KENANGA SYARIAH GROWTH FUND SYARIAH GROWTH FUND ... Melaka No. 25-1 Jalan Kota ... and equity related securities of companies with sustainable business model and trading at a

KENANGA SYARIAH GROWTH FUND

INTERIM REPORT

For the Financial Period from 1 June 2014 to 30 November 2014

Kenanga Investors Berhad (353563-P)

KENANGA SYARIAH GROWTH FUND

Contents Page

Corporate Directory ii-iiiDirectory of Manager’s Offices ivFund Information 1Manager’s Report 2-4Fund Performance 5-7Trustee’s Report 8Shariah Adviser’s Report 9Statement by the Manager 10Financial Statement 11-42

ii Kenanga Syariah Growth Fund Interim Report

CORPORATE DIRECTORY

Manager: Kenanga Investors Berhad (Company No. 353563-P)Registered Office

Kenanga Investors Berhad (KIB)8th Floor, Kenanga International,Jalan Sultan Ismail,50250 Kuala Lumpur, Malaysia.Tel: 03-2162 1490Fax: 03-2161 4990

Business OfficeSuite 12.02, 12th Floor, Kenanga International,Jalan Sultan Ismail,50250 Kuala Lumpur, Malaysia.Tel: 03-2057 3688Fax: 03-2161 8807E-mail: [email protected]: www.KenangaInvestors.com.my

Board Of DirectorsDatuk Syed Ahmad Alwee Alsree (Chairman)Syed Zafilen Syed Alwee (Independent Director)YM Raja Dato’ Seri Abdul Aziz bin Raja Salim (Independent Director)Vivek Sharma (Independent Director)Peter John Rayner (Independent Director)Bruce Kho Yaw HuatIsmitz Matthew De Alwis

Investment CommitteeBruce Kho Yaw Huat (Chairman)Syed Zafilen Syed Alwee (Independent Member)Vivek Sharma (Independent Member)Peter John Rayner (Independent Member)Ismitz Matthew De Alwis

Company Secretary: Norliza Abd Samad (MAICSA 7011089)9th Floor, Kenanga International, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia.Tel: 03-2162 1490 Fax:03-2161 4990

External Fund Manager: Kenanga Islamic Investors Berhad (Company No. 451957-D)Registered Office

Kenanga Islamic Investors Berhad (KIIB)8th Floor, Kenanga International, Jalan Sultan Ismail,50250 Kuala Lumpur, Malaysia.Tel: 03-2162 1490 Fax: 03-2161 4990

Business OfficeSuite 12.03, 12th Floor, Kenanga International, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia.Tel: 03-2057 3688 Fax: 03-2161 8805

Trustee: CIMB Islamic Trustee Berhad (Formerly known as CIMB Trustee Berhad) (Company No. 167913-M)

Registered OfficeLevel 13, Menara CIMBJalan Stesen Sentral 2Kuala Lumpur Sentral50490 Kuala Lumpur.Tel: 03-2261 8888Fax: 03-2261 0099Website: www.cimb.com

Business OfficeLevel 21, Menara CIMBJalan Stesen Sentral 2Kuala Lumpur Sentral50490 Kuala Lumpur.Tel: 03-2261 8888Fax: 03-2261 9889

Kenanga Syariah Growth Fund Interim Report iii

Shariah Adviser: IBFIM (Company No. 763075-W)Registered Office

Level 149A, 149B, 151BPersiaran Raja Muda Musa42000 Port KlangSelangor Darul Ehsan, Malaysia

Business Office3rd Floor, Menara Takaful MalaysiaJalan Sultan Sulaiman50000 Kuala Lumpur, Malaysia.Tel: 03-2031 1010 Fax: 03-2078 5250

Auditor: Ernst & Young (AF: 0039)Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur.Tel: 03-7495 8000 Fax: 03-2095 5332

Tax Adviser: Ernst & Young Tax Consultants Sdn Bhd (Company No. 179793-K)Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur.Tel: 03-7495 8000 Fax: 03-2095 5332

Membership: Federation Of Investment Managers Malaysia (FIMM)19-06-1, 6th Floor, PNB Damansara, 19, Lorong Dungun, Damansara Heights,50490 Kuala Lumpur, Malaysia.Tel: 03-2093 2600 Fax: 03-2093 2700 Website: www.fimm.com.my

iv Kenanga Syariah Growth Fund Interim Report

DIRECTORY OF MANAGER’S OFFICES

Regional Branch Offices:Kuala LumpurSuite 12.02, 12th Floor, Kenanga InternationalJalan Sultan Ismail,50250 Kuala Lumpur, MalaysiaTel: 03-2057 3688Fax: 03-2161 8807

Johor BahruLot 11.03, 11th Floor, Menara MSC Cyberport5 Jalan Bukit Meldrum80300 Johor Bahru, JohorTel: 07-223 7505 / 4798Fax: 07-223 4802

MelakaNo. 25-1 Jalan Kota Laksamana 2/17Taman Kota Laksamana Seksyen 275200 MelakaTel: 06-281 8913 / 06-282 0518Fax: 06-281 4286

Kuching1st Floor, No 71, Lot 7Lot 10900, Jalan Tun Jugah93350 Kuching, SarawakTel: 082-572 228Fax: 082-572 229

KlangNo. 12 Jalan Batai Laut 3, Taman Intan41300 Klang, Selangor Darul EhsanTel:03-3341 8818 / 03-3348 7889Fax:03-3341 8816

Kota KinabaluA-03-11, 3rd FloorBlock A Warisan SquareJalan Tun Fuad Stephens88000 Kota Kinabalu, SabahTel: 088-447 089 / 088-448 106Fax: 088-447 039

Penang16th Floor, Menara Boustead Penang39, Jalan Sultan Ahmad Shah10050 Penang.Tel: 04-227 3788Fax: 04-210 6644

IpohSuite 1, 2nd Floor,63 Persiaran Greenhill,30450 Ipoh, Perak, MalaysiaTel: 05-254 7573 / 7570Fax: 05-254 7606

Seremban2nd Floor, No. 1D-2 Jalan Tuanku Munawir70000 Seremban, Negeri Sembilan.Tel: 06-761 5678Fax: 06-761 2242

Kenanga Syariah Growth Fund Interim Report 1

1. FUND INFORMATION

1.1 Fund Name

Kenanga Syariah Growth Fund (KSGF or the Fund)

1.2 Fund Category / Type

Equity (Islamic) / Growth

1.3 Investment Objective

The Fund aims to provide unit holders with long-term capital growth by investing principally in equities that comply with Shariah requirements.

1.4 Investment Strategy

The Fund will invest principally in a diversified portfolio of Malaysian Shariah-compliant equity and equity related securities of companies with sustainable business model and trading at a discount to its intrinsic value.

1.5 Duration

The Fund was launched on 29 January 2002 and shall exist as long as it appears to the Manager and the Trustee that it is in the interests of the unit holders for it to continue.

1.6 Performance Benchmark

FTSE-Bursa Malaysia Emas Shariah Index (FBMS).

1.7 Distribution Policy

Income distribution is incidental, if any.

1.8 External Fund Manager

Kenanga Islamic Investors Berhad

1.9 Breakdown of unit holdings of KSGF as at 30 November 2014

Size of holdings No. of unitholders No. of units held5,000 and below 1,985 4,354,1235,001 - 10,000 979 7,062,99510,001-50,000 1,295 26,842,83150,001-500,000 203 20,563,985500,001 and above 13 45,626,478Total 4,475 104,450,412

2 Kenanga Syariah Growth Fund Interim Report

2. MANAGER’S REPORT

2.1 Explanation on whether the Fund has achieved its investment objective.

For the period under review, the Fund was unable to achieve its investment objective. The Fund value fell by 3.62% compared to the benchmark index which fell by 0.76%.

2.2 Comparison between the Fund’s performance and performance of the benchmark

Performance Chart Since Launch (29/01/2002– 30/11/2014)Kenanga Syariah Growth Fund vs FTSE-Bursa Malaysia Emas Shariah Index

Source: Lipper

2.3 Investment strategies and policies employed during the period under review

For the period under review, the Fund continued with its strategy of investing in Shariah-compliant securities of companies with sustainable business models and competent management, whilst trading at a discount to their intrinsic / fair value. The Fund focused on companies whose top line / revenue should prove to be relatively more resilient to a global economic slowdown and have the ability to maintain their profit margins. We also focused on companies likely to benefit from Malaysia’s on-going Economic Transformation Program.

Sectors that we favour include: i) Islamic REITs, ii) consumer staples and FMCG, iii) healthcare, iv) plantations on a longer term, and v) oil & gas.

2.4 The Fund’s asset allocation as at 30 November 2014 and comparison with the previous financial period as at 31 May 2014

Asset 30 Nov 2014 31 May 2014Quoted Shariah-compliant investment securities 83.8% 72.2%Short term Islamic deposits and cash 16.2% 27.8%

Reason for the differences in asset allocation

The Fund’s invested level was higher due to expectation that market is likely to improve in the final month of the year as indicated by historical performance.


2.5 Fund performance analysis based on NAV per unit (adjusted for income distribution; if any) since last review period

Period under reviewKenanga Syariah Growth Fund -3.62%FTSE-Bursa Malaysia Emas Shariah Index (FBMS) -0.76%

Source: Lipper

For the period under review, the Fund depreciated by 3.62% and underperformed the FBMS benchmark decline of 0.76%. The underperformance was mainly due to Shariah-compliant stock selection.

2.6 Review of the market

Market Review

The FBM Shariah Index fell by 0.76% for the period under review to 13,036.3 points. The plantation and small caps dropped the most at 8.2% and 5.8% respectively due to poor corporate earnings, falling crude palm oil prices, crude oil prices and a weak Ringgit. As a result, there was massive outflow of funds with an estimated RM13 billion outflow from sales of fixed income instruments in November 2014 alone.

Corporates earnings for the third quarter of 2014 were below analysts’ estimates, sparking fears of further earnings downgrades. The earnings growth for Malaysia has now been revised down to sub 1% levels for 2014 from high single digit at the beginning of the year. This is the third consecutive year of similar downgrades. Secondly, the continued downtrend of commodity prices also exacerbated the sell-down on their respective equity sectors, with crude oil falling 17.9% m-o-m to USD66/bbl (WTI) and CPO falling 5.8% m-o-m to RM2,172. Crude oil broke significantly lower after the OPEC (Organization for Petroleum Exporting Countries) refused to respond to lower prices and left production quotas unchanged. Towards the end of the month, there was also news that Petroliam Nasional Bhd (Petronas) will be reviewing its dividend to the government and also its capital expenditure allocation in view of the declining global crude oil prices.

Meanwhile GDP grew by 5.6% in the third quarter from 6.5% in the second quarter. It was supported by the private sector demand and the positive growth in net exports of goods and services. The government also announced that beginning 1 Dec 2014, fuel subsidies for RON95 and diesel will be removed following the implementation of a managed float system similar to that used on RON97.

Regional markets were mixed, the MSCI Asia-Ex Japan index was flattish at +0.3% in MYR terms but weaker in USD terms as the US dollar appreciated against most Asian currencies. China surprised with a rate cut, which signals a shift towards monetary easing. Equity markets in China rallied on the back of this, expecting more easing to come. The Shenzen CSI 300 Index rallied +12% in November.


2.6 Review of the market (Contd.)

Market Outlook

We think the recent market volatility is set to continue as investor sentiment remains jittery given the sudden collapse in crude oil and commodity prices. Fund flows out from emerging markets including Malaysia back to more promising developed markets like the U.S will continue to be a major trend in 2015.

We believe crude oil prices are likely to stay depressed for a longer while before rebounding possibly beyond Q2 as supply adjustments take place with production cut backs. These, coupled with MYR weakness and upcoming GST implementation, are likely to put a cap to market performance in Q1. Nonetheless, we believe values have started to emerge in the broader market after the sharp sell down in the past 2 months, warranting a relook at selective sectors including the small-to-mid cap growth stocks. Moreover, we believe once oil prices and the MYR stabilise, investors will refocus on better corporate earnings and global growth outlook in 2H. Hence, a more sustainable rebound is anticipated thereafter. We like sectors like the exporters, ICT, construction and utilities.

Strategy

The recent sell down has created some pockets of values, and we will be deploying our excess cash, opportunistically in the next 1-3 months, especially on dips. We remain positively biased to growth sectors such as exporters, manufacturers and construction which offer quality and visible growth.

Meanwhile, defensive stocks vis-à-vis the market on the other hand pose higher downside risks, as yield spreads have narrowed substantially recently. Therefore, our Shariah-compliant stocks picks will favour growth vis-à-vis defensive trades.

2.7 Income Distribution

For the financial period under reviewed, the Fund did not declare any income distribution:

2.8 Details of any unit split exercise

The Fund did not carry out any unit split exercise during the financial period under review.

2.9 Significant changes in the state of affair of the Fund during the period

There were no significant changes in the state of affair of the Fund during the financial period and up until the date of the manager’s report, not otherwise disclosed in the financial statements.

2.10 Circumstances that materially affect any interests of the unitholders

During the financial period under review, there were no circumstances that materially affected any interests of the unitholders.

2.11 Rebates & Soft commissions

Any rebates received are channeled back to the Fund. On the other hand, soft commissions received from the stockbrokers for goods and services such as technical analysis software, fundamental database, financial wire services, stock quotation system and portfolio management software incidental to investment management of the Fund shall be retained by the Manager. For the financial period under review, the Manager has received soft commissions from stockbrokers.


3. FUND PERFORMANCE

3.1 Details of portfolio composition of Kenanga Syariah Growth Fund (“the Fund”) for the financial period as at 30 November 2014 against last 3 financial period/years are as follows:

a. Distribution among industry sectors and category of Shariah-compliant investments:

As at As at As at As at30.11.2014 31.5.2014 31.12.2012 31.12.2011

% % % %

Trading/Services 31.0 36.3 41.3 27.7 Plantations 10.2 7.4 5.7 10.6 Properties 9.7 3.6 3.0 2.2Industrial products 9.4 5.7 5.3 -Consumer products 6.1 4.4 10.1 13.3Construction 4.4 3.1 1.0 4.6Technology 4.1 0.7 - -Finance 2.5 2.5 3.0 -Infrastructure 1.1 2.4 5.2 1.1Islamic REITs 5.3 6.1 5.9 3.1Short term Islamic deposits and cash 16.2 27.8 19.5 37.4

100.0 100.0 100.0 100.0

Note: The above mentioned percentages are based on total Shariah-compliant investment market value plus cash.

b. Distribution among markets

The Fund invested in local Shariah-compliant investment securities and cash instruments only.


3.2 Performance details of the Fund for the financial period ended 30 November 2014 and last 3 financial period/years are as follows:

Period from Period from FY FY1.6.2014 to 30.11.2014

1.1.2013 to 31.5.2014

1.1.2012 to 31.12.2012

1.1.2011 to 31.12.2011

Net asset value (“NAV”) (RM Million) 122.79* 91.18 30.44 10.85 Units in circulation (Million) 104.45 74.75 30.25 3.79 NAV per unit (RM) 1.1756* 1.2198 1.0009 2.8604 Highest NAV per unit (RM) 1.2569 1.2901 3.0262 2.8631 Lowest NAV per unit (RM) 1.1606 0.9755 0.9855 2.4481 Total return (%) -3.62 28.72 12.14 16.93 - Capital growth (%) -3.62 21.22 4.97 16.93 - Income distribution (%) - 7.50 7.17 - Gross distribution per unit (sen) - 7.50 6.39 - Net distribution per unit (sen) - 7.50 6.27 - Management expense ratio (“MER”) (%)1 0.80 2.28 2.17 2.01 Portfolio turnover ratio (“PTR”) (times) 2 0.38 0.89 0.64 0.58

Note: Total return is the actual return of the Fund for the respective financial periods/years, computed based on NAV per unit and net of all fees.

MER is computed based on the total fees and expenses incurred by the Fund divided by the average fund size calculated on a daily basis. PTR is computed based on the average of the total acquisitions and total disposals of Shariah-compliant investment securities of the Fund divided by the average fund size calculated on a daily basis.

Above NAV and NAV per unit are not shown as ex-distribution as there were no distribution declared by the Fund during the financial period under review.

1 MER is lower against previous financial period as the computation is in respect of 6 months only.

2 The lower PTR is due to a more conservative strategy in terms of Shariah-compliant stock selection which reduces the exposure to more “trading” orientated Shariah-compliant stocks.

* Based on bid price valuation method on all Shariah-compliant investments held by the Fund as at 30 November 2014, the NAV and NAV per unit would be RM122.25 million and RM1.1704 respectively.

(As disclosed under Note 13 of the financial statements)


3.3 Average total return of the Fund

1 Year 3 Years 5 Years30 Nov 13 - 30 Nov 14

30 Nov 11 - 30 Nov 14

30 Nov 09 - 30 Nov 14

Kenanga Syariah Growth Fund 4.67% 14.41% 23.43%FTSE-Bursa Malaysia Emas Shariah Index (FBMS) 2.37% 10.79% 10.95%

Source: Lipper

3.4 Annual total return of the Fund

Period under review

Period from 1 Year 1 Year 1 Year 1 Year

31 May 14 - 30 Nov 14

31 Dec 12 - 31 May 14

31 Dec 11 - 31 Dec 12

31 Dec 10 - 31 Dec 11

31 Dec 09 - 31 Dec 10

31 Dec 08 - 31 Dec 09

Kenanga Syariah Growth Fund

-3.62% 28.72% 12.14% 16.93% 29.70% 30.42%

FTSE-Bursa Malaysia Emas Shariah Index (FBMS)

-0.76% 14.02% 11.85% 2.41% 18.20% 43.03%

Source: Lipper

Investors are reminded that past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.


4 TRUSTEE’S REPORT TO THE UNITHOLDERS OF KENANGA SYARIAH GROWTH FUND

We, CIMB ISLAMIC TRUSTEE BERHAD (“the Trustee”), being the Trustee of KENANGA SYARIAH GROWTH FUND (“the Fund”) are of the opinion that KENANGA INVESTORS BERHAD (“the Manager”), acting in the capacity of Manager of the Fund, has fulfilled its duties in the following manner for the financial period ended 30 November 2014.

a) The Fund has been managed in accordance with the limitations imposed on the investment powers of the Manager and the Trustee under the Deed, the Securities Commission Malaysia’s Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007 (as amended from time to time) and other applicable laws during financial period ended 30 November 2014;

b) Valuation/pricing of units of the Fund has been carried out in accordance with the Deed and relevant regulatory requirements; and

c) Creation and cancellation of units have been carried out in accordance with the Deed and relevant regulatory requirements.

For and on behalf ofCIMB ISLAMIC TRUSTEE BERHAD (167913-M)

LEE KOOI YOKEChief Operating Officer

Kuala Lumpur, Malaysia

26 January 2015


5. SHARIAH ADVISER’S REPORT TO THE UNITHOLDERS OF KENANGA SYARIAH GROWTH FUND

We have acted as the Shariah Adviser of Kenanga Syariah Growth Fund. Our responsibility is to ensure that the procedures and processes employed by Kenanga Investors Berhad are in accordance with Shariah principles.

In our opinion, Kenanga Investors Berhad has managed and administered Kenanga Syariah Growth Fund in accordance with Shariah principles and complied with applicable guidelines, rulings and decisions issued by the Securities Commission pertaining to Shariah matters for the financial period ended 30 November 2014.

We wish to draw your attention to the following:

IOI Properties Group Bhd, a Shariah non-compliant security, was acquired on 19 December 2013 and subsequently disposed of on 15 January 2014. Net gain amounting to RM21,796.20 is to be channelled to baitulmal.

In addition, we also confirm that the investment portfolio of Kenanga Syariah Growth Fund comprises securities which have been classified as Shariah-compliant by the Shariah Advisory Council of the Securities Commission. As for the securities which are not certified by the Shariah Advisory Council of the Securities Commission, we have reviewed the said securities and opine that these securities are designated as Shariah-compliant.

For and on behalf of the Shariah AdviserIBFIM

AHMAD ZAKIRULLAH BIN MOHAMED SHAARANISenior Shariah Officer/Designated Person Responsible for Shariah Advisory

Kuala Lumpur

26 January 2015


6. STATEMENT BY THE MANAGER

We, Ismitz Matthew De Alwis and Bruce Kho Yaw Huat, being the directors of Kenanga Investors Berhad, do hereby state that, in the opinion of the Manager, the accompanying statement of financial position as at 30 November 2014 and the related statement of comprehensive income, statement of changes in net asset value and statement of cash flows for the financial period from 1 June 2014 to 30 November 2014 together with notes thereto, are drawn up in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards so as to give a true and fair view of the financial position of Kenanga Syariah Growth Fund as at 30 November 2014 and of its financial performance and cash flows for the financial period from 1 June 2014 to 30 November 2014 and comply with the requirements of the Deed.

For and on behalf of the ManagerKenanga Investors Berhad

Ismitz Matthew De Alwis Bruce Kho Yaw Huat

Kuala Lumpur, Malaysia

26 January 2015


7. FINANCIAL STATEMENT

7.1 STATEMENT OF COMPREHENSIVE INCOMEFOR THE FINANCIAL PERIOD FROM 1 JUNE 2014 TO 30 NOVEMBER 2014 (unaudited)

Note1.6.2014 to 30.11.2014

1.1.2013 to 30.6.2013

RM RM

INVESTMENT INCOMEDividend income 1,263,543 588,948Profit income 408,687 93,435Net (loss)/gain from Shariah-compliant investments:

- Financial assets at fair value through profit or loss (“FVTPL”) 7 (5,052,879) 4,241,946

(3,380,649) 4,924,329

EXPENSESManager’s fee 4 840,075 277,735Trustee’s fee 5 28,002 14,813Auditors’ remuneration 5,596 9,807Tax agent’s fee 2,000 1,471Administration expenses 24,900 5,436Brokerage and other transaction costs 411,435 26,964

1,312,008 336,226

NET (LOSS)/INCOME BEFORE TAX (4,692,657) 4,588,103

Income tax 6 - (3,526)

NET (LOSS)/INCOME AFTER TAX, REPRESENTING TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (4,692,657) 4,584,577

Net (loss)/income after tax is made up as follows: Realised gain 3,529,388 1,662,429 Unrealised (loss)/gain (8,222,045) 2,922,148

(4,692,657) 4,584,577

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


7.2 STATEMENT OF FINANCIAL POSITIONAS AT 30 NOVEMBER 2014 (unaudited)

Note 30.11.2014 30.6.2013RM RM

INVESTMENTSFinancial assets at FVTPL 7 101,760,090 40,099,690Short term Islamic deposits 8 19,660,000 7,695,000

121,420,090 47,794,690

OTHER ASSETSAmount due from Manager 692,320 70,884Other receivables 9 1,373,192 67,009Tax recoverable 27,511 33,923Cash at bank 40,358 55,348

2,133,381 227,164

TOTAL ASSETS 123,553,471 48,021,854

LIABILITIESAmount due to Trustee 4,669 2,902Amount due to Baitulmal 10(a) 21,796 -Other payables 11 1,274,475 62,876TOTAL LIABILITIES 1,300,940 65,778

EQUITYUnitholders’ contribution 111,971,445 37,947,919Retained earnings 10,281,086 10,008,157NET ASSET VALUE (“NAV”) ATTRIBUTABLE TO

UNITHOLDERS 12 122,252,531 47,956,076

TOTAL EQUITY AND LIABILITIES 123,553,471 48,021,854

NUMBER OF UNITS IN CIRCULATION 12(a) 104,450,412 42,273,277

NET ASSET VALUE PER UNIT (RM) 13 1.1704 1.1344



7.3 STATEMENT OF CHANGES IN NET ASSET VALUEFOR THE FINANCIAL PERIOD FROM 1 JUNE 2014 TO 30 NOVEMBER 2014 (unaudited)

NoteUnitholders’ contribution

Retained earnings Total NAV

RM RM RM

1.6.2014 to 30.11.2014At beginning of the period 75,628,913 14,973,743 90,602,656Total comprehensive income - (4,692,657) (4,692,657)Creation of units 12(a) 55,912,957 - 55,912,957Cancellation of units 12(a) (19,947,518) - (19,947,518)Distribution equalisation 12(a) 377,093 - 377,093At end of the period 111,971,445 10,281,086 122,252,531

1.1.2013 to 30.6.2013At beginning of the period 24,850,204 5,423,580 30,273,784Total comprehensive income - 4,584,577 4,584,577Creation of units 12(a) 11,312,850 - 11,312,850Cancellation of units 12(a) (2,856,152) - (2,856,152)Distribution equalisation 12(a) 4,641,017 - 4,641,017At end of the period 37,947,919 10,008,157 47,956,076



7.4 STATEMENT OF CASH FLOWSFOR THE FINANCIAL PERIOD FROM 1 JUNE 2014 TO 30 NOVEMBER 2014 (unaudited)

1.6.2014 to 30.11.2014

1.1.2013 to 30.6.2013

RM RM

CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES

Proceeds from sale of financial assets at FVTPL 23,053,504 6,864,501Purchase of financial assets at FVTPL (67,002,863) (17,034,232)Net dividends received 1,445,996 518,023Profit from Islamic deposits received 410,144 93,743Manager’s fee paid (802,669) (263,227)Trustee’s fee paid (29,901) (14,040)Auditors’ remuneration paid (10,000) (20,000)Payment for other fees and expenses (25,687) (3,719)Net cash used in operating and investing activities (42,961,476) (9,858,951)

CASH FLOWS FROM FINANCING ACTIVITIESCash received from units created 55,802,790 18,053,538Cash paid on units cancelled (20,099,948) (4,783,901)Distribution paid (477,495) (1,896,388)Net cash generated from financing activities 35,225,347 11,373,249

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (7,736,129) 1,514,298

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 27,436,487 6,236,050

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 19,700,358 7,750,348

Cash and cash equivalents comprise: Cash at bank 40,358 55,348 Short term Islamic deposits 19,660,000 7,695,000

19,700,358 7,750,348



7.5 NOTES TO THE FINANCIAL STATEMENTSFOR THE FINANCIAL PERIOD FROM 1 JUNE 2014 TO 30 NOVEMBER 2014 (unaudited)

1. THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES

Kenanga Syariah Growth Fund (the “Fund”) was constituted pursuant to the executed Deed dated 8 January 2002 (collectively, together with the deeds supplemental thereto, referred to as “the Deed”) between the Manager, Kenanga Investors Berhad and HSBC (Malaysia) Trustee Berhad (“the Trustee” prior to 3 December 2013). The Fund has changed its trustee to CIMB Islamic Trustee Berhad (“the Trustee” with effect from 3 December 2013). The aforesaid change was effected on 3 December 2013 via a Second Master Supplemental Deed dated 19 November 2013. The Fund commenced operations on 29 January 2002 and will continue to be in operation until terminated as provided under Clause 12 of the Deed.

Kenanga Investors Berhad is a wholly-owned subsidiary of Kenanga Investment Bank Berhad, which in turn is a wholly-owned subsidiary of K & N Kenanga Holdings Berhad, listed on the Main Board of Bursa Malaysia Securities Berhad. All of these companies are incorporated in Malaysia.

The principal place of business of the Manager is Suite 12.02, 12th Floor, Kenanga International, Jalan Sultan Ismail, 50250 Kuala Lumpur.

The Fund seeks to provide unitholders with long term capital growth by investing principally in equities that comply with Shariah requirements.

The Fund changed its financial year end from 31 December to 31 May pursuant to the Second Master Supplemental Deed dated 19 November 2013.

The financial statements were authorsied for issue by the Interim Chief Executive Officer of the Manager on 26 January 2015.

2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Fund is exposed to a variety of risks including market risk (which includes interest rate risk and price risk), credit risk, liquidity risk and reclassification of Shariah status risk. Whilst these are the most important types of financial risks inherent in each type of financial instruments, the Manager and the Trustee would like to highlight that this list does not purport to constitute an exhaustive list of all the risks inherent in a Shariah-compliant investment in the Fund.

The Fund has an approved set of investment guidelines and policies as well as internal controls which sets out its overall business strategies to manage these risks to optimise returns and preserve capital for the unitholders, consistent with the long term objectives of the Fund.


2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

a. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk includes interest rate risk and price risk.

Market risk arises when the value of the Shariah-compliant investments fluctuates in response to the activities of individual companies, general market or economic conditions. It stems from the fact that there are economy-wide perils, which threaten all businesses. Hence, investors are exposed to market uncertainties. Fluctuation in the Shariah-compliant investments’ prices caused by uncertainties in the economic, political and social environment will affect the fair value of the Fund.

The Manager manages the risk of unfavorable changes in prices by cautious review of the Shariah-compliant investments and continuous monitoring of their performance and risk profiles.

i. Interest rate risk

The risk refers to how the changes in the interest rate environment would affect the performance of Shariah-compliant instruments. In the event of a rising interest rate environment, the performance of Shariah-compliant instruments may decrease, and vice versa. Interest rate, such as the Overnight Policy Rate set by Bank Negara Malaysia, will have an impact on the investment decisions of the Fund regardless of whether it is a Shariah-compliant fund or otherwise. It does not in any way suggest that the Fund will invest in conventional financial instruments.

The Fund is not exposed to significant interest rate risk as its Islamic deposits are short term in nature and have fixed profit rates.

Interest rate risk exposure

The following table analyses the Fund’s interest rate risk exposure. The Fund’s assets and liabilities are disclosed at fair value and categorised by the earlier of contractual re-pricing or maturity dates.



a. Market Risk (Contd.)

i. Interest rate risk (Contd.)

Interest rate risk exposure

Up to 1 year

Non-exposure

to interest rate

movement Total

Weighted average effective

rate of return*

RM RM RM %

30.11.2014AssetsFinancial assets at FVTPL - 101,760,090 101,760,090Short term Islamic

deposits 19,660,000 - 19,660,000 3.25Other assets 3,960 2,101,910 2,105,870

19,663,960 103,862,000 123,525,960

LiabilitiesOther liabilities - 1,300,940 1,300,940

Total interest rate sensitivity gap 19,663,960 102,561,060 122,225,020

30.6.2013AssetsFinancial assets at FVTPL - 40,099,690 40,099,690Short term Islamic

deposits 7,695,000 - 7,695,000 2.92Other assets 1,260 191,981 193,241

7,696,260 40,291,671 47,987,931

LiabilitiesOther liabilities - 65,778 65,778

Total interest rate sensitivity gap 7,696,260 40,225,893 47,922,153

* Computed based on Shariah-compliant assets with exposure to interest rate movement only.




ii. Price risk

Price risk is the risk of unfavorable changes in the fair values of quoted Shariah-compliant equity securities, quoted Shariah-compliant collective investment schemes and quoted Shariah-compliant warrants. The Fund invests in quoted Shariah-compliant equity securities, quoted Shariah-compliant collective investment schemes and quoted Shariah-compliant warrants which are exposed to price fluctuations. This may then affect the unit price of the Fund.

Price risk sensitivity

Manager’s best estimate of the effect on the profit for the period due to a reasonably possible change in investments in quoted Shariah-compliant equity securities, quoted Shariah-compliant collective investment schemes and quoted Shariah-compliant warrants with all other variables held constant is indicated in the table below:

Changes in priceIncrease/(Decrease)

Effects on profit for the period

Increase/(Decrease)Basis points RM

30.11.2014Financial assets at FVTPL 5/(5) 50,880/(50,880)

30.6.2013Financial assets at FVTPL 5/(5) 20,050/(20,050)

In practice, the actual trading results may differ from the sensitivity analysis above and the difference could be material.

Price risk concentration

The following table set out the Fund’s exposure and concentration to price risk based on its portfolio of Shariah-compliant financial instruments as at the reporting date.

Fair value Percentage of NAV30.11.2014 30.6.2013 30.11.2014 30.6.2013

RM RM % %

Financial assets at FVTPL 101,760,090 40,099,690 83.2 83.6




ii. Price risk (Contd.)

The Fund’s concentration of Shariah-compliant investment security price risk from the Fund’s quoted Shariah-compliant equity securities, quoted Shariah-compliant collective investment schemes and quoted Shariah-compliant warrants analysed by sector is as follows:

Fair value Percentage of NAV30.11.2014 30.6.2013 30.11.2014 30.6.2013

RM RM % %

Trading/Services 37,622,149 15,734,867 30.8 32.8 Plantation 12,328,542 3,735,004 10.1 7.8 Properties 11,785,138 2,837,698 9.6 5.9 Industrial products 11,397,466 2,955,287 9.3 6.2 Consumer products 7,421,679 5,903,895 6.1 12.3 Construction 5,331,774 2,220,265 4.4 4.6Technology 4,928,522 - 4.0 - Finance 3,043,592 1,309,925 2.5 2.7 Infrastructure 1,364,930 1,655,094 1.1 3.5 Islamic REITs 6,482,932 3,747,655 5.3 7.8 Shariah-compliant

warrants 53,366 - - - 101,760,090 40,099,690 83.2 83.6

b. Credit Risk

Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss to the Fund by failing to discharge an obligation. The Manager manages the credit risk by undertaking credit evaluation to minimise such risk.

i. Credit risk exposure

At the reporting date, the Fund’s maximum exposure to credit risk is represented by the carrying amount of each class of financial asset recognised in the statement of financial position.

ii. Financial assets that are either past due or impaired

As at the reporting date, there are no financial assets that are either past due or impaired.



b. Credit Risk (Contd.)

iii. Credit quality of financial assets

The Fund invests in Islamic deposits only with reputable financial institutions. The following table analyses the financial institutions by rating category:

Short term Islamic deposits

Percentage of total short term Islamic deposits Percentage of NAV30.11.2014 30.6.2013 30.11.2014 30.6.2013

% % % %RatingP1 88.8 61.4 14.3 9.9 N/A 11.2 38.6 1.8 6.1

100.0 100.0 16.1 16.0

c. Liquidity Risk

Liquidity risk is defined as the risk that the Fund will encounter difficulty in meeting obligations associated with financial liabilities that are to be settled by delivering cash or another financial asset. Exposure to liquidity risk arises because of the possibility that the Fund could be required to pay its liabilities or cancel its units earlier than expected. The Fund is exposed to cancellation of its units on a regular basis. Units sold to unitholders by the Manager are cancellable at the unitholder’s option based on the Fund’s NAV per unit at the time of cancellation calculated in accordance with the Deed.

The Islamic liquid assets comprise cash, Islamic deposits with licensed financial institutions and other Shariah-compliant instruments, which are capable of being converted into cash within 7 days.

The following table analyses the maturity profile of the Fund’s financial assets and financial liabilities in order to provide a complete view of the Fund’s contractual commitments and liquidity.



c. Liquidity Risk (Contd.)

Note Up to 1 year30.11.2014 30.6.2013

RM RMAssetsFinancial assets at FVTPL 101,760,090 40,099,690Short term Islamic deposits 19,660,000 7,695,000Other assets 2,105,870 193,241

(i) 123,525,960 47,987,931

LiabilitiesOther liabilities (ii) 1,300,940 65,778

Equity (iii) 122,252,531 47,956,076

Liquidity gap (27,511) (33,923)

(i) Financial assets

Analysis of financial assets at FVTPL into maturity groupings is based on the expected date on which these assets will be realised. The Fund’s Shariah-compliant investments have been included in the “up to 1 year” category on the assumption that these are highly liquid Shariah-compliant investments which can be realised should all of the Fund’s unitholders’ equity be required to be redeemed. For other assets, the analysis into maturity groupings is based on the remaining period from the end of the reporting period to the contractual maturity date or if earlier, the expected date on which the assets will be realised.

(ii) Financial liabilities

The maturity grouping is based on the remaining period from the end of the reporting period to the contractual maturity date or if earlier, the date on which liabilities will be settled. When the counterparty has a choice of when the amount is paid, the liability is allocated to the earliest period in which the Fund can be required to pay.

(iii) Equity

As unitholders can request for redemption of their units, they have been categorised as having a maturity of “up to 1 year”.



d. Reclassification of Shariah Status Risk

The risk that the currently held Shariah-compliant securities in the portfolio of Shariah-compliant funds may be reclassified to be Shariah non-compliant upon review of the securities by the Shariah Advisory Council of the Securities Commission Malaysia (“SACSC”) performed twice yearly. If this occurs, the Manager will take the necessary steps to dispose of such securities.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of Accounting

The financial statements of the Fund have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRS”) as issued by Malaysian Accounting Standards Board (“MASB”) and International Financial Reporting Standards (“IFRS”) issued by International Accounting Standards Board (“IASB”).

The accounting policies adopted are consistent with those of the previous financial year except for the adoption of the new and amended MFRS and IC interpretations which became effective for the Fund on 1 June 2013. The adoption of the new and amended MFRS and IC interpretations did not have any significant impact on the financial position or performance of the Fund.


b. Standard Amendments and Interpretations Issued But Not Yet Effective

The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies below.

As at the date of authorisation of these financial statements, the following Standards, Amendments and Interpretations have been issued by MASB but are not yet effective and have not been adopted by the Fund:

Description

Effective for financial period beginning on or

after

Amendments to MFRS 132: Offsetting Financial Assets and Financial Liabilities 1 January 2014

Amendments to MFRS 10, MFRS 12, and MFRS 127: Investment Entities 1 January 2014

Amendments to MFRS 136: Recoverable Amount Disclosure for Non-Financial Assets 1 January 2014

Amendments to MFRS 139: Novation of Derivatives and continuation of Hedge Accounting 1 January 2014

IC Interpretation 21 Levies 1 January 2014Amendments to MFRSs contained in the documents entitled

“Annual Improvements 2010 - 2012 cycle” 1 July 2014Amendments to MFRSs contained in the documents entitled

“Annual Improvements 2011 - 2013 cycle” 1 July 2014Amendments to MFRS 119: Defined Benefit Plans: Employee

Contributions 1 July 2014MFRS 14: Regulatory Deferral Accounts 1 January 2016Amendments to MFRS 116 and MFRS 138: Clarification of

Acceptable Methods of Depreciation and Amortisation1 January 2016

Amendments to MFRS 11: Accounting for Acquisitions of Interests in Joint Opperations

1 January 2016

Amendments to MFRS 116 and MFRS 141: Agriculture: Bearer Plants

1 January 2016

Amendments to MFRS 127: Equity Method in Separate Financial Statements

1 January 2016

Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

1 January 2016

Amendments to MFRSs contained in the documents entitled “Annual Improvements to MFRSs 2012 - 2014 cycle”

1 January 2016

MFRS 15 Revenue from Contracts with Customers 1 January 2017MFRS 9 Financial Instruments (IFRS 9 Financial Instruments as

issued by IASB in July 2014)1 January 2018


3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

b. Standards, Amendments and Interpretations Issued But Not Yet Effective (Contd.)

The Fund will adopt the above pronouncements when they become effective in the respective financial period. These pronouncements are not expected to have any significant impact to the financial statements of the Fund upon their initial application, other than MFRS 9.

MFRS 9 replaces MFRS 139 on the following requirements: classification and measurement of financial assets and financial liabilities as defined in MFRS 139, impairment methodology and hedge accounting. The Fund is in the process of making an assessment of the impact of this Standard.

c. Financial Assets

Shariah-compliant financial assets are classified as financial assets at FVTPL if they are held for trading or are designated as such upon initial recognition.

When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at FVTPL, directly attributable transaction costs.

The Fund determines the classification of its financial assets at initial recognition.

i. Financial assets at FVTPL

Shariah-compliant financial assets are classified as financial assets at FVTPL if they are held for trading or are designated as such upon initial recognition.

Shariah-compliant financial assets held for trading include quoted Shariah-compliant equity securities, quoted Shariah-compliant collective investment schemes and quoted Shariah-compliant warrants acquired principally for the purpose of selling in the near term.

Subsequent to initial recognition, financial assets at FVTPL are measured at fair value. Changes in the fair value of those Shariah-compliant financial instruments are recorded in profit or loss.

Profit earned and dividend revenue elements of such instruments are recorded separately in “profit income” and “dividend income”, respectively.

ii. Receivables

Financial assets with fixed or determinable payments that are not quoted in an active market are classified as receivables.

Subsequent to initial recognition, receivables are measured at amortised cost using the effective rate method. Gain or loss is recognised in profit or loss when the receivable is derecognised or impaired, and through the amortisation process.



c. Financial Assets (Contd.)

A financial asset is derecognised when the contractual right to receive cash flows from the asset has expired. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received is recognised in profit or loss.

d. Impairment of Financial Assets

The Fund assesses at each reporting date whether there is any objective evidence that a financial asset is impaired.

To determine whether there is objective evidence that an impairment loss on financial assets has been incurred, the Fund considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments.

If any such evidence exists, the amount of impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective rate of return. The impairment loss is recognised in profit or loss.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets, with the exception of receivables, where the carrying amount is reduced through the use of an allowance account. When a receivable becomes uncollectible, it is written off against the allowance account.

If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent that the carrying amount of the assets does not exceed its amortised cost at the reversal date. The amount of reversal is recognised in profit or loss.

e. Income

Income is recognised to the extent that it is probable that the economic benefits will flow to the Fund and the income can be reliably measured. Income is measured at the fair value of consideration received or receivable.

Profit income is recognised using the effective rate method.

Dividend income is recognised on declared basis, when the right to receive the dividend is established.

f. Cash and Cash Equivalents

For the purposes of the statement of cash flows, cash and cash equivalents include cash at bank and short term Islamic deposits with financial institutions.



g. Income Tax

Income tax on the profit or loss for the period comprises current tax. Current tax is the expected amount of income taxes payable in respect of the taxable profit for the period.

h. Unrealised Reserves

Unrealised reserves represent the net gain or loss arising from carrying Shariah-compliant investments at their fair values at reporting date. This reserve is not distributable.

i. Financial Liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability.

Financial liabilities are recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the financial instrument. The Fund’s financial liabilities are classified as other financial liabilities. The Fund’s financial liabilities are recognised initially at fair value and subsequently measured at amortised cost using the effective rate method.

A financial liability is derecognised when the obligation under the liability is extinguished. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through amortisation process.

j. Unitholders’ Contribution – NAV Attributable to Unitholders

The unitholders’ contribution to the Fund is classified as equity instruments.

Distribution equalisation represents the average amount of undistributed net income included in the creation or cancellation price of units. This amount is either refunded to unitholders by way of distribution and/or adjusted accordingly when units are released back to the Trustee.

k. Functional and Presentation Currency

The financial statements of the Fund are measured using the currency of the primary economic environment in which the Fund operates (“the functional currency”). The financial statements are presented in Ringgit Malaysia (“RM”), which is also the Fund’s functional currency.

l. Distribution

Distributions are at the discretion of the Manager. A distribution to the Fund’s unitholders is accounted for as a deduction from retained earnings.



m. Significant Accounting Judgments and Estimates

The preparation of financial statements requires the use of certain accounting estimates and exercise of judgment. Estimates and judgments are continually evaluated and are based on past experience, reasonable expectations of future events and other factors.

i. Critical judgments made in applying accounting policies

There are no major judgments made by the Manager in applying the Fund’s accounting policies.

ii. Key sources of estimation uncertainty

There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period.

4. MANAGER’S FEE

The Manager’s fee is computed on a daily basis at a rate not exceeding 1.5% per annum of the NAV of the Fund as provided under Clause 13.1 of the Deed.

The Manager is currently charging Manager’s fee of 1.50% per annum of the NAV of the Fund.

5. TRUSTEE’S FEE

The Trustee’s fee is computed on a daily basis at a rate not exceeding 0.10% per annum of the NAV of the Fund and subject to a minimum fee of RM18,000 per annum as provided under Clause 13.2 of the Deed.

The Trustee’s fee is computed on a daily basis at 0.05% per annum of the NAV of the Fund.

6. INCOME TAX

1.6.2014 to 30.11.2014

1.1.2013 to 30.6.2013

RM RMMalaysian income tax: Current year tax - 1,157 Overprovision of tax in prior year - 2,369

- 3,526

Income tax is calculated at the Malaysian statutory tax rate of 25% of the estimated assessable income for the financial period. The statutory tax rate will be reduced to 24% effective year of assessment 2016.


6. INCOME TAX (CONTD.)

Income tax is calculated on investment income less partial deduction for permitted expenses as provided for under Section 63B of the Income Tax Act, 1967.

A reconciliation of income tax expense applicable to net income before tax at the statutory income tax rate to income tax expense at the effective income tax rate of the Fund is as follows:

1.6.2014 to 30.11.2014

1.1.2013 to 30.6.2013

RM RM

Net (loss)/income before tax (4,692,657) 4,588,103

Tax at Malaysian statutory tax rate of 25% (financial period from 1 January 2013 to 30 June 2013: 25%) (1,173,164) 1,147,026

Tax effect of: Income not subject to tax (1,210,349) (1,215,523) Loss not subject to tax 2,055,511 - Expenses not deductible for tax purposes 113,255 11,742 Restriction on tax deductible expenses for unit trust fund 214,747 57,912 Under provision of tax in prior year - 2,369Income tax for the period - 3,526

7. FINANCIAL ASSETS AT FVTPL

30.11.2014 30.6.2013 RM RM

Financial assets held for trading, at FVTPL: Quoted Shariah-compliant equity securities 95,223,792 36,352,035 Quoted Shariah-compliant collective investment schemes 6,482,932 3,747,655 Quoted Shariah-compliant warrants 53,366 -

101,760,090 40,099,690

1.6.2014 to 30.11.2014

1.1.2013 to 30.6.2013

RM RMNet (loss)/gain on financial assets at FVTPL comprised: Realised gain on disposals 3,169,166 1,319,798 Unrealised changes in fair values (8,222,045) 2,922,148

(5,052,879) 4,241,946


7. FINANCIAL ASSETS AT FVTPL (CONTD.)

Details of financial assets at FVTPL as at 30 November 2014:

QuantityAggregate

cost Fair valuePercentage

of NAV RM RM %

Quoted Shariah-compliant equity securities

Trading/ServicesAEON Co. (M) Berhad 430,400 1,681,897 1,480,576 1.2 Alam Maritim Resources Berhad 1,928,200 2,405,312 1,484,714 1.2 Berjaya Auto Berhad 146,200 467,840 489,770 0.4 Dayang Enterprise Holdings Bhd. 994,200 3,104,902 2,793,702 2.3 Deleum Berhad 658,500 1,288,746 1,205,055 1.0 Destini Berhad 1,737,900 1,123,012 1,007,982 0.8 Dialog Group Berhad 1,383,676 1,896,932 2,047,840 1.7 DKSH Holdings (M) Berhad 117,600 959,343 736,176 0.6 Integrax Berhad 187,000 373,380 430,100 0.4 Malaysian Airline System Berhad 14,433,400 3,680,517 3,824,851 3.1 Media Chinese International Limited 1,046,200 1,165,027 899,732 0.7 Oldtown Berhad 643,000 1,343,605 1,022,370 0.8 Perdana Petroleum Berhad

[Note 10(b)(i)] 408,560 621,405 510,700 0.4 Perisai Petroleum Teknologi Berhad 674,100 1,031,373 451,647 0.4 PESTECH International Berhad 672,566 1,110,690 2,575,928 2.1 PETRONAS Dagangan Berhad 220,000 4,631,256 3,528,800 2.9 SapuraKencana Petroleum Berhad

[Note 10(b)(i)] 1,110,800 4,125,730 3,110,240 2.5 Scicom (MSC) Berhad 645,840 939,639 1,091,470 0.9 Sime Darby Berhad 113,981 1,061,277 1,099,917 0.9 Suria Capital Holdings Berhad 429,448 1,091,333 1,077,914 0.9 Telekom Malaysia Berhad 7,906 43,368 55,974 0.1 Tenaga Nasional Berhad 349,000 3,596,387 4,976,740 4.1 UMW Oil & Gas Corporation Berhad 215,400 648,230 609,582 0.5 Uzma Berhad 521,300 1,499,643 1,110,369 0.9

29,075,177 39,890,844 37,622,149 30.8



Details of financial assets at FVTPL as at 30 November 2014 (Contd.):

QuantityAggregate


of NAV RM RM %

Quoted Shariah-compliant equity securities (Contd.)

PlantationBatu Kawan Berhad 183,100 3,337,246 3,387,350 2.8 Boustead Plantations Berhad 943,900 1,510,240 1,434,728 1.2 IJM Plantations Berhad 63,900 199,055 230,040 0.2 Kuala Lumpur Kepong Berhad 56,600 1,280,484 1,270,104 1.0 Sarawak Oil Palms Berhad 309,000 1,849,368 1,761,300 1.4 TSH Resources Berhad 383,500 754,203 859,040 0.7 United Plantations Berhad 144,700 3,395,934 3,385,980 2.8

2,084,700 12,326,530 12,328,542 10.1

PropertiesCrescendo Corporation Berhad 256,400 666,640 697,408 0.6 Eastern & Oriental Berhad 1,184,300 2,646,466 3,019,965 2.5 Malton Berhad 1,308,800 1,301,220 1,348,064 1.1 Matrix Concepts Holdings Berhad 1,084,100 3,015,295 3,133,049 2.5 Sunway Berhad 380,800 1,225,348 1,287,104 1.0 Tambun Indah Land Berhad 1,079,600 2,444,970 2,299,548 1.9

5,294,000 11,299,939 11,785,138 9.6

Industrial productsCoastal Contracts Bhd. 433,800 1,606,519 1,366,470 1.1 DRB-HICOM Berhad 1,179,700 2,549,618 2,135,257 1.7 Kossan Rubber Industries Berhad 137,300 435,752 590,390 0.5 PETRONAS Chemicals Group Berhad 167,400 956,222 942,462 0.8 PETRONAS Gas Berhad 157,900 3,263,564 3,584,330 2.9 Reach Energy Berhad 1,180,800 777,770 696,672 0.6 Scientex Berhad 102,400 455,680 773,120 0.6 Top Glove Corporation Berhad 109,500 644,714 500,415 0.4 V.S. Industry Berhad 317,000 602,300 808,350 0.7

3,785,800 11,292,139 11,397,466 9.3




QuantityAggregate


of NAV RM RM %

Quoted Shariah-compliant equity securities (Contd.)

Consumer productsDutch Lady Milk Industries Berhad 53,000 2,464,448 2,401,960 2.0 Nestlé (M) Berhad 36,400 2,177,914 2,486,120 2.0 Oriental Holdings Berhad

[Note 10 (b)(i)] 70,000 605,173 504,000 0.4 QL Resources Berhad 492,050 1,141,466 1,682,811 1.4 Sasbadi Holdings Berhad 222,300 318,289 346,788 0.3

873,750 6,707,290 7,421,679 6.1

ConstructionEconpile Holdings Berhad 1,688,500 1,634,977 1,663,172 1.4 Gamuda Berhad 385,200 1,735,512 2,033,856 1.7 Hock Seng Lee Berhad 359,700 711,467 654,654 0.5 Mitrajaya Holdings Berhad 527,500 524,282 601,350 0.5 WCT Holdings Berhad 205,838 497,782 378,742 0.3

3,166,738 5,104,020 5,331,774 4.4

TechnologyGlobetronics Technology Bhd. 568,400 2,135,902 2,557,800 2.1 Inari Amertron Berhad 511,200 1,337,250 1,462,032 1.2 K-One Technology Berhad 2,042,000 755,540 908,690 0.7

3,121,600 4,228,692 4,928,522 4.0

FinanceSyarikat Takaful Malaysia Berhad 277,700 2,286,198 3,043,592 2.5

InfrastructureDiGi.Com Berhad 217,000 1,019,867 1,364,930 1.1

Total quoted Shariah-compliant equity securities 47,896,465 94,155,519 95,223,792 77.9




QuantityAggregate


of NAV RM RM %

Quoted Shariah-compliant collective investment schemes

Al-Aqar Healthcare REIT 1,455,500 1,933,204 2,023,145 1.7Axis Real Estate Investment Trust 1,256,278 4,001,954 4,459,787 3.6Total quoted Shariah-compliant

collective investment schemes 2,711,778 5,935,158 6,482,932 5.3

Quoted Shariah-compliant warrants

Reach Energy Berhad-WA 395,300 - 53,366 -Total quoted Shariah-compliant

warrants 395,300 - 53,366 -

Total financial assets at FVTPL 100,090,677 101,760,090 83.2

Unrealised gain on financial assets at FVTPL 1,669,413

8. SHORT TERM ISLAMIC DEPOSITS

Short term Islamic deposits are held with licensed financial institutions in Malaysia, on a daily renewal basis at the prevailing profit rate.

9. OTHER RECEIVABLES

30.11.2014 30.6.2013RM RM

Amount due from stockbrokers 1,237,757 - Dividends receivable 131,475 65,749 Profit receivable from short term Islamic deposits 3,960 1,260

1,373,192 67,009


10. SHARIAH INFORMATION OF THE FUND

(a) Amount due to baitulmal

Amount due to baitulmal comprises the net gain amounting to RM21,796.20 from the disposal of IOI Properties Group Bhd, a Shariah non-compliant security, which was acquired on 19 December 2013 and subsequently disposed of on 15 January 2014.

(b) The Shariah Adviser confirmed that the investment portfolio of the Fund is Shariah-compliant, which comprises the following:

(i) Equity securities listed on Bursa Malaysia Securities Berhad which have been classified as Shariah-compliant by the SACSC for the corresponding period, except for Oriental Holdings Berhad, security which was reclassified as Shariah non-compliant by the SACSC on 29 November 2013 as well as Perdana Petroleum Berhad and SapuraKencana Petroleum Berhad, securities which were reclassified as Shariah non-compliant by the SACSC on 28 November 2014. These securities will be disposed of once the total amount of dividends received and the market value of these securities equal the original investment costs;

(ii) Investment in collective investment schemes listed on Bursa Malaysia Securities Berhad which was verified as Shariah-compliant by the Shariah Adviser;

(iii) Liquid assets in the local market, which have been placed in Shariah-compliant investments and/or instruments.

11. OTHER PAYABLES

30.11.2014 30.6.2013RM RM

Amount due to stockbrokers 1,250,166 43,380 Accruals for auditors’ remuneration 14,196 9,808 Provision for tax agent’s fees 4,500 4,471 Provision for printing and other expenses 5,613 5,217

1,274,475 62,876


12. NET ASSET VALUE ATTRIBUTABLE TO UNITHOLDERS

NAV attributed to unitholders is represented by:

Note 30.11.2014 30.6.2013RM RM

Unitholders’ contribution (a) 111,971,445 37,947,919 Retained earnings: Realised reserves 8,611,673 4,832,638 Unrealised reserves 1,669,413 5,175,519

10,281,086 10,008,157

122,252,531 47,956,076

(a) Unitholders’ contribution

1.6.2014 to 30.11.2014 1.1.2013 to 30.6.2013No. of units RM No. of units RM

At beginning of the period 74,749,934 75,628,913 30,245,420 24,850,204

Add: Creation of units 46,108,018 55,912,957 16,603,957 11,312,850Less: Cancellation of

units (16,407,540) (19,947,518) (4,576,100) (2,856,152)Distribution equalisation - 377,093 - 4,641,017At end of the period 104,450,412 111,971,445 42,273,277 37,947,919

The number of units legally or beneficially held by the Manager, Kenanga Investors Berhad, and parties related to the Manager as at 30 November 2014 were nil (nil as at 30 June 2013), and the number of units legally or beneficially held by the parties related to the Manager as at 30 November 2014 were 3,562,686 units valued at RM4,188,294 (3,381,634 units valued at RM3,856,063 as at 30 June 2013).


13. NET ASSET VALUE PER UNIT

In line with the adoption of MFRS 139, financial assets at FVTPL have been valued at the bid prices at the close of business. In accordance with the Deed, the calculation of NAV attributable to unitholders per unit for the creation and cancellation of units is computed based on financial assets at FVTPL valued at the last done market price.

A reconciliation of NAV attributable to unitholders for creation/cancellation of units and the NAV attributable to unitholders per the financial statements is as follows:

30.11.2014 30.6.2013RM RM/Unit RM RM/Unit

NAV attributable to unitholders for creation/cancellation of units 122,793,264 1.1756 48,193,847 1.1400

Adjustment on purification and cleansing (21,796) (0.0002) - -

Effects of adopting bid prices as fair value (518,937) (0.0050) (237,771) (0.0056)

NAV attributable to unitholders per statement of financial position 122,252,531 1.1704 47,956,076 1.1344

14. PORTFOLIO TURNOVER RATIO

The portfolio turnover ratio (“PTR”) for the financial period from 1 June 2014 to 30 November 2014 is 0.38 times (0.32 times for financial period from 1 January 2013 to 30 June 2013).

PTR is the ratio of the average acquisitions and disposals of Shariah-compliant investments of the Fund for the period to the average NAV of the Fund, calculated on a daily basis.

15. MANAGEMENT EXPENSE RATIO

The management expense ratio (“MER”) for the financial period from 1 June 2014 to 30 November 2014 is 0.80% (0.83% for financial period from 1 January 2013 to 30 June 2013).

MER is the ratio of total fees and recovered expenses of the Fund expressed as a percentage of the Fund’s average NAV, calculated on a daily basis.


16. TRANSACTIONS WITH STOCKBROKING COMPANIES/FINANCIAL INSTITUTIONS

Transaction value

Percentage of total

Brokerage, stamp duty

and clearing fee

Percentage of NAV

RM % RM %

Kenanga Investment Bank Berhad* 29,453,724 35.3 73,245 31.9

CIMB Investment Bank Berhad 12,288,324 14.7 35,413 15.4 Affin Hwang Investment Bank

Berhad (formerly known as Affin Investment Bank Berhad) 11,306,226 13.5 33,258 14.5

RHB Investment Bank Berhad 7,356,564 8.8 26,801 11.7 Hong Leong Investment Bank

Berhad 7,284,001 8.7 20,526 8.9 Maybank Investment Bank

Berhad 6,064,936 7.3 14,662 6.4 UOB Kay Hian Securities (M)

Sdn Bhd 5,813,415 7.0 15,343 6.7 JPMorgan Securities (Malaysia)

Sdn Berhad 1,956,882 2.4 5,108 2.2 Public Investment Bank Berhad 1,684,913 2.0 4,285 1.9 HwangDBS Investment Bank

Berhad 270,520 0.3 820 0.4 83,479,505 100.0 229,461 100.0

* Kenanga Investment Bank Berhad is a related party of Kenanga Investors Berhad.

The above transaction values are in respect of quoted Shariah-compliant equity securities, quoted Shariah-compliant collective investment schemes and quoted Shariah-compliant warrants.

The directors of the Manager are of the opinion that the transactions with the related party have been entered into in the normal course of business and have been established on terms and conditions that are not materially different from that obtainable in transactions with unrelated parties. The Manager is of the opinion that the above dealings have been transacted on an arm’s length basis.


17. SEGMENTAL REPORTING

a. Business Segments

In accordance with the objective of the Fund, the Fund can invest 75% to 95% in quoted Shariah-compliant investment securities. The following table provides an analysis of the Fund’s revenue, results, assets and liabilities by business segments:

Quoted Shariah-compliant

investment securities

Other Shariah-compliant

investments TotalRM RM RM

30.11.2014RevenueSegment (loss)/income (3,789,336) 408,687Segment expenses (411,435) -Net segment (loss)/income

representing segment results (4,200,771) 408,687 (3,792,084)Unallocated expenditure (900,573)Loss before tax (4,692,657)Income tax -Net loss after tax (4,692,657)

AssetsFinancial assets of FVTPL 101,760,090 -Short term Islamic deposits - 19,660,000Other segment assets 1,369,232 3,960Total segment assets 103,129,322 19,663,960 122,793,282Unallocated assets 760,189

123,553,471LiabilitiesOther segment liabilities

representing total segment liabilities 1,250,166 - 1,250,166

Unallocated liabilities 50,7741,300,940


17. SEGMENTAL REPORTING (CONTD.)

a. Business Segments (Contd.)

Quoted Shariah-compliant

investment securities

Other Shariah-compliant

investments TotalRM RM RM

30.6.2013RevenueSegment income 4,830,894 93,435Segment expenses (26,964) -Net segment income

representing segment results 4,803,930 93,435 4,897,365Unallocated expenditure (309,262)Income before tax 4,588,103Income tax expense (3,526)Net income after tax 4,584,577

AssetsFinancial assets of FVTPL 40,099,690 -Short term Islamic deposits - 7,695,000Other segment assets 65,749 1,260Total segment assets 40,165,439 7,696,260 47,861,699Unallocated assets 160,155

48,021,854LiabilitiesOther segment liabilities

representing total segment liabilities 43,380 - 43,380

Unallocated liabilities 22,39865,778

b. Geographical Segments

As all of the Fund’s Shariah-compliant investments are located in Malaysia, the Fund does not have separate identifiable geographical segments.


18. FINANCIAL INSTRUMENTS

a. Classification of financial instruments

The Fund’s financial assets and financial liabilities are measured on an ongoing basis at either fair value or at amortised cost based on their respective classification. The significant accounting policies in Note 3 describe how the classes of financial instruments are measured, and how income and expenses, including fair value gain and loss, are recognised.

The following table analyses the financial assets and liabilities of the Fund in the statement of financial position by the class of financial instrument to which they are assigned and therefore by the measurement basis.

Financial assets at

FVTPL ReceivablesFinancial liabilities Total

RM RM RM RM

30.11.2014AssetsQuoted Shariah-compliant

equity securities 95,223,792 - - 95,223,792 Quoted Shariah-compliant

collective investment schemes 6,482,932 - - 6,482,932

Quoted Shariah-compliant warrants 53,366 - - 53,366

Short term Islamic deposits - 19,660,000 - 19,660,000 Amount due from Manager - 692,320 - 692,320 Other receivables - 1,373,192 - 1,373,192 Cash at bank - 40,358 - 40,358

101,760,090 21,765,870 - 123,525,960

LiabilitiesAmount due to Trustee - - 4,669 4,669 Other payables - - 1,296,271 1,296,271

- - 1,300,940 1,300,940


18. FINANCIAL INSTRUMENTS (CONTD.)

a. Classification of financial instruments (Contd.)

Financial assets at

FVTPL ReceivablesFinancial liabilities Total

RM RM RM RM

30.6.2013AssetsQuoted Shariah-compliant

equity securities 36,352,035 - - 36,352,035 Quoted Shariah-compliant


Short term Islamic deposits - 7,695,000 - 7,695,000 Amount due from Manager - 70,884 - 70,884 Other receivables - 67,009 - 67,009 Cash at bank - 55,348 - 55,348

40,099,690 7,888,241 - 47,987,931

LiabilitiesAmount due to Trustee - - 2,902 2,902 Other payables - - 62,876 62,876

- - 65,778 65,778


18. FINANCIAL INSTRUMENTS (CONTD.)

b. Financial instruments that are carried at fair value

The Fund’s financial assets at FVTPL are carried at fair value. The fair values of these financial assets were determined using prices in active markets.

The following table shows the fair value measurements by level of the fair value measurement hierarchy:

Level 1 Level 2 Level 3 TotalRM RM RM RM

Investments:30.11.2014- Quoted Shariah-compliant

equity securities 95,223,792 - - 95,223,792 - Quoted Shariah-compliant


- Quoted Shariah-compliant warrants 53,366 - - 53,366

30.6.2013- Quoted Shariah-compliant

equity securities 36,352,035 - - 36,352,035- Quoted Shariah-compliant


Level 1: Quoted prices in active marketLevel 2: Model with all significant inputs which are observable market dataLevel 3: Model with inputs not based on observable market data

The fair value of quoted Shariah-compliant equity securities, quoted Shariah-compliant collective investment schemes and quoted Shariah-compliant warrants are determined by reference to Bursa Malaysia Securities Berhad’s bid prices at reporting date.

c. Financial instruments not carried at fair value and whose carrying amounts are reasonable approximations of fair value

The carrying amounts of the Fund’s other financial assets and liabilities that are not carried at fair value approximate fair values due to the relatively short term maturity of these financial instruments.


19. CAPITAL MANAGEMENT

The capital of the Fund can vary depending on the demand for creation and cancellation of units to the Fund.

The Fund’s objectives for managing capital are:

a. To invest in Shariah-compliant investments meeting the description, risk exposure and expected return indicated in its prospectus;

b. To maintain sufficient liquidity to meet the expenses of the Fund, and to meet cancellation requests as they arise; and

c. To maintain sufficient fund size to make the operation of the Fund cost-efficient.

No changes were made to the capital management objectives, policies or processes during the current and previous financial period.


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Head Office, Kuala LumpurSuite 12.02, 12th Floor, Kenanga International, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia.Tel: 03-2057 3688 Fax: 03-2161 8807

Documents

KENANGA SYARIAH GROWTH FUND SYARIAH GROWTH FUND ... Melaka No. 25-1 Jalan Kota ... and equity related securities of companies with sustainable business model and trading at a