80% - 12.01.2027 - 4.96% - 12.01.2029 - 5.00% - 11.01.2030 - 5.07% - 10.01.2031 - 5.27% - 12.01.2033 - 4.72% - 12.01.2026 Public Islamic Bank Bhd - 3.75% - 31.10.2029 Sabah Credit Corporation - 4.45% - 19.06.2026 - 4.90% - 16.02.2022 SAJ Capital Sdn Bhd - 5.19% - 26.01.2022 - 5.31% - 26.01.2024 Sime Darby Property Bhd - 3.42% - 03.12.2027 - 3.64% - 03.12.2030 Sarawak Energy Bhd - 4.85%- 19.01.2027 - 3.30%- 14.06.2030 - 3.65%- 15.06.2035 - 4.70% - 24.11.2028 - 4.95% - 25.11.2033 - 5.18%- 25.04.2036 - 5.32%- 03.12.2032 - 5.50%- 04.07.2029 Sarawak Hidro Sdn Bhd - 4.47% - 11.08.2027 41
45. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Sukuk (cont'd) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 4,400,000 4,542,774 4,930,024 0.23 10,000,000 10,000,000 5,000,000 5,000,000 15,000,000 45,000,000 10,842,513 11,528,480 5,308,915 5,439,561 16,359,964 49,479,433 11,305,600 11,553,300 5,821,000 5,840,950 17,583,600 52,104,450 0.53 0.54 0.27 0.27 0.82 2.43 10,000,000 10,000,000 10,080,600 0.47 20,000,000 4,500,000 4,500,000 5,000,000 5,000,000 5,000,000 44,000,000 23,413,426 4,689,691 4,754,557 5,394,401 5,527,994 5,551,911 49,331,980 24,725,200 5,059,215 5,159,565 5,873,250 5,959,750 6,096,650 52,873,630 1.16 0.24 0.24 0.27 0.28 0.29 2.48 300,000 310,710 332,124 0.02 17,000,000 10,000,000 12,800,000 9,900,000 49,700,000 18,363,122 11,573,343 12,725,111 9,811,235 52,472,811 19,769,640 11,385,800 12,142,208 9,369,855 52,667,503 0.92 0.53 0.57 0.44 2.46 20,000,000 20,371,520 20,716,200 0.97 2021 (cont'd) Sime Darby Bhd - 5.65%- Perpetual Southern Power Generation Sdn Bhd - 5.09%- 30.04.2029 - 5.25%- 30.04.2031 - 5.37%- 29.10.2032 - 5.41%- 29.04.2033 - 5.45% - 31.10.2033 Sunway Treasury Sukuk Sdn Bhd - 3.45%- 17.07.2023 Tanjung Bin Energy Issuer Bhd - 6.20%- 16.03.2032 - 5.28% - 16.08.2027 - 5.70%- 16.03.2027 - 5.85% - 15.09.2028 - 5.95%- 14.09.2029 - 6.10%- 14.03.2031 Telekom Malaysia Bhd - 4.58%- 03.09.2027 Tenaga Nasional Bhd - 5.18%- 03.08.2037 - 4.98%- 27.08.2038 - 3.25%- 10.08.2035 - 3.55%- 10.08.2040 TG Excellence Bhd - 3.95%- 26.02.2021 42
46. MAYBANK MALAYSIA SUKUK FUND 8 . FINANCIAL ASSETS AT FVTPL (CONT'D) Sukuk (cont'd) Quantity Unit Aggregate Cost RM Market Value RM Percentage of NAV % 10,000,000 5,000,000 5,000,000 20,000,000 10,068,613 5,269,529 5,287,488 20,625,630 10,563,000 5,273,750 5,281,250 21,118,000 0.49 0.25 0.25 0.99 1,700,000 1,876,626 1,882,189 0.09 7,000,000 5,000,000 5,000,000 40,800,000 20,000,000 15,000,000 92,800,000 7,017,081 5,000,000 5,087,749 41,560,187 21,037,881 15,644,025 95,346,923 7,034,370 5,037,200 5,142,800 42,003,192 21,013,800 15,771,750 96,003,112 0.33 0.24 0.24 1.97 0.98 0.74 4.50 9,400,000 5,000,000 30,000,000 44,400,000 9,400,001 5,240,350 32,894,129 47,534,480 9,420,868 5,249,100 33,262,200 47,932,168 0.44 0.25 1.56 2.25 46,100,000 48,365,146 50,178,007 2.35 1,798,400,000 1,882,662,382 1,932,684,464 90.46 2021 (cont'd) Telekosang Hydro One Sdn Bhd - 5.10%- 06.08.2029 - 5.15%- 06.08.2030 - 5.30%- 06.08.2032 TNB Northern Energy Bhd - 5.18% - 03.08.2037 UEM Sunrise Bhd - 3.90% - 21.09.2023 - 4.00% - 09.06.2023 - 4.75% - 22.03.2024 - 5.00%- 19.05.2023 - 5.15%- 31.10.2025 - 5.32%- 12.11.2024 UMW Holdings Bhd - 3.03%- 05.11.2025 - 4.65%- 13.09.2023 - 5.22%- 02.10.2026 YTL Power International Bhd - 5.05%- 03.05.2027 Total Sukuk Unrealised gain on financial assets at FVTPL 50,022,082 43
47. MAYBANK MALAYSIA SUKUK FUND 9 . SHARIAH-COMPLIANT DEPOSIT WITH A LICENSED ISLAMIC FINANCIAL INSTITUTION Shariah-compliant deposit with a licensed Islamic financial institution with maturity of: - less than 3 months 2022 RM 2021 RM 117,859,440 47,696,211 The weighted average effective profit rates (“WAEPR”) p.a. and average maturity of Shariah-compliant deposit with a licensed Islamic financial institution as at the reporting date are as follows: 2022 Shariah-compliant deposit with maturity of - less than 3 months 10. 2021 WAEPR % p.a. Average maturity Days WAEPR % p.a. Average maturity Days 1.75 3 1.75 4 AMOUNT DUE FROM BROKERS The amount due from brokers relate to the amount to be received from brokers arising from the sale of Sukuk. The settlement period for these receivables are within 3 working days from the deal date. 11. AMOUNT DUE FROM/TO MANAGER Note 2022 RM 2021 RM (a) Amount due from Manager Subscription of units (i) 7,520,870 138,259,409 (b) Amount due to Manager Redemption of units Manager's fee (ii) (iii) 12,755,956 500,974 13,256,930 8,907,600 608,730 9,516,330 (i) The amount represents amount receivable from the Manager for units subscribed. (ii) The amount represents amount payable to the Manager for units redeemed. (iii) The amount represents the amount payable to the Manager arising from the accruals for Manager's fee at the end of the financial year. The normal credit term for Manager's fee is 15 days (2021: 15 days). 44
48. MAYBANK MALAYSIA SUKUK FUND 12 . AMOUNT DUE TO TRUSTEE The amount due to Trustee relates to the amount payable arising from the accruals for Trustee's fee at the reporting date. The normal credit term for the Trustee's fee is 15 days (2021: 15 days). 13. TOTAL EQUITY 2022 RM Note Unitholders' capital Accumulated realised income Accumulated unrealised (loss)/income (a) (b) (c) 1,647,565,783 34,061,100 (30,169,061) 1,651,457,822 2021 RM 2,061,675,386 25,913,693 49,940,613 2,137,529,692 (a) Unitholders' capital 2022 No. of units At the beginning of the financial year Creation of units Reinvestment of units Cancellation of units Distribution equalisation (Note 14) At the end of the financial year 1,973,105,122 575,723,729 50,894,800 (1,010,772,634) RM 2,061,675,386 608,918,559 53,444,898 (1,071,891,547) 1,588,951,017 (4,581,513) 1,647,565,783 2021 No. of units 1,079,375,515 1,676,810,064 67,202,342 (850,282,799) 1,973,105,122 RM 1,107,561,160 1,835,145,006 72,634,836 (927,716,710) (25,948,906) 2,061,675,386 As at the end of the financial year, the total number and value of units held legally or beneficially by the Manager and its related party are as follows: 2022 No. of units The Manager MBB, the ultimate holding company of the Manager RM 2021 No. of units RM 1,341 1,394 1,287 1,394 803,466,150 803,467,491 835,073,231 835,074,624 69,915,316 69,916,603 75,741,562 75,742,956 In the opinion of the Manager, the above units were transacted at the prevailing market price. Other than the above, there were no other units held by the Manager or parties related to the Manager. 45
49. MAYBANK MALAYSIA SUKUK FUND 13 . TOTAL EQUITY (CONT'D) (b) Accumulated realised income 2022 RM At beginning of the financial year Net realised income for the financial year Distributions out of realised reserve (Note 14) At end of the financial year 25,913,693 65,296,065 (57,148,658) 34,061,100 2021 RM 2,136,209 61,075,978 (37,298,494) 25,913,693 (c) Accumulated unrealised (loss)/income 2022 RM At beginning of the financial year Net unrealised (loss)/income for the financial year At end of the financial year 14. 49,940,613 (80,109,674) (30,169,061) 2021 RM 46,459,784 3,480,829 49,940,613 DISTRIBUTIONS Net distributions to unitholders are from the following sources: 2022 RM Profit income Realised (loss)/gain on sale of investments Other income Previous year's net realised income* Less: Expenses Distributions out of realised reserve (Note 13(b)) Distributions out of distribution equalisation (Note 13(a)) Distributions for the financial year * 37,646,750 (2,165,024) 25,913,694 (4,246,762) 57,148,658 4,581,513 61,730,171 2021 RM 34,328,214 4,500,771 2,136,209 (3,666,700) 37,298,494 25,948,906 63,247,400 Part of the distributions in the current financial year were made from previous financial year's net realised income. Analysed as: Cash distribution Reinvestment of units Distribution for the financial year 2022 RM 2021 RM 8,285,273 53,444,898 61,730,171 37,253,582 25,993,818 63,247,400 A portion of the distributions declared were settled in the form of units and presented as 'reinvestment of units' in Note 13(a) on payment date. 46
50. MAYBANK MALAYSIA SUKUK FUND 14 . DISTRIBUTIONS (CONT'D) The gross and net distributions per unit and the distribution dates in the current and previous financial year is as follows: Gross/net distribution per unit (sen) Distribution dates (ex-date) 2022 28 July 2021 27 January 2022 2.00 1.50 3.50 2021 28 July 2020 30 January 2021 15. 1.93 2.00 3.93 TRANSACTIONS WITH BROKERS/DEALERS/FINANCIAL INSTITUTIONS Details of transactions with brokers/dealers for the financial year are as follows: 2022 Affin Hwang Investment Bank Bhd Affin Investment Bank Bhd Alliance Bank Bhd AmBank Bhd AmIslamic Bank Bhd Bank Islam Malaysia Bhd CIMB Bank Bhd CIMB Islamic Bank Bhd CIMB Investment Bank Bhd Hong Leong Bank Bhd Kenanga Investment Bank Bhd MBB * OCBC Bank (M) Bhd RHB Bank Bhd RHB Investment Bank Bhd Standard Chartered Bank (M) Bhd 2021 Value of trade RM Percentage of total trade % Value of trade RM Percentage of total trade % 26,708,950 17,300,000 15,000,000 50,000,000 35,011,000 112,022,000 60,000,000 10,000,000 107,966,086 6.15 3.99 3.46 11.52 8.07 25.81 13.82 2.30 24.88 270,428,767 8,608,172 20,039,319 62,902,470 70,668,122 74,844,884 139,041,798 10,000,000 311,767,358 407,370,153 - 18.99 0.60 1.41 4.42 4.96 5.26 9.77 0.70 21.90 28.61 - 434,008,036 100.00 48,206,942 1,423,877,985 3.38 100.00 47
51. MAYBANK MALAYSIA SUKUK FUND 15 . TRANSACTIONS WITH BROKERS/DEALERS/FINANCIAL INSTITUTIONS (CONT'D) Details of transactions, primarily Shariah-compliant deposit with a licensed Islamic financial institution for the financial year are as follows: 2022 2021 Percentage Percentage Value of of total Value of of total placements placements placements placements RM % RM % Public Islamic Bank Bhd 24,126,555,981 Maybank Islamic Bhd ("MIB") ** 20,820,000 Hong Leong Islamic Bank Bhd RHB Islamic Bank Bhd 24,147,375,981 * ** 16. 99.91 23,679,946,083 0.09 284,781,795 - 5,013,984,265 96,000,000 100.00 29,074,712,143 81.45 0.98 17.25 0.32 100.00 MBB is the ultimate holding company of the Manager. MIB is a subsidiary of MBB, the ultimate holding company of the Manager. SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES For the purpose of these financial statements, parties are considered to be related to the Fund or the Manager if the Fund or the Manager has the ability directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decision, or vice versa, or where the Fund or the Manager and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. In addition to the related party information disclosed elsewhere in the financial statements, below are the significant related party transactions and balances of the Fund. (a) Significant related party transactions MIB: Profit income on deposit MBB: Profit income on Sukuk 2022 RM 2021 RM 2,738 27,885 143,701 515,723 2022 RM 2021 RM 10,160,600 15,634,150 (b) Significant related party balances MBB: Sukuk The Manager is of the opinion that the transactions with the related parties have been entered into in the normal course of business and have been established on terms and conditions that are not materially different from that obtainable in transactions with unrelated parties. 48
52. MAYBANK MALAYSIA SUKUK FUND 17 . MANAGEMENT EXPENSE RATIO ("MER") The MER of the Fund is the ratio of the sum of fees and expenses incurred by the Fund to the average NAV of the Fund calculated on a daily basis. The fees and expenses include Manager’s fee, Trustee’s fee, auditors’ remuneration, tax agent’s fee and other administrative expenses. For the financial year ended 31 January 2022, the MER of the Fund stood at 0.41% (2021: 0.41%). 18. PORTFOLIO TURNOVER RATIO ("PTR") The PTR of the Fund is the ratio of average acquisitions and disposals of the Fund for the financial year to the average NAV of the Fund calculated on a daily basis. For the financial year ended 31 January 2022, the PTR of the Fund stood at 0.31 times (2021: 0.45 times). 19. SEGMENT INFORMATION The Portfolio Management Committee (the "PMC") of the Manager, being the chief operating decisionmaker, makes the strategic decisions on resources allocation of the Fund. The decisions are based on an integrated investment strategy to ensure the Fund achieves its targeted return with an acceptable level of risk within the portfolio. The PMC is responsible for the performance of the Fund by investing between 70% to 98% of the Fund's NAV in a portfolio of RM-denominated sukuk issued by Malaysian issuers and Malaysian financial institution with a minimum sukuk rating of 'AA-' by RAM or equivalent rating by MARC. The Manager will also invest between 2% to 30% of the Fund's NAV in Shariah-compliant liquid assets including Shariah-compliant money market instruments and placement in Shariah-compliant deposit. On this basis, the PMC considers the business of the Fund to have a single operating segment located in Malaysia. Asset allocation decisions are based on a single, integrated investments strategy and the Fund's performance is evaluated on an overall basis. The internal reporting of the Fund’s assets, liabilities and performance is prepared on a consistent basis with the measurement and recognition principles of MFRS and IFRS. There were no changes in the reportable operating segments during the financial year. 20. FINANCIAL INSTRUMENTS (a) Classification of financial instruments The Fund’s financial assets and financial liabilities are measured on an ongoing basis at either fair value or at amortised cost based on their respective classification. The significant accounting policies in Note 2.3 to Note 2.14 describe how the classes of financial instruments are measured and how income and expenses are recognised. The following table analyses the financial assets and financial liabilities (excluding tax-related matters) of the Fund in the statement of financial position as at the reporting date by the classes of financial instrument to which they are assigned, and therefore by the measurement basis. 49
53. MAYBANK MALAYSIA SUKUK FUND 20 . FINANCIAL INSTRUMENTS (CONT'D) (a) Classification of financial instruments (cont'd) 2022 Financial Assets Financial assets at FVTPL Shariah-compliant deposit with a licensed Islamic financial institution Profit income receivables Amount due from Manager Cash at bank Total financial assets Financial Liabilities Amount due to Manager Amount due to Trustee Other payables and accruals Total financial liabilities Financial assets at FVTPL RM Financial assets amortised cost RM Financial liabilities at amortised cost RM Total RM 1,521,491,973 - - 1,521,491,973 1,521,491,973 117,859,440 17,976,372 7,520,870 46,479 143,403,161 - 117,859,440 17,976,372 7,520,870 46,479 1,664,895,134 - - 13,256,930 71,568 13,256,930 71,568 - - 108,814 108,814 - - 13,437,312 13,437,312 1,932,684,464 - - 1,932,684,464 1,932,684,464 47,696,211 21,224,658 5,625,737 138,259,409 1,722,486 214,528,501 - 47,696,211 21,224,658 5,625,737 138,259,409 1,722,486 2,147,212,965 - - 9,516,330 86,961 9,516,330 86,961 - - 79,982 79,982 - - 9,683,273 9,683,273 2021 Financial Assets Financial assets at FVTPL Shariah-compliant deposit with a licensed Islamic financial institution Profit income receivables Amount due from brokers Amount due from Manager Cash at bank Total financial assets Financial Liabilities Amount due to Manager Amount due to Trustee Other payables and accruals Total financial liabilities 50
54. MAYBANK MALAYSIA SUKUK FUND 20 . FINANCIAL INSTRUMENTS (CONT'D) (b) Financial instruments that are carried at fair value The Fund's financial assets at FVTPL are carried at fair value and revalued on a daily basis based on fair value prices quoted by Bond Pricing Agency Malaysia Sdn Bhd. (c) Fair value hierarchy The Fund uses the following hierarchy for determining the fair value of financial instruments by valuation technique: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). Level 1 RM Level 2 RM Level 3 RM 2022 Financial assets at FVTPL - 1,521,491,973 - 2021 Financial assets at FVTPL - 1,932,684,464 - (d) Financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximations of fair value Other than its financial assets at FVTPL and derivative assets and liability, the Fund's financial instruments were not carried at fair value but their carrying amounts were reasonable approximations of fair value due to their short-term maturity. There were no financial instruments which were not carried at fair value and whose carrying amounts were not reasonable approximations of their respective fair values. 21. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (a) Introduction The Fund’s objective in managing risk is the creation and protection of unitholders’ capital. Risks are inherent in the Fund’s activities, but they are managed through a process of ongoing identification, measurement and monitoring of risks. Financial risk management is also carried out through sound internal control systems and adherence to the investment restrictions as stipulated in the Deeds, the SC’s Guidelines on Unit Trust Fund's and the CMSA. 51
55. MAYBANK MALAYSIA SUKUK FUND 21 . FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT'D) (b) Market risk Market risk is the risk that the fair value or future cash flows of Shariah-compliant financial instruments will fluctuate due to changes in market variables such as profit rates, foreign exchange rates and security prices. However, the Fund is not exposed to currency risk as it does not hold Shariah-compliant investments denominated in currencies other than in RM as at the reporting date. The Fund is also not exposed to equity price risk as it does not hold any equity investments as at the reporting date. (i) Profit rate risk Shariah-compliant unquoted fixed income securities are particularly sensitive to movements in market profit rates. When profit rates rise, the value of fixed income securities will fall and vice versa, thus affecting the NAV of the Fund. The sensitivity to market profit rate changes are normally greater for longer tenured securities when compared to shorter tenured securities. The table below summarises the sensitivity of the Fund's NAV to movements in prices of shariah-compliant unquoted fixed income securities held by the Fund as a result of movements in market profit rates. The analysis is based on the assumptions that the profit rates increased and decreased by 1% (100 basis points) with all other variables held constant. 2022 Effect on NAV Changes in (Decrease)/ profit rates Increase % RM Financial assets at FVTPL +1 -1 (5,412,797) 5,440,439 2021 Effect on NAV Changes in (Decrease)/ profit rates Increase % RM +1 -1 (468,841,377) 526,703,303 The impact to net income after tax is expected to be the same as the effects on NAV. (c) Credit risk Credit risk is the risk that the issuer/counterparty to a financial instrument will default on its obligation resulting in a financial loss to the Fund. The Fund is exposed to the risk of credit-related losses that can occur as a result of an issuer/counterparty's inability or unwillingness to honour its contractual obligations to make timely payments of profit, principal and proceeds from realisation of investments. These credit exposures exist within financing relationships and other transactions. The Manager manages the Fund’s credit risk by undertaking credit evaluation and close monitoring of any changes to the issuer/counterparty’s credit profile to minimise such risk. It is the Fund’s policy to enter into Shariah-compliant financial instruments with reputable counterparties. The Manager also closely monitors the creditworthiness of the Fund’s other counterparties (e.g. brokers, custodian, banks, etc.) by reviewing their credit ratings and credit profile on a regular basis. 52
56. MAYBANK MALAYSIA SUKUK FUND 21 . FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT'D) (c) Credit risk (cont'd) (i) Credit risk exposure At the reporting date, the Fund’s maximum exposure to credit risk is represented by the carrying amount of each class of financial asset recognised in the statement of financial position. None of the Fund's financial assets were past due or impaired as at the reporting date. (ii) Credit risk concentration The following tables analyse the Fund’s investments in financial assets at FVTPL, profit income receivables on Shariah-compliant unquoted fixed income securities, cash at bank, Shariahcompliant deposit with a licensed Islamic financial institution and profit income receivables on Shariah-compliant deposit with a licensed Islamic financial institution by rating categories. The ratings are obtained from RAM. 2022 2021 RM As a percentage of NAV % RM As a percentage of NAV % 443,260,835 1,185,709,419 26.48 71.80 374,689,029 236,517,587 194,176,121 1,121,065,793 - 17.53 11.06 9.08 52.45 - 28,404,010 1,657,374,264 1.72 100.00 76,879,289 2,003,327,819 3.60 93.72 Financial assets AAA AA1 AA2 AA3 AA Government Securities Not Rated (d) Liquidity risk Liquidity risk is defined as the risk that the Fund will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Exposure to liquidity risk arises because of the possibility that the Fund could be required to pay its liabilities or redeem its units earlier than expected. The Fund is exposed to cash redemptions of its units on a regular basis. Units sold to unitholders by the Manager are redeemable at the unitholders' option based on the Fund’s NAV per unit at the time of redemption calculated in accordance with the Deeds of the Fund. 53
57. MAYBANK MALAYSIA SUKUK FUND 21 . FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT'D) (d) Liquidity risk (cont'd) The Manager’s policy is to always maintain a prudent and sufficient level of liquid assets so as to meet normal operating requirements and expected redemption requests by unitholders. Liquid assets comprise cash at bank and Shariah-compliant deposit with a licensed Islamic financial institution which are capable of being converted into cash within 7 days. The following table summarises the maturity profile of the Fund’s financial assets, financial liabilities and unitholders' equity to provide a complete view of the Fund’s contractual commitments and liquidity: Less than 1 month RM More than 1 month RM Total RM 5,003,850 1,516,488,123 1,521,491,973 117,859,440 5,689,536 7,520,870 46,479 136,120,175 12,286,836 1,528,774,959 117,859,440 17,976,372 7,520,870 46,479 1,664,895,134 13,256,930 71,568 108,814 1,651,457,822 - 13,256,930 71,568 108,814 1,651,457,822 1,528,774,959 1,664,895,134 - 2022 Financial assets Financial assets at FVTPL Shariah-compliant deposit with a licensed Islamic financial institution Profit income receivables Amount due from Manager Cash at bank Total undiscounted financial assets Financial liabilities and unitholders' equity Amount due to Manager Amount due to Trustee Other payables and accruals Unitholders' equity Total undiscounted financial liabilities and unitholders' equity Liquidity (gap)/surplus 1,664,895,134 (1,528,774,959) 54
58. MAYBANK MALAYSIA SUKUK FUND 21 . FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT'D) (d) Liquidity risk (cont'd) 2021 Financial assets Financial assets at FVTPL Shariah-compliant deposit with a licensed Islamic financial institution Profit income receivables Amount due from brokers Amount due from Manager Cash at bank Total undiscounted financial assets Financial liabilities and unitholders' equity Amount due to Manager Amount due to Trustee Other payables and accruals Unitholders' equity Total undiscounted financial liabilities and unitholders' equity Liquidity (gap)/surplus Less than 1 month RM More than 1 month RM Total RM 20,716,200 1,911,968,264 1,932,684,464 47,696,211 6,860 5,625,737 138,259,409 1,722,486 21,217,798 - 47,696,211 21,224,658 5,625,737 138,259,409 1,722,486 214,026,903 1,933,186,062 2,147,212,965 9,516,330 86,961 79,982 2,137,529,692 - 9,516,330 86,961 79,982 2,137,529,692 1,933,186,062 2,147,212,965 - 2,147,212,965 (1,933,186,062) (i) Financial assets Shariah-compliant deposit with a licensed Islamic financial institution are grouped based on the expected date on which these assets will be realised. For other assets, the analysis into maturity groupings is based on the remaining period from the end of the reporting year to the contractual maturity date or if earlier, the expected date on which the assets will be realised. (ii) Financial liabilities The maturity grouping is based on the remaining period from the end of the reporting date to the contractual maturity date. When a counterparty has a choice of when the amount is paid, the liability is allocated to the earliest period in which the Fund is required to settle its financial obligation. (iii) Unitholders' equity As unitholders could request for redemption of their units within ten calendar days from transaction date, unitholders' equity has been categorised as having a maturity of “less than 1 month”. 55
59. MAYBANK MALAYSIA SUKUK FUND 22 . CAPITAL MANAGEMENT The capital of the Fund can vary depending on the demand for redemptions and subscriptions to the Fund. The Fund’s objectives for managing capital are: (a) To invest in investments meeting the description, risk exposure and generate higher returns the prescribed benchmark as indicated in its prospectus; (b) To achieve consistent returns while safeguarding capital by using various investment strategies; (c) To maintain sufficient liquidity to meet the expenses of the Fund and to meet redemption requests as they arise; and (d) To maintain sufficient fund size to ensure that the operations of the Fund are cost-efficient. No changes were made to the capital management objectives, policies or processes during the current and previous financial year. 56