RHB Growth and Income Focus Trust

RHB GROWTH AND INCOME FOCUS TRUST
ANNUAL REPORT 2020
For the financial year ended 31 December 2020

GENERAL INFORMATION ABOUT THE FUND
Name, Category and Type
Fund Name - RHB Growth and Income Focus Trust
Fund Category - Mixed asset fund
Fund Type - High growth and income fund
Investment Objective, Policy and Strategy
Objective of the Fund
This Fund aims to achieve maximum total returns through a combination of long
term* growth of capital and current income.
* Note: “long term” in this context refers to a period of between 5 – 7 years.
Strategy
The asset allocation of the Fund will be as follows:-
30% - 70% of - Investments in securities of companies with market

Net Asset Value capitalisation of not more than RM750 million (“small cap
securities”).
30% - 70% of - Investments in fixed income securities, money market

Net Asset Value instruments, cash and deposits with financial institutions.
1
Performance Benchmark
The performance of the Fund is benchmarked against “GIFT Index” which is a

composite benchmark comprising 50% FBM Fledging Index and 50% 12-month
fixed deposit rate by Maybank.
Permitted Investments
This Fund may invest in securities traded on the Bursa Malaysia or any other market
considered as an eligible market, unlisted securities, collective investments schemes,
financial derivatives, structured products, liquid assets (including money market
instruments and deposits with any financial institutions), participate in the lending of
securities and any other investments permitted by the Securities Commission
Malaysia from time to time.
Distribution Policy
Consistent with the Fund’s objective of long term growth of capital and current
income, the Fund will distribute a portion of its returns to unit holders. Distributions,
if any, after deduction of taxation expense and expenses are generally declared
annually and will be reinvested.
2
MANAGER’S REPORT
MARKET REVIEW
Going into the year 2020, the FTSE Bursa Malaysia KLCI Index (“FBMKLCI”)
index did have a boost at the start of the year, it all went downhill from the second
week onwards when the news broke out on Iran hitting a United States (“US”)
military base in Iraq in retaliation against the US forces for the killing of General
Qasem Soleimani in Baghdad on 3 January 2020. The index hasn’t really looked
back since with major global news headlines focusing on anything and everything
relating to the coronavirus. In line with the global risk off sentiment, the FBMKLCI
closed -3.60% for the month of January 2020. In February 2020, amidst the political
uncertainty, interim Prime Minister Tun Mahathir announced an economic stimulus
package with a headline impact of RM20bn, mainly having three thrusts: 1)
mitigating the impact of COVID-19; 2) spurring Rakyat centric economic growth;
and 3) promoting quality investments. In a twist of events in Malaysia’s political
arena, we saw a new Prime Minister sworn in on 1 March 2020, with the King’s
blessing. In the following month, Malaysia saw a change in government, global oil
prices plummet and spread of COVID-19 pandemic which led to Movement Control
Order (“MCO”) in Malaysia. Bank Negara Malaysia (“BNM”) has also cut the
interest rate and lowered the statutory reserve requirement in order to inject more
liquidity into the economy. In addition, the government has also unveiled RM250bn
of stimulus package or 17.00% of Gross Domestic Product (“GDP”) to help cushion
the impact of the slowing economy. The FBMKLCI closed at 1350.89 points,
declined by -8.90% in the month of March 2020.
In April 2020, Malaysia extended the MCO twice during the month until 12th of May
2020 mainly to slow the spread of COVID-19. The Ministry of International Trade
and Industry estimated that the economy was operating at only 45.00% of its
operating capacity throughout April during the MCO. The government also
announced a fourth COVID-19 related stimulus package of RM10bn to assist the
Small and Medium Enterprise (“SME”) sector. The FBMKLCI saw its first month on
month (“MoM”) gain this year in April 2020 at +4.20%. Year-to-date ("YTD")
however, the index is still down -11.4%. FBM KLCI ended the month at 1,407 points
after falling to the lowest of 1,219 on 19th March 2020. Subsequently, the FBMKLCI
rallied for the second consecutive month gaining +4.70% MoM in May 2020. The
positive sentiments were driven by the gloves sector, recovery in crude oil and palm
oil prices. On the monetary front, BNM has cut its Overnight Policy Rate (“OPR”) by
50 bps to 2.00%, a level last seen during the 2008-09 global financial crisis. In June
2020, the FBMKLCI index was struggling to stay above 1500 level due to the
absence of positive fresh leads and global negative factors that affected the sentiment
of the equity market. With a confluence of negative factors like the uncertain quick
global economic recovery, the resurgence of coronavirus infections worldwide, the
potential uplifting of short-selling ban domestically post 30th June 2020 and political
3
noises, the index consolidated in June 2020 after touched the high of 1,590.
Meanwhile, Standard and Poor (“S&P”) downgraded Malaysia outlook to negative
from stable, with A- rating.
Meanwhile, the Asia Ex-Japan equity Index pulled off yet another strong
performance in July 2020 (8.00%) to register its YTD returns (1.80%) into positive
territory. Over in Malaysia, the benchmark FBMKLCI Index closed above 1600
points despite month end sell down ahead of the long weekend break. The glove
stocks remained active as the number of Covid19 cases continue to rise globally.
Plantations stocks also gained after mini rally in Crude palm oil price to intra month
high of RM2,800 per metric tonnes. In the following month, it turned out to be a
dreadful month for Malaysia equity market. Malaysia is one of the worst performing
market for month of August 2020 dragged down by poor earnings particularly
banking sector. Except for gloves, insurance, technology and plantations, all other
sectors saw a sharp contraction in second quarter 2020 (“2Q20”) earnings due to the
lockdown. The FBM KLCI declined by 78 points during the month of August 2020
to close at 1525.21 points. Apart from poor corporate earnings season, the index was
also dragged down by weakness in glove companies from the vaccine discovery
newsflows. Meanwhile, Malaysia's 2Q20 GDP contracted 17.10% year-on-year
(“YoY”), falling short of consensus. The FBM KLCI fell by 1.30% MoM in
September 2020 for the second consecutive month due to concerns over political
uncertainty, ending of the loan moratorium on 30th September 2020 and rising new
COVID-19 cases. In October 2020, the FBM KLCI retraced -2.52% MoM to 1,467
points. While it wasn’t the weakest monthly performance this year (March 2020: -
8.90% MoM), it was certainly the worst month for COVID-19 infections, with high
number of cases reported, therefore, it was no surprise that KL, Putrajaya, Selangor
and Sabah went back into Conditional Movement Control Order (“CMCO”). Apart
from the pandemic news, domestic political developments during the month also
created volatility in the equity market as well. Meanwhile, the Brent crude oil price
declined -8.50% during the month, due to continued demand concerns and the Crude
Palm Oil futures traded higher to RM3,252, +14.50% MoM on the back of potential
decline in productions. Going into November 2020, it was the second-best month for
FBM KLCI in year 2020 with a +6.53% gain (July: +6.85%) to close at 1,563 points,
as gainers significantly outnumbered losers. Investors bought into value stocks which
were bashed down year to date, while COVID-19 pandemic is still around with daily
cases remain high. The FBM KLCI gained +4.10% in December 2020 to close at
1,627 points. Market sentiment remains buoyant despite Fitch Ratings’ downgraded
Malaysia’s long term foreign currency issuer default rating to BBB+ from A+ with a
stable outlook as the US authorized a COVID-19 vaccine developed by Pfizer for
emergency use and news on the first shipments across the US to inoculate more than
100 million people by the end of March 2021.
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FIXED INCOME MARKET REVIEW
During the year under review, the year of 2020 started with geopolitical tension
arising after United States of America (“USA”) assassinated top Iranian commander.
Iran has retaliated back with an attack that hit bases of housing American troops in
Iraq with ballistic missiles which rattled the market for safe haven demand during the
first week of the year. After a temporary calm on that front, local market further
driven by a surprised pre-emptive 25 bps cut in OPR by BNM on their first Monetary
Policy Meeting (“MPC”) of the year. Support in the fixed income space further
extended as market’s confidence has been somewhat shaky by the spreading of
coronavirus which spilling fast into neighboring countries and as far as in the USA
and Europe. With lower GDP print of 4.30% for year 2019, at a lower range of BNM
forecast of 4.30%-4.80%, Governor Nor Shamsiah was quoted to have indicated that
there is ample room to adjust OPR as low inflation shall provide policy space for the
action. The growth disappointment alongside dovish remark by the Governor has
reaffirmed market’s view of another 25bps cut and justified safe haven bid that
lending further supports to local government bonds.
Nevertheless, the local yields were sold-off from the middle of March 2020 onward
following the plunge in oil prices, weaker Ringgit and a broad-based selling in
regional rates. The plunged in oil prices as a result of price war and supply pressure
has influenced investors to re-adjust their positioning on local assets due to concern
on higher revision in fiscal deficit amid thin market liquidity. Risk sentiments
remains fragile, with USD Malaysian Ringgit (“MYR”) pair rising to 4.44 level
before it stabilized towards month-end and settled at around 4.34 level. Despite the
efforts by central banks easing and government packages around the globe, markets
think it wasn’t enough to contain the impact from COVID-19 outbreak. As such, risk
off sentiments continued to persist and saw global investors dumping assets,
especially in the emerging market space and repatriate funds.
Second quarter of year 2020 started with extended rally after the sell-off in March
2020 appeared to diminish with attractive adjustment in term of yields have further
ignite buying demand into local government bonds market. Both Malaysian
Government Securities/ Malaysian Government Investment Issues (“MGS/MGII”)
have normalized back and in fact trading at tighter yield levels thanks to concerted
global central bank easing and prospects of further OPR cuts by BNM. In May 2020,
BNM again has cut the OPR by another 50 bps to 2.00%, a level last seen during the
year 2008-2009 global financial crisis. However, further announcement on recovery
stimulus package by Government in June 2020 to support domestic economy has
resulting in upward trajectory in yields due to the supply concern arising from higher
fiscal deficit. Following recent gains in tightening of bond yields, investors seen
realizing gains on top of supply concern resulting in upward movement in bond
yields during the end of second quarter.
5
Nevertheless, prospect of another rate cut by BNM has somehow supported the yield
at the start of second quarter. In July 2020, BNM again cut interest rate by another 25
basis points (“bps”), local government bond yields were continuously being bought
with longer-tenor ie; 15-year to 30-year emerged as best performers during the month
as curve flattening theme took place on dovish statement released from the meeting.
Nevertheless, the bullish run in Ringgit bonds came to a halt in mid-August 2020 at
the back of selling flows and profit taking activities amid the adjustments of rates
outlook by investors after BNM’s Governor remarked at the Malaysia’s 2nd Quarter
GDP release that she is ‘cautiously optimistic’ that the worst has passed and
projecting an economic recovery in the second half of the year. Therefore, we sense
that the need for rate cut has decreased at this juncture as global economies are
reopening gradually and central banks might prefer to leave some policy space for
future use.
Towards the final quarter of the year, bond market sentiment has skewed weaker
since the no OPR cut decision by BNM at its final meeting of the year on 3
November 2020. Looking ahead, curve steepening pressure might prevail on supply
dynamics point of view. Rising external yields will inevitably weigh on Ringgit
bonds when supply profile remains heavy while demand faces headwinds.
Nevertheless, BNM has ample capacity to raise its exposure in local government
bonds though may less motivated to do so if yield increase comes under the context
of better growth prospects. We remain opportunistic as the correction in yields will
attracts good entry level as policy remain far from tightening cycle.
Overall, the curve has bull-flattened during the period under review and closed at
1.86% (December-2019: 3.00%), 2.10% (3.18%), 2.37% (3.30%), 2.62% (3.30%),
3.22% (3.59%), 3.37% (3.69%) and 3.83% (4.10%) respectively.
ECONOMIC REVIEW & OUTLOOK
On the local economic front, Malaysia’s Consumer Prices Index (“CPI”) declined
further to -1.70% in November 2020, following reading of -1.50% in October 2020.
CPI has dropped for the nine-consecutive month in November 2020 since March
2020’s 0.20% decline. The surge in COVID-19 cases over the past month has
somehow resulted in a pullback of Malaysia’s CPI as demand weakened. The
decrease in the overall index was attributed to declines in transport (-11.10%),
housing, water, electricity, gas and other fuels (-3.30%), clothing and footwear (-
0.50%). The CPI's transport segment declined on cheaper petrol and diesel retail
price compared to a year ago. In the statement, the Department of Statistic Malaysia
(“DOSM”) said the average price of unleaded petrol RON95 decreased to RM1.63
per litre compared to RM2.08 in November 2019 amid persistently soft global crude
oil prices. Year to date, the CPI for the period of January 2020 to November 2020
decreases by -1.10%. The oil prices were anticipated to remain sluggish on mounting
demand concerns over surging cases while consumers may hold back spending on
6
non-essential items on concerns over future personal finances and the outlook of the
jobs market. For now, headline CPI is forecasted to be staying in negative territory
for year 2020 only rising through for the first half of year 2021 on base effects. To
recap, BNM’s inflation rate forecast remains at -1.50% to 0.50% for year 2020 and
see the inflation could pick-up to 1.00% to 3.00% in year 2021.
EQUITY MARKET OUTLOOK AND STRATEGY
The year 2020 will definitely be a year to remember for a long time. But despite the
emergence of COVID-19 at the start of the year and much of the world spent their
time under lockdowns, majority of markets still managed to record positive returns
with some reaching double digits or record highs.
Investors are looking at beyond the first half of year 2021 now and the expectations
are the economy will recover strongly from the second half of year 2021 due to the
availability of vaccines which will result in more countries opening up their
economy. The key themes for the year 2021 are the recovery in the economy and
global trade. Hence, we expect cyclical sectors to benefit as the economy recovers.
Also, we opined that ESG factors will be one of the important criteria in picking
stocks as well. Meanwhile, the improvement in earnings and foreign inflows will be
catalysts for the equity market as well. However, uncertainties are still prevailing due
to the surging local COVID-19 that may force further lockdowns that would
overshadow optimism over recent vaccine developments.
FIXED INCOME MARKET OUTLOOK AND STRATEGY
In terms of monetary policy, at the final BNM MPC of the year on 3rd November
2020, BNM has decided to keep its overnight policy rate unchanged at a record low
of 1.75%. This marked the second straight meeting that BNM has held the OPR
unchanged after consecutively lowering its benchmark rate by 125 bps from January
2020 to July 2020. BNM in a statement said that the latest indicators pointed towards
significant improvement in the economic activity in the third quarter. Nonetheless,
growth for the year 2020 is expected to be within the official forecasted range of -
5.50% to -3.50% with growth in year 2021 projected to improve further to a range of
6.50%-7.50%. The language in the monetary policy statement was relatively
sanguine, moving gradually away from the previous more pessimistic outlook. BNM
turned slightly optimistic on growth assessment but did highlight that the downside
risks to growth continue to persist amid recent resurgence of COVID-19 cases which
have resulted in major economies to re-introducing containment measures although
less restrictive compared to earlier in March 2020. These downside risks to growth
remain as further resurgence of infections could lead to weaker business,
employment and income conditions. We will further reassess BNM’s standing on
recent economic developments and outlook at this upcoming MPC meeting
scheduled on 27 January 2021. In term of inflation trajectory, BNM has guided that
7
inflation to be around -1.50% to +0.50% in year 2020 with year 2021 forecasted to be
at around 2.50%. That said, given modest uptick in inflation trajectory, we opine that
even easing cycle might enter its tail end, it is still far for BNM as well as other
central bankers to embark on tightening cycle thus will leave the interest rate low for
longer at this juncture.
For year 2021, key concern for the local fixed income is if there is a surprise leap in
year 2021’s global growth. If that happens, appetite for risk and allocation will pivot
towards riskier assets, underweight on bonds and weigh on local bond market
sentiment. That said, although market consensus estimate and International Monetary
Fund (“IMF”) see a +5.20% growth in year 2021, we believe that there is still
downside risk to this number; harnessing the need for bonds. Nevertheless, we
remain to view that the yield of United States Treasury (“UST”) 10-year to be limited
around current level of 1.00% given the downside risks to global growth going into
year 2021 as well as clear policy stance by the Federal Reserve (“Fed”) to maintain
the rates at current level for at least until year 2022. Lastly but certainly not the least,
it would be important to gauge on how quickly we would be able to secure a reliable
COVID-19 vaccine, not to mention the next steps being the efficacy of distribution to
the population in order to flatten the recent rise in cases we have experienced locally.
Effective control of the pandemic locally still remains key in setting on the path to
gradual recovery.
Therefore, we expect local government space to stay supported on widening yield

differential versus the UST. We opine that investing in MYR bonds is attractive from
a real yield perspective given the benign outlook on growth and moderate inflation
prospects globally. With subdued inflation expectation, we view it will further boost
the attractiveness of MYR bond market, thus keeping real yields attractive. On top of
that, broad USD weakness shall lead to better opportunities within local currency
bonds. Therefore, we see increase attractiveness towards emerging market yields
which are still decent compared to develop nation. In addition, the prospect of low
global interest rates for longer also may increase the appeal for yield hunting
strategies which may potentially see foreign inflows resurfaced as what have we
experienced in the second half of year 2020. Nevertheless, we will continue to
monitor the market situation given cautious investors’ sentiment due to supply
dynamic going forward in both government securities and corporate space as well as
heightened policy and political uncertainty domestically.
8
REVIEW OF FUND PERFORMANCE DURING THE YEAR
During the financial year under review, the Fund registered a total return of 4.60%*
compared to its benchmark return of 19.62%*. The underperformance was due to
weakness in equity holdings in the Industrials, Materials, Consumer staples and
Property sectors and selected fixed income securities. The Fund has not achieved its
investment objective for this financial year under review.
* Source: Lipper Investment Management (“Lipper IM”), 10 January 2021
9
PERFORMANCE DATA
Annual Total Returns

Financial Year Ended 31 December
2020 2019 2018 2017 2016
% % % % %
RHB Growth and
Income Focus Trust
- Capital Return 4.60 (3.04) (31.65) (5.59) (11.62)
- Income Return - - 3.70 11.31 -
- Total Return 4.60 (3.04) (29.12) 5.08 (11.62)
GIFT Index 19.62 5.33 (14.77) 12.19 (1.96)
Average Annual Returns

1 Year 3 Years 5 Years 10 Years
31.12.2019- 31.12.2017- 31.12.2015- 31.12.2010-
31.12.2020 31.12.2020 31.12.2020 31.12.2020
% % % %
RHB Growth and
Income Focus Trust 4.59 (10.41) (7.75) 1.85
GIFT Index 19.56 2.40 3.38 6.39
10
Performance of RHB Growth and Income Focus Trust
for the period from 31 December 2010 to 31 December 2020
Cumulative Return Over The Period (%)
Source: Lipper IM, 10 January 2021
The abovementioned performance figures are indicative returns based on daily Net
Asset Value of a unit (as per Lipper Database) since inception.
The calculation of the above returns is based on computation methods of Lipper.
Note : Past performance is not necessarily indicative of future performance and unit
prices and investment returns may go down, as well as up.
The abovementioned performance computations have been adjusted to

reflect distribution payments and unit splits wherever applicable.
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As at 31 December
Fund Size 2020 2019 2018
Net Asset Value (RM million) 26.21 32.11 44.60*
Units In Circulation (million) 94.52 121.14 163.14
Net Asset Value Per Unit (RM) 0.2773 0.2651 0.2734*
.2773
As at 31 December
Historical Data 2020 2019 2018
Unit Prices
NAV - Highest (RM) 0.2802 0.2932 0.4017*
- Lowest (RM) 0.2140 0.2629 0.2700*
Distribution and Unit Split

Gross Distribution Per Unit (sen) - - 1.0000
Net Distribution Per Unit (sen) - - 1.0000
Distribution Date - - 20.12.2018
NAV before distribution (cum) - - 0.2812
NAV after distribution (ex) - - 0.2711
Unit Split - - -
Others
Management Expense Ratio
(MER) (%) # 1.61 1.61 1.66
Portfolio Turnover Ratio (PTR)
(times) ## 0.40 0.33 0.47
* The figures quoted are ex-distribution
# The MER for the financial year was consistent compared with previous year.
## The PTR for the financial year was higher compared with previous financial
year due to more investment activities for the financial year under review.
DISTRIBUTION
For the financial year under review, no distribution has been proposed by the
Fund.
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PORTFOLIO STRUCTURE
The asset allocations of the Fund as at reporting date were as follows:
As at 31 December
2020 2019 2018
% % %
Equities
Construction 7.23 8.30 2.42
Consumer Products 13.53 10.28 11.57
Health Care 2.64 - -
Energy - 3.26 2.47
Financial Services - - 1.79
Industrial Products 20.47 23.23 22.54
Properties 1.97 - -
Technology 4.35 - 1.76
Trading/Services 1.78 1.50 1.05
TSR & Warrants - - 0.39
51.97 46.57 43.99
Collective investment schemes 0.35 - -
Unquoted fixed income
securities 44.02 48.36 41.74
Liquid assets and other net current
assets 3.66 5.07 14.27
100.00 100.00 100.00
The asset allocation was reflective of the Manager’s stance to risk manage its
portfolio in an environment of volatile markets.
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BREAKDOWN OF UNIT HOLDINGS BY SIZE
Account Holders No. Of Units Held*

Size of Holdings No. % (‘000) %
5,000 and below 355 18.26 875 0.93
5,001 to 10,000 306 15.74 2,292 2.42
10,001 to 50,000 918 47.22 22,162 23.45
50,001 to 500,000 353 18.16 41,729 44.15
500,001 and above 12 0.62 27,461 29.05
Total 1,944 100.00 94,519 100.00
* Excluding Manager’s stock
SOFT COMMISSION
The Fund Manager may only receive soft commission in the form of research and
advisory services that assist in the decision-making process relating to the Fund’s
investments.
During the financial year under review, the soft commission received from the
brokers had been retained by the Manager as the goods and services provided are of
demonstrable benefit to the unitholders.
14
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020
Note 2020 2019

RM RM
ASSETS
Bank balances 6 48,224 66,546
Deposits with licensed financial
institutions 6 982,886 1,552,256
Investments 5 25,251,147 30,484,642
Amount due from brokers - 182,307
Dividend receivables 12,168 32,869
TOTAL ASSETS 26,294,425 32,318,620
LIABILITIES
Amount due to Manager 34,836 146,067
Accrued management fee 33,167 41,457
Amount due to Trustee 1,327 1,658
Other payables and accruals 13,401 16,655
TOTAL LIABILITIES 82,731 205,837
NET ASSET VALUE 26,211,694 32,112,783
EQUITY
Unitholders’ capital 34,469,421 41,137,657
Accumulated losses (8,257,727) (9,024,874)
26,211,694 32,112,783
UNITS IN CIRCULATION (UNITS) 7 94,524,072 121,144,072
NET ASSET VALUE PER UNIT (RM) 0.2773 0.2651
The accompanying notes are an integral part of the financial statements.

15
STATEMENT OF INCOME AND EXPENSES
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020
Note 2020 2019

RM RM
INCOME/(LOSS)
Dividend income 328,620 688,615
Interest income from deposits with
licensed financial institutions 40,573 72,723
Interest income from investments 890,320 1,011,115
Net loss on investments 5 (24,196) (2,020,183)
Net loss on foreign currency
exchange (26) (5,246)
1,235,291 (252,976)
EXPENSES
Management fee 8 (398,657) (595,522)
Trustee’s fee 9 (15,947) (23,822)
Audit fee (7,350) (7,351)
Tax agent’s fee (3,000) (3,000)
Transaction costs (39,512) (50,617)
Other expenses (3,678) (10,384)
(468,144) (690,696)
Net income/(loss) before taxation 767,147 (943,672)

Taxation 10 - (24,640)
Net income/(loss) after taxation 767,147 (968,312)
Net income/(loss) after taxation is made up

of the following:
Realised amount (848,434) (870,372)
Unrealised amount 1,615,581 (97,940)
767,147 (968,312)
16
STATEMENT OF CHANGES IN NET ASSET VALUE
Unitholders’ Accumulated Total net

capital losses asset value
RM RM RM
Balance as at 1 January 2019 52,656,390 (8,056,562) 44,599,828

Movement in net asset value:
Net loss after taxation - (968,312) (968,312)
Creation of units arising
from applications 58,023 - 58,023
Cancellation of units (11,576,756) - (11,576,756)
Balance as at 31 December 2019 41,137,657 (9,024,874) 32,112,783
Balance as at 1 January 2020 41,137,657 (9,024,874) 32,112,783

Movement in net asset value:
Net gain after taxation - 767,147 767,147
Creation of units arising
from applications 25,077 - 25,077
Cancellation of units (6,693,313) - (6,693,313)
Balance as at 31 December 2020 34,469,421 (8,257,727) 26,211,694

17
STATEMENT OF CASH FLOWS
Note 2020 2019

RM RM
CASH FLOWS FROM OPERATING
ACTIVITIES
Proceeds from sale of investments 12,736,844 14,093,947
Proceeds from redemption of investments - 1,000,000
Purchase of investments (7,271,521) (9,456,623)
Dividends received 349,321 695,424
Interest received from deposits with
licensed financial institutions 40,573 72,723
Interest received from unquoted
fixed income securities 777,091 872,393
Management fee paid (406,947) (611,509)
Trustee’s fee paid (16,278) (24,462)
Payment for other fees and expenses (17,282) (23,639)
Net cash generated from operating activities 6,191,801 6,618,254
CASH FLOWS FROM FINANCING

ACTIVITIES
Cash proceeds from units created 25,077 58,569
Cash paid for units cancelled (6,804,544) (11,430,689)
Net cash used in financing activities (6,779,467) (11,372,120)
Net decrease in cash and cash equivalents (587,666) (4,753,866)

Foreign currency translation differences (26) (9,759)
Cash and cash equivalents at the beginning
of the financial year 1,618,802 6,382,427
Cash and cash equivalents at the end
of the financial year 6 1,031,110 1,618,802
18
NOTES TO THE FINANCIAL STATEMENTS
1. THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES
The RHB Growth and Income Focus Trust (hereinafter referred to as “the Fund”)
was constituted pursuant to the execution of a Master deed dated 27 April 2004 as
modified via its first supplemental master deed dated 8 June 2004, second
supplemental master deed dated 19 October 2005, third supplemental master deed
dated 8 December 2005, fourth supplemental master deed dated 28 February 2006,
fifth supplemental master deed dated 9 March 2006, sixth supplemental master deed
dated 22 September 2006, seventh supplemental master deed dated 15 December
2006, eighth supplemental master deed dated 30 January 2007, ninth supplemental
master deed dated 9 April 2007, tenth supplemental master deed dated 14 May 2007,
eleventh supplemental master deed dated 15 May 2007, twelfth supplemental master
deed dated 27 June 2007, thirteenth supplemental master deed dated 24 December
2007, fourteenth supplemental master deed dated 28 February 2013, fifteenth
supplemental master deed dated 4 September 2013, sixteenth supplemental master
deed dated 2 March 2015, seventeenth supplemental master deed dated 8 May 2015,
eighteenth supplemental master deed dated 25 May 2015 and nineteenth
supplemental master deed dated 3 June 2015 (hereinafter referred to as “the Deeds”)
between RHB Asset Management Sdn Bhd (“the Manager”) and HSBC (Malaysia)
Trustee Berhad (“the Trustee”).
The Fund was launched on 7 January 2005 and will continue its operations until
terminated according to the conditions provided in the Deeds.
The principal activity of the Fund is to invest in Permitted Investments as defined

under the Deeds.
All investments will be subject to the Securities Commission’s (“SC”) Malaysia

Guidelines on Unit Trust Funds, SC requirements, the Deeds, except where
exemptions or variations have been approved by the SC, internal policies and
procedures and objective of the Fund.
The main objective of the Fund is to maximise total returns through a combination of
long term (between 5 – 7 years) growth of capital and current income.
The Manager, a company incorporated in Malaysia, and is a wholly-owned

subsidiary of RHB Investment Bank Berhad, effective 6 January 2003. Its principal
activities include rendering of investment management services, management of unit
trust funds and private retirement schemes and provision of investment advisory
services.
19
1. THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES
(CONTINUED)
These financial statements were authorised for issue by the Manager on 24 February
2021.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of preparation of the financial statements
The financial statements have been prepared under the historical cost convention, as
modified by the revaluation of financial assets and financial liabilities (including
derivative instruments) at fair value through profit or loss, except those as disclosed
in the summary of significant accounting policies, and in accordance with Malaysian
Financial Reporting Standards (“MFRS”) and International Financial Reporting
Standards (“IFRS”).
The preparation of financial statements in conformity with MFRS and IFRS requires
the use of certain critical accounting estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of income
and expenses during the financial year. It also requires the Manager to exercise its
judgement in the process of applying the Fund’s accounting policies. Although these
estimates and judgement are based on the Manager’s best knowledge of current
events and actions, actual results may differ.
(a) The Fund has applied the following amendments and interpretations for the
first time for the financial year beginning on 1 January 2020:
 The Conceptual Framework for Financial Reporting (“Framework”)

(effective 1 January 2020)
The Framework was revised with the primary purpose to assist the
International Accounting Standards Board (“IASB”) to develop IFRS
that are based on consistent concepts and enable preparers to develop
consistent accounting policies where an issue is not addressed by an
IFRS.
20
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.1 Basis of preparation of the financial statements (continued)
first time for the financial year beginning on 1 January 2020: (continued)

(effective 1 January 2020) (continued)
Key changes include:

- increasing the prominence of stewardship in the objective of financial
reporting
- reinstating prudence as a component of neutrality
- defining a reporting entity, which may be a legal entity, or a portion of
an entity
- revising the definitions of an asset and a liability
- removing the probability threshold for recognition and adding
guidance on derecognition
- adding guidance on different measurement basis, and
- stating that profit or loss is the primary performance indicator and
that, in principle, income and expenses in other comprehensive
income should be recycled where this enhances the relevance or
faithful representation of the financial statements.
No changes are made to any of the current accounting standards.

However, entities that rely on the Framework in determining their
accounting policies for transactions, events or conditions that are not
otherwise dealt with under the accounting standards have to apply the
revised Framework from 1 January 2020.
 Amendments to MFRS 101 and MFRS 108 ‘Definition of Material’

(effective 1 January 2020) clarify the definition of materiality and use a
consistent definition throughout MFRSs and the Conceptual Framework
for Financial Reporting.
21
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.1 Basis of preparation of the financial statements (continued)
first time for the financial year beginning on 1 January 2020: (continued)

(effective 1 January 2020) (continued)
The revised Framework and adoption of the amendments to published standards

did not have any impact on the current year or any prior period and is not likely to
affect future periods.
(b) A number of new standards, amendments to standards and interpretations are

effective for annual periods beginning after 1 January 2020, and have not been
early adopted in preparing these financial statements. None of these are expected
to have a material effect on the financial statements of the Fund.
22
(CONTINUED)
2.2 Financial assets
Classification
The Fund classifies its financial assets in the following measurement categories:
• those to be measured subsequently at fair value through profit or loss

(“FVTPL”), and
• those to be measured at amortised cost.
The Fund classifies its investments based on both the Fund’s business model for
managing those financial assets and the contractual cash flow characteristics of the
financial assets. The portfolio of financial assets is managed and performance is
evaluated on a fair value basis. The Fund is primarily focused on fair value
information and uses that information to assess the assets’ performance and to make
decisions. The Fund has not taken the option to irrevocably designate any equity
securities as fair value through other comprehensive income. The contractual cash
flows of the Fund’s debt securities are solely principal and interest, however, these
securities are neither held for the purpose of collecting contractual cash flows nor
held both for collecting contractual cash flows and for sale. The collection of
contractual cash flows is only incidental to achieving the Fund’s business model’s
objective. Consequently, all investments are measured at fair value through profit or
loss.
The Fund classifies cash and cash equivalents, amount due from brokers and
dividend receivables as financial assets measured at amortised cost as these financial
assets are held to collect contractual cash flows consisting of the amount outstanding.
23
(CONTINUED)
2.2 Financial assets (continued)
Recognition and measurement
Regular purchases and sales of financial assets are recognised on the trade date - the
date on which the Fund commits to purchase or sell the asset. Financial assets at fair
value through profit or loss are initially recognised at fair value. Transaction costs are
expensed as incurred in the statement of income and expenses.
Financial assets are derecognised when the rights to receive cash flows from the
investments have expired or the Fund has transferred substantially all risks and
rewards of ownership.
Subsequent to initial recognition, all financial assets at fair value through profit or
loss are measured at fair value. Gains or losses arising from changes in the fair value
of the ‘financial assets at fair value through profit or loss’ category are presented in
statement of income and expenses in the period in which they arise.
Dividend from financial assets at fair value through profit or loss is recognised in the
statement of income and expenses within dividend income when the Fund’s right to
receive payments is established.
Interest on debt securities at fair value through profit or loss is recognised in the
statement of income and expenses.
Quoted investments and collective investment scheme are initially recognised at fair
value and subsequently re-measured at fair value based on the market price quoted on
the relevant stock exchanges at the close of the business on the valuation day, where
the close price falls within the bid-ask spread. In circumstances where the close price
is not within the bid-ask spread, the Manager will determine the point within the bid-
ask spread that is most representative of the fair value.
If a valuation based on the market price does not represent the fair value of the
securities, for example during abnormal market conditions or when no market price
is available, including in the event of a suspension in the quotation of the securities
for a period exceeding 14 days, or such shorter period as agreed by the Trustee, then
the securities are valued as determined in good faith by the Manager, based on the
methods or bases approved by the Trustee after appropriate technical consultation.
24
(CONTINUED)
Recognition and measurement (continued)
Unquoted fixed income securities denominated in Ringgit Malaysia are revalued on a

daily basis based on fair value prices quoted by a bond pricing agency (“BPA”)
registered with the SC Malaysia Guidelines on Unit Trust Funds.
Where such quotations are not available or where the Manager is of the view that the
price quoted by the BPA price or the BGN price for a specific unquoted fixed income
security differs from the market price by more than 20 basis points, the Manager may
use the market price, provided that the Manager:
(i) Records its basis for using a non-BPA price

(ii) Obtains necessary internal approvals to use the non-BPA price; and
(iii) Keeps an audit trail of all decisions and basis for adopting the market price.
Deposits with licensed financial institutions are stated at cost plus accrued interest
calculated on the effective interest method over the period from the date of placement
to the date of the statement of financial position, which is a reasonable estimate of
fair value due to the short-term nature of the deposits.
Financial assets at amortised cost are subsequently carried at amortised cost using the
effective interest method.
Impairment of financial assets
The Fund measures credit risk and expected credit losses using probability of default,
exposure at default and loss given default. Management considers both historical
analysis and forward-looking information in determining any expected credit loss.
Management considers the probability of default to be close to zero as these
instruments have a low risk of default and the counterparties have a strong capacity
to meet their contractual obligations in the near term. As a result, no loss allowance
has been recognised based on 12-month expected credit losses as any such
impairment would be wholly insignificant to the Fund.
25
(CONTINUED)
Significant increase in credit risk
A significant increase in credit risk is defined by management as any contractual

payment which is more than 30 days past due or a counterparty credit rating which
has fallen below BBB/Baa.
Definition of default and credit-impaired financial assets
Any contractual payment which is more than 90 days past due is considered credit
impaired.
Write-off
The Fund writes off financial assets, in whole or in part, when it has exhausted all
practical recovery efforts and has concluded there is no reasonable expectation of
recovery. The assessment of no reasonable expectation of recovery is based on
unavailability of debtor’s sources of income or assets to generate sufficient future
cash flows to repay the amount. The Fund may write off financial assets that are still
subject to enforcement activity. Subsequent recoveries of amounts previously written
off will result in impairment gains. There are no write-offs/recoveries during the
financial year.
2.3 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, within the scope of MFRS 9, 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 which include amount due to Manager, accrued
management fee, amount due to Trustee and other payables and accruals are
recognised initially at fair value and subsequently measured at amortised cost using
the effective interest method.
A financial liability is derecognised when the obligation under the liability is

extinguished. Gains and losses are recognised in statement of income and expenses
when the liabilities are derecognised, and through the amortisation process.
26
(CONTINUED)
2.4 Unitholders’ capital
The unitholders’ contributions to the Fund meet the criteria of the definition of
puttable instruments to be classified as equity instruments under MFRS 132
“Financial Instruments: Presentation”. Those criteria include:
 the units entitle the holder to a proportionate share of the Fund’s net assets value;
 the units are the most subordinated class and class features are identical;
 there is no contractual obligation to deliver cash or another financial asset other
than the obligation on the Fund to repurchase; and
 the total expected cash flows from the units over its life are based substantially on
the statement of income and expenses of the Fund.
The outstanding units are carried at the redemption amount that is payable at each
financial year if the unitholders exercise the right to put the units back to the Fund.
Units are created and cancelled at prices based on the Fund’s net asset value per unit
at the time of creation or cancellation. The Fund’s net asset value per unit is
calculated by dividing the net assets attributable to unitholders with the total number
of outstanding units.
2.5 Income recognition
Dividend income from quoted investments and collective investment scheme are
recognised when the Fund’s right to receive payment is established. Dividend income
is received from financial assets measured at FVTPL.
Interest income from deposits with licensed financial institutions and unquoted fixed
income securities are recognised on an accrual basis using the effective interest
method.
Interest income is calculated by applying the effective interest rate to the gross
carrying amount of a financial asset except for financial assets that subsequently
become credit-impaired. For credit-impaired financial assets, the effective interest
rate is applied to the net carrying amount of the financial assets (after deduction of
the loss allowance).
Realised gain or loss on sale of quoted investments and collective investment scheme
are arrived at after accounting for cost of investments, determined on the weighted
average cost method.
27
(CONTINUED)
2.5 Income recognition (continued)
Realised gain or loss on sale of unquoted fixed income securities are measured by the
difference between disposal proceeds and the carrying amount of investments
(adjusted for accretion of discount or amortisation of premium).
Net income or loss is the total of income less expenses.
2.6 Taxation
Current tax expense is determined according to Malaysian tax laws and includes all
taxes based upon the taxable income earned during the financial year.
Tax on dividend income from foreign quoted investments is based on the tax regime
of the respective countries that the Fund invests in.
2.7 Cash and cash equivalents
For the purpose of the statement of cash flows, cash and cash equivalents comprise
bank balances and deposits with licensed financial institutions which are subject to an
insignificant risk of changes in value.
2.8 Amount due from/to brokers
Amounts due from/to brokers represent receivables for securities sold and payables
for securities purchased that have been contracted for but not yet settled or delivered
on the date of the statement of financial position respectively. The amount due from
brokers balance is held for collection.
These amounts are recognised initially at fair value and subsequently measured at
amortised cost. At each reporting date, the Fund shall measure the loss allowance on
amounts due from brokers at an amount equal to the lifetime expected credit losses if
the credit risk has increased significantly since initial recognition. If, at the reporting
date, the credit risk has not increased significantly since initial recognition, the Fund
shall measure the loss allowance at an amount equal to 12-month expected credit
losses. Significant financial difficulties of the broker, probability that the broker will
enter bankruptcy or financial reorganisation, and default in payments are all
considered indicators that a loss allowance may be required.
28
(CONTINUED)
2.9 Presentation and functional currency
Items included in 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 the Fund’s presentation and functional currency.
Due to mixed factors in determining the functional currency of the Fund, the
Manager has used its judgement to determine the functional currency that most
faithfully represents the economic effects of the underlying transactions, events and
conditions and have determined the functional currency to be in RM primarily due to
the following factors:
• Part of the Fund’s cash is denominated in RM for the purpose of making

settlement of the creation and cancellation.
• The Fund’s units are denominated in RM.
• The Fund’s significant expenses are denominated in RM.
2.10 Foreign currency translation
Foreign currency transactions in the Fund are accounted for at exchange rates
prevailing at the transaction dates. Foreign currency monetary assets and liabilities
are translated at exchange rates prevailing at the reporting date. Exchange differences
arising from the settlement of foreign currency transactions and from the translation
of foreign currency monetary assets and liabilities are recognised in statement of
income and expenses.
29
3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Fund is exposed to a variety of risks, which include market risk, price risk,
interest rate risk, currency risk, credit risk, liquidity risk and capital risk.
Financial risk management is carried out through internal control processes adopted
by the Manager and adherence to the investment restrictions as stipulated in the SC
Malaysia Guidelines on Unit Trust Funds.
Market risk
Securities may decline in value due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of a security
may decline due to general market conditions which are not specifically related to a
particular company, such as real or perceived adverse economic conditions, changes
in the general outlook for corporate earnings, changes in interest or currency rates or
adverse investors’ sentiment generally. They may also decline due to factors that
affect a particular industry or industries, such as labour shortages or increased
production costs and competitive conditions within an industry. Equity securities
generally have greater price volatility than fixed income securities. The market price
of securities owned by a unit trust fund might go down or up, sometimes rapidly or
unpredictably.
Price risk
Price risk is the risk that the fair value of an investment of the Fund will fluctuate
because of changes in market prices.
The Fund is exposed to equity security and collective investment scheme (other than
those arising from interest rate risk) price risk for its investments of RM13,713,357
(2019: RM14,955,459).
The Fund is exposed to price risk arising from interest rate risk in relation to its
investments of RM11,537,790 (2019: RM15,529,183) in unquoted fixed income
securities. The Fund’s exposure to price risk arising from interest rate risk and the
related sensitivity analysis are disclosed in “Interest rate risk” below.
The sensitivity analysis is based on the assumption that the price of the quoted
securities investments and collective investment scheme fluctuate by +/(-) 5% with
all other variables held constant, the impact on the statement of income and expenses
and net asset value is +/(-) RM685,668 (2019: RM747,773).
30
(CONTINUED)
Interest rate risk
In general, when interest rates rise, unquoted fixed income securities prices will tend
to fall and vice versa. Therefore, the net asset value of the Fund may also tend to fall
when interest rates rise or are expected to rise. In order to mitigate interest rates
exposure of the Fund, the Manager will manage the duration of the portfolio via
shorter or longer tenured assets depending on the view of the future interest rate trend
of the Manager, which is based on its continuous fundamental research and analysis.
This risk is crucial since unquoted fixed income securities portfolio management
depends on forecasting interest rate movements. Prices of unquoted fixed income
securities move inversely to interest rate movements, therefore as interest rates rise,
the prices of unquoted fixed income securities decrease and vice versa. Furthermore,
unquoted fixed income securities with longer maturity and lower yield coupon rates
are more susceptible to interest rate movements.
The table below summarises the sensitivity of the Fund’s profit or loss and net asset
value as at reporting date to movements in prices of unquoted fixed income securities
held by the Fund as a result of movement in interest rate fluctuation by +/(-) 1% with
all other variables held constant.
Impact on profit
% Change in or loss and
interest rate net asset value
2020 2019
RM RM
+1% (60,078) (70,388)
- 1% 60,537 70,969
The Fund’s exposure to interest rate risk arises from investment in money market
instruments is expected to be minimal as the Fund’s investments comprise mainly
short term deposits with approved licensed financial institutions.
31
(CONTINUED)
Currency risk
Currency risk is associated with financial instruments that are quoted and/or priced in
foreign currency denomination. Malaysian based investor should be aware that if the
Ringgit Malaysia appreciates against the currencies in which the portfolio of the
investment is denominated, this will have an adverse effect on the net asset value of
the Fund and vice versa. The Fund did not have any significant financial liabilities
denominated in foreign currencies as at the financial year end date.
The Manager or its fund management delegate could utilise two pronged approaches
in order to mitigate the currency risk; firstly by spreading the investments across
different currencies (i.e. diversification) and secondly, by hedging the currencies
when it deemed necessary.
The analysis is based on the assumption that the foreign exchange rate fluctuates by
+/(-) 5%, with all other variables remain constants, the impact on statement of income
and expenses and net asset value is +/(-) RM23,811 (2019: RM24,527).
Cash and cash

Investments equivalents Total
RM RM RM
2020
Hong Kong Dollar - 849 849
Indonesian Rupiah 467,017 57 467,074
Singapore Dollar - 7,809 7,809
United States Dollar - 480 480
467,017 9,195 476,212
2019
Hong Kong Dollar - 860 860
Indonesian Rupiah 481,713 60 481,773
Singapore Dollar - 7817 7,817
United States Dollar - 81 81
481,713 8,818 490,531
32
(CONTINUED)
Credit risk
Credit risk refers to the possibility that the issuer of a particular investment will not
be able to make timely or full payments of principal or income due on that
investment. For investments in fixed income securities, risk is minimised by
spreading its maturity profile. The risk arising from placements of deposits in
licensed financial institutions is managed by ensuring that the Fund will only place
deposits in reputable licensed financial institutions. For amount due from
stockbrokers, the settlement terms are governed by the relevant rules and regulations
as prescribed by the Bursa Malaysia Securities Berhad (“Bursa Malaysia”).
The following table sets out the credit risk concentrations of the Fund:
Cash and Other

cash financial
Investments equivalents assets* Total
RM RM RM RM
2020
AAA - 1,031,110 - 1,031,110
AA- 1,024,642 - - 1,024,642
A3 1,011,061 - - 1,011,061
BBB 4,177,242 - - 4,177,242
BB1 5,324,845 - - 5,324,845
Others - - 12,168 12,168
11,537,790 1,031,110 12,168 12,581,068
2019
AAA 2,736,513 1,618,802 - 4,355,315
AA- 1,026,178 - - 1,026,178
A3 1,021,809 - - 1,021,809
A 6,179,486 - - 6,179,486
BB1 4,565,197 - - 4,565,197
Others - - 215,176 215,176
15,529,183 1,618,802 215,176 17,363,161
* Comprise amount due from brokers and dividend receivables.
33
(CONTINUED)
Liquidity risk
Liquidity risk is the risk that the Fund will encounter difficulty in meeting its
financial obligations.
Liquidity risk exists when particular investments are difficult to sell. As such, the
Fund may not be able to sell such illiquid investments at an advantageous time or
price to meet its liquidity requirements. Unit trust funds with principal investment
strategies that involve securities or securities with substantial market and/or credit
risk tend to have the greater exposure to liquidity risk. As part of its risk
management, the Manager will attempt to manage the liquidity of the Fund through
asset allocation and diversification strategies within the portfolio. The Manager will
also conduct constant fundamental research and analysis to forecast future liquidity
of its investments.
The table below summarises the Fund’s financial liabilities into relevant maturity
groupings based on the remaining period from the statement of financial position
date to the contractual maturity date. The amounts in the table are the contractual
undiscounted cash flows.
Between
Less than 1 month
1 month to 1 year
RM RM
2020
Amount due to Manager 34,836 -
Accrued management fee 33,167 -
Amount due to Trustee 1,327 -
Other payables and accruals - 13,401
69,330 13,401
2019
Amount due to Manager 146,067 -
Accrued management fee 41,457 -
Amount due to Trustee 1,658 -
Other payables and accruals - 16,655
189,182 16,655
34
(CONTINUED)
Capital risk
The capital of the Fund is represented by equity consisting of unitholders’ capital of

RM34,469,421 (2019: RM41,137,657) and accumulated losses of RM8,257,727
(2019: RM9,024,874). The amount of equity can change significantly on a daily basis
as the Fund is subject to daily subscriptions and redemptions at the discretion of
unitholders. The Fund’s objective when managing capital is to safeguard the Fund’s
ability to continue as a going concern in order to provide returns for unitholders and
benefits for other stakeholders and to maintain a strong capital base to support the
development of the investment activities of the Fund.
4. FAIR VALUE ESTIMATION
Fair value is defined as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the
measurement date (i.e. an exit price).
The fair value of financial assets and liabilities traded in an active market (such as
publicly traded derivatives and trading securities) are based on quoted market prices
at the close of trading on the financial year end date.
An active market is a market in which transactions for the assets or liabilities take
place with sufficient frequency and volume to provide pricing information on an
ongoing basis.
The fair value of financial assets and liabilities that are not traded in an active market
is determined by using valuation techniques. The Fund uses a variety of methods and
makes assumptions that are based on market conditions existing at each financial
year end date. Valuation techniques used for non-standardised financial instruments
such as options, currency swaps and other over-the-counter derivatives, include the
use of comparable recent transactions, reference to other instruments that are
substantially the same, discounted cash flow analysis, option pricing models and
other valuation techniques commonly used by market participants making the
maximum use of market inputs and relying as little as possible on entity-specific
inputs.
35
4. FAIR VALUE ESTIMATION (CONTINUED)
The fair values are based on the following methodologies and assumptions:
(i) For bank balances and deposits with licensed financial institutions with
maturities less than 1 year, the carrying value is a reasonable estimate of fair
value.
(ii) The carrying value of receivables and payables are assumed to approximate their
fair values due to their short term nature.
Fair value hierarchy
The Fund adopted MFRS 13 “Fair Value Measurement” in respect of disclosures

about the degree of reliability of fair value measurement. This requires the Fund to
classify fair value measurements using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. The fair value hierarchy
has the following levels:
 Level 1: Quoted prices (unadjusted) in active market for identical assets or

liabilities
 Level 2: Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (that is, as prices) or indirectly
(that is, derived from prices)
 Level 3: Inputs for the asset and liability that are not based on observable market
data (that is, unobservable inputs)
36
4. FAIR VALUE ESTIMATION (CONTINUED)
Fair value hierarchy (continued)
The following table analyses within the fair value hierarchy the Fund’s financial
assets at fair value through profit or loss (by class) measured at fair value:
Level 1 Level 2 Level 3 Total

RM RM RM RM
2020
Investments:
- Quoted investments 13,622,957 - - 13,622,957
- Collective investment
scheme 90,400 - - 90,400
- Unquoted fixed income
securities - 11,537,790 - 11,537,790
Total 13,713,357 11,537,790 - 25,251,147
2019
Investments:
- Quoted investments 14,955,459 - - 14,955,459
- Unquoted fixed income
securities - 15,529,183 - 15,529,183
Total 14,955,459 15,529,183 - 30,484,642
Investments in active listed equities, i.e. quoted investments and collective

investment scheme whose values are based on quoted market prices in active markets
are classified within Level 1. The Fund does not adjust the quoted prices for these
instruments. The Fund’s policies on valuation of these financial assets are stated in
Note 2.2.
Financial instruments that trade in markets that are considered to be active but are
valued based on quoted market prices, dealer quotations or alternative pricing sources
supported by observable inputs are classified within Level 2. This includes unquoted
fixed income investments. As Level 2 instruments include positions that are not
traded in active markets and/or are subject to transfer restrictions, valuations may be
adjusted to reflect illiquidity and/or non-transferability, which are generally based on
available market information. The Fund’s policies on valuation of these financial
assets are stated in Note 2.2.
37
5. INVESTMENTS
2020 2019
RM RM
Investments:
- Quoted investments - local 13,155,940 14,473,746
- Quoted investments - foreign 467,017 481,713
- Collective investment schemes - local 90,400 -
- Unquoted fixed income securities - local 11,537,790 15,529,183
25,251,147 30,484,642
2020 2019
RM RM
Net loss on investments comprised:

- Net realised loss on sale of investments (1,445,983) (1,749,271)
- Net unrealised gain/(loss) on changes in fair
values 1,421,787 (270,912)
(24,196) (2,020,183)
Investments as at 31 December 2020 are as follows:
% of Net
Name of Counter Quantity Cost Fair Value Asset Value
RM RM %
QUOTED INVESTMENTS - LOCAL
MALAYSIA
CONSTRUCTION
AME Elite Consortium
Bhd 160,500 263,349 393,225 1.50
Gabungan AQRS Bhd 780,400 858,825 530,672 2.02
Gadang Holdings Bhd 751,000 381,227 334,195 1.28
Kimlun Corporation Bhd 712,443 1,519,881 637,636 2.43
3,023,282 1,895,728 7.23
CONSUMER PRODUCTS &

SERVICES
Formosa Prosonic
Industries BH 575,000 940,922 1,305,250 4.98
Kawan Food Bhd 266,400 511,186 554,112 2.12
38
5. INVESTMENTS (CONTINUED)
Investments as at 31 December 2020 are as follows: (continued)
% of Net
RM RM %
QUOTED INVESTMENTS - LOCAL

(CONTINUED)
MALAYSIA (CONTINUED)
CONSUMER PRODUCTS &
SERVICES (CONTINUED)
Lii Hen Industries Bhd 309,700 878,316 1,232,606 4.70
Perak Transit Bhd 1,745,540 496,415 453,840 1.73
2,826,839 3,545,808 13.53
HEALTH CARE
Pharmaniaga Bhd 138,600 342,749 693,000 2.64
INDUSTRIAL PRODUCTS &

SERVICES
Ann Joo Resources Bhd 576,800 654,403 905,576 3.45
Favelle Favco Bhd 228,100 600,916 499,539 1.91
Kelington Group Bhd 616,700 733,084 1,042,223 3.98
Oka Corporation Bhd 1,104,650 1,015,795 734,592 2.80
Pestech International Bhd 613,500 457,758 573,623 2.19
PIE Industrial Bhd 445,000 495,611 1,076,900 4.11
Wah Seong Corp Bhd 668,700 511,360 531,617 2.03
4,468,927 5,364,070 20.47
PROPERTY
LBS Bina Group Bhd 1,232,098 508,344 517,481 1.97
TECHNOLOGY
JHM Consolidation Bhd 416,900 464,749 796,279 3.04
Kesm Industries Bhd 25,300 325,087 343,574 1.31
789,836 1,139,853 4.35
TOTAL QUOTED
INVESTMENTS - LOCAL 11,959,977 13,155,940 50.19
39
% of Net
RM RM %
COLLECTIVE INVESTMENT
SCHEMES - LOCAL
MALAYSIA
REAL ESTATE INVESTMENT
TRUSTS
UOA Real Estate
Investment Trust 80,000 88,000 90,400 0.35
TOTAL COLLECTIVE
INVESTMENT SCHEME -
LOCAL 88,000 90,400 0.35
QUOTED INVESTMENTS -
FOREIGN
INDONESIA
TRADING/SERVICES
PT Modern Internasional
TBK 32,658,500 5,989,650 467,017 1.78
TOTAL INDONESIA 5,989,650 467,017 1.78
TOTAL QUOTED
INVESTMENTS - FOREIGN 5,989,650 467,017 1.78
40
% of Net
Nominal Asset
Name of Counter Rating Value Cost Fair Value Value
RM RM %
UNQUOTED FIXED INCOME

SECURITIES - LOCAL
5.30% Alpha Circle

Sdn Bhd 23/02/2021 AA- 190,000 191,180 191,734 0.73
5.45% Alpha Circle
Sdn Bhd 23/02/2022 AA- 213,000 214,341 219,096 0.84
5.45% Alpha Circle
Sdn Bhd 19/11/2021 AA- 469,000 471,937 480,256 1.83
5.60% Alpha Circle
Sdn Bhd 18/11/2022 AA- 128,000 128,821 133,556 0.51
5.80% Bank
Muamalat (M) Bhd
15/06/2026 A3 1,000,000 1,003,151 1,011,061 3.86
2.50% MEX I Capital
Bhd (f.k.a Bright
Focus Bhd)
24/01/2030 BB1* 9,650,000 7,337,419 5,324,845 20.31
5.70% Mex II Sdn
Bhd 29/04/2027 BBB** 5,000,000 5,282,732 4,177,242 15.94
TOTAL UNQUOTED FIXED

INCOME SECURITIES -
LOCAL 14,629,581 11,537,790 44.02
TOTAL INVESTMENTS 32,667,208 25,251,147 96.34
41
Investments as at 31 December 2019 are as follows:
% of Net
RM RM %
QUOTED INVESTMENTS
- LOCAL
MALAYSIA
CONSTRUCTION
Gabungan AQRS Bhd 1,092,300 1,413,951 1,288,914 4.01
Gadang Holdings Bhd 700,600 512,850 486,917 1.52
Kimlun Corporation Bhd 712,443 1,519,881 890,554 2.77
3,446,682 2,666,385 8.30
CONSUMER
PRODUCTS
Formosa Prosonic
Industries Bhd 886,000 1,449,837 1,426,460 4.44
Lii Hen Industries Bhd 397,900 1,128,454 1,221,553 3.81
Perak Transit Bhd 2,776,540 789,622 652,487 2.03
3,367,913 3,300,500 10.28
ENERGY
Deleum Bhd 1,090,000 1,190,352 1,046,400 3.26
1,190,352 1,046,400 3.26
42

% of Net
RM RM %
QUOTED INVESTMENTS
- LOCAL (CONTINUED)
MALAYSIA (CONTINUED)
INDUSTRIAL PRODUCTS &
SERVICES
Eonmetall Group Bhd 496,100 391,653 220,764 0.69
Favelle Favco Bhd 364,400 1,007,668 994,812 3.10
HSS Engineers Bhd 822,600 833,468 695,097 2.16
Kelington Group Bhd 616,700 733,084 777,042 2.42
OKA Corporation Bhd 1,204,650 1,107,752 873,371 2.72
Pestech International Bhd 813,500 606,987 1,065,685 3.32
P.I.E Industrial Bhd 445,000 495,611 645,250 2.01
Rohas Tecnic Bhd 552,500 662,188 353,600 1.10
SLP Resources Bhd 1,099,000 535,763 1,274,840 3.97
Wellcall Holdings Bhd 500,000 691,780 560,000 1.74
7,065,954 7,460,461 23.23
TOTAL QUOTED
INVESTMENTS -
LOCAL 15,070,901 14,473,746 45.07
43

% of Net
RM RM %
QUOTED INVESTMENTS
- FOREIGN
INDONESIA
TRADING/SERVICES
PT Modern Internasional
TBK 32,658,500 5,989,650 481,713 1.50
TOTAL INDONESIA 5,989,650 481,713 1.50
TOTAL QUOTED
INVESTMENTS - FOREIGN 5,989,650 481,713 1.50
44

% of Net
Nominal Asset
Name of Counter Rating Value Cost Fair Value Value
RM RM %
UNQUOTED FIXED INCOME

SECURITIES - LOCAL
5.30% Alpha Circle

Sdn Bhd 23/02/2021 AA- 190,000 191,173 193,383 0.60
5.45% Alpha Circle
Sdn Bhd 23/02/2022 AA- 213,000 214,351 218,949 0.68
5.45% Alpha Circle
Sdn Bhd 19/11/2021 AA- 469,000 471,972 481,176 1.50
5.60% Alpha Circle
Sdn Bhd 18/11/2022 AA- 128,000 128,833 132,670 0.41
5.80% Bank
Muamalat (M) Bhd
15/06/2026 A3 1,000,000 1,004,094 1,021,809 3.18
2.50% MEX I Capital
Bhd (f.k.a. Bright
Focus Bhd)
24/01/2030 BB1* 9,650,000 7,143,817 4,565,197 14.23
4.98% GENM Capital
Bhd 31/03/2027 AAA 1,500,000 1,518,868 1,610,968 5.02
5.70% Mex II Sdn
Bhd 29/04/2027 A** 5,000,000 5,315,110 4,890,723 15.23
5.50% Bank
Muamalat Malaysia
Bhd 25/11/2021 A 1,250,000 1,256,779 1,288,763 4.01
4.98% Tenaga
Nasional Bhd
27/08/2038 AAA 1,000,000 1,016,942 1,125,545 3.50
TOTAL UNQUOTED FIXED

INCOME SECURITIES -
LOCAL 18,261,939 15,529,183 48.36
TOTAL INVESTMENTS 39,322,490 30,484,642 94.93
45
* MEX I Capital Bhd (“MEX I Capital” or formerly known as Bright Focus

Bhd) RM1.35 billion Sukuk Musharakah
On 23 April 2020, RAM lifted the Negative Rating Watch on MEX I Capital
and reaffirmed its BB1 rating with a Negative outlook. RAM had earlier
downgraded Bright Focus Berhad’s rating to A1 from AA2 on 16 November
2018 and subsequently to BB1 on 3 June 2019 premised on the severe
impairment in its debt-servicing metrics following unauthorized intercompany
advances amounting to RM97.7 million by Maju Expressway Sdn Bhd
(“MESB”) to Maju Holdings Sdn Bhd (“Maju Holdings”), in addition to a
deterioration in MESB’s projected annual cash flows.
On 24 June 2020, the High Court dismissed the legal action commenced by the
Trustee for the Sukukholders against MESB, Bright Focus Berhad and Maju
Holdings to recover the unauthorized intercompany advances made earlier by
MESB to Maju Holdings, with costs of RM10,000. The Judge found that the
Trustee has no proprietary interest in the intercompany advances from MESB
to Maju Holdings hence, no grounds to compel Maju Holdings to repay
MESB. Pursuant to a Notice of Appeal filed by Messrs. Lee Hishamuddin
Allen & Gledhill (“LHAG”) as legal counsel to the Trustee (acting for and
behalf of the Sukukholders) on 17 July 2020, a hearing of appeal has been
fixed for 24 June 2021. A final injunction was earlier granted by the Court on
14 August 2019 restraining MESB from making any further advances to Maju
Holdings or any other party throughout the remaining tenure of the Sukuk. The
longest Sukuk tranche matures on 23 January 2031.
The proposed restructuring of the Sukuk (“New Sukuk”) to improve the rating
is currently ongoing and targeted to be completed by the first quarter of year
2021. On 6 November 2020, RAM assigned a preliminary A2/Stable rating to
the New Sukuk.
Notwithstanding, the principal and profit payment totalling RM97.9 million

due on 24 January 2021 are secured via funds currently set aside in a reserve
account. MEX I Capital is anticipated to generate sufficient cash flow to meet
the Sukuk’s obligations in 2021.
46
** MEX II Sdn Bhd RM1.30 billion Sukuk Murabahah Programme
On 18 October 2019, MARC had downgraded the rating of MEX II Sdn Bhd’s
(“MEX II”) RM1.3 billion Sukuk Murabahah Programme from AA- to A whilst
maintaining the rating on a negative outlook premised on rising completion risk
and increased uncertainty with regard to completion and associated tolling date
of the 16.8-km Lebuhraya KLIA (MEX Extension) project.
On 22 May 2020, MARC had placed MEX II’s ratings on MARCWatch

Negative due to the lack of construction progress at the Expressway.
On 18 November 2020, MARC further downgraded MEX II’s ratings to BBB

from A and the ratings remained on MARCWatch Negative following concerns
on MEX II’s timely ability to obtain additional financing to meet its debt
obligations in April 2021 and complete a sukuk restructuring exercise. The
procurement of liquidity support and proposed restructuring are currently
ongoing.
Overall construction of the Expressway stood at circa 86%, with targeted

completion by September 2021 under a revised timeline. MEX II received its
second extension of time (“EOT”) to 4 September 2021 from Lembaga
Lebuhraya Malaysia (“LLM”) after the expiry of the first EOT on 4 July 2020.
MEX II fulfilled its obligation on the Sukuk with a full and timely profit
payment of circa RM39 million on 30 October 2020 from monies previously
ring-fenced for the sole benefit of Sukukholders in a reserve account.
47
6. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise:
2020 2019
RM RM
Bank balances 48,224 66,546

Deposits with licensed financial institutions 982,886 1,552,256
1,031,110 1,618,802
7. UNITS IN CIRCULATION
2020 2019
Units Units
At the beginning of the financial year 121,144,072 163,142,072

Creation of units arising from applications
during the financial year 95,000 205,000
Cancellation of units during the financial year (26,715,000) (42,203,000)
At the end of the financial year 94,524,072 121,144,072
8. MANAGEMENT FEE
In accordance with the Master Prospectus, the management fee provided in the
financial statements is 1.50% (2019: 1.50%) per annum based on the net asset value
of the Fund, calculated on a daily basis for the financial year.
9. TRUSTEE’S FEE
In accordance with the Master Prospectus, the Trustee’s fee provided in the financial
statements is 0.06% (2019: 0.06%) per annum based on the net asset value of the
Fund, calculated on a daily basis for the financial year.
48
10. TAXATION
(a) (a) Tax charge for the financial year
2020 2019
RM RM
Under provision of tax in prior year - 18,234

Withholding tax - 6,406
Tax expense - 24,640
(b) Numerical reconciliation of income tax expense
The numerical reconciliation between the net income/(loss) before taxation

multiplied by the Malaysian statutory income tax rate and the tax expense of the
Fund is as follows:
2020 2019
RM RM
Net income/(loss) before taxation 767,147 (943,672)
Tax calculated at a statutory income tax rate of 24% 184,115 (226,481)

Tax effects of:
- (Income not subject to tax)/loss not deductible for
tax purposes/ (296,470) 60,714
- Expenses not deductible for tax purposes 14,845 19,712
- Restriction on tax deductible expenses
for unit trust funds 97,510 146,055
Under provision of tax in prior year - 18,234
Withholding tax - 6,406
Tax expense - 24,640
11. MANAGEMENT EXPENSE RATIO (“MER”)
2020 2019
% %
MER 1.61 1.61
The MER ratio is calculated based on total expenses excluding investment

transaction related costs of the Fund to the average net asset value of the Fund
calculated on a daily basis.
49
12. PORTFOLIO TURNOVER RATIO (“PTR”)
2020 2019
PTR (times) 0.40 0.33
The PTR ratio is calculated based on average of acquisition and disposals of the Fund
for the financial year to the average net asset value of the Fund calculated on a daily
basis.
13. UNITS HELD BY THE MANAGER AND PARTIES RELATED TO THE

MANAGER
The number of units held by the Manager and related party is as follows:
2020 2019
Units RM Units RM
The Manager 5,086 1,410 5,622 1,490
RHB Capital Nominees
(Tempatan) Sdn Bhd 2,568,967 712,375 3,353,757 889,081
2,574,053 713,785 3,359,379 890,571
The units are held beneficially by the Manager for booking purposes. The Manager is
of the opinion that all transactions with the related parties have been entered into in
the normal course of business at agreed terms between the related parties.
The units held by RHB Capital Nominees (Tempatan) Sdn Bhd, a wholly-owned
subsidiary of RHB Bank Berhad, are under nominee structure.
Other than the above, there were no units held by Directors or parties related to the
Manager.
The holding company and the ultimate holding company of the Manager is RHB
Investment Bank Berhad and RHB Bank Berhad respectively. The Manager treats
RHB Bank Berhad group of companies including RHB Investment Bank Berhad and
its subsidiaries as related parties.
50
14. TRANSACTIONS BY THE FUND
Details of transactions by the Fund for the financial year ended 31 December 2020
are as follows:
Percentage
Percentage of total
Broker/ Value of of total Brokerage brokerage
financial institution trades trades fees fees
RM % RM %
RHB Investment
Bank Bhd* 6,740,913 33.99 20,399 57.53
CIMB Bank Bhd 4,282,400 21.59 - -
Hong Leong Bank
Bhd 1,615,500 8.15 - -
Maybank Bhd 1,279,625 6.45 - -
Maybank Investment
Bank Bhd 1,141,258 5.75 3,424 9.66
CGS-CIMB
Securities Sdn Bhd 1,089,818 5.50 3,270 9.22
Macquarie Capital
Securities (M) Sdn
Bhd 806,705 4.07 1,613 4.55
CLSA Securities
Malaysia Sdn Bhd 768,213 3.87 1,536 4.33
KAF Equities Sdn
Bhd 594,108 3.00 1,782 5.03
UOB Kay Hian
Securities (M) Sdn
Bhd 525,033 2.65 1,050 2.96
Others 987,220 4.98 2,383 6.72
19,830,793 100.00 35,457 100.00
51
14. TRANSACTIONS BY THE FUND (CONTINUED)
Details of transactions by the Fund for the financial year ended 31 December 2019
are as follows:
Percentage
Percentage of total
Broker/ Value of of total Brokerage brokerage
financial institution trades trades fees fees
RM % RM %
RHB Investment
Bank Bhd* 8,929,819 37.61 23,827 53.83
CIMB Islamic Bank
Berhad 4,001,100 16.85 - -
CIMB Bank Bhd 3,058,200 12.88 - -
RHB Securities
Hong Kong Ltd* 2,261,877 9.53 4,774 10.78
Maybank Investment
Bank Bhd 1,529,013 6.44 4,587 10.36
CIMB Investment
Bank Bhd 1,290,210 5.43 3,871 8.75
CLSA Securities
Malaysia Sdn Bhd 822,687 3.46 1,645 3.72
Affin Hwang
Investment Bank
Bhd 734,713 3.09 2,204 4.98
MIDF Amanah
Investment Bank
Bhd 667,521 2.81 2,003 4.53
CGS-CIMB
Securities Sdn Bhd 450,757 1.90 1,352 3.05
23,745,897 100.00 44,263 100.00
* Included in transactions by the Fund are trades with the holding company of the
Manager, RHB Investment Bank Bhd and related company of the Manager, RHB
Securities Hong Kong Ltd.
The Manager is of the opinion that all transactions with the related company have
been entered into in the normal course of business at agreed terms between the
related parties.
52
15. FINANCIAL INSTRUMENTS BY CATEGORIES
2020 2019
Financial assets RM RM
Financial assets at fair value through
profit or loss (‘FVTPL’)
• Quoted investments 13,622,957 14,955,459
• Collective investment scheme 90,400 -
• Unquoted fixed income securities 11,537,790 15,529,183
25,251,147 30,484,642
Financial assets at amortised cost
• Deposit with licensed financial
institutions 982,886 1,552,256
• Bank balances 48,224 66,546
• Amount due from brokers - 182,307
• Dividend receivables 12,168 32,869
1,043,278 1,833,978
Financial liabilities
Financial liabilities at amortised cost
• Amount due to Manager 34,836 146,067
• Accrued management fee 33,167 41,457
• Amount due to Trustee 1,327 1,658
• Other payables and accruals 13,401 16,655
82,731 205,837
16. SIGNIFICANT EVENT DURING THE FINANCIAL YEAR
The worsening of the macro-economic outlook as a result of COVID-19, both

domestically and globally, has impacted the Fund’s performance during the financial
year.
The Manager is monitoring the situation closely and will be managing the portfolio
to achieve the Fund’s objective.
53
STATEMENT BY MANAGER
We, Dato’ Darawati Hussain and Chin Yoong Kheong, two of the Directors of RHB
Asset Management Sdn Bhd, do hereby state that in the opinion of the Directors of
the Manager, the accompanying statement of financial position, statement of income
and expenses, statement of changes in net asset value, statement of cash flows and
the accompanying notes, 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 the Fund as at 31 December 2020 and
of its financial performance and cash flows for the financial year then ended and
comply with the provisions of the Deeds.
On behalf of the Manager
Dato’ Darawati Hussain Chin Yoong Kheong

Director Director
24 February 2021
54
TRUSTEE’S REPORT TO THE UNITHOLDERS OF
We have acted as Trustee of RHB Growth and Income Focus Trust (“the Fund”) for the
financial year ended 31 December 2020. To the best of our knowledge, RHB Asset
Management Sdn Bhd (“the Management Company”), has operated and managed the
Fund in accordance with the following: -
a) limitations imposed on the investment powers of the Management Company and

the Trustee under the Deeds, the Securities Commission’s Guidelines (“SC
Guidelines”) on Unit Trust Funds, the Capital Markets and Services Act 2007 and
other applicable laws;
b) valuation/pricing is carried out in accordance with the Deeds and any regulatory
requirements; and
c) creation and cancellation of units are carried out in accordance with the Deeds
and any regulatory requirements.
Notwithstanding the above, the value of investment in the debenture of MEX II Sdn
Bhd and MEX I Capital Bhd (Formerly known as Bright Focus Bhd) amounting to
15.94% and 20.31% of Fund’s NAV respectively (as at 31 December 2020) and the
total value of investment in debentures of MEX I Capital Bhd (Formerly known as
Bright Focus Bhd) and MEX II Sdn Bhd amounting to 36.25% have inadvertently
exceeded the investment spread limits as prescribed in paragraph (5) and (11)
respectively under Schedule B* of SC Guidelines on Unit Trust Funds. The
Management Company will continue to monitor the position until rectified.
For HSBC (Malaysia) Trustee Berhad
Tan Bee Nie

Senior Manager, Investment Compliance Monitoring
Kuala Lumpur
24 February 2021
*Paragraph (5) The value of a fund’s investments in transferable securities and money market instruments issued by
any single issuer must not exceed 15% of the fund’s NAV and (11) The value of a fund's investments in transferable
securities and money market instruments issued by any group of companies must not exceed 20% of the fund's NAV.
55
INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS OF
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Our opinion
In our opinion, the financial statements of RHB Growth and Income Focus Trust
(“the Fund”) give a true and fair view of the financial position of the Fund as at 31
December 2020 and of its financial performance and its cash flows for the financial
year then ended in accordance with Malaysian Financial Reporting Standards and
International Financial Reporting Standards.
What we have audited
We have audited the financial statements of the Fund, which comprise the statement
of financial position as at 31 December 2020, and the statement of income and
expenses, statement of changes in net asset value and statement of cash flows for the
financial year then ended, and notes to the financial statements, including a summary
of significant accounting policies, as set out on pages 15 to 53.
Basis for opinion
We conducted our audit in accordance with approved standards on auditing in

Malaysia and International Standards on Auditing. Our responsibilities under those
standards are further described in the “Auditors’ responsibilities for the audit of the
financial statements” section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Independence and other ethical responsibilities
We are independent of the Fund in accordance with the By-Laws (on Professional
Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”)
and the International Ethics Standards Board for Accountants’ International Code of
Ethics for Professional Accountants (including International Independence Standards)
(“IESBA Code”), and we have fulfilled our other ethical responsibilities in
accordance with the By-Laws and the IESBA Code.
56
(CONTINUED)
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)
Information other than the financial statements and auditors’ report thereon
The Manager of the Fund is responsible for the other information. The other
information comprises Manager’s Report, but does not include the financial
statements of the Fund and our auditors’ report thereon.
Our opinion on the financial statements of the Fund does not cover the other
information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Fund, our
responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the financial statements of the Fund
or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of the Manager for the financial statements
The Manager of the Fund is responsible for the preparation of the financial statements
of the Fund that give a true and fair view in accordance with Malaysian Financial
Reporting Standards and International Financial Reporting Standards. The Manager
is also responsible for such internal control as the Manager determines is necessary to
enable the preparation of financial statements of the Fund that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements of the Fund, the Manager is responsible for
assessing the Fund’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting
unless the Manager either intends to liquidate the Fund or to terminate the Fund, or
has no realistic alternative but to do so.
57
(CONTINUED)
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial
statements of the Fund as a whole are free from material misstatement, whether due
to fraud or error, and to issue an auditors’ report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with approved standards on auditing in Malaysia and
International Standards on Auditing will always detect a material misstatement when
it exists. Misstatements can arise from 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.
As part of an audit in accordance with approved standards on auditing in Malaysia

and International Standards on Auditing, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
(a) Identify and assess the risks of material misstatement of the financial
statements of the Fund, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to 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, forgery, intentional
omissions, misrepresentations, or the override of internal control.
(b) Obtain an understanding of internal control relevant to the audit in order to

design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the Fund’s
internal control.
(c) Evaluate the appropriateness of accounting policies used and the

reasonableness of accounting estimates and related disclosures made by the
Manager.
58
(CONTINUED)
Auditors’ responsibilities for the audit of the financial statements (continued)
(d) Conclude on the appropriateness of the Manager’s use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast
significant doubt on the Fund’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in
our auditors’ report to the related disclosures in the financial statements of the
Fund or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our
auditors’ report. However, future events or conditions may cause the Fund to
cease to continue as a going concern.
(e) Evaluate the overall presentation, structure and content of the financial
statements of the Fund, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with the Manager 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.
OTHER MATTERS
This report is made solely to the unitholders of the Fund and for no other purpose.
We do not assume responsibility to any other person for the content of this report.
PRICEWATERHOUSECOOPERS PLT
(LLP0014401-LCA & AF 1146)
Chartered Accountants
Kuala Lumpur
24 February 2021
59
CORPORATE INFORMATION
MANAGER
RHB Asset Management Sdn Bhd
REGISTERED OFFICE
Level 10, Tower One, RHB Centre, Jalan Tun Razak, 50400 Kuala Lumpur
PRINCIPAL AND BUSINESS OFFICE
Level 8, Tower Two & Three, RHB Centre, Jalan Tun Razak, 50400 Kuala Lumpur
E-mail Address : rhbam@rhbgroup.com
Tel: 03 - 9205 8000
Fax: 03 - 9205 8100
Website : www.rhbgroup.com
BOARD OF DIRECTORS
Mr Yap Chee Meng (Independent Non-Executive Chairman)
Mr Chin Yoong Kheong (Senior Independent Non-Executive Director)
Dr. Ngo Get Ping (Independent Non-Executive Director)
Ms Ong Yin Suen (Managing Director)
YBhg Dato’ Darawati Hussain (Independent Non-Executive Director)
YBhg Datuk Seri Dr Govindan A/L Kunchamboo (Independent Non-Executive
Director) (Appointed with effect from 15 October 2020)
INVESTMENT COMMITTEE MEMBERS

Mr Yap Chee Meng (Independent Chairman)
YBhg Dato’ Darawati Hussain
Puan Sharifatu Laila Syed Ali
CHIEF EXECUTIVE OFFICER
Ms Ong Yin Suen
SECRETARY
Encik Azman Shah Md Yaman (LS No. 0006901)
60
BRANCH OFFICE
Kuala Lumpur Office B-9-6, Megan Avenue 1
No. 189, Jalan Tun Razak
50400 Kuala Lumpur
Tel: 03-2171 2755/ 03-2166 7011
Fax: 03-2770 0022
Shah Alam Office B-3-1, 1st Floor

Jalan Serai Wangi G16/G, Alam Avenue
Persiaran Selangor, Section 16
40200 Shah Alam
Tel: 03-5523 1909 Fax: 03-5524 3471
Sri Petaling Office Level 1 & 2, No 53 Jalan Radin Tengah

Bandar Baru Seri Petaling
57000 Kuala Lumpur
Tel: 03-9054 2470 Fax: 03-9054 0934
Batu Pahat Office 53, 53-A and 53-B Jalan Sultanah

83000 Batu Pahat, Johor
Tel: 07-438 0271/ 07-438 0988
Fax: 07-438 0277
Ipoh Office No.7A, Persiaran Greentown 9

Pusat Perdagangan Greentown
30450 Ipoh, Perak
Tel: 05-242 4311 Fax: 05-242 4312
Johor Bahru Office No 34 Jalan Kebun Teh 1

Pusat Perdagangan Kebun Teh
80250 Johor Bahru, Johor
Tel: 07-221 0129 Fax: 07-221 0291
2nd Floor, 21 & 23

Jalan Molek 1/30, Taman Molek
81100 Johor Bahru, Johor
Tel: 07-358 3587 Fax: 07-358 3581
Kuantan Office 1st Floor, Lot 10, Jalan Putra Square 1

Putra Square
25300 Kuantan, Pahang
Tel: 09-517 3611/ 09-517 3612/ 09-531 6213
Fax: 09-517 3615
61
Kuching Office Lot 133, Section 20, Sublot 2 & 3
1st Floor, Jalan Tun Ahmad Zaidi Adruce
93200 Kuching, Sarawak
Tel: 082-550 838 Fax: 082-550 508
Yung Kong Abell, Units 1-10

2nd Floor Lot 365
Section 50 Jalan Abell
93100 Kuching, Sarawak
Tel: 082-245 611 Fax: 082-230 326
Kota Bharu Office Ground Floor, No 3486-G

Jalan Sultan Ibrahim
15050 Kota Bharu, Kelantan
Tel: 09-740 6891 Fax: 09-740 6890
Kota Kinabalu Office Lot No. C-02-04, 2nd Floor

Block C, Warisan Square
Jalan Tun Fuad Stephens
88000 Kota Kinabalu
Sabah
Tel: 088-528 686/ 088-528 692
Fax: 088-528 685
Melaka Office 581B, Taman Melaka Raya

75000 Melaka
Tel: 06-284 4211/ 06-281 4110
Fax: 06-292 2212
Miri Office Lot 1268 & 1269, Second Floor

Centre Point Commercial Centre
Jalan Melayu
98000 Miri, Sarawak
Tel: 085-422 788 Fax: 085- 415 243
Penang Office 3rd Floor, 44 Lebuh Pantai

10300 Georgetown, Penang
Tel: 04-264 5639 Fax: 04-264 5640
Prai Office No 38, First Floor

Jalan Todak 2
Seberang Jaya
13700 Perai, Penang
Tel: 04-386 6670 Fax: 04-386 6528
62
TRUSTEE HSBC (Malaysia) Trustee Berhad
BANKER RHB Bank Berhad
AUDITORS PricewaterhouseCoopers PLT
TAX ADVISER PricewaterhouseCoopers Taxation Services Sdn Bhd
DISTRIBUTORS RHB Asset Management Sdn Bhd

RHB Bank Bhd
RHB Investment Bank Bhd
Affin Bank Bhd
AmBank (M) Bhd
Apex Investment Services Bhd
Areca Capital Sdn Bhd
CIMB Investment Bank Bhd
CIMB Wealth Advisor
Citibank Bhd
CUTA – Genexus Advisory Sdn Bhd
Hong Leong Bank Bhd
iFast Capital Sdn Bhd
Kenanga Investors Bhd
Manulife Asset Management (Malaysia) Sdn Bhd
OCBC Bank (Malaysia) Bhd
Phillip Mutual Bhd
Standard Chartered Bank Malaysia Bhd
United Overseas Bank (Malaysia) Bhd
63
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RHB Growth and Income Focus Trust - A

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RHB Growth and Income Focus Trust - A

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ANNUAL REPORT 2020

For the financial year ended 31 December 2020

Name, Category and Type

Fund Name - RHB Growth and Income Focus Trust

Fund Category - Mixed asset fund

Fund Type - High growth and income fund

Investment Objective, Policy and Strategy

Objective of the Fund

* Note: “long term” in this context refers to a period of between 5 – 7 years.

The asset allocation of the Fund will be as follows:-

30% - 70% of - Investments in securities of companies with market

30% - 70% of - Investments in fixed income securities, money market

The performance of the Fund is benchmarked against “GIFT Index” which is a

ECONOMIC REVIEW & OUTLOOK

EQUITY MARKET OUTLOOK AND STRATEGY

FIXED INCOME MARKET OUTLOOK AND STRATEGY

Therefore, we expect local government space to stay supported on widening yield

* Source: Lipper Investment Management (“Lipper IM”), 10 January 2021

Annual Total Returns

GIFT Index 19.62 5.33 (14.77) 12.19 (1.96)

Average Annual Returns

GIFT Index 19.56 2.40 3.38 6.39

Source: Lipper IM, 10 January 2021

The calculation of the above returns is based on computation methods of Lipper.

The abovementioned performance computations have been adjusted to

Distribution and Unit Split

* The figures quoted are ex-distribution

The asset allocations of the Fund as at reporting date were as follows:

Account Holders No. Of Units Held*

* Excluding Manager’s stock

Note 2020 2019

NET ASSET VALUE 26,211,694 32,112,783

UNITS IN CIRCULATION (UNITS) 7 94,524,072 121,144,072

NET ASSET VALUE PER UNIT (RM) 0.2773 0.2651

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

Note 2020 2019

Net income/(loss) before taxation 767,147 (943,672)

Net income/(loss) after taxation is made up

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

Unitholders’ Accumulated Total net

Balance as at 1 January 2019 52,656,390 (8,056,562) 44,599,828

Balance as at 1 January 2020 41,137,657 (9,024,874) 32,112,783

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

Note 2020 2019

CASH FLOWS FROM FINANCING

Net decrease in cash and cash equivalents (587,666) (4,753,866)

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

1. THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES

The principal activity of the Fund is to invest in Permitted Investments as defined

All investments will be subject to the Securities Commission’s (“SC”) Malaysia

The Manager, a company incorporated in Malaysia, and is a wholly-owned

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation of the financial statements

 The Conceptual Framework for Financial Reporting (“Framework”)

2.1 Basis of preparation of the financial statements (continued)

 The Conceptual Framework for Financial Reporting (“Framework”)

Key changes include:

No changes are made to any of the current accounting standards.

 Amendments to MFRS 101 and MFRS 108 ‘Definition of Material’

2.1 Basis of preparation of the financial statements (continued)

 The Conceptual Framework for Financial Reporting (“Framework”)

The revised Framework and adoption of the amendments to published standards

(b) A number of new standards, amendments to standards and interpretations are