rhb goldenlife funds interim report 2019

RHB GOLDENLIFE FUNDS

INTERIM REPORT 2019

For the financial period ended 31 August 2019

1

GENERAL INFORMATION ABOUT THE FUND

Sub-Fund Name, Category and Type

Sub-Fund Name - RHB GoldenLife Today (“GL Today”)

Period of Trust - Subject to occurrence of any events as stated under

Clause 11.37 of the Securities Commission

Malaysia’s Guidelines on Unit Trust Funds,

however, upon maturity of RHB GoldenLife 2010*,

RHB GoldenLife 2020 and RHB GoldenLife 2030,

these Funds will be merged into GL Today Sub-Fund Category - Bond

Sub-Fund Type - Income

Sub-Fund Name - RHB GoldenLife 2020 (“GL 2020”)

Tenure / Maturity Date 15 years 8 days / The date on which the GL 2020

will automatically terminate and merge into GL

Today on 29.02.2020 Sub-Fund Category - Balanced

Sub-Fund Type - Capital growth and income

Sub-Fund Name - RHB GoldenLife 2030 (“GL 2030”)

Tenure / Maturity Date 25 years 7 days / The date on which the GL 2030

will automatically terminate and merge into GL

Today on 28.02.2030 Sub-Fund Category - Equity

Sub-Fund Type - Capital growth

Note: * RHB GoldenLife 2010 matured on 28 February 2010. It was automatically

terminated and merged into RHB GoldenLife Today on 28 February 2010.

2

Investment Objective, Policy and Strategy

Objective of the Funds

RHB GoldenLife Today

To provide retired investors or investors who are retiring in the very near future a

steady income stream in planning for their financial needs upon retirement.

RHB GoldenLife 2020

To provide investors planning to retire in the year 2020, a wealth accumulation

vehicle for meeting their financial needs upon retirement.

RHB GoldenLife 2030

To provide investors planning to retire in the year 2030, a wealth accumulation

vehicle for meeting their financial needs upon retirement.

Strategy


The GL Today will place more emphasis on fixed income securities in Malaysia

in view that it is a conservative fund.

RHB GoldenLife 2020

The GL 2020 will invest in equities and fixed income securities in Malaysia and in

accordance with an asset allocation that will become increasingly conservative as

the year 2020 approaches.

RHB GoldenLife 2030

The GL 2030 will invest in equities and fixed income securities in Malaysia and in

accordance with an asset allocation that will become increasingly conservative as

the year 2030 approaches.

3

Performance Benchmark


Weighted average of FTSE Bursa Malaysia Kuala Lumpur Composite Index

(“FBM KLCI”) (10%) and Maybank’s 12-Months Fixed Deposit Rate (90%).

RHB GoldenLife 2020

Weighted average of FBM KLCI (55%) and Maybank’s 12-Months Fixed Deposit

Rate (45%).

RHB GoldenLife 2030

Weighted average of FBM KLCI (85%) and Maybank’s 12-Months Fixed Deposit

Rate (15%).

Permitted Investments

The Funds may invest in securities of companies listed on Bursa Malaysia;

unlisted securities including securities not listed or quoted on a stock exchange but

have been approved by the relevant regulatory authority for such listing or

quotation and are offered directly to the Funds by the issuer; financial derivatives;

collective investment schemes; structured products and warrants that carry the

right in respect of a security traded in or under the rules of an eligible market;

securities listed on foreign stock exchange, subject to the approval of the relevant

authorities; Malaysian Government Securities, Treasury Bills, Bank Negara

Malaysia Certificates and Government Investment Certificate; Malaysian currency

balance in hand, Malaysian currency deposits with commercial bank, finance

companies, merchant banks, Bank Islam Malaysia Berhad including Negotiable

Certificate of Deposits; Bankers’ Acceptance and placements of money at call

with discount houses; Cagamas bonds, unlisted loan stocks and corporate bonds

and private debt securities; and any other investments permitted by the Securities

Commission Malaysia from time to time.

Distribution Policy


Income, if any, will be distributed during the financial year.

RHB GoldenLife 2020 and RHB GoldenLife 2030

Subject to the availability of income at the end of the financial year.

4

MANAGER’S REPORT

MARKET REVIEW

Equity

Equity markets end the month of March 2019 on a strong note. Global equity

markets edged up 1.0% in March 2019 (year to date (“YTD”): 11.6%). The

turnaround since the sharp correction in December 2018 has largely been driven

by the capitulation of central banks, led by the United States (“US”) Federal

Reserve (“Fed”), as they fretted over weak global growth. US rose 1.7%, while

Europe (0.2%), Japan (-0.3%) and Australia (-0.1%) all stayed flat. Meanwhile,

Brent Crude (3.6%) continued on its uptrend on the back of supply cuts by The

Organization of the Petroleum Exporting Countries (“OPEC”). Asia ex-Japan was

up 1.6% in March 2019 (YTD: 11.2%) primarily driven by China (2.4%) and India

(9.1%). ASEAN (-0.7%) underperformed, dragged down by Malaysia (-3.6%) and

Thailand (-2.2%). Index heavyweight banks (-6.2%) lagged in Malaysia on

concerns over a potential windfall tax, while an inconclusive election followed by

a weak earnings season in Thailand dampened market sentiment.

The Kuala Lumpur Composite Index (“KLCI”) fell 3.8% month on month

(“MoM”) (or 64 points) and 2.8% in first quarter of year 2019 to close at 1,643

points at the end of March 2019. We believe the decline in the market was driven

by concerns over potential earnings risks for banks due to a possible Overnight

Policy Rate (“OPR”) rate cut and corporate earnings due to slower global growth

prospects. This has resulted in net foreign outflow doubling from RM0.8billion

(“bn”) in February 2019 to RM1.6bn in March 2019. In March 2019, KLCI

underperformed the The Financial Times Stock Exchange (“FTSE”) Bursa Emas

or the broader market, and small-cap sector. Instead, FTSE Bursa Malaysia

(“FBM”) Small Cap index was up by 1.32% MoM.

FBMKLCI was the worst performing market among MIST (Malaysia, Indonesia,

Singapore and Thailand) with a loss of 3.8%, underperforming its peers that

registered -0.9% to +0.4% MoM returns in March 2019. Materials (led by Press

Metal) outperformed on potential slowdown in aluminium supply growth. Telcos

(led by Telekom) outperformed, on potential asset sale to unlock value. Industrials

(led by IJM) outperformed on potential East Coast Rail Link revival.

Underperformers were consumer discretionary (led by Genting Group), financials,

and utilities.

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5

On domestic economy, February 2019 Consumer Price Index (“CPI”) declined

0.4% year on year (“YoY”) while up 0.2% MoM. The rise in pump prices

contributed the bulk of the rise in sequential inflation while other components

remained benign. Malaysia Nikkei Purchasing Managers’ Index (“PMI”)

deteriorated to 47.6 points in February 2019 vs. 47.9 points in January 2019. As

widely expected, Bank Negara Malaysia’s (“BNM”) Monetary Policy Committee

(“MPC”) maintained the OPR at 3.25% for the seventh consecutive meeting. The

decision was well anticipated by us and all analysts surveyed by Bloomberg.

Global markets climbed in April 2019, with the Morgan Stanley Capital

International (“MSCI”) World rising 3.2% for the month and extending YTD

returns to 15.2%. A sharp bounce in the Deutscher Aktienindex (“DAX”) (+7.1%)

alongside yet another strong US performance saw the MSCI Developed Market

gain 3.4%, well ahead of the 2.0% advance registered in Emerging Market. Prior

flexibility of central banks yielded signs of growth stabilization/recovery. Global

equity investor sentiment remained upbeat, signaling an embracing of risk, with

the futures market anticipating a benign policy outlook. Asia ex-Japan added 1.8%

in April 2019, taking YTD returns to 13.3%. China (2.2% in April 2019, 20.3%

YTD) extended its rally, almost completely recuperating its year 2018 losses,

backed by the bottoming out of activity in response to prior policy easing. ASEAN

(2.1%) outperformance was driven by Singapore (6.0%), while political

uncertainty gripped Indonesia (0.6%) and Thailand (1.4%) as they await election

results. The upswing in Singapore was underpinned by a rally in banking stocks,

partly due to the first quarter of year 2019 earnings beat by DBS.

The KLCI was flat in April 2019, with KLCI underperforming Asia Pacific Ex

Japan by almost 2.0%. Foreign investors net sold RM1.5bn, adding to fourth

month of year 2019 net sell of RM2.9bn. 10Y Malaysian Government Securities

(“MGS”) rose 2 basis points (“bps”) MoM to 3.79%, while Malaysia Ringgit

(“MYR”) depreciated 1.3% MoM on fears of likely Malaysia debt exclusion from

FTSE Russell World Global Bond Index. Industrials outperformed on revival of

the downsized East Coast Rail Line (“ECRL”) and Bandar Malaysia project;

followed by consumer discretionary (Genting Bhd-led), and healthcare (Glove

Manufacturers-led). Telecommunications underperformed (mainly Telekom-led),

followed by Financials (mainly Public Bank-led). The surge in Brent Crude on

supply concerns intensified following the US decision to end waivers on Iranian

oil imports. Brent Crude climbed 9.0% intra-month, before softening 2.4% due to

rising US stockpiles, to end the month 6.4% higher.

Again, as announcement on ECRL and Bandar Malaysia stimulated the good

sentiment on industrial or construction stocks which in turn provided the FBM

Small Cap index with a high return of 7.16% MoM.

6

March 2019 CPI rose 0.2% YoY and MoM, likely driven by higher energy-related

costs, in particular transport prices which were up 2.6% MoM. Market expects

headline CPI to turn up in the coming months, particularly if crude oil prices

continue to trend higher. Nonetheless, headline inflation will likely remain

historically low, averaging 0.9% YoY in year 2019. February 2019 trade slows,

with bulk of the slowdown owed to weak non-electronics exports. Malaysia Nikkei

PMI deteriorated to a three month low of 47.2 in March 2019. March 2019 vehicle

sales grew 9.6% YoY, 37% quarter on quarter (“QoQ”) to 54,776 units. This

brings third month of year 2019 vehicle sales to 143,064 units, +5.9% YoY.

World equity markets tumbled in the month of May 2019, down 6.2% due to re-

escalation of US-China trade war tension. The consequent rise in near-term

uncertainty caused the US yield curve (10-year minus 3-month) to invert again

within the space of two months, leading the futures market to anticipate two rate

cuts by year end. The risk-off sentiment caused Emerging Markets declined by

7.5% in May 2019 to underperform Developed Markets (-6.1% in May 2019).

Among the developed markets, US declined 6.5%, Europe -6.3%, and Japan -

4.0%.

Similarly, Asia ex-Japan suffered from the global sell down (-8.9% in May 2019).

China (-13.5% in May 2019) suffered from the cessation of trade talks with the

US, as the imposition of additional tariffs and the ban of select tech firms

threatened to derail the nascent growth recovery. Korea (-9.3%) and Taiwan (-

7.8%) were collateral damages given the high weightage of the tech sector in their

benchmark indices as well as their high sensitivity to global trade. India (+0.1% in

May 2018) ended flat after recovering intra-month losses, led by financials

following the victory of the ruling Bharatiya Janata Party (“BJP”) in the general

elections, ensuring policy continuity. ASEAN equity markets fare relatively better

(-4.8% in May 2019), was dragged down by Singapore (-10.4%).

FBM KLCI went against the odds with a 0.5% monthly gain. This is mainly

underpinned by the solid gains in the telecommunication sector. The news of the

proposed mega merger between Axiata and DiGi has significantly re-rated both

heavyweights by 18% and 8%, respectively, in May 2019. Maxis also gained 3.4%

due to the positive sentiment for the telecommunication sector. Meanwhile, the

positive performance of blue chips such as Tenaga also helped to support the

KLCI index during May 2019.

Risk off mode prevail and profit taking started to kick in on the FBM Small cap

index, the index washed out all the gain in April 2019 and was down by 7.89%

month on month in May 2019.

7

Global equity markets made a strong comeback advancing 6.4% during the month

of June 2019 and extending YTD returns to 14.9%. United States Dollar (“USD”)

weakened as market participants price in three rate cuts by the Fed in 2019,

starting in July 2019. A basket of emerging market (“EM”) currencies gained 2.0%

against the USD in June 2019, with the Pakistan Rupee being the only EM

currency to depreciate (-7.5%). Asia ex-Japan equities inched up 6.1% in June

2019 (YTD: 9.4%) driven by strong recovery in China (7.3% in June 2019). Tele

conversation between President Xi and President Trump raised expectations of a

phasedown in the US-China trade tensions, coupled with some consumption

stimulus. Korea (8.5%) and Taiwan (4.2%) partially recuperated their losses from

the prior month, with the former being driven by the strong gains in the tech

hardware sector (13.6%). ASEAN registered positive return of 6.8% was driven by

Singapore (10.3%) and Thailand (9.6%). Singapore reflected firmer banking stock

prices while foreign equity inflows propelled Thailand on the back of receding

political noise.

The KLCI rose 1.3% MoM (or 21.4 points (“pts”)) but fell 1.1% in first half of

year 2019 to close at 1,672 pts at the end of June 2019. The market rebound was

driven by optimism over potential rate cuts in the US and easing US-China trade

tensions. In June 2019, KLCI underperformed the FTSE Bursa Emas or the

broader market, and small-cap sector. It also underperformed the MSCI Asia

Pacific ex-Japan Index (“MXASJ”).

FBM Small cap index increased by 3.58% with improved market sentiment.

On the economic front, Malaysia registered a 3.1% YoY increase in approved

investments in first quarter of year 2019 on the back of robust manufacturing

sector, in which 54.4% of RM53.9bn were foreign investments. Malaysia Nikkei

PMI fell to 48.8 in May 2019 versus the seven-month high of 49.4 in Apr 2019.

There were slew of corporate news in the month of June 2019. Gamuda has

received takeover offers from the government for all of its highway concessions

for RM2.36bn which the market believe is a fair price. Meanwhile, Malaysian

Aviation Commission (“MAVCOM”) has released its Second Consultation Paper,

proposing a weighted average cost of capital (“WACC”) of 10.88% while

Malaysia Airports Holdings Berhad (“MAHB”) is seeking 12.7%. Aabar

Investments has ceased to a substantial shareholder of RHB Bank after disposing

around 231 million shares to institutional investors. The Domestic Trade and

Consumer Affairs Minister has intervened to prevent a 40%-50% hike in cement

price hike, citing cement is a controlled item.

8

Global equity markets stayed flat in July 2019, up marginally by 0.2%. Asia ex-

Japan slid 2.2% in July 2019, dragging YTD returns to 7.0%. Growth headwinds

continue to persist in China (-0.9%), prompting calls for a lot more robust

domestic monetary reflation than the modest improvement seen in second quarter

of year 2019. India was one of the worst performing market (-5.5%) wiped out

bulk of its YTD gains as foreign investors sold following a disappointing budget

that was devoid of any meaningful stimulus to address slackening growth, but

instead spelled out higher taxes. Korea (-6.2%) suffered from the deepening rift

with Japan over the issue of forced wartime labour compensations that has hence

grown into a trade conflict with the implementation of export restrictions of key

products by Japan. The Bank of Korea cut rates by 25bps to cushion the adverse

impacts on the export-oriented economy. Taiwan was up 1.6% reflected the rise in

foundries, while Indonesia (1.3%) helped ASEAN (-1.2%) to relatively outperform

the region on the back of a 25 bps rate cut by Bank Indonesia.

KLCI retracted -2.23% in July 19 to 1,635 points. Petronas names Petronas

Chemical (-10.8%), Petronas Dagangan (-7.5%) and Petronas Gas (-7.4%) led the

decline, while Genting Malaysia (+19.4%) and Dialog (+5.8%) were the top

performers on positive newsflow and oil prices. On a YTD basis, KLCI declined -

3.30%, led by Hartalega, Petronas Chemical, Top Glove (macro/industry issues)

while top gainers were Genting Malaysia, Axiata, Genting Berhad, Digi

(newsflow-driven).

BNM has maintained the OPR rate at 3% following the MPC meeting and said that

the monetary policy remains accommodative. In fifth month of year 2019, the

government has reduced its fiscal deficit by 39% YoY to RM21.4bn, on track to

achieve fiscal deficit target of 3.4% of gross domestic products (“GDP”) in year

2019. Malaysia Nikkei PMI fell to 47.8 in June 2019 versus 48.8 in May 2019.

Meanwhile, the Industrial Production Index (“IPI”) increased 4% YoY in May

2019, above consensus' expectation of 3.5%. June 2019 CPI rose to a 13-month

high of 1.5% YoY (versus May 2019’s 0.2%) on the back of a low base effect due

to the removal of Goods and Services Tax (“GST”) in June last year.

On the corporate front, Genting Malaysia Berhad (“GENM”)’s outdoor theme park

is back on track after GENM entered into a settlement agreement with Disney and

Fox. RHB has received approval from BNM to commence negotiations for the

disposal of its 94.7% stake in RHB Insurance to Tokio Marine. Tenaga announced

that it is undergoing internal restructuring and plans to place its domestic power

generation and electricity retail businesses into two new wholly owned

subsidiaries ahead of the electricity reforms.

9

Global equities receded 2.6% in August 2019 but YTD returns is still

commendable, up 12.1%. The inversion of the 2year-10year US Treasury (“UST”)

yield curve and another round of escalation in the US-China trade war caused

panic selling among investors. Investors were worried over coming recession and

start to take refuge in safe havens, sending precious metals higher (Gold: 7.5%,

Silver: 13.0%, Platinum: 8.0%). Asia Ex-Japan slid 4.6% in August 2019,

curtailing YTD returns to 2.1% only. China (-4.3%) was dragged down by the

worst monthly depreciation of the Yuan (-3.8%) since January 1994, that led the

US to label the former a "currency manipulator". Hong Kong (-8.6%) was roiled

by the ongoing protests, evoking concerns of a recession and prolong economic

slowdown. Dwindling exports, worsening relations with Japan, and a weak second

quarter of year 2019 earnings season spelled further downside for Korean equities

(-5.0%). ASEAN fell 4.5% in August 2019, despite 25bps rate cuts in Thailand (-

3.0%) while Indonesia (-3.7%) and the Philippines were down 3.7% and 3.5%

respectively.

The KLCI declined 1.4% MoM to end at 1,612 points in August 2019. August

2019 recorded the highest net equity outflow of RM2.6bn for the year, bringing

eighth month of year 2019 net outflows to RM7.3bn. Exporters like rubber gloves

(Top Glove and Hartalega) and Plantations (Sime Darby Plantations)

outperformed on the back of the weaker MYR, which led to outperformance of the

Healthcare/Consumer Staples sector. Meanwhile, the Genting group of companies

underperformed due to the acquisition of cash-strapped US casino operator Empire

Resorts.

Malaysia’s GDP growth expanded 4.9% YoY in second quarter of year 2019,

marginally above market expectations of 4.7% YoY. The strong pick-up in the

economy is generally driven by continuous strong private consumption and

recovery in commodity-based sectors. From expenditure side, private consumption

and net exports contributed by 4.4% and 1.4% respectively. Meanwhile, July

2019’s vehicle sales fell 26% YoY to 50,853 units due to absence of a three-month

tax holiday period. However, overall sales of new vehicles rose 20% MoM to

8,327 in July 2019 due to longer working month.

On the corporate front, Gamuda and Ministry of Finance have extended the

conclusion date for negotiations for toll concessions sale from 30 August 2019 to

31 October 2019. Several proposals on proposed toll concessions acquisition have

been submitted to the government, which include Khazanah’s proposed takeover

of PLUS Expressways.

10

Bond

During the period under review, March 2019 witnessed a quarter-end buying

benefited local bond market. The yields remained supported until the first quarter

of the year 2019 where 10-year MGS seen navigated down further and close the

quarter below 3.80%. However, in April 2019, a knee-jerk sell-off triggered by

news of FTSE Russell putting Malaysia on its watch list for a potential

disqualification from its flagship World Government Bond Index. Local bond

market turned cautious and yields spiked higher by 15bps to 20bps across the 5-

year to 15-year tenors. Notwithstanding that, yields once again being supported

after BNM delivered a widely anticipated 25bps cut in OPR from 3.25% to 3% on

7 May 2019, the initial price actions saw yields fell 5bps-10bps lower and steeper,

but profit takers emerged to realise gains, yields subsequently retraced to end

unchanged in the belly and longer and more than 10bps lower in the very short

end. Post the initial knee jerk reaction, yields have largely been confined in a range

as the market had fully priced in the rate cut since last month, with the benchmark

10y MGS yield trading in the 3.80%-3.85% range throughout the month despite

the rally in developed bond markets.

For the period of June 2019 until August 2019, local bond yields have seen a one

way direction to the bottom. With uncertainty of trade war progress being played

out, lower and dovish policy rates by central banks globally has resulted in 10-year

UST rallied by more than 60 bps during the period. With lower rates globally, we

have seen foreign inflows into local bond market adding stocks and push the

sovereign rates even lower at the back of favourable local supply and dynamic

profile and higher market liquidity. Local bond market saw ultra-long end MGS

and Government Investment Issue (“GII”) yields down sharply by as much as 38

bps in the 30-year tenor as the 10-year benchmark MGS tested new low of below

3.20% during the month. Towards the final week of the month, both MGS and GII

were sold off slightly on the back of profit taking interests with yields rose back up

to 20 bps and the 10-year MGS yield went higher to 3.35%. However, still was a

good rally on a monthly basis for the local government bonds in August 2019. We

think that this strong momentum of rally was triggered by conducive global rates

environment and aided by positive domestic bond supply profile.

Overall, the curve has bull-flattened during the period with longer-tenor of MGS

rallying more across the tenor. All in all, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year

MGS were traded at 3.15% (March 2019: 3.38%), 3.23% (3.53%), 3.28% (3.72%),

3.32% (3.77%), 3.48% (4.09%), 3.56% (4.29%) and 3.78% (4.58%) respectively.

11

Economic

On the local economic front, CPI rose 1.4% in July 2019 to 121.5 as against 119.8

in the same month of preceding year. The increase in the overall index was driven

by the index of Furnishings, Household Equipment & Routine Household

Maintenance (3.3%), Food & Non-Alcoholic Beverages (2.4%), Recreation,

Services & Culture (2.4%), Alcoholic Beverages & Tobacco

(2.3%) and Communication (2.1%). The abolishment of GST to zero-rated on 1

June 2018 led to the increase in some of the index of the main groups. Meanwhile,

the CPI for the period of January 2019 to July 2019 increased 0.3% compared with

the same period last year. Accordingly, economists expect inflation to inch up

gradually towards year-end as the favourable low base effects should fully fade by

September 2019. Forecasted year 2019 inflation to be around 1.0% to 1.4% is in

line with BNM projection of 0.7% to 1.7%. The downside risk to the forecasted

inflation number is if the targeted fuel subsidy (with price caps on RON95 lifted

concurrently) could be delayed. In the scenario where the RON95 prices remain to

be capped at RM2.08/liter through year 2019, full year inflation could instead

come in closer to 0.8% to 1.0% accordingly.

On the other economic data, latest Price Producer Index (“PPI”) for local

production in July 2019 decreased 2.2% after 1.8% contraction in June 2019.

Mining index showed the highest decline at 9.9% followed by agriculture, forestry

and fishing (-6.5%), water supply (-2.8%) and manufacturing (-0.9%). This latest

PPI number suggested that Malaysia’s headline inflation would stay low for the

second half of year 2019. Recently published trade numbers has also shown some

weakness as trade surplus widens while imports fell more sharply than exports. In

MYR term, June 2019 exports surprisingly fell by -3.1% while imports fell more

than -9.2%. Consequently, trade surplus widened to MYR10.2bn. Electrical &

Electronic (“E&E) products fell sequentially for the second straight month and

going forward, the fluidity of supply chain-related developments could be a source

of volatility in the exports’ numbers. With the re-escalation of the trade war

expected to be renewed, the risk for monetary easing has seen to increase guided

by BNM estimate that further tariff on remaining US-China trade could shave off

another 40 bps off projected growth.

12

MARKET OUTLOOK AND STRATEGY

Equity

Macro headwinds particularly US-China trade tensions and slower global

economic growth remain the key dampener for the Malaysian market. Although

Malaysia chalked better than expected second quarter of year 2019 GDP growth,

corporate earnings still disappoint as can be seen from the recent second quarter of

year 2019 results season. More companies ended up missing earnings expectations

and with slower PMI numbers, we believe that market performance will be cap by

weak earnings number going forward. Our strategy is to accumulate on

weaknesses as the market still lack of catalysts.

Bond

In the local fixed income market, while local supply and demand dynamic profile

has so far played a part this year, the relentless rally in the global bond market

where negative-yielding debts has increased (closed to USD17 trillion), further

adding attractiveness in carry-trade theme in the local bond market. Inflows have

accelerated for the past couple of months and drove the local bond yields at near

historical low. Although foreign positioning at this juncture still considered low

(below 40% of outstanding MGS) and the outlook is still towards easing bias and

low policy rates globally, the swift compression in yields locally have somehow

increase the cautiousness of domestic investors. We foresee more issuers are

attracted to issue bonds to lock in medium to longer term funding as the rates

becoming more attractive and this may gradually turning more balanced to the

domestic supply and demand dynamic. Therefore, we remain positioned to capture

any opportunities as volatility is expected to surface due to the uncertainty at the

time where tightening pricing could turn less favourable in term of risk-reward

perspective. Consequently, in a low rates environment where there is always

component of reinvestment risk attached to it, we advocate an active management

strategy where we will be deploying cash into undervalued government bonds and

selective credits where we are comfortable at with higher secondary trading and

liquidity potential for the flexibility of the portfolios.

13

PERFORMANCE REVIEW


For the period under review, the RHB Goldenlife Today Fund registered a return

of 0.67%* against its benchmark return of 0.76%*.

The underperformance of the Fund was due to performance of a particular bond

which was being downgraded in the month June 2019.

The investment strategy and policy employed during the period under review were

in line with the investment strategy and policy as stated in the prospectus.

The Fund is able to provide growth during the period under review.

RHB GoldenLife 2020

For the period under review, the RHB Goldenlife 2020 Fund registered a negative

return of 0.12%* against its benchmark return of negative -2.68%*.

The outperformance was due to stock and sector selection. The Fund exposed to

the securities which benefited from easing monetary policy and reduced exposure

on cyclical as economy is weakening.



The Fund is not able to provide growth despite outperformed the benchmark as

overall benchmark return is negative.

RHB GoldenLife 2030

For the period under review, the RHB Goldenlife 2030 Fund registered a negative

return of 3.22%* against its benchmark return of -4.67%*.

The outperformance was due to stock and sector selection. The Fund exposed to

the securities which benefited from easing monetary policy and reduced exposure

on cyclical as economy is weakening.



The Fund is not able to provide growth despite outperformed the benchmark as

overall benchmark return is negative.

* Source: Lipper Investment Management (“Lipper IM”), 5 September 2019

14

PERFORMANCE DATA


Annual Total Returns

28.02.2019- Financial Year Ended 28/29 February

31.08.2019

%

2019

%

2018

%

2017

%

2016

%

2015

%


- Capital Return 0.67 (0.18) (1.09) 0.45 (5.01) 5.75

- Income Return - - 4.18 3.64 10.84 -

- Total Return 0.67 (0.18) 3.04 4.11 5.29 5.75

10% FBM KLCI + 90%

Maybank’s 12-Month

Fixed Deposit Rate 0.76 1.91 3.96 3.11 1.60 2.65

Average Annual Returns

1 Year

31.08.2018-

31.08.2019

%

3 Years

31.08.2016-

31.08.2019

%

5 Years

31.08.2014-

31.08.2019

%

10 Years

31.08.2009-

31.08.2019

%

RHB GoldenLife Today (0.17) 2.19 2.97 4.46

10% FBM KLCI + 90%


Fixed Deposit Rate 1.42 2.66 2.44 3.13

15

Performance of RHB GoldenLife Today

for the period from 31 August 2009 to 31 August 2019

Cumulative Return over the period (%)

Source: Lipper IM, 5 September 2019

The abovementioned performance figures are indicative returns based on daily Net

Asset Value of a unit (as per Lipper Database) since inception.

The calculation of the above returns is based on computation methods of Lipper.

Note : Past performance is not necessarily indicative of future performance

and unit prices and investment returns may go down, as well as up.

The abovementioned performance computations have been adjusted to

reflect distribution payments and unit splits wherever applicable.

16

As At As At

31 August 28 February

Fund Size 2019 2019 2018 2017

Net Asset Value (RM million) 11.61 11.95 13.25* 32.41*

Units In Circulation (million) 19.28 19.97 22.11 53.51

Net Asset Value Per Unit (RM) 0.6021 0.5981 0.5992* 0.6058*

Historical Data

Financial Year Ended

01.03.2019- 28 February

31.08.2019 2019 2018 2017

Unit Prices

NAV - Highest (RM) 0.6095 0.6042 0.6256* 0.6251*

- Lowest (RM) 0.5894 0.5867 0.5984* 0.5990*

Distribution and Unit Split

Gross Distribution Per Unit (sen) - - 2.5000 2.2000

Net Distribution Per Unit (sen) - - 2.5000 2.2000

Distribution Date - - 21.02.2018 20.02.2017

NAV before distribution (cum) - - 0.6229 0.6254

NAV after distribution (ex) - - 0.5984 0.6034

Unit Split - - - -

Others

Management Expense Ratio

(MER) (%) #

0.71 1.43 1.44 1.42

Portfolio Turnover Ratio

(PTR) (times) ##

- 0.21 0.93 0.20

* The figures quoted are ex-distribution

# The MER for the financial period was lower compared to previous financial

period due to lower expenses incurred for the financial period under review

(refer to Note 11).

## The PTR for the financial period was lower compared to previous financial

period due to lesser investment activities for the financial period under

review (refer to Note 12).

17

RHB GoldenLife 2020



31.08.2019

%

2019

%

2018

%

2017

%

2016

%

2015

%

RHB GoldenLife 2020

- Capital Return (0.12) (8.88) (10.79) (11.50) (12.41) 4.17

- Income Return - - 4.57 9.65 16.03 -

- Total Return (0.12) (8.88) (6.71) (2.96) 1.63 4.17

55% FBM KLCI + 45%


Fixed Deposit Rate (2.68) (3.70) 7.08 2.69 (4.65) 0.62


1 Year

31.08.2018-

31.08.2019

%

3 Years

31.08.2016-

31.08.2019

%

5 Years

31.08.2014-

31.08.2019

%

10 Years

31.08.2009-

31.08.2019

%

RHB GoldenLife 2020 (3.13) (4.14) (3.65) 2.99

55% FBM KLCI + 45%


Fixed Deposit Rate (5.74) 0.49 (0.56) 3.18

18

Performance of RHB GoldenLife 2020











19

As At As At


Fund Size 2019 2019 2018 2017




Historical Data


01.03.2019- 28 February

31.08.2019 2019 2018 2017

Unit Prices

NAV - Highest (RM) 0.5075 0.5508 0.6492* 0.7184*

- Lowest (RM) 0.4941 0.4957 0.5539* 0.6209*







Unit Split - - - -

Others


(MER) (%) #

0.92 1.88 1.82 1.76


(PTR) (times) ##

0.51 0.64 0.41 1.08




(refer to Note 11).

## The PTR for the financial period was higher compared to previous financial

period due to more investments activities for the financial period under


20

RHB GoldenLife 2030



31.08.2019

%

2019

%

2018

%

2017

%

2016

%

2015

%

RHB GoldenLife 2030

- Capital Return (3.22) (13.69) (8.61) (7.55) (15.69) 3.25

- Income Return - - 3.77 4.56 18.73 -

- Total Return (3.22) (13.69) (5.16) (3.33) 0.10 3.25

85% FBM KLCI + 15%


Fixed Deposit Rate (4.67) (6.68) 8.81 2.46 (7.79) (0.37)


1 Year

31.08.2018-

31.08.2019

%

3 Years

31.08.2016-

31.08.2019

%

5 Years

31.08.2014-

31.08.2019

%

10 Years

31.08.2009-

31.08.2019

%

RHB GoldenLife 2030 (11.25) (6.32) (5.89) 3.54

85% FBM KLCI + 15%


Fixed Deposit Rate (9.65) (0.76) (2.17) 3.20

21

Performance of RHB GoldenLife 2030











22

As At As At


Fund Size 2019 2019 2018 2017




Historical Data


01.03.2019- 28 February

31.08.2019 2019 2018 2017

Unit Prices

NAV - Highest (RM) 0.6041 0.6956 0.8265* 0.8625*

- Lowest (RM) 0.5790 0.5895 0.6985* 0.7528*







Unit Split - - - -

Others


(MER) (%) #

0.95 1.93 1.74 1.71


(PTR) (times) ##

0.92 0.93 1.04 0.43




(refer to Note 11).

## The PTR for the financial period was higher compared to previous financial

period due to more investments activities for the financial period under


23

DISTRIBUTION

For the financial period under review, no distribution has been proposed by the

Funds.

PORTFOLIO STRUCTURE


The asset allocations of the Fund as at reporting date were as follows:

As at

31 August As at 28 February

2019 2019 2018 2017

Sectors % % % %

Equities

Consumer Products 1.02 1.52 2.71 4.42

Energy 1.17 1.05 - -

Finance 6.71 7.50 4.47 0.45

Healthcare 1.43 1.33 - -

Industrial Products - - 1.04 8.01

Infrastructure Project Companies - - 2.21 -

Plantation - - - 2.03

Telecommunications & Media 1.23 0.99 - -

Trading/Services - - 2.07 2.15

Utilities 2.10 1.97 - -

13.66 14.36 12.50 17.06

Unquoted Fixed Income Securities 79.50 77.08 73.90 70.16

Liquid assets and other net current assets 6.84 8.56 13.60 12.78

100.00 100.00 100.00 100.00

The asset allocation was reflective of the Manager’s stance to risk manage its

portfolio in an environment of volatile markets.

24

PORTFOLIO STRUCTURE (CONTINUED)

RHB GoldenLife 2020


As at


2019 2019 2018 2017

Sectors % % % %

Equities

Construction - 1.57 - -


Energy 4.30 1.69 - -

Finance 8.95 17.20 4.26 -

Healthcare - 1.09 - -

Industrial Products 5.39 5.08 14.50 20.09

Properties - - - 2.12

Technology - 0.70 2.78 1.28


Trading/Services - - 16.96 17.52

Transportation & Logistics 2.65 1.16 - -

Utilities 5.57 5.74 - -

42.25 44.62 51.45 60.13

Collective Investment Schemes 4.59 - - -



100.00 100.00 100.00 100.00



25

PORTFOLIO STRUCTURE (CONTINUED)

RHB GoldenLife 2030


As at


2019 2019 2018 2017

Sectors % % % %

Equities

Construction 0.58 1.88 2.52 -


Energy 9.57 3.94 - -

Finance 19.04 26.63 15.81 1.84

Healthcare 1.50 4.81 - -

Industrial Products 10.75 9.70 12.37 23.78

Infrastructure Project Companies - - 3.47 3.30

Properties - - 2.10 2.74

Technology 2.03 1.87 6.52 4.54


Trading/Services - 1.60 22.09 19.06

Transportation & Logistics 2.97 2.09 - -

Utilities 10.24 8.18 - -

Warrants 0.05 0.03 - -

74.55 79.71 78.16 79.53

Collective Investment Schemes 7.00 - - -



100.00 100.00 100.00 100.00



26

BREAKDOWN OF UNIT HOLDINGS BY SIZE


Account Holders No. Of Units Held*

Size of Holdings No. % (‘000) %

5,000 and below 62 27.31 124 0.64

5,001 to 10,000 25 11.01 175 0.91

10,001 to 50,000 104 45.82 2,264 11.75

50,001 to 500,000 32 14.10 3,989 20.69

500,001 and above 4 1.76 12,725 66.01

Total 227 100.00 19,277 100.00

RHB GoldenLife 2020



5,000 and below 50 23.26 135 1.51

5,001 to 10,000 34 15.81 267 2.99

10,001 to 50,000 105 48.84 2,489 27.88

50,001 to 500,000 25 11.63 3,219 36.05

500,001 and above 1 0.46 2,819 31.57

Total 215 100.00 8,929 100.00

RHB GoldenLife 2030



5,000 and below 90 32.03 225 3.38

5,001 to 10,000 69 24.55 472 7.08

10,001 to 50,000 105 37.37 2,311 34.69

50,001 to 500,000 14 4.98 1,390 20.86

500,001 and above 3 1.07 2,265 33.99

Total 281 100.00 6,663 100.00

* Excluding Manager’s stock

27

SOFT COMMISSION

The Fund Manager may only receive soft commission in the form of research and

advisory services that assist in the decision-making process relating to the Fund’s

investments.

During the financial period under review, the soft commission received from the

brokers had been retained by the Manager as the goods and services provided are

of demonstrable benefit to the unitholders.

28


UNAUDITED STATEMENTS OF FINANCIAL POSITION

AS AT 31 AUGUST 2019

31.08.2019

RHB RHB RHB

GoldenLife GoldenLife GoldenLife

Note Today 2020 2030

RM RM RM

ASSETS

Investments 5 10,816,806 4,338,770 3,655,786

Deposits with licensed

financial institutions 6 772,630 132,032 204,282

Bank balances 6 50,060 51,736 51,902

Dividend receivable 4,440 6,621 9,427

Tax recoverable - 188 257 ─────────── ─────────── ───────────

TOTAL ASSETS 11,643,936 4,529,347 3,921,654 ─────────── ─────────── ───────────

LIABILITIES Amount due to Manager 7,827 7,029 12,837

Accrued management fee 12,310 5,698 4,960

Amount due to Trustee 591 228 198

Other payables and accruals 12,609 12,567 12,600 ─────────── ─────────── ─────────── TOTAL LIABILITIES 33,337 25,522 30,595 ─────────── ─────────── ─────────── NET ASSET VALUE 11,610,599 4,503,825 3,891,059 ═══════════ ═══════════ ═══════════

EQUITY

Unitholders’ capital 10,271,679 5,118,253 5,053,647

Retained earnings/(accumulated losses) 1,338,920 (614,428) (1,162,588) ─────────── ─────────── ─────────── 11,610,599 4,503,825 3,891,059 ═══════════ ═══════════ ═══════════

UNITS IN CIRCULATION

(UNITS) 7 19,282,566 8,933,605 6,669,109 ═══════════ ═══════════ ═══════════

NET ASSET VALUE PER UNIT

(RM) 0.6021 0.5041 0.5835 ═══════════ ═══════════ ═══════════

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

29


UNAUDITED STATEMENTS OF FINANCIAL POSITION

AS AT 31 AUGUST 2019 (CONTINUED)

28.02.2019

RHB RHB RHB



RM RM RM

ASSETS

Investments 5 10,923,402 4,254,068 3,820,050


financial institutions 6 1,044,168 410,208 389,511

Bank balances 6 3,783 13,858 2,588

Dividend receivable 144 384 1,008

Tax recoverable - 929 - ─────────── ─────────── ───────────

TOTAL ASSETS 11,971,497 4,679,447 4,213,157 ─────────── ─────────── ───────────

LIABILITIES Amount due to stockbrokers - 57,019 91,231

Amount due to Manager - 6,078 -

Accrued management fee 11,433 5,595 4,727

Amount due to Trustee 549 224 189

Other payables and accruals 13,566 13,496 13,515 ─────────── ─────────── ─────────── TOTAL LIABILITIES 25,548 82,412 109,662 ─────────── ─────────── ─────────── NET ASSET VALUE 11,945,949 4,597,035 4,103,495 ═══════════ ═══════════ ═══════════

EQUITY

Unitholders’ capital 10,684,772 5,205,462 5,134,980

Retained earnings/(accumulated losses) 1,261,177 (608,427) (1,031,485) ─────────── ─────────── ─────────── 11,945,949 4,597,035 4,103,495 ═══════════ ═══════════ ═══════════

UNITS IN CIRCULATION (UNITS) 7 19,971,566 9,107,605 6,806,109 ═══════════ ═══════════ ═══════════

NET ASSET VALUE PER UNIT (RM) 0.5981 0.5047 0.6029 ═══════════ ═══════════ ═══════════


30


UNAUDITED STATEMENTS OF INCOME AND EXPENSES

FOR THE FINANCIAL PERIOD ENDED 31 AUGUST 2019

01.03.2019 to 31.08.2019

RHB RHB RHB



RM RM RM

INCOME/(LOSS)

Dividend income 36,901 52,276 71,584

Interest income from deposits with

licensed financial institutions 14,467 3,510 1,896

Interest income from unquoted

fixed income securities 232,078 56,783 16,413

Net loss on investments 5 (121,880) (57,283) (151,599) ─────────── ─────────── ───────────

161,566 55,286 (61,706) ─────────── ─────────── ───────────

EXPENSES Management fee 8 (73,915) (34,091) (30,096)

Trustee’s fee 9 (3,548) (1,364) (1,204)

Audit fee (2,846) (2,846) (2,846)

Tax agent’s fee (1,932) (1,932) (1,932)

Transaction costs (298) (17,910) (30,198)

Other expenses (1,284) (2,215) (3,121) ─────────── ─────────── ───────────

(83,823) (60,358) (69,397) ─────────── ─────────── ───────────

Net income/(loss) before taxation 77,743 (5,072) (131,103)

Taxation 10 - (929) - ─────────── ─────────── ───────────

Net income/(loss) after taxation 77,743 (6,001) (131,103) ═══════════ ═══════════ ═══════════

Net income/(loss) after taxation is made

up of the following:

Realised amount 186,230 (54,496) 44,073

Unrealised amount (108,487) 48,495 (175,176) ─────────── ─────────── ───────────

77,743 (6,001) (131,103) ═══════════ ═══════════ ═══════════


31


UNAUDITED STATEMENTS OF INCOME AND EXPENSES

FOR THE FINANCIAL PERIOD ENDED 31 AUGUST 2019 (CONTINUED)

01.03.2018 to 31.08.2018

RHB RHB RHB



RM RM RM

INCOME/(LOSS)

Dividend income 33,672 44,054 74,374

Interest income from deposits with

licensed financial institutions 26,676 11,154 9,783

Interest income from unquoted


Net loss on investments 5 (129,351) (410,688) (328,511) ─────────── ─────────── ───────────

178,589 (297,673) (228,134) ─────────── ─────────── ───────────

EXPENSES Management fee 8 (81,802) (39,952) (36,664)

Trustee’s fee 9 (3,927) (1,598) (1,467)

Audit fee (2,823) (2,823) (2,823)

Tax agent’s fee (1,915) (1,915) (1,915)

Transaction costs (6,503) (12,485) (22,652)

Other expenses (4,808) (6,380) (7,284) ─────────── ─────────── ───────────

(101,778) (65,153) (72,805) ─────────── ─────────── ───────────

Net income/(loss) before taxation 76,811 (362,826) (300,939)

Taxation 10 - - - ─────────── ─────────── ───────────

Net income/(loss) after taxation 76,811 (362,826) (300,939) ═══════════ ═══════════ ═══════════

Net income/(loss) after taxation is

made up of the following:

Realised amount 92,168 (1,082,425) (819,187)

Unrealised amount (15,357) 719,599 518,248 ─────────── ─────────── ───────────

76,811 (362,826) (300,939) ═══════════ ═══════════ ═══════════


32


UNAUDITED STATEMENTS OF CHANGES IN NET ASSET VALUE



Unitholders’ Retained Total net

capital earnings asset value

RM RM RM

Balance as at 1 March 2018 11,954,792 1,292,611 13,247,403

Movement in net asset value:

Net income after taxation - 76,811 76,811

Creation of units arising

from distribution 540,457 - 540,457


from applications 75,575 - 75,575

Cancellation of units (1,162,950) - (1,162,950) ───────── ───────── ─────────

Balance as at 31 August 2018 11,407,874 1,369,422 12,777,296 ═════════ ═════════ ═════════

Balance as at 1 March 2019 10,684,772 1,261,177 11,945,949


Net income after taxation - 77,743 77,743



Cancellation of units (507,609) - (507,609) ───────── ───────── ─────────

Balance as at 31 August 2019 10,271,679 1,338,920 11,610,599 ═════════ ═════════ ═════════


33




RHB GoldenLife 2020

Unitholders’ Accumulated Total net

capital losses asset value

RM RM RM

Balance as at 1 March 2018 5,919,338 (94,804) 5,824,534


Net loss after taxation - (362,826) (362,826)






Balance as at 31 August 2018 5,560,837 (457,630) 5,103,207 ═════════ ═════════ ═════════









34




RHB GoldenLife 2030

Unitholders’ Accumulated Total net

capital losses asset value

RM RM RM










Balance as at 1 March 2019 5,134,980 (1,031,485) 4,103,495






Balance as at 31 August 2019 5,053,647 (1,162,588) 3,891,059 ═════════ ═════════ ═════════


35


UNAUDITED STATEMENTS OF CASH FLOWS


01.03.2019 to 31.08.2019

RHB RHB RHB


Today 2020 2030

RM RM RM

CASH FLOWS FROM

OPERATING ACTIVITIES

Proceeds from sale of investments 22,535 2,154,531 3,686,742

Purchase of investments (22,553) (2,366,119) (3,788,477)

Dividends received 27,927 43,044 59,478

Interest received from deposits

with licensed financial institutions 14,467 3,510 1,896

Interest received from unquoted


Management fee paid (73,038) (33,988) (29,863)

Trustee’s fee paid (3,506) (1,360) (1,195)

Payment for other expenses (7,019) (7,922) (8,814)

Tax paid - (188) (257) ──────── ──────── ──────── Net cash generated from/(used in)

operating activities 180,005 (154,040) (67,419) ──────── ──────── ──────── CASH FLOWS FROM

FINANCING ACTIVITIES

Cash proceeds from units created 94,516 6,024 14,794

Cash paid for units cancelled (499,782) (92,282) (83,290) ──────── ──────── ──────── Net cash used in financing activities (405,266) (86,258) (68,496) ──────── ──────── ────────

Net decrease in cash and

cash equivalents (225,261) (240,298) (135,915)

Cash and cash equivalents at the

beginning of the financial period 1,047,951 424,066 392,099 ──────── ──────── ──────── Cash and cash equivalents at the

end of the financial period 822,690 183,768 256,184 ════════ ════════ ════════


36


UNAUDITED STATEMENTS OF CASH FLOWS


01.03.2018 to 31.08.2018

RHB RHB RHB


Today 2020 2030

RM RM RM

CASH FLOWS FROM

OPERATING ACTIVITIES

Proceeds from sale of investments 2,017,904 2,538,384 3,154,121

Purchase of investments (2,270,808) (1,962,593) (3,206,141)

Dividends received 33,133 38,694 69,166

Interest received from deposits

with licensed financial institutions 26,676 11,154 9,783

Interest received from unquoted


Management fee paid (82,209) (41,005) (36,875)

Trustee’s fee paid (3,947) (1,641) (1,475)

Payment for other expenses (11,316) (10,964) (11,487) ──────── ──────── ──────── Net cash (used in)/generated from

operating activities (45,139) 625,970 (6,873) ──────── ──────── ──────── CASH FLOWS FROM

FINANCING ACTIVITIES

Cash proceeds from units created 75,575 23,890 139,681

Cash paid for units cancelled (1,160,540) (851,108) (231,683)

Payment for income distribution (14,844) (359) (17,043) ──────── ──────── ──────── Net cash used in financing activities (1,099,809) (827,577) (109,045) ──────── ──────── ────────

Net decrease in cash and

cash equivalents (1,144,948) (201,607) (115,918)

Cash and cash equivalents at the

beginning of the financial period 2,279,187 839,362 733,910 ──────── ──────── ──────── Cash and cash equivalents at the

end of the financial period 1,134,239 637,755 617,992 ════════ ════════ ════════


37


NOTES TO UNAUDITED THE FINANCIAL STATEMENTS


1 THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES

The RHB GoldenLife Funds (hereinafter referred to as “the Fund”) which

comprises four separate and distinct sub-funds, namely RHB GoldenLife Today,

RHB GoldenLife 2010, RHB GoldenLife 2020 and RHB GoldenLife 2030 (“sub-

fund”) pursuant to the execution of a Master deed (umbrella funds) dated 12 June

2008 as amended via its first supplemental master deed (umbrella funds) dated 25

August 2008, second supplemental master deed (umbrella funds) dated 19 June

2009, third supplemental master deed (umbrella funds) dated 30 April 2013, fourth

supplemental master deed (umbrella funds) dated 24 September 2013, fifth

supplemental master deed (umbrella funds) dated 2 March 2015 and sixth

supplemental master deed (umbrella funds) dated 20 May 2015 (collectively

referred to as “the Deeds”) between RHB Asset Management Sdn Bhd (“the

Manager”) and HSBC (Malaysia) Trustee Berhad (“the Trustee”).

The Fund was launched on 21 February 2005 and will continue its operations until

terminated according to the conditions in the Deeds. As at 28 February 2010, RHB

GoldenLife 2010 (“GL 2010”) matured in accordance with the Deeds. On the

maturity date (28 February 2010), GL 2010 automatically terminated and merged

into RHB GoldenLife Today. RHB GoldenLife 2020 (“GL 2020”) will mature on

29 February 2020 in accordance with the Deeds. On the maturity date (29 February

2020), GL 2020 will be automatically terminated and merged into RHB GoldenLife

Today.

The principal activity of the Fund is to invest in ‘Permitted Investments’ as defined

in the Master Deed, which comprises securities of companies listed on the Bursa

Malaysia Securities Berhad (“Bursa Malaysia”), unlisted securities in Malaysia, all

types of collective investment schemes, derivative instruments and any other form

of investments as may be approved by the relevant authorities from time to time.

All investments will be subject to the Securities Commission Malaysia’s (“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 objective of the Fund.

38

1 THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES

(CONTINUED)

The objectives of the Fund are:

(a) RHB GoldenLife Today - to provide retired investors or investors who are

retiring in the very near future a steady income stream in planning for their

financial needs upon retirement.

(b) RHB GoldenLife 2020 (“GL 2020”) - to provide investors planning to retire in

the year 2020, a wealth accumulation vehicle for meeting their financial needs

upon retirement.

(c) RHB GoldenLife 2030 (“GL 2030”) - to provide investors planning to retire in

the year 2030, a wealth accumulation vehicle for meeting their financial needs

upon retirement.

The Manager, a company incorporated in Malaysia, is a wholly-owned subsidiary

of RHB Investment Bank Berhad, effective 6 January 2003. Its principal activities

include rendering of investment management services, management of unit trust

funds and private retirement schemes and provision of investment advisory

services.

These financial statements were authorised for issue by the Manager on 22 October

2019.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation of the financial statements

The financial statements have been prepared under the historical cost convention, as

modified by financial assets and financial liabilities (including derivative

instruments) at fair value through profit or loss, except as disclosed in this summary

of significant accounting policies, and in accordance with Malaysian Financial

Reporting Standards (“MFRS”) and International Financial Reporting Standards

(“IFRS”).

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

revenues and expenses during the financial period. It also requires the Manager to

exercise its judgement in the process of applying the Fund’s accounting policies.

Although these estimates and judgement are based on the Manager’s best

knowledge of current events and actions, actual results may differ.

39


(CONTINUED)

2.1 Basis of preparation of the financial statements (continued)

GL 2020 will be terminated on 29 February 2020 according to the conditions

provided in the Deeds. As such, the going concern assumption can no longer be

used for the preparation of financial statements of GL 2020. The financial

statements of GL 2020 have therefore been prepared using a liquidation basis.

(a) The Fund has applied the following standard and interpretation to the

existing standard for the first time for the financial period beginning on 1

March 2019:

IC Interpretation 23 ‘Uncertainty over Income Tax Treatments’

(effective 1 January 2019) provides guidance on how to recognise and

measure deferred and current income tax assets and liabilities where

there is uncertainty over a tax treatment.

If an entity concludes that it is not probable that the tax treatment will be

accepted by the tax authority, the effect of the tax uncertainty should be

included in the period when such determination is made. An entity shall

measure the effect of uncertainty using the method which best predicts

the resolution of the uncertainty.

IC Interpretation 23 will be applied retrospectively.

Annual Improvements to MFRSs 2015 – 2017 Cycle: Amendments to

MFRS 112 ‘Income Taxes’ (effective from 1 January 2019) clarify that

where income tax consequences of dividends on financial instruments

classified as equity is recognised (either in profit or loss, other

comprehensive income or equity) depends on where the past transactions

that generated distributable profits were recognised. Accordingly, the tax

consequences are recognised in profit or loss when an entity determines

payments on such instruments are distribution of profits (that is,

dividends). Tax on dividend should not be recognised in equity merely

on the basis that it is related to a distribution to owners.

The adoption of the amendments to published standard and interpretation to

existing standard do not give rise to any material impact on the financial

statements of the Fund.

40


(CONTINUED)

2.2 Financial assets

Classification

The Fund classifies its financial assets in the following measurement categories:

those to be measured subsequently at fair value through profit or loss, and

those to be measured at amortised cost

The Fund classifies its investments based on both the Fund’s business model for

managing those financial assets and the contractual cash flow characteristics of the

financial assets. The portfolio of financial assets is managed and performance is

evaluated on a fair value basis. The Fund is primarily focused on fair value

information and uses that information to assess the assets’ performance and to

make decisions. The Fund has not taken the option to irrevocably designate any

equity securities as fair value through other comprehensive income. The

contractual cash flows of the Fund’s debt securities are solely principal and profit,

however, these securities are neither held for the purpose of collecting contractual

cash flows nor held both for collecting contractual cash flows and for sale. The

collection of contractual cash flows is only incidental to achieving the Fund’s

business model’s objective. Consequently, all investments are measured at fair

value through profit or loss.

The Fund classifies cash and cash equivalents and dividend receivable at amortised

cost as these financial assets are held to collect contractual cash flows consisting of

the amount outstanding.

The Fund designates its investments in quoted investments, collective investment

schemes and unquoted fixed income securities as financial assets at fair value

through profit or loss at inception.

41


(CONTINUED)

2.2 Financial assets (continued)

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. Financial assets and

financial liabilities at fair value through profit or loss are initially recognised at fair

value. Transaction costs are expensed as incurred in the statement of income and

expenses.

Financial assets are de-recognised when the rights to receive cash flows from the

investments have expired or the Fund has transferred substantially all risks and

rewards of ownership.

Subsequent to initial recognition, all financial assets at fair value through profit or

loss are measured at fair value. Gains or losses arising from changes in the fair

value of the ‘financial assets at fair value through profit or loss’ category are

presented in statement of income and expenses in the period which they arise.

Dividend from financial assets at fair value through profit or loss is recognised in

the statement of income and expenses within dividend income from investments

when the Fund’s right to receive payments is established.

Interest on debt securities at fair value through profit or loss is recognised in the

statement of income and expenses.

Quoted investments and collective investment schemes are initially recognised at

fair value and subsequently re-measured at fair value based on the market price

quoted on the relevant stock exchanges at the close of the business on the valuation

day, where the close price falls within the bid-ask spread. In circumstances where

the close price is not within the bid-ask spread, the Manager will determine the

point within the bid-ask spread that is most representative of the fair value.

If a valuation based on the market price does not represent the fair value of the

securities, for example during abnormal market conditions or when no market price

is available, including in the event of a suspension in the quotation of the securities

for a period exceeding 14 days, or such shorter period as agreed by the Trustee, then

the securities are valued as determined in good faith by the Manager, based on the

methods or bases approved by the Trustee after appropriate technical consultation.

42


(CONTINUED)


Recognition and measurement (continued)

Unquoted fixed income securities denominated in Ringgit Malaysia 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.

Where such quotations are not available or where the Manager is of the view that

the price quoted by the BPA for a specific unquoted fixed income security differs

from the market price by more than 20 basis points, the Manager may use the

market price, provided that the Manager:

(i) Records its basis for using a non-BPA price;

(ii) Obtains necessary internal approvals to use the non-BPA price; and

(iii) Keeps an audit trail of all decisions and basis for adopting the market price.

Deposits with licensed financial institutions are stated at cost plus accrued interest

calculated on the effective interest method over the period from the date of

placement to the date of maturity of the respective deposits, which is a reasonable

estimate of fair value due to the short-term nature of the deposits.

Financial assets at amortised cost are subsequently carried at amortised cost using

the effective interest method.

Impairment of financial assets

The Fund measures credit risk and expected credit losses using probability of

default, exposure at default and loss given default. Management considers both

historical analysis and forward looking information in determining any expected

credit loss. Management considers the probability of default to be close to zero as

these instruments have a low risk of default and the counterparties have a strong

capacity to meet their contractual obligations in the near term. As a result, no loss

allowance has been recognised based on 12-month expected credit losses as any

such impairment would be wholly insignificant to the Fund.

43


(CONTINUED)


Significant increase in credit risk

A significant increase in credit risk is defined by management as any contractual

payment which is more than 30 days past due or a counterparty credit rating which

has fallen below BBB/Baa.

Definition of default and credit-impaired financial assets

Any contractual payment which is more than 90 days past due is considered credit

impaired.

Write-off

The Fund write off financial assets, in whole or in part, when it has exhausted all

practical recovery efforts and has concluded there is no reasonable expectation of

recovery. The assessment of no reasonable expectation of recovery is based on

unavailability of debtor’s sources of income or assets to generate sufficient future

cash flows to repay the amount. The Fund may write-off financial assets that are still

subject to enforcement activity. Subsequent recoveries of amounts previously

written off will result in impairment gains. There are no write-offs/recoveries during

the financial period.

2.3 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, within the scope of MFRS 9 are recognised in the statement of

financial position when, and only when, the Fund becomes a party to the contractual

provisions of the financial instrument.

The Fund’s financial liabilities which include amount due to stockbrokers, amount

due to Manager, accrued management fee, amount due to Trustee and other

payables and accruals are recognised initially at fair value and subsequently

measured at amortised cost using the effective interest method.

A financial liability is de-recognised when the obligation under the liability is

extinguished. Gains and losses are recognised in profit or loss when the liabilities

are de-recognised, and through the amortisation process.

44


(CONTINUED)

2.4 Unitholders’ capital

The unitholders’ contributions to the Fund meet the criteria of the definition of

puttable instruments to be classified as equity instruments under MFRS 132

“Financial Instruments: Presentation”. Those criteria include:

the units entitle the holder to a proportionate share of the Fund’s net assets

value;

the units are the most subordinated class and class features are identical;

there is no contractual obligations to deliver cash or another financial asset other

than the obligation on the Fund to repurchase; and

the total expected cash flows from the units over its life are based substantially

on the profit or loss of the Fund.

The outstanding units are carried at the redemption amount that is payable at each

financial period if unitholder exercises the right to put the unit back to the Fund.

Units are created and cancelled at prices based on the Fund’s net asset value per

unit at the time of creation or cancellation. The Fund’s net asset value per unit is

calculated by dividing the net assets attributable to unitholders with the total

number of outstanding units.

2.5 Income recognition

Dividend income from quoted investments and collective investment schemes are

recognised when the Fund’s right to receive payment is established. Dividend

income is received from financial assets measured at FVTPL.

Interest income from deposits with licensed financial institutions and unquoted

fixed income securities are recognised on an accrual basis using the effective

interest method.

Interest income is calculated by applying the effective interest rate to the gross

carrying amount of a financial asset except for financial assets that subsequently

become credit-impaired. For credit-impaired financial assets the effective interest

rate is applied to the net carrying amount of the financial assets (after deduction of

the loss allowance).

45


(CONTINUED)

2.5 Income recognition (continued)

Realised gain or loss on sale of quoted investments and collective investment

schemes are arrived at after accounting for cost of investments, determined on the

weighted average cost method.

Realised gain and loss on sale of unquoted fixed income securities is measured by

the difference between the net disposal proceeds and the carrying amounts of the

investments (adjusted for accretion of discount or amortisation of premium).

Net income or loss is the total of income less expenses.

2.6 Taxation

Current tax expense is determined according to Malaysian tax laws and includes all

taxes based upon the taxable income earned during the financial period.

2.7 Cash and cash equivalents

For the purpose of the statement of cash flows, cash and cash equivalents comprise

bank balances and deposits with licensed financial institutions which are subject to

an insignificant risk of changes in value.

2.8 Presentation and functional 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 Ringgit Malaysia,

which is the Fund’s presentation and functional currency.

2.9 Segmental information

Operating segments are reported in a manner consistent with the internal reporting

used by the chief operating decision-maker. The operating results are regularly

reviewed by the Manager and the Investment Committee. The Investment

Committee assumes the role of chief operating decision maker, for performance

assessment purposes and to make decisions about resources allocated to the

investment segment based on the recommendation by the Investment & Security

Selection Committee.

46

3 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Fund is exposed to a variety of risks, which include market risk, price risk,

interest rate risk, liquidity risk, credit risk and capital risk.

Financial risk management is carried out through internal control processes adopted

by the Manager and adherence to the investment restrictions as stipulated in the SC

Guidelines on Unit Trust Funds.

Market risk

Securities may decline in value due to factors affecting securities markets generally

or particular industries represented in the securities markets. The value of a security

may decline due to general market conditions which are not specifically related to a

particular company, such as real or perceived adverse economic conditions, changes

in the general outlook for corporate earnings, changes in interest or currency rates

or adverse investors’ sentiment generally. They may also decline due to factors that

affect a particular industry or industries, such as labour shortages or increased

production costs and competitive conditions within an industry. Equity securities

generally have greater price volatility than fixed income securities. The market

price of securities owned by a unit trust fund might go down or up, sometimes

rapidly or unpredictably.

47


(CONTINUED)

Price risk

Price risk is the risk that the fair value of an investment of the Fund will fluctuate

because of changes in market prices (other than those arising from interest rate

risk).

The Fund is exposed to price risk arising from interest rate risk in relation to its

investments in unquoted fixed income securities as follows:

31.08.2019 28.02.2019

RM RM

RHB GoldenLife Today 9,230,404 9,207,745 ═════════ ═════════

RHB GoldenLife 2020 2,229,190 2,202,953 ═════════ ═════════

RHB GoldenLife 2030 482,472 549,097 ═════════ ═════════

The Fund’s exposure to price risk arising from interest rate risk and the related

sensitivity analysis are disclosed in “Interest rate risk” below.

The Fund is also exposed to quoted equity security and collective investment

schemes price risk (other than those arising from interest rate risk) as follows:

31.08.2019 28.02.2019

RM RM

RHB GoldenLife Today 1,586,402 1,715,657 ═════════ ═════════

RHB GoldenLife 2020 2,109,580 2,051,115 ═════════ ═════════

RHB GoldenLife 2030 3,173,314 3,270,953 ═════════ ═════════

48


(CONTINUED)

Price risk (continued)

The sensitivity analysis is based on the assumption that the price of the quoted

equity security and collective investment schemes fluctuates by +/(-) 5% with all

other variables held constant, the impact on profit or loss and net asset value are as

follows:

31.08.2019 28.02.2019

RM RM

RHB GoldenLife Today 79,320 85,783 ═════════ ═════════

RHB GoldenLife 2020 105,479 102,556 ═════════ ═════════

RHB GoldenLife 2030 158,666 163,548 ═════════ ═════════

Interest rate risk

In general, when interest rates rise, unquoted fixed income securities prices will

tend to fall and vice versa. Therefore, the net asset value of the Fund may also tend

to fall when interest rates rise or are expected to rise. 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.

This risk is crucial since bond portfolio management depends on forecasting

interest rate movements. Bonds with longer maturity and lower yield coupon rates

are more susceptible to interest rate movements.

Investors should note that fixed income securities (such as the bonds held by the

Fund) and money market instruments are subject to interest rate fluctuations. Such

investments may be subject to unanticipated rise in interest rates which may impair

the ability of the issuers to make payments of interest and principal, especially if the

issuers are highly leveraged. An increase in interest rates may therefore increase the

potential for default by an issuer.

49


(CONTINUED)

Interest rate risk (continued)

The sensitivity analysis is based on the assumption that the interest rate fluctuates

by +/(-) 1%, with all other variables held constant, the impact on profit or loss and

net asset value are as follows:

% Change in interest rate

Impact on profit or loss

and net asset value

31.08.2019 28.02.2019

RM RM


+ 1% (23,748) (29,671)

- 1% 23,838 29,820

═════════ ═════════

RHB GoldenLife 2020

+ 1% (7,402) (8,168)

- 1% 7,441 8,214

═════════ ═════════

RHB GoldenLife 2030

+ 1% (2,902) (3,027)

- 1% 2,930 3,049

═════════ ═════════

Fund’s exposure to interest rate risk arises from short term deposits with approved

licensed financial institutions is expected to be minimal as the deposits are mainly

maintained on a short term basis.

Liquidity risk

Liquidity risk is the risk that the Fund will encounter difficulty in meeting its

financial obligations.

Liquidity risk exists when particular investments are difficult to sell, possibly

preventing a unit trust fund from selling such illiquid investments at an

advantageous time or price. Unit trust funds with principal investment strategies

that involve securities or securities with substantial market and/or credit risk tend to

have the greater exposure to liquidity risk. As part of its risk management, the

Manager will attempt to manage the liquidity of the Fund through asset allocation

and diversification strategies within the portfolio. The Manager will also conduct

constant fundamental research and analysis to forecast future liquidity of its

investments.

50


(CONTINUED)

Liquidity risk (continued)

The table below summarises the Fund’s financial liabilities into relevant maturity

groupings based on the remaining period from the statement of financial position

date to the contractual maturity date. The amounts in the table are the contractual

undiscounted cash flows.

Between

Less than 1 month

1 month to 1 year

RM RM

31.08.2019


Amount due to Manager 7,827 -

Accrued management fee 12,310 -

Amount due to Trustee 591 -

Other payables and accruals - 12,609 ───────── ─────────

20,728 12,609 ═════════ ═════════

RHB GoldenLife 2020





12,955 12,567 ═════════ ═════════

RHB GoldenLife 2030





17,995 12,600 ═════════ ═════════

51


(CONTINUED)

Liquidity risk (continued)

Between

Less than 1 month

1 month to 1 year

RM RM

28.02.2019

RHB GoldenLife Today Accrued management fee 11,433 -



11,982 13,566 ═════════ ═════════

RHB GoldenLife 2020

Amount due to stockbrokers 57,019 -





68,916 13,496 ═════════ ═════════

RHB GoldenLife 2030

Amount due to stockbrokers 91,231 -




96,147 13,515 ═════════ ═════════

52


(CONTINUED)

Credit risk

Credit risk refers to the ability of an issuer or a counter party to make timely

payments of interest, principal and proceeds from realisation of investments. For

investments in fixed income securities, risk is minimised by spreading its maturity

profile. The risk arising from placements of deposits in licensed financial

institutions is managed by ensuring that the Fund will only place deposits in

reputable licensed financial institutions. For amount due from stockbrokers, the

settlement terms are governed by the relevant rules and regulations as prescribed by

the Bursa Malaysia Securities Berhad (“Bursa Malaysia”). 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.

The following table sets out the credit risk concentrations of the Fund:

Unquoted

fixed

income

securities

RM

Cash and

cash

equivalents

RM

Other

financial

assets*

RM

Total

RM

31.08.2019


Financial institutions:

AAA (S) 2,215,689 50,060 - 2,265,749

AA1 523,141 - - 523,141

AA2 559,805 - - 559,805

AA3 3,107,599 772,630 - 3,880,229

AA- IS 2,193,314 - - 2,193,314

BB1 630,856 - - 630,856

Others - - 4,440 4,440

9,230,404 822,690 4,440 10,057,534

53


(CONTINUED)

Credit risk (continued)

Unquoted

fixed

income

securities

RM

Cash and

cash

equivalents

RM

Other

financial

assets*

RM

Total

RM

31.08.2019

RHB GoldenLife 2020


AAA (S) 317,516 183,768 - 501,284

AA3 612,789 - - 612,789

AA- IS 735,038 - - 735,038

BB1 135,183 - - 135,183

Non-rated 428,664 - - 428,664

Others - - 6,621 6,621

2,229,190 183,768 6,621 2,419,579

RHB GoldenLife 2030


AAA - 256,184 - 256,184

AA3 33,424 - - 33,424

AA- IS 288,475 - - 288,475

BB1 160,573 - - 160,573

Others - - 9,427 9,427

482,472 256,184 9,427 748,083

54


(CONTINUED)


Unquoted

fixed

income

securities

RM

Cash and

cash

equivalents

RM

Other

financial

assets*

RM

Total

RM

28.02.2019



AAA 2,074,263 3,783 - 2,078,046

AA1 508,447 - - 508,447

AA2 529,400 - - 529,400

AA3 3,036,262 1,044,168 - 4,080,430

AA- 2,128,379 - - 2,128,379

A1 930,994 - - 930,994

Others - - 144 144

9,207,745 1,047,951 144 10,255,840

RHB GoldenLife 2020


AAA 310,263 424,066 - 734,329

AA3 581,972 - - 581,972

AA- 701,392 - - 701,392

A1 199,499 - - 199,499

Non-rated 409,827 - - 409,827

Others - - 384 384

2,202,953 424,066 384 2,627,403

55


(CONTINUED)


Unquoted

fixed

income

securities

RM

Cash and

cash

equivalents

RM

Other

financial

assets*

RM

Total

RM

28.02.2019

RHB GoldenLife 2030


AAA - 392,099 - 392,099

AA3 33,215 - - 33,215

AA- 272,451 - - 272,451

A1 243,431 - - 243,431

Others - - 1,008 1,008

549,097 392,099 1,008 942,204

* Comprise dividend receivable.

The financial assets of the Fund are neither past due nor impaired.

Capital risk

The capital of the Fund is represented by equity consisting of unitholders’ capital

and retained earnings/(accumulated losses) as follow:

Unitholders’ capital

Retained earnings/

(accumulated losses)

31.08.2019 28.02.2019 31.08.2019 28.02.2019

RM RM RM RM

RHB GoldenLife Today 10,271,679 10,684,772 1,338,920 1,261,177

RHB GoldenLife 2020 5,118,253 5,205,462 (614,428) (608,427)

RHB GoldenLife 2030 5,053,647 5,134,980 (1,162,588) (1,031,485)

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 unitholders. 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 unitholders and benefits

for other stakeholders and to maintain a strong capital base to support the

development of the investment activities of the Fund.

56

4 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 market (such as publicly traded

derivatives and trading securities) are based on quoted market prices at the close of

trading on the financial period end date.

An active market is a market in which transactions for the assets or liabilities 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. The Fund uses a variety of methods and

makes assumptions that are based on market conditions existing at each financial

period end date. Valuation techniques used for non-standardised financial

instruments such as options, currency swaps and other over-the-counter derivatives,

include the use of comparable recent transactions, reference to other instruments

that are substantially the same, discounted cash flow analysis, option pricing

models and other valuation techniques commonly used by market participants

making the maximum use of market inputs and relying as little as possible on

entity-specific inputs.

The fair values are based on the following methodologies and assumptions:

(i) For bank balances and deposits with licensed financial institutions with

maturities less than 1 year, the carrying value is a reasonable estimate of fair

value.

(ii) The carrying value of receivables and payables are assumed to approximate

their fair values due to their short term nature.

Fair value hierarchy

The Fund adopted MFRS 13 “Fair Value Measurement” in respect of disclosures

about the degree of reliability of fair value measurement. This requires the Fund to

classify fair value measurements using a fair value hierarchy that reflects the

significance of the inputs used in making the measurements. The fair value

hierarchy has the following levels:

57

4 FAIR VALUE ESTIMATION (CONTINUED)

Fair value hierarchy (continued)

Level 1: Quoted prices (unadjusted) in active market for identical assets or

liabilities

Level 2: Inputs other than quoted prices included within level 1 that are

observable for the asset or liability, either directly (that is, as prices) or

indirectly (that is, derived from prices)

Level 3: Inputs for the asset and liability that are not based on observable

market data (that is, unobservable inputs)

The following table analyses within the fair value hierarchy the Fund’s financial

assets at fair value through profit or loss (by class) measured at fair value:

Level 1 Level 2 Level 3 Total

RM RM RM RM

31.08.2019


Investments:

- Quoted investments 1,586,402 - - 1,586,402

- Unquoted fixed income

securities - 9,230,404 - 9,230,404 ──────── ──────── ────── ─────────

1,586,402 9,230,404 - 10,816,806 ════════ ════════ ══════ ═════════

RHB GoldenLife 2020

Investments:

- Collective investment

schemes 206,800 - - 206,800



securities - 2,229,190 - 2,229,190 ──────── ──────── ────── ─────────

2,109,580 2,229,190 - 4,338,770 ════════ ════════ ══════ ═════════

58



Level 1 Level 2 Level 3 Total

RM RM RM RM

31.08.2019 (continued)

RHB GoldenLife 2030

Investments:

- Collective investment

schemes 272,400 - - 272,400



securities - 482,472 - 482,472 ──────── ──────── ────── ─────────

3,173,314 482,472 - 3,655,786 ════════ ════════ ══════ ═════════

28.02.2019


Investments:



securities - 9,207,745 - 9,207,745 ──────── ──────── ────── ─────────

1,715,657 9,207,745 - 10,923,402 ════════ ════════ ══════ ═════════

RHB GoldenLife 2020

Investments:



securities - 2,202,953 - 2,202,953 ──────── ──────── ────── ─────────

2,051,115 2,202,953 - 4,254,068 ════════ ════════ ══════ ═════════

RHB GoldenLife 2030

Investments:



securities - 549,097 - 549,097 ──────── ──────── ────── ─────────

3,270,953 549,097 - 3,820,050 ════════ ════════ ══════ ═════════

59



Investments in active listed equities, i.e. quoted investments and collective

investment schemes whose values are based on quoted market prices in active

markets are classified within Level 1. The Fund does not adjust the quoted prices

for these instruments. The Fund’s policies on valuation of these financial assets

are stated in Note 2.2.

Financial instruments that trade in markets that are 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. Level 2

instruments include unquoted fixed income securities. 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 2.2.

5 INVESTMENTS

31.08.2019

RHB RHB RHB


Today 2020 2030

RM RM RM

Investments:

- Collective investment schemes - 206,800 272,400

- Quoted investments 1,586,402 1,902,780 2,900,914

- Unquoted fixed income securities 9,230,404 2,229,190 482,472 ──────── ──────── ────────

10,816,806 4,338,770 3,655,786 ════════ ════════ ════════

28.02.2019

RHB RHB RHB


Today 2020 2030

RM RM RM

Investments:

- Quoted investments 1,715,657 2,051,115 3,270,953

- Unquoted fixed income securities 9,207,745 2,202,953 549,097 ──────── ──────── ────────

10,923,402 4,254,068 3,820,050 ════════ ════════ ════════

60

5 INVESTMENTS (CONTINUED)

01.03.2019 to 31.08.2019

RHB RHB RHB


Today 2020 2030

RM RM RM

Net loss on investments comprised:

- Net realised gain/(loss) on sale

of investments 280 (102,896) 27,076

- Net unrealised (loss)/gain on

changes in fair values (122,160) 45,613 (178,675) ──────── ──────── ────────

(121,880) (57,283) (151,599) ════════ ════════ ════════

01.03.2018 to 31.08.2018

RHB RHB RHB


Today 2020 2030

RM RM RM

Net loss on investments comprised:

- Net realised loss on sale

of investments (113,994) (1,130,287) (846,759)

- Net unrealised (loss)/gain on

changes in fair values (15,357) 719,599 518,248 ──────── ──────── ────────

(129,351) (410,688) (328,511) ════════ ════════ ════════

61



Investments as at 31 August 2019 are as follows:

Name of Counter Quantity Cost Fair value

% of net

asset value

RM RM %

QUOTED INVESTMENTS

MAIN MARKET

CONSUMER

Kawan Food Bhd 48,266 162,811 58,884 0.51

CONSUMER PRODUCTS

British American Tobacco

(Malaysia) Bhd 3,000 102,469 59,160 0.51

ENERGY

Dialog Group Bhd 39,000 126,461 135,720 1.17

FINANCE

CIMB Group Holdings Bhd 39,942 274,143 202,107 1.74

Malayan Banking Bhd 36,000 350,698 312,840 2.69

Public Bank Bhd 13,000 317,720 264,160 2.28

942,561 779,107 6.71

HEALTH

Hartalega Holdings Bhd 21,000 134,121 107,730 0.92

Kossan Rubber Industries Bhd 14,000 57,486 59,080 0.51

191,607 166,810 1.43

TELECOMMUNICATIONS

& MEDIA

Axiata Group Bhd 25,220 137,753 127,361 1.10

DiGi.Com Bhd 3,000 13,651 15,060 0.13

151,404 142,421 1.23

UTILITIES

Tenaga Nasional Bhd 17,500 261,847 244,300 2.10

TOTAL QUOTED

INVESTMENT

1,939,160 1,586,402 13.66

62


RHB GoldenLife Today (continued)

Investments as at 31 August 2019 are as follows: (continued)

Name of Counter

Nominal

value Cost Fair value

% of net

asset value RM RM %

UNQUOTED FIXED

INCOME SECURITIES

5.15% Alpha Circle Sdn Bhd

19/11/2019 AA- IS 1,000,000 1,014,352 1,016,263 8.75

7.10% BGSM Management

Sdn Bhd 28/12/2022 AA3 150,000 161,455 167,118 1.44

2.50% Bright Focus Bhd

IMTN 24/01/2030 BB1 1,400,000 1,009,461 630,856 5.43

4.98% Genm Capital

31/03/2027 AAA(S) 2,000,000 2,042,569 2,215,689 19.08

4.50% Hong Leong Assurance

Bhd 07/02/2025 AA3 1,400,000 1,404,315 1,407,885 12.13

5.29% Konsortium ProHAWK

Sdn Bhd 26/12/2031 AA2 500,000 517,870 559,805 4.82

6.40% Maju Expressway Sdn

Bhd 28/04/2034 AA- IS 500,000 522,359 603,014 5.19

5.45% SPG IMTN 31/10/2033

AA- IS 500,000 509,257 574,037 4.95

5.85% Tanjung Bin Energy

Issuer Berhad 15/09/2028

AA3 1,100,000 1,199,357 1,287,480 11.09

63




Name of Counter

Nominal


% of net

asset value RM RM %

UNQUOTED FIXED

INCOME SECURITIES

(CONTINUED)



AA3 200,000 222,468 245,116 2.11

4.49% YTL Power

International Bhd

24/03/2023 AA1 500,000 511,289 523,141 4.51

TOTAL UNQUOTED

FIXED INCOME SECURITIES 9,114,752 9,230,404 79.50

TOTAL

INVESTMENTS 11,053,912 10,816,806 93.16

64



Investments as at 28 February 2019 are as follows:


% of net

asset value

RM RM %

QUOTED INVESTMENTS

MAIN MARKET

CONSUMER PRODUCTS


(Malaysia) Bhd 3,000 102,469 101,100 0.85

Kawan Food Bhd 48,266 162,811 79,639 0.67

265,280 180,739 1.52

ENERGY

Dialog Group Bhd 39,000 126,461 125,970 1.05

FINANCE



Public Bank Bhd 13,000 317,720 325,000 2.72

937,883 896,213 7.50

HEALTHCARE



191,607 159,320 1.33

TELECOMMUNICATIONS &

MEDIA

Axiata Group Bhd 25,220 137,753 104,915 0.88

DiGi.Com Bhd 3,000 13,651 13,650 0.11

151,404 118,565 0.99

UTILITIES

Tenaga Nasional Berhad 17,500 261,847 234,850 1.97

TOTAL QUOTED

INVESTMENTS

1,934,482 1,715,657 14.36

65



Investments as at 28 February 2019 are as follows: (continued)

Name of Counter

Nominal


% of net

asset value RM RM %

UNQUOTED FIXED

INCOME SECURITIES

5.15% Alpha Circle Sdn

Bhd 19/11/2019 AA-

1,000,000

1,013,983

1,016,682

8.51

7.10% BGSM

Management Sdn Bhd

28/12/2022 AA3

150,000

162,716

166,076

1.39

2.50% Bright Focus

Bhd IMTN 24/01/2030

A1

1,400,000

995,728

930,994

7.79

4.98% GENM Capital

31/03/2027 AAA

2,000,000

2,042,023

2,074,263

17.36

4.50% Hong Leong

Assurance Bhd

07/02/2025 AA3

1,400,000

1,403,797

1,404,875

11.76

5.29% Konsortium

ProHAWK Sdn Bhd

26/12/2031 AA2

500,000

518,114

529,400

4.43

6.40% Maju

Expressway Sdn Bhd

28/04/2034 AA-

500,000

522,424

569,449

4.77

66




Name of Counter

Nominal


% of net

asset value RM RM %

UNQUOTED FIXED

INCOME SECURITIES

(CONTINUED)

5.45% SPG IMTN

31/10/2033 AA- 500,000 509,034 542,248 4.54

5.85% Tanjung Bin

Energy Issuer Bhd

15/09/2028 AA3 1,100,000 1,201,884 1,232,522 10.32

6.15% Tanjung Bin

Energy Issuer Bhd

15/09/2031 AA3 200,000 222,870 232,789 1.95

4.49% YTL Power

International Bhd

24/03/2023 AA1 500,000 511,293 508,447 4.26

TOTAL UNQUOTED

FIXED INCOME SECURITIES

9,103,866

9,207,745

77.08

TOTAL

INVESTMENTS 11,038,348 10,923,402 91.44

67


RHB GoldenLife 2020


Name of Counter Quantity Cost

Fair

value

% of net

asset

value

RM RM %

QUOTED INVESTMENTS

MAIN MARKET

CONSUMER PRODUCTS &

SERVICES

Bermaz Auto Bhd 35,000 94,699 79,800 1.77

Carlsberg Brewery Malaysia

Bhd 3,700 90,624 95,830 2.12

Heineken Malaysia Bhd 4,000 97,196 98,000 2.18

Petronas Dagangan Bhd 3,800 89,276 86,944 1.93

PPB Group Bhd 5,000 93,200 93,300 2.07

QL Resources Bhd 14,000 96,018 97,160 2.16

561,013 551,034 12.23

ENERGY

Dialog Group Bhd 24,000 74,374 83,520 1.86

Serba Dinamik Holdings Bhd 25,000 100,773 110,000 2.44

175,147 193,520 4.30

FINANCIAL SERVICES

Alliance Bank Malaysia Bhd 13,000 54,729 39,000 0.86

AMMB Holdings Bhd 11,000 46,720 46,200 1.03



Public Bank Bhd 6,400 151,193 130,048 2.89

478,861 402,758 8.95

INDUSTRIAL PRODUCTS &

SERVICES

Cahya Mata Sarawak Bhd 7,700 24,409 18,095 0.40

Petronas Chemicals Group Bhd 20,500 179,111 142,065 3.16

Sunway Bhd 50,000 83,115 82,500 1.83

286,635 242,660 5.39

68


RHB GoldenLife 2020 (continued)



Fair

value

% of net

asset value

RM RM %

QUOTED INVESTMENTS

(CONTINUED)

MAIN MARKET

TELECOMMUNICATIONS

& MEDIA

Axiata Group Bhd 28,224 146,036 142,531 3.16

TRANSPORTATION &

LOGISTICS

Bintulu Port Holdings Bhd 9,500 40,280 37,145 0.82

Malaysia Airports Holdings

Bhd 10,000 87,019 82,300 1.83

127,299 119,445 2.65

Utilities

Malakoff Corp Bhd 100,000 86,800 87,500 1.94


252,570 250,832 5.57

TOTAL QUOTED

INVESTMENTS

2,027,561 1,902,780 42.25

COLLECTIVE

INVESTMENT SCHEMES

Axis Real Estate Investment

Trust 37,000 64,525 70,300 1.56

Sunway Real Estate Investment

Trust 70,000 133,380 136,500 3.03

TOTAL COLLECTIVE

INVESTMENT SCHEMES

197,905 206,800 4.59

69




Name of Counter

Nominal


% of net

asset value RM RM %

UNQUOTED FIXED

INCOME SECURITIES

5.00% ACSB IMTN

21/11/2019 AA-IS 130,000 131,834 132,024 2.93

4.92% Aquasar Capital Sdn

Bhd 18/07/2023 AAA(S) 300,000 303,485 317,516 7.05

2.50% Bright Focus Bhd IMTN

24/01/2030 BB1 300,000 216,276 135,183 3.00


Bhd 28/04/2034 AA-IS 500,000 522,403 603,014 13.39

4.53% Perbadanan Tabung

Pendidikan Tinggi National

27/08/2026 400,000 400,248 428,664 9.52



AA3 500,000 544,977 612,789 13.61

TOTAL UNQUOTED

FIXED INCOME SECURITIES 2,119,223 2,229,190 49.50

TOTAL INVESTMENTS 4,344,689 4,338,770 96.34

70





% of net

asset value

RM RM %

QUOTED INVESTMENTS

MAIN MARKET

CONSTRUCTION

IJM Corp Bhd 40,000 72,356 72,000 1.57

CONSUMER PRODUCTS

Ajinomoto (M) Bhd 6,800 160,069 126,752 2.76


(Malaysia) Bhd 3,000 85,466 101,100 2.20

Genting Bhd 6,000 39,360 44,220 0.96

284,895 272,072 5.92

ENERGY

Dialog Group Bhd 24,000 74,374 77,520 1.69

FINANCE




Public Bank Bhd 10,000 236,240 250,000 5.44

822,736 790,658 17.20

HEALTHCARE



SERVICES

Petronas Chemical Group Bhd 17,500 155,500 161,350 3.51

P.I.E. Industrial Bhd 36,000 79,225 58,320 1.27

Rohas Technic Bhd 22,700 33,058 13,733 0.30

267,783 233,403 5.08

71





% of net

asset value

RM RM %

QUOTED INVESTMENTS (CONTINUED)

MAIN MARKET (CONTINUED)

TECHNOLOGY

Elsoft Research Bhd 31,200 35,065 32,136 0.70


MEDIA

Astro Malaysia Holdings

Bhd 38,000 60,477 62,320 1.35

Axiata Group Bhd 25,724 137,139 107,012 2.33

DiGi.Com Bhd 8,000 36,402 36,400 0.79

234,018 205,732 4.47

TRANSPORTATION &

LOGISTICS

MMC Corp Bhd 50,000 56,775 53,500 1.16

UTILITIES



281,235 264,094 5.74

TOTAL QUOTED

INVESTMENTS

2,188,707

2,051,115

44.62

72




Name of Counter

Nominal


% of net

asset value

RM RM %

UNQUOTED FIXED

INCOME SECURITIES

5.00% Alpha Circle Sdn

Bhd 21/11/2019 AA-

130,000

131,781

131,943

2.87

4.92% Aquasar Capital

Sdn Bhd

18/07/2023 AAA

300,000

303,562

310,263

6.75


IMTN 24/01/2030 A1

300,000

213,333

199,499

4.34

6.40% Maju Expressway

Sdn Bhd 28/04/2034 AA-

500,000

522,469

569,449

12.39

4.53% Perbadanan

Tabung Pendidikan

Tinggi Nasional

27/08/2026 NR

400,000

400,099

409,827

8.91

6.15% Tanjung Bin

Energy Issuer Bhd

15/09/2031 AA3

500,000

545,649

581,972

12.66

TOTAL UNQUOTED


2,116,893

2,202,953

47.92

TOTAL

INVESTMENTS 4,305,600 4,254,068 92.54

73


RHB GoldenLife 2030



% of net

asset value

RM RM %

QUOTED INVESTMENTS

MAIN MARKET

CONSTRUCTION

Gabungan AQRS Bhd 18,360 25,725 22,583 0.58

CONSUMER PRODUCTS &

SERVICES

Bermaz Auto Bhd 30,000 81,270 68,400 1.76

Carlsberg Brewery Malaysia Bhd 3,500 89,148 90,650 2.32

Heineken Malaysia Bhd 4,000 91,898 98,000 2.52

Mynews Holdings Bhd 30,000 44,400 41,400 1.06

Petronas Dagangan Bhd 3,500 82,228 80,080 2.06

PPB Group Bhd 4,500 83,880 83,970 2.16

QL Resources Bhd 13,000 89,159 90,220 2.32

561,983 552,720 14.20

ENERGY

Dialog Group Bhd 50,000 149,318 174,000 4.47

Hibiscus Petroleum Bhd 73,400 77,914 66,427 1.71

Serba Dinamik Holdings Bhd 30,000 122,277 132,000 3.39

349,509 372,427 9.57

FINANCIAL SERVICES



BIMB Holdings Bhd 14,500 66,698 58,725 1.51


Hong Leong Bank Bhd 3,500 66,360 58,100 1.49


Public Bank Bhd 9,300 212,204 188,976 4.86

849,076 741,057 19.04

74





Fair

value

% of net

asset value

RM RM %

QUOTED INVESTMENTS

(CONTINUED)

MAIN MARKET

HEALTH CARE

KPJ Healthcare Bhd 64,000 72,230 58,240 1.50


SERVICES

Cahya Mata Sarawak Bhd 11,000 33,863 25,850 0.66

HSS Engineers Bhd 60,000 70,170 48,300 1.24


Scientex Bhd 6,000 51,540 50,040 1.29

Sunway Bhd 50,000 83,000 82,500 2.12

496,274 418,402 10.75

TECHNOLOGY

Inari Amertron Bhd 48,400 91,627 78,892 2.03


MEDIA

Axiata Group Bhd 27,926 147,660 141,026 3.62

75





% of net

asset value

RM RM %

QUOTED INVESTMENTS

(CONTINUED)

MAIN MARKET

TRANSPORTATION &

LOGISTICS

Bintulu Port Holdings Bhd 8,500 36,040 33,235 0.85

Malaysia Airports Holdings Bhd 10,000 87,019 82,300 2.12

123,059 115,535 2.97

TSR / WARRANTS / CALL

WARRANTS

Gabungan AQRS Bhd 4,500 - 1,755 0.05

UTILITIES


Taliworks Corp Bhd 100,000 93,880 89,000 2.29


413,489 398,277 10.24

TOTAL QUOTED

INVESTMENTS

3,130,632 2,900,914 74.55

COLLECTIVE INVESTMENT

SCHEMES

Axis Real Estate Investment Trust 51,000 88,799 96,900 2.49

Sunway Real Estate Investment

Trust 90,000 172,332 175,500 4.51

TOTAL COLLECTIVE

INVESTMENT SCHEMES 261,131 272,400 7.00

76




Name of Counter

Nominal


% of net

asset value RM RM %

UNQUOTED FIXED

INCOME SECURITIES

7.10% BGSM Management

Sdn Bhd 28/12/2022 AA3 30,000 32,346 33,424 0.86


IMTN 24/01/2030 BB1 60,000 43,280 27,037 0.70


IMTN 22/01/2031 BB1 320,000 223,220 133,536 3.43


Bhd 28/04/2034 AA-IS 144,000 150,446 173,668 4.46

5.45% SPG IMTN 31/10/2033

AA-IS 100,000 101,852 114,807 2.95

TOTAL UNQUOTED FIXED

INCOME SECURITIES

551,144 482,472 12.40

TOTAL INVESTMENTS 3,942,907 3,655,786 93.95

77





% of net

asset value

RM RM %

QUOTED INVESTMENTS

MAIN MARKET

CONSTRUCTION

Gabungan AQRS Bhd 18,000 25,725 19,800 0.48

IJM Corp Bhd 32,000 57,668 57,600 1.40

83,393 77,400 1.88

CONSUMER PRODUCTS &

SERVICES

Ajinomoto (M) Bhd 1,900 18,408 35,416 0.86


(Malaysia) Bhd

4,000

120,342

134,800

3.28

DRB-Hicom Bhd 41,000 93,156 75,850 1.85

Genting Bhd 8,000 52,480 58,960 1.44

Kawan Food Bhd 15,000 29,055 24,750 0.60

Lii Hen Industries Bhd 26,000 71,550 73,580 1.79

Mynews Holdings Bhd 30,000 44,400 40,800 0.99

Padini Holdings Bhd 14,300 75,338 55,055 1.34

Sime Darby Berhad 22,000 57,200 47,740 1.16

561,929 546,951 13.31

ENERGY

Dialog Group Bhd 50,000 149,318 161,500 3.94

FINANCE





Public Bank Bhd 15,700 354,396 392,500 9.57

1,091,249 1,092,724 26.63

78





% of net

asset value

RM RM %



HEALTHCARE



KPJ Healthcare Bhd 64,000 72,230 64,640 1.58

223,324 196,940 4.81


SERVICES

Kelington Group Bhd 40,000 48,400 49,200 1.20


P.I.E. Industrial Bhd 30,000 67,096 48,600 1.18

Press Metal Aluminium

Holdings Bhd

12,000

53,386

50,760

1.24

Uchi Technologies Bhd 18,000 47,237 50,760 1.24

393,458 398,011 9.70

TECHNOLOGY

Elsoft Research Bhd 34,320 42,278 35,350 0.86

Inari Amertron Bhd 26,400 57,088 41,448 1.01

99,366 76,798 1.87

TELECOMMUNICATIONS

& MEDIA

Axiata Group Bhd 32,926 178,498 136,972 3.34

DiGi.Com Bhd 21,000 97,387 95,550 2.33

275,885 232,522 5.67

79





% of net

asset value

RM RM %



TRADING/SERVICES

Perak Transit Bhd 278,950 38,039 65,553 1.60

TRANSPORTATION &

LOGISTICS

MMC Corp Bhd 80,000 90,840 85,600 2.09

UTILITIES



373,894 335,784 8.18

TSR / Warrants / Call

Warrants

Gabungan Aqrs Bhd -

Warrants B

4,500

-

1,170

0.03

TOTAL QUOTED

INVESTMENTS

3,380,695

3,270,953

79.71

80




Name of Counter

Nominal


% of net

asset value

RM RM %

UNQUOTED FIXED

INCOME SECURITIES

7.10% BGSM

Management Sdn Bhd

28/12/2022 AA3

30,000

32,607

33,215

0.81


IMTN 24/01/2030 A1

60,000

42,692

39,900

0.97


IMTN 22/01/2031 A1

320,000

220,230

203,531

4.96

6.40% Maju Expressway

Sdn Bhd 28/04/2034 AA- 144,000

150,465

164,001

4.00

5.45% SPG IMTN

31/10/2033 AA-

100,000

101,807

108,450

2.64

TOTAL UNQUOTED


547,801

549,097

13.38

TOTAL

INVESTMENTS 3,928,496 3,820,050 93.09

81

6 CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise:

31.08.2019

RHB RHB RHB


Today 2020 2030

RM RM RM


financial institutions 772,630 132,032 204,282

Bank balances 50,060 51,736 51,902 ──────── ──────── ────────

822,690 183,768 256,184 ════════ ════════ ════════

28.02.2019

RHB RHB RHB


Today 2020 2030

RM RM RM


financial institutions 1,044,168 410,208 389,511

Bank balances 3,783 13,858 2,588 ──────── ──────── ────────

1,047,951 424,066 392,099 ════════ ════════ ════════

7 UNITS IN CIRCULATION


31.08.2019 28.02.2019

Units Units

At the beginning of the financial period/year 19,971,566 22,107,000

Creation of units during the financial period/year:

Arising from distribution - 902,566

Arising from applications 158,000 253,000

Cancellation of units during the

financial period/year (847,000) (3,291,000) ──────── ──────── At the end of the financial period/year 19,282,566 19,971,566 ════════ ════════

82

7 UNITS IN CIRCULATION (CONTINUED)

RHB GoldenLife 2020

31.08.2019 28.02.2019

Units Units





Cancellation of units during

the financial period/year (186,000) (2,539,000) ──────── ──────── At the end of the financial period/year 8,933,605 9,107,605 ════════ ════════

RHB GoldenLife 2030

31.08.2019 28.02.2019

Units Units





Cancellation of units during

the financial period/year (162,000) (917,000) ──────── ──────── At the end of the financial period/year 6,669,109 6,806,109 ════════ ════════

83

8 MANAGEMENT FEE

In accordance with the Prospectus, the management fee provided in the financial

statements is 1.25% (01.03.2018-31.08.2018: 1.25%) per annum for RHB

GoldenLife Today and 1.50% (01.03.2018-31.08.2018: 1.50%) per annum for RHB

GoldenLife 2020 and RHB GoldenLife 2030 based on the net asset value of the

Fund, calculated on a daily basis for the financial period.

9 TRUSTEE’S FEE

In accordance with the Prospectus, the Trustee’s fee provided in the financial

statements is 0.06% (01.03.2018-31.08.2018: 0.06%) per annum based on the net

asset value of the Funds, calculated on a daily basis for the financial period.

10 TAXATION

(a) Tax charge for the financial period

01.03.2019 to 31.08.2019

RHB RHB RHB


Today 2020 2030

RM RM RM

Current taxation - - -

Over provision of tax in prior year - (929) - ──────── ──────── ────────

- (929) - ════════ ════════ ════════

01.03.2018 to 31.08.2018

RHB RHB RHB


Today 2020 2030

RM RM RM

Current taxation - - - ════════ ════════ ════════

84

10 TAXATION (CONTINUED)

(b) Numerical reconciliation of income tax expense

The numerical reconciliation between the net income/(loss) before taxation

multiplied by the Malaysian statutory income tax rate and the tax expense of the

Fund is as follows:

01.03.2019 to 31.08.2019

RHB RHB RHB


Today 2020 2030

RM RM RM

Net income/(loss) before taxation 77,743 (5,072) (131,103) ════════ ════════ ════════

Tax calculated at statutory

income tax rate of 24% 18,658 (1,217) (31,465)

Tax effects of:

- (Income not subject to tax)/

loss not deductible for tax purposes (38,776) (13,269) 14,809

- Expenses not deductible

for tax purposes 1,695 5,619 8,726

- Restriction on tax deductible

expenses for unit trust funds 18,423 8,867 7,930

- Over provision of tax in prior year - (929) - ──────── ──────── ────────

Tax expense - (929) - ════════ ════════ ════════

85

10 TAXATION (CONTINUED)

(b) Numerical reconciliation of income tax expense (continued)

The numerical reconciliation between the net income/(loss) before taxation

multiplied by the Malaysian statutory income tax rate and the tax expense of the

Fund is as follows: (continued)

01.03.2018 to 31.08.2018

RHB RHB RHB


Today 2020 2030

RM RM RM

Net income/(loss) before taxation 76,811 (362,826) (300,939) ════════ ════════ ════════

Tax calculated at statutory

income tax rate of 24% 18,435 (87,078) (72,225)

Tax effects of:

- (Income not subject to tax)/

loss not deductible for tax purposes (42,861) 71,442 54,752

- Expenses not deductible

for tax purposes 3,342 4,982 7,532

- Restriction on tax deductible

expenses for unit trust funds 21,084 10,654 9,941 ──────── ──────── ────────

Tax expense - - - ════════ ════════ ════════

86

11 MANAGEMENT EXPENSE RATIO (“MER”)

01.03.2019 to 31.08.2019

RHB RHB RHB


Today 2020 2030

MER (%) 0.71 0.92 0.95 ════════ ════════ ════════

01.03.2018 to 31.08.2018

RHB RHB RHB


Today 2020 2030

MER (%) 0.73 0.99 1.02 ════════ ════════ ════════

The MER ratio is calculated based on total expenses excluding investment

transaction related costs of the Fund to the average net asset value of the Fund

calculated on a daily basis.

12 PORTFOLIO TURNOVER RATIO (“PTR”)

01.03.2019 to 31.08.2019

RHB RHB RHB


Today 2020 2030

PTR (times) - 0.51 0.92 ════════ ════════ ════════

01.03.2018 to 31.08.2018

RHB RHB RHB


Today 2020 2030

PTR (times) 0.17 0.50 0.75 ════════ ════════ ════════

The PTR ratio is calculated based on average of acquisition and disposals of the

Fund for the financial period to the average net asset value of the Fund calculated

on a daily basis.

87

13 UNITS HELD BY THE MANAGER AND PARTIES RELATED TO

THE MANAGER

The number of units held by the Manager is as follows:

31.08.2019 28.02.2019

Units RM Units RM

The Manager

RHB GoldenLife Today 5,765 3,471 5,062 3,028

RHB GoldenLife 2020 5,030 2,536 5,007 2,527

RHB GoldenLife 2030 5,910 3,448 5,383 3,245 ═══════ ═══════ ══════ ══════

The units are held beneficially by the Manager for booking purposes. The

Manager is of the opinion that all transactions with the related parties have been

entered into in the normal course of business at agreed terms between the related

parties.

Other than the above, there were no units held by Directors or parties related to the

Manager.

The holding company and the ultimate holding company of the Manager is RHB

Investment Bank Berhad and RHB Bank Berhad respectively. The Manager treats

RHB Bank Berhad group of companies including RHB Investment Bank Berhad

and its subsidiaries as related parties.

88

14 TRANSACTIONS BY THE FUND


Details of transactions by the Fund for the financial period ended 31 August 2019

are as follows:

Details of transactions by the Fund for the financial year ended 28 February 2019

are as follows:

Brokers/

financial institutions

Value of

trades

Percentage

of total

trades

Brokerage

fees

Percentage

of total

brokerage

fees

RM % RM %

Credit Suisse

Securities (Malaysia)

Sdn Bhd 22,610 50.31 45 16.84

RHB Investment

Bank Bhd* 22,330 49.69 224 83.16

44,940 100.00 269 100.00

Brokers/


Value of

trades

Percentage

of total

trades

Brokerage

fees

Percentage

of total

brokerage

fees

RM % RM %

Affin Hwang

Investment Bank Bhd 2,380,070 46.29 - -

RHB Investment

Bank Bhd* 1,062,351 20.66 2,801 47.01

Alliance Bank Bhd 523,750 10.18 - -

Maybank Investment

Bank Bhd 491,451 9.56 1,474 24.74

CIMB Investment

Bank Bhd 314,761 6.12 944 15.85

Public Investment

Bank Bhd 209,630 4.08 419 7.03

Alliance Investment

Bank Bhd 160,002 3.11 320 5.37

5,142,015 100.00 5,958 100.00

89

14 TRANSACTIONS BY THE FUND (CONTINUED)

RHB GoldenLife 2020


as follows:

Brokers/


Value of

trades

Percentage

of total

trades

Brokerage

fees

Percentage

of total

brokerage

fees

RM % RM %

RHB Investment Bank

Berhad* 1,533,108 34.35 4,779 38.37

Macquarie Capital


Sdn Bhd 724,293 16.23 1,449 11.63

Maybank Investment

Bank Berhad 695,048 15.57 2,085 16.74

CIMB Investment

Bank berhad 484,466 10.85 1,453 11.67

Affin Hwang

Investment Bank

Berhad 358,737 8.04 1,076 8.64

KAF-Seagroatt &

Campbell Securities

Sdn Bhd 278,180 6.23 835 6.70

Credit Suisse


Sdn Bhd 203,399 4.56 407 3.26

CLSA Securities

Malaysia Sdn Bhd 185,996 4.17 372 2.99

4,463,227 100.00 12,456 100.00

90




as follows:

Brokers/


Value of

trades

Percentage

of total

trades

Brokerage

fees

Percentage

of total

brokerage

fees

RM % RM %

RHB Investment Bank

Bhd* 1,971,448

38.89 4,968

42.25

CIMB Investment

Bank Bhd 680,127

13.42 2,145

18.24

Affin Hwang

Investment Bank Bhd 550,160

10.86

- -

Maybank Investment

Bank Bhd 477,375

9.42 1,575

13.40

Kenanga Investment

Bank Bhd 447,053

8.82 894

7.60

Alliance Investment

Bank Bhd 343,918

6.79 688

5.85

MIDF Amanah

Investment Bank Bhd 277,035

5.47 673

5.72

Public Investment

Bank Bhd 118,969

2.35 242

2.06

Macquarie Capital


Sdn Bhd 72,731

1.43 187

1.59

Hong Leong Investment

Bank Bhd 39,117

0.77 78

0.66

Others 90,295 1.78 309 2.63

5,068,228 100.00 11,759 100.00

91


RHB GoldenLife 2030


are as follows:

Brokers/


Value of

trades

Percentage

of total

trades

Brokerage

fees

Percentage

of total

brokerage

fees

RM % RM %

RHB Investment Bank

Bhd* 3,160,614 42.80 9,709 44.58

CIMB Investment

Bank Bhd 1,613,906 21.86 4,842 22.23

Maybank Investment

Bank Bhd 1,168,551 15.83 3,506 16.10

KAF-Seagroatt &

Campbell Securities

Sdn Bhd 427,886 5.79 1,283 5.89

Affin Hwang

Investment Bank

Berhad 413,412 5.60 1,240 5.70

Credit Suisse


Sdn Bhd 251,909 3.41 504 2.31

JPMorgan Securities

(Malaysia) Sdn Bhd 181,046 2.45 362 1.66

Macquarie Capital


Sdn Bhd 166,508 2.26 333 1.53

7,383,832 100.00 21,779 100.00

92




are as follows:

* Included in transactions by the Fund are trades with the holding company of

the Manager, RHB Investment Bank Berhad. The Manager is of the opinion

that all transactions with the related company have been entered into in the

normal course of business at agreed terms between the related parties.

Brokers/


Value of

trades

Percentage

of total

trades

Brokerage

fees

Percentage

of total

brokerage

fees

RM % RM %

RHB Investment Bank

Bhd*

3,013,330

40.09

8,358

42.80

CIMB Investment

Bank Bhd

1,643,492

21.87

4,664

23.89

Maybank Investment

Bank Bhd

862,565

11.48

2,172

11.12

MIDF Amanah

Investment Bank Bhd

380,666

5.06

889

4.55

Affin Hwang

Investment Bank Bhd

358,141

4.77

742

3.80

Kenanga Investment

Bank Bhd

352,030

4.68

745

3.82

Alliance Investment

Bank Bhd

277,121

3.69

612

3.13

Macquarie Capital


Sdn Bhd

227,872

3.03

493

2.52

KAF-Seagroatt &

Campbell Securities

Sdn Bhd

174,691

2.32

359

1.84

Credit Suisse


Sdn Bhd

104,747

1.39

212

1.09

Others 121,331 1.62 280 1.44

7,515,986 100.00 19,526 100.00

93

15 FINANCIAL INSTRUMENTS BY CATEGORIES

31.08.2019

RHB RHB RHB


Today 2020 2030

RM

RM RM

Financial assets

Financial assets at fair value

through profit or loss (‘FVTPL’)

• Collective investment schemes - 206,800 272,400

• Quoted investments 1,586,402 1,902,780 2,900,914

• Unquoted fixed income

securities

9,230,404 2,229,190

482,472

Financial assets at amortised cost

• Deposit with licensed financial

institutions

772,630 132,032

204,282

• Bank balances 50,060 51,735 51,902

• Dividend receivable 4,440 6,621 9,427

11,643,936 4,529,158 3,921,397

Financial liabilities

Financial liabilities at

amortised cost

• Amount due to Manager 7,827 7,029 12,837

• Accrued management fee 12,310 5,698 4,960

• Amount due to Trustee 591

228 198

• Other payables and accruals 12,609 12,567 12,600

33,337 25,522 30,595

94

15 FINANCIAL INSTRUMENTS BY CATEGORIES (CONTINUED)

28.02.2019

RHB RHB RHB


Today 2020 2030

RM

RM RM

Financial assets

Financial assets at fair value

through profit or loss (‘FVTPL’)

• Quoted investments 1,715,657 2,051,115 3,270,953

• Unquoted fixed income

securities

9,207,745 2,202,953

549,097

Financial assets at amortised cost

• Deposit with licensed financial

institutions

1,044,168 410,208

389,511

• Bank balances 3,783 13,858 2,588

• Dividend receivable 144 384 1,008

11,971,497 4,678,518 4,213,157

Financial liabilities

Financial liabilities at

amortised cost

• Amount due to stockbrokers - 57,019 91,231

• Amount due to Manager - 6,078 -

• Accrued management fee 11,433 5,595 4,727

• Amount due to Trustee 549

224 189

• Other payables and accruals 13,566 13,496 13,515

25,548 82,412 109,662

95

16 SEGMENT INFORMATION

The Investment & Security Selection Committee of the Manager recommends

strategic resource allocations of the Fund to the Investment Committee of the

Manager (collectively referred to as “Committee”).

The internal reporting provided to the Committee 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 Committee considers the business

from both a geographic and investment perspective. Geographically, the Committee

considers the performance of investment in overall basis.

The reportable operating segments derive their income by seeking investments to

achieve investments objective commensurate with an acceptable level of risk within

each portfolio. These returns consist of interest, dividends and gains on the

appreciation in the value of investments which are derived from Malaysia.

There were no changes in the reportable segments during the financial period.

96

STATEMENT BY MANAGER

We, Sharifatu Laila Syed Ali and Ong Yin Suen, two of the Directors of RHB

Asset Management Sdn Bhd, do hereby state that in the opinion of the Directors

of the Manager, the accompanying unaudited statements of financial position,

unaudited statements of income and expenses, unaudited statements of changes in

net asset value, unaudited statements of cash flows and the accompanying notes,

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 the Fund as of 31 August 2019 and of its financial

performance and cash flows for the financial period then ended and comply with

the provisions of the Deeds.

On behalf of the Manager

SHARIFATU LAILA SYED ALI ONG YIN SUEN

Director Director

22 October 2019

97

TRUSTEE’S REPORT TO THE UNITHOLDERS OF


We have acted as Trustee of RHB GoldenLife Funds (“the Fund”) for the

financial period ended 31 August 2019. To the best of our knowledge, RHB Asset

Management Sdn Bhd (“the Management Company”), has operated and managed

the Fund in accordance with the following:

(a) limitations imposed on the investment powers of the Management Company

and the Trustee under the Deeds, the Securities Commission’s Guidelines on

Unit Trust Funds, the Capital Markets and Services Act 2007 and other

applicable laws;

(b) valuation/pricing is carried out in accordance with the Deeds and any

regulatory requirements; and

(c) creation and cancellation of units are carried out in accordance with the

Deeds and any regulatory requirements.

For HSBC (Malaysia) Trustee Berhad

Tan Bee Nie

Manager, Investment Compliance Monitoring

Kuala Lumpur

22 October 2019

98

CORPORATE INFORMATION

MANAGER

RHB Asset Management Sdn Bhd

REGISTERED OFFICE

Level 10, Tower One, RHB Centre, Jalan Tun Razak, 50400 Kuala Lumpur

PRINCIPAL AND BUSINESS OFFICE

Level 8, Tower Two & Three, RHB Centre, Jalan Tun Razak, 50400 Kuala Lumpur

Email address: [email protected]

Tel: 03-9205 8000

Fax: 03-9205 8100

Website: www.rhbgroup.com

BOARD OF DIRECTORS Mr Yap Chee Meng (Independent Non-Executive Chairman)

Mr Chin Yoong Kheong (Senior Independent Non-Executive Director)

Dr. Ngo Get Ping (Independent Non-Executive Director)

Puan Sharifatu Laila Syed Ali (Independent Non-Executive Chairman)

Ms Ong Yin Suen (Managing Director/Chief Executive Officer)

INVESTMENT COMMITTEE MEMBERS Mr Yap Chee Meng (Independent Chairman)

YBhg Dato’ Darawati Hussain

Puan Sharifatu Laila Syed Ali

CHIEF EXECUTIVE OFFICER Ms Ong Yin Suen

SECRETARY

Encik Azman Shah Md Yaman (LS No. 0006901)

99

BRANCH OFFICE Kuala Lumpur Office B-9-6, Megan Avenue 1

No. 189, Jalan Tun Razak

50400 Kuala Lumpur

Tel: 03-2171 2755/ 03-2166 7011

Fax: 03-2770 0022

Sri Petaling Office Level 1 & 2, No 53 Jalan Radin Tengah

Bandar Baru Seri Petaling

57000 Kuala Lumpur

Tel: 03-9054 2470 Fax: 03-9054 0934

Batu Pahat Office 53, 53-A and 53-B Jalan Sultanah

83000 Batu Pahat, Johor

Tel: 07-438 0271/ 07-438 0988

Fax: 07-438 0277

Ipoh Office No.7A, Persiaran Greentown 9,

Pusat Perdagangan Greentown,

30450 Ipoh, Perak

Tel: 05-242 4311

Fax: 05-242 4312

Johor Bahru Office No 34 Jalan Kebun Teh 1

Pusat Perdagangan Kebun Teh

80250 Johor Bahru, Johor

Tel: 07-221 0129 Fax: 07-221 0291

2nd Floor, 21 & 23

Jalan Molek 1/30, Taman Molek

81100 Johor Bahru, Johor

Tel: 07-358 3587 Fax: 07-358 3581

Kuantan Office B 32-34, 2nd Floor, Lorong Tun Ismail 8

Sri Dagangan II

25000 Kuantan, Pahang

Tel: 09-517 3611 Fax: 09-517 3612

Kuching Office Lot 133, Section 20, Sublot 2 & 3,

1st Floor, Jalan Tun Ahmad Zaidi Adruce,

93200 Kuching, Sarawak

Tel: 082-550 838 Fax: 082-550 508

100

Kuching Office Lot 172, Section 49, K.T.L.D,

Jalan Chan Chin Ann,

93100 Kuching, Sarawak

Tel: 082-245 611 Fax: 082-242 712

Kota Bharu Office Ground Floor, No 3486-G,

Jalan Sultan Ibrahim,

15050 Kota Bharu, Kelantan

Tel: 09-740 6891 Fax: 09-740 6890

Kota Kinabalu Office Lot No. C-02-04, 2nd Floor

Block C, Warisan Square

Jalan Tun Fuad Stephens,

88000 Kota Kinabalu,

Sabah

Tel: 088-528 686 Fax: 088-528 685

Melaka Office 581B, Taman Melaka Raya

75000 Melaka

Tel: 06-284 4211/ 06-281 4110

Fax: 06-292 2212

Miri Office Lot 1268 & 1269, Second Floor

Centre Point Commercial Centre

Jalan Melayu

98000 Miri, Sarawak

Tel: 085-422 788 Fax: 085- 415 243

Penang Office 3rd Floor, 44 Lebuh Pantai

10300 Georgetown, Penang

Tel: 04-264 5639 Fax: 04-264 5640

Prai Office First Floor, No. 1797-1-04,

Kompleks Auto World,

Jalan Perusahaan, Juru Interchange,

13600 Perai, Penang.

Tel: 04-506 2116/ 04-506 0216

Fax: 04-505 9996

101

TRUSTEE HSBC (Malaysia) Trustee Berhad

BANKER RHB Bank Berhad

AUDITORS PricewaterhouseCoopers PLT

TAX ADVISER PricewaterhouseCoopers Taxation Services Sdn Bhd

DISTRIBUTORS Areca Capital Sdn Bhd

CIMB Investment Bank Berhad

Genexus Advisory Sdn Bhd

Hong Leong Bank Berhad

iFast Capital Sdn Bhd

OCBC Bank (Malaysia) Berhad

Phillip Mutual Berhad

RHB Bank Berhad

RHB Investment Bank Berhad

Standard Chartered Bank (M) Berhad

Standard Financial Adviser Sdn Bhd

RHB Asset Management Unit Trust Consultants

rhb goldenlife funds interim report 2019

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