2019 BI annFundStatement

For All For Life
TAKAFULINK FUNDS REPORT 2019

Takafulink Reports and Statements
for the year ended 31 December 2019
Dear Certificate Holders,
We have the pleasure in presenting to you the
Takafulink Funds Report 2019 of Prudential BSN Takaful
Berhad. This report is also available on our website at
www.prubsn.com.my.
Contents
2 Message from Chief Executive Officer 38 Statement of Assets and Liabilities
5 Fund Objectives 45 Statement of Changes in Net Asset Value
5 Investment Review 48 Statement of Income and Expenditure
10 Fund Performance 55 Notes to the Accounts
11 Investment Outlook 56 Statement by Directors
15 Financial Highlights 57 Independent Auditors’ Report
30 Details of Investments
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Message from
Chief Executive Officer
In the name of Allah, Most Gracious and Most

Merciful
Dear valued Takafulink Certificate Holders,
It gives me great pleasure to share with you the

2019 Takafulink Funds Report. We continuously
seek opportunities to engage, educate and
empower our stakeholders. Our Takafulink Funds
Report is one such opportunity to communicate
with you our growth strategies, achievements,
and our continuing mission, in a transparent and
meaningful manner.
2 Takafulink Funds Report 2019

I am pleased to announce that all our flagship funds have Takaful For All, For Life
delivered positive results over the past year. For instance,
Takafulink Dana Ekuiti and Takafulink Dana Ekuiti Dinasti We have continued our efforts to help increase takaful
have done well with 4.57% and 24.24% return respectively. penetration and closing the protection gap of Malaysians by
Please see page 10 to 29 for full details of fund performances. introducing affordable and accessible products in 2019. We
launched PruBSN WarisanPlus, a legacy solution designed to
provide high cash benefits to help replace a person’s income
Mutual Assistance & Surplus Sharing
for the purpose of paying for sustenance of dependence,
Our business is premised on the concept of Ta’awun alternative medical treatment or debt settlement, among
(co-operation and mutual assistance) which means, your others. In response to Malaysian’s lack of financial readiness,
participation in our takaful plan will not only protect we introduced PruBSN Aspirasi which offers a steady stream
yourself but also other fellow participants during times of of income to grow funds for the long term, whether it is to
misfortune, such as loss of life or permanent disability. Every supplement retirement nest egg, financing a child’s education
time you make contribution payment for your takaful plan, a or fulfill other life aspirations.
portion of the amount is channeled into the Tabarru’ Fund of
Through PruBSN Microtakaful Jariyah, we are extending our
which this fund will be utilised for the above purpose.
reach to the underserved B40 segment. Since the launch of the
Through your collective participation, we have managed to programme in March 2018, more than 15,000 breadwinners
provide coverage for over 900,000 customers in Malaysia. from the low-income households have benefitted from the
More specifically, with the Tabarru’ that we have collected programme which provides complimentary life protection
in 2019, we have utilised this to pay out a total of RM531 coverage worth RM10,000 for a 12-month term. We have
million involving over 126,000 claims cases. In addition, further raised over RM69,000 through customers’ donation
with the excess in the Tabarru’ fund (the balance after deducting via Ihsan rider and employee donation via Giving @ Workplace
all claims payable and reserves), we will be distributing RM49.5 initiative, which allows an additional 867 recipients to benefit
million back to over 613,000 Takafulink certificate holders. from the programme.
The metrics above is a clear proof of our focus in ensuring
efficient and ethical management of claims on behalf of
certificate holders.
Takafulink Funds Report 2019 3

Message from
Chief Executive Officer
Takaful For All, For Life (continued) Every success we achieved in 2019 is a reflection of the trust
our employees, partners and customers have in us and we
Prudential in Malaysia is also driving a step change in thank you for your continued support.
how Malaysians can proactively manage their health and
wellbeing with Pulse by Prudential app. Since its launch in If you wish to find out more information about this report,
August 2019, Pulse has crossed over 1 million downloads and please refer to www.prubsn.com.my, or contact us at
registration. Pulse is the future - it will enable us to expand 03-20537188 or e-mail to customer@prubsn.com.my.
our reach to millions more Malaysians and help provide them
Best wishes for a prosperous, healthy and peaceful year ahead.
with accessible and affordable healthcare.
All our efforts have gained us wider recognition at local Yours sincerely,
and international levels last year. We were conferred the
coveted Best Takaful Operator for Agency Family Takaful
Business, Best CSR and Race for Cover Special Awards by the
Malaysian Takaful Association. We won the Best Family
Takaful and Upcoming Personality Risk Management at the Wan Saifulrizal Wan Ismail
Global Islamic Finance Awards. For our excellence in product Chief Executive Officer
innovation and marketing, we brought home the Best Brand Prudential BSN Takaful Berhad
Loyalty Campaign (Silver) and Best Innovative Idea or Concept
(Black). Most recently, PruBSN was also named Best Family
Takaful Operator and CSR Company of the Year by the Asia
Halal Brand Awards.

Fund Objectives Investment Review
The Takafulink Dana Ekuiti aims to maximise returns over Equity Market
medium-to-long term by investing in high quality Shariah-
compliant equities listed on Bursa Malaysia. For Q1 2019, FBM KLCI bucked the regional up-trend and
was one of the worst performing indices in emerging market.
The Takafulink Dana Bon aims to provide medium-to-long term The regional uplift in sentiment was due to the dramatic shift
accumulation of capital by investing in selected sukuk and in US Federal Reserve policy to a more dovish stance and
Islamic money market instruments. improving rhetoric from the US-China trade talks. In addition,
China’s fresh stimulus measures helped sustain the positive
The Takafulink Dana Urus seeks to maximise returns over sentiment. On the local front, investors were disappointed
medium-to-long term by investing in Shariah-compliant with Malaysian corporates as reported results were once again
equities, sukuk and Islamic money market instruments through disappointing. 2019 was the fourth year of sub-par earnings
Takafulink Dana Ekuiti and Takafulink Dana Bon, and in any growth. Towards the end of the Q1 2019, big cap stocks
other such Takafulink funds that may become available in corrected post the Invest Malaysia event held on 19-20 March,
the future. amidst the risk to earnings for banks due to a possible rate
cut, slower corporate earnings growth prospects and policy
The Takafulink Dana Ekuiti Dinasti aims to provide long-
uncertainty.
term capital appreciation by investing in Shariah-compliant
investments with exposure to the Greater China region. The start of Q2 2019 saw regional markets rally on the back of
positive US-China trade talks prospects and improved global
The Takafulink Dana Dinamik aims to provide capital
outlook. However, this quickly turned sour by the month of
appreciation by actively investing in Shariah-compliant equities
May following the abrupt end of negotiations to the US-China
and Shariah-compliant equity-related securities. For defensive trade deal with the US raising tariffs on imports from China to
considerations, the Fund may invest in Islamic debentures 25% on USD200bn of goods effective 10 May 2019. This was
and Islamic money market instruments. followed by steps to stifle China’s technology sector with what
The Takafulink Dana Aktif aims to provide capital appreciation was effectively a ban on American firms from supplying parts
by investing in small market capitalisation Shariah-compliant to Chinese telecommunications giant Huawei Technologies.
securities of companies with growth potential. China retaliated with higher tariffs of up to 25% on USD60bn
of US goods effective 1 June 2019, with the Chinese leadership
The Takafulink Dana Ekuiti Global aims to provide capital hinting at further retaliatory measures against the US. Regional
appreciation by investing in Shariah-compliant investments markets rebounded in the month of June, with news of US and
with exposure to the global equity markets. China restarting their trade talks post the G20 meeting held in
Japan at the end of the month. Contrary to regional markets,
the Malaysian equity market struggled to perform early
Q2 2019, dampened by news of the potential exclusion of
Malaysia from the FTSE Russell’s World Government Bond Index
(WBGI) after their review come September, weaker Malaysian
Ringgit, cut in the Overnight Policy Rate (OPR) of 25bps, and
corporate results reporting that was not very inspiring.
Investment Review
Equity Market (continued) Global equity markets ended the year with solid gains in
general, as the US agreed to a Phase 1 trade deal with China,
The first two months of Q3 2019 saw regional markets correct and cancelled tariffs on US$160bn of Chinese goods due to
largely due to an escalation in the trade war and fear of take effect on 15 Dec 2019. While details of the deal were hard
increasing recession risks sparked by the further collapse in to come by, the agreement in principle lifted a cloud that had
global bond yields. President Trump announced an additional been hanging on the global economy all year. In addition, the
10% tariff on a further USD300bn in Chinese imports starting decisive win by the ruling Conservative Party in the UK elections,
1 September 2019, followed by the US designating China as almost guarantees the UK will leave the EU on 31 January
a “currency manipulator”. By the end of Q3 2019, global and 2020, albeit with a 23-month transitory period, providing
regional equity markets reversed some of the losses amid clarity on Brexit. Domestically, Malaysian equities continued to
renewed optimism as US and China return to the negotiation be one of the worst performers in the region. During Q4 2019,
tables again. However, markets lost some momentum the Budget 2020 announced measures aimed at promoting
following a drone attack on Saudi’s oil facilities and an jobs, FDIs and structural reforms, rather than the traditional
impeachment inquiry launched against the US President Trump. mega infrastructure pump-priming, and offered tax incentives
The Malaysian equity market remained weak in light of the that should benefit the electronic and manufacturing sectors.
external headwinds faced. Domestically, the Malaysian ringgit Malaysian equities were also subject to foreign outflows due
depreciated by about 1.34% for Q3 2019, given its correlation to various index rebalancing activities. In November 2019, the
with the China’s CNY which depreciated 4.1% against the MSCI Emerging Market Index saw an estimated net outflow of
USD. Brent crude oil prices declined by 8.67% for the Q3 USD300-400m. Results reporting for Q3 2019 was uninspiring,
2019 on concerns of slowing global growth and demand. The which will likely see the KLCI earnings for 2019 report another
June 2019 results season reported was uninspiring yet again year of negative growth (2018: -2.8%).
with more downgrades in earnings by consensus. Investor The FBM KLCI closed the year under review at 1,588.76 points,
sentiment domestically weakened following the end to down 6.02%. The broader FBM Emas (FBMEmas) Index closed
Axiata and Telenor Asia merger talks due to “complexities”, the period under review down by 1.77%. The MSCI Asia Pacific
which led to profit taking activities. FTSE Russell’s decision to ex-Japan Index increased by 15.85% in USD terms.1
defer Malaysia’s exclusion from the WGBI and keeping it on
the watchlist, was a relief but could be a case of kicking the
can down the road, with the next review in March 2020.
1
Source: Bloomberg: World Indices

Investment Review
Sukuk Market Review meetings for the year, BNM maintained its policy rate, largely
consistent with market’s expectation for BNM to keep its
US Federal Reserve (Fed) maintained the Fed Fund Rate in the powder dry on the back of improving visibility from the Budget.
first half of the year at 2.25-2.50%. As economic slow down
threat loomed in the face of global weakness and heightened In April 2019, FTSE Russell announced changes to its market
geopolitical risks, the Fed delivered a total of 3 cuts of 25bps accessibility methodology which resulted in Malaysia being
each in 3 consecutive meetings – July, September and October placed in its watchlist for potential exclusion from the
- citing modest mid-cycle adjustments to its monetary policy WGBI. Since then, BNM has announced several initiatives
which brought the Fed Fund Rate to 1.50%-1.75%. In the to deepen and broaden onshore foreign exchange and fixed
December meeting, policymakers unanimously voted to income market liquidity. In September 2019, FTSE Russell still
keep the policy rate unchanged as economic data have been maintained Malaysia in its watchlist for exclusion from WGBI,
resilient and previous rate cuts have yet to fully filter through citing expectation for continued discussion with BNM as well
the economy, which accorded the Fed some policy space in the as the index users. The next index review is slated to be in
event of further economic weakness. Similarly, the easing of March 2020, where market volatility is expected to resurface
monetary policies by global central banks to either combat an prior to the announcement as investors weight in on the
already slowing growth or to protect against downside risk to different outcome probabilities.
growth, have resulted in lower fixed income yields globally.
On the economic front, Malaysia’s Gross Domestic Product
The trade tensions between the US and China have dominated (GDP) growth for the third quarter of 2019 moderated to 4.4%
news headlines during the period under review with rounds (Q2 2019: 4.9%), mainly due to lower growth in the nation’s
of de-escalation and re-escalation, sending global financial key sectors and a decline in the mining and construction
markets into cycles of risk-on and risk-off modes. However, activities. On a quarter-on-quarter seasonally-adjusted basis,
market sentiment improved towards the end of 2019 with the economy grew by 0.9% (Q2 2019: 1.0%). Private sector
progress on the US-China Phase one deal. In the UK, Prime activity continued to drive growth – private consumption
Minister Johnson won the UK election by a wide margin, increased +7.0% (Q2 2019: 7.8%), which was supported by
giving him more control over the parliament and subsequently firm household spending backed by continued income growth
his plan for the UK to leave EU by 31 January 2020. Both the and moderately low inflation. For the year 2019, official
positive US-China deal and better clarity on Brexit reduced two BNM GDP growth forecast remained at 4.3 – 4.8%. Headline
of the geopolitical risks that had plagued markets for years, inflation in November 2019 was recorded lower at +0.9%
have turned market sentiment positive towards the close year-on-year compare to October (+1.1% year-on-year).
of 2019. Inflation rate for 2019 is expected to be anchored around
the current levels with the delay in the targeted fuel subsidy
BNM cut the OPR by 25bps to 3.00% on 7 May 2019, its first implementation and the lapse of tax holiday impact. For the
rate cut since January 2018, as a pre-emptive move to insure full year, BNM maintains its inflation forecast at 0.70% - 1.70%
against downside risks in the Malaysian economy due to the while the government expects 2019 inflation to be subdued
uncertainties in the global environment. In the subsequent at 0.9%.

Investment Review
Sukuk Market Review (continued) 27.3% with substantial support from the US (+31.6%), Europe
(+24.6%) and Japan (+20.1%) and, while Emerging Markets
For the period under review, the 3-, 5-, 10- and 15-year also saw solid returns, they underperformed notably with
Malaysian Government Securities (MGS) yields decreased by Emerging Asia up only 19.7%, Latin America 17.9% higher and
64bps, 61bps, 77bps and 84bps to close at 2.98%, 3.15%, EMEA gaining just 16.3%.
3.30%, and 3.60% respectively. Similarly, the 3-, 5-, 10- and
15-year Government Investment Issue GII yields decreased The outperformance of the US was pillared by two main
by 62bps, 64bps, 82bps and 89bps to close at 3.06%, 3.19%, events. First, the changes to America’s tax laws in December
3.42%, and 3.72% respectively. Both MGS & GII yield curve 2018 that paved the way for large-scale share buyback
bull-flattened during the period mirroring the move in the schemes; and second, the “Powell Pivot” when Federal Reserve
global fixed income market on the back of (1) escalation of trade Chair Jay Powell indicated in July there would be an interest
tension between US and China, (2) consecutive global growth rate cut instead of a rise. Central banks around the world
outlook downgrades amidst materialisation of downside risk, followed suit and either cut rates where they could or re-
and (3) a series of policy rate cuts by global central banks introduced quantitative easing programmes where cuts were
with market’s expectation of more cuts. Meanwhile, corporate more difficult.
fixed income security yields generally moved in tandem with
Towards the end of the year, signals that a trade deal between
sovereign fixed income security yields, albeit at a lag. Activities
the US and China was imminent provided further support. This
in the corporate fixed income market continued to be vibrant,
propelled export-orientated markets as far apart as Germany
supported by ample liquidity and a stable credit environment.
and Korea, as well as China, to bounce back in the autumn
On the supply front, total corporate fixed income issuances from a weak summer quarter. Meanwhile, the low interest
during the period stood around RM82bn. Major primary rate environment and a strong labour market encouraged
issuances during the period were mainly government consumption to remain robust throughout developed markets
guaranteed fixed income securities and highly-rated corporates and in most emerging ones too, with the exception of Hong
fixed income securities. Kong that was wracked by social unrest for most of the year.
Offsetting the positive aspects were manufacturing datasets
Global Market Review that showed weakness for much of the year. PMI data from
Japan, Eurozone, UK and China all dipped below the 50
Developed Markets outperform Emerging Markets level, indicating contraction, while the US narrowly avoided
At the beginning of the year, weak economic data, rising the same fate. During the third quarter, these showed signs
interest rates, trade headwinds and concerns over Brexit of improvement, but it was not enough to stop Industrial
pointed to an uncertain year ahead for equities but, instead, Production levels from showing negative growth for most of
the equity markets delivered one of their best years since 2019 throughout developed markets.
the Global Financial Crisis. The MSCI World Index returned

Investment Review
Global Market Review (continued) Economic weakness was also responsible for both Thailand
(+9.8%) and Malaysia (-2.0%) underperforming. With
Asia outperforms other Emerging Markets but only just Thailand, the country’s ‘safe haven’ status led it to outperform
notably in Q2 2019 when fears of a global and Asia-wide
Many of the year’s equity market catalysts took place in
economic slowdown were at their height but the country failed
Developed Markets, especially the US, and were also responsible
to join the global equity rally in Q4 2019 as macroeconomic
for an appreciation of the US dollar, which in turn, was partly
indicators and the currency weakened. It should be noted
responsible for Emerging Markets’ underperformance. Also
however that despite its poor year, Thailand was the best
weighing was the trade dispute gyrations which hurt the performing MSCI index over the ten years from 2010-2019 with
export-orientated markets of China and Korea especially. more than 180% total return.
China had a relatively volatile 12 months but closed the year Malaysia’s economy continued to struggle despite the election
outperforming EM Asia with a 23.7% return, with two-thirds in 2018 of a new government and this was reflected in the
of this gain coming in the final quarter. A potential resolution country’s equity performance; with the exception of Chile,
of the trade dispute with the US and small-scale stimulus which fell under the weight of severe social unrest problems
packages from Beijing lent a hand in the fourth quarter. and a devaluating currency, and Poland that fell under technical
In the first six months, Taiwan was also negatively affected selling pressure from local pension funds, Malaysia was the
by trade and saw its equity market trade merely in line with only major Emerging Market to record a fall in 2019.
the rest of Asia but in the second half of the year, it turned Australia and New Zealand mixed in Asia Pacific
into Asia’s outperforming market as semiconductor prices
recovered and a new iPhone launch aided supply-chain stocks. Australia’s market joined other Developed Markets and
The former also supported Korea’s technology sector in the returned a healthy 23.1% for 2019. However quarter by
final few months however for the rest of the year, Korean quarter, the market was more volatile. The first quarter saw
equities underperformed as macro indicators pointed to a some weaker-than-expected macroeconomic data weigh on
weakening economy, damaged by the slowdown in China and stocks but they then bounced in the second three months
the US-Sino trade dispute, and, although December was good when the incumbent centre-right party surprisingly won the
for the country, it still underperformed for the year with a mere general election. That continued into the third-quarter when
13.1% gain. a shift to value saw its banking sector surge but this
promptly reversed in Q4 2019 after another banking
A second underperforming index was Hong Kong. In April 2019, scandal dragged on the same sector. New Zealand surprised
it was performing above the Asia-ex Japan index for the year investors with a very strong return of 38.8% after its central
to date but this slowly eroded as social unrest grew and began bank first turned dovish on interest rates, then cut them by
to affect tourism levels and property prices. Although it too 75bps in two moves.
recovered a little in December 2019, the MSCI Hong Kong index
returned just 10.3% for the year. India also underperformed as
the euphoria surrounding the country’s re-election of a market-
friendly government reversed as the macro-economic picture
deteriorated and the banking sector continued to struggle.
Fund Performance
Takafulink Dana Ekuiti Takafulink Dana Dinamik
As at 31 December 2019, the Fund’s Net Asset Value (NAV) As at 31 December 2019, the Fund’s NAV per unit increased
per unit increased by 4.57% to RM2.19776 as compared to by 6.76% to RM1.00386 as compared to RM0.94031 as at
RM2.10166 as at 31 December 2018. 31 December 2018.
Since inception (1 December 2006), the Fund registered a Since inception (8 January 2018), the Fund registered a positive
positive return of 119.78%. return of 0.39%.
Takafulink Dana Bon Takafulink Dana Aktif

As at 31 December 2019, the Fund’s NAV per unit increased As at 31 December 2019, the Fund’s NAV per unit increased
by 7.18% to RM1.71745 as compared to RM1.60245 as at by 16.49% to RM1.11821 as compared to RM0.95993 as at
31 December 2018. 31 December 2018.
Since inception (1 December 2006), the Fund registered a Since inception (30 October 2018), the Fund registered a
positive return of 71.75%. positive return of 11.82%.
Takafulink Dana Urus Takafulink Dana Ekuiti Global

As at 31 December 2019, the Fund’s NAV per unit increased As at 31 December 2019, the Fund’s NAV per unit increased
by 5.07% to RM2.09010 as compared to RM1.98925 as at by 6.75% to RM1.06745 as compared to RM1.0000 as at
31 December 2018. 8 July 2019 (inception date).
Since inception (1 December 2006), the Fund registered a
positive return of 109.01%.
Takafulink Dana Ekuiti Dinasti

As at 31 December 2019, the Fund’s NAV per unit increased
by 24.24% to RM2.19406 as compared to RM1.76594 as at
31 December 2018.
Since inception (5 April 2010), the Fund registered a positive
return of 119.41%.

Investment Outlook
Equity Market On equity impact from the change in government, we expect
short term market weakness and prefer to reduce local equity
The start of 2020 was marred with geo-political tensions. exposure and raise cash in the near term. Any intense foreign
However, the geo-political tensions have resulted in a spike in selling is likely to hit the large cap stocks while local investors
crude oil prices, and the ringgit strengthened. On the external may be selling mid-small cap stocks due to rising risk premium.
front, investors will be awaiting the next phase of trade deal The mid-small caps did very well last year, so some profit
and taking cues from the US Fed policy meeting on 29 Jan 2020 taking activities in this space is normal, especially given the
and Brexit day on 31 Jan 2020. We continue to expect volatility heightened market risk. Until the political scene is more stable,
for the Malaysian equity market driven not only by external any buying will be selective and gradual. Any market weakness
headwinds, but local politics continue to be distracting. Whilst is good opportunity to accumulate good fundamental stocks.
we maintain a relatively cautious outlook, we are hopeful that However, this will be done gradually and selectively as we
there could be some earnings recovery in 2020, given the dismal watch the evolving political scene.
and uninspiring growth seen for the last 3-4 years. Despite this
potential green-shoot, we are cognisant of the risks of our own Monetary Policy Committee (MPC) of BNM cut its OPR by
making, such as the increasing government interference in 25 basis points to 2.5%, the second consecutive cut for the
commercial negotiations causing disruptions, policy flip-flops year. The OPR is now at its lowest level since June 2010. The
or weak messaging resulting in confusion amongst the market MPC statement indicated BNM’s concerns over the heightened
players and distracting political infighting. Nevertheless, we downside risks to Malaysia’s growth outlook due to the
remain focused on accumulating fundamentally sound stocks COVID-19 outbreak, and the supply shocks in commodity-
on weakness. related sectors. BNM expects headline inflation to average
higher in 2020 but remain modest. The reduction in the OPR
With the heightened political risk and uncertainty around the is intended to provide a more accommodative monetary
government, we expect market sentiment to be poor in the environment to support the projected improvement in
short term. Reform agenda is clearly taking a backseat, and economic growth amid price stability – according to the MPC
growth may be impacted as investment decisions are held back statement released. The MPC statement was dovish, implying
due to rising policy uncertainties. We expect further foreign there is a potential for a further OPR cut should there be delays
selling as foreign investors are likely to reduce their positions in in the implementation of the COVID-19 stimulus, and if risk
the Malaysian market until overall situation is more stabilised. increases to global and domestic growth.
Unlike the Covid-19 risk which is seen as short term in nature,
political risk can drag the market further given the rising risk
premium. In the event of a change in government, the most
noticeable losers are companies seen to be linked to the current
government coalition. The beneficiaries are likely to be USD
earners and exporters which benefit from weaker Ringgit.

Investment Outlook
Equity Market (continued) loose in certain economies, which is positive for fixed income
securities. Against the backdrop of a still-fragile economic
For domestic equity outlook, the OPR cut was generally growth and subdued inflation globally, we see a higher hurdle
expected given the recent domestic political turmoil and the for central banks to increase interest rates.
spread of the COVID-19 outbreak. We expect the cut in the
OPR to be positive for those with debt based on variable Domestically, the government is forecasting 4.8% GDP growth
rates, such as mortgages, and enable households to benefit for 2020 where private consumption and investment continue
from an increase in disposable income. Short term negatives to be the key drivers of growth. Pro-growth fiscal measures
from this cut would be the banking sector. As the cut in OPR announced by the government in the Budget 2020 are
was expected by most banks, they have already adjusted their expected to reduce the pressure on monetary policy to push
time deposits to shorter tenures. Hence, the re-pricing can growth. BNM’s monetary policy direction for 2020 is broadly
take effect faster than last year and the impact to Net Interest expected to be data-dependent and event-driven given the
Margin (NIM) will not be as great. We expect the consumer uncertainties surrounding geopolitical developments and the
sector to benefit from expected household disposable income drag that they have on global growth. Consensus is calling for
increase. Property is supposed to benefit in theory, however, the another OPR cut in the year, however economists are still split
problem of supply of units remains an overhang on the sector. on the timing.
Malaysian REITs should benefit from this OPR cut as the yield
On the government fixed income security supply, we expect
spread should widen.
a slightly higher net supply of government debt with the
Government’s funding need for 2020 estimated at RM122.4bn.
Sukuk Considering the MGS & MGII maturities of RM70.7bn in 2020
and the potential issuance of another round of samurai bonds
The year 2019 was broadly coloured by concerns on slowing (RM5.0 – RM5.5bn), the net supply of government fixed
global growth amidst rising geopolitical tension which led to income securities in 2020 is circa RM46.5bn, higher than the
multiple GDP growth downgrades by IMF and World Bank. For RM44.7bn estimated net supply in 2019. This is however within
2020, we expect external environment to improve following market expectation and is yield-neutral as the domestic market
the conclusion of US-China phase 1 trade deal which brings is still flushed with liquidity.
hope that business confidence will be revived, recovering
investment spending and rejuvenating economic activities. In summary, stability in geopolitics is likely to improve global
Alongside the positive progress of the talk between the world’s economic activities and Malaysia is set to benefit as an open-
two largest economies, we have seen broadly improving global trade economy. However, we remain cautious on geopolitical
macroeconomic data, i.e. US economy continues to remain risks in 2020. Despite the signing of the partial trade deal
firm, backed by resilient private consumption, while leading between US and China, investors will continue to follow the
indicators in other parts of the world such as Europe and China talks closely as a complete resolution of trade war is still far in
have started to show signs of stabilisation. On the interest sight, given the deep differences in US and China’s demands.
rate outlook, global monetary policies are expected to remain

Investment Outlook
Sukuk (continued) Global and Asia
With the continuing talks on top of other events in the year Equites are starting 2020 in a very benign state with low
such as FTSE Russell index review and US presidential election, interest rates and low inflation persisting, and liquidity growth
uncertainties will likely resurface and weigh on global risk accelerating post central bank rate cuts or quantitative easing
sentiments again, adding volatilities to the market. programmes. Macro-economic conditions, which weighed
heavily on equity markets at times through 2019, also appear
Due to the uncertainty in local political environment, to be bottoming with some forward indicators beginning to
bond yields increased by up to 20 bps when the market show growth. Geopolitical risk is also easing with greater
opened. Bargain hunting by investors led to a partial recovery clarity on Brexit, and the US and China close to a trade deal.
of about 12bps in the morning session, albeit at low trade
volumes as most investors remained on the side-lines. We Asia equities are trading well below their long-term average
expect the market to be volatile until more clarity arises. If the valuations and are now very cheap compared to their own
political uncertainty is prolonged, this will weigh on investor history and those of Developed Markets. A headwind for Asia
sentiment and buying opportunity may emerge. With the has been the strength of the US dollar, which, if it reverses trend
current weak economy and a potential delay in the in 2020, could turn into a tailwind while a trade deal between
announcement of a fiscal stimulus, we cannot discount that the US and China could also relieve some negative pressure
BNM may cut rates further. on the region. We continue to see a backdrop of long-term
structural economic growth across Asia and a diverse corporate
For the OPR cut impact to fixed income, the timing and the sector which offers us many investment opportunities over
quantum of the OPR cut was not a surprise to the local bond the long-term.
market as the cut was fully priced in by mid-February 2020 as
COVID-19 outbreak impact on global economies is seen to
be deeper and longer than market previously thought. Yields
were immediately taken a few basis points lower post
announcement before profit-taking activities took over. We
do not discount another OPR cut in May 2020 as the Fed’s
emergency 50 bps rate cut on 3 March 2020 has provided
BNM with more room for further easing of monetary policy. We
expect the current low yield environment to be supported by
expectations of weaker economic growth, exacerbated by the
COVID-19 outbreak and domestic political uncertainty.

Investment Outlook
Global and Asia (continued) We understand the contagion and fatality ratios as mentioned
above are not as bad so far as those of SARS days. On top
The start of 2020 already marred with geo-political tensions,
of this, there is the positive reaction of the Chinese authorities
natural disasters, and a viral outbreak. Depending on how
in quickly isolating the city of Wuhan, then several other
long this COVID-19 outbreak continues, we would expect
Hubei cities, to stop the spread of the disease. Halting
global growth to be affected by the muted consumption and
transport was also a proactive and positive move that will
manufacturing activities, given the increased importance of
likely slowdown the spread of the virus, and with this in mind,
China’s economy to global growth. We takes a long-term view
we note the greater transparency of the China government
on our stock positions and view the current disruption in the
in communicating information. In turn, this leads to a more
stock market as short-term in nature. We continue to believe
knowledgeable populace who have self-reported symptoms
that the businesses we own are durable and will outperform
and taken steps to improve personal hygiene. That said, this is
over the cycle. We purchase each stock with a margin of safety
a serious outbreak of a serious virus, and we are thus watching
and are careful not to overpay. We use any short-term price
the situation very carefully.
dislocations as a buying opportunity and are mindful that good
companies could sell off as a result of what should be a one-off
event and not a structural change in the market. We have been
cautious towards the Consumer sectors in China on the back
of what we view as expensive valuations prior to the outbreak,
so we are watching valuations closely.

Financial Highlights
Comparative Performance Table
for financial year ended 31 December 2019
Takafulink Dana Ekuiti

Description 2019 2018 2017 2016 2015
Shariah-Compliant Equities
Automotive - 1.49 - 1.42 2.02
Banking & Finance - 3.34 3.97 4.26 3.81
Building Materials - - - 0.45 -
Conglomerates - 8.64 7.96 10.16 10.10
Construction 3.58 2.75 5.94 3.84 3.20
Consumer Products & Services 14.60 5.96 3.50 2.79 3.13
Energy 10.70 - - - -
Financial Services 4.84 - - - -
Health Care 8.25 7.47 5.80 9.34 10.19
Industrial Products & Services 9.34 - - - -
Manufacturing - 5.93 4.12 - -
Oil & Gas - 23.16 18.24 13.76 10.68
Plantation 9.76 10.28 11.34 8.84 5.49
Power - 10.15 9.79 11.00 10.77
Property 7.52 3.32 6.45 6.52 6.36
Services - 0.03 0.18 - -
Technology 3.11 2.47 6.56 1.50 2.16
Telecommunications 10.55 8.76 7.81 16.65 21.26
Transport / Logistic related 2.24 0.51 0.14 - -
Transportation - 1.80 4.84 4.90 5.50
Utilities 11.28 - - - -
95.77 96.06 96.64 95.43 94.67
Cash and Islamic Deposits 5.30 4.25 7.08 6.54 6.37
Other Assets 0.18 0.18 0.42 0.29 0.35
Total Liabilities (1.25) (0.49) (4.14) (2.26) (1.39)
Total 100.00 100.00 100.00 100.00 100.00

Takafulink Dana Ekuiti (continued)

Description 2019 2018 2017 2016 2015
Total Net Asset Value (RM) 1,510,139,215 1,148,034,583 1,060,260,359 782,472,204 676,457,441
Units in Circulation 687,127,368 546,250,520 456,982,084 373,553,331 310,420,558
NAV per Unit (RM) 2.19776 2.10166 2.32014 2.09467 2.17916
Highest NAV per unit (RM) 2.24605 2.41359 2.32030 2.17909 2.23588
Lowest NAV per unit (RM) 2.05949 2.04309 2.09296 2.05017 1.93892
Total Return (+)
- Capital Growth 4.57% (9.42%) 10.77% (3.88%) 5.11%
Average Annual Return – Fund (+)

Period
One year 4.57% (9.42%) 10.77% (3.88%) 5.11%
Three years 1.60% (1.20%) 3.82% 0.75% 6.99%
Five years 1.16% 0.52% 5.45% 6.54% 9.15%
Average Annual Return – Benchmark:
FTSE Bursa Malaysia EMAS
Shariah Index (FBMS)
Period
One year 3.85% (13.52%) 10.72% (6.14%) 2.35%
Three years (0.18%) (3.50%) 2.08% (2.72%) 3.57%
Five years (0.91%) (2.49%) 2.92% 3.13% 4.94%

Takafulink Dana Ekuiti Fund Performance

Takafulink Dana Ekuiti Vs. FTSE Bursa Malaysia EMAS Shariah Index (FBMS)
% %
140.00 140.00
120.00 120.00
100.00 100.00
80.00 80.00
SI % Change
60.00 60.00
40.00 40.00
20.00 20.00
0.00 0.00
(20.00) (20.00)
(40.00) (40.00)
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
Jun-19
Dec-19
Date
TDE FBMS
+ The Fund returns are calculated based on five decimal places.

The unit prices of the Funds may go down as well as up and the past performance figures shown are not indicative of future performance.

Takafulink Dana Bon

Description 2019 2018 2017 2016 2015
Sukuk
- Private 74.09 66.98 70.63 81.78 91.22
- Government - 0.86 1.05 1.50 1.72
- Quasi Government 21.06 27.08 19.13 15.42 4.14
Cash and Islamic Deposits 4.46 4.50 8.68 0.60 2.45
Other Assets 1.09 1.03 0.96 1.11 0.83
Total 100.00 100.00 100.00 100.00 100.00
Total Net Asset Value (RM) 141,964,826 118,333,778 97,055,675 68,157,730 59,926,292
NAV per Unit (RM) 1.71745 1.60245 1.53461 1.46903 1.40081
Total Return (+)
- Capital Growth 7.18% 4.42% 4.46% 4.87% 3.53%

Period
One year 7.18% 4.42% 4.46% 4.87% 3.53%
Three years 5.35% 4.58% 4.28% 4.03% 2.76%
Five years 4.88% 4.19% 3.51% 3.59% 3.59%
MBB 12 months Islamic Fixed Deposit-i rate
Period
One year 3.18% 3.34% 3.12% 3.30% 3.09%
Three years 3.21% 3.25% 3.17% 3.09% 2.91%
Five years 3.21% 3.15% 3.03% 2.97% 2.90%

Takafulink Dana Bon Fund Performance

Takafulink Dana Bon Vs. MBB 12 months Islamic Fixed Deposit-i Rate
% %
80.00 80.00
75.00 75.00
70.00 70.00
65.00 65.00
60.00 60.00
55.00 55.00
50.00 50.00
45.00 45.00
SI % Change
40.00 40.00
35.00 35.00
30.00 30.00
25.00 25.00
20.00 20.00
15.00 15.00
10.00 10.00
5.00 5.00
0.00 0.00
(5.00) (5.00)
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
Jun-19
Dec-19
Date
TDB MBB 12 months Islamic Fixed Deposit-i Rate


Takafulink Dana Urus

Description 2019 2018 2017 2016 2015
Investment in -
Takafulink Dana Ekuiti 84.30 82.00 84.58 80.05 79.11
Takafulink Dana Bon 15.70 18.00 15.42 19.95 20.89
Total 100.00 100.00 100.00 100.00 100.00
NAV per Unit (RM) 2.09010 1.98925 2.14088 1.95231 1.99378
Total Return (+)
- Capital Growth 5.07% (7.08%) 9.66% (2.08%) 4.78%

Period
One year 5.07% (7.08%) 9.66% (2.08%) 4.78%
Three years 2.30% (0.08%) 4.01% 1.47% 6.07%
Five years 1.89% 1.26% 5.08% 5.88% 7.88%
80% FBMS + 20% MBB 12 months
Islamic Fixed Deposit-i rate
Period
One year 3.78% (10.26%) 9.19% (4.28%) 2.61%
Three years 0.57% (2.11%) 2.36% (1.52%) 3.52%
Five years (0.02%) (1.32%) 3.00% 3.16% 4.54%

Takafulink Dana Urus Fund Performance

Takafulink Dana Urus Vs. 80% FBMS + 20% MBB 12 months Islamic Fixed Deposit-i Rate
% %
140.00 140.00
120.00 120.00
100.00 100.00
80.00 80.00
SI % Change
60.00 60.00
40.00 40.00
20.00 20.00
0.00 0.00
(20.00) (20.00)
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
Jun-19
Dec-19
Date
TDU 80% FBMS & 20% MBB 12 months Islamic Fixed Deposit-i Rate



Description 2019 2018 2017 2016 2015
Investment in -
Eastspring Investments Dinasti Equity Fund 99.83 99.83 101.68 100.91 100.76
Cash at Bank 1.08 1.98 0.14 0.20 0.31
Other Assets 1.12 0.08 0.27 0.37 0.24
Total 100.00 100.00 100.00 100.00 100.00
NAV per Unit (RM) 2.19406 1.76594 2.12341 1.58865 1.45091
Total Return (+)
- Capital Growth 24.24% (16.83%) 33.66% 9.49% 18.53%

Period
One year 24.24% (16.83%) 33.66% 9.49% 18.53%
Three years 11.36% 6.77% 20.15% 10.42% 10.60%
Five years 12.37% 8.40% 14.64% 10.37% 5.81%
Dow Jones Islamic
Market Greater China Index
Period
One year 23.09% (16.12%) 30.21% 8.51% 16.97%
Three years 10.37% 5.82% 18.23% 11.74% 14.92%
Five years 11.28% 8.80% 16.48% 12.76% 7.01%

Takafulink Dana Ekuiti Dinasti Fund Performance

Takafulink Dana Ekuiti Dinasti Vs. Dow Jones Islamic Market Greater China Index
% %
140.00 140.00
120.00 120.00
100.00 100.00
80.00 80.00
SI % Change
60.00 60.00
40.00 40.00
20.00 20.00
0.00 0.00
(20.00) (20.00)
Apr-10
Nov-10
May-11
Nov-11
May-12
Nov-12
May-13
Nov-13
May-14
Nov-14
May-15
Nov-15
May-16
Nov-16
Jun-17
Dec-17
Jun-18
Dec-18
Jun-19
Dec-19
Date
TDED Dow Jones Islamic Market Greater China Index


Takafulink Dana Dinamik

Description 2019 2018
Investment in -
Eastspring Investments Dinamik Fund 96.53 98.79
Cash at Bank 1.56 3.26
Provision for Deferred Tax 0.23 0.71
Other Assets 3.27 -
Total Liabilities (1.59) (2.76)
Total 100.00 100.00
Total Net Asset Value (RM) 3,175,348 1,094,671

Units in Circulation 3,163,129 1,164,154
NAV per Unit (RM) 1.00386 0.94031
Highest NAV per unit (RM) 1.02776 1.01374
Lowest NAV per unit (RM) 0.92840 0.92225
Total Return (+)
- Capital Growth 6.76% (5.97%)

Period
One year 6.76% (6.23%)
Three years N/A N/A
Five years N/A N/A
50% FBMS + 50% MBB 12 months Islamic Fixed Deposit-i rate
Period
One year 3.62% (6.80%)
Three years N/A N/A
Five years N/A N/A

Takafulink Dana Dinamik Fund Performance

Takafulink Dana Dinamik Vs. 50% FBMS + 50% MBB 12 months Islamic Fixed Deposit-i rate
% %
2.00 2.00
1.00 1.00
0.00 0.00
(1.00) (1.00)
SI % Change
(2.00) (2.00)
(3.00) (3.00)
(4.00) (4.00)
(5.00) (5.00)
(6.00) (6.00)
(7.00) (7.00)
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
July-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
July-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Date
TDDK 50% FBMS & 50% MBB 12 months Islamic Fixed Deposit-i rate


Takafulink Dana Aktif

Description 2019 2018
Investment in -
Eastspring Investments Islamic Small-Cap Fund 96.54 83.69
Cash at Bank 3.38 16.24
Other Assets 3.19 0.12
Total Liabilities (3.11) (0.05)
Total 100.00 100.00
Total Net Asset Value (RM) 477,363 4,575

Units in Circulation 426,901 4,767
NAV per Unit (RM) 1.11821 0.95993
Highest NAV per unit (RM) 1.12272 0.99995
Lowest NAV per unit (RM) 0.94996 0.94886
Total Return (+)
- Capital Growth 16.49% (4.01%)

Period
One year 16.49% (21.09%)
Three years N/A N/A
Five years N/A N/A
80% FTSE Bursa Malaysia Small-cap Shariah Index + 20% FBMS
Period
One year 21.56% (47.00%)
Three years N/A N/A
Five years N/A N/A

Takafulink Dana Aktif Fund Performance

Takafulink Dana Aktif Vs. 80% FTSE Bursa Malaysia Small-cap Shariah Index
+ 20% FBMS
% %
15.00 15.00
14.00 14.00
13.00
13.00 12.00
12.00 11.00
11.00 10.00
9.00
10.00 8.00
9.00 7.00
6.00
8.00 5.00
7.00 4.00
6.00 3.00
SI % Change
2.00
5.00 1.00
4.00 0.00
3.00 (1.00)
(2.00)
2.00 (3.00)
1.00 (4.00)
0.00 (5.00)
(6.00)
(1.00) (7.00)
(2.00) (8.00)
(9.00)
(3.00) (10.00)
(4.00) (11.00)
(5.00) (12.00)
(13.00)
(6.00) (14.00)
(7.00) (15.00)
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Date
TDA 80% FTSE Bursa Malaysia Small-cap Shariah Index + 20% FBMS


Takafulink Dana Ekuiti Global

Description 2019
Investment in -
Aberdeen Standard Islamic World Equity Fund 97.96
Cash at Bank 0.33
Other Assets 2.46
Total Liabilities (0.75)
Total
100.00
Total Net Asset Value (RM) 604,260

Units in Circulation 566,079
NAV per Unit (RM) 1.06745
Highest NAV per unit (RM) 1.08084
Lowest NAV per unit (RM) 0.97373
Total Return (+)
- Capital Growth 6.75%

Period
One year 14.50%
Three years N/A
Five years N/A
MSCI ACWI Islamic (Shariah) Index
One year 13.59%
Three years N/A
Five years N/A

Takafulink Dana Ekuiti Global Fund Performance (Since Inception)

Takafulink Dana Ekuiti Global Vs. MSCI ACWI Islamic (Shariah) Index
% %
10.00 10.00
9.00 9.00
8.00 8.00
7.00
7.00
6.00
6.00 5.00
5.00 4.00
SI % Change
4.00 3.00
3.00 2.00
2.00 1.00
1.00 0.00
0.00 (1.00)
(1.00) (2.00)
(3.00)
(2.00)
(4.00)
(3.00) (5.00)
(4.00) (6.00)
(5.00) (7.00)
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Date
TDEG MSCI ACWI Islamic (Shariah) Index


Details of Investments
as at 31 December 2019

Cost Market Value % of
Quantity (RM) (RM) Fund
Construction
Econpile Holdings Berhad 8,645,050 8,446,451 6,542,678 0.43%
Gamuda Berhad 2,046,500 8,598,226 8,000,505 0.53%
IJM Corp Berhad 10,235,288 31,676,270 22,263,880 1.47%
Kerjaya Prospek Group Berhad 926,540 1,624,727 1,216,680 0.08%
Muhibbah Engineering (M) Berhad 3,547,800 10,164,164 8,748,534 0.58%
WCT Holdings Berhad 8,524,195 15,046,985 7,433,848 0.49%
Construction Total 33,925,373 75,556,823 54,206,125 3.58%
Consumer Products & Services

Bermaz Auto Berhad 4,958,500 10,946,500 10,437,841 0.69%
DRB-HICOM Berhad 12,774,200 27,701,634 30,475,563 2.02%
Nestle (Malaysia) Berhad 216,500 23,898,573 31,901,882 2.11%
Padini Holdings Berhad 3,452,600 14,594,504 11,213,271 0.74%
Petronas Dagangan Berhad 602,600 15,356,164 13,953,468 0.92%
PPB Group Berhad 1,048,500 18,443,123 19,801,149 1.31%
QL Resources Berhad 6,950,637 26,352,563 56,644,301 3.75%
Sime Darby Berhad 12,063,988 27,955,727 26,846,330 1.78%
UMW Holdings Berhad 4,293,900 23,762,208 19,325,882 1.28%
Consumer Products & Services Total 46,361,425 189,010,996 220,599,687 14.60%
Energy
Dialog Group Berhad 29,183,518 66,641,253 100,924,778 6.68%
Sapura Energy Berhad 25,000,000 15,860,611 6,766,200 0.45%
Serba Dinamik Holdings Berhad 16,815,320 26,921,292 37,082,490 2.46%
Serba Dinamik Holdings Berhad - Warrants 4,625,520 - 2,040,113 0.14%
Velesto Energy Berhad 38,593,500 15,018,488 14,700,727 0.97%
Energy Total 114,217,858 124,441,644 161,514,308 10.70%


Financial Services
BIMB Holdings Berhad 6,613,330 27,106,619 29,168,489 1.93%
Bursa Malaysia Berhad 2,216,200 14,462,836 13,529,050 0.90%
Syarikat Takaful Malaysia Keluarga Berhad 5,308,100 14,263,748 30,328,785 2.01%
Financial Services Total 14,137,630 55,833,203 73,026,324 4.84%
Health Care
Hartalega Holdings Berhad 5,683,200 25,310,205 31,218,681 2.07%
IHH Healthcare Berhad 8,224,500 45,791,452 45,095,986 2.99%
Kossan Rubber Industries Berhad 3,172,500 10,069,077 13,229,274 0.88%
KPJ Healthcare Berhad 13,627,500 13,051,481 12,908,895 0.85%
Top Glove Corporation Berhad 4,690,000 15,875,406 22,095,903 1.46%
Health Care Total 35,397,700 110,097,621 124,548,739 8.25%
Industrial Products & Services

ATA IMS Berhad 3,612,100 6,010,341 6,300,138 0.42%
Cahya Mata Sarawak Berhad 4,815,200 15,631,402 10,956,737 0.73%
Cypark Resources Berhad 5,073,050 7,869,720 7,271,872 0.48%
HSS Engineers Berhad 4,151,600 4,265,954 3,516,521 0.23%
PESTECH International Berhad 7,168,400 11,972,244 9,413,141 0.62%
Petronas Chemicals Group Berhad 8,253,700 62,703,944 60,810,290 4.03%
Press Metal Aluminium Holdings Berhad 2,785,200 11,904,793 12,982,263 0.86%
SKP Resources Berhad 15,139,500 25,824,879 20,639,135 1.37%
UCHI Technologies Berhad 708,500 1,816,139 1,974,357 0.13%
V.S. Industry Berhad 5,246,400 4,567,962 7,047,048 0.47%
Industrial Products & Services Total 56,953,650 152,567,378 140,911,502 9.34%


Plantation
Genting Plantations Berhad 1,920,000 19,687,696 20,362,353 1.35%
IOI Corporation Berhad 9,385,400 41,611,225 43,370,534 2.87%
Kuala Lumpur Kepong Berhad 1,838,900 41,201,716 45,714,171 3.03%
Sime Darby Plantation Berhad 6,951,088 36,859,828 37,974,350 2.51%
Plantation Total 20,095,388 139,360,465 147,421,408 9.76%
Property
Axis Real Estate Investment Trust 12,317,100 22,377,486 21,853,590 1.44%
IOI Properties Group Berhad 12,639,338 17,191,729 15,710,394 1.04%
KLCC Property Holdings Berhad 2,383,400 18,647,221 18,874,049 1.25%
Malaysian Resources Corporation Berhad 13,472,900 10,481,151 9,858,822 0.65%
Matrix Concept Holdings Berhad 8,653,450 17,029,951 16,567,757 1.10%
Sime Darby Property Berhad 16,898,888 16,587,971 15,499,592 1.03%
S P Setia Berhad 9,468,580 19,636,045 15,186,087 1.01%
Property Total 75,833,656 121,951,554 113,550,291 7.52%
Technology
Frontken Corporation Berhad 2,306,400 3,156,758 5,294,332 0.35%
INARI Amertron Berhad 19,482,650 32,352,963 33,199,994 2.20%
Pentamaster Corporation Berhad* 363,300 1,711,642 1,653,341 0.11%
ViTrox Corporation Berhad 864,200 5,879,153 6,860,891 0.45%
Technology Total 23,016,550 43,100,516 47,008,558 3.11%
* Pentamaster Corporation Berhad has been reclassified as Shariah non-compliant by the Shariah Advisory Council of the Securities Commission on
29 November 2019. The Fund Manager has completely disposed of Pentamaster Corporation Berhad on 17 January 2020 at an excess capital gain
amounting to RM9,258.12 which to be channelled to baitulmal or approved charitable bodies.


Telecommunications & Media
Axiata Group Berhad 11,457,847 57,427,907 47,549,332 3.15%
Digi.Com Berhad 8,899,200 42,382,371 39,785,689 2.63%
Maxis Berhad 2,601,200 16,240,438 13,871,596 0.92%
Telekom Malaysia Berhad 6,450,200 21,432,498 24,698,899 1.64%
TIME dotCom Berhad 3,614,200 29,879,183 33,402,899 2.21%
Telecommunications & Media Total 33,022,647 167,362,397 159,308,415 10.55%
Transportation & Logistics

Lingkaran Trans Kota Holdings Berhad 469,400 1,277,534 2,159,717 0.14%
MISC Berhad 2,597,100 19,809,409 21,737,831 1.44%
Westports Holdings Berhad 2,350,400 9,468,482 9,918,932 0.66%
Transportation & Logistics Total 5,416,900 30,555,425 33,816,480 2.24%
Utilities
Petronas Gas Berhad 2,139,400 41,986,909 35,642,164 2.36%
Tenaga Nasional Berhad 10,132,950 128,906,677 134,685,388 8.92%
Utilities Total 12,272,350 170,893,586 170,327,552 11.28%
Grand Total 470,651,127 1,380,731,608 1,446,239,389 95.77%

Takafulink Dana Bon

Private Sukuk
AmIslamic Bank Bhd 4.88% 18/10/2028 1,000,000 1,000,000 1,038,250 0.73%
Benih Restu Bhd 4.62% 05/06/2025 1,500,000 1,500,000 1,555,860 1.10%
BGSM Management Sdn Bhd 4.92% 29/08/2025 1,000,000 1,001,300 1,049,040 0.74%
Bumitama Agri Ltd 4.2% 22/07/2026 1,000,000 1,000,000 1,014,980 0.71%
Danga Capital Bhd 4.94% 26/01/2033 5,000,000 5,493,000 5,497,950 3.87%
Danum Capital Bhd 4.68% 14/02/2034 7,000,000 7,384,500 7,477,260 5.26%
East Klang Valley Expre 5.25% 29/01/2026 1,000,000 1,011,600 1,075,670 0.76%
First Resources Ltd 4.85% 27/10/2021 500,000 501,470 510,340 0.36%
GULF Investment Corp 5.1% 16/03/2021 1,500,000 1,506,570 1,518,150 1.07%
Imtiaz Sukuk II Bhd 4.65% 24/11/2021 1,000,000 1,007,300 1,020,560 0.72%
Jimah East Power Sdn Bhd 5.27% 04/12/2023 2,000,000 2,000,000 2,100,520 1.48%
Jimah Energy Ventures 9.35% 12/05/2021 1,000,000 1,232,700 1,077,160 0.76%
Kimanis Power Sdn Bhd 4.95% 08/08/2022 1,750,000 1,817,550 1,805,003 1.27%
Kimanis Power Sdn Bhd 5.1% 08/08/2024 750,000 758,055 788,580 0.56%
Konsortium Lebuh Utara 4.25% 02/12/2022 1,000,000 974,000 1,011,150 0.71%
Konsortium Lebuh Utara 4.75% 02/12/2024 2,000,000 1,924,600 2,066,180 1.46%
Konsortium Lebuh Utara 4.75% 02/12/2025 1,000,000 974,200 1,035,500 0.73%
Lebuhraya Duke Fasa 3 S 5.34% 23/08/2028 1,000,000 1,055,300 1,068,080 0.75%
Lebuhraya Duke Fasa 3 S 5.77% 23/08/2032 2,500,000 2,552,500 2,776,300 1.96%
Malakoff Power Bhd 5.25% 17/12/2021 1,000,000 1,000,000 1,032,050 0.73%
Malayan Banking Bhd 4.63% 31/01/2029 2,000,000 2,000,000 2,071,020 1.46%
Malaysia Airports Capit 4.55% 28/08/2020 1,000,000 1,000,000 1,007,750 0.71%
Manjung Island Energy Bhd 4.9% 25/11/2031 4,000,000 4,013,600 4,380,080 3.09%
MEX II Sdn Bhd 5.7% 29/04/2027 4,000,000 4,055,200 3,872,600 2.73%

Takafulink Dana Bon (continued)

Private Sukuk
Pengurusan Air SPV Bhd 4.15% 04/06/2029 2,000,000 2,000,000 2,056,540 1.45%
Pengurusan Air SPV Bhd 4.54% 23/02/2029 2,000,000 2,000,000 2,116,280 1.49%
Perbadanan Kemajuan Selangor 4.5% 31/05/2022 5,000,000 5,007,000 5,086,850 3.58%
Projek Lebuhraya Usahasama Bhd 4.72% 12/01/2026 1,250,000 1,262,750 1,323,175 0.93%
Quantum Solar Park Semenanjung 5.2% 06/04/2023 3,000,000 3,022,800 3,063,060 2.16%
Rantau Abang Capital 5.05% 12/05/2031 5,000,000 5,622,000 5,535,050 3.90%
RHB Islamic Bank Bhd 4.32% 21/05/2029 5,000,000 5,000,000 5,093,600 3.59%
Sarawak Energy Bhd 4.5% 19/01/2022 500,000 500,000 510,620 0.36%
Sarawak Energy Bhd 4.95% 25/11/2033 4,000,000 4,000,000 4,425,360 3.12%
Sarawak Energy Bhd 5% 04/07/2024 2,000,000 2,047,400 2,119,840 1.49%
Sarawak Energy Bhd 5.65% 23/06/2026 1,000,000 1,065,650 1,115,030 0.79%
Suria KLCC Sdn Bhd 4.73% 31/12/2024 500,000 500,000 527,000 0.37%
Tanjung Bin Energy Issue 5.5% 15/09/2025 1,300,000 1,321,008 1,414,374 1.00%
Teknologi Tenaga Perlis 4.67% 31/01/2022 500,000 507,350 511,360 0.36%
Telekom Malaysia Berhad 4.2% 13/09/2021 1,000,000 1,012,230 1,013,640 0.71%
Telekom Malaysia Berhad 4.5% 25/06/2021 1,000,000 1,008,000 1,016,660 0.72%
Tenaga Nasional Berhad 4.78% 29/08/2033 5,000,000 5,000,000 5,448,850 3.84%
YTL Power International 5.05% 03/05/2027 10,000,000 10,296,500 10,597,400 7.45%
Total 99,550,000 102,333,433 105,176,212 74.09%

Takafulink Dana Bon (continued)

Quasi Government Sukuk
Danainfra Nasional 3.92% 20/10/2023 1,000,000 1,000,000 1,022,530 0.72%
Danainfra Nasional 4.53% 01/04/2037 2,000,000 2,000,000 2,147,080 1.51%
Perbadanan Tabung Pendidikan 4.8% 01/03/2039 5,000,000 5,000,000 5,540,800 3.90%
Perbadanan Tabung Pendidikan 4.9% 21/01/2033 5,000,000 5,010,500 5,561,050 3.92%
Prasarana Malaysia Bhd 4.09% 05/08/2039 1,000,000 1,000,000 1,014,840 0.71%
Projek Lebuhraya Usahas 4.86% 12/01/2038 2,500,000 2,574,750 2,783,450 1.96%
Total 27,500,000 27,640,650 29,909,600 21.06%
Grand Total 127,050,000 129,974,083 135,085,812 95.15%

Investments
Takafulink Dana Ekuiti 134,794,026 291,569,097 296,244,918 84.30%
Takafulink Dana Bon 32,120,183 44,317,145 55,164,809 15.70%
Total 166,914,209 335,886,242 351,409,727 100.00%


Investments
Eastspring Investments Dinasti Equity Fund 124,995,329 62,042,898 75,222,189 99.83%
Totals 124,995,329 62,042,898 75,222,189 99.83%

Investments
Eastspring Investments Dana Dinamik 3,270,633 3,156,096 3,065,237 96.53%
Total 3,270,633 3,156,096 3,065,237 96.53%

Investments
Eastspring Investments Islamic Small-cap Fund 882,673 450,733 460,844 96.54%
Total 882,673 450,733 460,844 96.54%

Investments
Aberdeen Standard Islamic World Equity Fund 337,750 559,645 591,941 97.96%
Total 337,750 559,645 591,941 97.96%

Statement of Assets and Liabilities

2019 2018
(RM) % (RM) %
Investments
Shariah-Compliant Securities 1,446,239,389 95.77 1,102,762,916 96.06
Cash and Deposits 80,122,533 5.30 48,844,342 4.25
Cash at bank 42,533 0.00 44,342 0.00
Islamic Deposits 80,080,000 5.30 48,800,000 4.25
Tax Assets - - 1,178 0.00
Other Assets 2,689,373 0.18 2,058,636 0.18
Total Assets 1,529,051,295 101.25 1,153,667,072 100.49
Provision for Deferred Tax (4,963,609) (0.33) (319,782) (0.03)
Provision for Taxation - - - -
Other Liabilities (13,948,471) (0.92) (5,312,707) (0.46)
Total Liabilities (18,912,080) (1.25) (5,632,489) (0.49)
Net Asset Value of the Fund 1,510,139,215 100.00 1,148,034,583 100.00
Participants Fund
Capital 1,323,339,449 87.63 1,019,403,638 88.80
Generated Income Carried Forward 186,799,766 12.37 128,630,955 11.20
Total Participants Fund 1,510,139,215 100.00 1,148,034,583 100.00
Net Asset Value Per Unit (RM) 2.19776 2.10166
NUMBER OF UNITS 687,127,368 546,250,520

Takafulink Dana Bon

2019 2018
(RM) % (RM) %
Investments
Sukuk 135,085,812 95.15 112,318,723 94.92
Cash and Deposits 6,322,245 4.46 5,332,824 4.50
Cash at bank 22,245 0.02 62,824 0.05
Islamic Deposits 6,300,000 4.44 5,270,000 4.45
Other Assets 1,545,609 1.09 1,220,762 1.03
Total Assets 142,953,666 100.70 118,872,309 100.45
Provision for Taxation (494,018) (0.35) (406,889) (0.34)
Provision for Deferred Tax (408,938) (0.29) (79,676) (0.07)
Other Liabilities (85,884) (0.06) (51,966) (0.04)
Total Liabilities (988,840) (0.70) (538,531) (0.45)
Net Asset Value of the Fund 141,964,826 100.00 118,333,778 100.00
Participants Fund
Capital 111,821,827 78.77 97,132,788 82.08
Total Participants Fund 141,964,826 100.00 118,333,778 100.00
NUMBER OF UNITS 82,660,436 73,845,501


2019 2018
(RM) % (RM) %
Investments
Takafulink Dana Ekuiti 296,244,918 84.30 234,403,103 82.00
Takafulink Dana Bon 55,164,809 15.70 51,470,988 18.00
Other Assets 540,960 0.15 4,299 0.00
Total Assets 351,950,687 100.15 285,878,390 100.00
Other Liabilities (529,073) (0.15) - -
Total Liabilities (529,073) (0.15) - -
Participants Fund
Capital 294,791,773 83.89 244,692,211 85.59
NUMBER OF UNITS 168,136,542 143,711,670


2019 2018
(RM) % (RM) %
Investments
Eastspring Investments Dinasti Equity Fund 75,222,189 99.83 48,248,369 99.83
Cash at Bank 813,018 1.08 958,318 1.98
Other Assets 843,910 1.12 40,660 0.08
Total Assets 76,879,117 102.03 49,247,347 101.89
Provision for Taxation (148,117) (0.19) (114,256) (0.24)
Provision for Deferred Tax (527,172) (0.70) (168,082) (0.35)
Total Liabilities (1,531,467) (2.03) (912,306) (1.89)
Participants Fund
Capital 51,833,252 68.79 37,759,208 78.12
NUMBER OF UNITS 34,341,592 27,370,668


2019 2018
(RM) % (RM) %
Investments
Eastspring Investments Dana Dinamik 3,065,237 96.53 1,081,460 98.79
Cash at Bank 49,345 1.56 35,676 3.26
Provision for Deferred Tax 7,269 0.23 7,745 0.71
Other Assets 103,990 3.27 - -
Total Assets 3,225,841 101.59 1,124,881 102.76
Total Liabilities (50,493) (1.59) (30,210) (2.76)
Participants Fund
Capital 3,121,937 98.32 1,142,056 104.33
Generated Income/(Loss) Carried Forward 53,411 1.68 (47,385) (4.33)
NUMBER OF UNITS 3,163,129 1,164,154


2019 2018
(RM) % (RM) %
Investments
Eastspring Investments Islamic Small-cap Fund 460,844 96.54 3,829 83.69
Cash at Bank 16,160 3.38 743 16.24
Provision for Deferred Tax - - 6 0.12
Other Assets 15,215 3.19 - -
Total Assets 492,219 103.11 4,578 100.05
Provision for Deferred Tax (809) (0.17) - -
Other Liabilities (14,047) (2.94) (2) (0.05)
Total Liabilities (14,856) (3.11) (2) (0.05)
Net Asset Value of the Fund 477,363 100.00 4,576 100.00
Participants Fund
Capital 468,147 98.07 4,644 101.49
Generated Income/(Loss) Carried Forward 9,216 1.93 (68) (1.49)
Total Participants Fund 477,363 100.00 4,576 100.00
NUMBER OF UNITS 426,901 4,767


2019
(RM) %
Investments
Aberdeen Standard Islamic World Equity Fund 591,941 97.96
Cash at Bank 1,995 0.33
Other Assets 14,895 2.46
Total Assets 608,831 100.75
Provision for Taxation (31) (0.00)
Provision for Deferred Tax (2,584) (0.43)
Other Liabilities (1,956) (0.32)
Total Liabilities (4,571) (0.75)
Net Asset Value of the Fund 604,260 100.00
Participants Fund
Capital 574,043 95.00
Generated Income Carried Forward 30,217 5.00
Total Participants Fund 604,260 100.00
Net Asset Value Per Unit (RM) 1.06745
NUMBER OF UNITS 566,079

Statement of Changes in Net Asset Value
for the financial year ended 31 December 2019

2019 2018
(RM) (RM)
Net Asset Value at Beginning of Year 1,148,034,583 1,060,260,359
Amounts Received from Units Created 983,793,659 923,850,938
Amounts Paid for Units Cancelled (679,857,848) (725,861,517)
Net Income/(Outgo) 58,168,821 (110,215,197)
Value of Fund at End of Year 1,510,139,215 1,148,034,583
Takafulink Dana Bon

2019 2018
(RM) (RM)
Net Asset Value at Beginning of Year 118,333,778 97,055,675
Amounts paid for Units Cancelled (15,438,563) (26,144,700)
Net Income 8,942,009 4,627,943
Value of Fund at End of Year 141,964,826 118,333,778

2019 2018
(RM) (RM)
Net Income/(Outgo) 15,443,662 (20,638,903)


2019 2018
(RM) (RM)
Net Income/(Outgo) 12,938,565 (9,080,797)

2019 2018
(RM) (RM)
Net Asset Value at Beginning of Year 1,094,671 -
Amounts Paid for Units Cancelled (360,324) (502,267)
Net Income/(Outgo) 100,796 (47,385)


2019 2018
(RM) (RM)
Net Asset Value at Beginning of Year 4,576 -
Amounts Received from Units Created 471,054 6,120
Amounts Paid for Units Cancelled (7,551) (1,476)
Net Income/(Outgo) 9,284 (68)
Value of Fund at End of Year 477,363 4,576

2019
(RM)
Net Asset Value at Beginning of Year -
Amounts Received from Units Created 590,893
Amounts Paid for Units Cancelled (16,850)
Net Income 30,217
Value of Fund at End of Year 604,260

Statement of Income and Expenditure

2019 2018
(RM) (RM)
Net Shariah-Compliant Investment Income 34,073,138 31,031,145
Profit Income 2,238,601 2,555,399
Dividend Income 31,834,537 28,475,746
Profits on Disposal - 43,412,312
Unrealised Capital Gain 61,180,028 -
Provision for Taxation 379,174 9,961,081
Total Income 95,632,340 84,404,538
Investment Management Fees (19,662,474) (16,645,190)
Loss on Disposal (13,173,467) (52,890,743)
Unrealised Capital Loss - (125,039,312)
Provision for Deferred Tax (4,563,695) -
Other Outgo (63,883) (44,490)
Total Outgo (37,463,519) (194,619,735)
Net Income/(Outgo) 58,168,821 (110,215,197)
Generated Income Brought Forward 128,630,945 238,846,142

Generated Income Carried Forward 186,799,766 128,630,945

Takafulink Dana Bon

2019 2018
(RM) (RM)
Unrealised Capital Gain 4,115,773 454,968
Total Income 10,290,994 5,542,627
Investment Management Fees (657,907) (529,812)
Loss on Redemption - (3,775)
Provision for Deferred Tax (329,083) -
Provision for Taxation (356,491) (376,537)
Other Outgo (5,504) (4,560)
Total Outgo (1,348,985) (914,684)
Excess of Income over Outgo 8,942,009 4,627,943



2019 2018
(RM) (RM)
Profits on Disposal - 4,966,992
Total Income 20,087,457 8,692,561
Investment Management Fees (4,105,350) (3,644,268)
Loss on Disposal (538,445) (200,113)
Total Outgo (4,643,795) (29,331,464)
Net Income/(Outgo) 15,443,662 (20,638,903)



2019 2018
(RM) (RM)
Income Distribution 2,325,254 2,109,075
Others 1,071,294 911,814
Profit on Disposal 1,851,464 1,428,195
Provision for Taxation - 536,038
Other Income 74,798 85,541
Total Income 14,300,072 5,070,663
Provision for Taxation (112,248) -
Provision for Deferred Tax (359,090) -
Other Outgo (31) -
Total Outgo (1,361,507) (14,151,460)
Net Income/(Outgo) 12,938,565 (9,080,797)



2019 2018
(RM) (RM)
Net Shariah-Compliant Investment Income 123,699 51,304
Income Distribution 100,018 44,491
Others 23,681 6,813
Unrealised Capital Gain 5,960 -
Provision for Taxation - 7,746
Total Income 129,659 59,050
Loss on Disposal (2,136) (2,682)
Provision for Taxation (2,295) -
Provision for Deferred Tax (477) -
Unrealised Capital Loss - (96,819)
Other Outgo (11) (14)
Total Outgo (28,863) (106,435)
Net Income/(Outgo) 100,796 (47,385)
Generated Loss Brought Forward (47,385) -

Generated Income/(Loss) Carried Forward 53,411 (47,385)


2019 2018
(RM) (RM)
Net Shariah-Compliant Investment Income 1,641 3
Unrealised Capital Gain 10,181 -
Provision for Taxation - 6
Total Income 11,822 9
Investment Management Fees (1,698) (5)
Unrealised Capital Loss - (72)
Provision for Deferred Taxation (814) -
Other Outgo (26) -
Total Outgo (2,538) (77)
Net Income/(Outgo) 9,284 (68)
Generated Loss Brought Forward (68) -

Generated Income/(Loss) Carried Forward 9,216 (68)

for 6 months period ended 31 December 2019

2019
(RM)
Other Income 2,146
Unrealised Capital Gain 32,296
Profit on Disposal 393
Total Income 34,835
Investment Management Fees (1,879)
Provision for Taxation (31)
Provision for Deferred Taxation (2,584)
Other Outgo (124)
Total Outgo (4,618)
Net Income 30,217
Generated Income Carried Forward 30,217

Notes to the Accounts
1. Summary of Significant Accounting b. Investments
Policies Quoted investments are valued at the mid market
a. Basis of Accounting prices at the end of the financial year. Unquoted
sukuk are valued at the prevailing prices quoted by a
The financial statements have been prepared in valuation agency.
accordance with the policy document on Investment-
Linked Business (BNM/RH/PD 029-36) issued by Net unrealised gains or losses in value of investments
Bank Negara Malaysia and the requirements of the are credited or charged to the capital account.
certificate document, modified by the following: c. Dividend Income
(i) for the purpose of unit pricing, investments at Dividend income is recognised when the right to
market value are adjusted to include future cost of receive payment is established.
acquisitions. This is to ensure equitable unit pricing
for incoming, outgoing and remaining unit-holders; d. Profit Income
(ii) for the purpose of unit pricing, provision for Profit income is recognised on an accrual basis.
deferred tax is recognised on taxable and e. Gains/Losses on Disposal of Investments
deductible temporary differences using an
actuarially calculated rate of 4% for Takafulink Gains or losses arising from the disposal on investment
Dana Ekuiti Dinasti and 8% for the remaining are credited or charged to the capital account.
funds. The Board of Directors are of the opinion
that since these temporary differences will only f. Investment Management Fees
be realised in the future, the lower tax rate of 4% Investment management fees are calculated in
has been used for Takafulink Dana Ekuiti Dinasti accordance with the provisions of the certificate
to ensure equitable unit pricing for incoming, document.
outgoing and remaining unit-holders; and
g. Other Income
(iii) all deferred tax assets or liabilities arising from
the temporary differences on unrealised gains or Other income comprises income arising from rebates of
losses are recognised. management fees from the fund manager.

Notes to the Accounts Statements by Directors
1. Summary of Significant Accounting In the opinion of the Directors, the Takafulink Funds (‘Funds’)
financial statements set out on pages 38 to 56, comprising
Policies (continued) the Statements of Assets and Liabilities as at 31 December
h. Other Outgo 2019 and the related Statements of Income and Expenditure
and Statements of Changes in Net Asset Value for the financial
Other outgo comprises bank charges and custodian year ended 31 December 2019 together with the notes
charges. thereto, have been prepared, in all material respects in
i. Cash and Deposits accordance with the accounting policies set out in Note
1 to the financial statements and policy document on
Cash and cash equivalents consists of cash in hand Investment-Linked Business (BNM/RH/PD 029-36) issued by
and balances with Islamic banks, including Islamic Bank Negara Malaysia.
deposits.
Signed in accordance with a resolution of the Directors:
2. Rebates and Soft Commissions
The Fund Managers are restricted by regulations from
receiving any rebate or share any commission from
any broker/dealer. Accordingly, any rebate and share
commission received from stockbrokers/dealers shall
be directed to the Funds. However, soft commissions
received in the form of goods and services which are of Datuk Yunos Bin Abd Ghani
demonstrable benefit to unit-holders such as fundamental
databases, financial wire services, technical analysis
software and stock quotation system incidental to
investment management of the Funds are retained by the
Fund Manager. Lilian Ng Lup-Yin
25 March 2020
3. At 31 December 2019, the Funds had no
contingent liabilities or commitments.
4. All amounts are stated in Ringgit

Malaysia.

Independent Auditors’ Report
to the unitholders of Takafulink Funds
Report on the Financial Statements Basis for Opinion

We conducted our audit in accordance with approved
Report on the Audit of the Financial standards on auditing in Malaysia and International Standards
Statements on Auditing. Our responsibilities under those standards are
further described in the Auditors’ Responsibilities for the Audit
Opinion of the Financial Statements section of our auditors’ report. We
believe that the audit evidence we have obtained is sufficient
We have audited the financial statements of Takafulink
and appropriate to provide a basis for our opinion.
Funds of Prudential BSN Takaful Berhad (“the Manager”),
which comprise the Statements of Assets and Liabilities as at
31 December 2019, the Statements of Changes in Net Asset Emphasis of Matter
Value and the Statements of Income and Expenditure for We wish to draw your attention to Note 1a (ii) to the financial
the year then ended, and notes to the financial statements, statements whereby a lower rate of tax was used for deferred
including a summary of significant accounting policies, as set taxation provision. As fully explained in Note 1a (ii), the
out on pages 38 to 56. Directors of the Manager are of the opinion that it is fairer to
In our opinion, the accompanying financial statements for the unitholders to use a lower rate than the statutory tax rate in
year ended 31 December 2019 are prepared, in all material the pricing of units. Our opinion is not modified in respect of
respects, in accordance with the accounting policies set out this matter.
in Note 1 to the financial statements and the policy document
on Investment-Linked Business (BNM/RH/PD 029-36) issued
by Bank Negara Malaysia.

Independence and Other Ethical In connection with our audit of the financial statements of
Responsibilities the Takafulink Funds, our responsibility is to read the other
information and, in doing so, consider whether the other
We are independent of the Takafulink Funds in accordance with information is materially inconsistent with the financial
the By-Laws (on Professional Ethics, Conduct and Practice) of statements of the Takafulink Funds or our knowledge obtained
the Malaysian Institute of Accountants (“By-Laws”) and the in the audit, or otherwise appears to be materially misstated.
International Ethics Standards Board for Accountant’s Code of If, based on the work we have performed, we conclude that
Ethics for Professional Accountants (“IESBA Code”), and we there is a material misstatement of the other information, we
have fulfilled our other ethical responsibilities in accordance are required to report that fact. We have nothing to report in
with the By-Laws and the IESBA Code. this regard.
Information Other than the Financial Responsibilities of the Directors for the
Statements and Auditors’ Report Thereon Financial Statements
The Directors of the Manager are responsible for the other The Directors of the Manager are responsible for the preparation
information. The other information comprises the information of the financial statements in accordance with the accounting
included in the Takafulink Funds Performance Report but does policies set out in Note 1 to the financial statements and
not include the financial statements of the Takafulink Funds the policy document on Investment-Linked Business
and our auditors’ report thereon. (BNM/RH/PD 029-36) issued by Bank Negara Malaysia.
The Directors are also responsible for such internal control
Our opinion on the financial statements of the Takafulink Funds as the Directors determine is necessary to enable the
does not cover the other information and we do not express preparation of financial statements that are free from material
any form of assurance conclusion thereon. misstatement, whether due to fraud or error.

Responsibilities of the Directors for the As part of an audit in accordance with approved standards on
Financial Statements (continued) auditing in Malaysia and International Standards on Auditing,
we exercise professional judgement and maintain professional
In preparing the financial statements of the Takafulink Funds, scepticism throughout the audit. We also:
the Directors are responsible for assessing the ability of the
Takafulink Funds to continue as a going concern, disclosing, • Identify and assess the risks of material misstatement of the
as applicable, matters related to going concern and using the financial statements, whether due to fraud or error, design
going concern basis of accounting unless the Directors either and perform audit procedures responsive to those risks, and
intend to liquidate the Takafulink Funds or to cease operations, obtain audit evidence that is sufficient and appropriate to
or have no realistic alternative but to do so. provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion,
Auditors’ Responsibilities for the Audit of forgery, intentional omissions, misrepresentations, or the
the Financial Statements override of internal control.
Our objectives are to obtain reasonable assurance about • Obtain an understanding of internal control relevant
whether the financial statements as a whole are free from to the audit in order to design audit procedures that are
material misstatement, whether due to fraud or error, appropriate in the circumstances, but not for the purpose of
and to issue an auditors’ report that includes our opinion. expressing an opinion on the effectiveness of the internal
Reasonable assurance is a high level of assurance, but is control of the Takafulink Funds.
not a guarantee that an audit conducted in accordance with
approved standards on auditing in Malaysia and International • Evaluate the appropriateness of accounting policies used
Standards on Auditing will always detect a material and the reasonableness of accounting estimates and related
misstatement when it exists. Misstatements can arise from disclosures made by the Directors.
fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis
of these financial statements.

Auditors’ Responsibilities for the Audit of Other Matter

the Financial Statements (continued) This report is made solely to the unitholders of Takafulink
• Conclude on the appropriateness of the Directors’ use of Funds, as a body, and for no other purpose. We do not assume
the going concern basis of accounting and, based on the responsibility to any other person for the content of this report.
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the ability of the Takafulink Funds to
continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our KPMG PLT
auditors’ report to the related disclosures in the financial (LLP0010081-LCA & AF 0758)
statements of the Takafulink Funds or, if such disclosures Chartered Accountants
are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of 25 March 2020
our auditors’ report. However, future events or conditions Petaling Jaya
may cause the Takafulink Funds to cease to continue as a
going concern.
We communicate with the Directors regarding, among other
matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.

Prudential BSN Takaful Berhad is a registered
Takaful Operator under the Islamic Financial Services Act 2013 and
is regulated by Bank Negara Malaysia.
Prudential BSN Takaful Berhad (Company No: 200601020898)

Level 13, Menara Prudential, Persiaran TRX Barat, 55188 Tun Razak Exchange, Kuala Lumpur.
P.O. Box 10073, 50704 Kuala Lumpur.
General: +603 2778 3888 • Customer Service: +603 2053 7188
E-mail: customer@prubsn.com.my
prubsn.com.my prubsn prubsn_official PruBSN Official

2019 BI annFundStatement

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2019 BI annFundStatement

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For All For Life

TAKAFULINK FUNDS REPORT 2019

In the name of Allah, Most Gracious and Most

Dear valued Takafulink Certificate Holders,

It gives me great pleasure to share with you the

2 Takafulink Funds Report 2019

Takafulink Funds Report 2019 3

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Takafulink Dana Bon Takafulink Dana Aktif

Takafulink Dana Urus Takafulink Dana Ekuiti Global

Takafulink Dana Ekuiti Dinasti

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Takafulink Dana Ekuiti

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Takafulink Dana Ekuiti (continued)

Average Annual Return – Fund (+)

16 Takafulink Funds Report 2019

Takafulink Dana Ekuiti Fund Performance

+ The Fund returns are calculated based on five decimal places.

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Takafulink Dana Bon

Average Annual Return – Fund (+)

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Takafulink Dana Bon Fund Performance

TDB MBB 12 months Islamic Fixed Deposit-i Rate

+ The Fund returns are calculated based on five decimal places.

Takafulink Funds Report 2019 19

Takafulink Dana Urus

Average Annual Return – Fund (+)

20 Takafulink Funds Report 2019

Takafulink Dana Urus Fund Performance

+ The Fund returns are calculated based on five decimal places.

Takafulink Funds Report 2019 21

Takafulink Dana Ekuiti Dinasti

Average Annual Return – Fund (+)

22 Takafulink Funds Report 2019

Takafulink Dana Ekuiti Dinasti Fund Performance

TDED Dow Jones Islamic Market Greater China Index

+ The Fund returns are calculated based on five decimal places.

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Takafulink Dana Dinamik

Total Net Asset Value (RM) 3,175,348 1,094,671

Average Annual Return – Fund (+)

24 Takafulink Funds Report 2019

Takafulink Dana Dinamik Fund Performance

+ The Fund returns are calculated based on five decimal places.

Takafulink Funds Report 2019 25

Takafulink Dana Aktif

Total Net Asset Value (RM) 477,363 4,575

Average Annual Return – Fund (+)

26 Takafulink Funds Report 2019

Takafulink Dana Aktif Fund Performance

+ The Fund returns are calculated based on five decimal places.

Takafulink Funds Report 2019 27

Takafulink Dana Ekuiti Global

Total Net Asset Value (RM) 604,260