MAYBANK FINANCIAL INSTITUTIONS INCOME FUND - Maybank Asset ...
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Maybank Asset Management Sdn Bhd
(421779-M)
Level 12 Tower C
Dataran Maybank
No.1 Jalan Maarof
59000 Kuala Lumpur, Malaysia
Telephone +603 2297 7888
Facsimile +603 2297 7998
www.maybank-am.com
MAYBANK FINANCIAL INSTITUTIONS
INCOME FUND
Annual report
For the financial year ended 31 January 2018MAYBANK FINANCIAL INSTITUTIONS INCOME FUND CONTENT PAGE Manager's report 1-5 Trustee's report 6 Statement by Manager 7 Independent auditors' report 8 - 11 Statement of comprehensive income 12 Statement of financial position 13 Statement of changes in equity 14 Statement of cash flows 15 Notes to the financial statements 16 - 43
MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
Manager’s report for the financial year ended 31 January 2018
A. Fund Information
1. Name of Fund
Maybank Financial Institutions Income Fund (the "Fund")
2. Type of Fund
Income
3. Category of Fund
Wholesale fixed income fund
4. Duration of Fund
The Fund is an open-ended fund.
5. Fund launch date
17 December 2009
6. Fund’s investment objective
The objective of the Fund is to achieve regular income stream which is deriving from the
portfolio.
7. Fund distribution policy
The Fund intends to distribute income, if any, at least half-yearly on best effort basis. However,
the Manager reserves the right not to distribute income, at its absolute discretion.
8. Fund's performance benchmark
12-month Maybank fixed deposit rate.
9. Fund's investment policy and principal investment strategy
The Fund seeks to achieve its objective by investing up to 95% of its Net Asset Value ("NAV")
in fixed income securities issued by financial institutions and/or bank guaranteed fixed income
securities.
The Manager will also invest between 5% to 100% of the Fund’s NAV in fixed deposits and/or
money market instruments.
1MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
Manager’s report for the financial year ended 31 January 2018 (cont'd)
B. Performance Review
Returns of the Fund and its benchmark for the financial year ended 31 January 2018 are as
follows:
The Fund Benchmark
Period
% %
1 February 2018 to 31 January 2018 4.33 3.10
Performance of the Fund for the financial year ended 31 January 2018:
Maybank Financial Institutional Income
5.00% 12-Months Maybank Fixed Deposit Rate
4.50%
4.33%
4.00%
3.50%
3.10%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
16 May 17
14 Nov 17
10 Dec 17
25 Mar 17
07 Jul 17
01 Feb 17
27 Feb 17
11 Jun 17
05 Jan 18
31 Jan 18
20 Apr 17
19 Oct 17
02 Aug 17
28 Aug 17
23 Sep 17
Source: Novagni Analytics and Advisory Sdn Bhd, as at 31 January 2018
Investors are reminded that past performance of the Fund is not necessarily indicative of its future
performance and that unit prices and investment returns may fluctuate.
The Fund recorded a return of 4.33% for the financial year ended 31 January 2018, compared to
the benchmark of 3.10% over the same period.
2MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
Manager’s report for the financial year ended 31 January 2018 (cont'd)
C. Market Review
In 2017, the US ("United States") Federal Reserve (“the Fed”) has hiked interest rates three times
leading to a surge in the front-end of the US Treasury (“UST”) yield curve. Long-term USTs were
supported by haven demand amid sustained political drama and uncertainties surrounding the
passage of the US tax reform bill. Meanwhile, the Fed’s balance sheet normalisation plan had little
impact on the bond market while the accelerated flattening of the UST yield curve raised a critical
question of whether it was an early sign of an economic slowdown.
Over in Europe, both the European Central Bank (“ECB”) and the Bank of England (“BoE”) have
become more hawkish in 2017. The ECB, after its hawkish tilt sparked a bond rout in June, has
been careful in managing market expectations regarding policy normalisation. In October, it
signalled a plan to gradually exit from the quantitative easing (“QE”) programme by halving its
monthly bond purchases to EUR30 billion starting January 2018. The programme will extend to
September 2018. Meanwhile, forward guidance continued to reiterate the ECB’s view that
historically low interest rates will stay for a prolonged period, obviously to sustain growth and lift
inflation to a healthy 2% level. In the United Kingdom (“UK”), the BoE delivered its first interest rate
hike in more than a decade, raising the Official Bank Rate to 0.50% from 0.25%. The rate hike was
widely expected as BoE Governor Mark Carney had indicated “limited” tolerance of above-target
inflation.
Back in Malaysia, Bank Negara Malaysia (“BNM”) raised the OPR by 25bps ("basis points") to
3.25% in January 2018 Monetary Policy Committee (“MPC”) meeting this year, first policy action
after its policy cut in July 2016. This was also Malaysia’s first hike since July 2014. The statement
accompanying the decision remained hawkish and policymakers pointed towards brighter
prospects for global growth and domestic demand. Meanwhile, inflation is set to be affected by
commodity and energy prices, which policymakers think may trend higher in 2018. Policymakers
also stated that the hike is in effect normalization and is to pre-empt a buildup of risks.
Furthermore, indicating that current policy remains accommodative suggests room for further
normalization. This would mean that should inflation push higher, then the central bank stands
ready to hike rates further.
In addition, the MYR ("Malaysian Ringgit") govvies started off the new year on firmer footing, in
conjunction with the stronger MYR against greenback. However, MYR bonds were under pressure
late in January, as sentiment turned guarded ahead of the MPC meeting as well as from rise in
UST yields. Yet, the positive sentiment in secondary space spurred demand on primary offerings,
particularly on the short dated 5 year Government Investment Issue (“GII”) auction, which
registered 2.581x bid-to-cover (“btc”).
D. Market Outlook
Following the December rate hike, market focus has shifted to the question of the extent to which
the Fed would normalise its federal funds rate (“FFR”) in 2018 as the US economy continued to
march on despite policy uncertainties and two major hurricanes. Industrial production and capacity
utilisation have continued to rise, and in December, the jobless rate fell to 4.1%, the lowest since
2001. Persistently robust consumer sentiment and a stronger household balance sheet have
pushed up asset prices and raised private consumption. Against such a backdrop, the market does
not rule out the possibility of more rate increases than currently priced-in by the markets. This is
especially true if signs of overheating emerge, especially after the implementation of tax reforms.
3MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
Manager’s report for the financial year ended 31 January 2018 (cont'd)
D. Market Outlook (cont'd)
Moving on to the local front, the local govvies market is likely to see more net foreign inflows in
2018. This expectation is based on reasons that include; (1) an expectation of an overnight policy
rate (“OPR”) hike in early 2018; (2) an upbeat outlook of the ringgit; (3) an improvement in crude oil
prices; and (4) the strengthening of the US economy that could lead to a faster pace of interest
rate normalisation. The lower volume of maturing MGS/GII papers in 2018 with a projected total
value of RM62.8 billion should also provide support.
Additionally, markets are also anticipating BNM to hike its benchmark OPR by between 25 basis
points and 50 bps in 2018. This is premised on the increased likelihood of Malaysia’s gross
domestic product (“GDP”) growth hitting above the 5.0% level again in 2018. This is especially true
when the external sector continues to strengthen and consumer spending growth rises above its
long-term trend pace of 7.0%. The expected FFR rate hikes as the US economy strengthens
further also lend support to the possibility of OPR hikes in 2018. In November 2017, BNM had
surprised investors with its hawkish MPC policy statement even as it announced its decision to
keep the OPR at 3.0%.
E. Investment Strategies
We continue to hold a constructive view of the market in light of an increase in opportunities given
better yield levels. We remain optimistic and seek to continue to raise cash where possible in order
to take advantage of attractive new issuances and opportunities in the secondary market. Also, as
there will be some bond maturities coming into 2018, hence we can rebalance our portfolio for
better carry and trading opportunities going forward.
F. Cross trades
There were cross trades undertaken in the period under review. All transactions were executed in
accordance with the Maybank Asset Management Investment Policy and with the requisite
approvals from Trustee and the relevant committees. All transactions were executed through a
dealer or a financial institution at arm’s length basis.
G. Asset Allocation
The comparison of the Fund’s asset allocation as at 31 January 2018 to the previous financial
period is as follows:
31.01.2018 31.01.2017
Asset allocation
RM % RM %
Unquoted fixed income
securities - local 212,686,329 96.26 173,709,834 79.05
Cash, deposits with licensed
financial institutions and other
net assets 8,253,422 3.74 46,024,169 20.95
Total 220,939,751 100.00 219,734,003 100.00
4MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
Manager’s report for the financial year ended 31 January 2018 (cont'd)
H. NAV as at 31 January 2018
Below is the summary of the NAV of the Fund:
31.01.2018 31.01.2017 Changes (%)
NAV (RM) 220,939,751 219,734,003 0.55
Units in circulation (unit) 219,030,772 217,467,801 0.72
NAV per unit (RM) 1.0087 1.0104 (0.17)
I. Soft Commissions and Rebates
The Manager and its delegates will not retain any form of soft commissions or rebates from or
otherwise share in any commission with any broker in consideration for directing dealings in the
investments of the Fund unless the commissions received are 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 2018, the Manager and its delegates did not receive
any soft commissions and rebates from brokers or dealers.
5MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
TRUSTEE'S REPORT
TO THE UNITHOLDERS OF MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
We have acted as Trustee of Maybank Financial Institutions Income Fund (the "Fund") for the financial
year ended 31 January 2018. 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 Unlisted Capital Market Products under the Lodge and
Launch Framework, 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
PB Trustee Services Berhad
Julia Mustaffa
Chief Executive Officer
Kuala Lumpur, Malaysia
30 March 2018
6MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
STATEMENT BY MANAGER
We, Dr Hasnita Binti Dato' Hashim and Badrul Hisyam Bin Abu Bakar, 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 on pages 12 to 43 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 Institutional Sukuk Fund as at 31 January
2018 and of its results, changes in equity and cash flows for the financial year then ended and comply
with the requirements of the Deeds.
For and on behalf of the Manager
Dr Hasnita Binti Dato' Hashim Badrul Hisyam Bin Abu Bakar
Kuala Lumpur, Malaysia
30 March 2018
7Independent Auditors’ Report to the Unitholders of
MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Maybank Financial Institutions Income Fund (the "Fund"), which
comprise the statement of financial position as at 31 January 2018 of the Fund, and statement of comprehensive
income, statement of changes in equity and statement of cash flows of the Fund for the period then ended, and notes
to the financial statements, including a summary of significant accounting policies and other explanatory
information, as set out on pages 12 to 43.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the as at
31 January 2018, and of its financial performance and cash flows for the period 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.
12 - 37
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 Ethics Standards Board for Accountants’ Code
of Ethics for Professional Accountants (“IESBA Code”), and we have fulfilled our other ethical responsibilities in
accordance with the By-Laws and the IESBA Code.
Information other than the financial statements and auditors’ report thereon
The Manager of the Fund ("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.
8Independent Auditors’ Report to the Unitholders of
MAYBANK FINANCIAL INSTITUTIONS INCOME 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.
9Independent Auditors’ Report to the Unitholders of
MAYBANK FINANCIAL INSTITUTIONS INCOME 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.
10Independent Auditors’ Report to the Unitholders of
MAYBANK FINANCIAL INSTITUTIONS INCOME 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 Lee Pei Yin
AF: 0039 03189/05/2019J
Chartered Accountants Chartered Accountant
Kuala Lumpur, Malaysia
30 March 2018
11MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 JANUARY 2018
2018 2017
Note RM RM
INVESTMENT INCOME
Interest income 3 10,490,653 8,263,385
Net realised gain/loss on available-for-sale ("AFS")
financial assets 313,916 (33,745)
Other income - 500
10,804,569 8,230,140
EXPENSES
Manager's fee 4 1,381,292 1,114,462
Trustee's fee 5 115,108 92,872
Auditors’ remuneration 7,800 7,800
Tax agent's fee 3,100 2,500
Administrative expenses 94,786 75,338
1,602,086 1,292,972
Net income before taxation 9,202,483 6,937,168
Income tax expense 6 - -
Net income after taxation 9,202,483 6,937,168
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss
Net changes in fair value of AFS financial assets 488,498 771,568
Total comprehensive income for the financial year 9,690,981 7,708,736
Net income after taxation is made up of
the following:
Net realised income 9,202,483 6,937,168
9,202,483 6,937,168
Distributions for the financial year:
Net distributions 12 9,473,812 7,457,070
Gross distribution per unit (sen) 12 4.50 4.00
Net distribution per unit (sen) 12 4.50 4.00
The accompanying notes form an integral part of the audited financial statements.
12MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2018
2018 2017
Note RM RM
ASSETS
Cash at bank 1,684 842
Deposits with licensed financial institutions 7 24,653,000 47,215,000
Interest income receivables 3,133,462 2,217,695
AFS financial assets 8 212,686,329 173,709,834
TOTAL ASSETS 240,474,475 223,143,371
LIABILITIES
Distributions payable 4,380,615 3,262,017
Due to Manager 9 15,125,923 112,440
Due to Trustee 10,494 9,370
Other payables and accruals 10 17,692 25,541
TOTAL LIABILITIES 19,534,724 3,409,368
NET ASSET VALUE ("NAV") OF THE FUND 220,939,751 219,734,003
EQUITY
Unitholders' capital 11(a) 219,273,729 218,155,395
Retained earnings 11(b) 1,661,487 2,062,571
AFS reserve 4,535 (483,963)
NET ASSETS ATTRIBUTABLE TO UNITHOLDERS 220,939,751 219,734,003
NUMBER OF UNITS IN CIRCULATION (UNIT) 11(a) 219,030,772 217,467,801
NAV PER UNIT (RM) 1.0087 1.0104
The accompanying notes form an integral part of the audited financial statements.
13MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 JANUARY 2018
Unitholders' Retained AFS
capital earnings reserve Total
Note 11(a) Note 11(b) Note 11(c) equity
RM RM RM RM
At 1 February 2016 171,557,732 2,139,485 (1,255,531) 172,441,686
Total comprehensive income
for the financial year - 6,937,168 771,568 7,708,736
Creation of units 60,950,004 - - 60,950,004
Reinvestment of units 3,954,945 - - 3,954,945
Cancellation of units (17,864,298) - - (17,864,298)
Distributions (Note 12) (442,988) (7,014,082) - (7,457,070)
At 31 January 2017 218,155,395 2,062,571 (483,963) 219,734,003
At 1 February 2017 218,155,395 2,062,571 (483,963) 219,734,003
Total comprehensive income
for the financial year 9,202,483 488,498 9,690,981
Creation of units 135,401,734 - - 135,401,734
Reinvestment of units 7,487,183 - - 7,487,183
Cancellation of units (141,900,338) - - (141,900,338)
Distributions (Note 12) 129,755 (9,603,567) - (9,473,812)
At 31 January 2018 219,273,729 1,661,487 4,535 220,939,751
The accompanying notes form an integral part of the audited financial statements.
14MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 JANUARY 2018
2018 2017
RM RM
CASH FLOWS FROM OPERATING AND INVESTING
ACTIVITIES
Payment for purchase of AFS financial assets (136,941,045) (32,292,624)
Proceeds from sales of AFS financial assets 97,300,510 20,109,874
Interest income received 11,041,339 9,680,626
Manager's fee paid (1,367,809) (2,794,599)
Trustee's fee paid (113,984) (90,944)
Payment of other fees and expenses (113,534) (81,017)
Net cash used in operating and investing activities (30,194,523) (5,468,684)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from creation of units 142,888,917 64,904,949
Payment for redemption of units (126,900,338) (17,864,298)
Distributions to unitholders (8,355,214) (6,762,627)
Net cash generated from financing activities 7,633,365 40,278,024
NET (DECREASE)/INCREASE IN CASH AND CASH
EQUIVALENTS FOR THE FINANCIAL YEAR (22,561,158) 34,809,340
CASH AND CASH EQUIVALENTS AT THE BEGINNING
OF THE FINANCIAL YEAR 47,215,842 12,406,502
CASH AND CASH EQUIVALENTS AT THE END OF THE
FINANCIAL YEAR 24,654,684 47,215,842
Cash and cash equivalents comprise:
Cash at bank 1,684 842
Deposits with licensed financial institutions
with maturity of less than 3 months (Note 7) 24,653,000 47,215,000
24,654,684 47,215,842
The accompanying notes form an integral part of the audited financial statements.
15MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 JANUARY 2018
1. THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES
Maybank Financial Institutions Income Fund (the "Fund”) was constituted pursuant to the execution of a
Deed dated 5 November 2009, First Supplementary Deed dated 08 October 2012, and a Second
Supplementary Deed dated 30 March 2015 (collectively referred to as "Deeds"), between the Manager,
Maybank Asset Management Sdn. Bhd. (“Maybank AM”) and the Trustee, PB Trustee Services Berhad.
The principal activity of the Fund is to invest up to 95% of its net asset value ("NAV") in RM-demoninated
fixed income securities issued by financial institutions and/or bank guaranteed bonds. The remaining
balance will be invested in fixed deposit and/or money market instruments.
The Manager of the Fund is Maybank AM, 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 Maybank AM is at Level 12,
Tower C, Dataran Maybank, No. 1 Jalan Maarof, 59000 Kuala Lumpur, Malaysia. Maybank AM is a wholly-
owned subsidiary of Maybank Asset Management Group Berhad ("MAMG"), which in turn is a wholly-owned
subsidiary of Malayan Banking Berhad ("MBB").
The financial statements were authorised for issue by the Board of Directors ("the Directors") of the
Manager in accordance with a resolution of the Directors on 30 March 2018.
2.1 Basis of preparation
The financial statements of the Fund have been prepared in accordance with Malaysian Financial
Reporting Standards (“MFRS”) as issued by the Malaysian Accounting Standards Board (“MASB”) and
International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards
Board (“IASB”).
The Fund has adopted the MFRS, Amendments to Standards and Interpretations Committee ("IC")
Interpretations which have become effective during the financial year ended 31 January 2018. The
adoption of the new pronouncements did not result in any material impact to the financial statements.
The financial statement are prepared on a historical cost basis except as disclosed in the accounting
policies in Note 2.3 to Note 2.16 to the financial statements.
The financial statements are presented in Ringgit Malaysia ("RM").
16MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.2 Standards, amendments and intepretations issued but not yet effective
The following are standards and amendments to standards 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
Description or after
MFRS 2 Share-based Payment - Classification and Measurement of Share-based
Payment Transactions (Amendments to MFRS 2) 1 January 2018
MFRS 9 Financial Instruments (IFRS 9 issued by IASB in July 2014) 1 January 2018
MFRS 9 Prepayment Features with Negative Compensation
(Amendments to MFRS 9) 1 January 2019
MFRS 10 Consolidated Financial Statements - Sale or Contribution of Assets between To be announced
an Investor and its Associate or Joint Venture (Amendments to MFRS 10) by MASB
MFRS 15 Revenue from Contracts with Customers 1 January 2018
MFRS 16 Leases 1 January 2019
MFRS 128 Investments in Associates and Joint Ventures - Sale or Contribution of
Assets between an Investor and its Associate or Joint Venture (Amendments to To be announced
MFRS 128) by MASB
MFRS 128 Long-term Interests in Associates and Joint Ventures (Amendments to
MFRS 128) 1 January 2019
Annual Improvements to MFRSs 2014 - 2016 Cycle
(i) Amendments to MFRS 1 First-time Adoption of Malaysian Financial Reporting
Standards 1 January 2018
(ii) Amendments to MFRS 128 Investments in Associates and Joint Ventures 1 January 2018
MFRS 140 Transfers of Investment Property (Amendments to MFRS 140) 1 January 2018
IC Interpretation 22 Foreign Currency Transactions and Advance Consideration 1 January 2018
IC Interpretation 23 Uncertainty over Income Tax Treatments 1 January 2019
Annual Improvements to MFRSs 2015-2017 Cycle
(i) Amendments to MFRS 3 Business Combinations and MFRS 11 Joint
Arrangements 1 January 2019
(ii) Amendments to MFRS 112 Income Tax 1 January 2019
(iii) Amendments to MFRS 123 Borrowing Costs 1 January 2019
17MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
2.2 Standards, amendments and intepretations issued but not yet effective (cont'd)
The Fund expects that the adoption of the above standards will not have any material impact on the
financial statements in the period of initial application except as discussed below:
(i) MFRS 9 Financial Instruments
MFRS 9 replaces MFRS 139 Financial Instruments: Recognition and Measurement ("MFRS 139").
MFRS 9 requires financial assets to be classified on the basis of the business model within which
they are held and their contractual cash flow characteristic.
The Fund will classify its financial assets in the following measurement categories:
- those to be measured subsequently at fair value; and
- those to be measured at amortised cost.
There will be no changes to the subsequent measurement of these financial assets.
MFRS 9 requires impairment assessments to be based on an expected loss model ("ECL"),
replacing the MFRS 139 incurred loss model. The ECL model applies to financial assets measured
at amortised cost.
The Manager intends to adopt MFRS 9 on the mandatory effective date. On the date of the initial
application, the AFS financial assets will be reclassified to financial assets at fair value through profit
or loss, and AFS reserve will be transferred to non-distributable retained earnings. There will not be
an impact to the performance results and the NAV of the Fund.
2.3 Financial assets
Financial assets are recognised in the statement of financial position when, and only when, the Fund
becomes a party to the contractual provisions of the financial instruments.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial
assets not at FVTPL, directly attributable transaction costs.
The Fund determines the classification of its financial assets at initial recognition and categories applicable
to the Fund are financial assets at AFS financial assets and loans and receivables. For investments, the
classification depends on the purpose for which the investment were acquired.
(a) AFS financial assets
Classification
Available-for-sale ("AFS") financial assets are financial assets that are not classified in any other
categories such as financial assets at fair value through profit or loss or loans and receivables. The
Fund designates its investments in unquoted fixed income securities as AFS financial assets.
Recognition and measurement
Regular purchases of AFS financial assets are recognised on the trade date, the date on which the
Fund commits to purchase the asset. AFS financial assets are initially recognised at fair value.
Directly attributable transaction costs are included in the initial measurement of AFS financial assets.
18MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
2.3 Financial assets (cont'd)
(a) AFS financial assets (cont'd)
Recognition and measurement (cont'd)
After initial recognition, AFS financial assets are measured at fair value. Any gains and losses from
changes in fair value of the AFS financial assets are recognised in other comprehensive income,
except for impairment losses, foreign exchange gains and losses on monetary instruments, dividend
income and interest income calculated using the effective interest method, which are recognised in
statement of comprehensive income.
When securities classified as AFS are sold or impaired, the accumulated fair value adjustments
recognised in other comprehensive income are included in the statement of comprehensive income
as 'net gains/(losses) from AFS financial assets'. Interest income on AFS debt investments
calculated using the effective interest method is recognised in profit or loss.
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 for financial
instruments traded in active markets at the reporting date is based on their quoted price or binding
dealer price quotations, without any deduction for transaction costs.
(b) Loans and receivables
Classification
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market are classified as loans and receivables. Financial assets classified in this category comprise
cash at bank, deposits with licensed financial institutions and interest income receivables.
Recognition and measurement
Subsequent to initial recognition, loans and receivables are measured at amortised cost using the
effective interest rate method. Gains and losses are recognised in the profit and loss when the loans
and receivables are derecognised or impaired, and through the amortisation process.
2.4 Derecognition of financial assets
A financial asset is derecognised when:
(1) The rights to receive cash flows from the asset have expired; or
(2) The Fund has transferred its rights to receive cash flows from the financial asset or have assumed
an obligation to pay the received cash flows in full without material delay to a third party under a
"pass through" arrangement; and either:
- the Fund has transferred substantially all the risks and rewards of the financial assets; or
- the Fund has neither transferred nor retained substantially all the risks and rewards, but has
transferred control of the financial asset.
19MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
2.4 Derecognition of financial assets (cont'd)
On derecognition of a financial asset in its entirety, the difference between the carrying amount and the
sum of the consideration received and any cumulative gain or loss that had been recognised in other
comprehensive income, if any, is recognised in profit or loss.
2.5 Impairment of financial assets
The Manager assesses at each reporting date of the Fund whether there is any objective evidence that a
financial asset of the Fund is impaired.
(a) AFS financial assets
Significant or prolonged decline in fair value below cost, significant financial difficulties of the issuer
or obligor and the disappearance of an active trading market are considerations to determine
whether there is objective evidence that investment securities classified as AFS financial assets are
impaired.
If an AFS financial asset is impaired, an amount comprising the difference between its cost (net of
any principal payment and amortisation) and its current fair value, less any impairment loss
previously recognised in profit or loss, is transferred from equity to profit or loss.
Impairment losses on AFS equity investments are not reversed through profit or loss; increases in
fair value after impairment are recognised in other comprehensive income. For AFS debt
investments, impairment losses are subsequently reversed in profit or loss, up to the amount
previously recognised as impairment loss, if an increase in the fair value of the investment can be
objectively related to an event occurring after the recognition of the impairment loss in profit or loss.
(b) Loans and receivables
To determine whether there is objective evidence that an impairment loss on financial assets has
been incurred, the Fund considers factors such as the probability of insolvency or significant
financial difficulties of the debtor and default or significant delay in payments.
If any such evidence exists, the amount of impairment loss is measured as the difference between
the carrying amount and the present value of estimated future cash flows discounted at the financial
asset's original effective interest rate. The impairment loss is recognised in profit or loss.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial
assets with the exception of trade receivables, where the carrying amount is reduced through the
use of an allowance account. When a trade receivable becomes uncollectible, it is written-off against
the allowance account.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognised, the previously
recognised impairment loss is reversed to the extent that the carrying amount of the financial asset
does not exceed its amortised cost at the reversal date. The amount of reversal is recognised in
profit or loss.
20MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
2.6 Financial liabilities
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.
Recognition and measurement
Financial liabilities are recognised in the statement of financial position when, and only when, the Fund
becomes a party to the contractual provisions of the financial instrument.
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 interest rate method.
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.
2.7 Fair value measurement
The Fund measures its financial instruments at fair value, at each reporting date. 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:
(i) In the principal market for the asset or liability; or
(ii) 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:
21MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
2.7 Fair value measurement (cont'd)
(i) Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
(ii) Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.
(iii) 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.
2.8 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 Ringgit Malaysia, which is also the Fund’s functional currency.
2.9 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.
22MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
2.10 Distributions
Any distribution to the Fund’s unitholders is accounted for as a deduction from realised reserves except
where distribution 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.
2.11 Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and deposits with licensed financial institutions with
original maturity of three (3) months or less which have an insignificant risk of changes in value.
2.12 Interest income
Interest income is recognised to the extent that it is probable that the economic benefits will flow to the
Fund and the income can be reliably measured. interest income is measured at the fair value of
consideration received or receivable.
Interest income from unquoted fixed income securities includes amortisation of premium and accretion of
discount, and is recognised using the effective interest rate method.
Interest income from deposits with licensed financial institutions is recognised on the accruals basis using
the effective interest rate method.
Realised gain or loss on disposal of unquoted fixed income securities 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.
2.13 Income tax
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.
2.14 Segment reporting
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.
23MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
2.15 Amount due from/to brokers
Amount due from and amount due to brokers represent receivables for investments sold and payables for
investments purchased that have been contracted for but not yet settled or delivered on the statement of
financial position date respectively.
These amounts are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest rate method, less provision for impairment for amounts due from brokers. A provision for
impairment of amount due from brokers is established when there is objective evidence that the Fund will
not be able to collect all amounts due from the relevant broker. Significant financial difficulties of the broker,
probability that the broker will enter bankruptcy or financial reorganisation, and default in payments are
considered indicators that the amount due from brokers is impaired. Once a financial asset or a group of
similar financial assets has been written-down as a result of an impairment loss, interest income is
recognised using the rate of interest rate used to discount the future cash flows for the purpose of
measuring the impairment loss.
2.16 Critical accounting estimates and judgements
The Fund makes estimates and assumptions concerning the future. The resulting accounting estimates will,
by definition, rarely equal the related actual results. To enhance the information content of the estimates,
certain key variables that are anticipated to have material impact to the Fund’s results and financial position
are tested for sensitivity to changes in the underlying parameters.
Estimates and judgements are continually evaluated by the Manager and are based on historical
experience and other factors, including expectations of future events that are believed to be reasonable
under the circumstances.
In undertaking any of the Fund’s investment, the Manager will ensure that all assets of the Fund will be
valued appropriately, that is at fair value and in compliance with the SC Guidelines on Unlisted Capital
Market Products Under the Lodge and Launch Framework.
RM-denominated unquoted fixed income securities are valued using fair value prices quoted by BPA.
Where the Manager is of the view that the price quoted by BPA for a specific fixed income security 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, obtains necessary internal approvals to use the
non-BPA price, and keeps an audit trail of all decisions and basis for adopting the use of non-BPA price.
3. INTEREST INCOME
2018 2017
RM RM
Interest income from unquoted fixed income securities 11,122,811 9,036,229
Interest income from deposits with licensed financial institutions 834,295 774,814
Amortisation of premium, net of accretion of discount (1,466,453) (1,547,658)
10,490,653 8,263,385
4. MANAGER'S FEE
The Manager's fee is computed on a daily basis at 0.60% (2017: 0.60%) per annum ("p.a.") of the NAV of
the Fund before deducting the Manager's fee and Trustee's fees for that particular day.
24MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
5. TRUSTEE'S FEE
The Trustee's fee is computed on a daily basis at 0.05% p.a.(2017: 0.05%) of the NAV of the Fund before
deducting the Manager's fee and Trustee's fees for that particular day, subject to a minimum fee of
RM18,000 per annum.
6. INCOME TAX EXPENSE
2018 2017
RM RM
Tax expense for the financial year:
Current income tax expense - -
Income tax is calculated at the Malaysian statutory tax rate of 24% (2017: 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 interest income earned by the Fund from investment is exempted from tax.
A reconciliation of income tax expense applicable to net income before taxation at the statutory income tax
rate to income tax expense at the effective income tax rate is as follows:
2018 2017
RM RM
Net income before taxation 9,202,483 6,937,168
Tax at Malaysian statutory rate of 24% (2017: 24%) 2,208,596 1,664,920
Effects of income not subject to tax (2,593,097) (1,975,233)
Effects of expenses not deductible for tax purposes 384,501 310,313
Tax expense for the financial year - -
7. DEPOSITS WITH LICENSED FINANCIAL INSTITUTIONS
2018 2017
RM RM
Deposits with licensed financial institutions
with maturity of less than 3 months 24,653,000 47,215,000
The weighted average effective interest rates (“WAEPR”) p.a. and average maturity of deposits with
licensed financial institutions as at the reporting date are as follows:
2018 2017
Average Average
WAEIR maturity WAEIR maturity
% p.a. Days % p.a. Days
Deposits with maturity
of less than 3 months 3.29 3 3.52 5
25MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
8. AFS FINANCIAL ASSETS
AFS financial assets comprise investments in RM-denominated unquoted fixed income securities issued in
Malaysia.
2018 2017
RM RM
Unquoted fixed income securities 212,686,329 173,709,834
The composition of AFS financial assets as at 31 January 2018 are as follows:
Percentage
Aggregate Market of
Quantity cost value NAV
Name of issuer Unit RM RM %
2018
Unquoted fixed income
securities
Ambank Islamic Bhd
- 4.45% / 06.03.2020 5,000,000 5,022,166 5,007,250 2.27
CIMB Bank Bhd
- 5.15% / 23.12.2025 5,000,000 5,063,792 5,072,100 2.30
Malayan Banking Bhd
- 4.20% / 20.02.2032 15,000,000 15,000,000 15,033,750 6.80
Bank Muamalat Malaysia Bhd
- 5.50% / 25.11.2021 9,000,000 9,030,045 9,104,760 4.12
Affin Bank Bhd
- 5.03% / 20.09.2027 10,000,000 10,031,755 10,066,700 4.56
Affin Bank Bhd
- 5.45% / 05.02.2027 19,000,000 19,333,199 19,426,740 8.79
Ambank Islamic Bhd
- 8.25% / 19.08.2019 5,000,000 5,254,022 5,262,650 2.38
Ambank Islamic Bhd
- 5.20% / 15.03.2027 15,000,000 15,159,360 15,180,000 6.87
CIMB Bank Bhd
- 6.70% / 05.10.2018 5,000,000 5,060,225 5,074,050 2.30
26MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
8. AFS FINANCIAL ASSETS (CONT'D)
Percentage
Aggregate Market of
Quantity cost value NAV
Name of issuer Unit RM RM %
2018 (cont'd)
Unquoted fixed income
securities (cont'd)
CIMB Group Holdings Bhd
- 6.35% / 03.04.2020 15,000,000 15,533,019 15,476,850 7.01
CIMB Bank Bhd
- 4.80% / 23.12.2025 4,000,000 4,016,113 4,026,680 1.82
CIMB Islamic Bank Bhd
- 5.85% / 25.09.2019 1,200,000 1,227,050 1,227,876 0.56
CIMB Bank Bhd
- 5.80% / 25.05.2021 10,000,000 10,241,013 10,216,400 4.62
CIMB Bank Bhd
- 5.60% / 05.07.2024 15,000,000 15,190,599 15,145,800 6.86
Hong Leong Bank Bhd
- 4.50% / 24.06.2019 4,200,000 4,202,748 4,208,190 1.90
HSBC Bank Malaysia Bhd
- 5.05% / 02.11.2022 8,910,000 9,158,565 9,052,471 4.10
Krung Thai Bank PCL
- 5.10% / 04.07.2025 5,000,000 5,009,528 5,070,550 2.29
Malayan Banking Bhd
- 6.30% / 25.09.2018 5,000,000 5,060,969 5,062,600 2.29
National Bank of Abu Dhabi
- 4.75% / 09.12.2027 5,500,000 5,476,230 5,474,040 2.48
Public Bank Bhd
- 7.50% / 05.06.2019 19,700,000 20,443,606 20,436,977 9.25
Public Bank Bhd
- 4.85% / 23.04.2027 3,000,000 3,025,147 3,022,350 1.37
27MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
8. AFS FINANCIAL ASSETS (CONT'D)
Percentage
Aggregate Market of
Quantity cost value NAV
Name of issuer Unit RM RM %
2018 (cont'd)
Unquoted fixed income
securities (cont'd)
RHB Bank Bhd
- 4.82% / 27.09.2027 5,000,000 5,000,000 5,005,250 2.27
RHB Bank Bhd
- 8.00% / 31.03.2039 5,000,000 5,304,522 5,189,950 2.35
RHB Bank Bhd
- 5.60% / 29.04.2020 14,500,000 14,838,122 14,842,345 6.72
Total unquoted
fixed income
securities 209,010,000 212,681,794 212,686,329 96.26
Unrealised gain on financial assets at FVTPL 4,535
2017
Unquoted fixed income
securities
Ambank Islamic Bhd
- 4.45% - 06/03/2020 5,000,000 5,032,169 4,993,950 2.27
Ambank Bhd
- 8.25% - 18/08/2039 5,000,000 5,408,950 5,406,350 2.46
Ambank Bhd
- 4.30% - 25/03/2019 5,000,000 5,012,257 4,990,050 2.27
CIMB Group Holdings Bhd
- 5.80% - 25/05/2021 5,000,000 5,000,000 5,098,650 2.32
CIMB Group Holdings Bhd
- 6.35% - 5/04/2060 14,000,000 14,714,683 14,605,640 6.65
CIMB Bank Bhd
- 4.80% - 13/09/2023 2,800,000 2,806,258 2,814,644 1.28
28MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
8. AFS FINANCIAL ASSETS (CONT'D)
Percentage
Aggregate Market of
Quantity cost value NAV
Name of issuer Unit RM RM %
2017 (cont'd)
Unquoted fixed income
securities (cont'd)
CIMB Bank Bhd
- 4.80% - 23/12/2025 9,000,000 9,046,921 9,013,140 4.10
CIMB Bank Bhd
- 6.70% - 07/10/2038 5,000,000 5,146,737 5,159,500 2.35
CIMB Islamic Bank Bhd
- 5.85% - 25/09/2024 1,000,000 1,035,820 1,032,450 0.47
CIMB Thai Bank PCL
- 5.35% - 10/07/2026 5,000,000 5,000,000 5,010,400 2.28
CIMB Thai Bank PCL
- 5.60% - 05/07/2024 4,900,000 4,963,583 4,952,577 2.25
Hong Leong Bank Bhd
- 4.50% - 21/06/2024 9,200,000 9,210,445 9,180,680 4.18
HSBC Bank Malaysia Bhd
- 5.05% - 2/11/2027 8,910,000 9,204,750 9,098,090 4.14
Krung Thai Bank PCL
- 5.10% - 04/07/2025 10,000,000 10,021,125 10,187,200 4.64
Malayan Banking Bhd
- 6.30% - 25/09/2068 4,500,000 4,639,356 4,598,775 2.09
Malayan Banking Bhd
- 4.25% - 10/05/2024 15,000,000 15,015,700 14,814,150 6.74
Bank Muamalat Malaysia
Bhd
- 5.50% - 25/11/2021 5,000,000 5,000,000 5,036,250 2.29
National Bank of Abu Dhabi
- 4.75% - 09/12/2027 500,000 490,400 497,080 0.23
Public Bank Bhd
- 7.50% - 05/06/2059 24,700,000 26,295,176 26,172,614 11.91
29MAYBANK FINANCIAL INSTITUTIONS INCOME FUND
8. AFS FINANCIAL ASSETS (CONT'D)
Percentage
Aggregate Market of
Quantity cost value NAV
Name of issuer Unit RM RM %
2017 (cont'd)
Unquoted fixed income
securities (cont'd)
Public Bank Bhd
- 4.80% - 25/09/2023 4,000,000 4,019,530 4,017,760 1.83
Public Bank Bhd
- 4.77% - 27/10/2023 2,000,000 2,005,190 2,007,940 0.91
RHB Bank Bhd
- 5.60% - 29/04/2025 14,500,000 14,978,968 14,878,740 6.77
RHB Bank Bhd
- 8.00% - 31/03/2039 5,000,000 5,333,287 5,320,500 2.42
RHB Bank Bhd
- 4.99% - 08/07/2024 4,800,000 4,812,492 4,822,704 2.19
Total unquoted fixed
income securities 169,810,000 174,193,797 173,709,834 79.05
Unrealised loss on financial assets at FVTPL (483,963)
9. DUE TO MANAGER
2018 2017
Note RM RM
Redemption of units (i) 15,000,000 -
Manager's fee (ii) 125,923 112,440
15,125,923 112,440
(i) The amount represents amount payable to the Manager for units redeemed.
(ii) 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 (2017: 15
days).
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