Fund Information

Fund Name
Public Islamic Asia Leaders Equity Fund (PIALEF)

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
mainly in stocks of companies with market capitalisation of US$1 billion
and above in domestic and regional markets that complies with Shariah
requirements.

Fund Performance Benchmark

The benchmarks of the Fund and their respective percentages are 90%
customised index by S&P Dow Jones Indices, LLC based on Top 100
constituents by market capitalisation of the S&P Shariah BMI Asia Ex-Japan
Index and 10% 3-Month Islamic Interbank Money Market (IIMM) rate.
The customised benchmark index for PIALEF is a product of S&P Dow Jones Indices LLC (SPDJI),
and has been licensed for use by Public Mutual Berhad. Standard & Poors and S&P are registered
trademarks of Standard & Poors Financial Services LLC (S&P); Dow Jones is a registered
trademark of Dow Jones Trademark Holdings LLC (Dow Jones); Standard & Poors, S&P and
Dow Jones are trademarks of the SPDJI; and these trademarks have been licensed for use by SPDJI
and sublicensed for certain purposes by Public Mutual Berhad. Public Mutual Berhads PIALEF is
not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates
and none of such parties make any representation regarding the advisability of investing in such
product(s) nor do they have any liability for any errors, omissions, or interruptions of the customised
benchmark index for PIALEF.

Fund Distribution Policy

Incidental

Breakdown of Unitholdings of PIALEF as at 30 November 2016

Size of holdings No. of % of No. of units
unitholders unitholders held (million)
5,000 and below 702 15.50 2
5,001 to 10,000 614 13.55 5
10,001 to 50,000 2,137 47.17 56
50,001 to 500,000 1,025 22.63 137
500,001 and above 52 1.15 63
Total 4,530 100.00 263
Note: Excluding Managers Stock.

Public Islamic Asia Leaders Equity Fund

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

Average Total Return for the Following Years Ended Distribution and Unit Split
30 November 2016
Financial year 2016 2015 2014
Average Total Date of distribution 30.11.16 30.11.15 28.11.14
Return of PIALEF (%)
Distribution per unit
1 Year 4.83 Gross (sen) 0.15 - -
3 Years 9.36 Net (sen) 0.15 - -
5 Years 9.70 Unit split - - -

Annual Total Return for the Financial Years Ended 30 November Impact on NAV Arising from Distribution (Final) for the
Year 2016 2015 2014 2013 2012 Financial Years
PIALEF (%) 4.83 15.42 5.90 9.36 6.04 2016 2015 2014
The calculation of the above returns is based on computation methods of Lipper. Sen Sen Sen
per unit per unit per unit
Notes:
Net asset value before distribution 32.80 31.29 27.10
1. Total return of the Fund is derived by this formulae: Less: Net distribution per unit (0.15) - -

( 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 Net asset value after distribution 32.65 31.29 27.10

Past performance is not necessarily indicative of future performance and unit

prices and investment returns may go down, as well as up.
The above total return of the Fund was sourced from Lipper.
2. Average total return is derived by this formulae:
Asset Allocation for the Past Three Financial Years
As at 30 November
Total Return (Per Cent of Net Asset Value)
Number of Years Under Review 2016 2015 2014
% % %
Other Performance Data for the Past Three Financial Years
Ended 30 November EQUITY SECURITIES
Quoted
2016 2015 2014 Malaysia
Unit Prices (MYR)* Basic Materials 0.6 - -
Highest NAV per unit for the year 0.3351 0.3270 0.2713 Communications 0.4 - 1.3
Lowest NAV per unit for the year 0.2786 0.2616 0.2421 Consumer, Cyclical - - 1.2
Net Asset Value (NAV) and Units in Consumer, Non-cyclical 1.2 - -
Circulation (UIC) as at the End of Diversified - - 1.0
the Year Energy - - 1.3
Total NAV (MYR000) 86,172 42,182 37,459 Financial - - 2.1
UIC (in 000) 263,961 134,794 138,212 Industrial - - 1.0
NAV per unit (MYR) 0.3265 0.3129 0.2710 Utilities 1.1 - -

Total Return for the Year (%) 4.83 15.42 5.90 3.3 - 7.9
Capital growth (%) 4.92 15.45 5.97 Outside Malaysia
Income (%) -0.09 -0.03 -0.07
Hong Kong
Management Expense Ratio (%) 1.86 1.86 1.87 Communications 14.5 16.2 8.9
Portfolio Turnover Ratio (time) 0.97 0.61 0.59 Consumer, Cyclical 1.3 6.8 2.6
* All prices quoted are ex-distribution.
Consumer, Non-cyclical 2.5 0.7 2.9
Notes: Management Expense Ratio is calculated by taking the total management expenses
Energy - 3.7 5.4
expressed as an annual percentage of the Funds average net asset value. Financial 1.4 - 3.3
Portfolio Turnover Ratio is calculated by taking the average of the total acquisitions and Industrial 5.1 6.2 2.2
disposals of the investments in the Fund for the year over the average net asset value Technology - 1.1 -
of the Fund calculated on a daily basis. Utilities 3.1 1.5 3.2
The Portfolio Turnover Ratio for the financial year 2016 rose to 0.97 time from 0.61 time in
the previous financial year on account of higher level of rebalancing activities performed 27.9 36.2 28.5
by the Fund during the year.
Public Islamic Asia Leaders Equity Fund Public Islamic Asia Leaders Equity 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
% % % % % %
Indonesia COLLECTIVE INVESTMENT
Communications 1.8 - - FUNDS
Consumer, Cyclical 1.7 - - Quoted
Consumer, Non-cyclical 1.4 - - Outside Malaysia
Financial - - 0.4 Hong Kong
Industrial - - 0.7 Financial 1.1 1.7 1.6

4.9 - 1.1 TOTAL QUOTED COLLECTIVE

INVESTMENT FUNDS 1.1 1.7 1.6
Korea
Basic Materials 1.5 1.3 1.3 SHARIAH-BASED PLACEMENTS
Communications 3.8 3.4 2.5 WITH FINANCIAL INSTITUTIONS 12.7 4.0 6.3
Consumer, Cyclical 3.9 2.4 4.0
Consumer, Non-cyclical 3.2 10.0 3.4 OTHER ASSETS & LIABILITIES 10.5 2.2 9.1
Industrial 0.5 5.4 -
Technology 1.7 9.4 12.1
14.6 31.9 23.3
Singapore
Communications 2.4 2.3 2.6
Consumer, Non-cyclical 0.6 - 0.6
3.0 2.3 3.2
Taiwan
Basic Materials 3.0 - 1.9
Communications 3.8 0.7 1.2
Consumer, Cyclical 0.7 1.8 -
Energy 0.8 - -
Industrial 2.9 7.5 3.0
Technology 9.0 8.6 10.9
20.2 18.6 17.0
Thailand
Communications - - 0.9
Consumer, Non-cyclical - 1.6 0.3
Energy - - 0.8
Financial 0.5 - -
Industrial 1.3 1.5 -
1.8 3.1 2.0
TOTAL QUOTED EQUITY
SECURITIES 75.7 92.1 83.0

Public Islamic Asia Leaders Equity Fund Public Islamic Asia Leaders Equity Fund
Statement Of Distribution Of Returns Managers Report
For the Financial Year Ended 30 November 2016

Sen Per Unit Overview

Gross Distribution 0.1500 This Annual Report covers the financial year from 1 December 2015 to
Net Distribution 0.1496 30 November 2016.
Total Returns 1.5100
Public Islamic Asia Leaders Equity Fund (PIALEF or the Fund) seeks to
achieve capital growth over the medium to long term period by investing
Effects of Distribution on NAV per unit before and after mainly in stocks of companies with market capitalisation of US$1 billion
Distribution: and above in domestic and regional markets that complies with Shariah
Before After requirements.
Distribution Distribution For the financial year under review, the Fund registered a return of +4.83% as
NAV per unit (MYR) 0.3280 0.3265 compared to its Benchmarks return of +9.23%. The Funds Shariah-compliant
equity portfolio registered a return of +8.37% while its Islamic money market
portfolio registered a return of +3.08% 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 has generated
a return of +48.58% as compared to the Benchmarks return of +66.63%
over the same period. The Funds holdings of selected stocks were adversely
affected by the volatility in the regional markets following the sovereign debt
crisis of the developed economies in 2011 and 2012. Nevertheless, it is the
opinion of the Manager that the Fund has met its objective to seek capital
growth over the said period.

Performance of PIALEF
from 30 November 2011 to 30 November 2016
80%

PIALEF BENCHMARK

60%
Returns from Start of Period

40%

20%

0%

-20%
2011 2012 2013 2014 2015 2016

The Benchmark of the Fund is a composite index of 90% customised index

by S&P Dow Jones Indices, LLC based on Top 100 constituents by market
capitalisation of the S&P Shariah BMI Asia Ex-Japan Index and 10% 3-Month
Islamic Interbank Money Market (IIMM) rate.

Income Distribution and Impact on NAV Arising from Distribution

The gross distribution of 0.15 sen per unit (net distribution of 0.15 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 RM0.3265 from RM0.3280 after distribution.

Public Islamic Asia Leaders Equity Fund Public Islamic Asia Leaders Equity Fund
Managers Report Managers Report

Effect of Distribution Reinvestment on Portfolio Exposures Country Allocations

In terms of country allocation within the Shariah-compliant equity portfolio, the
30-Nov-16
Before Distribution After Distribution Funds Shariah-compliant equity investment in Malaysia accounted for 3.3% of
Reinvestment* Reinvestment* the NAV of the Funds Shariah-compliant equity portfolio. Other than Malaysia,
the top 5 countries accounted for 71.7% of the NAV of the Fund and 93.4%
Shariah-compliant Equities 76.8% 76.4% of the Funds Shariah-compliant equity portfolio. The weightings of the top 5
Islamic Money Market 23.2% 23.6% countries excluding Malaysia are in the following order: Hong Kong (29.0%),
* Assumes full reinvestment. Taiwan (20.2%), Korea (14.6%), Indonesia (4.9%) and Singapore (3.0%).

Change in Portfolio Exposures from 30-Nov-15 to 30-Nov-16 Islamic Money Market Portfolio Review
Average During the financial year under review, the Funds Islamic money market
30-Nov-15 30-Nov-16 Change Exposure portfolio, which was invested primarily in Islamic deposits, yielded a return of
+3.08%. In comparison, the 1-Month Islamic Interbank Money Market Rate
Shariah-compliant
Equities 93.8% 76.4% -17.4% 85.67% (1M-IIMMR) registered a return of +3.53% over the same period.
Islamic Money Market 6.2% 23.6% +17.4% 14.33% During the financial year under review, the Funds exposure to Islamic money
market investments increased from 6.2% to 23.6% following the inflow of
Returns Breakdown by Asset Class
new funds. Based on an average exposure of 14.33%, the Islamic money
Market / market portfolio is estimated to have contributed +0.44% to the Funds overall
Returns On Benchmark Benchmark Average Attributed returns for the financial year under review.
Investments Returns Index Used Exposure Returns
Stock Market Review
Shariah-
compliant Equity Commencing the financial year under review at 12,506.87 points, the
Equities 8.37% 9.79% Benchmark 85.67% 7.17% FTSE Bursa Malaysia EMAS Shariah (FBMS) Index rebounded in late
Islamic Money December 2015 in tandem with global equity markets. However, the
Market 3.08% 3.53% 1M-IIMMR 14.33% 0.44% Index retraced to a 4-month low of 12,105.60 points in mid-January 2016
less: following the retracement in regional and global markets as well as lower
Expenses -2.78% crude oil prices, which fell below US$40/barrel. The revised 2016 budget
announcement on 28 January coupled with reduced volume of foreign
Total Net
selling in February 2016 helped to lift market sentiment. The FBMS Index
Return for
the Year 4.83% continued its uptrend in March 2016 in tandem with higher regional markets
and firmer global sentiment.
1M-IIMMR = 1-Month Islamic Interbank Money Market Rate
Following declines in the regional markets, the FBMS Index retraced towards
Shariah-compliant Equity Portfolio Review 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
For the financial year under review, the Funds Shariah-compliant equity portfolio further dampened by uncertainties arising from the Brexit vote in June 2016.
registered a return of +8.37% as compared to its equity Benchmarks return Subsequently, the FBMS Index rose in July 2016 amid buoyant global markets
of +9.79%. The Fund lagged the equity Benchmark as it was overweighted and the unexpected move by Bank Negara Malaysia (BNM) to reduce the
on selected stocks in the Indonesia, Taiwan and Korea markets which Overnight Policy Rate (OPR) by 25 basis points (bps). The Index continued to
underperformed the broader markets over the financial year under review. rise in August 2016 amid higher oil prices and firmer regional markets to touch
The Fund commenced the financial year under review with a Shariah-compliant a high of 12,596.80 points in mid-August. The Index subsequently eased on
equity exposure of 93.8% and this was reduced to below 75% in January 2016 the back of lacklustre global sentiment and weak corporate earnings for the
to weather the consolidation phase in the domestic and regional markets. second quarter of 2016. Profit-taking activities continued in September 2016
The Funds Shariah-compliant equity exposure increased to above 90% in and the market remained in a tight trading range in October 2016. Investor
June 2016 to capitalise on Shariah-compliant investment opportunities in the sentiment turned cautious ahead of the U.S. presidential election in
domestic and regional equity markets. Subsequently, the Funds Shariah- November 2016. Despite the initial concerns over a Trump presidency,
compliant equity weight decreased due to inflow of new money and ended Donald Trumps victory sent the U.S. market to a rally on expectations
the financial year under review with a Shariah-compliant equity exposure of that the president-elect will deliver on his pledges of fiscal stimulus and
76.4%. Based on an average Shariah-compliant equity exposure of 85.67%, deregulations of the financial market. For the Malaysia market, foreign fund
the Shariah-compliant equity portfolio is deemed to have registered a return of outflow continued in November 2016 amid anticipation of a rising interest
+7.17% to the Fund as a whole for the financial year under review. A full review rate environment in the U.S. going forward. The FBMS Index closed at
of the performance of the equity markets is tabled in the following sections. 11,901.19 points and registered a decline of 4.84% for the financial year
under review.
Public Islamic Asia Leaders Equity Fund Public Islamic Asia Leaders Equity Fund
Managers Report
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 Renminbis 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.
Regional markets, namely the Taiwan, Indonesia, Thailand, Singapore,
Hong Kong and Korea markets registered returns of +21.03%, +20.47%,
+13.13%, +2.49%, +2.40% and -8.11% (in Ringgit terms) respectively for
the financial year under review.
S&P Shariah BMI Asia Ex-Japan Index
(30 November 2015 - 30 November 2016)
95
90
85
Index
80
75
70
Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16
Islamic Money Market Review
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.
Public Islamic Asia Leaders Equity Fund
Managers Report
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.
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. After registering an inflation rate of -0.5% in 2015, Singapore
recorded an inflation rate of -0.7% in the first ten months of 2016 on the
back of lower housing and transportation costs.
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. The
inflation rate slowed from 6.4% in 2015 to 3.6% in the first ten months of
2016 amid moderating housing and transportation costs. To support domestic
economic activities, Bank Indonesia (BI) reduced its new benchmark interest
rate (BI 7-day Reverse Repo Rate) by 25 bps to 4.75% on 20 October 2016.
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.
Thailand registered a positive inflation rate of 0.05% in the first ten months
of 2016 compared to -0.9% in 2015 due to higher food prices. The Bank of
Thailand maintained its policy interest rate of 1.50% to support economic
growth.
Public Islamic Asia Leaders Equity Fund
Managers Report
South-East Asia's GDP Growth
8.0
7.0
6.0
5.0
% 4.0
3.0
2.0
1.0
0.0
2011 2012 2013 2014 2015 2016F
Malaysia Singapore Indonesia Thailand
Source: Bloomberg
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.
After registering a growth of 8.3% in 2015, growth in the services sector
eased to 7.6% in the first three quarters of 2016 as financial services growth
decelerated from 15.9% to 6.3% over the same period. Chinas inflation rate
rose to 2.0% in the first ten months of 2016 from 1.4% in 2015 due to higher
food and housing costs. To support Chinas economic activities and ease credit
conditions, the Peoples Bank of China (PBoC) trimmed the lending rate to
4.35% on 24 October 2015. This was the sixth rate cut since November 2014.
To inject liquidity into the banking system, the Chinese central bank
lowered the required reserve ratio by 50 bps to 17.0% with effect from
1 March 2016 following a 250 bps cut in 2015.
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.
Meanwhile, Hong Kongs inflation rate edged down from 3.0% in 2015 to
2.7% in the first ten months of 2016 amid moderating food and housing
costs. To curb elevated residential property prices, Hong Kongs government
introduced more tightening measures in February 2015. Consequently,
property prices rose by a smaller magnitude of 4.4% in the first ten months
of 2016 compared to an increase of 5.2% in 2015.
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. The inflation rate
in South Korea edged up from 0.7% in 2015 to 0.9% in the first ten months
of 2016 amid smaller declines in transportation and housing costs. To boost
economic growth and mitigate deflationary pressures, the Bank of Korea
reduced its benchmark interest rate by 25 bps to a record low of 1.25% on
9 June 2016 following a reduction of 50 bps in 2015.
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. Taiwans
inflation rate increased from -0.3% in 2015 to +1.3% in the first ten months of
2016 on the back of higher food prices. On 30 June 2016, the Bank of Taiwan
reduced its discount rate from 1.5% to 1.375% to support domestic demand.
Public Islamic Asia Leaders Equity Fund
Managers Report
North Asias GDP Growth
12.0
10.0
8.0
6.0
% 4.0
2.0
0.0
-2.0 China Hong Kong Taiwan South Korea
2017F -4.0
2011 2012 2013 2014 2015 2016F 2017F
Source: Bloomberg
On the international front, U.S. GDP growth eased from 2.6% in 2015 to 1.5%
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 Federal Open Market Committee (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.
Public Islamic Asia Leaders Equity Fund
Managers Report Managers Report

Global and regional markets generally closed higher in 3Q 2016 amid The budget deficit is projected to widen to RM40.3 billion (3.0% of GDP) in
expectations of fresh monetary and fiscal easing around the world following 2017 from RM38.7 billion (3.1% of GDP) estimated for 2016 with revenue
the Brexit outcome. However, renewed concerns over the timing of the expanding by 3.4% to RM219.7 billion. Meanwhile, operating expenditure and
Federal funds rate hikes weighed on global markets in October 2016. net development expenditure will see a growth of 3.7% to RM214.8 billion
Following the U.S. election on 8 November 2016, global markets generally and 2.4% to RM45.3 billion in 2017 respectively.
trended higher on optimism that the U.S. economy will benefit from the fiscal
stimulus policies of the new U.S. administration. 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
Looking ahead, the performance of equity markets will depend on the of 15.9x. The markets dividend yield of 3.18% is above the 12-Month fixed
economic growth momentum in the U.S., Europe and Asia Pacific region. deposit rate of 3.11%.
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
In North Asia, Chinas GDP growth is estimated to ease from 6.7% in 2016 medium to long term period by investing mainly in stocks of companies with
to 6.4% in 2017 as economic growth continues to moderate. Meanwhile, market capitalisation of US$1 billion and above in domestic and regional
Chinas inflation rate is projected to inch up from 2.0% in 2016 to 2.1% in markets that complies with Shariah requirements.
2017 due to higher food prices. The Chinese central bank has the flexibility
to further cut the one-year lending rate to support domestic demand. In Note: Q = Quarter
addition, the Chinese government may unveil more stimulus measures such
as further fiscal spending in the event the economy grows at a weaker-than- Policy on Soft Commissions
expected pace.
The management company may receive goods or services which include
Hong Kongs GDP growth is projected to gain pace from 1.3% in 2016 to research materials, data and quotation services and investment related
1.7% in 2017 amid a moderate firming of domestic demand. Going forward, publications by way of soft commissions provided they are of demonstrable
the Hong Kong government is anticipated to maintain its existing tightening benefit to the Fund and unitholders.
stance on the residential property market. However, ample liquidity, demand
for better living standards and resilient economic growth will lend support to During the financial year under review, PIALEF has received data and
Hong Kongs property market over the long term. quotation services by way of soft commissions. These services were used
to provide financial data on securities and price quotation information to the
South Koreas GDP growth is envisaged to ease from 2.7% in 2016 to 2.6% Fund Manager during the financial year under review.
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.

Public Islamic Asia Leaders Equity Fund Public Islamic Asia Leaders Equity 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 66,171 39,554 Profit from Shariah-based placements 99 51
Due from brokers/financial institutions, net 3,347 - Dividend income 775 807
Due from the Manager, net 5,958 - Dividend income from non-permissible
Other receivables 31 19 securities 31 -
Shariah-based placements with financial Net gain from investments 3,194 5,215
institutions 10,933 1,690 Net realised gain on sale of
Cash at banks 1,739 1,069 non-permissible securities 8 15
Net realised/unrealised foreign exchange
88,179 42,332
(loss)/gain (416) 504
Liabilities Non-permissible income 1 -
Due to brokers/financial institutions, net 1,561 -
3,692 6,592
Due to the Manager, net - 110
Due to the Trustee 4 2 Less: Expenses
Other payables 47 38 Trustees fee 30 25
Distribution payable 395 - Management fee 810 683
Audit fee 7 7
2,007 150
Tax agents fee 3 5
Total net assets 86,172 42,182 Brokerage fee 368 187
Administrative fees and expenses 64 52
Net asset value (NAV) attributable Payment to charitable bodies 11 23
to unitholders (Total equity) 86,172 42,182
1,293 982
Units in circulation (in 000) 263,961 134,794 Net income before taxation 2,399 5,610
Taxation (83) (99)
NAV per unit, ex-distribution (in sen) 32.65 31.29
Net income after taxation 2,316 5,511
Net income after taxation is made up as
follows:
Realised 1,036 1,211
Unrealised 1,280 4,300
2,316 5,511
Final distribution for the financial year 395 -

Public Islamic Asia Leaders Equity Fund Public Islamic Asia Leaders Equity 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

Unitholders Retained 2016 2015

capital earnings Total MYR000 MYR000
MYR000 MYR000 MYR000
Cash flows from operating activities
As at 1 December 2014 35,236 2,223 37,459 Proceeds from sale of investments 29,981 23,079
Creation of units 5,943 - 5,943 Purchase of investments (55,660) (25,888)
Cancellation of units (6,731) - (6,731) Subscription of rights (32) -
Net income after taxation - 5,511 5,511 Cash received from capital distribution 7 2
Maturity of Shariah-based placements 799,575 395,022
As at 30 November 2015 34,448 7,734 42,182 Shariah-based placements (808,818) (394,340)
Profit from Shariah-based placements
received 99 52
As at 1 December 2015 34,448 7,734 42,182 Net dividend income received 713 734
Creation of units 46,217 - 46,217 Interest received from foreign currency
Cancellation of units (4,148) - (4,148) accounts 1 1
Net income after taxation - 2,316 2,316 Non-permissible income received 1 -
Distribution - (395) (395) Trustees fee paid (28) (25)
Management fee paid (767) (672)
As at 30 November 2016 76,517 9,655 86,172 Audit fee paid (7) (7)
Tax agents fee paid (3) (4)
Payment of other fees and expenses (58) (73)
Payment to charitable bodies (12) (24)
Net cash outflow from operating activities (35,008) (2,143)
Cash flows from financing activities
Cash proceeds from units created 40,224 5,874
Cash paid on units cancelled (4,266) (6,737)
Net cash inflow/(outflow) from financing
activities 35,958 (863)
Net increase/(decrease) in cash and cash
equivalents 950 (3,006)
Effect of change in foreign exchange rates (280) 489
Cash and cash equivalents at the beginning
of the financial year 1,069 3,586
Cash and cash equivalents at the end of the
financial year 1,739 1,069

Public Islamic Asia Leaders Equity Fund Public Islamic Asia Leaders Equity Fund