CIMB ISLAMIC SUKUK FUND
CONTENTS
PAGE(S)
INVESTORS' LETTER
1
MANAGER'S REPORT
2-7
Fund Objective and Policy
Performance Data
Market Review
Fund Performance
Portfolio Structure
Market Outlook
Investment Strategy
Unit Holdings Statistics
Soft Commissions and Rebates
STATEMENT BY MANAGER
8
TRUSTEE'S REPORT
9
SHARIAH ADVISER’S REPORT
INDEPENDENT AUDITORS' REPORT
10
11 - 12
STATEMENT OF COMPREHENSIVE INCOME
13
STATEMENT OF FINANCIAL POSITION
14
STATEMENT OF CHANGES IN EQUITY
15
STATEMENT OF CASH FLOWS
16
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORY
LIST OF CWA (an agency force of CIMB-Principal) OFFICES
17 - 40
41
42 - 45
CIMB ISLAMIC SUKUK FUND
INVESTORS' LETTER
Dear Valued Investors,
Thank you for your continuous support and trust by investing in CIMB-Principal Asset Management
Berhad (“CIMB-Principal”) funds. Our commitment to you is to deliver consistent risk adjusted returns
through sound investment and strong corporate governance practices. By placing clients at the heart
of everything that we do, we will continue to strive in delivering quality products and services that
meet our clients’ investment needs.
We are also pleased to inform that we have won the marquee award for The Best Asset Manager in
Southeast Asia by Alpha Southeast Asia for the 5th straight year. This industry recognition is
emblematic of the trust that we have built with our clients over time and our ability to successfully
scale up our capabilities with solid investment track records.
At CIMB-Principal, we aspire to be your preferred asset management partner in helping you achieve
your desired retirement lifestyle. If you have not maximised the RM3,000 in tax relief a year* by
saving in the Private Retirement Schemes ("PRS"), we do encourage you to do so. In addition, a
RM500 one-off PRS Youth Incentive will also be given to individuals between the age of 20-30 years
who participate in the PRS**.
For parents with young adults, we recommend that you encourage your children to enrol in CIMBPrincipal PRS Plus/CIMB Islamic PRS Plus (“PRS Plus account”) or give them a head start by making
an initial contribution towards their PRS Plus account. After all, our schemes are designed to provide
choice, investment performance and expertise to help investors increase your retirement savings.
Happy Investing!
Munirah Khairuddin
Chief Executive Officer/Executive Director
CIMB-Principal Asset Management Berhad
*
**
For contributions into the PRS Plus and deferred annuities effective from years of assessment 2012 to 2021.
With a minimum cumulative contribution of RM1,000 within any calendar year between 2014 to 2018 in a single PRS
fund of a single Provider.
1
CIMB ISLAMIC SUKUK FUND
MANAGER’S REPORT
FUND OBJECTIVE AND POLICY
What is the investment objective of the Fund?
The investment objective of the Fund is to gain higher than average income over the medium to longterm by investing in a diversified portfolio consisting principally of Sukuk, certificates of deposits,
short-term money market instruments and other permissible investments under the Shariah
principles.
Has the Fund achieved its objective?
For the financial year under review, the Fund is in line with its stated objective.
What are the Fund investment policy and principal investment strategy?
A minimum of 70% and up to a maximum of 98% of the Fund's Net Asset Value ("NAV") may be
invested in Sukuk carrying at least a "BBB3" or "P2" rating by RAM Ratings Services Berhad ("RAM")
or equivalent rating by Malaysian Rating Corporation Berhad ("MARC") or by local rating agency(ies)
of the country; "BBB" by Standard & Poor's ("S&P") or equivalent rating by Moody's or Fitch. The rest
of the Fund is maintained in the form of Shariah-compliant liquid assets to meet any redemption
payments to Unit holders. In line with its objective, the investment strategy and policy of the Fund is
to invest in a diversified portfolio of Shariah-compliant fixed income securities consisting of Sukuk,
and aims to provide a steady stream of income from the profit of Sukuk.
Fund category/type
Sukuk/Income
How long should you invest for?
Recommended three (3) years or more
Indication of short-term risk (low, moderate, high)
Low
When was the Fund launched?
8 October 2004
What was the size of the Fund as at 31 August 2014?
RM73.46 million (55.87 million units)
What is the Fund’s benchmark?
Quantshop Government Investment Issues ("GII") Medium Index
What is the Fund distribution policy?
Distribution (if any) is expected to be distributed annually, depending on the performance of the Fund
and at the Manager’s discretion.
What was the net income distribution for the financial year ended 31 August 2014?
The Fund declared a net income distribution of 6.00 sen per unit on 27 March 2014. As a result, the
NAV per unit on the said date dropped from RM1.3447 to RM1.2847.
2
CIMB ISLAMIC SUKUK FUND
PERFORMANCE DATA
Details of portfolio composition of the Fund for the last three financial years are as follows:
31.08.2014
%
93.88
6.12
100.00
Unquoted Sukuk
Cash and Other Net Assets
31.08.2013
%
95.79
4.21
100.00
31.08.2012
%
72.07
27.93
100.00
Performance details of the Fund for the last three financial years are as follows:
31.08.2014
73.46
55.87
1.3147
1.3451
1.2844
3.37
(1.30)
4.67
1.06
0.68
NAV (RM Million)
Units in circulation (Million)
NAV per unit (RM)
Highest NAV per unit (RM)
Lowest NAV per unit (RM)
Total return (%)
- Capital growth (%)
- Income distribution (%)
Management Expense Ratio ("MER") (%)
Portfolio Turnover Ratio ("PTR") (times) #
31.08.2013
112.60
84.59
1.3312
1.3436
1.3019
2.23
2.23
0.95
0.97
31.08.2012
91.18
70.02
1.3023
1.3023
1.2271
6.15
6.15
0.19
0.85
# The Fund's PTR for the financial year under review was lower due to lesser volume of transactions.
Date of distribution
Gross/Net distribution per unit (sen)
Annual total return
-
27.03.2014
6.00
-
31.08.2014
%
31.08.2013
%
31.08.2012
%
31.08.2011
%
31.08.2010
%
3.37
2.23
6.15
5.26
4.15
(Launch date: 8 October 2004)
Past performance is not necessarily indicative of future performance and that unit prices and investment returns may go
down, as well as up. All performance figures for the financial year have been extracted from Lipper.
3
CIMB ISLAMIC SUKUK FUND
MARKET REVIEW (1 SEPTEMBER 2013 TO 31 AUGUST 2014)
The Malaysian Government Securities (“MGS”) yield curve bearish steepened in the fourth quarter of
2013 due to fears of an early Quantitative Easing ("QE") tapering. Bond yields sold off consequently
with benchmark MGS yields for 3-year, 5-year, 10-year and 20-year closing at 3.22%, 3.73%, 4.09%
and 4.34% respectively. Meanwhile, high grade corporate bonds yield curve also bearish steepened
in last quarter of 2013 in tandem with the MGS as fear of foreign funds exiting the Malaysian market
grew as QE tapering nears. Local investors were seen staying sidelined towards the end of the year
to avoid any backlash from the rising yields. As a result, for the whole year 2013, total Private Debt
Securities ("PDS") issued was approximately RM81.0 billion in 2013 versus a record RM121 billion in
2012.
During the budget announcement in October 2013, the Government reiterated its commitment to
meet the existing Federal Government objective of reducing the nation’s fiscal deficit to 3.5% of
Gross Domestic Product ("GDP") in 2014, and 3.0% of GDP by 2015. This signalled a possible
intensification of efforts to consolidate the federal government finances. Moreover, the Government
proposed introduction of the long-mooted Goods and Sevices Tax ("GST") to be implemented in April
2015, at an initial rate of 6%, will be seen as positive with the Government committed to further policy
reforms such as reducing subsidy expenditures to further reign in the deficit. The Fitch rating agency
was quoted as stating that this is a key reform, which could strengthen the credit profile by
broadening the revenue base and lessening the budget's dependence on petroleum-derived
revenues.
The MGS yield curve bear flattened for the eight month period ended 31 August 2014. During the
beginning of the year in January 2014, the government securities came under pressure due to heavy
selling activities by the offshore players however, local investors showed better buying interest after
the selloff thus providing support for the weakening trend. The MGS yields traded range bound in
March 2014 as concern over rising inflationary pressure in Malaysia saw investors taking a more
cautious stance.
In July 2014, we saw Bank Negara Malaysia ("BNM") being the first central bank in Southeast Asia to
raise its Overnight Policy Rate ("OPR") by 25 basic points ("bps") to 3.25%. The previous rate hike
was in May 2011. BNM viewed the hike as a "normalisation" of monetary conditions which aims to
mitigate the risk of broader economic and financial imbalances that could undermine growth
prospects.
At the end of July 2014, the MGS yield curve shifted lower on the long end as market players
continued to prefer longer duration instruments to cushion against a possible rate hike in the country
and also on the belief that US policy rates will remain low in the near term.
After the strong rally subsequent to the OPR hike in July 2014, the MGS market consolidated in
August 2014 with yields higher on the short end of the curve as market anticipated another OPR hike
in the next Monetary Policy Committee ("MPC") meeting in September 2014. The MGS yield bear
flattened as the 3-year, 5-year and 10-year MGS traded higher by 3 bps, 2 bps and 3 bps
respectively closing in August 2014 at 3.56%, 3.68% and 3.92% respectively.
The economy surprised on the upside with a second quarter GDP of 6.4% against market expectation
of 5.80%. This marked the fastest growth pace since the forth quarter of 2012, attributed to better
export and domestic demand. The strong real GDP growth further support BNM’s decision to
continue with its rate normalisation with consensus expecting the next OPR hike to be in the
September 2014 MPC meeting.
4
CIMB ISLAMIC SUKUK FUND
FUND PERFORMANCE
1 year
to
31.08.2014
%
3 years
to
31.08.2014
%
5 years
to
31.08.2014
%
Since
inception to
31.08.2014
%
Income
4.67
4.67
4.67
6.47
Capital
(1.30)
7.50
18.30
36.30
Total Return
3.37
12.17
22.97
42.77
Benchmark
3.90
10.81
20.80
53.15
Average Total Return
3.37
3.90
4.22
3.66
As at 31 August 2014, the Fund reported a one year total return of 3.37% whilst providing a total
return of 42.77% since inception.
Changes in NAV
NAV (RM Million)
NAV/unit (RM)
31.08.2014
31.08.2013
73.46
1.3147
112.60
1.3312
Changes
%
(34.76)
(1.24)
As at 31 August 2014, the Fund’s NAV decreased by 34.76% for the financial year under review from
RM112.60 million to RM73.46 million due to fund redemptions. The NAV per unit stood at RM1.3147
compared with RM1.3312 a year ago.
In terms of ranking, the Fund ranked 16th out of 27 funds (3rd quartile) and 7th out of 27 funds (2nd
quartile) in the Lipper’s Islamic Bond category for the one and three year basis respectively.
Performance data represents the combined income and capital return as a result of holding units in the Fund for the
specified length of time, based on NAV to NAV price. The performance data assumes that all earnings from the Fund are
reinvested and are net of management and trustee fees. Past performance is not reflective of future performance and
income distributions are not guaranteed. Unit prices and income distributions, if any, may fall and rise. All performance
figures for the financial year have been extracted from Lipper.
5
CIMB ISLAMIC SUKUK FUND
PORTFOLIO STRUCTURE
Asset allocation
(% of NAV)
31.08.2014
Unquoted Sukuk
Cash and other net assets
93.88
6.12
Total
100.00
31.08.2013
95.79
4.21
100.00
93.88% of the Fund's NAV was invested in Unquoted Sukuk with the remaining of 6.12% in cash and
other net assets. Liquidity is maintained to position the Fund to take advantage of accumulating high
quality rated bonds with decent secondary market liquidity and participating in primary issues in the
pipeline for potential yield pick up.
MARKET OUTLOOK*
We saw BNM being the first central bank in Southeast Asia to raise its OPR by 25 bps to 3.25% in
July 2014. The previous rate hike was in May 2011. BNM viewed the hike as a "normalisation" of
monetary conditions which aims to mitigate the risk of broader economic and financial imbalances
that could undermine growth prospects.
The economy surprised on the upside with a second quarter GDP of 6.4% against market expectation
of 5.80%. This marked the fastest growth pace since the forth quarter of 2012 attributed to better
export and domestic demand. The strong real GDP growth further support BNM’s decision to
continue with its rate normalisation with consensus expecting the next OPR hike to be in the
September 2014 MPC meeting.
Market is expected to be subdued before the MPC meeting in September 2014. The MGS/GII yields
are expected to trade in a range prior to the meeting. We expect any credit spread widening to be
orderly if there is further rate hike albeit lagging the sovereign bonds’ movement. Market players are
turning more cautious with more profit taking activities although the supply/demand dynamics are
positive for now which should see support for the domestic corporate bond market.
*This market outlook does not constitute an offer, invitation, commitment, advice or recommendation to make a purchase of
any investment. The information given in this article represents the views of CIMB-Principal or based on data obtained from
sources believed to be reliable by CIMB-Principal. Whilst every care has been taken in preparing this, CIMB-Principal
makes no guarantee, representation or warranty and is under no circumstances liable for any loss or damage caused by
reliance on, any opinion, advice or statement made in this market outlook.
INVESTMENT STRATEGY
We continue to maintain our trading stance on GII and advocate selective accumulation of the
government securities. We prefer to invest in higher yielding corporate sukuk with decent secondary
market liquidity. Our core holdings remain anchored in corporate sukuk with allocations for liquid
securities for trading purposes.
6
CIMB ISLAMIC SUKUK FUND
UNIT HOLDINGS STATISTICS
Breakdown of unit holdings by size as at 31 August 2014 are as follows:
No. of unit
holders
No. of units held
(million)
% of units held
10,595
2.32
4.15
5,001-10,000
462
3.30
5.91
10,001-50,000
695
15.40
27.56
50,001-500,000
139
13.99
25.04
9
20.86
37.34
11,900
55.87
100.00
Size of holdings (units)
5,000 and below
500,001 and above
Total
SOFT COMMISSIONS AND REBATES
CIMB-Principal Asset Management Berhad (the "Manager") and the Trustee (including their officers)
will not retain any form of rebate or soft commission from, or otherwise share in any commission with,
any broker in consideration for directing dealings in the investments of the Funds unless the soft
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 Funds. All dealings with brokers
are executed on best available terms.
During the financial year under review, the Manager and the Trustee did not receive any rebates from
the brokers or dealers but have retained soft commission in the form of goods and services such as
financial wire services and stock quotations system incidental to investment management of the
Funds.
7
CIMB ISLAMIC SUKUK FUND
STATEMENT BY MANAGER TO THE UNIT HOLDERS OF
CIMB ISLAMIC SUKUK FUND
I, being the Director of CIMB-Principal Asset Management Berhad (the "Manager"), do hereby state
that, in the opinion of the Manager, the accompanying audited financial statements set out on pages
13 to 40 are drawn up in accordance with the provisions of the Deeds and give a true and fair view of
the financial position of the Fund as at 31 August 2014 and of its financial performance, changes in
equity and cash flows for the financial year then ended in accordance with the provisions of the
Malaysian Financial Reporting Standards ("MFRS") and International Financial Reporting Standards
("IFRS").
For and on behalf of the Manager
CIMB-Principal Asset Management Berhad
(Company No.: 304078-K)
MUNIRAH KHAIRUDDIN
Chief Executive Officer/ Executive Director
Kuala Lumpur
31 October 2014
8
CIMB ISLAMIC SUKUK FUND
TRUSTEE’S REPORT TO THE UNIT HOLDERS OF
CIMB ISLAMIC SUKUK FUND
We, AMANAHRAYA TRUSTEES BERHAD, have acted as Trustee of CIMB ISLAMIC SUKUK FUND
for the financial year ended 31 August 2014. In our opinion, CIMB–PRINCIPAL ASSET
MANAGEMENT BERHAD, the Manager, has managed CIMB ISLAMIC SUKUK FUND in accordance
with the limitations imposed on the investment powers of the management company and the Trustee
under the Deeds, other provisions of the Deeds, the applicable Guidelines on Unit Trust Funds, the
Capital Markets and Services Act 2007 and other applicable laws for the financial year then ended.
We are of the opinion that:
a)
the procedures and processes employed by the Manager to value and/or price the units of CIMB
ISLAMIC SUKUK FUND are adequate and that such valuation/pricing is carried out in
accordance with the Deeds and other regulatory requirement;
b)
creation and cancellation of units are carried out in accordance with the Deeds and other
regulatory requirement; and
c)
the distribution of returns made by CIMB ISLAMIC SUKUK FUND as declared by the Manager is
in accordance with the investment objective of CIMB ISLAMIC SUKUK FUND.
Yours faithfully
AMANAHRAYA TRUSTEES BERHAD
HABSAH BINTI BAKAR
Chief Executive Officer
Kuala Lumpur, Malaysia
31 October 2014
9
CIMB ISLAMIC SUKUK FUND
SHARIAH ADVISER’S REPORT TO THE UNIT HOLDERS OF
CIMB ISLAMIC SUKUK FUND
We have acted as the Shariah Adviser of CIMB Islamic Sukuk Fund. Our responsibility is to ensure
that the procedures and processes employed by CIMB-Principal Asset Management Berhad are in
accordance with Shariah.
In our opinion, CIMB-Principal Asset Management Berhad has managed and administered CIMB
Islamic Sukuk Fund in accordance with Shariah and complied with applicable guidelines, rulings or
decisions issued by the Securities Commission pertaining to Shariah matters for the financial year
ended 31 August 2014.
In addition, we also confirm that the investment portfolio of CIMB Islamic Sukuk Fund comprises
securities which have been classified as Shariah-compliant by the Shariah Advisory Council of the
Securities Commission (“SACSC”). As for the securities which are not certified by the SACSC, we
have reviewed the said securities and opine that these securities are designated as Shariahcompliant.
For and on behalf of Shariah Adviser
CIMB Islamic Bank Berhad
ABDUL GHANI ENDUT
Co-Head, Group Shariah and Islamic Legal/Designated Person Responsible for Shariah Advisory
Kuala Lumpur
31 October 2014
10
CIMB ISLAMIC SUKUK FUND
INDEPENDENT AUDITORS’ REPORT TO THE UNIT HOLDERS OF
CIMB ISLAMIC SUKUK FUND
REPORT ON THE FINANCIAL STATEMENTS
We have audited the financial statements of CIMB Islamic Sukuk Fund on pages 13 to 40, which
comprise the statement of financial position as at 31 August 2014 of the Fund, and the statements of
comprehensive income, changes in equity and cash flows for the financial year then ended, and a
summary of significant accounting policies and other explanatory notes, as set out on Note 1 to 17.
Manager’s Responsibility for the Financial Statements
The Manager of the Fund is responsible for the preparation of financial statements so as to 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 that are free from
material misstatement whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on our judgment, including the
assessment of risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, we consider internal control relevant to the Fund’s
preparation of financial statements that give a true and fair view 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 Manager’s internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by the Manager,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
11
CIMB ISLAMIC SUKUK FUND
INDEPENDENT AUDITORS’ REPORT TO THE UNIT HOLDERS OF
CIMB ISLAMIC SUKUK FUND (CONTINUED)
REPORT ON THE FINANCIAL STATEMENTS (CONTINUED)
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the Fund
as of 31 August 2014 and of its financial performance and cash flows for the financial year then
ended, in accordance with Malaysian Financial Reporting Standards and International Financial
Reporting Standards.
OTHER MATTERS
This report is made solely to the unit holders of the Fund and for no other purpose. We do not
assume responsibility to any other person for the content of this report.
PRICEWATERHOUSECOOPERS
(No. AF: 1146)
Chartered Accountants
Kuala Lumpur
31 October 2014
12
CIMB ISLAMIC SUKUK FUND
STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2014
Note
INVESTMENT INCOME (SHARIAHCOMPLIANT)
Profit income and hibah received
Net loss on financial assets at fair value through
profit or loss
Other income
4
EXPENSES
Management fee
Trustee’s fee
Audit fee
Tax agent’s fee
Other expenses
5
6
PROFIT BEFORE TAXATION
8
Taxation
PROFIT AFTER TAXATION AND TOTAL
COMPREHENSIVE INCOME FOR THE
FINANCIAL YEAR
Profit after taxation is made up as follows:
Realised amount
Unrealised amount
2014
RM
2013
RM
4,007,122
5,499,309
(219,383)
3,787,739
(1,302,399)
45,827
4,242,737
857,557
54,161
9,800
5,000
25,613
952,131
1,133,736
79,191
9,800
5,000
22,535
1,250,262
2,835,608
2,992,475
-
-
2,835,608
2,992,475
2,543,499
292,109
2,835,608
5,364,103
(2,371,628)
2,992,475
The accompanying notes to the financial statements form an integral part of the audited financial
statements.
13
CIMB ISLAMIC SUKUK FUND
STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2014
Note
CURRENT ASSETS
Financial assets at fair value through profit or loss
(Shariah-compliant)
Cash and cash equivalents (Shariah-compliant)
Amount due from Manager
TOTAL ASSETS
9
10
CURRENT LIABILITIES
Amount due to Manager
Accrued management fee
Amount due to Trustee
Other payables and accruals
TOTAL LIABILITIES
NET ASSET VALUE OF THE FUND
EQUITY
Unit holders' capital
Retained earnings
NET ASSET ATTRIBUTABLE TO
UNIT HOLDERS
NUMBER OF UNITS IN CIRCULATION (UNITS)
11
NET ASSET VALUE PER UNIT (RM)
2014
RM
2013
RM
68,962,946
4,675,865
177,500
73,816,311
107,864,742
5,926,504
98,925
113,890,171
283,077
56,528
3,570
15,677
358,852
1,171,177
92,447
5,839
17,709
1,287,172
73,457,459
112,602,999
53,465,204
19,992,255
91,613,721
20,989,278
73,457,459
112,602,999
55,873,027
84,589,009
1.3147
1.3312
The accompanying notes to the financial statements form an integral part of the audited financial
statements.
14
CIMB ISLAMIC SUKUK FUND
STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2014
Note
Balance as at 1 September 2013
Movement in unit holders'
contributions:
- Creation of units from applications
- Creation of units from distribution
- Cancellation of units
Total comprehensive income for the
financial year
Distribution
Balance as at 31 August 2014
Balance as at 1 September 2012
Movement in unit holders'
contributions:
- Creation of units from applications
- Cancellation of units
Total comprehensive income for the
financial year
Balance as at 31 August 2013
Unit holders'
capital
RM
Retained
earnings
RM
Total
RM
91,613,721
20,989,278
112,602,999
20,146,144
3,830,953
(62,125,614)
-
20,146,144
3,830,953
(62,125,614)
53,465,204
2,835,608
(3,832,631)
19,992,255
2,835,608
(3,832,631)
73,457,459
73,188,485
17,996,803
91,185,288
188,568,959
(170,143,723)
-
188,568,959
(170,143,723)
91,613,721
2,992,475
20,989,278
2,992,475
112,602,999
7
The accompanying notes to the financial statements form an integral part of the audited financial
statements.
15
CIMB ISLAMIC SUKUK FUND
STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2014
Note
CASH FLOWS FROM OPERATING ACTIVITIES
Proceeds from disposal of unquoted Sukuk
Purchase of unquoted Sukuk
Proceeds from redemption of unquoted Sukuk
Profit received on Shariah-compliant Deposits with
licensed Islamic financial institutions
Profit income received on unquoted Sukuk
Management fee paid
Trustee’s fee paid
Payment for other fees and expenses
Hibah received
Other income received
Net cash generated from/(used in) operating activities
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from units created
Payment for cancellation of units
Distibution paid
Net cash (used in)/generated from financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the
financial year
Cash and cash equivalents at the end of the financial year
10
2014
RM
2013
RM
79,624,200
(41,953,300)
-
100,732,818
(156,258,096)
7,000,000
182,594
4,835,518
(893,476)
(56,430)
(42,444)
522
41,697,184
622,290
4,952,083
(1,041,289)
(77,528)
(33,548)
320
45,827
(44,057,123)
20,067,569
(63,013,714)
(1,678)
(42,947,823)
189,530,949
(169,294,684)
20,236,265
(1,250,639)
(23,820,858)
5,926,504
4,675,865
29,747,362
5,926,504
The accompanying notes to the financial statements form an integral part of the audited financial
statements.
16
CIMB ISLAMIC SUKUK FUND
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2014
1.
THE FUND, THE MANAGER AND ITS PRINCIPAL ACTIVITY
CIMB Islamic Sukuk Fund (the “Fund”) is governed by a Principal Master Deed dated 15th
May 2008, a Third Supplemental Master Deed dated 25th June 2008, a Fourth Supplemental
Master Deed dated 25th June 2008, a Sixth Supplemental Master Deed dated 14th July 2008,
a Seventh Supplemental Master Deed dated 19th November 2008 and a Fourteenth
Supplemental Master Deed dated 26 June 2012 (collectively referred to as the “Deeds”),
made between CIMB-Principal Asset Management Berhad (the “Manager”) and AmanahRaya
Trustees Berhad (the “Trustee”).
The principal activity of the Fund is to invest a minimum of 70% and up to a maximum of 98%
of the Fund’s NAV may be invested in Sukuk carrying at least a “BBB3” or “P2” rating by RAM
or equivalent rating by MARC or by local rating agency(ies) of the country; “BBB” by S&P, or
equivalent rating by Moody’s or Fitch. The rest of the Fund is maintained in the form of
Shariah-compliant liquid assets to meet any redemption payments to Unit holders. In line with
its objective, the investment strategy and policy of the Fund is to invest in a diversified
portfolio of Shariah-compliant fixed income securities consisting of Sukuk, and aims to provide
a steady stream of income from the profit of Sukuk.
All investments will be subjected to the Securities Commission Malaysia ("SC") Guidelines on
Unit Trust Funds, SC requirements, the Deeds, except where exemptions or variations have
been approved by the SC, internal policies and procedures and the Fund’s objective.
The Manager, a company incorporated in Malaysia, is a subsidiary of CIMB Group Sdn Bhd
and regards CIMB Group Holdings Bhd as its ultimate holding company. The Manager is also
an associate of Principal International (Asia) Limited, which is a subsidiary of Principal
Financial Group Inc. The principal activities of the Manager are the establishment and
management of unit trust funds and fund management activities.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following accounting policies have been used consistently in dealing with items which are
considered material in relation to the financial statements:
(a)
Basis of preparation
The financial statements have been prepared in accordance with the provisions of the
MFRS and IFRS.
The financial statements have been prepared under the historical cost convention, as
modified by financial assets and financial liabilities (including derivatives instruments)
at fair value through profit or loss.
The preparation of financial statements in conformity with MFRS and IFRS requires
the use of certain critical accounting estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of revenue
and expenses during the reported financial year. It also requires the Manager to
exercise their judgment in the process of applying the Fund’s accounting policies. The
Manager believes that the underlying assumptions are appropriate and the Fund’s
financial statements therefore present the financial position results fairly. Although
these estimates and judgment are based on the Manager’s best knowledge of current
events and actions, actual results may differ.
17
CIMB ISLAMIC SUKUK FUND
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a)
Basis of preparation (continued)
The areas involving a higher degree of judgment or complexity, or areas where
estimates and assumptions are significant to the financial statements are disclosed in
Note 2(k).
The standards, amendments to published standards and interpretations to existing
standards that are applicable to the Fund but not yet effective and have not been early
adopted are as follows:
(i)
Financial year beginning on/after 1 September 2014
Amendment to MFRS 132 “Financial Instruments: Presentation” (effective from
1 January 2014) does not change the current offsetting model in MFRS 132. It
clarifies the meaning of ‘currently has a legally enforceable right of set-off’ that
the right of set-off must be available today (not contingent on a future event)
and legally enforceable for all counterparties in the normal course of business.
It clarifies that some gross settlement mechanisms with features that are
effectively equivalent to net settlement will satisfy the MFRS 132 offsetting
criteria. The Fund will apply this amendment when effective.
The adoption of the amendment is not expected to have a significant impact on
the results of the Fund.
(ii)
Effective date yet to be determined by Malaysian Accounting Standards Board
MFRS 9 “Financial Instruments - Classification and Measurement of Financial
Assets and Financial Liabilities” replaces the parts of MFRS 139 that relate to
the classification and measurement of financial instruments. MFRS 9 requires
financial assets to be classified into two measurement categories: those
measured as at fair value and those measured at amortised cost. The
determination is made at initial recognition. The classification depends on the
entity’s business model for managing its financial instruments and the
contractual cash flow characteristics of the instrument. For financial liabilities,
the standard retains most of the MFRS 139 requirements.
The main change is that, in cases where the fair value option is taken for
financial liabilities, the part of a fair value change due to an entity’s own credit
risk is recorded in other comprehensive income rather than the income
statement, unless this creates an accounting mismatch.
MFRS 9 “Financial Instruments - Hedge Accounting” brings into effect
substantial overhaul of hedge accounting that will allow entities to better reflect
their risk management activities in the financial statements. The revised
standard establishes a more principle-based approach to hedge accounting
and addresses inconsistencies and weaknesses in the current model in MFRS
139.
The Fund will apply this standard when effective. This standard is not expected
to have a significant impact on the Fund’s financial statements.
18
CIMB ISLAMIC SUKUK FUND
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b)
Financial assets and financial liabilities
Classification
The Fund designates its Shariah-compliant investments in unquoted Sukuk as financial
assets at fair value through profit or loss at inception.
Financial assets are designated at fair value through profit or loss when they are
managed and their performance evaluated on a fair value basis
Financing and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market and have been
included in current assets. The Fund’s financing and receivables comprise cash and
cash equivalents and amount due from Manager.
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, accrued management fee, amount due to
Trustee, other payables and accruals as other financial liabilities.
Recognition and measurement
Regular purchases and sales of financial assets are recognised on the trade-date – the
date on which the Fund commits to purchase or sell the asset. Shariah-compliant
investments are initially recognised at fair value.
Financial liabilities, within the scope of MFRS 139, 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.
Financial assets are derecognised when the rights to receive cash flows from the
Shariah-compliant investments have expired or have been transferred and the Fund
has transferred substantially all risks and rewards of ownership.
Financial liabilities are derecognised when it is extinguished, i.e. when the obligation
specified in the contract is discharged or cancelled or expired.
Unrealised gains or losses arising from changes in the fair value of the financial assets
at fair value through profit or loss are presented in the statement of comprehensive
income within net gain or loss on financial assets at fair value through profit or loss in
the financial year which they arise.
Unquoted Sukuk denominated in Ringgit Malaysia ("RM") are revalued on a daily basis
based on fair value prices quoted by a Bond Pricing Agency (“BPA”) registered with the
SC as per the SC Guidelines on Unit Trust Funds. Refer to Note 2(k) for further
explaination.
Shariah-compliant Deposits with licensed Islamic financial institutions are stated at cost
plus accrued profit calculated on the effective profit method over the period from the
date of placement to the date of maturity of the respective deposits.
Financing and receivables and other financial liabilities are subsequently carried at
amortised cost using the effective profit method.
19
CIMB ISLAMIC SUKUK FUND
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b)
Financial assets and financial liabilities (continued)
Recognition and measurement (continued)
For assets carried at amortised cost, the Fund assesses at the end of the reporting
period whether there is objective evidence that a financial asset or group of financial
assets is impaired. A financial asset or a group of financial assets is impaired and
impairment losses are incurred only if there is objective evidence of impairment as a
result of one or more events that occurred after the initial recognition of the asset (a
‘loss event’) and that loss event (or events) has an impact on the estimated future cash
flows of the financial asset or group of financial assets that can be reliably estimated.
The amount of the loss is measured as the difference between the asset’s carrying
amount and the present value of estimated future cash flows (excluding future credit
losses that have not been incurred) discounted at the financial asset’s original effective
profit rate. The asset’s carrying amount of the asset is reduced and the amount of the
loss is recognised in statement of comprehensive income. If ‘financing and
receivables’ has a variable profit rate, the discount rate for measuring any impairment
loss is the current effective profit rate determined under the contract.
As a practical expedient, the Fund may measure impairment on the basis of an
instrument’s fair value using an observable market price.
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 (such as an improvement in the debtor’s credit rating), the reversal of the
previously recognised impairment loss is recognised in statement of comprehensive
income.
When an asset is uncollectible, it is written off against the related allowance account.
Such assets are written off after all the necessary procedures have been completed
and the amount of the loss has been determined.
(c)
Income recognition
Profit income from Shariah-compliant Deposits with licensed Islamic financial
institutions and unquoted Sukuk are recognised on a time proportionate basis using
the effective profit rate method on an accrual basis.
Realised gain or loss on disposal of unquoted Sukuk is accounted for as the difference
between the net disposal proceeds and the carrying amount of investments,
determined on cost adjusted for accretion of discount or amortisation of premium.
(d)
Functional and presentation currency
Items included in 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 the
Fund’s functional and presentation currency.
20
CIMB ISLAMIC SUKUK FUND
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(e)
Creation and cancellation of units
The Fund issues cancellable units, which are cancelled at the unit holder’s option and
are classified as equity. Cancellable units can be put back to the Fund at any time for
cash equal to a proportionate share of the Fund’s NAV. The outstanding units are
carried at the redemption amount that is payable at the date of the statement of
financial position if the unit holder exercises the right to put back the unit to the Fund.
Units are created and cancelled at the unit holder’s option 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 unit holders with the total number
of outstanding units.
(f)
Cash and cash equivalents
For the purpose statement of cash flows, cash and cash equivalents comprise
Shariah-compliant bank balances and deposits held in highly liquid investments that
are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
(g)
Taxation
Current tax expense is determined according to Malaysian tax laws at the current rate
based upon the taxable profit earned during the financial year.
(h)
Distribution
A distribution to the Fund’s unit holders is accounted for as a deduction from realised
reserve. A proposed distribution is recognised as a liability in the period in which it is
approved by the Trustee.
(i)
Unit holders’ capital
The unit holders’ contributions to the Fund meet the definition of puttable instruments
classified as equity instruments under MFRS 132 “Financial Instruments:
Presentation”.
The units in the Fund are puttable instruments which entitle the unit holders to a prorata share of the net asset of the Fund. The units are subordinated and have identical
features. There is no contractual obligation to deliver cash or another financial asset
other than the obligation on the Fund to repurchase the units. The total expected cash
flows from the units in the Fund over the life of the units are based on the change in
the net asset of the Fund.
(j)
Segmental 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.
21
CIMB ISLAMIC SUKUK FUND
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(k)
Critical accounting estimates and judgments in applying accounting policies
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 judgments 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.
Estimate of fair value of unquoted Sukuk
In undertaking any of the Fund’s Shariah-compliant investment, the Manager will
ensure that all assets of the Fund under management will be valued appropriately, that
is at fair value and in compliance with the SC Guidelines on Unit Trust Funds.
Ringgit-denominated unquoted Sukuk are valued using fair value prices quoted by a
BPA. Where the Manager is of the view that the price quoted by BPA for a specific
unquoted Sukuk differs from the market price by more than 20 bps, the Manager may
use 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.
RISK MANAGEMENT OBJECTIVES AND POLICIES
The Fund aims to gain higher than average income over the medium to long-term by investing
in a diversified portfolio consisting principally of Sukuk, certificates of deposit, short-term
money market instruments and other permissible investments under the Shariah principles.
The Fund is exposed to a variety of risks which include market risk (inclusive of price risk and
interest rate risk), credit risk, liquidity risk, reclassification of Shariah status, non-compliance
risk and capital risk.
Financial risk management is carried out through internal control process adopted by the
Manager and adherence to the investment restrictions as stipulated in the Deed and SC
Guidelines on Unit Trust Funds.
Financial instruments of the Fund are as follows:
2014
Unquoted Sukuk (Note 9)
Cash and cash equivalents
(Note 10)
Amount due from Manager
Financial
assets at fair
value through
profit or loss
RM
Financing
and
receivables
RM
Total
RM
68,962,946
-
68,962,946
68,962,946
4,675,865
177,500
4,853,365
4,675,865
177,500
73,816,311
22
CIMB ISLAMIC SUKUK FUND
3.
RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
2013
Unquoted Sukuk (Note 9)
Cash and cash equivalents
(Note 10)
Amount due from Manager
Financial
assets at fair
value through
profit or loss
RM
Financing
and
receivables
RM
Total
RM
107,864,742
-
107,864,742
107,864,742
5,926,504
98,925
6,025,429
5,926,504
98,925
113,890,171
All current liabilities are financial liabilities which are carried at amortised cost.
(a)
Market risk
(i)
Price risk
This is the risk that the fair value of a Shariah-compliant investment in unquoted
Sukuk will fluctuate because of changes in market prices (other than those
arising from interest rate risk).The value of investments in unquoted Sukuk may
fluctuate according to the activities of individual companies, sector and overall
political and economic conditions. Such fluctuation may cause the Fund's NAV
and prices of units to fall as well as rise, and income produced by the Fund may
also fluctuate.
The price risk is managed through diversification and selection of Shariahcompliant securities and other financial instruments within specified limits
according to the Deed.
The Fund’s overall exposure to price risk was as follows:
Financial assets at fair value
through profit or loss:
- Unquoted Sukuk*
31.08.2014
RM
31.08.2013
RM
68,962,946
107,864,742
* Includes profit receivables of RM1,159,586 (2013: RM1,530,141).
23
CIMB ISLAMIC SUKUK FUND
3.
RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
(a)
Market risk (continued)
(i)
Price risk (continued)
The table below summarises the sensitivity of the Fund’s profit after tax and
NAV to movements in prices of unquoted Sukuk excluding profit receivable at
the end of the financial year. The analysis is based on the assumptions that the
price of the unquoted Sukuk excluding profit receivable increased and
decreased by 5% with all other variables held constant. This represents
management’s best estimate of a reasonable possible shift in the unquoted
Sukuk, having regard to the historical volatility of the prices.
% Change in price
of unquoted Sukuk
2014
-5%
0%
5%
2013
-5%
0%
5%
(ii)
Market value
RM
Impact on profit
after tax/NAV
RM
64,413,192
67,803,360
71,193,528
═══════════
(3,390,168)
3,390,168
═══════════
101,017,871
106,334,601
111,651,331
═══════════
(5,316,730)
5,316,730
═══════════
Interest rate risk
In general, when interest rates rise, unquoted Sukuk prices will tend to fall and
vice versa. Therefore, the NAV of the Fund may also tend to fall when interest
rates rise or are expected to rise. However, investors should be aware that
should the Fund holds an unquoted Sukuk till maturity, such price fluctuations
would dissipate as it approaches maturity, and thus the growth of the NAV shall
not be affected at maturity. In order to mitigate interest rates exposure of the
Fund, the Manager will manage the duration of the portfolio via shorter or
longer tenured assets depending on the view of the future interest rate trend of
the Manager, which is based on its continuous fundamental research and
analysis.
Investors should note that the movement in prices of unquoted Sukuk and
Shariah-compliant money market instruments are benchmarked against
interest rates. As such, the investments are exposed to the movement of the
interest rates.
This risk is crucial since unquoted Sukuk portfolio management depends on
forecasting interest rate movements. Prices of unquoted Sukuk move inversely
to interest rate movements, therefore as interest rates rise, the prices of
unquoted Sukuk decrease and vice versa. Furthermore, Sukuk with longer
maturity and lower yield coupon rates are more susceptible to interest rate
movements.
24
CIMB ISLAMIC SUKUK FUND
3.
RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
(a)
Market risk (continued)
(ii)
Interest rate risk (continued)
Such investments may be subject to unanticipated rise in interest rates which
may impair the ability of the issuers to make payments of interest income and
principal, especially if the issuers are highly leveraged. An increase in interest
rates may therefore increase the potential for default by an issuer.
The table below summarises the sensitivity of the Fund’s profit after tax and
NAV to movements in prices of unquoted Sukuk held by the Fund as a result of
movement in interest rate. The analysis is based on the assumptions that the
interest rate changed by 1% with all other variables held constant. This
represents management’s best estimate of a reasonable possible shift in the
interest rate, having regard to the historical volatility of the interest rate.
% Change in
profit rate
Impact on profit after tax/NAV
2014
2013
RM
RM
+1%
-1%
(167,079)
167,724
════════
(280,249)
281,359
════════
The Fund’s exposure to interest rates associated with Shariah-compliant
Deposits with licensed Islamic financial institutions is not material as the
deposits are held on short-term basis.
(b)
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligation
resulting in financial loss to the Fund.
Investment in unquoted Sukuk may involve a certain degree of credit/default risk with
regards to the issuers. Generally, credit risk or default risk is the risk of loss due to the
issuer’s non-payment or untimely payment of the investment amount as well as the
returns on investment. This will cause a decline in value of the defaulted unquoted
Sukuk and subsequently depress the NAV of the Fund. Usually credit risk is more
apparent for an investment with a longer tenure, i.e. the longer the duration, the higher
the credit risk. Credit risk can be managed by performing continuous fundamental
credit research and analysis to ascertain the creditworthiness of its issuer. In addition,
the Manager imposes a minimum rating requirement as rated by either local and/or
foreign rating agencies and manages the duration of the investment in accordance
with the objective of the Fund.
The credit risk arising from placements of Shariah-compliant Deposits in licensed
Islamic financial institutions is managed by ensuring that the Fund will only place
deposits in reputable licensed financial institutions. The settlement terms of the
proceeds from the creation of units receivable from the Manager are governed by the
SC Guidelines on Unit Trust Funds.
25
CIMB ISLAMIC SUKUK FUND
3.
RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
(b)
Credit risk (continued)
The following table sets out the credit risk concentration of the Fund:
2014
Construction
and Materials
- AA2/AA
- AA3/AAFinance
- AAA
- AA1/AA+
- AA2/AA
Government
- AA2/AA
Infrastructure
- AAA
- AA2/AA
Plantation
- AA2/AA
- AA3/AAReal Estate
- AA3/AATrading/
Services
- AA1/AA+
- AA3/AAUtilities
- AA1/AA+
- AA2/AA
- AA3/AA- A1/A+
Others
- NR
Financial
assets at fair
value through
profit or loss
RM
Cash and
cash
equivalents
RM
Amount
due from
Manager
RM
Total
RM
5,235,654
2,547,589
-
-
5,235,654
2,547,589
-
2,021,079
1,000,351
1,654,435
-
2,021,079
1,000,351
1,654,435
5,088,027
-
-
5,088,027
3,035,697
3,275,058
-
-
3,035,697
3,275,058
6,986,715
5,174,453
-
-
6,986,715
5,174,453
6,080,009
-
-
6,080,009
1,993,337
5,141,906
-
-
1,993,337
5,141,906
2,018,618
5,000,708
13,464,991
3,920,184
-
-
2,018,618
5,000,708
13,464,991
3,920,184
68,962,946
4,675,865
177,500
177,500
177,500
73,816,311
26
CIMB ISLAMIC SUKUK FUND
3.
RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
(b)
Credit risk (continued)
2013
Construction and
Materials
- AA2/AA
- AA3/AAConsumer
- AA3/AAFinance
- AAA
- AA1/AA+
- AA2/AA
- A1/A+
- A3
Government
- AA2/AA
- NR
Infrastructure
- AA3/AAPlantation
- AA1/AA+
- AA2/AA
Real estate
- AAA
- AA2/AA
Telecommunications
- AAA
Trading/Services
- AAA
- AA3/AATransportation
- AA1/AA+
Utilities
- AAA
- AA1/AA+
- AA2/AA
- AA3/AA- A1/A+
Others
- NR
Financial
assets at fair
value
through
profit or loss
RM
Cash and
cash
equivalents
RM
Amount
due from
Manager
RM
Total
RM
1,089,936
1,020,005
-
-
1,089,936
1,020,005
2,051,671
-
-
2,051,671
6,147,148
5,124,027
4,172,611
2,020,713
2,000,486
1,905,305
-
-
8,167,861
2,000,486
1,905,305
5,124,027
4,172,611
10,222,890
3,002,332
-
-
10,222,890
3,002,332
5,120,616
-
-
5,120,616
4,985,226
13,109,995
-
-
4,985,226
13,109,995
2,505,394
5,412,654
-
-
2,505,394
5,412,654
2,028,784
-
-
2,028,784
1,013,095
6,798,638
-
-
1,013,095
6,798,638
5,240,844
-
-
5,240,844
6,049,956
10,203,954
5,131,108
3,203,048
4,230,810
-
-
6,049,956
10,203,954
5,131,108
3,203,048
4,230,810
107,864,742
5,926,504
98,925
98,925
98,925
113,890,171
27
CIMB ISLAMIC SUKUK FUND
3.
RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
(b)
Credit risk (continued)
All financial assets of the Fund as at the end of each financial year are neither past
due nor impaired.
(c)
Liquidity risk
Liquidity risk is the risk that the Fund will encounter difficulty in meeting its financial
obligations.
The Manager manages this risk by maintaining sufficient level of liquid assets to meet
anticipated payments and cancellations of the units by unit holders. Liquid assets
comprise bank balance and Shariah-compliant Deposits with licensed Islamic financial
institutions, which are capable of being converted into cash within 7 business days.
Generally, all investments are subject to a certain degree of liquidity risk depending on
the nature of the investment instruments, market, sector and other factors. For the
purpose of the Fund, the Manager will attempt to balance the entire portfolio by
investing in a mix of assets with satisfactory trading volume and those that
occasionally could encounter poor liquidity. This is expected to reduce the risks for the
entire portfolio without limiting the Fund’s growth potentials.
The table below summarises the Fund’s financial liabilities into relevant maturity
groupings based on the remaining year as at the statement of financial position date to
the contractual maturity date. The amounts in the table are the contractual
undiscounted cash flows.
Less than
1 month
RM
2014
Amount due to Manager
Accrued management fee
Amount due to Trustee
Other payables and accruals
Contractual cash outflows
283,077
56,528
3,570
-
2013
Amount due to Manager
Accrued management fee
Amount due to Trustee
Other payables and accruals
Contractual cash outflows
1,171,177
92,447
5,839
-
343,175
1,269,463
28
Between
1 month
to 1 year
RM
Total
RM
15,677
15,677
283,077
56,528
3,570
15,677
358,852
-
1,171,177
92,447
5,839
17,709
1,287,172
17,709
17,709
CIMB ISLAMIC SUKUK FUND
3.
RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
(d)
Reclassification of Shariah status risk
The risk refers to the risk that the currently held Shariah-compliant securities in the
portfolio of Shariah-compliant funds may be reclassified to be Shariah non-compliant in
the periodic review of the Shariah-compliant securities by the relevant Shariah
Advisers. If this occurs, the value of the Fund may be adversely affected where the
Manager will take the necessary steps to dispose of such securities in accordance with
the advice from the Shariah Adviser.
(e)
Non-compliance risk
Non-compliance risk arises when the Manager and others associated with the Fund do
not follow the rules set out in the Fund’s constitution, or the law that govern the Fund,
or act fraudulently or dishonestly. It also includes the risk of the Manager not
complying with internal control procedures.
The non-compliance may expose the Fund to higher risks which may result in a fall in
the value of the Fund which in turn may affect its investment goals. However, the risk
can be mitigated by the internal controls and compliance monitoring undertaken by the
Manager.
(f)
Capital risk management
The capital of the Fund is represented by equity consisting of unit holders’ capital and
retained earnings. The amount of equity can change significantly on a daily basis as
the Fund is subject to daily subscriptions and redemptions at the discretion of unit
holders. The Fund’s objective when managing capital is to safeguard the Fund’s ability
to continue as a going concern in order to provide returns for unit holders and benefits
for other stakeholders and to maintain a strong capital base to support the
development of the investment activities of the Fund.
(g)
Fair value estimation
Fair value is defined as 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 (i.e. an exit price).
The fair value of financial assets traded in active markets (such as trading securities)
are based on quoted market prices at the close of trading on the financial year end
date. Prior to 1 September 2013, the quoted market price used for financial assets
held by the Fund was the current bid price. The Fund adopted MFRS 13 “Fair Value
Measurement” from 1 September 2013 onwards and changed its fair valuation inputs
to utilise the last traded market price for financial assets.
An active market is a market in which transactions for the asset or liability take place
with sufficient frequency and volume to provide pricing information on an ongoing
basis.
The fair value of financial assets that are not traded in an active market is determined
by using valuation techniques.
29
CIMB ISLAMIC SUKUK FUND
3.
RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
(g)
Fair value estimation (continued)
Fair value hierarchy
(i)
The table below analyses financial instruments carried at fair value. The
different levels have been defined as follows:
•
•
•
Quoted prices (unadjusted) in active market for identical assets or
liabilities (Level 1)
Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices) (Level 2)
Inputs for the asset and liability that are not based on observable market
data (that is, unobservable inputs) (Level 3)
The level in the fair value hierarchy within which the fair value measurement is
categorized in its entirety is determined on the basis of the lowest level input
that is significant to the fair value measurement in its entirety. For this purpose,
the significance of an input is assessed against the fair value measurement in
its entirety.
If a fair value measurement uses observable inputs that require significant
adjustment based on unobservable inputs, that measurement is a Level 3
measurement.
Assessing the significance of a particular input to the fair value measurement in
its entirety requires judgment, considering factors specific to the asset or
liability.
The determination of what constitutes ‘observable’ requires significant judgment
by the Fund. The Fund considers observable data to be that market data that is
readily available, regularly distributed or updated, reliable and verifiable, not
proprietary, and provided by independent sources that are actively involved in
the relevant market.
Level 1
RM
Level 2
RM
Level 3
RM
Total
RM
2014
Financial assets at fair
value through profit or
loss:
- Unquoted Sukuk
-
68,962,946
-
68,962,946
2013
Financial assets at fair
value through profit or
loss:
- Unquoted Sukuk
-
107,864,742
-
107,864,742
30
CIMB ISLAMIC SUKUK FUND
3.
RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
(g)
Fair value estimation (continued)
Fair value hierarchy (continued)
Financial instruments that trade in markets that are not considered to be active
but are valued based on quoted market prices, dealer quotations or alternative
pricing sources supported by observable inputs are classified within Level 2.
This includes unquoted Sukuk. As Level 2 instruments include positions that
are not traded in active markets and/or are subject to transfer restrictions,
valuations may be adjusted to reflect illiquidity and/or non-transferability, which
are generally based on available market information. The Fund’s policies on
valuation of these financial assets are stated in Note 2(b).
(ii)
4.
The carrying values of cash and cash equivalents, amount due from Manger
and all current liabilities are a reasonable approximation of their fair values due
to their short term nature.
PROFIT INCOME AND HIBAH RECEIVED
Profit income from unquoted Sukuk
Profit income from Shariah-compliant Deposits with
licensed Islamic financial institutions
Hibah
5.
2014
RM
3,824,006
2013
RM
4,876,699
182,594
522
4,007,122
622,290
320
5,499,309
MANAGEMENT FEE
In accordance with the Deeds, the Manager is entitled to a maximum management fee of
3.00% per annum, calculated daily based on the NAV of the Fund.
For the financial year ended 31 August 2014, the management fee is recognised at a rate of
0.95% per annum (2013 : 0.95% per annum).
There will be no further liability to the Manager in respect of management fee other than the
amount recognised above.
6.
TRUSTEE’S FEE
In accordance with the Deeds, the Trustee is entitled to a fee of 0.06% per annum, calculated
daily based on the NAV of the Fund.
For the financial year ended 31 August 2014, the Trustee’s fee is recognised at a rate of
0.06% per annum (2013: 0.06% per annum).
There will be no further liability to the Trustee in respect of Trustee’s fee other than the
amount recognised above.
31
CIMB ISLAMIC SUKUK FUND
7.
DISTRIBUTION
Distribution to unit holders derived from the following sources:
Profit income from Shariah-compliant Deposits with
licensed Islamic financial institutions
Profit income from unquoted Sukuk
Less:
Expenses
Net distribution amount
Distribution on 27 March 2014
Gross/Net distribution per unit (sen)
2014
RM
2013
RM
182,594
3,694,314
3,876,908
-
(44,277)
3,832,631
-
6.00
-
Net distribution above is sourced from current years’ realised income. Gross distribution is
derived using total income less total expenses.
Gross distribution per unit is derived from gross realised income less expenses, divided by the
number of units in circulation. Net distribution per unit is derived from gross realised income
less expenses and taxation, divided by the number of units in circulation.
8.
TAXATION
2014
RM
2013
RM
-
-
Tax charged for the financial year:
- Current taxation
A numerical reconciliation between profit before taxation multiplied by the Malaysian statutory
income tax rate and tax expense of the Fund is as follows:
Profit before taxation
Taxation at Malaysian statutory rate of 25%
(2013: 25%)
Tax effects of:
Investment income not subject to tax
Expenses not deductible for tax purposes
Restriction on tax deductible expenses for unit trust
funds
Taxation
32
2014
RM
2013
RM
2,835,608
2,992,475
708,902
748,119
(946,935)
21,194
(1,060,685)
23,978
216,839
288,588
-
-
CIMB ISLAMIC SUKUK FUND
9.
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Designated at fair value through profit or loss
at inception:
- Unquoted Sukuk
Net loss on financial assets at fair value
through profit or loss
- Realised (loss)/gain on disposals
- Unrealised fair value gain/(loss)
Name of issuer
2014
UNQUOTED SUKUK
Anih Bhd 5.85% 29/11/2027 (AA)
Bahrain Mumtalakat Holding Co.
5.35% 30/04/2018 (AA2)
Bumitama Agri Ltd
5.25% 18/03/2019 (AA3)
Edaran SWM Sdn Bhd
5.15% 05/10/2018 (AA3)
Encorp Systembilt Sdn Bhd
5.52% 18/05/2028 (AA2)
Eversendai Corp Bhd
4.70% 09/03/2018 (AA3)
First Resources Ltd
4.35% 05/06/2020 (AA2)
Golden Assets International
Finance Ltd 4.35% 17/11/2017
(AA2)
Jimah Energy Ventures
8.85% 12/11/2018(AA3)
Jimah Energy Ventures
8.10% 12/05/2016 (AA3)
Jimah Energy Ventures
9.25% 12/11/2019 (AA3)
Malakoff Power Bhd
5.35% 16/12/2022 (AA3)
Perbadanan Kemajuan Negeri
Selangor 4.35% 28/10/2016
(AA3)
Projek Lebuhraya Usahasama
Bhd 4.64% 10/01/2025 (AAA)
Sepangar Bay Power Corp
5.00% 03/07/2025 (AA1)
Special Power Vehicle
20.42% 18/05/2018 (A1)
2014
RM
2013
RM
68,962,946
107,864,742
(320,403)
101,020
(219,383)
629,135
(1,931,534)
(1,302,399)
Nominal
value
RM
Aggregate
cost
RM
3,000,000
3,216,217
3,275,058
4.46
5,000,000
5,098,823
5,088,027
6.93
5,000,000
5,120,103
5,174,453
7.04
5,000,000
5,162,532
5,141,906
7.00
5,000,000
5,536,797
5,235,654
7.13
2,500,000
2,560,096
2,547,589
3.47
2,000,000
2,020,737
1,992,297
2.71
5,000,000
5,044,990
4,994,418
6.80
5,000,000
5,929,471
5,914,620
8.05
1,000,000
1,089,009
1,090,875
1.49
1,500,000
1,868,206
1,858,533
2.53
2,500,000
2,521,625
2,525,474
3.44
5,000,000
5,088,359
5,073,238
6.91
3,000,000
2,951,376
3,035,697
4.13
2,000,000
2,004,731
2,018,618
2.75
2,500,000
3,958,074
3,920,184
5.34
33
Market Percentage
value
of NAV
RM
%
CIMB ISLAMIC SUKUK FUND
9.
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Name of issuer
2014 (CONTINUED)
UNQUOTED SUKUK (CONTINUED)
Sunrise Bhd
4.35% 25/07/2016 (AA3)
Tanjung Bin Energy Issuer Bhd
5.25% 15/09/2022 (AA3)
Tanjung Bin Power Sdn Bhd
4.84% 16/08/2022 (AA2)
Westports Malaysia Sdn Bhd
4.43% 01/04/2025 (AA1)
TOTAL UNQUOTED SUKUK
Nominal
value
RM
Aggregate
cost
RM
Market
value
RM
1,000,000
1,004,798
1,006,771
1.37
2,000,000
2,144,567
2,075,489
2.83
5,000,000
5,156,537
5,000,708
6.80
2,000,000
65,000,000
2,039,493
69,516,541
1,993,337
68,962,946
2.70
93.88
ACCUMULATED UNREALISED
LOSS ON FINANCIAL
ASSETS AT FAIR VALUE
THROUGH PROFIT OR LOSS
(553,595)
TOTAL FINANCIAL ASSETS
AT FAIR VALUE THROUGH
PROFIT OR LOSS
2013
UNQUOTED SUKUK
AmIslamic Bank Bhd
4.40% 30/09/2021 (A1)
AnihBhd 5.70% 27/11/2026 (AA)
Bahrain Mumtalakat Holding Co.
5.35% 30/04/2018 (AA2)
Bahrain Mumtalakat Holding Co.
5.50% 03/10/2017 (AA2)
Bank Muamalat Malaysia
5.15% 15/06/2021 (A3)
Edaran SWM SdnBhd
5.15% 05/10/2018 (AA3)
Encorp Systembilt Sdn Bhd
5.52% 18/05/2028 (AA2)
Eversendai Corp Bhd
4.70% 09/03/2018 (AA3)
First Resources Ltd
4.30% 08/12/2017 (AA2)
First Resources Ltd
4.35% 05/06/2020 (AA2)
Golden Assets International
Finance Ltd 4.35% 17/11/2017
(AA2)
Golden Assets International
Finance Ltd 4.75% 03/08/2018
(AA2)
Govt Investment Issues
3.235% 08/02/2016 #
Percentage
of NAV
%
68,962,946
5,000,000
1,000,000
5,119,136
1,033,329
5,124,027
1,089,936
4.55
0.97
5,000,000
5,100,470
5,068,377
4.50
5,000,000
5,113,014
5,154,514
4.58
4,000,000
4,101,650
4,172,611
3.71
5,000,000
5,176,571
5,120,615
4.55
5,000,000
5,560,304
5,412,653
4.81
1,000,000
1,024,405
1,020,005
0.91
1,000,000
1,009,778
1,012,378
0.90
2,000,000
2,020,737
2,015,937
1.79
3,000,000
3,045,010
3,014,384
2.68
7,000,000
7,030,569
7,067,296
6.28
3,000,000
3,012,089
3,002,332
2.67
34
CIMB ISLAMIC SUKUK FUND
9.
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Name of issuer
Nominal
value
RM
Aggregate
cost
RM
Market
value
RM
2013 (CONTINUED)
UNQUOTED SUKUK (CONTINUED)
Gulf Investment Corp
4.90% 03/08/2016 (AAA)
6,000,000
6,146,212
6,147,148
Konsortium Lebuh Utara Timur
7.42% 27/10/2028 (AA3)
2,000,000
2,557,500
2,533,822
Konsortium Lebuh Utara Timur
6.97% 28/10/2025 (AA3)
2,000,000
2,403,696
2,421,340
Konsortium Lebuh Utara Timur
7.12% 28/10/2026 (AA3)
1,500,000
1,831,056
1,843,475
Kuala Lumpur Kepong Bhd
4.00% 02/09/2022 (AA1)
5,000,000
5,099,726
4,985,226
Nur Power Sdn Bhd
5,000,000
5,105,332
4,992,362
4.67% 26/06/2024 (AAA)
ProjekLebuhraya Usahasama Bhd
4.72% 12/01/2026 (AAA)
1,000,000
1,015,537
1,013,095
Putrajaya Holdings Sdn Bhd
3.648% 25/10/2017 (AAA)
2,500,000
2,531,869
2,505,394
Ranhill Powertron II Sdn Bhd
5.15% 16/06/2023 (AAA)
1,000,000
1,031,192
1,057,594
Special Power Vehicle
20.42% 18/05/2018 (A1)
2,500,000
4,275,640
4,230,810
Tanjung Bin Energy Issuer Bhd
5.25% 15/09/2022 (AA3)
2,000,000
2,154,004
2,134,242
Tanjung Bin Energy Issuer Bhd
1,000,000
1,038,322
1,068,807
5.40% 15/03/2024 (AA3)
Tanjung Bin Power Sdn Bhd
4.84% 16/08/2022 (AA2)
5,000,000
5,171,661
5,131,108
TAQA Abu Dhabi National Energy
4.65% 03/03/2022 (AA1)
5,000,000
5,195,235
5,114,658
TeknologiTenaga Perlis
4.63% 30/07/2021 (AA1)
5,000,000
5,192,990
5,089,296
Telekom Malaysia Bhd
4.20% 13/09/2021 (AAA)
2,000,000
2,059,603
2,028,784
UMW Holding Bhd
4.55% 15/09/2014 (AAA)
2,000,000
2,050,434
2,051,671
WestportsM'siaSdnBhd
4.43% 01/04/2025 (AA1)
2,000,000
2,039,677
2,008,438
WestportsM'siaSdnBhd
5.25% 03/05/2024 (AA1)
3,000,000
3,272,609
3,232,407
TOTAL UNQUOTED SUKUK
102,500,000 108,519,357 107,864,742
ACCUMULATED UNREALISED
LOSS ON FINANCIAL ASSETS
AT FAIR VALUE THROUGH
PROFIT OR LOSS
(654,615)
FAIR VALUE OF FINANCIAL
ASSETS AT FAIR VALUE
THROUGH PROFIT OR
LOSS
107,864,742
35
Percentage
of NAV
%
5.46
2.25
2.15
1.64
4.43
4.43
0.90
2.22
0.94
3.76
1.90
0.95
4.56
4.54
4.52
1.80
1.81
1.77
2.86
95.79
CIMB ISLAMIC SUKUK FUND
9.
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
# The unquoted Sukuk which are not rated as at the end of each financial year are issued,
backed or guaranteed by government or government agencies.
10.
CASH AND CASH EQUIVALENTS (SHARIAH-COMPLIANT)
Shariah-compliant Deposits with licensed Islamic
financial institutions
Bank balance in a licensed Islamic bank
2014
RM
2013
RM
4,655,345
20,520
5,906,276
20,228
4,675,865
5,926,504
The effective weighted average profit rate for the period is as follows:
Deposits with licensed Islamic financial institutions
2014
%
2013
%
3.29
2.94
Shariah-compliant Deposits with licensed Islamic financial institutions of the Fund have an
average maturity of 3 days (2013: 1 day).
11.
NUMBER OF UNITS IN CIRCULATION (UNITS)
At the beginning of the financial year
Add : Creation of units from applications
Add : Creation of units from distribution
Less : Cancellation of units
At the end of the financial year
36
2014
No. of units
2013
No. of units
84,589,009
15,270,325
2,981,983
(46,968,290)
55,873,027
70,017,166
142,250,413
(127,678,570)
84,589,009
CIMB ISLAMIC SUKUK FUND
12.
MER
MER
2014
%
2013
%
1.06
0.95
MER is derived based on the following calculation:
MER
=
A
B
C
D
E
F
=
=
=
=
=
=
(A + B + C + D + E) x 100
F
Management fee
Trustee’s fee
Audit fee
Tax agent’s fee
Other expenses
Average NAV of the Fund calculated on a daily basis
The average NAV of the Fund for the financial year calculated on a daily basis is
RM90,160,836 (2013: RM132,163,353).
13.
PTR
PTR (times)
2014
2013
0.68
0.97
PTR is derived from the following calculation:
(Total acquisition for the financial year + total disposal for the financial year) ÷ 2
Average NAV of the Fund for the financial year calculated on a daily basis
where:
total acquisition for the financial year = RM41,953,300 (2013: RM150,232,251)
total disposal for the financial year
= RM79,944,601 (2013: RM106,697,965)
14.
UNITS HELD BY THE MANAGER, PARTIES RELATED TO THE MANAGER, AND
SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES
The related parties and their relationship with the Fund are as follows:
Related parties
Relationship
CIMB-Principal Asset Management Bhd
The Manager
CIMB Group Sdn Bhd
Holding company of the Manager
CIMB Group Holdings Bhd
(“CIMB”)
Ultimate holding company of the
Manager
CIMB Investment Bank Bhd
Fellow subsidiary to Manager
CIMB Islamic Bank Bhd
Fellow subsidiary to Manager
Subsidiaries and associates of CIMB as
disclosed in its financial statements
Subsidiary and associated companies of the
ultimate holding company of the Manager
37
CIMB ISLAMIC SUKUK FUND
14.
UNITS HELD BY THE MANAGER, PARTIES RELATED TO THE MANAGER, AND
SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED)
Units held by the Manager and parties related to the Manager
2014
Manager
CIMB-Principal Asset
Management Berhad
No. of
units
588
2013
RM
No. of
units
RM
773
305,767
407,037
In the opinion of the Manager, the above units are legally held and were transacted at the
prevailing market price.
The units are held beneficially by the Manager for booking purposes. Other than the above,
there were no units held by the Directors or parties related to the Manager.
In addition to related party disclosures mentioned elsewhere in the financial statements, set
out below are other significant related party transactions and balances. The Manager is of the
opinion that all transactions with the related companies have been entered into in the normal
course of business at agreed terms between the related parties.
2014
RM
2013
RM
70,311
144,662
2,000,589
2,000,485
20,520
20,228
Significant related party transactions
Profit income from Deposits with licensed Islamic
financial institutions:
- CIMB Islamic Bank Bhd
Significant related party balances
Shariah-compliant Deposits with licensed Islamic
financial institutions:
- CIMB Islamic Bank Bhd
Bank balance in a licensed bank:
- CIMB Islamic Bank Bhd
38
CIMB ISLAMIC SUKUK FUND
15.
TRANSACTIONS WITH BROKERS/DEALERS
Details of transactions with the top 10 brokers/dealers for the financial year ended 31 August
2014 are as follows:
Percentage
Percentage
of total
Value of
of total
Brokerage
brokerage
Brokers/Dealers
trades
trades
fees
fees
RM
%
RM
%
CIMB Islamic Bank Bhd #
RHB Islamic Bank Bhd
Malayan Islamic Bhd
Hong leong Islamic Bank
Bhd
Bank Islam Malaysia Bhd
RHB Investment Bank Bhd
AmIslamic Bank Bhd
Kenanga Investment Bank
Bhd
Alliance Islamic Bank Bhd
Hong Leong Investment
Bank Bhd
Others #
291,604,650
212,157,000
77,312,000
34.91
25.40
9.25
-
-
61,241,000
43,777,800
34,078,350
21,357,000
7.33
5.24
4.08
2.56
-
-
19,952,200
19,431,000
2.39
2.33
-
-
10,028,400
44,449,100
835,388,500
1.20
5.31
100.00
-
-
Details of transactions with the top 10 brokers/dealers for the financial year ended 31 August
2013 are as follows:
Percentage
Percentage
of total
Value of
of total
Brokerage
brokerage
Brokers/Dealers
trades
trades
fees
fees
RM
%
RM
%
CIMB Islamic Bank Bhd #
493,901,000
27.26
RHB Islamic Bank Bhd
447,850,000
24.72
Bank Islam Malaysia Bhd
224,739,644
12.40
Alliance Islamic Bank Bhd
162,096,000
8.95
Hong leong Islamic Bank
Bhd
137,338,000
7.58
RHB Investment Bank Bhd
87,141,383
4.81
AmIslamic Bank Bhd
43,367,517
2.39
Kenanga Investment Bank
Bhd
42,591,200
2.35
Public Islamic Bank Bhd
34,060,000
1.88
Standard Chartered Bank
32,211,680
1.79
Others #
106,396,490
5.87
1,811,692,914
100.00
#
Included in the transactions are trades conducted with CIMB Islamic Bank Bhd and CIMB
Bank Bhd, fellow subsidiaries of the Manager amounting to RM291,604,650 and
RM4,504,650 (2013: RM493,901,000 and RM8,664,407) respectively. The Manager is of
the opinion that all transactions with the related companies have been entered into in the
normal course of business at agreed terms between the related parties.
39
CIMB ISLAMIC SUKUK FUND
16.
SEGMENT INFORMATION
The internal reporting provided to the chief operating decision-maker for the Fund’s assets,
liabilities and performance is prepared on a consistent basis with the measurement and
recognition principles of MFRS and IFRS. The chief operating decision-maker is responsible
for the performance of the Fund and considers the business to have a single operating
segment located in Malaysia. Asset allocation decisions are based on a single, integrated
investment strategy and the Fund’s performance is evaluated on an overall basis.
The investment objective of the Fund is to gain higher than average income over the medium
to long-term by investing in a diversified portfolio consisting principally of Sukuk, certificates of
deposit, short-term money market instruments and other permissible investments under the
Shariah principles. The reportable operating segment derives its income by seeking
investments to achieve targeted returns consummate with an acceptable level of risk within
the portfolio. These returns consist of profit income earned from investments and gains on the
appreciation in the value of Shariah-compliant investments, and is derived from Ringgitdenominated unquoted Sukuk traded in Malaysia.
There were no changes in reportable operating segment during the financial year.
17.
APPROVAL OF FINANCIAL STATEMENTS
The financial statements have been approved for issue by the Manager on 31 October 2014.
40
CIMB ISLAMIC SUKUK FUND
DIRECTORY
Head office of the Manager
CIMB-Principal Asset Management Berhad (Company No.: 304078-K)
10th floor, Bangunan CIMB,
Jalan Semantan,
Damansara Height,
50490 Kuala Lumpur, MALAYSIA.
Postal address
CIMB-Principal Asset Management Berhad (Company No.: 304078-K)
P.O.Box 10571,
50718 Kuala Lumpur, MALAYSIA.
Website
www.cimb-principal.com
E-mail address
service@cimb-principal.com.my
General investment enquiries
(03) 7718 3100
Trustee for the CIMB Islamic Sukuk Fund
AmanahRaya Trustees Berhad
Tingkat 4, Wisma TAS
No. 21, Jalan Melaka
50100 Kuala Lumpur
MALAYSIA
Shariah Adviser of the CIMB Islamic Sukuk Fund
CIMB Islamic Bank Berhad. (Company No.:671380 H)
Level 34, Menara Bumiputra-Commerce
No 11, Jalan Raja Laut
50350 Kuala Lumpur MALAYSIA
Tel: (03) 2619 1188
Fax: (03) 2691 3513
Auditors of the Trusts and of the Manager
PricewaterhouseCoopers (No. AF: 1146)
Level 10, 1 Sentral,
Jalan Travers, Kuala Lumpur Sentral,
PO Box 10192, 50706 Kuala Lumpur, MALAYSIA
41
CIMB ISLAMIC SUKUK FUND
LIST OF CWA (an agency force of CIMB-Principal) OFFICES
ADDRESS
TELEPHONE
CWA BRANCHES
Central Region
• 46, 2nd Floor, Jalan SS 21/39 Damansara Utama,
47400, Petaling Jaya, Selangor.
03-77122888
• No 13B, 2nd Floor, Jalan Mamanda 7/1,
Off Jalan Ampang, 68000 Ampang, Selangor.
03-42702970
• 169-2, Jalan Radin Bagus, Bandar Baru Sri Petaling,
57000 Kuala Lumpur.
03-90592333
Northern Region
• No 5, Jalan Todak 4, Bandar Sunway,
Seberang Jaya, 13700 Perai, Penang.
04-3702155
04-3702156
• 30A, First Floor, Persiaran Greentown 1,
Greentown Business Centre, 30450 Ipoh, Perak.
05-2439001
05-2439002
East Coast Region
• Ground Floor, No 298-B,
Jalan Tok Hakim,
15000 Kota Bharu, Kelantan.
09-7471172
09-7471190
• No. 44 & 44A, Jalan Putra Square 6,
Putra Square,
25000 Kuantan, Pahang.
09-5134410
Southern Region
• 23 & 23A Jalan Harimau Tarum,
Taman Century, 80250 Johor Bahru, Johor.
07-3341748
• 21, Jalan Melaka Raya 24,Taman Melaka Raya, 75000 Melaka.
06-2811111
East Malaysia Region
• No 1 Jalan Pasar Baru, Kampung Air,
88000 Kota Kinabalu, Sabah.
088-239951
088-239952
• 5B, Lot 414, Section 10, KTLD Jalan Rubber,
93400 Kuching, Sarawak.
082-259777
• 1st and 2nd Floor, Lot 1092, Jalan Merpati,
98000 Miri, Sarawak.
085-432525
42
CIMB ISLAMIC SUKUK FUND
LIST OF CWA (an agency force of CIMB-Principal) OFFICES (CONTINUED)
ADDRESS
TELEPHONE
CWA SALES OFFICES
Central Region
• 32-3, 3rd Floor Jalan 1/27F, KL Satellite Centre (KLSC),
Wangsa Maju, Section 5, 53300 Kuala Lumpur.
03-41422911
• Unit B-3A-1, Setiawangsa Business Suites, Jalan Setiawangsa 11,
Taman Setiawangsa, 54200, Kuala Lumpur.
03-42566277
• J-06-01, Level 6, Block J, Solaris Mont Kiara,
Jalan Solaris, 50480 Kuala Lumpur.
03-62040113
• No 41B, 43B, Jalan Wan Kadir 2, Taman Tun Dr Ismail,
60000, Kuala Lumpur.
03-77241789
• A-2-1, Block A, 8 Jalan PJU 1A/20A,
Dataran Ara Damansara, 47301 Petaling Jaya, Selangor.
03-78430506
• Lot C-615 & Lot C-616, Level 6, Block C, Kelana Square,
17, Jalan SS7/26, Kelana Jaya, 47301 Petaling Jaya, Selangor.
03-78806893
• A-2-3, Block A, 8 Jalan PJU 1A/20A,
Dataran Ara Damansara, 47301 Petaling Jaya, Selangor.
03-78430503
• No 3A, Jalan Hentian 3, Pusat Hentian Kajang,
43000, Kajang, Selangor.
03-87345695
• 2-6A Jalan PJU 8/3A, Bandar Damansara Perdana,
47820 Petaling Jaya, Selangor.
03-77256320
• The Strand, 32A-3, Jalan PJU5/20D, Kota Damansara,
47810, Petaling Jaya, Selangor.
03-61428382
• Lot No 35-2, 2nd Floor, Jalan Sepah Puteri 5/1B, Pusat Dagangan Seri Utama,
PJU5, Kota Damansara, 47410, Selangor.
03-61403046
• 1-91-2, Block I, Jalan Teknologi 3/9, Kota Damansara,
47810, Petaling Jaya, Selangor.
03-61407275
• 47A, Tingkat 1, Jalan Badminton 13/29, Seksyen 13,
Shah Alam, 40100, Selangor.
03-55232693
• 98A, Jalan SS21/39, Damansara Utama,
47400, Petaling Jaya, Selangor.
03-77250825
• D10-08-G & D10-08-1, Pusat Perdagangan Dana 1, Jalan PJU1A/46,
47301, Petaling Jaya, Selangor.
03-78311267
43
CIMB ISLAMIC SUKUK FUND
LIST OF CWA (an agency force of CIMB-Principal) OFFICES (CONTINUED)
ADDRESS
TELEPHONE
CWA SALES OFFICES (CONTINUED)
Central Region (Continued)
• 37-2, Jalan Cecawi 6/33, PJU5, Kota Damansara,
47810, Petaling Jaya, Selangor.
03-61422970
• B-1-22 & B-2-22 & B-2-21 Block B 10 Boulevard, Jalan Cempaka,
Sungai Kayu Ara, 47400 Petaling Jaya, Selangor.
03-77223895
• No. 6-2, Jalan Dagang 1/1A, Taman Dagang,
68000 Ampang, Selangor.
03-42511129
• No 35B-2 (2nd Floor), Jalan Keluli Am7/Am, Pusat Perniagaan Bukit Raja,
40000 Seksyen 7, Shah Alam, Selangor.
03-33414978
• No 65-2, Jalan Nelayan A, 19/A, Pusat Daerah Seksyen 19,
40300 Shah Alam, Selangor.
03-54800296
• No B-3A-23, Merchant Square, Jalan Tropicana Selatan 1,
Tropicana Golf & Country Resort, 47410 Petaling Jaya, Selangor.
03-78874408
• Block E-1-03A & E-2-03A, Jalan SS6/20A, Dataran Glomac,
47301 Kelana Jaya, Selangor.
03-78807082
• No 12-01 D’Bayu Business Center, Jalan Serambi U8/24
Bukit Jelutong, 40150 Shah Alam, Selangor.
03-61428382
• No 41B 3B Curve Business Park, Medan Pusat Bandar 2D,
Seksyen 9, 43650 Bandar Baru Bangi, Selangor.
03-89264155
• 19-1 Jalan Adenium 2G/9, Adenium Business Center,
Bukit Beruntung, 48300 Rawang, Selangor.
03-60217385
East Coast Region
• Lot 252, No 73, Tingkat 1, Jalan Besar Pusat Niaga Paka,
23100, Paka, Terengganu.
09-8278001
• PT 10725, Ground Floor, Jalan Kubang Kurus, Taman Cukai Utama Fasa 4,
24000 Kemaman,Terengganu.
09-8589911
• No. 50A, Tingkat 1, Malay Town
25200 Kuantan, Pahang.
019-2366602
Southern Region
• No 38-01, Jalan Serangkai 18, Taman Bukit Dahlia,
81700 Pasir Gudang, Johor.
07-2326976
• 24-1 Jalan Padi Emas 4/1 Pusat Bandar Tampoi, Johor Bahru,
81200 Johor.
03-2326976
44
CIMB ISLAMIC SUKUK FUND
LIST OF CWA (an agency force of CIMB-Principal) OFFICES (CONTINUED)
ADDRESS
TELEPHONE
CWA SALES OFFICES (CONTINUED)
Southern Region (Continued)
• No 55-2, 57-2, 59-2, Jalan TU 49A, Taman Tasik Utama,
Ayer Keroh, 75450 Melaka.
06-2533289
• No 18-1 S2 B18, Biz Avenue Seremban 2, 70300 Seremban,
Negeri Sembilan.
06-6015749
• 16-01 Jalan Padi Emas 1/5, UDA Business Centre,
East Malaysia Region
• 15A, Jalan Ruby, 96000 Sibu, Sarawak.
084-325515
• Shop Lot No.2, Block 49, of Parent Lot 2646, Park City Commerce Square,
Jalan Kambar, Off Jalan Tun Ahmad Zaidi, 97000 Bintulu, Sarawak.
45
012-2172269