Contents

Fund Information 2

Fund Performance 2

Statement Of Distribution And Total Return 7

Manager’s Report 8

Trustee’s Report 13

Statement By Manager 14

Independent Auditors’ Report 15

Statement Of Assets And Liabilities 18

Statement Of Income And Expenditure 19

Statement Of Changes In Net Asset Value 20

Statement Of Cash Flows 21

Notes To The Financial Statements 22

Corporate Information 40

Network Of Public Mutual Branch And Agency Offices 42

Public Dividend Select Fund • 1

Fund Information Fund Performance
For the Financial Year Ended 31 May 2022

Fund Name Notes:

Public Dividend Select Fund (PDSF) 1. Total return of the Fund is derived by this formulae:

Fund Category
Equity
( End of Period FYCurrent Year NAV per unit
End of Period FYPrevious Year NAV per unit )
(Adjusted for unit split and distribution paid out for the period)
-1

Fund Investment Objective The above total return of the Fund was sourced from Lipper.
To provide steady recurring income by investing in a portfolio of stocks
2. Average total return is derived by this formulae:
which offer or have the potential to offer attractive dividend yields*.
Total Return
* Stocks which offer attractive dividend yields refer to stocks with
consistency in rewarding shareholders via dividend payouts. Number of Years Under Review

Fund Performance Benchmark Other Performance Data for the Past Three Financial Years
The benchmarks of the Fund and their respective percentages are 90% Ended 31 May
FTSE Bursa Malaysia Top 100 Index (FBM 100) and 10% 3-Month Kuala
Lumpur Interbank Offered Rate (KLIBOR). 2022 2021 2020
Unit Prices (MYR)*
The PDSF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited
(“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Highest NAV per unit for the year 0.2677 0.2636 0.2595
Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any Lowest NAV per unit for the year 0.2356 0.2265 0.1987
warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained
from the use of the FTSE BURSA MALAYSIA TOP 100 INDEX (“the Index”), and/or the figure at
which the said Index stands at any particular time on any particular day or otherwise. The Index is Net Asset Value (NAV) and Units in
compiled and calculated by FTSE. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall Circulation (UIC) as at the End of
be liable (whether in negligence or otherwise) to any person for any error in the Index and neither
FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any
the Year
error therein. Total NAV (MYR’000) 1,036,422 1,157,923 1,216,677
“FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. UIC (in ’000) 4,234,075 4,547,795 5,302,507
“BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. NAV per unit (MYR) 0.2448 0.2546 0.2295

Fund Distribution Policy Total Return for the Year (%) -1.73 12.94 -3.86
Capital growth (%) -3.48 11.13 -5.94
Semi-annual Income (%) 1.81 1.63 2.21
Fund Performance Total Expense Ratio (%) 1.56 1.55 1.56
Portfolio Turnover Ratio (time) 0.23 0.42 0.22
Average Total Return for the Following Years Ended
31 May 2022 * All prices quoted are ex-distribution.

Notes: Total Expense Ratio is calculated by taking the total expenses expressed as an annual
Average Total percentage of the Fund’s average net asset value.
Return of PDSF (%)
Portfolio Turnover Ratio is calculated by taking the average of the total acquisitions and
1 Year -1.73 disposals of the investments in the Fund for the year over the average net asset value
3 Years 2.23 of the Fund calculated on a daily basis.
5 Years 0.31 The Portfolio Turnover Ratio for the financial year 2022 dropped to 0.23 times from 0.42
times in the previous financial year on account of lower level of rebalancing activities
Annual Total Return for the Financial Years Ended 31 May performed by the Fund during the year.

Year 2022 2021 2020 2019 2018

PDSF (%) -1.73 12.94 -3.86 -4.97 0.16
The calculation of the above returns is based on computation methods of Lipper.

2 • Public Dividend Select Fund Public Dividend Select Fund • 3

Fund Performance Fund Performance
For the Financial Year Ended 31 May 2022 For the Financial Year Ended 31 May 2022

Distribution and Unit Split Asset Allocation for the Past Three Financial Years (cont’d)
Financial year 2022 2021 2020 As at 31 May
Date of distribution 30.11.21 31.5.22 30.11.20 31.5.21 29.11.19 29.5.20 (Percent of NAV)
Interim Final Interim Final Interim Final
2022 2021 2020
Distribution per unit % % %
Gross (sen) 0.30 0.25 0.30 0.15 0.30 0.70 Outside Malaysia
Net (sen) 0.30 0.25 0.30 0.15 0.30 0.70 France
Unit split - - - - - - Consumer, Cyclical - - 1.3
Hong Kong
Impact on NAV Arising from Distribution (Interim & Final) for Communications 2.0 3.1 -
the Financial Years Consumer, Cyclical - - 0.8
2022 2021 2020 Financial - - 0.2
Interim Final Interim Final Interim Final 2.0 3.1 1.0
Sen Sen Sen Sen Sen Sen
per unit per unit per unit per unit per unit per unit Japan
Consumer, Cyclical 0.8 - -
NAV before
distribution 25.87 24.73 24.43 25.61 24.82 23.65 Korea
Less: Net distribution (0.30) (0.25) (0.30) (0.15) (0.30) (0.70) Communications 0.9 0.9 -
Technology 0.9 0.8 0.7
NAV after distribution 25.57 24.48 24.13 25.46 24.52 22.95
1.8 1.7 0.7
Past performance is not necessarily indicative of future performance and unit
Singapore
prices and investment returns may go down, as well as up.
Financial 1.3 - 0.4
Asset Allocation for the Past Three Financial Years Taiwan
Industrial - - 2.1
As at 31 May
Technology 1.2 0.7 -
(Percent of NAV)
2022 2021 2020 1.2 0.7 2.1
% % % United States
EQUITY SECURITIES Communications - 0.2 0.6
Quoted Consumer, Cyclical - 1.6 -
Malaysia Consumer, Non-cyclical 0.7 - -
Ordinary Shares Technology 3.5 6.7 3.8
Basic Materials 6.2 3.7 1.0
Communications 4.8 7.3 7.4 4.2 8.5 4.4
Consumer, Cyclical 7.3 6.8 5.1
TOTAL QUOTED EQUITY
Consumer, Non-cyclical 9.9 6.9 16.7
SECURITIES 86.1 89.6 85.4
Diversified 3.4 2.9 2.4
Energy 1.8 1.8 3.8 COLLECTIVE INVESTMENT FUNDS
Financial 27.0 26.6 25.6 Quoted
Industrial 5.9 10.6 7.1 Malaysia
Technology 2.4 3.0 0.7 Financial 4.9 4.5 5.0
Utilities 6.1 6.0 5.1
TOTAL QUOTED COLLECTIVE
74.8 75.6 74.9 INVESTMENT FUNDS 4.9 4.5 5.0
Preference Shares
Financial - - 0.6

4 • Public Dividend Select Fund Public Dividend Select Fund • 5

Fund Performance Statement Of Distribution And Total Return
For the Financial Year Ended 31 May 2022 For the Financial Year Ended 31 May 2022

Asset Allocation for the Past Three Financial Years (cont’d) Gross Net
Distributions Distribution Distribution
As at 31 May ƒ--------- Sen per unit ---------„
(Percent of NAV)
Interim, November 2021 0.30 0.30
2022 2021 2020
Final, May 2022 0.25 0.25
% % %
REDEEMABLE CONVERTIBLE Total Distributions 0.55 0.55
UNSECURED LOAN STOCKS
Quoted
Total Return of the Fund -1.73%
Malaysia
Redeemable Convertible
Unsecured Loan Stocks 0.1 0.1 0.1 Effects of Distribution on NAV per unit before and after
Distribution:
TOTAL QUOTED REDEEMABLE
CONVERTIBLE UNSECURED NAV NAV
LOAN STOCKS 0.1 0.1 0.1 Before After
Distributions Distribution Distribution
DEPOSITS WITH FINANCIAL
ƒ-------- MYR per unit --------„
INSTITUTIONS 7.7 3.8 8.2
Interim, November 2021 0.2587 0.2557
OTHER ASSETS & LIABILITIES 1.2 2.0 1.3 Final, May 2022 0.2473 0.2448

6 • Public Dividend Select Fund Public Dividend Select Fund • 7

Manager’s Report Manager’s Report

Overview Change in Portfolio Exposures from 31-May-21 to 31-May-22

This Annual Report covers the financial year from 1 June 2021 to 31-May-21 31-May-22 Change
31 May 2022.
Equity and equity-related securities 93.7% 90.2% -3.5%
Public Dividend Select Fund (PDSF or the Fund) aims to provide steady Money market 6.3% 9.8% +3.5%
recurring income by investing in a portfolio of stocks which offer or have the
potential to offer attractive dividend yields. Returns Breakdown by Asset Class
For the financial year under review, the Fund registered a return of -1.73% Market /
as compared to its Benchmark’s return of -2.50%. The Fund’s equity Returns On Benchmark Benchmark Average Attributed
portfolio registered a return of -0.20% while its money market portfolio Investments Returns Index Used Exposure Returns
registered a return of +1.79% during the financial year under review. A Equity and
detailed performance attribution analysis is provided in the sections below. equity-
related
For the five financial years ended 31 May 2022, the Fund generated a total
securities -0.20% -3.04% FBM 100 92.93% -0.19%
return of +1.56% and outperformed its Benchmark’s return of -8.47% over
Money Overnight
the same period. The Fund has also provided distributions of income for
market 1.79% 1.76% Rate 7.07% 0.13%
each of its respective financial years.
less:
Expenses -1.67%
Performance of PDSF
from 31 May 2017 to 31 May 2022 Total Return
20% for the Year -1.73%
PDSF BENCHMARK
FBM 100 = FTSE Bursa Malaysia Top 100 Index
10%
Overnight Rate = Bank Negara Weighted Average Overnight Interbank Rate
Returns from Start of Period

0%
Equity Portfolio Review
-10%
For the financial year under review, the Fund’s equity portfolio registered a
return of -0.20% as compared to the equity Benchmark’s return of -3.04%.
-20%
The Fund’s equity portfolio registered a smaller decline as compared to the
-30%
equity Benchmark as its selected holdings within the Financial and Basic
Materials sectors outperformed the broader market during the financial year
-40%
under review.
May-17 May-18 May-19 May-20 May-21 May-22
The Fund commenced the financial year under review with an equity
exposure of 93.7% and ended the financial year under review with an
The Fund’s Benchmark is a composite index of 90% FTSE Bursa Malaysia equity exposure of 90.2% as the Fund continued to capitalise on investment
Top 100 Index (FBM 100) and 10% 3-Month Kuala Lumpur Interbank opportunities in the domestic and foreign markets. Based on an average
Offered Rate (KLIBOR). equity exposure of 92.93%, the Fund’s equity portfolio is deemed to have
registered a return of -0.19% to the Fund as a whole for the financial year
Income Distribution and Impact on NAV Arising from under review. A full review of the performance of the equity markets is
Distribution tabled in the following sections.
The total cumulative gross distribution of 0.55 sen per unit (net distribution
Sector Allocation
of 0.55 sen per unit) for the financial year ended 31 May 2022 had the
effect of reducing the Net Asset Value (NAV) of the Fund after distribution. The top 5 sectors in Malaysia invested by the Fund are Financial, Consumer
For example, the gross distribution of 0.25 sen per unit (net distribution of (Non-cyclical), Consumer (Cyclical), Basic Materials and Utilities.
0.25 sen per unit) declared for the month of May 2022 has reduced the NAV
per unit of the Fund to RM0.2448 from RM0.2473 after distribution.

8 • Public Dividend Select Fund Public Dividend Select Fund • 9

Manager’s Report
Stock Market Review
Commencing the financial year under review at 11,198.59 points,
the FBM 100 retraced in June and July 2021 amid concerns over the
country’s economic recovery following the re-imposition of nationwide
lockdown measures in light of a resurgence of Covid-19 infections. The
index subsequently rose in August 2021 on improved investor sentiment
following positive corporate earnings, higher commodity prices as well as a
relaxation of lockdown measures.
However, concerns over major regulatory changes by the Chinese
government as well as the impact of the impending tapering of the U.S.
Federal Reserve’s (Fed) asset purchases led the domestic and global
markets lower in September 2021. The FBM 100 subsequently rebounded
in October 2021 on optimism over progress in the country’s vaccination
rate as well as the easing of movement restrictions, before declining in
November 2021 amid profit-taking activities following the Budget 2022
announcement which included a proposed one-off prosperity tax on high-
income corporations.
The FBM 100 rebounded from December 2021 to mid-January 2022
amid buying interest in selected banking and basic materials stocks, but
trended lower in the second half of January 2022 on concerns over the
Fed’s potential acceleration in the tightening of its monetary policy. Led by
strength in selected banking, plantation and basic materials stocks amid
expectations for higher interest rates as well as surging prices for palm oil
and other commodities, the index rose in February 2022 before easing in
early March 2022 amid the escalation of the Russia-Ukraine conflict and
profit-taking activities in the plantation sector.
The FBM 100 subsequently rose towards the end of March 2022 in tandem
with the rebound in the regional markets, and further strengthened in April
2022 on the back of gains in the plantation sector as well as optimism
over the re-opening of Malaysia’s international borders on 1 April 2022.
However, the index retraced in May 2022 in tandem with the regional
markets amid concerns over the potential adverse impact of monetary
tightening measures by major central banks on global economic growth.
The FBM 100 closed at 10,858.51 points to register a decline of 3.04% for
the financial year under review.
Economic Review
Malaysia’s real gross domestic product (GDP) growth accelerated to 5.0%
in 1Q 2022 from 3.1% in 2021, mainly attributable to improved consumer
and investment spending. On the supply side, growth in the services sector
rose to 6.5% in 1Q 2022 from 1.9% in 2021. Meanwhile, growth in the
manufacturing sector moderated to 6.6% from 9.5% over the same period.
Malaysia’s inflation rate eased to 2.2% in the first four months of 2022 from
2.5% in 2021 amid a moderation in transportation costs.
10 • Public Dividend Select Fund
Manager’s Report
Malaysia’s export growth moderated to 21.8% in the first four months of
2022 compared to 26.0% in 2021 amid slower exports of manufactured
goods including petroleum and chemical products. Meanwhile, import
growth firmed to 24.3% from 23.3% over the same period on higher imports
of intermediate and consumption goods. The country’s cumulative trade
surplus widened to RM88.6 billion in the first four months of 2022 from
RM79.0 billion in the corresponding period of the prior year. In a move to
normalise interest rates in line with the recovery of the domestic economy,
Bank Negara Malaysia (BNM) increased its Overnight Policy Rate (OPR)
by 25 basis points (bps) to 2.00% on 11 May 2022 from a record low of
1.75%.
On the global monetary policy front, the Fed’s reduction of its monthly
bond purchase programme commenced in November 2021 and ended in
March 2022. To contain inflationary pressures, the Fed raised the Federal
funds rate (FFR) by 50 bps at the Federal Open Market Committee (FOMC)
meeting on 3-4 May 2022, bringing the Fed funds target range to 0.75%-
1.00% from 0.25%-0.50%. The Fed also announced that its balance sheet
reduction (run-off) exercise will start in June 2022.
Outlook and Investment Strategy
Global and selected regional markets generally traded lower in the first five
months of 2022 amid concerns over the prospect of a tighter U.S. monetary
policy to contain inflation, the economic impact of the ongoing Russia-
Ukraine conflict, and the Covid-19 lockdowns in selected major cities of
China until 1 June 2022. While the global economy is expected to register
positive growth in 2022, headwinds such as supply chain disruptions,
China’s ‘zero-Covid’ policy and elevated inflationary pressures could
dampen the pace of economic growth.
Looking ahead, the equity markets’ longer-term performance will depend on
the pace of recovery in the key economies of the U.S., Europe and the Asia
Pacific region. Meanwhile, investors will focus on inflation trends and the
timeline for the normalisation of monetary policies by major central banks
amid the risk of ongoing Covid-19 infections and geopolitical tensions.
In its annual report released on 30 March 2022, barring any unforeseen
circumstances, BNM projects Malaysia’s real GDP to grow by between
5.3% and 6.3% in 2022 from 3.1% in 2021, supported by higher private
consumption and investment spending as well as continued growth in the
exports of electronic products and commodities.
BNM projects the inflation rate to be in the range of 2.2% to 3.2% in 2022
compared to 2.5% in 2021. Meanwhile, the central bank also highlighted
that elevated commodity prices and prolonged global supply chain
disruptions could potentially lead to higher inflation.
As at end-May 2022, the FBM 100 traded at a prospective P/E ratio of
15.3x, which is below its 10-year average of 16.7x. The market’s dividend
yield stood at 3.7%.
Public Dividend Select Fund • 11
Manager’s Report Trustee’s Report

Given the above factors, the Fund will continue to rebalance its investment To the unit holders of PUBLIC DIVIDEND SELECT FUND (“Fund”),
portfolio accordingly with the objective of providing steady recurring income
by investing in a portfolio of stocks which offer or have the potential to offer We have acted as Trustee of the Fund for the financial year ended
attractive dividend yields. 31 May 2022 and we hereby confirm to the best of our knowledge, after
having made all reasonable enquiries, PUBLIC MUTUAL BERHAD has
Note: Q = Quarter operated and managed the Fund during the year covered by these financial
statements in accordance with the following:
Cross-Trade Transactions
1. Limitations imposed on the investment powers of the management
No cross-trade transactions were undertaken by PDSF during portfolio company under the deed, securities laws and the Guidelines on Unit
rebalancing activities over the financial year under review. Trust Funds;
2. Valuation and pricing is carried out in accordance with the deed; and
Policy on Soft Commissions
3. Any creation and cancellation of units are carried out in accordance with
The management company may receive goods and services which bring
the deed and any regulatory requirement.
a direct benefit or advantage to the management of the funds and may be
in the form of research and advisory services that assist in the decision- We are of the opinion that the distribution of income by the Fund is appropriate
making process relating to the Fund’s investments. and reflects the investment objective of the Fund.
During the financial year under review, PDSF has received soft commissions
from brokers/dealers who have also executed trades for other funds
managed by Public Mutual. The soft commissions were utilised for goods
and services which include the provision of financial data, price quotation
on securities, benchmarks for fund performance measurement, research
services and investment-related publications to assist the Manager in the
For AMANAHRAYA TRUSTEES BERHAD
investment decision-making process. The soft commissions received were
for the benefit of the funds and there were no churning of trades.

Securities Financing Transactions

PDSF has not undertaken any securities lending or repurchase transactions
during the financial year under review.
ZAINUDIN BIN SUHAIMI
Changes Made to the Fund’s Prospectus Chief Executive Officer
Date: 20 June 2022
There were no changes made to PDSF’s prospectus during the financial
year under review.

12 • Public Dividend Select Fund Public Dividend Select Fund • 13

Statement By Manager
We, TAN SRI DATO’ SRI DR. TAY AH LEK and QUAH POH KEAT, being two
of the directors of PUBLIC MUTUAL BERHAD, do hereby state that, in the
opinion of the Manager, the accompanying statement of assets and liabilities
as at 31 May 2022 and the related statement of income and expenditure,
statement of changes in net asset value and statement of cash flows for
the financial year ended on that date together with the notes thereto, are
drawn up in accordance with Malaysian Financial Reporting Standards and
International Financial Reporting Standards so as to give a true and fair
view of the financial position of PUBLIC DIVIDEND SELECT FUND as at
31 May 2022 and of its financial performance, changes in net asset value
and cash flows for the financial year then ended and comply with the
requirements of the Deeds.
For and on behalf of the Manager
TAN SRI DATO’ SRI DR. TAY AH LEK
QUAH POH KEAT
28 June 2022
14 • Public Dividend Select Fund
Independent Auditors’ Report
Independent auditors’ report to the Unitholders of
PUBLIC DIVIDEND SELECT FUND
Report on the audit of the financial statements
Opinion
We have audited the financial statements of PUBLIC DIVIDEND SELECT
FUND (“the Fund”), which comprise the statement of assets and liabilities as
at 31 May 2022, and the statement of income and expenditure, statement of
changes in net asset value and statement of cash flows of the Fund for the
financial year then ended, and notes to the financial statements, including
a summary of significant accounting policies, as set out on pages 18 to 39.
In our opinion, the accompanying financial statements give a true and fair
view of the financial position of the Fund as at 31 May 2022, and of its
financial performance and its cash flows for the financial year then ended
in accordance with Malaysian Financial Reporting Standards (“MFRS”) and
International Financial Reporting Standards (“IFRS”).
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 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.
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 the information included in the Annual Report of the
Fund, 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.
Public Dividend Select Fund • 15
Independent Auditors’ Report (cont’d)
Report on the audit of the financial statements (cont’d)
Responsibility of the Manager and Trustee for the financial statements
The Manager of the Fund is responsible for the preparation of financial
statements of the Fund that give a true and fair view in accordance with
MFRS and IFRS. 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 cease operations, or has no realistic alternative but to do so.
The Trustee is responsible for overseeing the Fund’s financial reporting
process. The Trustee is also responsible for ensuring that the Manager
maintains proper accounting and other records as are necessary to enable
true and fair presentation of these financial statements.
Auditors’ responsibility 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
judgment and maintain professional skepticism throughout the audit. We also:
• 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.
• 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.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made
by the Manager.
16 • Public Dividend Select Fund
Independent Auditors’ Report (cont’d)
Report on the audit of the financial statements (cont’d)
Auditors’ responsibility for the audit of the financial statements (cont’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.
• Evaluate the overall presentation, structure and content of the financial
statements of the Fund, including the disclosures, and whether the
financial statements of the Fund 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, as a body, in
accordance with Guidelines on Unit Trust Funds issued by the Securities
Commission Malaysia and for no other purpose. We do not assume
responsibility to any other person for the content of this report.
Ernst & Young PLT Ng Sue Ean
202006000003 (LLP0022760-LCA) & AF 0039 No. 03276/07/2022 J
Chartered Accountants Chartered Accountant
Kuala Lumpur, Malaysia
28 June 2022
Public Dividend Select Fund • 17
Statement Of Assets And Liabilities Statement Of Income And Expenditure
As at 31 May 2022 For the Financial Year Ended 31 May 2022

Note 2022 2021 Note 2022 2021

MYR’000 MYR’000 MYR’000 MYR’000
Assets Income
Investments 4 944,704 1,091,150 Interest income 955 1,105
Due from brokers/financial institutions, Distribution income 2,016 1,882
net 6 2,744 - Dividend income 33,664 35,478
Other receivables 529 4,417 Net (loss)/gain from investments 4 (34,444) 135,281
Deposits with financial institutions 7 79,374 44,274 Net realised/unrealised foreign
Cash at banks 8 21,901 27,804 exchange (loss)/gain (815) 30
1,049,252 1,167,645 1,376 173,776
Liabilities Less: Expenses
Due to the Manager, net 9 2,183 2,840 Trustee’s fee 13 600 600
Provision for taxation 16 - Management fee 14 16,795 18,343
Other payables 46 60 Audit fee 7 7
Distribution payable 10,585 6,822 Tax agent’s fee 20 39
Brokerage fee 1,180 2,743
12,830 9,722 Administrative fees and expenses 85 33
Total net assets 1,036,422 1,157,923 18,687 21,765
Net asset value (“NAV”) attributable Net (loss)/income before taxation (17,311) 152,011
to unitholders (Total equity) 10 1,036,422 1,157,923 Taxation 15 (421) (428)
Units in circulation (in ’000) 11 4,234,075 4,547,795 Net (loss)/income after taxation (17,732) 151,583
NAV per unit, ex-distribution (in sen) 24.48 25.46 Net (loss)/income after taxation is
made up as follows:
Realised 35,755 19,442
The accompanying notes are an integral part of this statement. Unrealised (53,487) 132,141
(17,732) 151,583

Distributions for the financial year 16 23,685 21,639

The accompanying notes are an integral part of this statement.

18 • Public Dividend Select Fund Public Dividend Select Fund • 19

Statement Of Changes In Net Asset Value Statement Of Cash Flows
For the Financial Year Ended 31 May 2022 For the Financial Year Ended 31 May 2022

Unitholders’ Accumulated 2022 2021

Note capital losses Total MYR’000 MYR’000
MYR’000 MYR’000 MYR’000 Cash flows from operating activities
Proceeds from sale of investments 313,749 588,574
As at 1 June 2020 1,462,300 (245,623) 1,216,677 Purchase of investments (205,686) (445,650)
Creation of units 49,613 - 49,613 Maturity of deposits 12,609,544 14,682,288
Cancellation of units (238,311) - (238,311) Placement of deposits (12,644,644) (14,626,986)
Net income after taxation - 151,583 151,583 Interest income received 953 1,120
Distributions 16 - (21,639) (21,639) Net distribution income received 1,826 1,710
As at 31 May 2021 1,273,602 (115,679) 1,157,923 Net dividend income received 37,343 31,137
Trustee’s fee paid (600) (600)
Management fee paid (16,955) (18,406)
Audit fee paid (7) (7)
As at 1 June 2021 1,273,602 (115,679) 1,157,923
Tax agent’s fee paid (24) (35)
Creation of units 21,027 - 21,027
Payment of other fees and expenses (96) (87)
Cancellation of units (101,111) - (101,111)
Net loss after taxation - (17,732) (17,732) Net cash inflow from operating activities 95,403 213,058
Distributions 16 - (23,685) (23,685)
Cash flows from financing activities
As at 31 May 2022 1,193,518 (157,096) 1,036,422 Cash proceeds from units created 21,027 49,613
Cash paid on units cancelled (101,608) (238,993)
Distributions paid (19,922) (51,935)
The accompanying notes are an integral part of this statement. Net cash outflow from financing activities (100,503) (241,315)
Net decrease in cash and cash
equivalents (5,100) (28,257)
Effect of changes in foreign exchange
rates (803) (236)
Cash and cash equivalents at the
beginning of the financial year 27,804 56,297
Cash and cash equivalents at the end of
the financial year 21,901 27,804

The accompanying notes are an integral part of this statement.

20 • Public Dividend Select Fund Public Dividend Select Fund • 21

Notes To The Financial Statements Notes To The Financial Statements
31 May 2022 31 May 2022

1. The Fund, The Manager and Their Principal Activities 2. Summary of Significant Accounting Policies (cont’d)
The Public Dividend Select Fund (hereinafter referred to as “the Fund”) (a) Basis of Preparation (cont’d)
was set up pursuant to the execution of a Supplemental Master Deed
dated 13 April 2005 between the Manager, Public Mutual Berhad, the Effective dates
Trustee, AmanahRaya Trustees Berhad and the registered unitholders of for financial periods
the Fund. The Fund is governed by a Master Deed dated 28 January 1999 beginning on or after
and subsequent Supplemental Master Deeds (collectively referred to Onerous Contracts - Cost of Fulfilling a 1 January 2022
as “Deeds”). Contract (Amendments to MFRS 137
The Fund’s objective is to provide steady recurring income by investing Provisions, Contingent Liabilities and
in a portfolio of stocks which offer or have the potential to offer attractive Contingent Assets) *
dividend yields. The Fund invests in investments as defined in the MFRS 17 - Insurance Contracts * 1 January 2023
Deeds. The Fund was launched on 3 May 2005 and will continue its Amendments to MFRS 17 Insurance 1 January 2023
operations until terminated by the Trustee as provided in the Master Contracts *
Initial Application of MFRS 17 and MFRS 9 1 January 2023
Deed.
- Comparative Information (Amendment to
The Manager of the Fund is Public Mutual Berhad, a company MFRS 17 Insurance Contracts) *
incorporated in Malaysia. Its principal activities are the management Classification of Liabilities as Current or 1 January 2023
of unit trusts and the sale of trust units. Its ultimate holding company is Non-current (Amendments to MFRS 101
Public Bank Berhad, a licensed bank incorporated in Malaysia and listed Presentation of Financial Statements)
on the Main Market of Bursa Malaysia Securities Berhad. Disclosure of Accounting Policies 1 January 2023
(Amendments to MFRS 101 Presentation
2. Summary of Significant Accounting Policies of Financial Statements)
Definition of Accounting Estimates 1 January 2023
(a) Basis of Preparation (Amendments to MFRS 108 Accounting
Policies, Changes in Accounting Estimates
The financial statements of the Fund have been prepared under
and Errors)
the historical cost convention, as modified by the revaluation of
Deferred Tax related to Assets and Liabilities 1 January 2023
financial assets and financial liabilities at fair value and comply
arising from a Single Transaction
with Malaysian Financial Reporting Standards (“MFRS”) and
(Amendments to MFRS 112 Income Taxes) *
International Financial Reporting Standards (“IFRS”).
Sale or Contribution of Assets between an To be announced
The Fund has adopted MFRSs, Amendments and Issue Committee Investor and its Associate or Joint Venture
(“IC”) Interpretations which were effective from periods beginning (Amendments to MFRS 10 and MFRS 128) *
on or after 1 January 2021 and 1 April 2021. The adoption of * These MFRSs and Amendments are not relevant to the Fund.
these MFRSs, Amendments and IC Interpretations do not have
any significant impact on the financial statements of the Fund. (b) Accounting Estimates and Judgements
The Fund will adopt the following MFRSs and Amendments when The preparation of the Fund’s financial statements requires the
they become effective in the respective financial periods and these Manager to make judgements, estimates and assumptions that
MFRSs and Amendments are not expected to have material impact affect the reported amounts of revenues, expenses, assets and
to the financial statements of the Fund upon the initial application. liabilities, and the disclosure of contingent liabilities at the reporting
date. However, uncertainty about these assumptions and estimates
Effective dates could result in outcome that could require a material adjustment to
for financial periods the carrying amount of an asset or a liability in the future.
beginning on or after
There are no major judgements nor key assumptions concerning
Amendments to MFRSs contained in the 1 January 2022 the future and other key sources of estimation uncertainty at the
document entitled “Annual Improvements reporting date, that may cast significant doubt upon the Fund’s
to MFRS Standards 2018-2020” ability to continue as a going concern. Therefore, the financial
Reference to the Conceptual Framework 1 January 2022 statements continue to be prepared on the going concern basis.
(Amendments to MFRS 3 Business
Combinations) * (c) Fair Value Measurement
Property, Plant and Equipment - Proceeds 1 January 2022
before Intended Use (Amendments to Fair value is the price that would be received to sell an asset or
MFRS 116 Property, Plant and Equipment) * paid to transfer a liability in an orderly transaction between market
participants at the measurement date.

22 • Public Dividend Select Fund Public Dividend Select Fund • 23

Notes To The Financial Statements
31 May 2022
2. Summary of Significant Accounting Policies (cont’d)
(d) Financial Instruments
Financial assets and financial liabilities are recognised in the
Statement of Assets and Liabilities when, and only when, the Fund
becomes a party to the contractual provisions of the instrument.
A financial asset or financial liability is considered to be held for
trading if:
• It is acquired or incurred principally for the purpose of selling
or repurchasing it in the near term; or
• On initial recognition, it is part of a portfolio of identified financial
instruments that are managed together and for which, there is
evidence of a recent actual pattern of short-term profit-taking;
or
• It is a derivative (except for a derivative that is a financial
guarantee contract or a designated and effective hedging
instrument).
i) Financial Assets
The Fund determines the classification of its financial assets at
initial recognition, and the categories include financial assets
measured at fair value through profit or loss (“FVTPL”) and
financial assets measured at amortised cost.
When financial assets are recognised initially on trade date,
they are measured at fair value, plus, in the case of financial
assets not at FVTPL, directly attributable transaction costs.
Financial assets are derecognised on trade date when the
rights to receive cash flows from the investments have expired
or the Fund has transferred substantially all risks and rewards
of ownership.
Financial Assets at FVTPL
A financial asset is classified as FVTPL if it meets the definition
of held for trading. Subsequent to initial recognition, financial
assets at FVTPL are measured at fair value. Changes in the
fair value of those financial instruments are recorded in “Net
gain or loss on financial assets at FVTPL”. Interest earned,
distribution income and dividend revenue elements of such
instruments are recorded separately in “Interest income”,
“Distribution income” and “Dividend income” respectively.
Exchange differences on financial assets at FVTPL are not
recognised separately in profit or loss but are included in net
gain or net loss on changes in fair value of financial assets
at FVTPL.
24 • Public Dividend Select Fund
Notes To The Financial Statements
31 May 2022
2. Summary of Significant Accounting Policies (cont’d)
(d) Financial Instruments (cont’d)
i) Financial Assets (cont’d)
Financial Assets at amortised cost
A financial asset is measured at amortised cost if it is held
within a business model whose objective is to hold financial
assets in order to collect contractual cash flows and its
contractual terms give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal
amount outstanding. The Fund includes in this category
amount due from brokers/financial institutions, amount due
from the Manager, other receivables, deposits with financial
institutions and cash at banks.
ii) Financial Liabilities
Financial liabilities are recognised initially at fair value and
classified according to the substance of the contractual
arrangements entered into and the definitions of a financial
liability.
The Fund derecognises a financial liability when the obligation
under the liability is discharged, cancelled or expired.
Financial Liabilities at FVTPL
A financial liability is measured at FVTPL if it meets the
definition of held for trading.
Financial Liabilities at amortised cost
This category includes all financial liabilities, other than those
measured at FVTPL. The Fund includes in this category
amount due to brokers/financial institutions, amounts due to
the Manager and the Trustee, and other payables.
Impairment
The Fund holds only receivables which have maturities of less than
12 months at amortised cost and has chosen to apply the simplified
approach on all receivables.
(e) Foreign Currency
i) Functional and Presentation Currency
The financial statements of the Fund are measured using
the currency of the primary economic environment in which
the Fund operates (“the functional currency”). The financial
statements are presented in Malaysian Ringgit (“MYR”), which
is also the Fund’s functional currency.
Public Dividend Select Fund • 25
Notes To The Financial Statements
31 May 2022
2. Summary of Significant Accounting Policies (cont’d)
(e) Foreign Currency (cont’d)
ii) Foreign Currency Transactions
Transactions in foreign currencies are measured and recorded
in the functional currency of the Fund on initial recognition at
exchange rates approximating those ruling at the transaction
dates. Monetary assets and liabilities denominated in foreign
currencies are translated at the rate of exchange ruling at
the reporting date. Non-monetary items denominated in
foreign currencies that are measured at historical cost are
translated using the exchange rates as at the dates of the
initial recognition.
Exchange differences arising from translation of monetary
items at the reporting date are recognised in profit or loss.
Exchange differences arising from the translation of non-
monetary financial assets at FVTPL are included in profit
or loss.
(f) Unitholders’ Capital
The Unitholders’ contributions to the Fund meet the definition of
puttable instruments and are classified as equity instruments.
Distribution equalisation represents the average distributable
amount included in the creation and cancellation prices of units.
This amount is either refunded to Unitholders by way of distribution
and/or adjusted accordingly when units are cancelled.
(g) Cash and Cash Equivalents
Cash and cash equivalents comprise cash at licensed banks which
are subject to an insignificant risk of changes in value.
(h) Income
Income is recognised to the extent that it is probable that the
economic benefits will flow to the Fund and the income can
be reliably measured. Income is measured at the fair value of
consideration received or receivable, and is presented gross of
withholding tax which is disclosed separately.
Distribution income and dividend income are recognised on the
date when the Fund’s right to receive the payment is established.
Interest income for all interest-bearing financial instruments and
accretion of discount/amortisation of premium are recognised using
the effective interest method.
(i) Taxation
Current tax assets and liabilities are measured at the amount
expected to be recovered from or paid to the tax authorities. The
tax rate and tax laws used to compute the amount are those that
are enacted or substantively enacted by the reporting date. The
Fund may also incur withholding taxes on income received from
financial instruments.
26 • Public Dividend Select Fund
Notes To The Financial Statements
31 May 2022
2. Summary of Significant Accounting Policies (cont’d)
(j) Related Parties
Related parties refer to Public Bank Berhad and its subsidiaries.
3. Financial Risk and Capital Management Policies
The Fund is exposed to a variety of financial risks, which include market
risk (such as price risk and currency risk), credit and counterparty risk,
single issuer risk, liquidity risk and the current COVID-19 pandemic.
The overall financial risk management objective of the Fund is to
mitigate capital loss.
Financial risk management is carried out through policy reviews, internal
control systems and adherence to the investment powers and restrictions
stipulated in the Guidelines on Unit Trust Funds issued by the Securities
Commission Malaysia.
(a) Market Risk
Market risk arises when the value of the securities fluctuates in
response to the activities of individual companies, and general
market or economic environments. Market risk is managed
through portfolio diversification and changes in asset allocation.
It comprises the following risks:
i) Price Risk
Price risk is the risk that prices of equity securities and
collective investment funds rise or fall as a result of changes
in factors specific to a particular security or general market
conditions.
The increase/(decrease) in the NAV attributable to unitholders
as at reporting date, assuming equity and collective
investment funds’ prices change by +/(-) 5% with all other
variables held constant, is +/(-) MYR47,235,000 (2021:
+/(-) MYR54,558,000). This analysis is for illustration purpose
only and not an indication of future variances.
ii) Currency Risk
The Fund invests in financial instruments denominated in
currencies other than its functional currency. Consequently,
the Fund is exposed to risks arising from changes in the
exchange rate of its functional currency relative to other
foreign currencies that might significantly impact the value of
the Fund’s assets or liabilities denominated in currencies other
than Malaysian Ringgit.
The increase/(decrease) in the NAV attributable to unitholders
as at reporting date, assuming exchange rates of foreign
currencies fluctuate by +/(-) 5% with all other variables held
constant, is +/(-) MYR6,967,000 (2021: +/(-) MYR9,521,000).
This analysis is for illustration purpose only and not an
indication of future variances.
Public Dividend Select Fund • 27
Notes To The Financial Statements Notes To The Financial Statements
31 May 2022 31 May 2022

3. Financial Risk and Capital Management Policies (cont’d) 4. Investments (cont’d)

(b) Credit and Counterparty Risk Quoted equity securities, collective investment funds and redeemable
convertible unsecured loan stocks
Credit risk refers to the ability of an issuer to make timely payments Fair value is determined directly by reference to the published market
of interest and principal. Counterparty risk refers to the ability of a price at the reporting date.
counterparty to make timely payment of proceeds from realisation
of investments. The Manager manages credit and counterparty The market prices of the above quoted financial instruments are
risks by setting exposure limits and undertaking periodical determined by reference to information made publicly available by the
credit evaluation to assess the creditworthiness of issuers and respective stock exchanges.
counterparties.
FINANCIAL INSTRUMENTS - 31 MAY 2022
(c) Single Issuer Risk
The equity securities and collective investment funds held by the Fund
The Fund is restricted to invest in securities issued by any issuer are categorised based on their principal business activities according
of not more than a certain percentage of its net asset value. Under to the Bloomberg Sector Classification System as at the reporting date
such restriction, the exposure risk to the securities of a single of the Statement of Assets and Liabilities.
issuer is minimised.
Fair Percent
(d) Liquidity Risk Quantity Cost Value of NAV
The Fund maintains sufficient level of liquid assets to meet (in ’000) MYR’000 MYR’000 %
anticipated payments and redemption by unitholders. Liquid assets EQUITY SECURITIES
comprise cash, deposits with licensed financial institutions and other Malaysia
instruments, which can be converted into cash within 7 days. The
Fund’s policy is to maintain a prudent level of liquid assets and Basic Materials
monitoring of the daily creation and cancellation of units so as to Petronas Chemicals Group
manage liquidity risk. Berhad 3,135 28,672 32,165 3.1
Press Metal Aluminium
The Fund’s financial liabilities have contractual maturities of not Holdings Berhad 5,848 24,740 32,396 3.1
more than six (6) months.
53,412 64,561 6.2
(e) Capital Management
Communications
Capital is represented by unitholders’ subscription to the Fund. Axiata Group Berhad 7,042 43,368 22,605 2.2
The amount of capital can change significantly on a daily basis Telekom Malaysia Berhad 3,005 18,790 16,108 1.5
as the Fund is subject to daily redemption and subscription at TIME dotCom Berhad 2,586 12,184 11,301 1.1
the discretion of unitholders. The Manager manages the Fund’s
capital in accordance to its objective as stated in Note 1, while 74,342 50,014 4.8
maintaining sufficient liquidity to meet unitholders’ redemption as Consumer, Cyclical
explained in Note (d) above. Amway (Malaysia)
Holdings Berhad 1,082 12,749 5,540 0.5
4. Investments Genting Berhad 5,983 56,115 28,420 2.7
2022 2021 Genting Malaysia Berhad 7,280 27,956 21,839 2.1
MYR’000 MYR’000 Mr D.I.Y. Group (M) Berhad 3,356 13,011 10,905 1.1
Financial assets at FVTPL UMW Holdings Berhad 2,818 30,166 9,553 0.9
- Equity securities 892,845 1,038,184 139,997 76,257 7.3
- Collective investment funds 50,516 51,649
- Redeemable convertible unsecured Consumer, Non-cyclical
loan stocks 1,343 1,317 Dutch Lady Milk Industries
Berhad 176 8,715 5,840 0.6
944,704 1,091,150 Fraser & Neave Holdings
Bhd 98 2,412 1,909 0.2
The Fund’s investments are carried at fair value, which were determined Heineken Malaysia Berhad 556 13,544 13,801 1.3
using prices in active markets for identical assets. IHH Healthcare Berhad 2,507 15,268 16,796 1.6

28 • Public Dividend Select Fund Public Dividend Select Fund • 29

Notes To The Financial Statements Notes To The Financial Statements
31 May 2022 31 May 2022

4. Investments (cont’d) 4. Investments (cont’d)

Fair Percent Fair Percent
Quantity Cost Value of NAV Quantity Cost Value of NAV
(in ’000) MYR’000 MYR’000 % (in ’000) MYR’000 MYR’000 %
EQUITY SECURITIES EQUITY SECURITIES
(cont’d) (cont’d)
Malaysia (cont’d) Malaysia (cont’d)
Consumer, Non-cyclical Technology
(cont’d) Dufu Technology Corp.
IOI Corporation Berhad 5,656 25,137 24,319 2.3 Berhad 3,590 12,630 9,405 0.9
Kuala Lumpur Kepong Inari Amertron Berhad 5,374 13,008 15,102 1.5
Berhad 839 21,964 21,447 2.1
QL Resources Berhad 1,663 7,602 8,531 0.8 25,638 24,507 2.4
Sime Darby Plantation
Berhad 2,028 10,463 10,198 1.0 Utilities
Tenaga Nasional Berhad 6,862 94,771 62,790 6.1
105,105 102,841 9.9
Hong Kong
Diversified
IJM Corporation Berhad 9,580 31,856 17,244 1.7 Communications
Malaysian Pacific Alibaba Group Holding Ltd
Industries Berhad 546 18,892 17,937 1.7 - SW 234 34,047 12,586 1.2
JD.com, Inc - SW 66 13,636 8,322 0.8
50,748 35,181 3.4
47,683 20,908 2.0
Energy
Dialog Group Berhad 4,851 14,542 11,788 1.1 Japan
Gas Malaysia Berhad 2,210 7,546 6,653 0.7
Consumer, Cyclical
22,088 18,441 1.8 ITOCHU Corporation 69 9,583 8,636 0.8
Financial Korea
AMMB Holdings Berhad 3,215 18,074 11,704 1.1
Bursa Malaysia Berhad 547 4,599 3,621 0.4 Communications
CIMB Group Holdings Samsung SDI Co., Ltd 5 12,796 9,404 0.9
Berhad 8,891 57,747 45,787 4.4 Technology
IGB Berhad 2,768 8,984 6,531 0.6 Samsung Electronics Co
IOI Properties Group Ltd 41 10,956 9,667 0.9
Berhad 6,502 13,382 6,567 0.6
LPI Capital Bhd 2,210 10,686 30,239 2.9 Singapore
Malayan Banking Berhad 7,709 74,461 70,156 6.8
Manulife Holdings Berhad 2,868 6,388 6,913 0.7 Financial
Public Bank Berhad 20,877 77,503 98,747 9.5 DBS Group Holdings
Limited 137 15,424 13,531 1.3
271,824 280,265 27.0
Taiwan
Industrial
Kossan Rubber Industries Technology
Berhad 5,369 23,628 8,858 0.9 Taiwan Semiconductor
Malaysia Airports Holdings Manufacturing Co., Ltd 141 13,424 11,907 1.2
Berhad 2,269 19,070 14,905 1.4
United States
Top Glove Corporation Bhd 4,169 16,707 5,837 0.6
UWC Berhad 3,848 20,360 11,351 1.1 Consumer, Non-cyclical
Vitrox Corporation Berhad 2,561 8,303 19,844 1.9 PayPal Holdings, Inc 20 15,655 7,395 0.7
88,068 60,795 5.9

30 • Public Dividend Select Fund Public Dividend Select Fund • 31

Notes To The Financial Statements Notes To The Financial Statements
31 May 2022 31 May 2022

4. Investments (cont’d) 5. Fair Value of Financial Instruments

Quantity/ Cost/ The Fund uses the following hierarchy for determining and disclosing
Nominal Aggregate Fair Percent the fair value of financial instruments by valuation technique:
Value Cost Value of NAV
(in ’000)/ MYR’000 MYR’000 % Level 1: Quoted prices per respective stock markets for identical
MYR’000 assets or liabilities.
EQUITY SECURITIES Level 2: Inputs other than quoted prices included within Level 1 that
(cont’d) are observable for the asset or liability, either directly (as
United States (cont’d) prices) or indirectly (derived from prices).

Technology Level 3: Inputs for the asset or liability other than observable market
Apple Inc. 18 8,275 11,403 1.1 data.
Intel Corporation 20 4,586 3,898 0.4 As of end of the financial year, the Fund held the following financial
Microsoft Corp 11 9,672 12,615 1.2 instruments carried at fair value on the Statement of Assets and
NVIDIA Corporation 10 5,840 7,829 0.8 Liabilities:
28,373 35,745 3.5 Level 1 Total
COLLECTIVE 2022 2021 2022 2021
INVESTMENT FUNDS MYR’000 MYR’000 MYR’000 MYR’000
Financial assets at
Malaysia
FVTPL
Financial - Equity securities 892,845 1,038,184 892,845 1,038,184
IGB Real Estate - Collective
Investment Trust 18,857 26,710 30,925 3.0 investment funds 50,516 51,649 50,516 51,649
Sunway Real Estate - Redeemable
Investment Trust 12,558 21,689 19,591 1.9 convertible
unsecured loan
48,399 50,516 4.9 stocks 1,343 1,317 1,343 1,317
REDEEMABLE 944,704 1,091,150 944,704 1,091,150
CONVERTIBLE
UNSECURED
There were no transfers between Level 1 and Level 2 during the current
LOAN STOCKS
and previous financial year.
Malaysia
The carrying amounts of financial assets and financial liabilities,
Hume Cement Industries
other than above, approximate fair values due to relatively short term
Berhad - 5.00% / 2024 850 850 1,343 0.1
maturities of these financial instruments.
TOTAL 1,129,136 944,704 91.1
6. Due from Brokers/Financial Institutions, Net
Cost is translated to the Fund’s functional currency based on the 2022 2021
exchange rates at the reporting date of the Statement of Assets and MYR’000 MYR’000
Liabilities. Amount due from a related financial
Net (loss)/gain from investments for the financial year is as follows: institution 2,744 -

2022 2021
MYR’000 MYR’000 7. Deposits with Financial Institutions
Financial assets at FVTPL 2022 2021
- realised gain on disposal 18,838 1,726 MYR’000 MYR’000
- unrealised (loss)/gain on changes in Deposits with a related licensed financial
fair value (53,282) 133,555 institution 79,374 44,274
(34,444) 135,281

32 • Public Dividend Select Fund Public Dividend Select Fund • 33

Notes To The Financial Statements Notes To The Financial Statements
31 May 2022 31 May 2022

7. Deposits with Financial Institutions (cont’d) 11. Units in Circulation

Weighted average rates of return for the financial year and the average As of end of the financial year, the total number of units in circulation
remaining maturities of deposits as of end of the financial year are as is as follows:
follows:
2022 2021
Weighted Average Average Remaining No. of units No. of units
Rates of Return Maturities (in ’000) (in ’000)

2022 2021 2022 2021 At beginning of the financial year 4,547,795 5,302,507
% % Day Day Creation of units 82,593 211,631
Money market deposits, Cancellation of units (396,313) (966,343)
less than 1 year 1.79 1.81 1 1 At end of the financial year 4,234,075 4,547,795

8. Cash at Banks 12. Holdings of Units by the Manager

2022 2021 As of end of the financial year, the total number and value of units held
MYR’000 MYR’000 legally by the Manager are as follows:
Cash balances in licensed banks
- related parties 80 311 2022 2021
- others 21,821 27,493 No. of units No. of units
(in ’000) MYR’000 (in ’000) MYR’000
21,901 27,804
The Manager 16 4 157 40

9. Due to the Manager, Net

13. Trustee’s Fee
The net amount due to the Manager represents amount payable for units
cancelled and/or amount payable for management fee, net of amount Trustee’s fee is computed daily based on 0.06% per annum of the net
receivable for the units created. Amounts for units created/cancelled asset value, subject to a minimum fee of MYR18,000 per annum and a
are receivable/payable within 7 business days of creation/cancellation. maximum fee of MYR600,000 per annum.
Management fee is payable on a monthly basis.
14. Management Fee
10. Net Asset Value Attributable to Unitholders (Total Equity) Management fee is computed daily based on 1.50% per annum of the
2022 2021 net asset value.
MYR’000 MYR’000
15. Taxation
Unitholders’ capital 1,193,518 1,273,602
Accumulated (losses) (157,096) (115,679) 2022 2021
MYR’000 MYR’000
1,036,422 1,157,923 Malaysian tax
- current financial year charge 16 -
Accumulated (losses)
- withholding tax 191 172
- realised reserves 23,253 11,183
- unrealised (losses) (180,349) (126,862) 207 172
(157,096) (115,679) Foreign withholding tax
- current financial year charge 254 668
- reclaim of withholding tax for prior
financial years (40) (412)
214 256
421 428

34 • Public Dividend Select Fund Public Dividend Select Fund • 35

Notes To The Financial Statements Notes To The Financial Statements
31 May 2022 31 May 2022

15. Taxation (cont’d) 16. Distributions

Domestic income tax is calculated at the Malaysian statutory tax rate of Distributions declared to unitholders during the financial year are as
24% of the estimated assessable income for the financial year. follows:
Effective 1 January 2022, the income arising from sources outside Gross Net
Malaysia and received in Malaysia by the Fund will be subject to income Distribution Distribution Distribution
tax in Malaysia pursuant to the Income Tax Act 1967 (ITA). Pursuant Date of Declaration Per Unit Per Unit Amount
to subsection 6(1)(p) and Part XX of Schedule 1 of the ITA, Malaysian (sen) (sen) MYR’000
income tax on income received from outside Malaysia for the period from Financial year ended
1 January 2022 to 30 June 2022, is charged at the rate of 3% of gross. 31 May 2022
30 November 2021 0.30 0.30 13,100
The Malaysian taxation charge for the current financial year is on 31 May 2022 0.25 0.25 10,585
taxable income received from outside Malaysia after 31 December 2021,
calculated at the tax rate of 3% of the gross income and after deducting Total 0.55 0.55 23,685
allowable expenses and credit allowed under section 132 or 133 of Financial year ended
the ITA, if any. 31 May 2021
A reconciliation of income tax expense applicable to net (loss)/income 30 November 2020 0.30 0.30 14,817
before taxation at the statutory income tax rate to income tax expense 31 May 2021 0.15 0.15 6,822
at the effective income tax rate of the Fund is as follows: Total 0.45 0.45 21,639
2022 2021
MYR’000 MYR’000 The distributions declared are derived from the following sources:

Net (loss)/income before taxation (17,311) 152,011 2022 2021

MYR’000 MYR’000
Taxation at Malaysian statutory rate - 24% (4,399) 36,483
- 3% 32 - Interest income 430 659
Tax effects of: Distribution income 8 952
- income not subject to tax, net (76) (41,696) Dividend income 30,751 28,413
- expenses not deductible for tax Previous financial year’s realised gain 11,183 13,380
purposes 443 827 42,372 43,404
- restriction on tax deductible expenses Less: Expenses (18,687) (21,765)
for unit trust funds 3,638 3,957
- tax deductible expenses not fully 23,685 21,639
utilised 394 429
- tax credit allowed under section 132 Included in distributions for the financial year is an amount of
or 133 of the ITA (16) - MYR11,183,000 (2021: MYR13,380,000) made from the previous
Withholding tax 191 172 financial year’s realised gain. Unrealised loss on investments of
MYR184,432,000 (2021: MYR127,554,000) is not included in the
207 172
distributions made during the financial year.
Foreign withholding tax
- current financial year charge 254 668
- reclaim of withholding tax for prior
17. Transactions with Related and Other Brokers/Financial
financial years (40) (412) Institutions
Tax expense 421 428 Percent
Percent Brokerage of Total
Value of of Total Fees and Fees and
Name Trade Trade Commissions Commissions
MYR’000 % MYR’000 %
Public Investment
Bank Berhad
(related party) 257,950 50 585 67
UBS Securities LLC 51,114 10 12 1

36 • Public Dividend Select Fund Public Dividend Select Fund • 37

Notes To The Financial Statements Notes To The Financial Statements
31 May 2022 31 May 2022

17. Transactions with Related and Other Brokers/Financial 19. Segment Information
Institutions (cont’d) For management purposes, the Fund is organised into one main
Percent operating segment, which invests in various financial instruments and
Percent Brokerage of Total the analysis of the Fund’s investment income is as follows:
Value of of Total Fees and Fees and
2022 2021
Name Trade Trade Commissions Commissions
MYR’000 MYR’000
MYR’000 % MYR’000 %
(a) Investment Type
CLSA Limited 39,218 8 7 1 Equity securities (4,716) 175,817
China International Collective investment funds 5,111 (2,934)
Capital Corp HK Convertible unsecured loan stocks 68 (170)
Securities Ltd 35,800 7 5 1 Deposits 913 1,063
Mercury Securities 1,376 173,776
Sdn Bhd 31,370 6 71 8
J.P. Morgan (b) Regional Locations
Securities plc 21,050 4 63 7 Malaysia 6,729 119,147
Citigroup Global Asia Pacific (22,937) 29,823
Markets Limited 16,151 3 3 # Europe & United States 17,584 24,806
Macquarie
1,376 173,776
Securities Korea
Limited 14,163 3 42 5
Macquarie
Securities
(Australia) Limited 11,251 2 2 #
CLSA Singapore
Pte Ltd 9,812 2 15 2
Others 27,135 5 65 8
515,014 100 870 100

# Denote less than 1%.

The directors of the Manager are of the opinion that transactions
with a related party have been entered into in the normal course of
business and have been established on terms and conditions that
are not materially different from that obtainable in transactions with
unrelated parties.

18. Total Expense and Portfolio Turnover Ratios

(a) Total Expense Ratio (“TER”)
The TER for the financial year is 1.56% (2021: 1.55%). It is the
total expenses expressed as an annual percentage of the Fund’s
average net asset value.

(b) Portfolio Turnover Ratio (“PTR”)

The PTR for the financial year is 0.23 times (2021: 0.42 times). It
represents the average of the total acquisitions and disposals of
the investments in the Fund for the financial year over the average
net asset value of the Fund calculated on a daily basis.

38 • Public Dividend Select Fund Public Dividend Select Fund • 39

Corporate Information Corporate Information

Manager Board of Directors

Public Mutual Berhad (197501001842 (23419-A))
Tan Sri Dato’ Sri Dr. Teh Hong Piow, Chairman
Registered Office Tan Sri Dato’ Sri Dr. Tay Ah Lek
8th Floor, Menara Public Bank 2
No. 78 Jalan Raja Chulan Mr. Quah Poh Keat
50200 Kuala Lumpur
Tel: 603-20226800 Dato’ Mohammed Najeeb Bin Abdullah
Fax: 603-20226900
Dato’ Mohd Hanif Bin Sher Mohamed

Trustee of the Fund Ms. Yeoh Kim Hong

AmanahRaya Trustees Berhad
Tingkat 14, Wisma AmanahRaya
No. 2, Jalan Ampang Management Staff
50508 Kuala Lumpur
Yeoh Kim Hong - Chief Executive Officer

Auditor of the Manager and the Fund Chiang Kang Pey - Deputy Chief Executive Officer
Ernst & Young PLT
Level 23A, Menara Milenium Lum Ming Jang - Chief Investment Officer
Jalan Damanlela
Pusat Bandar Damansara Richard Tan Koon Eam - Senior General Manager,
50490 Kuala Lumpur Information Technology

Hang Siew Eng - Senior General Manager,

Tax Adviser Operations
KPMG Tax Services Sdn Bhd
Level 10, KPMG Tower
8, First Avenue Senior Compliance Officer
Bandar Utama
47800 Petaling Jaya Abdul Samad Bin Jaafar - Deputy General Manager,
Compliance
Selangor Darul Ehsan

40 • Public Dividend Select Fund Public Dividend Select Fund • 41

Network Of Public Mutual Branch And Agency Offices
Head Office
Menara Public Bank 2,
No. 78, Jalan Raja Chulan,
50200 Kuala Lumpur.
Tel: 03-20226800 Fax: 03-20226900
Hotline: 03-20225000
Web: www.publicmutual.com.my
Branches and Customer Service Centres
West Malaysia
1 Utama Shopping Centre
Lot LG-313-E,
1, Lebuh Bandar Utama,
Bandar Utama City Centre,
Bandar Utama,
47800 Petaling Jaya, Selangor.
Tel: 03-20225000 Fax: 03-77263811
Alor Setar
No. 8G, Samila Business Centre,
Lebuhraya Darulaman,
05100 Alor Setar, Kedah.
Tel: 04-7366500 Fax: 04-7364655
Senior Branch Manager:
Khaw Bee Ruh
Bangsar
11, 15 & 17, Jalan Bangsar Utama 3,
Bangsar Utama,
59000 Kuala Lumpur.
Tel: 03-20225000 Fax: 03-22835739
Senior Branch Manager:
Chooi Chan Yen
Batu Pahat
119, Jalan Chengal,
Taman Makmur,
83000 Batu Pahat, Johor.
Tel: 07-4363500 Fax: 07-4326588
Branch Manager:
Rui Lee Chong Siew
Cheras
44-2 & 44-3,
Cheras Commercial Centre,
Jalan 5/101C, Off Jalan Kaskas,
56100 Cheras, Kuala Lumpur.
Tel: 03-20225000 Fax: 03-91321022
Senior Branch Manager:
Khoo Peng Seng
42 • Public Dividend Select Fund
Damansara Perdana
1 & 3, Jalan PJU 8/5 I,
Perdana Business Centre,
Bandar Damansara Perdana,
47820 Petaling Jaya, Selangor.
Tel: 03-20225000 Fax: 03-77222475
Branch Manager:
Daniel Chong Yie Shiang
Ipoh
37 & 39, Persiaran Greentown 4,
Greentown Business Centre,
30450 Ipoh, Perak.
Tel: 05-2462500 Fax: 05-2559859
Branch Manager:
Khew Kok Choy
Johor Bahru
B-19, Jalan Molek 1/5A,
Taman Molek,
81100 Johor Bahru, Johor.
Tel: 07-3607500 Fax: 07-3548600
Senior Branch Manager:
Teng Lee Yen
Klang
28, 30 & 32,
Lorong Batu Nilam 3B,
Bandar Bukit Tinggi,
41200 Klang, Selangor.
Tel: 03-20225000 Fax: 03-33235632
Branch Manager:
Ng Tong Chia
Kluang
3, Jalan Dato Teoh Siew Khor,
86000 Kluang, Johor.
Tel: 07-7391500 Fax: 07-7736195
Assistant Branch Manager:
Yip Full Soon
Network Of Public Mutual Branch And Agency Offices
West Malaysia (cont’d)
Kota Bharu
PT 304 and PT 305,
Jalan Kebun Sultan,
15300 Kota Bharu, Kelantan.
Tel: 09-7263500 Fax: 09-7476026
Senior Branch Manager:
Puan Abiesharni Bt Abdul Kadir
Kuala Terengganu
1-C, Jalan Air Jernih,
20300 Kuala Terengganu,
Terengganu.
Tel: 09-6321500 Fax: 09-6317030
Branch Manager:
Elysia Chia Siang Hong
Kuantan
71 & 73, Jalan Haji Abdul Aziz,
25000 Kuantan, Pahang.
Tel: 09-5118500 Fax: 09-5161223
Branch Manager:
Sharon Ting Mooi Choon
Melaka
No. 929 & 930, Jalan Merdeka,
Taman Melaka Raya,
75000 Melaka.
Tel: 06-2855500 Fax: 06-2837354
Senior Branch Manager:
Carl Wong Yon Lian
Muar
46, Jalan Sayang,
84000 Muar, Johor.
Tel: 06-9562500
Fax: 06-9536830
Branch Manager:
Kelvin Lai Hing Goh
Penang
16, Lintang Burma,
10250 Pulau Tikus, Penang.
Tel: 04-2196500 Fax: 04-2295171
Branch Manager:
Roy Yeoh Khye Chun
Puchong
39 & 41, Jalan Puteri 1/4,
Bandar Puteri Puchong,
47100 Puchong, Selangor.
Tel: 03-20225000 Fax: 03-80653010
Branch Manager:
Bryan Koh Yi Earl
Public Dividend Select Fund • 43
Seberang Perai
1797-G-04,
Kompleks Auto World,
Jalan Perusahaan, Juru Interchange,
13600 Prai, Penang.
Tel: 04-5407500 Fax: 04-5050005
Senior Branch Manager:
Charmane Chew Hui Hsia
Seremban
1A & 1B, Jalan Tuanku Munawir,
70000 Seremban,
Negeri Sembilan.
Tel: 06-6372500 Fax: 06-7644237
Branch Manager:
Michael Wong Cheong Tee
Shah Alam
54 & 56, Jalan Pahat G15/G,
Kompleks Otomobil,
Persiaran Selangor,
Seksyen 15,
40200 Shah Alam, Selangor.
Tel: 03-20225000 Fax: 03-55139288
Branch Manager:
Eric Ng Swee Huat
Sungai Petani
9D & 9E,
Jalan Kampung Baru,
08000 Sungai Petani, Kedah.
Tel: 04-4558500 Fax: 04-4230663
Branch Manager:
Annie Ong Sok Nee
Temerloh
10,11 & 12, 2nd Floor,
Jalan Ahmad Shah,
Bandar Sri Semantan,
28000 Temerloh, Pahang.
Tel: 09-2955500 Fax: 09-2968060
Branch Manager:
Agnes Choong Lee Yoon
Network Of Public Mutual Branch And Agency Offices

East Malaysia
Bintulu Sandakan
4, Lot 2646, Jalan Tun Ahmad Zaidi, Lot 16, Block B,
97000 Bintulu, Sarawak. Bandar Maju Commercial Centre,
Tel: 086-859500 Fax: 086-330221 Mile 1.5, North Road,
Senior Branch Manager: 90000 Sandakan, Sabah.
Lilian Lo Fui Ping Postal Address:
Public Mutual Berhad,
Kota Kinabalu Sandakan Branch
Lot 1-0-10, Lorong Api-Api 1, P.O. Box No. 3488,
Api-Api Centre, 90739 Sandakan, Sabah.
88000 Kota Kinabalu, Sabah. Tel: 089-231500 Fax: 089-222889
Tel: 088-327500
Fax: 088-238389 Sibu
Branch Manager: 10, Lorong 2,
Lim Shaw Siang Jalan Tuanku Osman,
96000 Sibu, Sarawak.
Kuching Tel: 084-363500 Fax: 084-330269
Lot 205 & 206, Section 49, Branch Manager:
Jalan Tunku Abdul Rahman, Tiong Kung Kuok
93100 Kuching, Sarawak.
Tel: 082-226500 Fax: 082-239825 Tawau
Senior Branch Manager: TB 4437, Lot 28,
Jones Chen Chung Sze Block D, Sabindo Square,
Jalan Dunlop,
Miri 91000 Tawau, Sabah.
D-G-16, Miri Times Square, Tel: 089-982500 Fax: 089-765326
Marina Parkcity, Assistant Branch Manager:
98000 Miri, Sarawak. Teo Wee Ann
Tel: 085-323500 Fax: 085-416195
Branch Manager:
Allan Ngo Say Khiang

Agency Offices
Penang (Bayan Baru) Sarawak (Sarikei)
Liang Wing Sim Agency Office Ling Chai Kua Agency Office
104, 1st Floor, 1st Floor, No. 28, Jalan Nenas Lrg 2,
Jalan Mayang Pasir, 96100 Sarikei, Sarawak.
Taman Sri Tunas, Tel: 084-654108/652094
Bayan Baru,
11950 Bayan Lepas, Penang.
Tel: 04-6422170/1
Fax: 04-6411268

44 • Public Dividend Select Fund