audited annual report - eunittrust.com.my · 2017. 9. 25. · audited annual report for the...

AUDITED ANNUAL REPORT

FOR THE 12-MONTHS FINANCIAL

PERIOD ENDED 30 June 2016

Manager

PHILLIP MUTUAL BERHAD (570409-K)

B-2-7 Block B Level 2 Unit 7, Megan Avenue II, 12 Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel : (603)2783 0300 Fax : (603)2166 6417

Email : [email protected] Website : http://www.phillipmutual.com

Trustee CIMB COMMERCE TRUSTEE BERHAD (313031-A)

mailto:[email protected]

http://www.phillipmutual.com/

Phillip Master Money Market Fund Page 1

CONTENTS

Page

1. MANAGER'S REPORT 2

- Type Of Fund 2

- Category Of Fund 2

- Investment Objective 2

- Performance Benchmark 2

- Investment Policy 2

- Distribution Policy 2

- Fund Performance 2 - 4

- Details Of Distribution And Unit Split 4

- Market Review 4 – 7

- Market Outlook 7

- Strategy Going Forward 7

- Asset Allocation Of The Fund 7 – 8

- Significant Changes In The State Of Affairs Of The Fund 8

- Disclosure Of Circumstances That Materially Affect Any Interest of The Unitholder

8

- Breakdown Of Unit Holdings By Size 8

- Soft Commission Received From Brokers 8

2. TRUSTEE'S REPORT 9

3. STATEMENT BY MANAGER 10

4. AUDITORS' REPORT 11 – 12

5. STATEMENT OF FINANCIAL POSITION 13

6. STATEMENT OF COMPREHENSIVE INCOME 14

7. STATEMENT OF CHANGES IN EQUITY 15

8. STATEMENT OF CASH FLOW 16

9. NOTES TO THE FINANCIAL STATEMENTS 17 – 29

10. FUND PERFORMANCE 30 – 31

11. CORPORATE INFORMATION 32 – 33


1. MANAGER'S REPORT For the financial year ended 30 June 2016

TYPE OF FUND Income Fund. CATEGORY OF FUND Money Market Fund. INVESTMENT OBJECTIVE The objective of Phillip Master Money Market Fund (PMMMF) is to provide investors with returns higher than Ringgit Malaysia savings deposits while maintaining the principal value and a high degree of liquidity. Achievement of Investment Objective The Fund is managed within its investment objective. During the period under review, the Fund has achieved its investment objective and has distributed income on a monthly basis. The Fund’s return was better than the returns offered by Maybank Kawanku Savings Account. PERFORMANCE BENCHMARK Maybank Kawanku Savings Rate. INVESTMENT POLICY The Fund invests in short-term instruments with a high degree of liquidity such as fixed income securities, certificates of deposits, promissory notes, short-term money market instruments and other approved money market investments.

DISTRIBUTION POLICY

The distribution of income for the PMMMF will be on monthly basis whenever possible. Distribution amount will be automatically reinvested into the Fund. The amount available for distribution is subject to interest rate movements, market conditions and performance of the Fund.

FUND PERFORMANCE For the purpose of benchmark comparison, we have used Maybank Kawanku Savings Rate as both provide similar liquidity. Performance of PMMMF vs. Maybank Kawanku Savings Account (Since 30 June 2007 till 30 June 2016). We used rates for the RM500,000 deposit as benchmark for comparison purposes.


0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

Jul-

07

Oct

-07

Jan

-08

Ap

r-0

8Ju

l-0

8O

ct-0

8Ja

n-0

9A

pr-

09

Jul-

09

Oct

-09

Jan

-10

Ap

r-1

0Ju

l-1

0O

ct-1

0Ja

n-1

1A

pr-

11

Jul-

11

Oct

-11

Jan

-12

Ap

r-1

2Ju

l-1

2O

ct-1

2Ja

n-1

3A

pr-

13

Jul-

13

Oct

-13

Jan

-14

Ap

r-1

4Ju

l-1

4O

ct-1

4Ja

n-1

5A

pr-

15

Jul-

15

Oct

-15

Jan

-16

Ap

r-1

6

2008 2009 2010 2011 2012 2013 2014 2015 2016

PMMMF Returns vs Maybank Kawanku Savings Rate

Maybank Kawanku PMMMF Return

Source: Maybank2u Website & Bloomberg. Since inception, the Fund has distributed dividend on a monthly basis. The Fund’s return was better than the returns offered by Maybank Kawanku Savings Account. Beneath is the comparison table.

PMMMF vs Maybank Kawanku Savings Account Deposit Rates (w.e.f. 16 July 2014)

Balance PMMMF * (% p.a.)

Maybank ** (% p.a.)

Difference (% p.a.)

Up to RM10,000 3.65 0.35 3.30

Up to RM25,000 3.65 0.45 3.20

Up to RM50,000 3.65 0.55 3.10

Up to RM100,000 3.65 0.85 2.80

Up to RM200,000 3.65 1.35 2.30

Up to RM500,000 3.65 1.46 2.19

Above RM500,000

3.65 1.56 2.09

Source:* PMMMF monthly distribution rate as of Jun’16 **Maybank2u website

Since inception, the Fund has distributed dividend on a monthly basis, averaging at 2.80% p.a. The Fund has convincingly out-performed the benchmark as illustrated in the comparison table above. As such, the Fund has achieved its objective to provide investors with higher than Ringgit Malaysia savings deposits while maintaining the principal value and high degree of liquidity.


Fund performance from July 2015 – June 2016

30.06.16 30.06.15 % chg RM RM %

Total NAV

474,185,481 552,183,995 -10.88 NAV/unit 0.5000

* 0.5000* -

(Source: Financial Statement Audited by Ernst & Young)

* 01.07.14 – 30.06.15 Total Income Distribution was RM19,627,029 01.07.15 – 30.06.16 Total Income Distribution was RM20,201,554

DETAILS OF DISTRIBUTION AND UNIT SPLIT

For the period under review, the distribution record is as follows:

3.50% p.a. for the period from 01.07.15 to 31.08.15







The NAV per unit before and after distribution remains at RM0.50. No unit split was made by the Fund during the period under review.

Market Review In Euro, Greece had reached a deal on a third bailout with its creditors and remains in the Eurozone in July 2015. Greece struck a deal to receive as much as €85 billion over a period of three years to help it shore up its beleaguered banking sector and allow the government to keep solvent on provision that Greece can implement its promised reforms. The ECB delivered an extension of the Asset Purchase Program until March 2017; 10 basis points cut in the deposit rate to -0.30%, broadened the range of assets accepted in the program and promised to rollover the stock of debt it had purchased. Elsewhere, the headline inflation reading of euro area dipped 0.1% in September, falling below zero for the first time since March – when the ECB launched its asset-purchase program, due to the sharp fall in energy prices. This together with the unemployment rate that remained at 11% in August triggered market expectations for a further stimulus from the ECB, which added pressure on the EUR. Euro area’s consumer prices were up 0.4% in January 2016. Euro area industrial production climbed 1.9% in October, m-o-m production rose 0.6%. The euro area unemployment data unexpected fell to 10.5% in November from a downwardly revised 10.6% in October. This is also the lowest level in four years. Meanwhile, market volatility increased after Yellen’s testimony to the Congress suggesting uncertainty over the timing of the future US rate hikes. As a result of the safe-haven flow, core European yields fell sharply, with Germany 10-year yields closed at 0.19%, the lowest level since April 2015. The European Central Bank (ECB) slashed its 2016 inflation forecast to 0.1% against 1.0% and projected only a slow recovery in inflation rate going forward. In response to this very weak inflation environment, the ECB cut the main refinancing rate by 5 basis points to a record low 0%. The already-negative deposit rate was cut by 10 basis points to -0.40%, and the marginal lending facility rate was reduced by 5 basis points to 0.25% in March. It also expanded the monthly purchases under the asset purchase program by EUR20 billion to EUR80 billion starting in April and also announced a new series of four targeted longer-term refinancing operations (TLTROs). However, ECB President Draghi indicated that the additional easing would come via other unconventional


policy tools and that interest rates would stay at exceptionally low levels well past the ending of QE. However, the effort of monetary easing appears to have little effect on inflation or euro zone business growth in April. Elsewhere, Eurozone’s unemployment rate for January dropped to 10.3%, the lowest since August 2011. The Eurozone economy grew by 0.6% in 1Q16, the highest rate for 12 months, supported by household spending and private sector investment as per the data shown. The Bank upgraded its 2016 Eurozone growth forecast to 1.6% this year, maintaining its forecast of 1.7% next year. It also raised its 2016 inflation forecast to 0.2% from 0.1%, citing factors including the base effect of a recent rise in oil prices. Elsewhere, Britain's referendum on its membership in the EU finally arrives on 23 June 2016 and United Kingdom voted for secession from the EU membership. Given the deep economic ties between Britain and the EU, Brexit would have implications across the global economy. In the short term, however, the impact is most apparent in the capital market and is largely reflected in the performance of the capital market. However, Brexit doesn’t happen immediately. Lengthy negotiations and secession process are expected to be completed within 2 years. But Brexit has set a precedent and potentially opens up more referendum in other European countries to leave the EU. Fallout from Brexit vote is likely to dominate market positioning, leaving major currencies on highly volatile ground and Sterling at risk of deeper losses over the foreseeable future. Rating agencies lowered UK’s sovereign rating from AAA to AA. In US, The Fed Reserve seems to be on track to raise interest rates by the end of the year given the generally improving U.S. economy. Federal Reserve Chair Yellen largely stuck to her recent script, reiterating that if the economy evolves as expected, then it would be “appropriate at some point this year” to commence normalising monetary policy. The US economy created 142,000 jobs in September, higher than the downwardly revised 136,000 in August, but lower than the market expectations for a growth of 201,000. The consumer inflation slipped to an annual rate of zero while retail sales rose a mere 0.1% in September. Federal Reserve ended the era of near-zero American fund rates in November. On 16 Dec, the US Fed hiked the Federal Funds Rate by 0.25 percentage points, from its previous 0 - 0.25% range. The sharp increase in the non-farm payroll employment, the strong nonmanufacturing ISM survey, and the narrowed trade deficit all helped to support the strengthening of US dollar end of the year. Fixed income markets ended the year with the largest number of violent dislocations with record low trading liquidity, heavy investor crowding and the manipulation risk by central banks. US dollar was modestly firmer on the last trading week of the year, clinched a winning year though its gains have tapered over a mostly dismal December 2015. A mix of seasonality factors and profit taking also contributed to the US dollar's underperformance over the final month of the year. The inflation in US continues to run below the target rate, in part due to low oil prices which led to further decline in energy costs which are likely to see inflation remains soft over the near-term. A revised reading of gross domestic product (GDP) last quarter showed the US economy grew at a 1% annualized rate, compared with an initial estimate of 0.7%. Strong JOLTs job openings and labour market conditions index also suggesting demand for labour remains strong and consistent with the strength in non-farm payrolls released in January. The businesses were not discouraged by the FOMC’s decision to start normalising interest rate in December 2015. Meanwhile, the GDP forecasts for 2016 were revised lower on global growth risks and tepid business investment. While oil has provided a downward shock to headline inflation, the more-important core inflation forecasts were unchanged for 2016. The Federal Reserve said that the economy kept expanding in late February and March, despite weakness in the energy sector and a slowdown in exports of some factory and farm products because of global weakness and the strong dollar. US manufacturing activity faded in April, suggesting improvement in the struggling sector will be modest as headwinds remain. GDP expanded at 0.8% rate in the first quarter, up from an initial 0.5%, supported by the stronger home building and a steady increase in inventory investment by businesses. The currency has been on appreciation bias this month as the world’s largest economy has shown renewed signs of vigour and Fed Reserve has played up the possibility of an imminent interest rate hikes as early as June 2016.


The US Federal Reserve kept interest rates unchanged after the 25 bpts increase in December until June and signalled it still plans to raise rates twice in 2016, though it said slower economic growth would crimp the pace of monetary policy tightening in future years. Fed Chair Janet Yellen acknowledged the need to see clear signs of economic strength before lifting rates. The Fed also said the economy would grow only 2.0% this year and in 2017, 0.1 percentage point lower than previously forecast for each year. It also cut its longer term view of the appropriate federal funds rate by a quarter point to 3.0%. US inflation continued to stay firm in May as higher gasoline prices and rapidly rising rents more than offset a drop in grocery prices. The US economy grew slightly faster at the first quarter and the GDP expanded at an annual rate of 1.1% in Q1 in response to the Brexit, the Fed is being cautious to raise the interest rate this year. On the local front, Malaysia’s headline inflation eased marginally from +2.6% y-o-y in September to +2.5% y-o-y in the month of October, in line with market expectations. Further, Malaysia released its 3Q2015 GDP at +4.7% y-o-y, meeting expectations and had little impact on MGS trading. Malaysia’s forex reserves climbed to $94.1 billion as at 15 Oct from $93.3 billion in the prior two weeks. Meanwhile, CPI eased to +2.6% y-o-y in September from +3.1%. On the other hand, Malaysia’s exports in October surged 16.7% from 8.8% y-o-y, supported by demand for electrical and electronic products while steep decline in imports, from 9.6% to -0.4%. With the exports grew faster than the imports, Malaysia’s trade balance increased from RM9.69 billion to RM12.16 billion for the month of October.

In January 2016, Prime Minister Najib Tun Razak presented the recalibrated Budget 2016. The Government has revised Malaysia’s 2016 GDP growth to 4.0%-4.5% from 4.0%-5.0% and will remain committed to maintain the fiscal consolidation measure for 2016, which is to achieve budget deficit of 3.1%. Besides, Federal government revenue in 2016 is expected to face a RM7.0b to RM9.0b shortfall after a change in the oil price assumption from US$48 a barrel to US$30 to US$35. On the other hand, Moody’s reverted Malaysia sovereign credit outlook to Stable from Positive, but kept the investment-grade rating unchanged at A3, on mounting external pressure, macro-financial risks and limited room to ease public debt burden. Meanwhile, Bank Negara Malaysia (BNM) delivered a surprise cut to the Statutory Reserve Requirement (SRR) by 50 basis points (bps) to 3.50% while leaving the Overnight Policy Rate (OPR) unchanged at 3.25% for the 9th consecutive meeting as expected. BNM said the SRR cut is to raise liquidity in the banking system and it is estimated that the 50bps cut in SRR would inject approximated RM6.0bn to the system. In its monetary policy statement, BNM said its current policy stance remains accommodative and supportive of economic activity.

Malaysia’s GDP grew at 4.5% in 4Q1 which was driven by stronger domestic demand offsetting slumping in oil and commodity prices. The inflation rate for March increased at a slower pace of 2.6% due to the sharp decline in transport group. In Meanwhile, data from Bank Negara showed there was a net inflow of RM10.0 billion by overseas fund managers into Malaysia in the month of Mar 2016, the largest monthly rise since April 2015. Besides, China’s government has started buying more Malaysian government bonds and this inflow of new foreign money could rise to CNY50.0b (RM30.0b) in total, according to International Trade and Industry Minister II Datuk Seri Ong Ka Chuan. On another note, Prime Minister Office announced the appointment of Datuk Muhammad Ibrahim as the Governor of Bank Negara Malaysia (BNM) for a term of 5 years, starting on 1st of May 2016. Muhammad Ibrahim has been Deputy Governor of BNM since 2010 and a member of the monetary policy committee.

The overnight policy rate was retained at 3.25% during the monetary policy meeting on 19 May 2016. The tone of the policy statement has turned neutral, as BNM’s growth assessment on both the international and domestic front had turned less downbeat. Meanwhile, Malaysia 1QGDP expanded 4.2% from the same quarter a year ago, slower than the 4.5% growth registered in the previous quarter and the slowest pace of growth since 2009. The private sector remains the main growth pillar with surprised pick up in private spending for the 2nd straight quarter but was offset by weaker investment activities. Elsewhere, fresh numbers


from the central bank showed foreign players remained net buyers of Malaysian sovereign bonds in April 2016. April exports rose by 1.6% y-o-y while the total values of imports were down 2.3% y-o-y. Malaysia’s foreign exchange reserves rose to an 11-month high of approximately US$97.3b as at end-May. The Malaysian market has been resilient and is continuing to operate in an orderly manner after Britain's decision to exit the European Union during the June 23 referendum, according to the Financial Market Committee. The central bank commented that they would continue to provide sufficient liquidity to the financial markets and the domestic markets including the government bonds, corporate bonds and money markets were relatively stable.

Market Outlook

We forecast Malaysia’s 2016 GDP growth will be within 4.0%-4.5% for 2016 and inflation is projected to stay in range of 2.0-3.0% in 2016. Pressuring the growth outlook is due to uncertainties of the external demand, softer performance of the ringgit which influences the trading sentiments and low commodity prices. While the current monetary policy stance remains accommodative and is supportive of economic activity, we believe BNM stands ready to act to support growth should downside risks from both the domestic and external materialize. Hence, we expect that Bank Negara Malaysia would reduce the Overnight Policy Rate (OPR) by 25% at the second half of 2016. Looking forward, current trends suggest that export growth in the coming months will continue to remain weak. Going forward, we may see gradual increase in the foreign holdings of MGS in the long-end space due to there is a good presence of foreign investors with appetite for long duration MGS. Strategy Going Forward As at end of June 2016, the Fund had the following exposures:

99.99% in short-term deposits with maturity of not more than 1 year; and

0.01% in Cash & Other Liquid Assets The Fund will stay invested in short-term money market instruments with maturity not exceeding 365 days (1-year), in line with the Fund’s mandate. We are expecting that BNM would cut the OPR by 25bps in 2H2016. Hence, we are increasing the fund durations gradually. However, for risk management measures, the Fund will allocates a portion to short-term deposits of 1 month or less to meet regular redemptions by unit holders and avoid liquidity risks.

ASSET ALLOCATION OF THE FUND The asset allocation of the Fund is as follow:


Comparative table covering last 3 financial years for industry sector

Sector June

16

%

June

15

%

June

14

%

Short-term & Fixed Deposits 99.99 99.99 99.99 CP, BA & NCD - - - PDS with maturity < 1 year - - - Cash 0.01 0.01 0.01

100 100 100

The portfolio duration was extended but portfolio composition now composed of 100% liquid instruments to meet regular redemptions and to avoid liquidity risk.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS OF THE FUND

For the period under review, there were no significant changes in the state of affairs of the Fund not otherwise disclosed in the financial statements.

DISCLOSURE OF CIRCUMSTANCES THAT MATERIALLY AFFECT ANY INTEREST OF THE UNITHOLDER

For the period under review, there were no circumstances that materially affect any interest of the unitholder.

BREAKDOWN OF UNIT HOLDINGS BY SIZE

Units No. of Unithold

er

% Unit holdings %

5,000 & below 1,716 68.45 1,532,358 0.16

5,001 to 10,000 194 7.74 1,414,742 0.15

10,001 to 50,000 330 13.16 7,800,269 0.82

50,001 to 500,000 167 6.67 28,433,257 3.00

500,001 & above 100 3.98 909,190,337 95.87

Total 2,507 100 948,370,963 100

SOFT COMMISSION RECEIVED FROM BROKERS

During the period under review, we neither received soft commission nor rebates from any brokers by virtue of transaction conducted by the Fund.


2. TRUSTEE'S REPORT

To the unit holders of Phillip Master Money Market Fund For the year ended 30 June 2016 We, CIMB Commerce Trustee Berhad ("the Trustee"), being the Trustee for Phillip Master Money Market Fund ("the Fund"), are of the opinion that Phillip Mutual Berhad ("the Manager"), acting in the capacity as Manager of the Fund, have fulfilled its duties in the following manner for the financial year ended 30 June 2016: (a) The Fund has been managed in accordance with the limitations imposed on the

investment powers of the Manager and the Trustee under the Deed, the Securities Commission Malaysia’s Guidelines on Unit Trust Funds, the Capital Market and Services Act 2007 (as amended from time to time) and other applicable laws;

(b) Valuation/pricing of units of the Fund has been carried out in accordance with the

Deed and relevant regulatory requirements; (c) Creation and cancellation of units have been carried out in accordance with the Deed

and relevant regulatory requirements; and (d) The distributions of returns by the Fund are relevant and reflects the investment

objectives of the Fund. For and on behalf of CIMB Commerce Trustee Berhad (313031-A) Lee Kooi Yoke Chief Operating Officer Kuala Lumpur, Malaysia 26 August 2016


3. STATEMENT BY MANAGER For the financial year ended 30 June 2016

We, Datin Hajjah Nona binti Salleh and Prof. Tan Sri Dato' (Dr) Ir. Jamilus bin Md. Hussin, being two of the Directors of Phillip Mutual Berhad, do hereby state that, in the opinion of the Manager, the accompanying financial statements set out on pages 13 to 29 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 Phillip Master Money Market Fund as at 30 June 2016 and of its financial performance, changes in equity and cash flows for the financial year then ended. For and on behalf of the Manager Phillip Mutual Berhad DATIN HAJJAH NONA BINTI SALLEH PROF. TAN SRI DATO' (DR) IR. JAMILUS BIN MD. HUSSIN Kuala Lumpur, Malaysia 26 August 2016


4. AUDITORS' REPORT For the financial year ended 30 June 2016

Independent auditors’ report to the Unit Holders of Phillip Master Money Market Fund (the “Fund”) Report on the financial statements We have audited the financial statements of Phillip Master Money Market Fund ("the Fund"), which comprise the statement of financial position as at 30 June 2016, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 13 to 29. Manager’s and Trustee’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. The Trustee is 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’ 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 about 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 judgement, 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 Fund’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.


Independent auditors’ report to the Unit Holders of Phillip Master Money Market Fund (the “Fund”) (cont’d.) Opinion In our opinion, the financial statements give a true and fair view of the financial position of the Fund as at 30 June 2016 and of its financial performance, changes in equity and cash flows for the 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, as a body, and for no other purpose. We do not assume responsibility to any other person for the content of this report Ernst & Young AF: 0039 Chartered Accountants

Muhammad Syarizal bin Abdul Rahim No. 3157/01/17(J) Chartered Accountant

Kuala Lumpur, Malaysia 26 August 2016


5. STATEMENT OF FINANCIAL POSITION As at 30.06.2016

2016 2015

Note RM RM

Assets

Deposits with licensed financial

institutions 3 470,780,432 550,282,918

Interest receivable 5,604,682 3,807,729

Cash at bank 35,382 102,963 Total assets 476,420,496 554,193,610

Liabilities

Amount due to Manager 330,423 205,738

Amount due to Trustee 27,653 45,974

Distribution payable 1,794,626 1,691,574

Other payables 42,675 66,329

Total liabilities 2,195,377 2,009,615

Unit Holders' equity

Unit Holders' capital 4 474,185,481 552,183,995

Retained earnings 39,638 -

Total equity/Net asset value ("NAV")

attributable to Unit Holders 474,225,119 552,183,995

Total equity and liabilities 476,420,496 554,193,610

Number of units in circulation 4(a) 948,370,963 1,104,367,989

NAV per unit 0.5000 0.5000

The accompanying notes form an integral part of the financial statements.


6. STATEMENT OF COMPREHENSIVE INCOME For the year ended 30 June 2016

2016 2015

Note RM RM

Income

Interest income 21,704,750 21,058,190

21,704,750 21,058,190

Expenses

Manager's fee 5 1,306,419 1,190,011

Trustee's fee 6 167,025 177,218

Auditors' remuneration

- current year 15,500 8,000

- prior year underprovision 7,500 -

Tax agent's fee 6,338 3,000

Administrative fee and other expenses 87,960 52,932

1,590,742 1,431,161

Net income before tax 20,114,008 19,627,029

Income tax expense 7 - -

Net income after tax, representing total

comprehensive income for the year 20,114,008 19,627,029

Net income after tax is made up of the following:

Net realised income 20,114,008 19,627,029

Distribution for the year

Gross/Net distribution (RM) 8 20,074,370 19,627,029

Gross/Net distribution per unit (sen) 8 0.0186 0.0172



7. STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2016

Unit Holders' Retained Total

capital earnings equity

RM RM RM

As at 1 July 2014 561,264,923 - 561,264,923

Total comprehensive

income for the year - 19,627,029 19,627,029

Creation of units 1,905,249,176 - 1,905,249,176

Cancellation of units (1,932,265,541) - (1,932,265,541)

Reinvestment of units 17,935,437 - 17,935,437

Income distribution (Note 8) - (19,627,029) (19,627,029)

As at 30 June 2015 552,183,995 - 552,183,995

As at 1 July 2015 552,183,995 - 552,183,995

Total comprehensive

income for the year - 20,114,008 20,114,008

Creation of units 1,571,830,512 - 1,571,830,512

Cancellation of units (1,669,800,344) - (1,669,800,344)

Reinvestment of units 19,971,318 - 19,971,318

Income distribution (Note 8) - (20,074,370) (20,074,370)

As at 30 June 2016 474,185,481 39,638 474,225,119



8. STATEMENT OF CASH FLOWS For the year ended 30 June 2016

2016 2015

RM RM

Cash flows from operating and investing activities

Interest received 19,907,797 20,105,276

Placements of deposits with licensed financial institutions,

net of withdrawals 79,502,486 8,421,239

Manager's fees paid (1,181,734) (1,253,596)

Trustee's fee paid (185,346) (169,804)

Payment of other fees and expenses (140,952) (26,657)

Net cash generated from operating and

investing activities 97,902,251 27,076,458

Cash flows from financing activities

Proceeds from creations of units 1,571,830,512 1,905,249,176

Payments for cancellations of units (1,669,800,344) (1,932,265,541)

Net cash used in financing activities (97,969,832) (27,016,365)

Net (decrease)/increase in cash and cash equivalents (67,581) 60,093

Cash and cash equivalents at the beginning of

the year 102,963 42,870

Cash and cash equivalents at the end of the year 35,382 102,963

Cash and cash equivalents comprise:

Cash at bank 35,382 102,963



9. NOTES TO THE FINANCIAL STATEMENTS As At 30 June 2016

(1) The fund, the manager and their principal activities

Phillip Master Money Market Fund (hereinafter referred to as "the Fund") was constituted pursuant to the execution of a Master Trust Deed dated 18 March 2003 as supplemented by the Supplemental Deeds dated 19 May 2003, 6 June 2003, and 3 August 2009 between Phillip Mutual Berhad as the Manager and CIMB Commerce Trustee Berhad as the Trustee. The Fund was launched on 18 June 2003. The principal activity of the Fund is to invest in a portfolio of investments that provide investors with returns higher than Ringgit Malaysia savings deposits while maintaining principal value and a high degree of liquidity. The Manager, Phillip Mutual Berhad is a company incorporated in Malaysia. The Manager is principally engaged in the management of unit trust funds. The financial statements were authorised for issue by the Board of Directors of the Manager in accordance with a resolution of the Directors on 26 August 2016.

(2) Summary of significant accounting policies

2.1 Basic 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 also prepared in compliance with International Financial Reporting Standards (“IFRS”). The financial statements of the Fund have been prepared under the historical cost convention, unless otherwise stated in the accounting policies.

2.2 Changes in accounting policies

Adoption of Standards, Amendments and Issues Committee ("IC") Interpretations The accounting policies adopted are consistent with those of the previous financial year except for amended MFRSs amd Annual Improvements effective for the Funds' annual period beginning on or after 1 July 2015. The adoption of the amended MFRSs and Annual Improvements did not have any impact on the financial statements of the Fund. Standards and Interpretations issued but not yet effective As at the date of authorisation of these financial statements, the following pronouncements have been issued by MASB but are not yet effective and have not been adopted by the Fund.


(2) Summary of significant accounting policies (cont'd.)

2.2 Changes in accounting policies (cont’d.)

Standards and Interpretations issued but not yet effective (cont’d.)

Description

Effective for annual periods

beginning on or after

Annual Improvements to MFRSs 2012 - 2014 Cycle 1 January 2016 Amendments to MFRS 116 and MFRS 138: Clarification of Acceptable Methods of Depreciation and Amortisation 1 January 2016 Amendments to MFRS 116 and MFRS 141: Agriculture: Bearer Plants 1 January 2016 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred Amendments to MFRS 11: Accounting for Acquisitions of Interests in Joint Operations 1 January 2016 Amendments to MFRS 127: Equity Method in Separate Financial Statements 1 January 2016

Amendments to MFRS 101: Disclosure Initiatives 1 January 2016 Amendments to MFRS 10, MFRS 12 and MFRS 128: Investment Entities: Applying the Consolidation Exception

1 January 2016

MFRS 14: Regulatory Deferral Accounts 1 January 2016

Amendments to MFRS 134: Interim Financial Reporting 1 January 2016

Amendments to MFRS 107: Disclosure Initiative 1 January 2017 Amendments to MFRS 112: Recognition of Deferred Tax Asset for Unrealised Losses 1 January 2017 MFRS 15: Revenue from Contracts with Customers 1 January 2018

MFRS 9: Financial Instruments 1 January 2018

MFRS 16: Leases 1 January 2019

The Fund expects that the adoption of the above pronouncements will have no material impact on the financial statements in the period of initial application except as discussed below: MFRS 9 Financial Instruments In November 2014, MASB issued the final version of MFRS 9 Financial Instruments which reflects all phases of the financial instruments project and replaces MFRS 139 Financial Instruments: Recognition and Measurement and all previous versions of MFRS 9. The standard introduces new requirements for classification and measurement, impairment and hedge accounting. MFRS 9 is effective for annual periods beginning on or after 1 January 2018, with early application permitted.


(2) Summary of significant accounting policies (cont'd.)

2.2 Changes in accounting policies (cont’d.)

Standards and Interpretations issued but not yet effective (cont’d.) MFRS 9 Financial Instruments (cont’d.) Retrospective application is required, but comparative information is not compulsory. The adoption of MFRS 9 will have an effect on the classification and measurement of the Fund's financial assets, but no impact on the classification and measurement of the Fund's financial liabilities.

2.3 Accounting estimates and judgments

The preparation of the Fund’s financial statements requires the Manager to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability in the future. There are no major judgements nor key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that may cast significant doubt upon the Fund's ability to continue as going concern. Therefore, the financial statements continued to be prepared on a going concern basis.

2.4 Financial assets and liabilities

Financial assets and 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 instrument. (i) Financial assets

The Fund determines the classification of its financial assets at initial recognition, and the categories include financial assets at fair value through profit or loss (“FVTPL”) and loans and receivables. When financial assets are recognised initially on trade date, they are measured at fair value, plus, in the case of financial assets not at FVTPL, directly attributable transaction costs. Financial assets are derecognised on trade date when the rights to receive cash flows from the asset has expired or the Fund has transferred substantially all risks and rewards of ownership.

Financial assets at FVTPL Financial assets are classified as financial assets at FVTPL if they are held for trading or are designated as such upon initial recognition. Financial assets held for trading are those acquired principally for the purpose of selling in the near term. Subsequent to initial recognition, financial assets at FVTPL are measured at fair value. Changes in the fair value of those financial instruments are recorded in "Net unrealised gain or loss on changes in fair value of financial assets at FVTPL". Interests earned from such instruments are recorded separately in "Interest income".


(2) Summary of significant accounting policies (cont’d.)

2.4 Financial assets and liabilities (cont’d.)

(i) Financial assets (cont’d.)

Loans and receivables The Fund does not have any loans throughout the financial year. Financial assets with fixed or determinable payments that are not quoted in an active market are classified as receivables. Such receivables include amount due from the Manager and other receivables. Subsequent to initial recognition, receivables are measured at amortised cost.

(ii) Classification of realised and unrealised gains and losses

Unrealised gains and losses comprise changes in the fair value of financial instruments for the period and from reversal of prior period’s unrealised gains and losses for financial instruments which were realised (i.e. sold, redeemed or matured) during the reporting period.

(iii) Financial liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability. Financial liabilities are recognised initially at fair value and subsequently stated at amortised cost. The Fund includes in this category amount due to brokers/financial institutions, amounts due to the Manager and the Trustee and other payables. A financial liability is derecognised when when it is settled.

2.5 Unit Holders’ capital

The Unit Holder's contributions to the Fund are classified as equity instruments.

2.6 Cash and Cash equivalents

Cash and cash equivalents comprise cash at bank which has an insignificant risk of changes in value.

2.7 Income 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. Income is measured at the fair value of consideration received or receivable. Interest income is recognised using the effective interest rate method.

2.8 Taxation Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rate and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.


(2) Summary of significant accounting policies (cont’d.)

2.9 Distributions Distributions are at the discretion of the Manager. A distribution to the Fund’s Unit Holder is accounted for as a deduction from realised reserves, either in the form of cash or units in the Fund. A proposed distribution is recognised as a liability in the year in which it is approved.

(3) Deposits with licensed financial institutions

2016 2015

RM RM

Licensed investment banks 220,351,432 345,616,509

Licensed banks 250,429,000 204,666,409 470,780,432 550,282,918

The weighted average interest rates of deposits at the reporting date and the average

maturity of deposits at the end of the financial year were as follows:

2016 2015

% %

Licensed investment banks 3.99 3.75

Licensed banks 4.11 3.83

Weighted average interest

rates (per annum)

2016 2015

Days Days

Licensed investment banks 109 80

Licensed banks 127 151

Average remaining maturity


(4) Unit Holders’ Capital

Note 2016 2015

RM RM

Unit Holders' capital (a) 474,185,481 552,183,995

(a) Unit Holders' capital

2016 2015

No. of units RM No. of units RM

As at 1 July 1,104,367,989 552,183,995 1,122,529,847 561,264,923

Add: Creation of units 3,143,661,026 1,571,830,512 3,810,498,351 1,905,249,176

Add: Reinvestment

of units 39,942,636 19,971,318 35,870,873 17,935,437

Less: Cancellation

of units (3,339,600,688) (1,669,800,344) (3,864,531,082) (1,932,265,541)

At at 30 June 948,370,963 474,185,481 1,104,367,989 552,183,995

(5) Manager’s fee

Article 21.1 of the Deed provides that the Manager's fee is computed on a daily basis, up to a maximum of 1.50% (2015: 1.50%) per annum of the gross NAV of the Fund before deducting the Manager's fee and Trustee's fee for the particular day. The Manager's fee charged for the year is at the effective rate of 0.24% (2015: 0.21%) per annum of the gross NAV of the fund.

(6) Trustee’s fee

Article 21.1 of the Deed provides that the Trustee's fee is computed on a daily basis, up to a maximum of 0.10% (2015: 0.10%) per annum of the gross NAV of the Fund before deducting the Manager's fee and the Trustee's fee for that particular day, or subject to a minimum of RM18,000 per annum. The Trustee's fee charged for the year is 0.03% (2015: 0.03%) per annum of the gross NAV of the Fund.

(7) Income tax expense

Malaysian income tax is calculated at the Malaysian tax rate of 24% of the estimated assessable income for the financial year. The Malaysian statutory tax rate reduced to 24% as compared to 25% for the previous financial year. In accordance with Schedule 6 of the Income Tax Act 1967, interest income earned by the Fund is exempted from tax.


(7) Income tax expense (cont’d.)

A reconciliation of income tax expense applicable to net income before tax at the statutory income tax rate to income tax expense at the effective income tax rate of the Fund is as follows:

2016 2015

RM RM

Net income before tax 20,114,008 19,627,029

Tax at Malaysian tax rate of 24% (2015: 25%) 4,827,362 4,906,757

Effect of income not subject to tax (5,209,140) (5,264,547) Effect of expenses not deductible for tax purposes

(under Section 63B of the Income Tax Act, 1967) 63,576 54,638

Restriction on tax deductible expenses for the Fund 318,202 303,152 Tax expense for the year - -

(8) Income distribution

Distributions to Unit Holders were from the following sources:

2016 2015

RM RM

Interest income 21,665,112 21,058,190Less: Expenses (1,590,742) (1,431,161)

20,074,370 19,627,029

Analysed as:

Reinvestment of units 18,279,744 17,935,455Distribution payable 1,794,626 1,691,574

20,074,370 19,627,029


(8) Income distribution (cont’d.) The Fund operates on a monthly income distribution policy. Details of income distributions made by the Fund to the Unit Holders are as follows:

2016

Gross/net

Month of Units in distribution

accrual circulation Gross distribution Net distribution per unit

Units RM

% [1]

RM % [1]

RM

31.7.2015 963,552,888 1,581,263

3.50 1,581,263 3.50 0.0016

31.8.2015 1,129,384,729 1,609,294

3.50 1,609,294 3.50 0.0014

30.9.2015 1,217,283,349 1,778,433

3.55 1,778,433 3.55 0.0015

31.10.2015 1,313,246,504 1,898,115

3.55 1,898,115 3.55 0.0014

30.11.2015 1,285,156,230 2,005,503

3.60 2,005,503 3.60 0.0016

31.12.2015 1,032,190,296 1,770,432

3.65 1,770,432 3.65 0.0017

31.1.2016 842,024,080 1,482,804

3.65 1,482,804 3.65 0.0018

28.2.2016 936,765,958 1,224,119

3.60 1,224,119 3.60 0.0013

31.3.2016 1,001,356,541 1,571,481

3.70 1,571,481 3.70 0.0016

30.4.2016 1,175,730,723 1,577,212

3.65 1,577,212 3.65 0.0013

31.5.2016 1,159,659,476 1,781,088

3.65 1,781,088 3.65 0.0015

30.6.2016 948,370,963 1,794,626

3.65 1,794,626 3.65 0.0019

20,074,370

20,074,370

0.0186

2015

Gross/net

Month of Units in distribution

accrual circulation Gross distribution Net distribution per unit per unit

Units RM

% [1]

RM % [1]

RM

31.7.2014 1,074,851,382 1,305,026

3.08 1,305,026 3.08 0.0012

31.8.2014 1,060,740,365 1,402,087

3.20 1,402,087 3.20 0.0013

30.9.2014 1,096,848,634 1,455,374

3.24 1,455,374 3.24 0.0013

31.10.2014 1,351,124,401 1,620,665

3.26 1,620,665 3.26 0.0012

30.11.2014 1,603,015,751 2,016,311

3.30 2,016,311 3.30 0.0013

31.12.2014 1,152,498,667 2,028,637

3.30 2,028,637 3.30 0.0018

31.1.2015 845,940,181 1,657,068

3.30 1,657,068 3.30 0.0020

28.2.2015 935,898,988 1,185,213

3.30 1,185,213 3.30 0.0013

31.3.2015 1,191,683,630 1,531,669

3.30 1,531,669 3.30 0.0013

30.4.2015 1,265,476,423 1,661,325

3.45 1,661,325 3.45 0.0013

31.5.2015 1,251,733,926 2,072,080

3.50 2,072,080 3.50 0.0017

30.6.2015 1,104,367,989 1,691,574

3.50 1,691,574 3.50 0.0015

19,627,029

19,627,029

0.0172

[1] Distribution is computed based on the annual rate stated above on Unit Holders' Equity. Distribution is accrued on a daily basis and distributed on monthly basis. [2] There is no change on the Fund’s NAV before and after income distribution.

2016 2015

RM RM

NAV per unit cum distribution 0.50 0.50NAV per unit ex-distribution 0.50 0.50


(9) Units held by related parties

As at end of the financial year, the total number of units held legally by related parties are as follows:

No. of units

2016 2015 2016 2015

Unit Unit RM RM

FAME Platform Sdn. Bhd. 975,939 1,981,223 487,969 990,612

RV Capital Sdn. Bhd. 41,022 53,710 20,511 26,855

Pristine Strategy Sdn. Bhd. 8,072 7,787 4,036 3,894

Phillip Wealth Planners

Sdn. Bhd. 390,163 20,750 195,082 10,375

Phillip Research Sdn. Bhd. 177,571 725,126 88,786 362,563

Phillip Capital

Management Sdn. Bhd. 23,205,478 10,437,328 11,602,739 5,218,664

Phillip Securities Pte Ltd 1,429,431 1,378,938 714,715 689,469

PC Quote (M) Sdn. Bhd. 16,226 15,454 8,113 7,727

Phillip Futures Sdn. Bhd. 25,526,808 13,917,670 12,763,404 6,958,835

Phillip Futures Pte Ltd 28 27 14 14

Phillip Capital Holdings

Sdn. Bhd. 5,919 987,082 2,959 493,541 Directors of the Manager 3,109 3,006 1,555 1,503

Market value

The directors of the Manager are of the opinion that the transactions with the related parties have been entered into in the normal course of business and have been established on terms and conditions that are not materially different from that obtainable in transactions with unrelated parties. These dealings with the related parties have been transacted at arm's length basis.

(10) Transactions with financial institutions

Details of transactions with financial institutions are as follows:

Financial institutions RM % RM %

Affin Hwang Investment Bank 303,562,440 3.30 1,193,538,525 10.08

Berhad

CIMB Bank Berhad 641,330,449 6.96 - -

Hong Leong Investment Bank 182,474,676 1.98 - -

Berhad

KAF Investment Bank Berhad 749,669,902 8.14 1,444,012,336 12.20

Kenanga Investment Bank 850,195,340 9.23 1,326,015,825 11.20

Berhad

Kuwait Finance House (M) 180,779,026 1.96 156,697,765 1.32

Berhad

Malayan Banking Berhad 230,914,000 2.51 716,789,000 6.05

MIDF Amanah Investment 71,576,718 0.78 1,403,484,161 11.85

Berhad

Transaction value

2016 2015

Transaction value


(10) Transactions with financial institutions (cont’d.)

Financial institutions RM % RM %

Public Bank Berhad 5,885,310,383 63.91 5,123,346,910 43.27

RHB Bank Berhad 112,567,667 1.23 - -

HwangDBS Investment - - 184,092,416 1.56

Bank Berhad

Malayan Islamic Berhad - - 329,000 -

RHB Investment Bank - - 292,045,451 2.47

Berhad9,208,380,781 100.00 11,840,351,389 100.00

Transaction valueTransaction value

2016 2015

The above transactions are in respect of placement and renewal of short term deposits. Transactions in these money market instruments do not involve any commission or brokerage.

(11) Portfolio turnover ratio

Portfolio turnover ratio is the ratio of the average placements and withdrawals of deposits of the Fund during the year to the average NAV of the Fund. The portfolio turnover ratio for the current financial year is 16.65 times (2015: 20.94 times).

(12) Management expense ratio

Management expense ratio is the ratio of the total fees and recovered expenses of the Fund expressed as a percentage of the Fund's average NAV. The management expense ratio for the current financial year is 0.29% (2015: 0.28%).

(13) Segmental reporting

As all of the Fund's investments are in deposits with licensed financial institutions in Malaysia, the Fund does not report its results and investments by business or geographical segments.

(14) Financial risk management

The Fund is exposed to a variety of financial risks including market risk (which includes interest rate risk), credit risk and liquidity risk. Whilst these are the most important types of financial risks inherent in each type of financial instrument, the Manager and the Trustee would like to highlight that this list does not purport to constitute an exhaustive list of all the risks inherent in an investment in the Fund. The Fund’s overall risk management programme seeks to minimise potential adverse effects on the Fund’s financial performance. (a) Market risk

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as interest rates, foreign exchange rates and equity prices.


(14) Financial risk management (cont’d.) (a) Market risk (cont’d.)

In the current and previous financial year, the Fund is not exposed to changes in foreign exchange rates and equity prices as the Fund's investments are wholly in deposits with financial institutions in the local currency.

(i) Interest rate risk

Cash is particularly sensitive to movements in interest rates. When interest rates rise, the returns on cash will rise while the value of fixed income securities will fall and vice versa, thus affecting the NAV of the Fund. When the interest rate trend is anticipated to rise, the exposure to fixed income securities will be reduced to an acceptable level. The Fund's deposits with licensed financial institutions are usually rolled-over on a daily/monthly basis.

Interest rate risk sensitivity The increase/(decrease) in the NAV attributable to Unit Holders as at reporting date, assuming interest rate change by +/(-) 50 basic points with all other variables held constant, is +/(-) RM762,706 (2015 : RM797,256). This analysis is for illustration purpose only and is not an indication of future variances.

(b) Credit risk

Credit risk refers to the ability of an issuer or a counterparty to make timely payments of interest, principals and proceeds from realisation of investments. The following table shows the credit rating of the financial institutions which the Fund has made placements with:

As a % of As a % of

Credit rating RM deposits RM deposits

AAA 176,326,124 37% 28,392,000 5%

AA - 0% 346,685,624 63%

A - 0% 66,529,398 12%

AA2 74,102,877 16% - 0%

AA3 105,252,242 22% - 0%

A3 63,545,249 14% - 0%

Not rated 51,553,940 11% 108,675,896 20%470,780,432 100% 550,282,918 100%

2016 2015

None of the financial assets of the Fund were past due or impaired as at 30 June 2016 (2015: Nil).


(14) Financial risk management (cont’d.)

(c) Liquidity risk (cont’d.)

Liquidity risk is defined as the risk that the Fund will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash. Exposure to liquidity risk arises because of the possibility that the Fund could be required to pay its liabilities or redeem its units earlier than expected. The Fund is exposed to cash redemptions of its units on a regular basis. Units sold to Unit Holders by the Manager are redeemable at the Unit Holder’s option based on the Fund’s NAV per unit at the time of redemption calculated in accordance with the Fund’s Deed. The Manager monitors the Fund’s liquidity position on a daily basis. The Manager’s policy is to always maintain a prudent and sufficient level of liquid assets so as to meet normal operating requirements and expected redemption requests by Unit Holders. Liquid assets comprise cash, deposits with financial institutions and other instruments which are capable of being converted into cash within 7 days. Any redemption by the Unit Holders beyond expected normal level may result in early redemption of deposits placed by the Funds and could result in loss of interest accrued. As at the current and previous financial year, all the financial liabilities of the Fund are due on demand or within one year from the reporting date.

(15) Fair value of financial instruments

The Fund’s financial assets and financial liabilities are measured on an ongoing basis at either fair value or at amortised cost based on their respective classification. The significant accounting policies in Note 2.4 describe how the classes of financial instruments are measured, and how income and expenses, including fair value gains and losses, are recognized. The following table analyses the financial assets and liabilities of the Fund in the statement of financial position as at the reporting date by the class of financial instrument to which they are assigned, and therefore by the measurement basis:

Financial

Loans and liabilities at

receivables amortised cost Total

RM RM RM

Assets


institutions 470,780,432 - 470,780,432

Interest receivable 5,604,682 - 5,604,682

Cash at bank 35,382 - 35,382 Total financial assets 476,420,496 - 476,420,496

Liabilities

Amount due to Manager - 330,423 330,423

Amount due to Trustee - 27,653 27,653

Distributions payable - 1,794,626 1,794,626

Other payables - 19,999 19,999 Total financial liabilities - 2,172,701 2,172,701

2016


(15) Fair value of financial instruments (cont’d.)

Financial

Loans and liabilities at

receivables amortised cost Total

RM RM RM

Assets


institutions 550,282,918 - 550,282,918

Interest receivable 3,807,729 - 3,807,729

Cash at bank 102,963 - 102,963

Total financial assets 554,193,610 - 554,193,610

Liabilities

Amount due to Manager - 205,738 205,738

Amount due to Trustee - 45,974 45,974

Distribution payable - 1,691,574 1,691,574

Other payables - 66,329 66,329

Total financial liabilities - 2,009,615 2,009,615

2015

The financial instruments of the Fund are not carried at fair value but their carrying amounts are reasonable approximations of fair values due to their short term maturity.

(16) Capital management

The capital of the Fund can vary depending on the demand for redemptions and subscriptions to the Fund. The Fund’s objectives for managing capital are: (a) To invest in investments meeting the description, risk exposure and expected

return indicated in its prospectus;

(b) To achieve consistent returns while safeguarding capital by using various investment strategies;

(c) To maintain sufficient liquidity to meet the expenses of the Fund, and to meet

redemption requests as they arise; and

(d) To maintain sufficient fund size to make the operation of the Fund cost-efficient.

No changes were made to the capital management objectives, policies or processes during the current and previous financial year.


10. FUND PERFORMANCE For the year ended 30 June 2016

2016 2015 2014

Net Asset Value (RM) 474,225,119 552,183,995 561,264,923

Units in Circulation (units) 948,370,963 1,104,367,989 1,122,529,847

Net Asset Value per unit (RM) 0.5000 0.5000 0.5000

Ex-Distribution (RM) 0.5000 0.5000 0.5000

Selling Price (RM) 0.5000 0.5000 0.5000

Buying Price (RM) 0.5000 0.5000 0.5000

Highest Selling Price (RM) 0.5000 0.5000 0.5000

Lowest Selling Price (RM) 0.5000 0.5000 0.5000

Highest Buying Price (RM) 0.5000 0.5000 0.5000

Lowest Buying Price (RM) 0.5000 0.5000 0.5000

Ex-Distribution (RM) 0.5000 0.5000 0.5000

Total Return

- capital growth - - -

- income distribution (RM) 20,074,370 19,627,029 13,764,000

Gross Distribution

Interim Distribution

- 31 July 3.50% 3.08% 3.03%

- 31 August 3.50% 3.20% 3.03%

- 30 September 3.55% 3.24% 3.03%

- 31 October 3.55% 3.26% 3.03%

- 30 November 3.60% 3.30% 3.03%

- 31 December 3.65% 3.30% 3.03%

- 31 January 3.65% 3.30% 3.03%

- 28 February 3.60% 3.30% 3.03%

- 31 March 3.70% 3.30% 3.03%

- 30 April 3.65% 3.45% 3.03%

- 31 May 3.65% 3.50% 3.03%

Final Distribution

- 30 June 3.65% 3.50% 3.03%

Net Distribution

Interim Distribution

- 31 July 3.50% 3.08% 3.03%

- 31 August 3.50% 3.20% 3.03%

- 30 September 3.55% 3.24% 3.03%

- 31 October 3.55% 3.26% 3.03%

- 30 November 3.60% 3.30% 3.03%

- 31 December 3.65% 3.30% 3.03%

- 31 January 3.65% 3.30% 3.03%

- 28 February 3.60% 3.30% 3.03%

- 31 March 3.70% 3.30% 3.03%

- 30 April 3.65% 3.45% 3.03%


2016 2015 2014

- 31 May 3.65% 3.50% 3.03%

Final Distribution

- 30 June 3.65% 3.50% 3.03%

Portfolio Composition

- Unquoted Fixed Income Securities

- - -

- Other Liquid Assets 100% 100% 100%

Management Expense Ratio 0.29% 0.28% 0.24%

Portfolio Turnover 16.65 times 20.94 times 16.44 times

Official Launching Date 18.06.03 18.06.03 18.06.03

AVERAGE TOTAL RETURNS (in %) Average Total Return is based on NAV to NAV with distribution reinvested. Below are annualised average total returns of the Funds as at 30 June 16 for 1 year, 3 year, 5 year and since inception.

1 Year (30/06/15-30/06/16)

3 Year (30/06/13-30/06/16)

5 Year (30/06/11-30/06/16)

Since Inception (18/06/03-30/06/16)

3.60 3.32 3.18 2.80


Basis of calculation for Annualised Average Total Return Annualised Average Total Return = Total Return for the period / Number of period

ANNUAL TOTAL RETURNS (in %) Annual Total Return is based on NAV to NAV with distribution reinvested. Below are Annual Total Return of the Funds for each of the financial year since inception.

18/06/03-30/06/04 (since inception)

30/06/04-30/06/05

30/06/05-30/06/06

30/06/06-30/06/07

30/06/07-30/06/08

30/06/08-30/06/09

30/06/09-30/06/10

2.50% 2.50% 2.69% 3.07% 2.96% 2.43% 1.83%

30/06/10-30/06/11

30/06/11-30/06/12

30/06/12-30/06/13

30/06/13-30/06/14

30/06/14-30/06/15

30/06/15-30/06/16

2.52% 2.95% 3.03% 3.03% 3.31% 3.60%


Basis of calculation for Annual Total Return Annual Total Return = NAVt – NAVt-1 + Dividend x 100 --------------------------------------------- NAVt-1

Past performance is not necessarily indicative of future performance. Unit prices and investment returns may go down, as well as up.


11. CORPORATE INFORMATION

THE MANAGER Phillip Mutual Berhad (570409-K) Registered Office No 3-1 Jalan Indrahana 2, Off Jalan Kuchai Lama, 58200 Kuala Lumpur. Tel : 603-7983 0354/0948/6128 Fax : 603-7981 9912 Business Office B-2-7 Block B Level 2 Unit 7 Megan Avenue II, 12 Jalan Yap Kwan Seng, 50450 Kuala Lumpur. Tel : 603-2783 0300 Fax : 603-2166 6417 THE TRUSTEE CIMB Commerce Trustee Berhad (313031-A) Registered Office 5

th Floor, Bangunan CIMB, Jalan Semantan, Damansara Heights, 50490 Kuala Lumpur.

Tel: 603-2084 8888 Fax: 603-2093 9688 Website: http://www.cimb.com Business Office Level 7, Wisma Amanah Raya, Jalan Semantan, Damansara Heights, 50490 Kuala Lumpur. Tel: 603-2084 8888 Fax: 603-2095 5473 Trustee’s Delegate CIMB Group Nominee’s (Tempatan) Sdn Bhd (274740-T) Registered Office 5

th Floor, Bangunan CIMB, Jalan Semantan, Damansara Heights, 50490 Kuala Lumpur.

Tel: 603-2084 8888 Fax: 603-2093 9688 Website: http://www.cimb.com Business Office Level 7, Wisma Amanah Raya, Jalan Semantan, Damansara Heights, 50490 Kuala Lumpur. Tel: 603-2084 8888 Fax: 603-2084 3720 Board of Directors Prof. Tan Sri Dato' (Dr) Ir. Jamilus Bin Md Hussin Datuk Ir. Hamzah bin Hasan Datin Hajjah Nona Binti Salleh Mr. Andy Lim Say Kiat En. Mohd Fadzli Bin Mohd Anas Mr. Lim Wen Sheong Mr. Lee Chay Khiong (Alternate Director to Mr. Lim Wen Sheong) Investment Committee Prof. Tan Sri Dato' (Dr) Ir. Jamilus Bin Md Hussin Datuk Ir. Hamzah bin Hasan En. Mohd Fadzli Bin Mohd Anas Mr. Lim Wen Sheong

http://www.cimb.com/

http://www.cimb.com/


Investment Advisor Phillip Capital Management (Singapore) Ltd (199905233W) Investment Manager Phillip Capital Management Sdn Bhd (333567-D) COMPANY SECRETARY Mr. Tan Boon Seng (MAICSA 0749659) Compac Sdn Bhd, No 3-1, Jalan Indrahana 2, Off Jalan Kuchai Lama, 58200 Kuala Lumpur. Tel: 603-7983 0354/0277/0948/6128 Fax: 603-7981 9912 Email: [email protected] AUDITORS Ernst & Young (0039) Level 23A Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur. Tel: 603-7495 8000 Fax: 603-2095 5332 Website: http://www.ey.com TAX ADVISER Ernst & Young Tax Consultants Sdn Bhd (179793-K) Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur. Tel: 603-7495 8000 Fax: 603-2095 5332 Solicitors Chor Pee Anwarul & Company Banker Malayan Banking Berhad (3813-K)

http://www.ey.com/

audited annual report - eunittrust.com.my · 2017. 9. 25. · audited annual report for the...

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