Fund Information

Fund Name
Public Ittikal Sequel Fund (PITSEQ)

Fund Type
Capital Growth

Fund Category
Equity (Shariah-compliant)

Fund Investment Objective

To achieve capital growth over the medium to long term period by investing
in a portfolio of investments that complies with Shariah principles.

Fund Performance Benchmark

The benchmark for PITSEQ is the FTSE Bursa Malaysia EMAS Shariah
Index, a free float adjusted capitalisation-weighted index comprising
constituents of the FTSE Bursa Malaysia EMAS Index, which have been
designated as Shariah-compliant securities by the Shariah Advisory
Council of the Securities Commission Malaysia.
The PITSEQ is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited
(FTSE) or by Bursa Malaysia Berhad (BURSA MALAYSIA) or by the London Stock Exchange Group
companies (the LSEG) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty
or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the
use of the FTSE BURSA MALAYSIA EMAS SHARIAH INDEX (the Index), and/or the figure at which
the said Index stands at any particular time on any particular day or otherwise. The Index is compiled
and calculated by FTSE. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable
(whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor
BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein.
FTSE, FT-SE and Footsie are trade marks of LSEG and are used by FTSE under licence.
BURSA MALAYSIA is a trade mark of BURSA MALAYSIA.

Fund Distribution Policy

Incidental

Breakdown of Unitholdings of PITSEQ as at 30 November 2016

Size of holdings No. of % of No. of units
unitholders unitholders held (million)
5,000 and below 14,205 8.34 51
5,001 to 10,000 20,572 12.08 155
10,001 to 50,000 83,609 49.07 2,157
50,001 to 500,000 50,964 29.91 6,369
500,001 and above 1,023 0.60 1,011
Total 170,373 100.00 9,743

Note: Excluding Managers Stock.

Fund Performance
Average Total Return for the Following Years Ended
30 November 2016
Average Total
Return of PITSEQ (%)
1 Year -2.54
3 Years 2.31
5 Years 7.90
Public Ittikal Sequel Fund
Fund Performance Fund Performance
For the Financial Year Ended 30 November 2016 For the Financial Year Ended 30 November 2016

Annual Total Return for the Financial Years Ended 30 November Distribution and Unit Split
Year 2016 2015 2014 2013 2012 Financial year 2016 2015 2014
PITSEQ (%) -2.54 2.83 6.70 18.29 10.40* Date of distribution 30.11.16 30.11.15 28.11.14

* The figure shown is for period since Fund commencement (31 October 2011). Distribution per unit
Gross (sen) 0.50 0.50 1.75
The calculation of the above returns is based on computation methods of Lipper. Net (sen) 0.50 0.50 1.73
Unit split - - -
Notes:
1. Total return of the Fund is derived by this formulae: Impact on NAV Arising from Distribution (Final) for the

( End of Period FYCurrent Year NAV per unit

End of Period FYPrevious Year NAV per unit )
(Adjusted for unit split and distribution paid out for the period)
-1
Financial Years
2016
Sen
2015
Sen
2014
Sen
per unit per unit per unit
The above total return of the Fund was sourced from Lipper.
Net asset value before distribution 29.16 30.42 31.39
2. Average total return is derived by this formulae: Less: Net distribution per unit (0.50) (0.50) (1.73)
Total Return Net asset value after distribution 28.66 29.92 29.66
Number of Years Under Review
Past performance is not necessarily indicative of future performance and unit
Other Performance Data for the Past Three Financial Years prices and investment returns may go down, as well as up.
Ended 30 November
Asset Allocation for the Past Three Financial Years
2016 2015 2014
As at 30 November
Unit Prices (MYR)*
(Per Cent of Net Asset Value)
Highest NAV per unit for the year 0.3075 0.3158 0.3238
Lowest NAV per unit for the year 0.2854 0.2781 0.2867 2016 2015 2014
% % %
Net Asset Value (NAV) and Units in
Circulation (UIC) as at the End of EQUITY SECURITIES
the Year Quoted
Total NAV (MYR000) 2,795,620 1,628,407 306,660 Malaysia
UIC (in 000) 9,752,903 5,442,551 1,034,024 Ordinary Shares
NAV per unit (MYR) 0.2866 0.2992 0.2966 Basic Materials 0.7 0.7 1.9
Communications 14.2 17.8 23.1
Total Return for the Year (%) -2.54 2.83 6.70
Consumer, Cyclical 1.4 2.3 4.8
Capital growth (%) -3.38 2.12 5.93
Consumer, Non-cyclical 21.8 11.9 16.1
Income (%) 0.87 0.70 0.73
Diversified 7.3 5.1 7.4
Management Expense Ratio (%) 1.54 1.59 1.61 Energy 7.9 7.1 6.8
Portfolio Turnover Ratio (time) 0.38 0.76 0.63 Financial 3.8 3.2 5.9
Industrial 8.2 12.5 9.8
* All prices quoted are ex-distribution.
Technology 0.2 0.4 -
Notes: Management Expense Ratio is calculated by taking the total management expenses Utilities 9.7 9.1 15.0
expressed as an annual percentage of the Funds average net asset value.
The Management Expense Ratio for the financial year 2016 dropped to 1.54% from 1.59% 75.2 70.1 90.8
in the previous financial year mainly due to Funds higher average net asset value.
Preference Shares
Portfolio Turnover Ratio is calculated by taking the average of the total acquisitions and
disposals of the investments in the Fund for the year over the average net asset value Financial 0.1 - -
of the Fund calculated on a daily basis.
Outside Malaysia
The Portfolio Turnover Ratio for the financial year 2016 dropped to 0.38 time from 0.76
time in the previous financial year on account of lower level of rebalancing activities
Australia
performed by the Fund during the year. Basic Materials - 0.1 -

Public Ittikal Sequel Fund Public Ittikal Sequel Fund

Fund Performance Fund Performance
For the Financial Year Ended 30 November 2016 For the Financial Year Ended 30 November 2016

Asset Allocation for the Past Three Financial Years (contd) Asset Allocation for the Past Three Financial Years (contd)
As at 30 November As at 30 November
(Per Cent of Net Asset Value) (Per Cent of Net Asset Value)
2016 2015 2014 2016 2015 2014
% % % % % %
Hong Kong COLLECTIVE INVESTMENT FUNDS
Communications 3.2 2.2 1.0 Quoted
Consumer, Cyclical - 0.5 - Malaysia
Energy 0.2 0.4 - Financial 2.8 1.5 2.4
Industrial 1.5 1.7 -
Technology 0.5 - - TOTAL QUOTED COLLECTIVE
INVESTMENT FUNDS 2.8 1.5 2.4
5.4 4.8 1.0
SHARIAH-BASED PLACEMENTS
Indonesia WITH FINANCIAL INSTITUTIONS 8.2 12.0 7.2
Communications 0.4 - -
Financial - - 0.2 OTHER ASSETS & LIABILITIES 2.2 1.7 -4.7
Utilities - - 0.4
0.4 - 0.6
Korea
Communications - 0.9 -
Consumer, Cyclical 0.5 1.3 -
0.5 2.2 -
Singapore
Communications 1.4 2.3 1.7
Consumer, Non-cyclical 0.7 1.6 -
Energy 0.1 - -
Industrial - 0.2 0.6
2.2 4.1 2.3
Taiwan
Technology 0.5 1.3 -
Thailand
Energy - 0.3 -
Industrial 0.2 - -
0.2 0.3 -
United States
Communications 1.1 1.6 -
Consumer, Non-cyclical - 0.1 -
Technology 1.2 0.2 0.4
2.3 1.9 0.4
TOTAL QUOTED EQUITY
SECURITIES 86.8 84.8 95.1

Public Ittikal Sequel Fund Public Ittikal Sequel Fund

Statement Of Distribution Of Returns Managers Report
For the Financial Year Ended 30 November 2016

Sen Per Unit Overview

Gross Distribution 0.5000 This Annual Report covers the financial year from 1 December 2015 to
Net Distribution 0.5000 30 November 2016.
Total Returns -0.7600
Public Ittikal Sequel Fund (PITSEQ or the Fund) seeks to achieve capital
Effects of Distribution on NAV per unit before and after growth over the medium to long term period by investing in a portfolio of
Distribution: investments that complies with Shariah principles.
Before After For the financial year under review, the Fund registered a return of -2.54% as
Distribution Distribution compared to its Benchmarks return of -4.84%. The Funds Shariah-compliant
equity portfolio registered a return of -1.21% while its Islamic money market
NAV per unit (MYR) 0.2916 0.2866
portfolio registered a return of +3.14% during the financial year under review.
A detailed performance attribution analysis is provided in the sections below.
For the five financial years ended 30 November 2016, the Fund generated a
total return of +39.53% and outperformed the Benchmarks return of +20.85%
over the same period. Consequently, it is the opinion of the Manager that the
Fund has met its objective to achieve capital growth over the said period.

Performance of PITSEQ
from 30 November 2011 to 30 November 2016
60%

PITSEQ FBMS

45%

Returns from Start of Period

30%

15%

0%

-15%
2011 2012 2013 2014 2015 2016

The FTSE Bursa Malaysia EMAS Shariah Index (FBMS) is the selected
Benchmark for PITSEQ as it is a free float adjusted capitalisation-weighted
index which comprises constituents of the FTSE Bursa Malaysia EMAS Index,
which have been designated as Shariah-compliant securities by the Shariah
Advisory Council of the Securities Commission Malaysia.

Income Distribution and Impact on NAV Arising from Distribution

The gross distribution of 0.50 sen per unit (net distribution 0.50 sen per unit)
for the financial year ended 30 November 2016 had the effect of reducing the
Net Asset Value (NAV) of the Fund after distribution. As a result, the NAV per
unit of the Fund was reduced to RM0.2866 from RM0.2916 after distribution.

Public Ittikal Sequel Fund Public Ittikal Sequel Fund

Managers Report Managers Report

Effect of Distribution Reinvestment on Portfolio Exposures The Fund commenced the financial year under review with a Shariah-
compliant equity exposure of 84.9% and its Shariah-compliant equity
30-Nov-16 exposure was increased to above 90% in December 2015 to capitalise on
Before Distribution After Distribution Shariah-compliant investment opportunities in the domestic and regional
Reinvestment* Reinvestment* markets. The Funds Shariah-compliant equity weight was reduced to below
Shariah-compliant Equities 89.6% 88.1% 85% in April 2016 to weather the consolidation phase in the domestic and
Islamic Money Market 10.4% 11.9% regional markets. The Fund subsequently increase its Shariah-compliant
equity weight and ended the financial year under review with a Shariah-
* Assumes full reinvestment. compliant equity exposure of 88.1%. Based on an average Shariah-compliant
equity exposure of 88.11%, the Shariah-compliant equity portfolio is deemed
Change in Portfolio Exposures from 30-Nov-15 to 30-Nov-16 to have registered a return of -1.06% to the Fund as a whole for the financial
Average year under review. A full review of the performance of the equity markets is
30-Nov-15 30-Nov-16 Change Exposure tabled in the following sections.

Shariah-compliant Equities 84.9% 88.1% +3.2% 88.11% Sector Allocations

Islamic Money Market 15.1% 11.9% -3.2% 11.89% In terms of sector allocation within the Shariah-compliant equity portfolio,
the top 5 sectors accounted for 61.8% of the NAV of the Fund and 69.0% of
Returns Breakdown by Asset Class the Funds Shariah-compliant equity portfolio. The weightings of the top 5
Market / sectors in Malaysia (unless otherwise indicated) are in the following order:
Returns On Benchmark Benchmark Average Attributed Consumer, Non-cyclical (21.8%), Communications (14.2%), Utilities (9.7%),
Investments Returns Index Used Exposure Returns Industrial (8.2%) and Energy (7.9%).

Shariah- Islamic Money Market Portfolio Review

compliant
Equities -1.21% -4.84% FBMS 88.11% -1.06% During the financial year under review, the Funds Islamic money market
Islamic Money portfolio, which was invested primarily in Islamic deposits, yielded a return of
Market 3.14% 3.53% 1M-IIMMR 11.89% 0.37% +3.14%. In comparison, the 1-Month Islamic Interbank Money Market Rate
(1M-IIMMR) registered a return of +3.53% over the same period.
less:
Expenses -1.85% During the financial year under review, the Funds exposure to Islamic money
market investments decreased from 15.1% to 11.9% as funds were mobilised
Total Net into Shariah-compliant equity investments. Based on an average exposure of
Return for 11.89%, the Islamic money market portfolio is estimated to have contributed
the Year -2.54% +0.37% to the Funds overall returns for the financial year under review.
FBMS = FTSE Bursa Malaysia EMAS Shariah Index
Stock Market Review
1M-IIMMR = 1-Month Islamic Interbank Money Market Rate
Commencing the financial year under review at 12,506.87 points, the FTSE
Shariah-compliant Equity Portfolio Review Bursa Malaysia EMAS Shariah (FBMS) Index rebounded in late December
2015 in tandem with global equity markets. However, the Index retraced
For the financial year under review, the Funds Shariah-compliant equity
to a 4-month low of 12,105.60 points in mid-January 2016 following the
portfolio registered a return of -1.21% as compared to the equity Benchmarks
retracement in regional and global markets as well as lower crude oil prices,
return of -4.84%. The Funds Shariah-compliant equity portfolio outperformed
which fell below US$40/barrel. The revised 2016 budget announcement
the Benchmark as its investments in Energy and Communications sectors
on 28 January coupled with reduced volume of foreign selling in February
outperformed the broader market over the financial year under review.
2016 helped to lift market sentiment. The FBMS Index continued its uptrend
in March 2016 in tandem with higher regional markets and firmer global
sentiment.
Following declines in the regional markets, the FBMS Index retraced towards
late April 2016 and continued to be sold down in May 2016 due to weaker-
than-expected corporate earnings for the first quarter of 2016. The Index was
further dampened by uncertainties arising from the Brexit vote in June 2016.

Public Ittikal Sequel Fund Public Ittikal Sequel Fund

Managers Report
Subsequently, the FBMS Index rose in July 2016 amid buoyant global markets
and the unexpected move by Bank Negara Malaysia (BNM) to reduce the
Overnight Policy Rate (OPR) by 25 basis points (bps). The Index continued to
rise in August 2016 amid higher oil prices and firmer regional markets to touch
a high of 12,596.80 points in mid-August. The Index subsequently eased on
the back of lacklustre global sentiment and weak corporate earnings for the
second quarter of 2016. Profit-taking activities continued in September 2016
and the market remained in a tight trading range in October 2016. Investor
sentiment turned cautious ahead of the U.S. presidential election in November
2016. Despite the initial concerns over a Trump presidency, Donald Trumps
victory sent the U.S. market to a rally on expectations that the president-elect
will deliver on his pledges of fiscal stimulus and deregulations of the financial
market. For the Malaysia market, foreign fund outflow continued in November
2016 amid anticipation of a rising interest rate environment in the U.S. going
forward. The FBMS Index closed at 11,901.19 points and registered a decline
of 4.84% for the financial year under review.
FTSE Bursa Malaysia EMAS Shariah Index
(30 November 2015 - 30 November 2016)
13,000
12,750
12,500
Index
12,250
12,000
11,750
11,500
Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16
The regional equity markets, as proxied by the S&P Shariah BMI Asia Ex-
Japan (S&P SAEJ) Index, commenced the financial year under review at
82.51 points. The S&P SAEJ Index eased in December 2015 following a
hike in U.S. interest rates on the back of stronger-than-expected U.S. job
market data.
The Index continued to retrace until mid-January 2016 in tandem with lower
oil prices. The S&P SAEJ Index subsequently rebounded in February and
March 2016 on the back of the European Central Bank (ECB)s rate cut
and expectations that the increase in U.S. interest rates would be delayed.
The Index traded range-bound in April and May 2016 as the U.S. Federal
Reserves decision to keep interest rates unchanged was within market
expectations.
The S&P SAEJ Index rallied in the third quarter of 2016 on improving
economic momentum in China and expectations of further delays in U.S.
interest rate hikes. Regional markets retraced marginally in October 2016
on concerns over the Chinese Renminbi weakness. The unexpected result
of the U.S. Presidential Election led to further consolidation in most regional
markets as funds flowed back to developed markets. The S&P SAEJ Index
closed at 84.59 points to register an increase of 2.52% (+7.38% in Ringgit
terms) for the financial year under review.
Public Ittikal Sequel Fund
Managers Report
Regional markets, namely the Taiwan, Indonesia, Australia, Thailand,
Singapore, Hong Kong and Korea markets registered returns of +21.03%,
+20.47%, +16.00%, +13.13%, +2.49%, +2.40% and -8.11% (in Ringgit terms)
respectively for the financial year under review.
Commencing the financial year under review at 156.78 points, the U.S. equity
market, as proxied by the S&P U.S. Shariah Index, traded range-bound in
December 2015 following a hike in U.S. interest rates in nearly a decade. The
Index declined sharply in January 2016 in tandem with the overall decline in
global markets on renewed concerns over Chinas slowing economic growth
and sustained low oil prices.
The Index traded range-bound in February 2016 despite additional stimulus
measures undertaken by the Chinese government to alleviate a slowdown
in the economy. The Index remained flat in March and April 2016 as weak
first-quarter corporate earnings did little to improve sentiment. In June 2016,
the Index traded range-bound as the U.S. Federal Reserves decision to
keep interest rates unchanged was within market expectations. The Index
subsequently advanced in July 2016 amid expectations of further delay in
Federal funds rate hikes and more loosening policies by central banks around
the world due to concerns over a slowing global economy.
The S&P U.S. Shariah Index traded range-bound through August 2016 but
declined ahead of two key central bank meetings in the U.S. and Japan
in September 2016. Despite a more hawkish statement from the Federal
Open Market Committee (FOMC) meeting, the U.S. Federal Reserve again
opted to keep interest rate hikes on hold. This resulted in a mild rebound in
the U.S. market led by interest rate-sensitive sectors such as utilities and
telecommunication services.
The Index eased in mid-October 2016 following lacklustre corporate results
but remained flat through the end of the month amid mixed economic data.
The Index subsequently rose in November 2016 as the market rallied
following Donald Trumps presidential victory, bolstered by his pledges of
increased fiscal stimulus and deregulations. The S&P U.S. Shariah Index
closed at 162.25 points in November 2016 to register an increase of 3.49%
(+8.64% in Ringgit terms) for the financial year under review.
Islamic Money Market Review
The 1M-IIMMR eased from 3.58% to 3.49%, averaging at 3.52% during the
financial year under review following the 25 bps cut in OPR.
Economic Review
Malaysias GDP growth moderated from 5.0% in 2015 to 4.2% in the first three
quarters of 2016 on the back of slower investment spending and exports.
Growth in the services sector rose from 5.1% in 2015 to 5.6% in the first
three quarters of 2016. Meanwhile, the pace of construction sector activities
was sustained at 8.2% over the same period.
Public Ittikal Sequel Fund
Managers Report Managers Report

Malaysias Annual GDP Growth
7.0
6.0
6.0 5.5
5.3
5.0
5.0 4.7
4.1 4.2
4.0
% On the international front, U.S. GDP growth eased from 2.6% in 2015 to 1.5%
3.0
2.0
1.0
0.0
2011 2012 2013 2014 2015 2016F 2017F
Source: Bloomberg
Following a growth of 1.6% in 2015, Malaysias export growth moderated to
0.5% in the first nine months of 2016 mainly due to slower exports of electrical
and electronic products. Import growth rose to 0.7% in the first nine months
of 2016 from 0.4% in 2015. Malaysias cumulative trade surplus narrowed to
RM59.8 billion in the first nine months of 2016 compared to RM60.9 billion
in the same period last year. Due to capital inflows, Malaysias foreign
reserves increased to US$97.8 billion as at end of October 2016 compared
to US$94.0 billion a year ago.
Malaysias inflation rate was sustained at 2.1% in the first ten months of 2016
compared to a similar rate in 2015 as firmer food prices were offset by lower
transportation costs. BNM reduced the OPR by 25 bps to 3.00% in July 2016
for the first time in seven years, on concerns that uncertainties in the global
environment could dampen Malaysias growth. Loans growth moderated to
5.7% in the first ten months of 2016 from 9.0% in 2015 on lower demand
from the household sector.
Due to lower revenue and increased government spending, the Federal
governments budget deficit in the first three quarters of 2016 rose to
RM34.5 billion (3.8% of GDP) from RM20.3 billion (2.4% of GDP) in the first
three quarters of 2015. The budget deficit in the first three quarters of 2016
has exceeded the 2016 target of 3.1% of GDP projected by the Ministry of
Finance (MOF).
On the regional front, Singapores GDP growth eased from 2.0% in 2015
to 1.7% in the first three quarters of 2016 amid slower growth in services
activities. Indonesias economic growth inched up from 4.8% in 2015 to
5.0% in the first three quarters of 2016 on the back of resilient consumer
spending. Meanwhile, Thailands GDP growth gained pace from 2.8% in 2015
to 3.3% in the first three quarters of 2016 amid higher consumer spending
and export growth.
In North Asia, Chinas GDP growth slowed from 6.9% in 2015 to 6.7% in the
first three quarters of 2016 amid a moderation in the services sector. Hong
Kongs GDP growth moderated from 2.4% in 2015 to 1.4% in the first three
quarters of 2016 due to lower consumer and investment spending.
South Koreas GDP growth rose from 2.6% in 2015 to 2.9% in the first three
quarters of 2016 on the back of higher domestic demand. Taiwans GDP
growth increased from 0.7% in 2015 to 1.0% in the first three quarters of
2016 amid higher public spending and export growth.
Australias GDP growth accelerated from 2.4% in 2015 to 3.1% in 1H 2016
due to higher consumer spending and export growth.
in the first three quarters of 2016 amid slower consumer and investment
spending. Consumer spending growth moderated from 3.2% to 2.6% over
the same period. Meanwhile, investment spending contracted by 2.2% in
the first three quarters of 2016 compared to a growth of 5.0% in 2015 due
to lower investment in the industrial sector.
At the FOMC meeting in mid-December 2015, the U.S. Federal Reserve
raised the Federal funds rate for the first time in nearly a decade to a target
range of 0.25%-0.50% from 0.00%-0.25% previously. At the FOMC meeting in
November 2016, the Federal Reserve kept the Federal funds rate unchanged
at a range of 0.25%-0.50%. Based on the FOMC participants projections,
the Federal funds rate may be raised by 25 bps before the end of the year.
The Eurozones GDP growth eased from 1.9% in 2015 to 1.7% in the first
three quarters of 2016 amid slower export growth. At its monetary policy
meeting held on 10 March 2016, the ECB reduced its main refinancing rate
by 5 bps to 0.00% while the deposit rate was reduced by 10 bps to -0.40%.
The ECB also increased the pace of its asset-buying program from 60 billion
to 80 billion with effect from April 2016 to improve the regions economic
recovery and combat deflation.
In a referendum held on 23 June 2016, British voters voted in favour of exiting
the European Union (EU). Upon the United Kingdom (U.K.) governments
formal notification of an exit from the EU, the U.K. has a two-year period to
negotiate new trade treaties with the EU.
Outlook and Investment Strategy
After closing on a mixed note in 2015, global and regional equity markets
generally trended lower in the first two months of 2016 amid continued
concerns over the global economic outlook for 2016, continued weakness
in Chinese manufacturing output and the Yuans depreciation. Global and
regional markets rebounded in March 2016 amid firmer energy prices but
subsequently traded on a mixed note in 2Q 2016 on the back of renewed
global economic concerns and the potential impact of Brexit on the European
economy.
Global and regional markets generally closed higher in 3Q 2016 amid
expectations of fresh monetary and fiscal easing around the world following
the Brexit outcome. However, renewed concerns over the timing of the
Federal funds rate hikes weighed on global markets in October 2016.
Following the U.S. election on 8 November 2016, global markets generally
trended higher on optimism that the U.S. economy will benefit from the fiscal
stimulus policies of the new U.S. administration.
Looking ahead, the performance of equity markets will depend on the
economic growth momentum in the U.S., Europe and Asia Pacific region.

Public Ittikal Sequel Fund Public Ittikal Sequel Fund

Managers Report Managers Report

U.S. economic growth is projected to gain pace from 1.6% in 2016 to 2.2% At the end of the financial year under review, South-East Asian markets were
in 2017 amid a recovery in investment spending. generally trading at a premium while North Asian markets were generally
trading at a discount to their historical averages following their respective
In the Eurozone, economic growth is envisaged to ease from 1.6% in 2016
performances over the same period.
to 1.3% in 2017 amid the potential impact of Brexit on various Eurozone
economies. Given the above factors, the Fund will continue to rebalance its investment
portfolio accordingly with the objective of achieving capital growth over the
Australias economic growth is expected to edge down from 2.9% in 2016 to
medium to long term period by investing in a portfolio of investments that
2.8% in 2017 as public spending and exports are projected to grow at a slower
complies with Shariah principles.
pace. The financial and insurance services sector should maintain its current
growth trajectory as low interest rates continue to underpin housing demand. Notes: Q = Quarter
In North Asia, Chinas GDP growth is estimated to ease from 6.7% in 2016 H = Half
to 6.4% in 2017 as economic growth continues to moderate. Meanwhile,
Policy on Soft Commissions
Chinas inflation rate is projected to inch up from 2.0% in 2016 to 2.1% in
2017 due to higher food prices. The Chinese central bank has the flexibility The management company may receive goods or services which include
to further cut the one-year lending rate to support domestic demand. In research materials, data and quotation services and investment related
addition, the Chinese government may unveil more stimulus measures such publications by way of soft commissions provided they are of demonstrable
as further fiscal spending in the event the economy grows at a weaker-than- benefit to the Fund and unitholders.
expected pace.
During the financial year under review, PITSEQ has received data and
Hong Kongs GDP growth is projected to gain pace from 1.3% in 2016 to quotation services by way of soft commissions. These services were used
1.7% in 2017 amid a moderate firming of domestic demand. Going forward, to provide financial data on securities and price quotation information to the
the Hong Kong government is anticipated to maintain its existing tightening Fund Manager during the financial year under review.
stance on the residential property market. However, ample liquidity, demand
for better living standards and resilient economic growth will lend support to
Hong Kongs property market over the long term.
South Koreas GDP growth is envisaged to ease from 2.7% in 2016 to 2.6%
in 2017 due to slower domestic demand. Meanwhile, Taiwans GDP growth
is projected to strengthen from 1.0% in 2016 to 1.8% in 2017 as exports and
investment spending are envisaged to recover.
In South-East Asia, Singapores GDP growth is projected to firm from 1.6%
in 2016 to 1.9% in 2017 as fiscal spending and corporate tax rebates should
lend support to domestic demand. Indonesias GDP growth is expected to
expand from 5.0% in 2016 to 5.3% in 2017 amid sustained growth in domestic
demand. Meanwhile, Thailands GDP growth is envisaged to inch up from
3.1% in 2016 to 3.2% in 2017 on the back of stable domestic demand.
Malaysias GDP growth is expected to edge up from 4.1% in 2016 to 4.2%
in 2017 amid an anticipated strengthening of domestic demand. This will be
supported by sustained consumer and investment spending amid government
measures to increase disposable incomes and the ongoing implementation
of infrastructure projects.
The budget deficit is projected to widen to RM40.3 billion (3.0% of GDP) in
2017 from RM38.7 billion (3.1% of GDP) estimated for 2016 with revenue
expanding by 3.4% to RM219.7 billion. Meanwhile, operating expenditure and
net development expenditure will see a growth of 3.7% to RM214.8 billion
and 2.4% to RM45.3 billion in 2017 respectively.
At the end of November 2016, the local stock market was trading at a
prospective P/E ratio of 16.3x, which is above its 10-year average P/E ratio
of 15.9x. The markets dividend yield of 3.18% is above the 12-Month fixed
deposit rate of 3.11%.

Public Ittikal Sequel Fund Public Ittikal Sequel Fund

Statement Of Assets And Liabilities Statement Of Income And Expenditure
As at 30 November 2016 For the Financial Year Ended 30 November 2016

2016 2015 2016 2015

MYR000 MYR000 MYR000 MYR000
Assets Income
Investments 2,504,890 1,405,506 Profit from Shariah-based placements 6,710 3,864
Due from the Manager, net 16,890 42,203 Dividend income 53,347 22,324
Tax recoverable - 27 Dividend income from non-permissible
Other receivables 7,591 2,188 securities 118 -
Shariah-based placements with Net (loss)/gain from investments (78,198) 68
financial institutions 228,893 195,932 Net realised gain on sale of
Cash at banks 103,861 43,628 non-permissible securities 14 377
Net realised/unrealised foreign
2,862,125 1,689,484 exchange gain 7,122 2,896
Liabilities Non-permissible income 1,377 -
Due to brokers/financial institutions, net 17,512 33,625
Due to the Trustee - 82 (9,510) 29,529
Other payables 229 157 Less: Expenses
Distribution payable 48,764 27,213 Trustees fee 636 548
Management fee 36,143 13,681
66,505 61,077 Audit fee 7 7
Total net assets 2,795,620 1,628,407 Tax agents fee 3 3
Brokerage fee 5,009 3,931
Net asset value (NAV) attributable Administrative fees and expenses 411 236
to unitholders (Total equity) 2,795,620 1,628,407 Payment to charitable bodies 14 377
Units in circulation (in 000) 9,752,903 5,442,551 42,223 18,783

NAV per unit, ex-distribution (in sen) 28.66 29.92 Net (loss)/income before taxation (51,733) 10,746
Taxation (390) (464)
Net (loss)/income after taxation (52,123) 10,282
Net (loss)/income after taxation is
made up as follows:
Realised 41,390 12,539
Unrealised (93,513) (2,257)
(52,123) 10,282

Final distribution for the financial year 48,764 27,213

Public Ittikal Sequel Fund Public Ittikal Sequel Fund

Statement Of Changes In Net Asset Value Statement Of Cash Flows
For the Financial Year Ended 30 November 2016 For the Financial Year Ended 30 November 2016

Retained 2016 2015

earnings / MYR000 MYR000
Unitholders (accumulated Cash flows from operating activities
capital loss) Total Proceeds from sale of investments 265,349 101,553
MYR000 MYR000 MYR000 Purchase of investments (1,459,983) (1,189,719)
Subscription of rights (3,947) -
As at 1 December 2014 296,166 10,494 306,660 Maturity of Shariah-based placements 53,635,221 29,474,583
Creation of units 1,339,987 - 1,339,987 Shariah-based placements (53,668,182) (29,648,419)
Cancellation of units (1,309) - (1,309) Profit from Shariah-based placements
Net income after taxation - 10,282 10,282 received 6,709 3,853
Distribution (16,421) (10,792) (27,213) Net dividend income received 47,667 20,186
As at 30 November 2015 1,618,423 9,984 1,628,407 Interest received from foreign currency
accounts 4 1
Non-permissible income received 1,377 -
Trustees fee paid (718) (482)
As at 1 December 2015 1,618,423 9,984 1,628,407 Management fee paid (34,547) (12,013)
Creation of units 1,268,100 - 1,268,100 Audit fee paid (7) (7)
Net loss after taxation - (52,123) (52,123) Tax agents fee paid (3) (5)
Distribution (14,295) (34,469) (48,764) Taxation recovered 57 -
As at 30 November 2016 2,872,228 (76,608) 2,795,620 Payment of other fees and expenses (338) (189)
Payment to charitable bodies (18) (378)
Net cash outflow from operating
activities (1,211,359) (1,251,036)
Cash flows from financing activities
Cash proceeds from units created 1,291,817 1,301,437
Cash paid on units cancelled - (1,309)
Distribution paid (27,213) (17,898)
Net cash inflow from financing
activities 1,264,604 1,282,230
Net increase in cash and cash
equivalents 53,245 31,194
Effect of change in foreign exchange
rates 6,988 1,501
Cash and cash equivalents at the
beginning of the financial year 43,628 10,933
Cash and cash equivalents at the
end of the financial year 103,861 43,628

Public Ittikal Sequel Fund Public Ittikal Sequel Fund