takafulink funds report 2008

8/14/2019 Takafulink Funds Report 2008

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CONTENTSCEOs Message 02Fund Objectives 04Investment Review 05Fund Perormance 09Investment Outlook 10

Financial Highlights 12Details o Investments 16

Statement o Assets and Liabilities 23Statement o Changes in Net Asset Value 26Statement o Income and Expenditure 29Notes to the accounts 32Statement by Directors 34Auditors Report 35


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A ourishing tree needs the right essentialsto grow and having a proper mix onutrients, environment and care allows itto bloom with ease. Like a tree, PrudentialBSN Takaul takes great steps in caring orour valued stakeholders.

With a steadast ocus, we nurture ourcommitment to serve you better. Providingyou with a wide range o Shariah-compliantinvestments, our intention in oering theattention that you need reects on ourdetermination to tailor our products andservices to ft your liestyle. Changing andimproving your lives so that you could reapthe rewards o your labour.

Harvesting opportunitiesof growth

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CEOS MESSAGE

May Peace be Upon You..

Im pleased to share that Prudential BSN Takaul Berhad (PruBSN) made excellentprogress in 2008 whilst competing eectively in a challenging environment.The company would not be where it is today without your steadast and continuoussupport, which I am proud to share has made us the No. 1* Takaul operator in the

market or the second year running.

I must say that we are truly blessed to have an insightful

and capable investment team that has done a commendable

work in managing our investments. Through your steadfast

and continuous support, we are still the No. 1* Takafuloperator in the market for the second year running.

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In acing the turbulent economic climate, I must say that we are truly blessed to havean insightul and capable investment team that has done a commendable work inmanaging our investments. We expect our growth to continue in 2009 and hope tosee nothing less than brighter and positive results in many years ahead.

Thank you or putting your TRUST in us and we look orward to serving you betterin 2009!

Sincerely,

Mohamad Salihuddin AhmadChie Executive Ofcer

PruBSN Takaul Berhad

*in terms o regular contribution

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The Takafulink Dana EkuitiFund aims to maximise returns over medium to long term by investing

in high quality Syariah approved shares listed on the Kuala Lumpur Stock Exchange.

The Takafulink Dana Bon fund aims to provide medium to long term accumulation o capitalby investing in selected Islamic Private Debt Securities (IPDS) and Islamic Financing Facilities(IFF)

The Takafulink Dana Urus fund seeks to maximise returns over medium to long term by

investing in Shariah-approved shares and Islamic Private Debt Securities (IPDS) and IslamicFinancing Facilities (IFF) through Takaulink Dana Ekuiti and Takaulink Dana Bon and in anyother such Takaulink unds that may become available in the uture.

FUND OBJECTIVES4


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The FTSE Bursa Malaysia EMAS Shariah Index (FBMSHA) declined 43.52% during theperiod under review, rom 10,533.10 as o 31 Dec 2007 to 5,949.63 as o 31 Dec2008. The FBMSHA outperormed the MSCI Asia Pacifc ex-Japan (MXAPJ) index, whichdeclined by 53.3% during the same period.

The market was very volatile during the year due to global uncertainties arising rom the USsubprime issues, volatility in commodity prices as well as domestic political issues. Despitethe domestic political uncertainty stemming rom the unexpected General Election results,Malaysia was still airly resilient predominantly due to the relatively healthy crude palm oil(CPO) prices or that period which held up the plantation stocks. Malaysia outperormed mostregional bourses in the 1H o the period under review (KLCI: -17.89%, FBMSHA: -18.48%,MxAPJ: -18.82%).

The uncertainty rom the unexpected Malaysian General Elections results in March continuedinto the 2H2008. Consumer sentiment worsened as the government announced drasticenergy subsidy reductions and introduced windall taxes on Independent Power Producers(IPPs). This added to the uncertainty in the local equity markets. Investors incorporated higherrisk premiums to certain industries to account or potential government policy changes.

However, as crude oil prices declined rom highs o USD145/barrel in July 2008 toUSD44/barrel as at 31 Dec 2008, the government reduced petrol prices rom the high oRM2.70/litre o petrol in June 2008 to RM1.80/litre by end o 2008. In tandem with the

INVESTMENT REVIEW 5


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alling crude oil prices, all orms o commodities have been experiencing sharp declines inprices, and CPO has not been spared, diving rom about RM3,100/ton to end the periodat RM1,630/ton. The 2009 Budget announced in August provided some relie measuresor the population as prices o general goods escalated. The government then announceda stimulus package o RM7bn ocusing on high multiplier projects, and revised down their

2008 and 2009 GDP estimates or Malaysia to 5% and 3.5% respectively.The 2H also saw the US subprime issue morph into a fnancial crisis when USs Fannie Maeand Freddie Mac had to be taken over by the US Treasury, and not long ater, LehmanBrothers fled or bankruptcy and AIGs unding shortage required an emergency US$85bnloan rom the US treasury. A US$700 billion bank rescue plan was fnally approved by theUS House o Representatives to buy toxic mortgage related assets rom the ailing fnancial

sector. Global markets reeled rom the collapse o once respected fnancial institutions. Thetightened credit conditions subsequently resulted in currency instability or certain countries,and central banks globally made a concerted eort to cut rates and improve liquidity. Theelection o Barack Obama as the next president o the United States o America brought ashort reprieve but despite the US treasurys eorts at providing liquidity, Citigroup announcedthat they also needed fnancial aid rom the US government.

2008 ended with the US ofcially slipping into recession, out-going US President Bushannouncing a rescue package or the auto makers, US Fed rates at 0-0.25%, Malaysias OPRat 3.25% (reduced by 25bps) and a weaker ringgit against the US Dollar o RM3.4545/USD (down 4.39% during 2008).

INVESTMENT REVIEW (cont.)6


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For the one-year under review, the US Federal Reserve cut its Fed Fund rate 7 times rom4.25% to a range o 0%-0.25% in December 2008 in its eorts to rescue the fnancialmarket rom urther deterioration. During the period, the 2-year and 10-year UST yields ellsubstantially by 326bps and 85bps to 0.77% and 2.21% respectively.

Domestically, inationary pressures have eased as reported by the Consumer Price Indexwhich had allen rom a near 27-year high o +8.5% year-on-year (yoy) in July 2008 to+5.7% year-on-year (yoy) in November 2008 mainly due to the cuts in uel prices by theGovernment. Inationary pressures is expected to ease urther into 2H 2009 due to thedecline in uel prices, giving BNM more room to implement an accommodative monetarypolicy to boost economic growth.

Despite some slowdown, the Malaysian economy had or most part o the year, displayedsurprising resilience to the global fnancial turmoil. However heightened downside risks togrowth and diminishing inationary pressures saw BNM cutting the Overnight Policy Rate orthe frst time since April 2006 by 25bps to 3.25% at its Monetary Policy Committee meet on24 November 2008. BNM had also reduced the Statutory Reserve Requirement o bankinginstitutions rom 4.0% to 3.5% with eect rom 1 December 2008 to urther reduce the cost

o intermediation, and this would add liquidity into the domestic fnancial system.Sovereign bond yields ell in January 2008 due to the RM appreciation and investorsrebuilding portolios. Subsequently, proft taking activities and inationary concerns sawsovereign bonds weaken into 2Q 2008, particularly in June, when heightened inationarypressures due to a sharp increase in uel prices, elevated ood prices and the governments

BOND MARKET 7


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indication o an increase in electricity taris, led to a sell down in sovereign bonds. Sovereignbond yields were volatile in July but consolidated as OPR was held at 3.50% on 25 July.The end August Budget announcement o an enlarged fscal defcit o 4.8% o GDP in2008 saw Bank Negara Malaysia add two more public issues and fve private placementso sovereign bonds. Market initially reacted negatively, but bargain-hunting activities soon

saw support return or the sovereign bonds, and yields closed lower in the quarter endingSeptember 2008. Speculation o an imminent rate cut led to a rally in the sovereign bonds,which intensifed when BNM cut rates by 25bps with accompanying dovish statementon 24 November. For the 1-year period, sovereign yields closed signifcantly lowerwith the 3-year and 10-year yields alling by 46bps and 75bps to closed at 3.13% and3.24% respectively.

Corporate bond yields generally moved in tandem with sovereign bond yields, albeit at a lag.Apart rom ination concerns, sentiment on corporate bonds was urther weakened due to therising regulatory risk, political uncertainty and in particular, the governments announcementin early June 2008 o a windall tax levy to be paid by Independent Power Producers (IPP).This created signifcant disruption to the domestic bond market in 2Q 2008 and 3Q 2008and led to scarce trading on power bonds. However, the governments announcement in

September 2008 to discontinue the windall proft levy on IPP, although power producerswould still have to make a one-time payment o one years tax levy to the government, cameas a relie to the bond market. Weak sentiment and risk aversion constrained trading ocorporate bonds to high grade liquid papers and yields closed marginally lower.

BOND MARKET (cont.)8


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Takafulink Dana Ekuiti

As at 31 December 2008, the Funds Net Asset Value per unit depreciated by 35.37% toRM0.8777 as compared to RM1.3581 as at 31 December 2007. The weak perormancewas due to market uncertainty caused by US fnancial crisis and ear o global economicslowdown.

Takaful Dana Bon

As at 31 December 2008, the Net Asset Value per unit o Takaul Dana Bon increased toRM1.0603 rom RM1.0415 as at on 31 December 2007, recording a return o 1.81%or the period. The commendable return was achieved in a period o uncertainties in theglobal credit markets. In addition, our meticulous selection o quality issues has enabled us

to achieve a good return.

Takafulink Dana Urus

As at 31 December 2008, the Net Asset Value per unit o the Takaulink Dana Urus wasRM0.9156 compared to RM1.2921 as at 31 December 2007, recording a return o-29.14% or the period.

FUND PERFORMANCE 9


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Equity

2009 should be a less volatile year or global markets although a global fnancial meltdowno this magnitude is unlikely to be overcome in a matter o months. The US still needs to de-leverage, US home prices are likely to continue to be weak given the large inventory build upo homes, and trust between banks and customers need to be regained or credit to become

available. The speed o recovery will be dictated by how quickly and eectively governmentso major economies respond to these issues.

On the domestic ront, the local bourse is likely to take cue rom regional and global newsow,although we expect local investors to closely watch the result o the Kuala Terengganu by-election slated or 17th January 2009. Another political milestone to watch would be theUMNO General Assembly slated to be held in March 2009, where although the UMNOpresident is more or less a given, the deputy president position and UMNO youth headshave yet to be decided.

Given that plantation stocks are heavy weights on the KLCI, we may see positive contributionsto the index with sentiment improving or crude oil prices and hence related commodities suchas CPO. Commodities may also see a mini rally during the year i the US Dollar weakens

more substantially or as a result o increasing geopolitical tensions in the Middle East.

Some events or actors that may lend support to the local bourse include: Faster-than-expected implementation o stimulus initiatives. More consumer-riendly policies announced. More M&As and capital management activities. Evidence o some bottoming o the global economic slowdown.

INVESTMENT OUTLOOK10


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Bond

The global fnancial crisis has intensifed to new levels, with the collapse o some key fnancialinstitutions in the US and Europe. Whilst the outlook or global ination has eased, the risksto global economic growth has increased signifcantly with major industrial economies nowexperiencing a recession and central banks around the world are struggling to rescue their

economies with aggressive and unprecedented policy responses in their bid to stabilize thecore global fnancial system and to boost economic activity.

Envisaging that the sharper deterioration o the global economy will have a greater impact onthe Malaysian economy, BNM had taken pre-emptive measures to achieve positive economicgrowth in 2009, by providing a more supportive monetary environment or the domesticeconomy. In the Monetary Policy Committee (MPC) meeting on 21st January 2009, BNMreduced the Overnight Policy Rate (OPR) by 75bps to 2.50%, and also reduced the StatutoryReserve Requirement (SRR) by 150bps rom 3.5% to 2.0% with eect rom 1 February 2009,which was higher than market expectations. Going orward, BNM could potentially cut ratesurther i economic conditions continue to deteriorate.

Whilst the governments announcement to discontinue the windall proft levy on Independent

Power Producers was welcomed, valuation o power related bonds has not reected thedismissal o regulatory risks and whilst there may be a gradual upside to the valuation, it islikely that these bonds will continue etch a higher risk premia compared to the pre-windallproft levy days.

The combination o a growth slowdown, moderating ination, ample liquidity in the domesticfnancial system and an accommodative monetary policy, is positive or the bond market.

However, the risk o a weakening credit cycle remains in the wake o a slowing globaleconomy.

INVESTMENT OUTLOOK (cont.) 11


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Category 2008 2007

% %

Shariah Approved SharesBuilding Materials 1.20 6.77Conglomerates 10.86 13.15

Construction 8.43 8.47Consumer 2.25 1.55Industrial 2.39 3.66Media 1.25 3.14Motor 1.66 3.76Oil & Gas 6.21 10.24

Plantation 8.44 6.57Power 8.52 7.04Property 2.07 5.30Technology - 3.31Telecommunications 10.64 4.35Timber - 0.41

Transportation 4.24 4.37Water 1.08 2.07

69.25 84.16

Cash and Deposits 28.86 18.63Other Assets 2.35 (0.01)Total Liabilities (0.46) (2.78)

Total 100.00 100.00

FINANCIAL HIGHLIGHTSFor the fnancial year ended 31 December 2008

TA K A F U L I N K D A N A E K U I T I12


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Category 2008 2007

% %

Total Net Asset Value (RM) 39,816,472 22,179,240Units in Circulation 45,362,268 16,330,676NAV Per Unit (RM) 0.8777 1.3581

Highest NAV per unit (RM) 1.406 1.363Lowest NAV per unit (RM) 0.844 0.983Total Return(*)- Capital Growth -35.37% 35.81%

Average Annual Return - Fund(*)

PeriodOne year -35.37%Average Annual Return-Benchmark: FTSE-Bursa Malaysia Emas Shariah Index (FBMSHA)

PeriodOne year -43.52%

* The und returns are calculated based on fve decimal place


TA K A F U L I N K D A N A E K U I T I ( c o n t . ) 13


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Category 2008 2007

% %

Islamic Debts Securities 63.11 85.40Government Bonds 10.88 0.00

73.99 85.40

Cash and Deposits 25.35 14.16Other Assets 1.25 1.07Total Liabilities (0.59) (0.63)

Total 100.00 100.00

Total Net Asset Value (RM) 15,528,062 11,704,512

Units in Circulation 14,645,091 11,238,402NAV Per Unit (RM) 1.0603 1.0415Highest NAV per unit (RM) 1.060 1.043Lowest NAV per unit (RM) 1.025 1.000Total Return(*)- Capital Growth 1.81% 4.15%


Period

One year 1.81%

Average Annual Return - Benchmark: MBB 1 month Tier 2 Islamic Deposit rate

Period

One year 2.90%* The und returns are calculated based on fve decimal place 100.00

TA K A F U L I N K D A N A B O N14


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TA K A F U L I N K D A N A U R U S

Category 2008 2007

% %

Investment inTakafulink Dana Ekuiti 76.83 84.84Takafulink Dana Bon 23.17 15.16

Other Assets - -Total 100.00 100.00

Total Net Asset Value (RM) 9,031,083 3,047,901Units in Circulation 9,864,080 2,358,805NAV Per Unit (RM) 0.9156 1.2921Highest NAV per unit (RM) 1.331 1.292

Lowest NAV per unit (RM) 0.885 0.987Total Return(*)- Capital Growth -29.14% 29.21%


Period

One year -29.14%

Average Annual Return-Benchmark: 80% FBMSHA + 20% MBB 1 month Tier 2

Islamic Deposit rate.

Period

One year -35.97%

* The und returns are calculated based on fve decimal place

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Equities Quantity Cost Market % of(RM) Value (RM) Fund

Building MaterialsLAFARGE MALAYAN CEMENT BHD 90,900 459,985 359,722 0.90%YTL CEMENT BHD 50,000 257,785 118,017 0.30%

717,770 477,739 1.20%ConglomeratesMMC CORPORATION BERHAD 61,600 124,144 64,346 0.16%SIME DARBY BERHAD 625,298 4,729,294 3,265,856 8.20%YTL CORPORATION BERHAD 140,300 903,335 993,467 2.50%

5,756,773 4,323,669 10.86%

ConstructionGAMUDA BHD 267,000 457,544 506,850 1.27%IJM CORP BHD 196,060 760,853 551,383 1.38%IJM LAND BERHAD WARRANT 1 5,360 - 1,023 0.00%LINGKARAN TRANS KOTA HLDGS 194,000 352,332 356,582 0.90%PLUS EXPRESSWAYS BHD 433,200 1,204,819 1,296,616 3.26%

PRINSIPTEK CORPORATION BHD 50,000 45,952 25,362 0.06%WCT BHD 407,532 1,086,609 622,174 1.56%

3,908,109 3,359,990 8.43%

ConsumerMAMEE DOUBLE DECKER BERHAD 31,400 90,445 56,453 0.14%NESTLE (MALAYSIA) BERHAD 26,400 715,230 715,936 1.80%

PARKSON HOLDINGS BHD 31,000 153,692 123,923 0.31%

959,367 896,312 2.25%

TA K A F U L I N K D A N A E K U I T I

DETAILS OF INVESTMENTas at 31 December 2008

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Equities Quantity Cost Market % of

(RM) Value (RM) Fund

IndustrialASIA FILE CORP BHD 32,000 186,819 151,062 0.38%

CHEMICAL CO OF MALAYSIA BERHAD 13,000 43,149 28,726 0.07%

PPB GROUP BERHAD 82,700 732,900 772,494 1.94%962,868 952,282 2.39%

Media

STAR PUBLICATIONS (MALAYSIA) 152,800 499,738 497,250 1.25%

499,738 497,250 1.25%

MotorUMW HOLDINGS BHD 128,000 749,999 662,100 1.66%

749,999 662,100 1.66%Oil & Gas

PANTECH GROUP HOLDINGS BERHAD 220,050 238,643 92,828 0.23%

PETRA ENERGY BHD 70,000 245,543 89,291 0.22%PETRA PERDANA BERHAD 85,000 326,572 106,718 0.27%PETRONAS DAGANGAN BHD 110,900 748,478 801,993 2.01%

PETRONAS GAS BHD 135,300 1,356,276 1,331,774 3.34%SCOMI GROUP BHD 87,000 32,678 29,273 0.07%

TANJUNG OFFSHORE BHD 30,400 65,791 28,092 0.07%

3,013,981 2,479,969 6.21%




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TA K A F U L I N K D A N A E K U I T I ( c o n t . )



PlantationASIATIC DEVELOPMENT BERHAD 28,000 191,196 99,556 0.25%IOI CORPORATION BHD 661,100 2,074,911 2,363,872 5.94%

KUALA LUMPUR KEPONG BHD 80,600 848,723 720,496 1.81%UTD PLANTATIONS BHD 17,000 153,658 175,870 0.44%

3,268,488 3,359,794 8.44%

PowerTENAGA NASIONAL BHD 393,000 2,671,696 2,467,058 6.20%YTL POWER INTERNATIONAL BHD 483,323 942,345 922,354 2.32%

3,614,041 3,389,412 8.52%

PropertyKLCC PROPERTY HOLDINGS BHD 269,900 764,399 759,045 1.91%

SUNWAY CITY BHD 36,900 78,279 64,859 0.16%

842,678 823,904 2.07%

Telecommunications DIGI.COM BHD 71,100 1,625,077 1,556,800 3.91%TELEKOM MALAYSIA BHD 520,200 1,689,107 1,609,266 4.04%TIME DOTCOM BHD 265,000 1,752,881 963,522 2.43%

TIME DOTCOM BHD 13,100 93,963 99,340 0.26%

5,161,028 4,228,928 10.64%

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DETAILS OF INVESTMENT


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TransportationAIRASIA BHD 265,000 257,269 230,234 0.58%

BINTULU PORT HOLDINGS BHD 73,100 405,636 418,503 1.05%

MISC BHD 121,200 1,093,945 1,040,820 2.61%1,756,850 1,689,557 4.24%

Water

KUMPULAN PERANGSANG SELANGOR 147,000 306,770 211,134 0.53%PUNCAK NIAGA HOLDINGS BHD 80,000 241,959 212,129 0.53%

SALCON BHD-WT 23/05/2014 46,000 - 8,316 0.02%

548,729 431,580 1.08%

Total Market Value of Equities 31,760,419 27,572,486 69.25%




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TA K A F U L I N K D A N A B O N

Islamic Debts Securities Quantity Cost Market % of


Islamic Bonds

AMISLAMIC BANK BHD 1,000,000 1,000,000 991,117 6.38%4.8% 21/12/2011

BANK MUAMALAT MALAYSIA BERHAD 1,000,000 1,065,800 1,027,416 6.62%6.25% 05/09/2011

BANK PEMBANGUNAN & 1,000,000 1,094,200 1,035,021 6.67%

INFRASTRUKTUR BHD5.7% 25/04/2016

BINARIANG GSM SDN BHD 1,000,000 1,008,610 1,005,091 6.47%

5.65% 26/12/2014 JIMAH ENERGY VENTURES SDN BHD 1,000,000 1,156,600 1,068,565 6.88%

7.65% 12/11/2014

MALAKOFF CORPORATION BHD 1,000,000 1,009,220 992,842 6.39%5.783% 30/04/2013

PLUS EXPRESSWAYS BHD 1,800,000 982,260 1,050,519 6.77%

0% 17/06/2019SAJ HOLDINGS SDN BHD 1,000,000 1,045,500 1,018,946 6.56%

5.9% 25/10/2010SYARIKAT PENGELUAR AIR SUNGAI 1,000,000 1,034,100 1,013,637 6.53%

SELANGOR SDN BHD5.27% 27/05/2011

TEKNOLOGI TENAGA PERLIS 500,000 633,000 594,866 3.84%CONSOR 8.9% 12/09/2014


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Islamic Debts Securities Quantity Cost Market % of


Government BondsMALAYSIA ISLAMIC TREASURY BILLS 1,700,000 1,683,673 1,691,082 10.88%

0% 24/04/2009

Total Market Value of Bonds 11,712,963 11,489,102 73.99%

TA K A F U L I N K D A N A B O N ( c o n t . )


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Investments Quantity Cost Market % of


Investment in Takafulink Dana Ekuiti 7,904,858 8,204,201 6,938,410 76.83%

Investment in Takafulink Dana Bon 1,973,630 2,057,030 2,092,620 23.17%

Total Market Value of Investments 10,261,231 9,031,030 100.00%



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STATEMENT OF ASSETS AND LIABILITIES


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STATEMENT OF ASSETS AND LIABILITIESas at 31 December 2008

2008 2007RM % RM %

Investments

Shariah Approved Shares 27,572,486 69.25 18,666,336 84.16Cash and Deposits

Cash at bank 31,820 0.08 - -Deposits 11,460,000 28.78 4,131,057 18.63

Tax Assets 260,398 0.65 - (0.01)

Other Assets 677,547 1.70 930 0.00

Total Assets 40,002,251 100.46 22,798,323 102.78

Provision for Deferred Tax (80,132) (0.20) (108,868) (0.48)

Provision for Taxation (97,550) (0.24) -Other Liabilities (8,097) (0.02) (510,215) (2.30)

Total Liabilities (185,779) (0.46) (619,083) (2.78)

Net Asset Value of the Fund 39,816,472 100.00 22,179,240 100.00

Participants Fund

Capital 49,135,311 123.40 19,186,286 86.51Generated Income/(Accumulated Losses)

carried forward (9,318,839) (23.40) 2,992,954 13.49

39,816,472 100.00 22,179,240 100.00

Net Asset Value Per Unit (RM) 0.87774 1.35813

NUMBER OF UNITS 45,362,268 16,330,676

TA K A F U L I N K D A N A E K U I T I 23



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2008 2007RM % RM %

Investments

Islamic Debts Securitites 11,489,102 73.99 9,996,169 85.40Cash and Deposits

Cash at bank 7,543 0.05 7,661 0.07Deposits 3,930,000 25.30 1,650,000 14.09

Other Assets 193,709 1.25 125,268 1.07

Total Assets 15,620,354 100.59 11,779,098 100.63

Provision for Taxation (90,546) (0.58) (42,559) (0.35)Provision for Deferred Tax (178) 0.00 0 0.00

Other Liabilities (1,568) (0.01) (32,027) (0.28)

Total Liabilities (92,292) (0.59) (74,586) (0.63)Net Asset Value of the Fund 15,528,062 100.00 11,704,512 100.00

Participants Fund

Capital 14,859,564 95.69 11,302,250 96.56

Generated Income carried forward 668,498 4.31 402,262 3.44

15,528,062 100.00 11,704,512 100.00

Net Asset Value Per Unit (RM) 1.06029 1.04147

NUMBER OF UNITS 14,645,091 11,238,402



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2008 2007RM % RM %

Investments in -

Takafulink Dana Ekuiti 6,938,410 76.83 2,585,839 84.84Takafulink Dana Bon 2,092,620 23.17 462,047 15.16

Cash At Bank - - - -Other Assets 375 0.00 341 0.01

Total Assets 9,031,405 100.00 3,048,227 100.01

Other Liabilities (322) (0.00) (326) (0.01)

Total Liabilities (322) (0.00) (326) (0.01)

Net Asset Value of the Fund 9,031,083 100.00 3,047,901 100.00

Participants FundCapital 10,616,085 117.55 2,844,347 93.32

Generated Income/(Accumulated Losses)carried forward (1,585,002) (17.55) 203,554 6.68

9,031,083 100.00 3,047,901 100.00Net Asset Value Per Unit (RM) 0.91555 1.29214

NUMBER OF UNITS 9,864,080 2,358,805


TA K A F U L I N K D A N A U R U S 25

STATEMENT OF CHANGES IN NET ASSET VALUE


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STATEMENT OF CHANGES IN NET ASSET VALUEor the fnancial year ended 31 December 2008


2008 2007

RM RM

Net Asset Value at beginning o year 22,179,240 -

Amounts received rom units created 45,768,389 24,013,336

Amounts paid or units cancelled (15,819,364) (4,827,050)

Net Income/(Outgo) (12,311,793) 2,992,954

Value of fund at end of year 39,816,472 22,179,240

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2008 2007

RM RM



Amounts paid or units cancelled (1,962,448) (744,028)

Excess o Income over Outgo 266,236 402,262


STATEMENT OF CHANGES IN NET ASSET VALUEor the fnancial year ended 31 December 2008

TA K A F U L I N K D A N A B O N 27



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M N N N N Vor the fnancial year ended 31 December 2008


2008 2007

RM RM



Amounts paid or units cancelled (4,733,391) (1,600,311)

Excess o Income over Outgo (1,788,556) 203,554


28

STATEMENT OF INCOME & EXPENDITURE


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or the fnancial year ended 31 December 2008


2008 2007

RM RM

Net Investment Income 1,464,506 476,907Proft Income 249,075 65,127Dividend Income 1,215,431 411,780

Profts on Disposal 982,439 899,755Securities 982,439 899,755Unrealised Capital Gain - 1,998,232Other Income 567,940 -

Total Income 3,014,885 3,374,894Investment Management Fees (453,357) (184,007)

Loss on Disposal (8,508,726) -Securities (8,508,726) -

Unrealised Capital Loss (6,264,693) -Provision or taxation (68,814) (180,501)Other Outgo (31,088) (17,432)

Total Outgo (15,326,678) (381,940)

Excess of (Outgo) over Income (12,311,793) 2,992,954

Generated Income brought orward 2,992,954 -Amount Available or Distribution - -Generated Income/(Accumulated Losses)carried orward (9,318,839) 2,992,954

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2008 2007

RM RM

Net Investment Income 604,736 544,277Proft Income 604,736 544,277

Unrealised Capital Gain - (33,121)

Other Income 17,851 -Total Income 622,587 511,156Investment Management Fees (66,838) (58,743)Loss on Disposal - (6,400)

Securities - (6,400)Unrealised Capital Loss (234,724) -

Provision or taxation (48,165) (35,580)Other Outgo (6,624) (8,171)

Total Outgo (356,351) (108,894)

Excess of Income over Outgo 266,236 402,262

Generated Income brought orward 402,262 -

Amount Available or Distribution - -Generated Income carried orward 668,498 402,262

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2008 2007RM RM

Net Investment Income 71,082 -

Fee Rebate 71,082 -Profts on Disposal 13,629 62,987

Securities 13,629 62,987Unrealised Capital Gain - 140,820Other Income 4,172 -Total Income 88,883 203,807Investment Management Fees (72,568) (253)Loss on Disposal (433,850) -

Securities (433,850) -Unrealised Capital (Loss) (1,371,021) -

Total Outgo (1,877,439) (253)

Excess of (Outgo) over Income (1,788,556) 203,554

Generated Income brought orward 203,554 -

Amount Available or Distribution - -Generated Income/(Accumulated Losses)carried orward (1,585,002) 203,554


TA K A F U L I N K D A N A U R U S 31


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1. Summary Of Significant Accounting Policies

a. Basis of AccountingThe fnancial statements have been prepared in accordance with JPI/GPI 33TheGuidelines on Investment-Linked business and the requirements o the certifcatedocument, modifed by the ollowing:

(i) or the purpose o unit pricing, investments at market value are adjusted to includeuture cost o acquisitions. This is to ensure equitable unit pricing or incoming,outgoing and remaining unit-holders;

(ii) or the purpose o unit pricing, provision or deerred tax is recognized on taxableand deductible temporary dierences using an actuarially calculated rate o 4%

instead o the statutory rate o 8%. The Board o Directors are o the opinion thatsince these temporary dierences will only be realized in the uture, the lower taxrate o 4% has been used to ensure equitable unit pricing or incoming, outgoingand remaining unit-holders; and

(iii) deerred tax assets arising rom the temporary dierences on unrealised losses oninvestments are not recognized.

b. Investments

Quoted investments are valued at the closing market prices at the end o the fnancialyear.Unquoted loan stock/bonds are valued at the prevailing prices quoted by fnancialinstitutions.Net unrealized gains or losses in value o investments are credited or charged to thecapital account.

NOTES TO THE ACCOUNTS32


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NOTES TO THE ACCOUNTS (cont.)

c. Dividend IncomeDividend income is recognized when the right to receive payment is established.

d. Profit Income Proft income is recognized on an accrual basis.

e. Gains/Losses on Disposal of Investments

Gains or losses arising rom the disposal on investment are credited or charged to thecapital account.

f. Investment Management fees Investment management ees are calculated in accordance with the provisions o the

certifcate document.

g. Fee Rebate This relates to rebate o ees rom the Fund Manager in respect o investment held in

Takaulink Dana Ekuiti and Takaulink Dana Bon or the Takaulink Dana Urus.

h. Cash and cash equivalents Cash and cash equivalents consists o cash in hand and balances with banks,

excluding Islamic deposits.

2. Other Outgo comprises bank charges and custodian charges.

3. At 31 December 2008, the Funds had no contingent liabilities or commitments.

4. All amounts are stated in Ringgit Malaysia.

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STATEMENT BY DIRECTORS

In the opinion o the Directors, the Takaulink Funds (Funds) fnancial statements set out onpages 23 to 33, comprising the statements o assets and liabilities as at 31 December 2008and the related Statements o Income and Expenditure and Statements o Changes in NetAsset Value or the fnancial year ended 31 December 2008 together with the notes thereto,have been drawn up in accordance with JPI/GPI 33 The Guidelines on Investment-LinkedBusiness issued by Bank Negara Malaysia and give true and air view o the fnancial

position o the Funds as at 31 December 2008 and their fnancial perormance and themovements in the Statements o Changes in Net Assets attributable to the unitholders o theFunds or year ended on that date.

Signed in accordance with a resolution o the Directors:

Adinan bin Maning

Abdul Khalil bin Abdul Hamid

Kuala Lumpur

30 April 2009

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AUDITORS REPORTto The Unitholders Of Takafulink Funds

Report on the Financial Statements

We have audited the fnancial statements o the Takaulink Funds o Prudential BSN TakaulBerhad, which comprise the Statements o Assets and Liabilities as at 31 December 2008 andthe related Statements o Income and Expenditure, Statements o Changes in Net Asset Valueor the year then ended, a summary o signifcant accounting policies and other explanatory

notes, as set out on pages 23 to 33.Directors Responsibility for the Financial Statements

The Directors o the Manager are responsible or the preparation and air presentation othese fnancial statements in accordance with JPI/GPI 33 The Guidelines on Investment-Linked Business. This responsibility includes: designing, implementing and maintaininginternal control relevant to the preparation and air presentation o fnancial statements that

are ree rom material misstatement, whether due to raud or error; selecting and applyingappropriate accounting policies; and making accounting estimates that are reasonable in thecircumstances.

Auditors ResponsibilityOur responsibility is to express an opinion on these fnancial 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 perorm theaudit to obtain reasonable assurance whether the fnancial statements are ree rom materialmisstatement.An audit involves perorming procedures to obtain audit evidence about the amounts anddisclosures in the fnancial statements. The procedures selected depend on our judgment,

including the assessment o risks o material misstatement o the fnancial statements, whetherdue to raud or error. In making those risk assessments, we consider internal control relevant

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to the Managers preparation and air presentation o the fnancial statements in order todesign audit procedures that are appropriate in the circumstances, but not or the purpose oexpressing an opinion on the eectiveness o the Managers internal control. An audit alsoincludes evaluating the appropriateness o accounting policies used and the reasonablenesso accounting estimates made by the Directors o the Manager, as well as evaluating theoverall presentation o the fnancial statements.

We believe that the audit evidence we have obtained is sufcient and appropriate to providea basis or our audit opinion.

Opinion

In our opinion, the fnancial statements have been properly drawn up in accordance withthe accounting policies set out in Note 1 to the fnancial statements and JPI/GPI 33 The

Guidelines on Investment-Linked Business so as to give a true and air view o the fnancialposition o the Funds as at 31 December 2008 and o their fnancial perormance andchanges in net assets attributable to the unitholders o the Funds or the year then ended.

Emphasis of Matter

Without qualiying our opinion, we wish to draw your attention to the ollowing matters

arising rom our audit as at 31 December 2008:(a) Lower tax rate used in the provision or deerred tax liabilities and assets

As explained in Note 1a (ii), the Directors o the Manager are o the opinion that it isairer to unitholders to use a lower tax rate than the statutory tax rate in the pricing ounits.

AUDITORS REPORTto The Unitholders Of Takafulink Funds (cont)36


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(b) Recognition o deerred tax assets

Other than mentioned in (a) above, deerred tax assets arising rom the temporarydierences on unrealised losses on investments in certain unds were not adjusted asat 31 December 2008. However, this non-adjustment has an insignifcant impact ondeerred tax liabilities and deerred tax assets.

The potential eect o the above matters is not signifcant to the pricing o units in the respectiveFunds.

Other Matters

This report is made solely to the unitholders o the Funds, as a body, and or no other purpose.We do not assume responsibility to any other person or the content o this report.

KPMGFirm Number: AF 0758Chartered Accountants

Petaling Jaya

30 April 2009

AUDITORS REPORTto The Unitholders Of Takafulink Funds (cont) 37


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Prudential BSN Takaful Berhad (740651-H)Level 8A, Menara Prudential,No. 10, Jalan Sultan Ismail,50250 Kuala Lumpur.Tel : 603-2078 1188 Fax : 603-2072 6188

Customer Service Tel : 603-2053 7188email : [email protected]

takafulink funds report 2008

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