CONTENTS · It is my pleasure to present the Annual Report of Syarikat Takaful Malaysia Berhad’s Investment-Linked Funds (ILP Funds) for the financial year ended 31 December 2015

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CONTENTS

Page

GROUP MANAGING DIRECTOR’S STATEMENT

3

FUND PROFILE

4

GLOBAL AND LOCAL ECONOMIC REVIEW

8

EQUITY AND FIXED INCOME MARKET REVIEW

10

MARKET OUTLOOK AND INVESTMENT STRATEGY

12

FUND PERFORMANCE REPORT

14

SOFT COMMISSION RECEIVED FROM BROKERS

28

STATEMENT BY DIRECTORS

29

REPORT OF THE AUDITORS

30

STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2015

32


33

STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2015

34

STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL PERIOD ENDED 31 DECEMBER 2014

35

STATEMENTS OF CHANGES IN NET ASSET VALUE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2015

36

STATEMENTS OF CHANGES IN NET ASSET VALUE FOR FINANCIAL PERIOD ENDED 31 DECEMBER 2014

36

CASH FLOW STATEMENT FOR FINANCIAL YEAR ENDED 31 DECEMBER 2015

37


38

NOTES TO THE FINANCIAL STATEMENTS

39

DETAILS OF INVESTMENTS

43

COMPARATIVE PERFORMANCE TABLE

57

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GROUP MANAGING DIRECTOR’S STATEMENT

It is my pleasure to present the Annual Report of Syarikat Takaful Malaysia Berhad’s Investment-Linked Funds (ILP

Funds) for the financial year ended 31 December 2015.

2015 was a challenging year for the domestic market arising from a confluence of various internal and external factors.

The slowing down of the world’s second largest economy, i.e. China was the first indicator followed by the capital

outflows from the emerging markets in anticipation of rate hikes in the US. Declining commodity prices, the weakening

of the ringgit (-18.5% year-on-year) and the increasing inflation due to GST implementation in April 2015 put a damper

on consumer spending.

As at 31st December 2015, the FBM KLCI Index closed at 1,692.51 points which translated to a loss of 3.9% year-on-

year while our benchmark, FBMEmas Shariah Index ended the year 2015 with a gain of 2.35% year-on-year.

Regionally, the Malaysian market was at par with Philippines (-3.9%) but did not fare well as the Vietnam (+6.1%) and

Korean (+2.4%) markets. Malaysia however performed better than markets such as India (-5.0%), Hong Kong (-7.2%)

and Taiwan (-10.4%). China (-19.4%), Singapore (-14.3%) and Thailand (-14.0%) were the bottom 3 performers. Over

in the US, the Dow Jones was down by 2.2% during the similar period.

Amidst the challenging market conditions and the economic uncertainties impeding the country, be it political, economic

or the stock market, I am pleased to report that we have recorded a constantly stable and healthy return on investment

to our valued customers. We exercised prudent investment strategies in ensuring the long-term objectives of our

customers’ funds are met while managing the investment risk and return efficiently.

For the year 2015, most of our funds continued to register encouraging performance led by Istiqrar fund with a return of

3.50% against its benchmark performance of 3.07%, followed by our index tracker fund myEquity fund with a registered

return of 2.82%, outperforming its benchmark return of 2.35%. Similarly, our myBlueChips Fund also gained about

2.43%, outperforming its benchmark return of 2.35% during the same period under review. You may find out more

about the funds’ information and financial performance in the following pages.

Year 2016 started on a positive note for the country following the recalibration of Government Budget 2016 which was

announced on 28th January 2016 factoring in a more realistic USD30-35/bbl average crude oil price assumption. The

revised budget would give a level of certainty in the market with a total of 11 added measures introduced not only to

boost the economy but also to provide some catalyst to uplift the market. As the market is expected to remain

challenging for the year 2016 due to a slower economic growth and uncertain external environment, rest assured that

we will continue to be prudent and vigilant in outlining our investment strategies for the funds, taking into account of the

prevailing market conditions so as to ensure that the objectives of the funds and the target returns are achieved.

On behalf of the Company, I would like to express our utmost appreciation and gratitude for the confidence you have

shown in Takaful Malaysia and for your continuous support. We will continue to strive and work hard to serve you better

and achieve our vision to be the preferred choice for insurance.

Dato’ Sri Mohamed Hassan Kamil Group Managing Director

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FUND PROFILE

ITTIZAN

Investment Objective

To achieve reasonable returns and capital growth opportunities via selected investments in Shariah approved shares listed in Bursa Malaysia and Shariah-compliant Islamic debt securities/Sukuk.

Investment Strategy

Invest in a balanced asset allocation comprising of Shariah-compliant equity and Islamic debt securities/Sukuk and money market.

Asset Allocation

At least 30% and a maximum of 70% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission;

The balance in cash, long and short term Islamic debt securities/Sukuk and other liquid Islamic investments.

Performance Benchmark

70% FBM Emas Shariah Index (“FBMSI”) and 30% one-month return Maybank General Investment Account rate (“GIA”).

ISTIQRAR


To achieve a relatively stable pattern of investment returns over medium term through selected investments in Shariah approved shares listed in Bursa Malaysia and Shariah-compliant fixed income securities/Sukuk.

Investment Strategy

Invest in a balanced asset allocation comprising mainly of Islamic debt securities/Sukuk with smaller exposure in Shariah-compliant equity.

Asset Allocation

A maximum of 35% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission;

At least 65% and a maximum 100% in cash, long and short term Islamic debt securities/Sukuk and other liquid Islamic investments.


30% FBM Emas Shariah Index (“FBMSI”) and 70% one-month return at Maybank General Investment Account rate (“GIA”).

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myEQUITY INDEX FUND


To achieve returns that tracks the performance of the FBM Emas Shariah Index.

Investment Strategy

Invest mainly in the top 40 of the Index component stocks; closely tracking the movement of the Benchmark in the medium to long term;

Constant rebalancing of the component stocks to closely track the benchmark performance.

Asset Allocation

90% - 95% in Malaysian shares approved by the Shariah Advisory Council of the Securities Commission;

The balance in Islamic money market instruments.


FBM Emas Shariah Index (“FBMSI”).

myGROWTH FUND


To achieve capital growth opportunities and dividend income through selective investments in Shariah approved shares listed in Bursa Malaysia.

Investment Strategy

Invest primarily in selected Shariah-compliant equities that comprise of a diversified portfolio of index-linked companies, blue-chip stocks and companies with growth prospects and attractive dividend yields that are listed on Bursa Malaysia;

Active portfolio management – constant review on asset allocation and stocks holding. Stock / portfolio turnover would be practically high in search for opportunities in capital gain and dividend yield stocks.

Asset Allocation


The balance in cash, long and short term Islamic debt securities/Sukuk and other liquid Islamic investments.



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myBLUE CHIPS FUND


To achieve consistent capital growth in the long run through investments in Shariah-compliant Blue Chips Shares.

Investment Strategy

Invest primarily in Shariah-compliant equities with higher market capitalisation to achieve long term capital growth;

Active portfolio management - constant review on asset allocation and stock holding in search of stocks that meet the objective of the Fund.

Asset Allocation





myDIVIDEND FUND


To achieve dividend income in the long term through selective investments in high dividend yield shares that provide a minimum annual gross dividend of 4.00%.

To achieve capital growth through selective investments in Blue Chips Shares that could potentially provide capital growth in the long run.

Investment Strategy

Invest primarily in dividend yield stocks that provide a minimum annual gross dividend of 4.00% as well as blue-chip stocks that could potentially grow in the long run;

At all times, exposure in stocks that yield a minimum of 4% annual gross dividend shall be at least 50% of the equity exposure;

Constant review on asset allocation and stock holding in search of stocks that comply with the objectives of the Fund.

Asset Allocation


At least 50% of the equity exposure is in dividend yield shares;




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myBALANCED FUND


To achieve moderate streams of income and consistent capital growth over the medium-to-long term period by investing in a diversified portfolio of investments;

To construct a diversified portfolio containing a balanced mixture of equities and fixed income securities.

Investment Strategy

Invest in a balanced asset allocation comprising of Shariah-compliant equity, Islamic debt securities/Sukuk and money market.

Asset Allocation


At least 10% and a maximum of 60% in Islamic debt securities/Sukuk and Malaysian Government Investment Issues;



40% FBM Emas Shariah Index (“FBMSI”) and 60% 12 months return Maybank General Investment Account rate (“GIA”).

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GLOBAL AND LOCAL ECONOMIC REVIEW

Economic Review This annual report is for the financial year of 1 January 2015 to 31 December 2015.

US GDP increased 2.0% in the 3Q 2015, according to the “third” estimate released by the Bureau of Economic

Analysis. The growth rate was revised down 0.1 percentage point from the “second” estimate released in

November. In the 2Q 2015, real GDP increased 3.9%. The third-quarter increase in real GDP mainly reflected a

rise in consumer spending. Business investment, state and local government spending, residential investment,

and exports also contributed to the increase. The pace of economic growth suggests a resilience that could help

give the US Federal Reserve (the Fed) confidence to raise interest rates going forward.

In December, US Federal Reserve decided to increase the interest rate by 25 basis points, leading to a 0.50%

level for its federal fund rate. Currently the Fed is expecting US interest rate level to end year-end 2016 at 1.50%,

and for the economy to grow by 2.4%, unemployment rate to reach 4.7% and for core PCE inflation to surge to

1.6%.

The Eurozone’s economy slipped in the third quarter as the slowdown in China and other emerging markets more

than offset the benefit to consumers from low oil prices. GDP among the Eurozone’s 19 members rose by 0.3% in

the 3Q 2015, down from 0.4% in the 2Q 2015.

China economy grew by 6.8% y-o-y in 4Q15, leading to an overall economic growth of 6.9% for year 2015, which

is in line with economist consensus in Bloomberg. The government’s statistics bureau said that for the first time

services accounted for more than half of the economy, climbing to 50.5% from 48.1% the year before. Meanwhile,

manufacturing’s share shed more than two percentage points, falling to 40.5%.

China is adopting a new exchange rate policy where it will be based on a new-trade weighted Yuan exchange

rate index. Due to the inclusion of Yuan in the SDR currency basket by IMF in December, China is currently able

to deviate its currency further from USD without risking massive capital outflow from the country, hence improving

its export competitiveness.

Crude oil prices dropped below $40 a barrel at the end of 2015. The decline in oil price was contributed by both

demand and supply side factors. From the demand side the causes are; i) economic slowdown of emerging

markets particularly due to China’s slowdown, and ii) this year’s El Nino – which is said to be strongest on record,

would lead to a warm winter next year. While from the supply side; i) OPEC is increasing its production to 31.9m

b/d, compared to its own symbolic quota of 30m b/d, and ii) UN is lifting economic sanctions on Iran.

Malaysia’s real GDP growth slowed from 5.3% y-o-y in 1H15 to 4.7% in 3Q15, and economic growth looks likely

to remain flat in 4Q15, due mainly to the domestic demand-led slowdown. Growth in domestic demand slowed

from 4.6% y-o-y in 2Q15 to 4% in 3Q15, with private consumption deteriorating from 6.4% y-o-y in 2Q15 to 4.1%

in 3Q15, as households may have continued to cut back on purchases, following the sharp depreciation of

Ringgit, which have impacted on consumer sentiments. This was in tandem with the MIER’s Consumer Sentiment

Index, which fell further from 71.7 in 2Q15 to 70.2 in 3Q15, the lowest level on record. Growth in public

consumption also slowed from 6.8% y-o-y in 2Q15 to 3.5% in 3Q15, due to lower government operating

expenditures in both emoluments and supplies and services.

However, growth in real exports turned around from -3.7% y-o-y in 2Q15 to 3.2% in 3Q15, posting a positive

growth after declining for two straight quarters since 1Q15, due to the impact of ringgit depreciation on export

value, especially in manufactured goods. Growth in gross exports accelerated significantly from 5.5% y-o-y in

3Q15 to 16.7% in October, the highest pace of growth since April 2014, and was led by higher growth in the

exports of manufactured goods at 22.2% (mainly in E&E products), which offset the 7.6% decline in commodity-

related products as commodity prices remained soft.

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December saw Malaysia recorded higher inflation year-on-year figure than the previous month at 2.68% due to

higher prices of alcoholic beverages & tobacco as well as food. The December figure put the 2015 yearly inflation

figure at 2.10%. Public rail transports saw record inflation figure at 48.3% yoy due to fare hikes in December but

impact to the overall headline inflation was marginal.

On 28 January 2016, the Government has announced a ‘2016 Budget Recalibration’ in view of the ‘challenging

economic realities’. The revised budget takes into calculation of the oil price at USD30-35/bbl Brent average, from

USD48/bbl as initially tabled in October 2015. Some of the main economic highlights were: (i) 2016 real GDP

growth range revised to 4-4.5% (from 4-5%); (ii) 2016 fiscal deficit target unchanged at 3.1% of GDP; (iii) the

national debt level will continue to be reduced and will not exceed the prudent level of 55% to GDP; (iv) no capital

control or pegging of the ringgit; (v) maintain an accommodative monetary policy and interest rate at a level that

supports domestic economic activity; and (vi) ensure sufficient liquidity in the financial system.

Bank Negara Malaysia (BNM) has kept its Overnight Policy Rate (OPR) unchanged at 3.25% since July 2014.

With a dual mandate to ensure a balance between inflation and economic growth, in view of global uncertainty,

BNM will continue its focus to provide support on the sustainability of economic growth into 2016.

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EQUITY AND FIXED INCOME MARKET REVIEW

Equity Market

The stock market was volatile in 2015, particularly in the second half of the year. The market started the year

with a positive note with the FBM Emas Syariah index rising 7%, from 12,507 to a high of 13,389 in April.

However since April, the market has started to turn lower and selling intensified in August. The index hit a 3-year-

low of 10,706 at the end of August. The market recovered part of the losses when bargain hunters seized

opportunities in the selloff by buying into stocks which were sold down indiscriminately. The index closed the

year at 12,801. For year-on-year, the FBM Emas Syariah Index rose a marginal 2.4%.

The key events during the year were:

(a) Weak crude oil prices which affected Malaysia’s economy.

Crude oil prices have been on a declining trend since mid-2014. In a matter of 6 months, crude prices had

fallen 50% from USD107.7 to close 2014 at USD53.3. In 2015, crude continued to remain under pressure,

falling another 30.5%. With such weak prices, the country’s revenue had been affected. Overall, we are

expecting a weaker economy with a growth of 4-5% in 2016 from an expected 4.5-5.5% in 2015 and 6% in

2014.

(b) Slowing China’s economy, yuan devaluation

China’s economy has been slowing for a large part of 2015 and this has prompted the Chinese Government

to cut its benchmark interest rates six times in less than a year. Its economy fell below 7% for the first time

since the global financial crisis when 3Q15 GDP grew 6.9%. In an unexpected move in August, the

Government devalued the yuan by over 3% in 2 days. This caused selloffs in all Emerging Asia currencies

which saw decline between 1.5-8.0%.

(c) Slew of initiatives announced by the Malaysian Government

In September, Prime Minister Dato’ Sri Najib announced a slew of measures recommended by the Special

Economic Committee totaling RM28bn. Among these measures were the RM20bn market stabilization fund,

RM2bn working capital guarantee scheme to assist the SMEs and RM4.5bn integrated development of

Desaru Coast Destination Resort. The announcement stemmed further market losses and the index rallied

8.8% in one month.

(d) Timing of US interest rate hikes

Global markets had been preoccupied with the timing of rate hikes in the US for most part of 2015. Finally in

mid-December, the Fed Chairman, Janet Yellen announced a 25 basis point hike in US rates, its first move

in 7 years. Economists are now expecting more hikes throughout 2016 with a projection of another 75 basis

point hikes, bringing rates to 1.25% by the end of 2016. The hike provided certainty to the market at a time

when global markets were looking for fresh leads. Despite the hike, emerging market currencies and stock

markets have remained relatively stable.

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Fixed Income Market

The US Treasury yields swung throughout the year, with the 10-year yield plunging to a record low of 1.64% in

January before climbing to its peak of 2.48% in June. It ended in December 2015 at 2.27%. The erratic

movements in the UST yields were largely attributed to the US Federal Reserve’s reluctance to raise the fed

funds rate until December 2015 amid global uncertainties. The yields for European bonds fell at the beginning of

2015, driven by multiple factors such as fear of deflation, worries on the possibility of a ‘Grexit’ and prospects of

further quantitative easing measures by the ECB. This continued until mid-April when a wave of positive

macroeconomic indicators surprised the market, triggering a large sell-off in European government bonds and

sending the yields up amid low secondary market liquidity. Yields went down again in the second half of 2015 in

view of weak inflation, slow growth of euro zone economies as well as expectations that the ECB would step up

its stimulus measures aggressively by December.

Locally, the MGS yield curve steepened as yields on the longer end of the curve shifted higher but yields on the

shorter end of the curve closed lower in view of slower growth and benign inflation replaced the earlier concern on

possibility of OPR hike. Bearish ringgit performance and a slump in crude oil and other commodity prices led

investors to shorten their portfolio duration. The 3yr/10yr Benchmark MGS spread doubled from 45 bps as at end

December 2014 to 90 bps as at end December 2015.

In terms of issuance, total new government offerings of MGS/GII increased to 29 securities worth RM92.5 billion

compared with RM84.5 billion in 2014. The amount was slightly higher than projected as the government

increased issuances in response to declining revenue as a result of falling crude oil prices. The government also

raised a total of RM4.5 billion through three Sukuk Perumahan Kerajaan auctions. In the corporate debt market, a

total gross issuance of RM85.0 billion was recorded in 2015, a drop of 1.1% from RM85.9 billion in 2014. The

relatively lackluster primary market activities in 2015 reflected the challenging environment in the local bond

market. Based on rating distribution, high grades still dominate the primary supply landscape whereby new issues

with ratings of AA-rated or higher accounted for more than 94% of total supply in 2015.

Money Market

In regards to the Islamic money market, Bank Negara Malaysia (BNM) has kept its Overnight Policy Rate (OPR)

unchanged at 3.25% since July 2014. The 1-month Maybank General Investment Account (GIA-i) Rate however

was revised up by 100 bps from 3.0% to 4.0% in 2015 as under the new classification by BNM it reclassified into

an investment product (against an Islamic deposit product previously).

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MARKET OUTLOOK AND INVESTMENT STRATEGY

Market Outlook

The International Monetary Fund (IMF) in its latest World Economic Outlook Update (WEO Update, January

2016), released in January 2016, revised downward the 2016 annual growth estimate for the world economy to

3.4% (2015: 3.1%), representing 0.2 percentage point lower than October 2015 WEO estimate of 3.6%. The IMF

also revised downward the global growth forecast for 2017 to 3.6%, down by 0.2 percentage point reflecting to a

substantial degree, but not exclusively, a weaker pickup in emerging economies than was forecast in October

2015. Risks to the global outlook remain tilted to the downside and relate to ongoing adjustments in the global

economy: a generalized slowdown in emerging market economies, China’s rebalancing, lower commodity prices,

and the gradual exit from extraordinarily accommodative monetary conditions in the United States. If these key

challenges are not successfully managed, global growth could be derailed.

For Malaysia, on 28 January 2016 a recalibration of its Budget 2016 was announced, of which the 2016 budget

deficit target of -3.1% (2015E: -3.2%) is maintained despite lower crude oil price assumption of USD30-35/bbl

against USD48/bbl previously. Revenues are projected to be RM7.8bn – RM9.4bn lower, with about 60% coming

from lower oil-related income, except Petronas dividend, which stays at RM16bn. To achieve the deficit target

and keep Government debt within the self-imposed 55% of GDP limit, total spending is cut by RM8.0bn -

RM9.5bn, with equal split between Operating Expenditure (OE: RM4.0bn – RM4.5bn) and Gross Development

Expenditure (GDE: RM4.0bn – RM5.0bn). Real GDP growth forecast range is narrowed to 4.0%- 4.5% from

4.0%-5.0%. Measures to stimulate consumer spending were also announced which could boost GST revenue.

With that, the year 2016 started on a positive note for the country which we believe, the recalibrated Budget 2016

would give a level of certainty in the market and regain foreign investors’ confidence with 11 added measures

introduced to enhance the economy. In addition, in January 2016, Bank Negara Malaysia in an unexpected move

has cut the Statutory Reserve Requirement from 4.0% to 3.5% to inject further liquidity into the financial system. It

is anticipated that 2016 will be relatively a better year compared to 2015. From the valuation perspective, it

seems that a lot of the bad news, whether on the political, economic or stock market fronts, has been priced in.

Meanwhile downside risks for domestic markets are expected to be limited and will be well supported. This is on

the pre text of various factors such as: (i) most foreign investors are currently underweight Malaysia, hence

massive foreign sell-off may no longer be the key risk; (ii) Malaysia has a large pool of domestic dedicated funds

which lend support in a declining market; (iii) The RM20bn injection into Value Cap will further provide stability to

the market; and (iv) various government initiatives to support the economic growth which is expected to be

forthcoming.

Despite the above, we expect the market to continue to be volatile for 2016 due to some of the ongoing

headwinds. Commodity prices in particular crude oil is expected to remain low. Ringgit seen a slight rebound

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beginning of 2016 however we expect it to maintain within 4.00 - 4.15 range (2015: 3.50 – 4.45 range) amid

dissipation of domestic political risk, fluid crude oil price situation, low commodity export growth, and the slowing

down of the world’s second largest importing country China.

As for the rates market, OPR is forecasted to be maintained at 3.25% throughout 2016 against a backdrop of a

relatively stable economic growth and contained inflation. The MGS yield to be volatile with upside pressure

particularly on the longer end of the yield curve mainly premised on the effect from the Fed’s interest rate hike

and higher supply for long-dated issuances. Nonetheless the rise in MGS yields is expected to be contained as

domestic institutional investors should provide critical support to local government bonds should there be a

significant rise in yields.

For the Corporate Sukuk market, yield curve is expected to move in line with the risk free rate albeit at a less

volatile rate. New issuances are expected to remain lacklustre in view of slower economic growth and the general

market sentiment turning cautious toward expansion and capex spending. In addition, the slower economic

growth and challenging operating environment may also give rise to credit risks.

Investment Strategy

As such, we remain prudent and vigilant in our investment strategy focusing on stocks with good fundamentals,

stable historical income, strong management team, long-term earnings visibility and solid balance sheet. We

prefer stocks that are defensive in nature, to protect the capital from any potential downside risks while meeting

the long-term objective of the funds.

For certain funds which have exposure to investment in fixed income, the focus will be on corporate sukuk within

AAA and AA segments to maintain the portfolio healthy credit profile as well as for better liquidity. Short to

medium term papers are preferred at this juncture with BNM is expected to hold interest rates steady throughout

2016. As for the yields for longer dated papers, they are expected to rise due to inflationary pressure and

expected gradual rise in US Treasury yields.

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FUND PERFORMANCE REPORT

ITTIZAN

Performance Review For the 12 months ended 31 December 2015, Ittizan recorded a positive return of 2.64% in tandem with the movement of the benchmark (70% FBMSI and 30% 1-Month GIA) which recorded a gain of 2.66% during the same period under review.

Asset Allocation In terms of asset allocation, the fund has invested 69.44% in equity, 29.50% in Sukuk and the remaining in money market / cash. On equity sectoral allocation, trading & services was the top sector that the fund invested in with 34.61% exposure. The details of asset allocation and the top 5 investment holdings are given below:-

(6.0)

(4.0)

(2.0)

0.0

2.0

4.0

6.0

Retu

rn %

Ittizan vs Benchmark

Ittizan Benchmark

34.61%

29.50%

11.92% 8.10% 7.57%

3.20%

Trading & Services Sukuk Plantation Industrial Products Construction Infrastructure Project

Total Return (%) Average Annual Return (%)

1-Year 3-Year 5-Year 1-Year 3-Year 5-Year

Ittizan 2.64 16.60 31.76 2.64 5.53 6.35

Benchmark 2.66 10.71 22.42 2.66 3.57 4.48

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Fees / Charges levied to the Fund Among the fees/charges levied to the fund are: a) Management fee which is calculated based on 1.5% per annum of the Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of debt

securities.

Details on Distribution There was no distribution declared for Ittizan for the period ended 31 December 2015.

Descriptions of any changes in Fund’s Objectives and Strategies There were no material changes in the fund’s objectives and strategies for the period ended 31 December 2015.

69.44%

29.50%

1.06%

Equities

Sukuk

Money Market & Cash

6.58%

4.55%

4.53%

3.35%

3.20%

Tenaga Nasional Bhd

Axiata Group Berhad

Sime Darby Berhad

Petronas Chemicals Group Bhd

Digi.Com Bhd

Top 5 Investment Holding

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ISTIQRAR

Performance Review For the 12 months ended 31 December 2015, Istiqrar has outperformed its benchmark, recording a return of 3.50% against its benchmark of 3.07% (30% FBMSI and 70% 1-Month GIA).



Istiqrar 3.50 13.11 23.51 3.50 4.37 4.70

Benchmark 3.07 9.69 18.01 3.07 3.23 3.60

Asset Allocation In terms of asset allocation, the fund has invested 33.92% in equity, 52.10% in Sukuk and the remaining in money market / cash which is in accordance with its asset allocation strategy. On equity sectoral allocation, trading & services was the top sector the fund has invested in with 16.82% exposure. The details of asset allocation and the top 5 investment holdings are given below:-

(2.0)

(1.0)

0.0

1.0

2.0

3.0

4.0

Retu

rn %

Istiqrar vs Benchmark

Istiqrar Benchmark

52.10%

16.82%

5.63% 3.95% 3.87% 1.58%

Sukuk Trading/Services Plantation Industrial products Construction Infrastructure Project

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Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.5% per annum of the Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of debt securities;

Details on Distribution There was no distribution declared for Istiqrar for the period ended 31 December 2015.

Descriptions of any changes in Fund’s Objectives and Strategies There were no material changes in the fund’s objectives and strategies for the period ended 31 December 2015.

52.10%

33.92%

13.98%

Sukuk

Equities

Money Market & Cash

4.38%

4.32%

4.14%

4.14%

4.06%

BGSM Management Sdn Bhd

Jimah Energy ventures Sdn Bhd

Ranhill Powertron II Sdn Bhd

Sarawak Energy Berhad

Anih Berhad


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myEQUITY INDEX FUND

Performance Review For the period under review, myEquity Index Fund recorded a positive return of 2.82%, outperforming the return of its benchmark FBMSI of 2.35%. Additionally, the tracking error was within the parameters set for the fund and its strategy as to closely track its benchmark. For the period, the fund’s tracking error stood at 1.61.



myEquity Index 2.82 25.51 47.29 2.82 8.50 9.46

Benchmark 2.35 11.47 25.73 2.35 3.82 5.15

Tracking Error 1.61 - - - - -

Note : Tracking error (also called active risk) is a measure of the deviation from the benchmark. It measures how closely a portfolio follows the index to which it is benchmarked. The index fund could have a tracking error close to zero, while an actively managed portfolio would normally have a higher tracking error.

Asset Allocation In terms of asset allocation, the fund has invested 93.47% in equity and the remaining in money market / cash. On equity sectoral allocation, trading & services was the top sector the fund has invested in, which is in accordance to the Bursa Malaysia FBMSI index component allocation. The details of asset allocation and the top 5 investment holdings are given below:-

0.0

4.0

8.0

12.0

16.0

20.0

(10.0)

(8.0)

(6.0)

(4.0)

(2.0)

0.0

2.0

4.0

6.0

8.0

Retu

rn %

myEquity Fund Index vs Benchmark

myEquity Index Fund (LHS)

Benchmark (LHS)

Tracking Error (RHS)

50.41%

14.57%

7.72% 5.79% 5.44% 4.32%

Trading/Services Industrial Product Plantation Infrastructure Project

Construction Consumer

http://en.wikipedia.org/wiki/Active_risk

P a g e | 19

Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.5% per annum of the equity market value and 1% of the

remaining Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of debt

securities.

Details on Distribution There was no distribution declared for myEquity Index Fund for the period ended 31 December 2015.

Descriptions of any changes in Fund’s Objectives and Strategies There were no material changes in fund’s objectives and strategies for the period ended 31 December 2015.

93.47%

6.53%

Equities

Money Market & Cash

10.51%

7.28%

6.24%

5.22%

5.20%

Tenaga Nasional Bhd

Axiata Group Berhad

Sime Darby Berhad

Digi.Com Bhd



P a g e | 20

myGROWTH FUND

Performance Review For the financial year ended 31 December 2015, myGrowth Fund recorded a positive return of 1.89%, while its benchmark, FBMSI recorded a gain of 2.35% during the same period under review.



myGrowth 1.89 23.03 35.06 1.89 7.68 7.01

Benchmark 2.35 11.47 25.73 2.35 3.82 5.15

Asset Allocation In terms of asset allocation, the fund has invested 78.90% in equity and the remaining is in money market / cash. On equity sectoral allocation, trading & services was the top sector the fund has invested in with 39.61% exposure. The details of asset allocation and the top 5 investment holdings are given below:-

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

Retu

rn (

%)

myGrowth Fund vs Benchmark

myGrowth Fund

Benchmark

39.61%

13.32%

8.86% 7.02%

3.39% 3.29%

Trading/Services Plantation Industrial Products Construction Infrastruture Project Consumer

P a g e | 21


remaining Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of debt

securities.

Details on Distribution There was no distribution declared for myGrowth Fund for the period ended 31 December 2015.


78.90%

21.10%

Equities

Money Market & Cash

7.75%

5.79%

5.61%

4.77%

4.29%

Tenaga Nasional Bhd

Sime Darby Berhad

Axiata Group Berhad

Berjaya Auto Berhad



P a g e | 22

myBLUE CHIPS FUND

Performance Review For the period under review, myBlueChips Fund recorded a positive return of 2.43%, outperforming the positive return of its benchmark, FBMSI of 2.35%.



myBlue Chips 2.43 23.41 39.41 2.43 7.80 7.88

Benchmark 2.35 11.47 25.73 2.35 3.82 5.15

Asset Allocation In terms of asset allocation, the fund has invested 80.29% in equity and the remaining in money market / cash. On equity sectoral allocation, trading and services was the top sector the fund has invested in as most of the blue chip companies are included in this sector. The details of asset allocation and the top 5 investment holdings are given below:-

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

Retu

rn (

%)

myBlueChips Fund vs Benchmark

myBlueChips Fund

Benchmark

40.37%

13.65%

8.87% 7.21%

3.34% 3.26%

Trading/Services Plantation Industrial Products Construction Infrastructure Project Consumer

P a g e | 23


remaining Gross Net Asset Value (NAV). b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of debt

securities.

Details on Distribution There was no distribution declared for myBlue Chips Fund for the period ended 31 December 2015.


80.29%

19.71%

Equities

Money Market & Cash

7.89%

5.81%

5.58%

4.84%

4.31%

Tenaga Nasional Bhd

Sime Darby Berhad

Axiata Group Berhad

Berjaya Auto Berhad



P a g e | 24

myDIVIDEND FUND

Performance Review For the 12 months ending 31 December 2015, myDividend Fund recorded a positive return of 1.55%. The fund which focused on high dividend yielding stocks tend to be less volatile as compared to the overall market thus the sudden spike in its benchmark performance at year-end was not in favor of the defensive nature of the fund.



myDividend 1.55 22.82 47.06 1.55 7.61 9.41

Benchmark 2.35 11.47 25.73 2.35 3.82 5.15

Asset Allocation In terms of asset allocation, the fund has invested 77.63% in equity and the remaining is in money market/cash. On equity sectoral allocation, trading & services was the top sector the fund invested in with 39.09% allocation. The details of asset allocation and the top 5 investment holdings are shown below:-

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

Retu

rn (

%)

myDividend Fund vs Benchmark

myDividend Fund

Benchmark

39.09%

12.81%

8.84% 6.88%

3.49% 3.19%

Trading/Services Plantation Industrial Products Construction Consumer Infrastructure Project

P a g e | 25

Fees / Charges levied to the Fund Among the fees/charges levied to the fund are as follows: a) management fee which is calculated based on 1.5% per annum of the equity market value and 1% of the

remaining Gross Net Asset Value (NAV); b) custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of debt

securities.

Details on Distribution There was no distribution declared for myDividend Fund for the period ended 31 December 2015.


77.63%

22.37%

Equities

Money Market & Cash

7.61%

5.72%

5.45%

4.69%

4.32%

Tenaga Nasional Bhd

Sime Darby Berhad

Axiata Group Berhad

Berjaya Auto Berhad



P a g e | 26

myBALANCED FUND

Performance Review For the financial year ended 31 December 2015, myBalanced Fund recorded a positive return of 2.89% in tandem with its blended benchmark of 40% FBMSI and 60% 12-Month Maybank GIA rate also recorded a positive return of 3.08%.



myBalanced 2.89 15.70 27.76 2.89 5.23 5.55

Benchmark 3.08 10.57 20.04 3.08 3.52 4.01

Asset Allocation As at 31 December 2015, the majority of the fund’s asset allocation is towards Sukuk in line with its stated asset allocation mandate to invest up to 60% in Sukuk. The fund had invested 42.07% in Sukuk and remaining in equity (37.06%) and money market/cash (20.87%). The details of asset allocation and the top 5 investment holdings are given below:-

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

Retr

un

(%

)

myBalanced Fund vs Benchmark

myBalanced Fund

Benchmark

42.07%

18.42%

6.37% 4.38% 4.05%

1.72%

Sukuk Trading/Services Plantation Industrial Products Construction Infrastructure Project

P a g e | 27

Fees / Charges levied to the fund Among the fees/charges levied to the fund are as follows: a) Management fee which is calculated based on 1.2% per annum of the Gross Net Asset Value (NAV); b) Custodian fee which is calculated based on 0.03% per annum of equity market value and at par value of debt

securities.

Details on Distribution There was no distribution declared for myBalanced Fund for the period ended 31 December 2015.


20.87%

37.06%

42.07%

Money Market & Cash

Equities

Sukuk

3.55%

3.50%

3.36%

3.35%

3.27%

Tenaga Nasional Bhd

Jimah Energy Ventures Sdn Bhd

Ranhill Powertron Ii Sdn Bhd

Sarawak Energy Berhad

Projek Lebuhraya Usahasama Bhd


P a g e | 28

SOFT COMMISSION RECEIVED FROM BROKERS

Soft commissions received from brokers may be retained by the Company on behalf of the funds; provided that the services rendered are related to the management of the investment-linked funds and of demonstrable benefit to certificate owners as per the requirements of Clause 6.2 of the Guidelines on Investment-Linked Insurance / Takaful Business. During the financial year under review, the management company had received on behalf of the funds, soft commissions in the form of research materials and investment related publications which are incidental to the investment management of the funds. Meanwhile, all dealings with brokers are executed at competitive market rates.

P a g e | 29

STATEMENT BY DIRECTORS

In the opinion of the Manager, the Takaful Investment-Linked Funds (“Funds’’) financial statements set out on pages 32

to 42, comprising the Statements of Assets and Liabilities as at 31 December 2015 and the related Statements of

Income and Expenditure, Changes in Net Asset Value and cash flow of the Funds for the financial year ended 31

December 2015 together with the notes thereto, have been drawn up in accordance with the Guidelines on Investment-

Linked Insurance / Takaful Business issued by Bank Negara Malaysia and give true and fair view of the financial

position of the Funds as at 31 December 2015 and their financial performance and the movements in the Statements of

Changes in Net Assets attributable to the unitholders of the Funds for year ended on that date.

Signed in accordance with a resolution of the Directors: ………………………………………………………… Dato’ Sri Mohamed Hassan Kamil ………………………………………………………… Mahadzir Azizan Kuala Lumpur Date: 18 February 2016

P a g e | 30

REPORT OF THE AUDITORS to the unitholders of the Takaful Malaysia’s Investment-Linked Funds (Company No. 131646-K) (Incorporated in Malaysia)

Report on the Financial Statements

We have audited the financial statements of Takaful Investment-Linked Funds (“Funds”) of Syarikat Takaful Malaysia

Berhad, which comprise the Statements of Assets and Liabilities as at 31 December 2015, and the related Statements

of Income and Expenditure, Changes in Net Asset Value and cash flow of the Funds for the year then ended, and a

summary of significant accounting policies and other explanatory information, as set out on pages 32 to 42.

Directors’ Responsibility for the Financial Statements

The Directors of the Manager are responsible for the preparation of these financial statements in accordance with the

accounting policies set out in Note 1 to the financial statements and Guidelines on Investment-Linked Insurance/Takaful

Business, and for such internal control as the Directors determine is necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in

accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical

requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free

from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on our judgment, including the assessment of risks of material

misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider

internal control relevant to the Funds’ preparation of the financial statements in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’

internal control. An audit also includes evaluating the appropriateness of accounting policies used and the

reasonableness of accounting estimates made by the Directors of the Manager, as well as evaluating the overall

presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

Opinion

In our opinion, the financial statements as of 31 December 2015 and for the year then ended have been prepared, in all

material respects in accordance with the accounting policies set out in Note 1 to the financial statements and the

Guidelines on Investment-Linked Insurance/Takaful Business.

P a g e | 31

Other Matters

This report is made solely to the unitholders of Takaful Investment-Linked Funds, as a body, in accordance with the

Guidelines on Investment-Linked Insurance/Takaful Business and for no other purpose. We do not assume

responsibility to any other person for the content of this report.

KPMG Desa Megat & Co Firm Number: AF 0759 Chartered Accountants Petaling Jaya, Selangor

Date: 18 February 2016

P a g e | 32


ITTIZAN ISTIQRAR

myEQUITY

INDEX myGROWTH

myBLUE

CHIPS myDIVIDEND myBALANCED

Note RM RM RM RM RM RM RM

ASSETS

Islamic Debt

Securities

2 6,777,813 6,465,429 - - - - 3,221,538

Quoted Shares 3 15,955,871 4,209,938 19,815,285 6,314,985 6,059,601 6,825,571 2,837,276

Other Assets 287,517 205,253 1,909,561 791,793 657,667 877,907 322,678

Deposits with

Financial

Institutions

220,000 1,675,000 1,411,000 1,225,000 1,075,000 1,409,000 1,522,000

Cash and Cash

Equivalents

563 8,825 1,276 769 238 579 377

23,241,764 12,564,445 23,137,122 8,332,547 7,792,506 9,113,057 7,903,869

LIABILITIES

Other Liabilities 264,700 154,353 1,937,921 328,605 245,477 321,100 247,186

264,700 154,353 1,937,921 328,605 245,477 321,100 247,186

Net Asset Value 22,977,064 12,410,092 21,199,201 8,003,942 7,547,029 8,791,957 7,656,683

REPRESENTED

BY

Certificate

Holders Capital

8,118,248 7,204,122 17,878,243 6,753,929 6,233,421 7,139,196 6,899,707

Accumulated

Income Carried

Forward

14,858,816 5,205,970 3,320,958 1,250,013 1,313,608 1,652,761 756,976

22,977,064 12,410,092 21,199,201 8,003,942 7,547,029 8,791,957 7,656,683

Number of Units

12,248,713 8,611,777 12,187,734 5,912,989 5,471,230 5,975,763 6,352,300

Net Asset Value

Per Unit

1.8759 1.4411 1.7394 1.3536 1.3794 1.4713 1.2053

P a g e | 33


ITTIZAN ISTIQRAR

myEQUITY

INDEX myGROWTH

myBLUE


Note RM RM RM RM RM RM RM

ASSETS

Islamic Debt

Securities

2 5,340,310 6,448,064 - - - - 2,367,639

Quoted Shares 3 13,566,326 3,869,259 12,248,081 5,724,933 5,551,176 6,128,340 2,141,509

Other Assets 253,100 158,528 1,013,262 282,389 237,214 295,303 322,600

Deposits with

Financial

Institutions

4,636,000 2,124,000 3,563,625 1,329,233 1,327,233 1,388,243 2,098,000

Cash and Cash

Equivalents

8,231 2,848 4,836 305 2,735 1,390 1,697

23,803,967 12,602,699 16,829,804 7,336,860 7,118,358 7,813,276 6,931,445

LIABILITIES

Other Liabilities 418,757 201,869 1,048,622 323,794 285,818 352,127 205,674

418,757 201,869 1,048,622 323,794 285,818 352,127 205,674

Net Asset Value 23,385,210 12,400,830 15,781,182 7,013,066 6,832,540 7,461,149 6,725,771

REPRESENTED

BY

Certificate

Holders Capital

8,570,380 7,386,792 12,662,879 5,757,803 5,518,972 5,755,863 6,080,579

Accumulated

Income Carried

Forward

14,814,830 5,014,038 3,118,303 1,255,263 1,313,568 1,705,286 645,192

23,385,210 12,400,830 15,781,182 7,013,066 6,832,540 7,461,149 6,725,771

Number of Units

12,518,467 8,751,945 9,160,411 5,177,770 4,955,050 5,036,643 5,668,099

Net Asset Value

Per Unit

1.8681 1.4169 1.7228 1.3545 1.3789 1.4814 1.1866

P a g e | 34

STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL YEAR ENDED 31 DECEMBER 2015

ITTIZAN ISTIQRAR

myEQUITY

INDEX myGROWTH

myBLUE


RM RM RM RM RM RM RM

Income

Gross Dividend Income 420,654 117,725 520,017 193,496 183,127 213,364 73,093

Profit Income:

Islamic Debt

Securities 322,758 350,349 - - - - 152,885

Islamic Investment

Deposits with

Financial

Institutions

100,436 73,129 67,943 36,705 35,711 37,770 67,372

Profit on Disposal:

Quoted Shares - 34,888 2,176 - - - -

Unrealised Capital Gain - - - 19,439 - - -

843,848

576,091

590,136

249,640

218,838

251,134

293,350

Outgo

Fees (347,281) (185,972) (263,314) (107,059) (102,838) (115,060) (86,816)

Loss on Disposal:

Quoted Shares (95,253) - - (134,349) (80,443) (88,777) (5,851)

Debt Securities (5,225) (18,967) - - - - (14,128)

Unrealised Capital Loss (311,480) (141,728) (78,294) - (22,000) (89,754) (53,653)

Other Outgo (40,623) (37,492) (45,873) (13,482) (13,517) (10,068) (21,118)

(799,862)

(384,159)

(387,481)

(254,890)

(218,798)

(303,659)

(181,566)

Excess of Income over

Outgo / (Outgo over

Income)

43,986 191,932 202,655 (5,250) 40 (52,525) 111,784

Undistributed Income

brought forward 14,814,830 5,014,038 3,118,303 1,255,263 1,313,568 1,705,286 645,192

Amount Available for

Distribution 14,858,816 5,205,970 3,320,958 1,250,013 1,313,608 1,652,761 756,976


carried forward 14,858,816 5,205,970 3,320,958 1,250,013 1,313,608 1,652,761 756,976

P a g e | 35

STATEMENTS OF INCOME AND EXPENDITURE FOR FINANCIAL PERIOD ENDED 31 DECEMBER 2014

ITTIZAN ISTIQRAR

myEQUITY

INDEX myGROWTH

myBLUE



Income

Gross Dividend

Income 356,462 98,043 291,229 137,722 141,944 144,599 49,675

Profit Income:

Islamic Debt

Securities 287,625 349,704 - - - - 129,346

Islamic Investment

Deposits with

Financial

Institutions

130,330 61,746 77,020 35,794 35,891 41,357 39,835

Profit on Disposal:

Quoted Shares 2,232,522 542,224 1,402,113 585,155 574,659 697,598 193,288

Islamic Debt

Securities 21,368 26,903 - - - - -

Other Income 236,525 63,635 127,762 64,987 63,800 63,817 23,869

3,264,832

1,142,255

1,898,124

823,658

816,294

947,371

436,013

Outgo

Fees (360,820) (187,380) (198,314) (95,285) (93,273) (107,606) (69,444)

Unrealised Capital

Loss (2,956,563) (795,431) (1,597,020) (812,341) (797,504) (797,706) (298,368)

Other Outgo (256,466) (96,967) (157,830) (75,752) (74,163) (83,965) (43,655)

(3,573,849)

(1,079,778)

(1,953,164)

(983,378)

(964,940)

(989,277)

(411,467)

Excess of (Outgo

over Income) /

Income over Outgo

(309,017) 62,477 (55,040) (159,720) (148,646) (41,906) 24,546


brought forward 15,123,847 4,951,561 3,173,343 1,414,983 1,462,214 1,747,192 620,646

Amount Available for

Distribution 14,814,830 5,014,038 3,118,303 1,255,263 1,313,568 1,705,286 645,192

Undistributed

Income carried

forward

14,814,830 5,014,038 3,118,303 1,255,263 1,313,568 1,705,286 645,192

P a g e | 36


ITTIZAN ISTIQRAR

myEQUITY

INDEX myGROWTH

myBLUE



Net Asset Value at the

Beginning of the

Financial Year

23,385,210 12,400,830 15,781,182 7,013,066 6,832,540 7,461,149 6,725,771

Amount Received from

Units Creation 585,459 241,579 6,239,508 1,299,051 1,037,834 1,666,368 1,133,267

Amount Paid from

Units Cancellation (1,037,591) (424,249) (1,024,144) (302,925) (323,385) (283,035) (314,139)

Net Income / (Outgo) 43,986 191,932 202,655 (5,250) 40 (52,525) 111,784


End of Financial Year 22,977,064 12,410,092 21,199,201 8,003,942 7,547,029 8,791,957 7,656,683


ITTIZAN ISTIQRAR

myEQUITY

INDEX myGROWTH

myBLUE




Beginning of the

Financial Year

24,457,762 12,532,966 12,377,754 6,254,346 6,067,297 6,687,265 5,146,370

Amount Received from

Units Creation 620,501 282,451 4,326,637 1,113,499 1,166,731 1,333,027 1,716,863

Amount Paid from

Units Cancellation (1,384,036) (477,064) (868,169) (195,059) (252,842) (517,237) (162,008)

Net (Outgo) / Income (309,017) 62,477 (55,040) (159,720) (148,646) (41,906) 24,546


End of Financial Year 23,385,210 12,400,830 15,781,182 7,013,066 6,832,540 7,461,149 6,725,771

P a g e | 37


ITTIZAN ISTIQRAR

myEQUITY

INDEX myGROWTH

myBLUE


2015 RM RM RM RM RM RM RM

Cash Flow from

Operating Activities

Income / (Outgo) Before

Taxation

43,986

191,932

202,655

(5,250)

40

(52,525)

111,784

Adjustment for:

Profit Income

(423,194) (423,478) (67,943) (36,705) (35,711) (37,770) (220,257)

Gross Dividend

Income (420,654) (117,725) (520,017) (193,496) (183,127) (213,364) (73,093)

Profit on Disposal 100,478 (15,921) (2,176) 134,349 80,443 88,777 19,979

Unrealised Capital Loss 311,480 141,728 78,294 (19,439) 22,000 89,754 53,653

Outgo from Operations

Before Changes in

Operating Assets and

Liabilities

(387,904)

(223,464)

(309,187)

(120,541)

(116,355)

(125,128)

(107,934)

Proceeds from Disposal of

Investment 15,021,987 4,427,425 12,818,358 5,895,164 5,593,505 5,548,387 2,514,607

Purchase of Investment (14,844,993) (4,462,275) (18,309,054) (6,495,893) (5,952,140) (6,444,906) (3,561,906)

Increase in Other Assets (34,417) (46,726) (896,299) (509,404) (420,453) (582,604) (77)

(Decrease) / Increase in

Other Liabilities (154,057) (47,516) 889,298 4,811 (40,341) (31,027) 41,512

Cash used in Operations (399,384) (352,556) (5,806,884) (1,225,863) (935,784) (1,635,278) (1,113,798)

Profit Income Received 423,194 423,478 67,943 36,705 35,711 37,770 220,257

Gross Dividend Income

Received 420,654 117,725 520,017 193,496 183,127 213,364 73,093

Net Cash generated from

/ (used in) Operating

Activities

444,464 188,647 (5,218,924) (995,662) (716,946) (1,384,144) (820,448)

Cash Flow from

Financing Activities

Proceeds from Creations of

Units

585,459

241,579

6,239,508

1,299,051

1,037,834

1,666,368

1,133,267

Payment for Cancellation of

Units (1,037,591) (424,249) (1,024,144) (302,925) (323,385) (283,035) (314,139)

Net Cash (used in) /

generated from


(452,132) (182,670) 5,215,364 996,126 714,449 1,383,333 819,128

Net (Decrease) / Increase

in Cash and Cash

Equivalents

(7,668) 5,977 (3,560) 464 (2,497) (811) (1,320)

Cash and Cash

Equivalents at 1

January 2015

8,231 2,848 4,836 305 2,735 1,390 1,697

Cash and Cash

Equivalents at 31

December 2015

563 8,825 1,276 769 238 579 377

P a g e | 38


ITTIZAN ISTIQRAR

myEQUITY

INDEX myGROWTH

myBLUE


2014 RM RM RM RM RM RM RM

Cash Flow from Operating

Activities

(Outgo) / Income Before

Taxation

(309,017)

62,477

(55,040)

(159,720)

(148,646)

(41,906)

24,546

Adjustment For:

Profit Income

(417,955) (411,450) (77,020) (35,794) (35,891) (41,357) (169,181)

Gross Dividend

Income (356,462) (98,043) (291,229) (137,722) (141,944) (144,599) (49,675)

Profit on Disposal (2,253,890) (569,127) (1,402,113) (585,155) (574,659) (697,598) (193,288)

Unrealised Capital Loss 2,956,563 795,431 1,597,020 812,341 797,504 797,706 298,368

Outgo from Operations

Before Changes in

Operating Assets and

Liabilities

(380,761) (220,712) (228,382) (106,050) (103,637) (127,754) (89,230)

Proceeds from Disposal of

Investment

22,587,460

7,979,063

20,518,282

11,096,040

9,191,879

9,892,330

3,519,164

Purchase of Investment (22,012,824) (8,047,876) (24,379,936) (12,108,551) (10,246,286) (10,835,861) (5,177,419)

Decrease / (Increase) in

Other Assets 485,024 191,362 38,482 (6,638) 47,538 26,819 (57,162)

(Decrease) / Increase in

Other Liabilities (682,048) (214,702) 229,144 33,175 21,266 43,037 32,579

Cash used in Operations (3,149) (312,865) (3,822,410) (1,092,024) (1,089,240) (1,001,429) (1,772,068)

Profit Income Received 417,955 411,450 77,020 35,794 35,891 41,357 169,181

Gross Dividend Income

Received

356,462

98,043

291,229

137,722

141,944

144,599

49 675

Net Cash Generated from /

(used In) Operating

Activities

771,268 196,628 (3,454,161) (918,508) (911,405) (815,473) (1,553,212)

Cash Flow from Financing

Activities

Proceeds from Creations of

Units 620,501 282,451 4,326,637 1,113,499 1,166,731 1,333,027 1,716,863

Payment for Cancellation of

Units (1,384,036) (477,064) (868,169) (195,059) (252,842) (517,237) (162,008)

Net Cash (used in) /

generated from


(763,535) (194,613) 3,458,468 918,440 913,889 815,790 1,554,855

Net Increase / (Decrease)

in Cash and Cash

Equivalents

7,733 2,015 4,307 (68) 2,484 317 1,643

Cash and Cash

Equivalents at 1 January

2014

498 833 529 373 251 1,073 54

Cash and Cash

Equivalents at 31

December 2014 8,231 2,848 4,836 305 2,735 1,390 1,697

P a g e | 39

NOTES TO THE FINANCIAL STATEMENTS

The Manager and its principal activities The Manager is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities Berhad. The address of its registered office and principal place of business of the Manager is located at: 26

th Floor, Annexe Block

Menara Takaful Malaysia No.4, Jalan Sultan Sulaiman 50000 Kuala Lumpur The Manager is principally engaged in managing family and general takaful businesses. The family takaful business includes investment-linked products. The financial statements were approved by the Board of Directors of the Manager on 18 February 2016. 1. Summary of significant accounting policies

The accounting policies set out below have been applied consistently to periods presented in these financial statements, unless otherwise stated.

(a) Basis of accounting

The financial statements have been prepared in accordance with the notes set out in Note 1, The Guidelines on Investment-Linked Insurance/Takaful Business (issued by Bank Negara Malaysia) and the requirements of the certificate document.

(b) Functional and presentation currency

These financial statements are presented in Ringgit Malaysia (RM), which is the Funds’ functional currency.

(c) Investments

Quoted shares, which are Shariah approved, are stated at the closing market prices as at the date of the statement of assets and liabilities. Islamic debt securities are valued at cost adjusted for amortisation of premiums or accretion of discounts over their par values at the time of acquisition using the effective yield method. The carrying value is subsequently revalued to reflect their fair values by using price quoted by Bond Pricing Agency Malaysia. Any increase or decrease in value of investments at each reporting date is taken into Statement of Income and Expenditure.

(d) Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and bank balances.

(e) Net Creation of Units Net creation of units represents contributions paid by participants as payment for new certificate/top up for existing certificate. Net creation of units is recognized on a receipt basis.

P a g e | 40

(f) Net Cancellation of Units Net cancellation of units represents cancellation of units arising from the surrenders and withdrawals by participants. Net cancellation of units is recognized upon surrendering of/withdrawal from the related takaful certificates.

(g) Income Recognition

Dividend income is recognized when the right to receive payment is established. Income is recognized on time proportion basis that takes into account the effective yield of the asset. Gain or loss of disposal of quoted shares is credited or charged to the Statement of Income and Expenditure.

(h) Investment management fees

Investment management fees are calculated in accordance with the provisions of the certificate document.

2. Islamic debt securities

31 December 2015 RM

31 December 2014 RM

(i) Ittizan

Cost 6,962,996 5,484,341

Unrealised capital loss (185,183) (144,031)

Market value 6,777,813 5,340,310

(ii) Istiqrar

Cost 6,653,962 6,603,369


Market value 6,465,429 6,448,064

(iii) myBalanced

Cost 3,306,301 2,444,158


Market value 3,221,538 2,367,639

3. Quoted shares

31 December 2015

RM

31 December 2014

RM

(i) Ittizan

Cost 15,767,205 13,107,332

Unrealised capital gain 188,666 458,994

Market value 15,955,871 13,566,326

P a g e | 41

31 December 2015

RM

31 December 2014

RM

(ii) Istiqrar

Cost 4,132,081 3,682,901


Market value 4,209,938 3,869,259

(iii) myEquity Index

Cost 19,530,441 11,884,944


Market value 19,815,285 12,248,081

(iv) myGrowth

Cost 6,306,270 5,735,657

Unrealised capital gain/(loss) 8,715 (10,724)

Market value 6,314,985 5,724,933

(v) myBlue Chips

Cost 6,023,557 5,493,132


Market value 6,059,601 5,551,176

(vi) myDividend

Cost 6,802,568 6,015,583


Market value 6,825,571 6,128,340

(vii) myBalanced

Cost 2,837,770 2,096,593

Unrealised capital (loss) / gain (494) 44,916

Market value 2,837,276 2,141,509

4. Financial Instruments The Funds are exposed to market, credit, liquidity and profit rate risks.

Market risk Market risk arises when the value of securities fluctuates in response to the activities of the individual companies, general market or economic conditions. The market risk is managed through portfolio diversification and asset allocation whereby the securities exposure will be reduced in the event of anticipated market weakness.

P a g e | 42

Credit risk Credit risk refers to the ability of an issuer or a counterparty to make timely profit and principal payments. The maximum exposure to credit risk is represented by the carrying amount of each financial asset as disclosed in the Statement of Assets and Liabilities.

Liquidity risk

This may come about when realisation of units is required in excess of normal amounts. The extent of exposure to the risk is contained in provisions set out in the prospectus.

Profit rate risk When the profit rate rises, bond prices fall and vice versa. The market risk is monitored through periodic reviews of its asset and liability positions with the objective to limit the net changes in the value of assets and liabilities arising from profit rate movements. Shariah risk Shariah risk arises when transaction entered by Islamic Financial Institution (IFI) are declared impermissible. Any profit sourced from shariah non compliance activities shall be cleansed in order to retain compliance and it also will impact the reputation of IFI.

Fair values The fair values of investments have been disclosed in notes 2 and 3. The basis of deriving the fair values is disclosed in Note 1(c).

P a g e | 43

DETAILS OF INVESTMENTS

ITTIZAN

Security Name Number of

Units Total Cost Market Value

% of NAV

Construction

Gamuda Bhd 94,300 460,459 439,438 1.91%

IJM Corporation Bhd 138,000 490,961 466,440 2.03%

Ho Hup Construction Company Bhd 122,000 169,320 129,320 0.56%

Hock Seng Lee Bhd 86,000 158,459 162,540 0.71%

Mitrajaya Holdings Bhd 201,000 229,114 241,200 1.05%

Muhibbah Engineering (M) Bhd 136,000 307,932 300,560 1.31%

Consumer

PPB Group Bhd 10,000 155,761 159,000 0.69%

Industrial Products

Cahya Mata Sarawak Berhad 60,000 300,825 307,800 1.34%

Petronas Chemicals Group Bhd 106,000 701,977 770,620 3.35%

Petronas Gas Bhd 27,900 616,390 633,330 2.76%

SKP Resources Bhd 114,000 159,772 149,340 0.65%

Infrastructure Project Company

Digi.Com Bhd 136,200 762,017 735,480 3.20%

Plantation

Genting Plantations Bhd 62,000 659,154 657,200 2.86%

Felda Global Ventures Holdings Berhad 88,000 158,150 150,480 0.66%

IJM Plantations Bhd 80,000 293,657 284,000 1.24%

IOI Corporation Bhd 145,000 622,412 646,700 2.82%

Sarawak Oil Palms Bhd 100,700 476,893 441,066 1.92%

Kuala Lumpur Kepong Bhd 24,500 562,217 560,560 2.44%

Property

SP Setia Bhd 47,800 159,839 152,960 0.67%

Sunway Bhd 48,000 159,871 147,840 0.64%

Technology

Globetronics Technology Bhd 23,000 142,168 149,500 0.65%

Unisem (M) Bhd 63,900 147,229 152,082 0.66%

Inari Amertron Bhd 36,000 113,205 164,880 0.72%

P a g e | 44

Trading/Services

Axiata Group Berhad 162,979 977,544 1,044,695 4.55%

Berjaya Auto Berhad 286,200 652,563 612,468 2.67%

Dialog Group Bhd 172,664 292,273 276,263 1.20%

E.A. Technique(M) Berhad 123,000 157,258 136,530 0.59%

IHH Healthcare Berhad 72,000 401,773 473,760 2.06%

KPJ Healthcare Bhd 34,300 128,846 144,746 0.63%

Malakoff Corporation Bhd 187,300 322,561 299,680 1.30%

MISC Berhad 50,000 390,920 468,500 2.04%

Maxis Berhad 68,600 457,908 466,480 2.03%

MMC Corporation Bhd 115,400 266,806 226,184 0.98%

MyEG Services Bhd 78,000 218,762 336,960 1.47%

Sime Darby Berhad 134,452 1,228,002 1,042,003 4.53%

SapuraKencana Petroleum Berhad 73,000 161,153 147,460 0.64%

Telekom Malaysia Bhd 65,966 433,243 447,250 1.95%

Tenaga Nasional Bhd 113,487 1,350,163 1,511,647 6.58%

UEM Edgenta Berhad 50,000 159,502 165,500 0.72%

Westports Holdings Berhad 37,000 159,206 152,440 0.66%

Real Estate Investment Trust

Axis Real Estate Investment Trust 591 940 969 0.00%

Total Malaysian Equities 3,775,239 15,767,205 15,955,871 69.44%

Malaysian Debt Securities

Kapar Energy Ventures Sdn Bhd 500,000 512,000 494,920 2.15%

BGSM Management Sdn Bhd 439,999 482,591 468,867 2.04%

Senari Synergy Sdn Bhd 250,000 254,025 251,110 1.09%

CIMB Islamic Bank Berhad 200,000 219,540 208,442 0.91%

Anih Berhad 500,000 505,200 504,130 2.19%

DRB Hicom Berhad 500,000 501,110 499,270 2.17%

Projek Lebuhraya Usahasama Berhad 500,000 505,350 500,245 2.18%

Jimah Energy Ventures Sdn Bhd 500,000 594,400 535,925 2.33%

Ranhill Powertron Ii Sdn Bhd 500,000 550,200 514,090 2.24%

TNB Northern Energy Bhd 600,000 600,000 571,044 2.49%

Alam Maritime Resources Bhd 500,000 504,700 497,270 2.16%

Sarawak Energy Berhad 500,000 517,400 513,740 2.24%

Cerah Sama Sdn Bhd 400,000 394,000 396,636 1.73%

Malakoff Power Berhad 400,000 414,480 414,184 1.80%

National Bank Of Abu Dhabi 400,000 408,000 407,940 1.78%

Total Malaysian Equities & Debt Securities 10,465,238 22,730,201 22,733,684 98.94%

P a g e | 45

ISTIQRAR



% of NAV

Construction


Gamuda Bhd 29,000 148,917 135,140 1.09%

Hock Seng Lee Bhd 23,400 43,120 44,226 0.36%




Consumer

PPB Group Bhd 3,000 46,729 47,700 0.38%

Industrial Products



Petronas Gas Bhd 7,200 155,773 163,440 1.32%



Digi.Com Bhd 36,300 200,917 196,020 1.58%

Plantation







Property

SP Setia Berhad 13,000 43,563 41,600 0.33%

Sunway Berhad 13,000 43,299 40,040 0.32%

Technology


Unisem (M) Bhd 17,800 40,950 42,364 0.34%


Trading/Services

Axiata Group Berhad 44,927 241,821 287,982 2.32%


Dialog Group Bhd 48,608 84,038 77,773 0.63%

E.A. Technique(M) Berhad 33,000 42,118 36,630 0.30%




MISC Berhad 13,000 104,576 121,810 0.98%

Maxis Berhad 17,900 119,352 121,720 0.98%



Sime Darby Berhad 35,451 323,804 274,745 2.21%

P a g e | 46

Sapurakencana Petroleum Berhad 20,000 44,151 40,400 0.33%


Tenaga Nasional Bhd 30,575 367,782 407,259 3.28%

Westports Holdings Berhad 10,000 43,028 41,200 0.33%







Senari Synergy Sdn Bhd 250,000 254,025 251,110 2.02%


Anih Berhad 500,000 505,200 504,130 4.06%

DRB Hicom Berhad 500,000 501,110 499,270 4.02%


Ranhill Powertron Ii Sdn Bhd 500,000 550,200 514,090 4.14%

TNB Northern Bhd 500,000 500,000 475,870 3.83%

Alam Maritime 500,000 504,700 497,270 4.01%






P a g e | 47

myEQUITY INDEX



% of NAV

Construction

Gamuda Bhd 112,400 559,160 523,784 2.47%


Ho Hup Construction Company Berhad 10,000 13,879 10,600 0.05%



Consumer

PPB Group Bhd 32,600 506,341 518,340 2.45%

QL Resources Bhd 29,000 116,187 124,410 0.59%

UMW Holdings Berhad 34,600 408,822 272,302 1.28%

Industrial Products

Cahya Mata Sarawak Bhd 28,000 137,779 143,640 0.68%

Hartalega Holdings Bhd 38,000 213,406 225,720 1.06%

Kossan Rubber Industries Bhd 17,000 150,035 158,100 0.75%

Lafarge Malaysia Bhd 23,000 209,468 204,240 0.96%

Petronas Chemicals Group Bhd 151,700 982,496 1,102,859 5.20%

Petronas Gas Bhd 42,100 948,252 955,670 4.51%

Top Glove Corporation Bhd 22,000 220,620 298,760 1.41%


Digi.Com Bhd 204,800 1,170,141 1,105,920 5.22%

Time Dotcom Bhd 16,000 108,820 121,600 0.57%

Plantation

Felda Global Ventures Holdings Bhd 98,000 183,341 167,580 0.79%


IOI Corporation Berhad 142,300 633,903 634,658 2.99%


Property

IOI Properties Group Bhd 96,900 208,936 218,025 1.03%

Mah Sing Group Bhd 83,000 113,609 120,350 0.57%

SP Setia Berhad 45,800 153,418 146,560 0.69%

Sunway Berhad 40,000 135,652 123,200 0.58%

UEM Sunrise Bhd 84,000 108,777 94,080 0.44%

Technology

Unisem (M) Bhd 25,700 59,193 61,166 0.29%



Trading/Services

Axiata Group Berhad 240,685 1,474,162 1,542,791 7.28%


Bumi Armada Bhd 179,000 184,907 182,580 0.86%

Dialog Group Bhd 216,984 369,697 347,174 1.64%


P a g e | 48


MISC Berhad 78,500 614,437 735,545 3.47%

Malakoff Corporation Berhad 89,500 147,308 143,200 0.68%

Maxis Berhad 138,500 917,108 941,800 4.44%



Petronas Dagangan Berhad 16,000 360,391 397,760 1.88%

SapuraKencana Petroleum Bhd 202,000 466,982 408,040 1.92%

Sime Darby Berhad 170,714 1,538,013 1,323,034 6.24%


Tenaga Nasional Bhd 167,325 2,109,404 2,228,769 10.51%

Westports Holdings Bhd 56,000 237,598 230,720 1.09%


Axis Real Estate Investment Trust 1,194 1,898 1,958 0.01%

KLCC Property & KLCC Reits Staple Group 24,000 168,679 169,440 0.80%


P a g e | 49

myGROWTH



% of NAV

Construction

Gamuda Bhd 49,300 242,718 229,738 2.87%



Hock Seng Lee Bhd 40,000 73,704 75,600 0.94%

Consumer

QL Resources Berhad 19,000 77,977 81,510 1.02%

PPB Group Bhd 5,000 78,168 79,500 0.99%


Industrial Products


Petronas Gas Bhd 12,900 298,246 292,830 3.66%



Time Dotcom Bhd 2,000 11,644 15,200 0.19%

Digi.Com Bhd 47,500 271,200 256,500 3.20%

Plantation






Property

SP Setia Berhad 11,600 38,805 37,120 0.46%

Technology


Unisem (M) Bhd 13,300 30,618 31,654 0.40%


Trading/Services



Dialog Group Bhd 93,512 157,253 149,619 1.87%

E.A. Technique (M) Berhad 90,500 118,138 100,455 1.26%



MISC Berhad 16,400 112,400 153,668 1.92%

Maxis Berhad 11,000 73,130 74,800 0.93%



Prestariang Berhad 46,600 121,832 138,402 1.73%




P a g e | 50






P a g e | 51

myBLUECHIPS



% of NAV

Construction

Gamuda Bhd 48,000 236,592 223,680 2.96%



Hock Seng Lee Bhd 38,000 70,014 71,820 0.95%

Consumer


PPB Group Bhd 4,700 73,479 74,730 0.99%


Industrial Products


Petronas Gas Bhd 12,100 274,899 274,670 3.64%



Time Dotcom Bhd 1,100 6,424 8,360 0.11%

Digi.Com Bhd 45,200 255,962 244,080 3.23%

Plantation






Property

SP Setia Berhad 9,600 32,173 30,720 0.41%

Technology


Unisem (M) Bhd 13,200 30,406 31,416 0.42%




Trading/Services



Dialog Group Bhd 89,512 152,340 143,219 1.90%




MISC Berhad 17,700 121,189 165,849 2.20%

Maxis Berhad 11,700 77,769 79,560 1.05%




P a g e | 52







P a g e | 53

myDIVIDEND



% of NAV

Construction

Gamuda Bhd 53,500 263,155 249,310 2.84%


Hock Seng Lee Bhd 42,900 79,047 81,081 0.92%


Consumer


PPB Group Bhd 6,700 104,459 106,530 1.21%


Industrial Products

Petronas Gas Bhd 14,000 317,758 317,800 3.61%




Digi.Com Bhd 51,900 294,708 280,260 3.19%

Plantation






Property

SP Setia Berhad 12,000 40,143 38,400 0.44%

Technology


Unisem (M) Bhd 14,500 33,409 34,510 0.39%



Axis Real Estate Investment Trust 968 1,539 1,587 0.02%

Trading/Services



Dialog Group Bhd 103,800 174,131 166,080 1.89%




MISC Berhad 17,700 123,982 165,849 1.89%

Maxis Berhad 13,900 92,350 94,520 1.08%




P a g e | 54







P a g e | 55

myBALANCED



% of NAV

Construction


Gamuda Bhd 17,900 91,569 83,414 1.09%


Hock Seng Lee Bhd 14,500 26,748 27,405 0.36%



Consumer

PPB Group Bhd 2,000 31,153 31,800 0.42%

Industrial Products


Petronas Gas Bhd 5,000 113,409 113,500 1.48%




Digi.Com Bhd 24,400 138,769 131,760 1.72%

Plantation







Property

SP Setia Berhad 8,000 26,812 25,600 0.34%

Sunway Berhad 8,000 26,645 24,640 0.32%

Technology


Unisem (M) Bhd 11,000 25,355 26,180 0.34%


Trading/Services



Dialog Group Bhd 29,304 50,155 46,886 0.61%




MISC Berhad 9,000 73,452 84,330 1.10%


Maxis Berhad 12,300 82,023 83,640 1.09%



P a g e | 56


Sapurakencana Petroleum Berhad 14,000 30,906 28,280 0.37%




Wesports Holdings Berhad 7,000 30,121 28,840 0.38%



Total Malaysian Equities 671,480 2,837,770 2,837,276 37.06%



Bank Islam Malaysia Berhad 200,000 200,000 200,758 2.62%


Projek Lebuhraya Usahasama Berhad 250,000 252,675 250,122 3.27%


Ranhill Powertron II Sdn Bhd 250,000 275,100 257,045 3.36%

TNB Northern Bhd 250,000 250,000 237,935 3.11%

Alam Maritime Resources Bhd 250,000 252,350 248,635 3.25%






Jimah East Power Sdn Bhd 200,000 200,000 202,494 2.65%


P a g e | 57

COMPARATIVE PERFORMANCE TABLE

ITTIZAN

Portfolio Composition 31-Dec-15 31-Dec-14 31-Dec-13 31-Dec-12 31-Dec-11

(%) (%) (%) (%) (%)

a. Equities: 69.44 58.01 68.65 67.29 58.55

● Construction 7.57 1.86 2.20 3.66 4.91

● Consumer Products 0.69 1.97 - 1.72 2.52

● Industrial Products 8.10 2.45 8.02 7.65 7.08

● Infrastructure 3.20 2.96 3.46 4.74 4.71

● Plantation 11.92 3.97 8.76 5.26 3.38

● Property 1.31 2.21 - 1.52 3.05

● Trading & Services 2.03 42.59 46.20 41.09 31.42

● REITs 34.61 - 0.01 1.65 1.48

● Derivatives 0.00 - - - -

b. Islamic Debt Securities 29.50 22.84 25.03 23.13 25.14

c. Money Market & Cash 1.06 19.15 6.32 9.58 16.31

TOTAL 100.00 100.00 100.00 100.00 100.00

31-Dec-15 31-Dec-14 31-Dec-13 31-Dec-12 31-Dec-11

Total NAV (RM) 22,977,064 23,385,210 24,457,156 22,774,730 21,239,238

Number of units 12,248,713 12,518,467 12,926,122 13,530,802 13,871,401

NAV per Unit (RM) 1.876 1.868 1.892 1.683 1.531

Highest NAV (RM) 1.953 1.934 1.892 1.683 1.551

Lowest NAV (RM) 1.714 1.802 1.628 1.522 1.406

Total Annual Return (% p.a)

a) Capital Growth 2.64 1.54 12.42 9.94 5.22

b) Income Distributions - - - - -

Average Annual Return :

One-Year 2.64 1.54 12.42 9.94 5.22

Three-Year 5.53 7.97 9.20 9.64 3.07

Five-Year 6.35 8.58 6.32 2.96 8.96

Benchmark Performance (70% FBM Shariah Index : 30% 1-Month GIA Rates Maybank)


One-Year 2.66 -2.08 10.13 9.15 2.56

Three-Year 3.57 5.73 7.28 8.15 2.34

Five-Year 4.48 6.50 5.26 2.17 7.99

P a g e | 58

ISTIQRAR

Portfolio Composition 31-Dec-15 31-Dec-14 31-Dec-13 31-Dec-12 31-Dec-11

(%) (%) (%) (%) (%)

a. Equities: 33.92 31.20 34.28 29.38 29.64

● Construction 3.87 0.88 1.15 1.41 1.16



● Infrastructure 1.58 1.86 1.77 2.84 2.70

● Plantation 5.63 2.11 4.60 1.78 2.21

● Property 0.66 1.14 - - 1.19


● REITs 16.82 22.69 0.01 2.07 1.79



TOTAL 100.00 100.00 100.00 100.00 100.00


Total NAV (RM) 12,410,092 12,400,830 12,534,317 12,120,158 11,715,673

Number of units 8,611,777 8,751,945 8,904,600 9,203,208 9,423,878

NAV per Unit (RM) 1.441 1.417 1.408 1.317 1.243

Highest NAV (RM) 1.459 1.430 1.408 1.317 1.244

Lowest NAV (RM) 1.372 1.372 1.298 1.24 1.19


a) Capital Growth 3.50 2.70 6.91 5.95 4.45



One-Year 3.50 2.70 6.91 5.95 4.45

Three-Year 4.37 5.19 5.77 5.4 0.69

Five-Year 4.70 5.16 4.98 1.86 3.81

Benchmark Performance (30% FBM Shariah Index : 70% 1-Month GIA Rates Maybank)


One-Year 3.07 0.71 5.91 5.55 2.77

Three-Year 3.23 4.06 4.74 4.60 1.90

Five-Year 3.60 4.08 3.43 2.02 4.43

P a g e | 59

Portfolio Composition

myEQUITY INDEX


(%) (%) (%) (%) (%)

a. Equities: 93.47 77.61 92.00 93.83 94.38

● Construction 5.44 5.58 3.65 6.68 9.40



● Information Technology 5.79 - - - -

● Infrastructure 7.72 4.49 4.30 8.51 7.22

● Plantation 3.31 5.04 11.99 9.31 12.66

● Property 1.10 2.94 - 4.54 4.64


● Warrants 0.81 0.02 0.05 - -

b. Islamic Debt Securities - - - - -


TOTAL 100.00 100.00 100.00 100.00 100.00


Total NAV (RM) 21,199,201 15,781,182 12,377,753 7,722,366 5,058,579

Number of units 12,187,734 9,160,411 7,153,541 5,126,342 3,790,811

NAV per Unit (RM) 1.739 1.723 1.730 1.506 1.334

Highest NAV (RM) 1.828 1.785 1.730 1.506 1.351

Lowest NAV (RM) 1.523 1.625 1.432 1.320 1.178


a) Capital Growth 2.82 3.23 19.46 16.66 5.12



One-Year 2.82 3.23 19.46 16.66 5.12

Three-Year 8.50 13.12 13.75 13.17 -

Five-Year 9.46 12.44 - - -

Benchmark Performance (FBM Shariah Index)


One-Year 2.35 -4.17 13.29 11.85 2.41

Three-Year 3.82 6.99 9.18 10.82 -

Five-Year 5.15 8.32 - - -

P a g e | 60


myGROWTH


(%) (%) (%) (%) (%)

a. Equities: 78.90 81.63 87.57 87.97 71.33

● Construction 7.02 5.11 4.58 7.03 9.31

● Consumer Products 3.29 3.75 1.93 2.01 -



● Infrastructure 13.32 4.13 4.76 5.60 1.55

● Plantation 0.46 5.13 10.45 9.26 7.10

● Property 2.94 3.52 - 1.09 8.09


● REITS 0.01 - - 1.40 -



TOTAL 100.00 100.00 100.01 100.00 100.00


Total NAV (RM) 8,003,942 7,013,066 6,254,346 4,620,531 3,786,286

Number of units 5,912,989 5,177,770 4,510,356 3,867,556 3,383,972

NAV per Unit (RM) 1.3536 1.3545 1.387 1.195 1.119

Highest NAV (RM) 1.443 1.455 1.387 1.195 1.161

Lowest NAV (RM) 1.200 1.300 1.142 1.097 0.997


a) Capital Growth 1.89 1.16 19.98 9.26 2.77



One-Year 1.89 1.16 19.98 9.26 2.77

Three-Year 7.68 10.13 10.67 7.24 -

Five-Year 7.01 8.57 - - -



One-Year 2.35 -4.17 13.29 11.85 2.41

Three-Year 3.82 6.99 9.18 10.82 -

Five-Year 5.15 8.32 - - -

P a g e | 61


myBLUE CHIPS


(%) (%) (%) (%) (%)

a. Equities: 80.29 81.25 88.40 85.81 69.99

● Construction 7.21 5.04 2.94 7.84 8.92




● Infrastructure 13.65 4.11 4.35 5.36 4.14

● Plantation 0.41 5.96 11.60 7.49 8.58

● Property 3.17 3.28 - 2.06 3.79


● REITS 0.01 - - - -



TOTAL 100.00 100.00 100.00 100.00 100.00


Total NAV (RM) 7,547,029 6,832,540 6,067,297 4,579,614 3,672,455

Number of units 5,471,230 4,955,050 4,302,222 3,733,835 3,335,751

NAV per Unit (RM) 1.379 1.379 1.410 1.226 1.101

Highest NAV (RM) 1.470 1.452 1.410 1.226 1.131

Lowest NAV (RM) 1.220 1.324 1.174 1.095 0.997


a) Capital Growth 2.43 0.81 20.17 14.32 1.68



One-Year 2.43 0.81 20.17 14.32 1.68

Three-Year 7.80 11.77 12.06 8.18 -

Five-Year 7.88 9.11 - - -



One-Year 2.35 -4.17 13.29 11.85 2.41

Three-Year 3.82 6.99 9.18 10.82 -

Five-Year 5.15 8.32 - - -

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myDIVIDEND


(%) (%) (%) (%) (%)

a. Equities: 77.63 82.14 88.57 84.99 72.32

● Construction 6.88 4.51 3.01 5.08 4.31



● Information Technology 3.19 - 0.47 - -

● Infrastructure 12.81 5.38 4.36 9.78 6.58

● Plantation 0.44 5.1 11.71 6.84 5.34

● Property 2.89 3.13 - 2.27 5.35


● REITs 0.02 2.72 - 3.32 3.5



TOTAL 100.00 100.00 100.00 100.00 100.00


Total NAV (RM) 8,791,957 7,461,149 6,687,100 4,719,043 3,741,263

Number of units 5,975,763 5,036,643 4,487,083 3,638,863 3,306,250

NAV per Unit (RM) 1.471 1.481 1.490 1.297 1.132

Highest NAV (RM) 1.568 1.539 1.490 1.297 1.140

Lowest NAV (RM) 1.310 1.400 1.240 1.125 1.039


a) Capital Growth 1.55 3.06 18.21 17.95 6.29



One-Year 1.55 3.06 18.21 17.95 6.29

Three-Year 7.61 13.07 14.15 10.44 -

Five-Year 9.41 10.52 - - -



One-Year 2.35 -4.17 13.29 11.85 2.41

Three-Year 3.82 6.99 9.18 10.82 -

Five-Year 5.15 8.32 - - -

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myBALANCED


(%) (%) (%) (%) (%)

a. Equities: 37.06 31.84 38.89 37.48 31.51

● Construction 4.05 1.14 1.49 2.82 2.00




● Infrastructure 6.37 1.96 1.80 3.58 1.92

● Plantation 0.66 1.85 4.78 3.62 4.96

● Property 1.04 1.27 - 0.46 1.47


● REITs 0.01 1.08 - - -



TOTAL 100.00 100.00 100.00 100.00 100.00


Total NAV (RM) 7,656,683 6,725,771 5,146,369 4,141,321 3,458,390

Number of units 6,352,300 5,668,099 4,356,342 3,762,770 3,326,291

NAV per Unit (RM) 1.2053 1.1866 1.1810 1.1010 1.0400

Highest NAV (RM) 1.2220 1.2020 1.1810 1.1010 1.0540

Lowest NAV (RM) 1.1460 1.1470 1.1420 1.0380 0.9960


a) Capital Growth 2.89 2.58 10.23 7.88 4.18



One-Year 2.89 2.58 10.23 7.88 4.18

Three-Year 5.23 6.90 7.43 5.02 -

Five-Year 5.55 - - - -



One-Year 3.08 0.26 7.23 6.66 2.81

Three-Year 3.52 4.72 5.57 4.97 -

Five-Year 4.01 - - - -

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Documents

CONTENTS · It is my pleasure to present the Annual Report of Syarikat Takaful Malaysia Berhad’s Investment-Linked Funds (ILP Funds) for the financial year ended 31 December 2015