Contents

Fund Information 2

Fund Performance 3

Manager’s Report 7

Trustee’s Report 12

Statement By Manager 13

Independent Auditors’ Report 14

Statement Of Assets And Liabilities 17

Statement Of Income And Expenditure 18

Statement Of Changes In Net Asset Value 19

Statement Of Cash Flows 20

Notes To The Financial Statements 21

Corporate Information 38

Network Of Public Mutual Branch And Agency Offices 40

Public Far-East Select Fund • 1

Fund Information Fund Information

Fund Name Fund Distribution Policy

Public Far-East Select Fund (PFES) Incidental

Fund Category Fund Performance

Equity Average Total Return for the Following Years Ended

31 May 2023
Fund Investment Objective Average Total
Return of PFES (%)
To seek long-term capital appreciation by investing in blue chips and growth
stocks in domestic and regional markets. 1 Year -11.21
3 Years -2.02
Fund Performance Benchmark 5 Years -2.51

The benchmark of the Fund is the S&P Pan Asia Ex-Japan, Australia, New Annual Total Return for the Financial Years Ended 31 May
Zealand & India LargeCap Index.
Year 2023 2022 2021 2020 2019
The “S&P Pan Asia Ex-Japan, Australia, New Zealand & India LargeCap Index” is a product of S&P
Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Public Mutual PFES (%) -11.21 -18.72 30.16 4.46 -10.88
Berhad. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial
Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings The calculation of the above returns is based on computation methods of Lipper.
LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for
certain purposes by Public Mutual Berhad. It is not possible to invest directly in an index. PFES is not Notes:
sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates
(collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices will not make any representation or 1. Total return of the Fund is derived by this formulae:

( )
warranty, express or implied, to the owners of the PFES or any member of the public regarding the
advisability of investing in securities generally or in PFES particularly or the ability of the S&P Pan Asia
Ex-Japan, Australia, New Zealand & India LargeCap Index to track general market performance. Past
End of Period FYCurrent Year NAV per unit
-1
performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices’ End of Period FYPrevious Year NAV per unit
only relationship to Public Mutual Berhad with respect to the S&P Pan Asia Ex-Japan, Australia, New
Zealand & India LargeCap Index is the licensing of the Index and certain trademarks, service marks (Adjusted for unit split and distribution paid out for the period)
and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P Pan Asia Ex-Japan,
Australia, New Zealand & India LargeCap Index is determined, composed and calculated by S&P The above total return of the Fund was sourced from Lipper.
Dow Jones Indices without regard to Public Mutual Berhad or the PFES. S&P Dow Jones Indices has
no obligation to take the needs of Public Mutual Berhad or the owners of PFES into consideration 2. Average total return is derived by this formulae:
in determining, composing or calculating the S&P Pan Asia Ex-Japan, Australia, New Zealand &
India LargeCap Index. S&P Dow Jones Indices is not responsible for and have not participated in
Total Return
the determination of the prices, and amount of PFES or the timing of the issuance or sale of PFES Number of Years Under Review
or in the determination or calculation of the equation by which PFES is to be converted into cash,
surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in
connection with the administration, marketing or trading of PFES. There is no assurance that investment Other Performance Data for the Past Three Financial Years
products based on the S&P Pan Asia Ex-Japan, Australia, New Zealand & India LargeCap Index will Ended 31 May
accurately track index performance or provide positive investment returns. S&P Dow Jones Indices
LLC is not an investment or tax advisor. A tax advisor should be consulted to evaluate the impact of 2023 2022 2021
any tax-exempt securities on portfolios and the tax consequences of making any particular investment
decision. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices Unit Prices (MYR)*
to buy, sell, or hold such security, nor is it considered to be investment advice. Highest NAV per unit for the year 0.2998 0.3785 0.4224
S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS Lowest NAV per unit for the year 0.2313 0.2767 0.2996
AND/OR THE COMPLETENESS OF THE S&P PAN ASIA EX-JAPAN, AUSTRALIA, NEW ZEALAND
& INDIA LARGECAP INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, Net Asset Value (NAV) and Units in
INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING Circulation (UIC) as at the End of
ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES the Year
SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR
DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, Total NAV (MYR’000) 1,084,253 1,259,905 1,646,558
AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A UIC (in ’000) 4,118,275 4,246,690 4,393,599
PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY PUBLIC MUTUAL NAV per unit (MYR) 0.2633 0.2967 0.3748
BERHAD, OWNERS OF THE PFES, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF
THE S&P PAN ASIA EX-JAPAN, AUSTRALIA, NEW ZEALAND & INDIA LARGECAP INDEX OR WITH Total Return for the Year (%) -11.21 -18.72 30.16
RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN
NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT,
Capital growth (%) -11.45 -18.50 29.50
SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT Income (%) 0.27 -0.27 0.51
LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY
HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, Total Expense Ratio (%) 1.67 1.65 1.61
TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF Portfolio Turnover Ratio (time) 1.16 0.67 1.24
ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND PUBLIC
MUTUAL BERHAD, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES. * Prices quoted are ex-distribution and extracted based on business days of the Fund.

2 • Public Far-East Select Fund Public Far-East Select Fund • 3

Fund Performance Fund Performance
For the Financial Year Ended 31 May 2023 For the Financial Year Ended 31 May 2023

Other Performance Data for the Past Three Financial Years Asset Allocation for the Past Three Financial Years (cont’d)
Ended 31 May (cont’d)
As at 31 May
Notes: Total Expense Ratio is calculated by taking the total expenses expressed as an annual (Percent of NAV)
percentage of the Fund’s average net asset value.
Portfolio Turnover Ratio is calculated by taking the average of the total acquisitions and 2023 2022 2021
disposals of the investments in the Fund for the year over the average net asset value % % %
of the Fund calculated on a daily basis.
Outside Malaysia
The Portfolio Turnover Ratio for the financial year 2023 rose to 1.16 times from 0.67 Australia
times in the previous financial year on account of higher level of rebalancing activities Basic Materials - 2.7 -
performed by the Fund during the year.
Energy - 0.1 -
Distribution and Unit Split - 2.8 -
Financial year 2023 2022 2021 China
Date of distribution 31.5.23 31.5.22 31.5.21 Consumer, Cyclical 0.7 0.4 -
Consumer, Non-cyclical 1.5 0.3 -
Distribution per unit Industrial - - 1.3
Gross (sen) - 0.80 0.80
Net (sen) - 0.80 0.80 2.2 0.7 1.3
Unit split - - -
Hong Kong
Communications 18.0 19.1 22.5
Impact on NAV Arising from Distribution for the Financial Years Consumer, Cyclical 3.0 4.5 5.1
Consumer, Non-cyclical 0.2 - 2.7
2023 2022 2021
Financial 12.8 15.7 13.6
31.5.23 31.5.22 31.5.21
Industrial 0.4 4.2 2.3
Sen Sen Sen
Technology 2.7 0.7 0.6
per unit per unit per unit
NAV before distribution 26.33 30.47 38.28 37.1 44.2 46.8
Net distribution - 0.80 0.80 Indonesia
NAV after distribution 26.33 29.67 37.48 Communications 1.5 1.0 -
Consumer, Cyclical 1.3 1.4 -
Breakdown of Distribution Financial 1.8 4.2 1.0

Financial year 2023 2022 2021 4.6 6.6 1.0

Date of distribution 31.5.23 31.5.22 31.5.21 Korea
MYR’000 % MYR’000 % MYR’000 % Communications 2.9 2.0 1.0
Income - - 33,974 100 35,149 100 Consumer, Cyclical 2.1 - -
Capital - - - - - - Financial - - 1.7
Technology 9.8 10.5 10.1
Total - - 33,974 100 35,149 100
14.8 12.5 12.8
Past performance is not necessarily indicative of future performance and unit
Singapore
prices and investment returns may go down, as well as up.
Consumer, Cyclical - - 2.3
Financial 1.3 3.8 2.1
Asset Allocation for the Past Three Financial Years
1.3 3.8 4.4
As at 31 May
(Percent of NAV) Taiwan
Basic Materials - - 0.4
2023 2022 2021 Communications 0.1 1.6 0.2
% % % Financial 1.2 0.8 2.1
EQUITY SECURITIES Industrial 5.4 1.1 3.0
Quoted Technology 15.0 15.4 14.0
Malaysia
Financial - - 1.8 21.7 18.9 19.7

4 • Public Far-East Select Fund Public Far-East Select Fund • 5

Fund Performance Manager’s Report
For the Financial Year Ended 31 May 2023

Asset Allocation for the Past Three Financial Years (cont’d) Overview
As at 31 May This Annual Report covers the financial year from 1 June 2022 to
(Percent of NAV) 31 May 2023.
2023 2022 2021 Public Far-East Select Fund (PFES or the Fund) seeks long-term capital
% % % appreciation by investing in blue chips and growth stocks in domestic and
Thailand regional markets.
Consumer, Cyclical 0.3 1.2 1.9
For the financial year under review, the Fund registered a return of -11.21%
Energy - 1.4 -
as compared to its benchmark’s return of -7.64%. The Fund’s equity portfolio
Financial - 0.7 1.3
Industrial - 1.4 - registered a return of -10.39% while its money market portfolio registered
a return of +2.62% during the financial year under review. A detailed
0.3 4.7 3.2 performance attribution analysis is provided in the sections below.
United States For the five financial years ended 31 May 2023, the Fund registered a return
Communications - 0.9 1.2 of -12.56% as compared to its benchmark’s return of -6.65% over the same
TOTAL QUOTED EQUITY period as the performance of selected investments held by the Fund was
SECURITIES 82.0 95.1 92.2 impacted by concerns over the Chinese government’s regulatory tightening
on selected sectors as well as the rise in global interest rates in 2021-2022.
COLLECTIVE INVESTMENT
SCHEMES
Unquoted Performance of PFES
Funds 1.0 0.8 1.7 from 31 May 2018 to 31 May 2023
50%
TOTAL UNQUOTED COLLECTIVE PFES BENCHMARK
INVESTMENT SCHEMES 1.0 0.8 1.7 40%

30%
DEPOSITS WITH FINANCIAL
Returns from Start of Period
INSTITUTIONS 6.9 4.5 4.4 20%

10%
OTHER ASSETS & LIABILITIES 10.1 -0.4 1.7
0%

-10%

-20%

-30%
May-18 May-19 May-20 May-21 May-22 May-23

Prior to 30 April 2021, the Fund’s benchmark was the Morgan Stanley Capital
International All Country Far-East Ex-Japan Index.
Effective from 30 April 2021, the Fund’s benchmark has been replaced with
the S&P Pan Asia Ex-Japan, Australia, New Zealand & India LargeCap Index.

Effect of Distribution Reinvestment on Portfolio Exposures

There were no distributions declared for the year ended 31 May 2023.

Change in Portfolio Exposures from 31-May-22 to 31-May-23

31-May-22 31-May-23 Change
Equity and equity-related securities 93.3% 83.0% -10.3%
Money market 6.7% 17.0% +10.3%

6 • Public Far-East Select Fund Public Far-East Select Fund • 7

Manager’s Report Manager’s Report

Returns Breakdown by Asset Class In August 2022, the S&P Pan Asia Ex-Japan, Australia, New Zealand & India
LargeCap Index traded sideways as optimism over the announcement of
Market / additional economic relief measures by the Chinese government was weighed
Returns On Benchmark Benchmark Average Attributed by concerns over the economic impact of renewed lockdown restrictions in
Investments Returns Index Used Exposure Returns selected Chinese cities. The index subsequently declined in September 2022
Equity and on concerns over a softer growth outlook for the regional economies and
equity- the weakening of regional currencies against the U.S. Dollar amid the Fed’s
related continued monetary tightening. The index declined further in October 2022
securities -10.39% -7.64% Benchmark 86.66% -9.00% following the U.S.’ export ban on advanced semiconductors to China as
Overnight well as on concerns over potentially tighter government policies in China
Money market 2.62% 2.56% Rate 13.34% 0.35% after President Xi Jinping secured his third 5-year term at the 20th National
less: Party Congress.
Expenses -2.56% The S&P Pan Asia Ex-Japan, Australia, New Zealand & India LargeCap
Total Return Index subsequently rebounded in November 2022, led by the China and
for the Year -11.21% Hong Kong markets on optimism that the Chinese government may gradually
ease its Covid-19 restrictions and introduce more measures to support the
Overnight Rate = Bank Negara Weighted Average Overnight Interbank Rate real estate sector in China. In December 2022, the index traded sideways
as optimism over the relaxation of Covid-19 measures in China was offset
Equity Portfolio Review by concerns over slowing global growth. The index subsequently rose in
January 2023 amid optimism over the easing of China’s zero-Covid policy
For the financial year under review, the Fund’s equity portfolio registered
and the re-opening of its international borders, coupled with expectations of a
a return of -10.39% as compared to the benchmark’s return of -7.64%.
slower pace of U.S. rate hikes for 2023. In February 2023, the index retraced
The Fund’s equity portfolio registered a lower return as compared to the
on profit-taking activities in selected Chinese Internet stocks following the
benchmark’s return as the performance of selected communications and
release of weaker-than-expected corporate earnings for 2022.
technology stocks held by the Fund was impacted by concerns over the rise
in global interest rates as well as a slower-than-expected recovery of China’s The S&P Pan Asia Ex-Japan, Australia, New Zealand & India LargeCap Index
economy during the financial year under review. declined further in the first half of March 2023 amid uncertainties surrounding
the U.S. and Switzerland’s banking sectors, but rebounded in the latter half
The Fund commenced the financial year under review with an equity exposure
of the month on the back of China’s improving retail sales data. Despite the
of 93.3% and its equity exposure was reduced to 83.0% by the end of the
release of China’s better-than-expected real GDP growth rate of 4.5% for
financial year under review to weather the consolidation phase in the regional
1Q 2023, profit-taking on selected Chinese Internet stocks subsequently
markets. Based on an average equity exposure of 86.66%, the Fund’s equity
led the index lower in April 2023. In May 2023, the index declined further on
portfolio is deemed to have registered a return of -9.00% to the Fund as a
concerns over a potential slowing of China’s economic recovery momentum,
whole for the financial year under review. A full review of the performance of
which offset gains in the South Korea and Taiwan markets. The S&P Pan
the equity markets is tabled in the following sections.
Asia Ex-Japan, Australia, New Zealand & India LargeCap Index closed at
Country Allocation 280.50 points to register a decline of 12.38% (-7.64% in Ringgit terms) for
the financial year under review.
The top 5 countries invested by the Fund are Hong Kong/China, Taiwan,
Korea, Indonesia and Singapore. The Taiwan, Indonesia, Korea and Hong Kong markets registered returns
of -1.78%, -4.86%, -5.72% and -10.05% (in Ringgit terms) respectively for
Stock Market Review the financial year under review.

The regional equity markets, as proxied by the S&P Pan Asia Ex-Japan,
Australia, New Zealand & India LargeCap Index, commenced the financial
year under review at 320.14 points. The index declined in June 2022 after
the technology-heavy South Korea and Taiwan markets eased on concerns
over the accelerated pace of monetary policy tightening by the U.S. Federal
Reserve (Fed) as well as the impact of a potential global economic slowdown
on the demand for selected technology-related products. The index declined
further in July 2022 following the release of China’s lower-than-expected real
gross domestic product (GDP) growth rate for 2Q 2022 and concerns over
delayed deliveries of pre-sold property projects to homebuyers in selected
Chinese cities.
Economic Review
China’s real GDP growth rose to 4.5% in 1Q 2023 from 3.0% in 2022 amid
stronger services sector growth. Growth in the services sector gained pace
to 5.4% in 1Q 2023 from 2.3% in 2022. Meanwhile, growth in manufacturing
activities eased to 3.3% from 3.8% over the same period. On the inflation front,
lower transportation and housing costs led China’s inflation rate to moderate
to 0.7% in the first four months of 2023 from 2.0% in 2022.

8 • Public Far-East Select Fund Public Far-East Select Fund • 9

Manager’s Report Manager’s Report

To provide more liquidity to China’s economy, the People’s Bank of China Barring any unforeseen circumstances, the economic growth rates in selected
(PBoC) reduced the reserve requirement ratio (RRR) for major banks by a North and South-East Asian countries are projected to range between 1.2%
total of 175 basis points (bps) between July 2021 and March 2023. The PBoC and 5.6% in 2023 compared to a range of between 2.5% and 5.3% in 2022.
lowered the 1-year medium-term lending facility (MLF) and 7-day reverse
repo rates by 20 bps each to 2.75% and 2.00% respectively over the same Table 1: Real GDP Growth (%)
period. At the March 2023 National People’s Congress (NPC) meeting, the
Chinese government set the 2023 annual growth target at around 5.0% and 2020 2021 2022 2023F*
the fiscal deficit at 3.0% of GDP compared to 2.8% of GDP in 2022. China 2.2 8.4 3.0 5.6
Taiwan’s real GDP contracted by 2.9% in 1Q 2023 compared to a growth Taiwan 3.4 6.5 2.5 1.6
of 2.5% in 2022 amid a decline in exports and investment spending. Led
by a moderation in transportation and food costs, the inflation rate eased Indonesia -2.1 3.7 5.3 5.0
to 2.5% in the first four months of 2023 from 3.0% in 2022. During the Korea -0.7 4.1 2.6 1.2
March 2022 - March 2023 period, Taiwan’s central bank has raised its policy
interest rate by a total of 75 bps to 1.875% from 1.125% amid concerns over * Bloomberg consensus forecasts as at 31 May 2023
elevated inflation. As at end-May 2023, the valuations of selected North and South-East Asian
Indonesia’s real GDP growth moderated to 5.0% in 1Q 2023 from 5.3% equity markets were generally at discounts to their historical averages.
in 2022 amid slower consumer and investment spending. Meanwhile, its
Given the above factors, the Fund will continue to rebalance its investment
inflation rate increased to 5.0% in the first four months of 2023 from 4.2% in
portfolio accordingly with the objective of seeking long-term capital
2022 on higher food, housing and transportation costs. During the August
appreciation by investing in blue chips and growth stocks in domestic and
2022 - January 2023 period, Bank Indonesia raised its key interest rate by
regional markets.
a total of 225 bps to 5.75% on concerns over higher inflationary pressures.
South Korea’s real GDP growth moderated to 0.8% in 1Q 2023 from 2.6% in Note: Q = Quarter
2022 amid a decline in exports and slower growth in government spending.
Meanwhile, the inflation rate eased to 4.3% in the first four months of 2023 Cross-Trade Transactions
from 5.1% in 2022, led by lower transportation costs. In response to elevated No cross-trade transactions were undertaken by PFES during portfolio
inflation, the Bank of Korea raised its policy rate to 3.50% with 10 hikes rebalancing activities over the financial year under review.
totalling 300 bps over the August 2021 - January 2023 period.
Over the March 2022 - May 2023 period, the Fed has raised the Federal Policy on Soft Commissions
funds rate (FFR) by a total of 500 bps to a target range of 5.00%-5.25% to
The management company may receive goods and services which bring a
curb inflationary pressures. At the Federal Open Market Committee (FOMC)
direct benefit or advantage to the management of the funds and may be in
meeting on 2-3 May 2023, the Fed emphasised that future monetary policy
the form of research and advisory services that assist in the decision-making
decisions will be data dependent; and it will continue to monitor the cumulative
process relating to the Fund’s investments.
effect of its policy tightening on the economy, inflation and the banking sector.
During the financial year under review, PFES has received soft commissions
Outlook and Investment Strategy from brokers/dealers who have also executed trades for other funds managed
Looking ahead, the equity markets’ performance will depend on the pace by Public Mutual. The soft commissions were utilised for goods and services
of economic growth and corporate earnings momentum in their respective which include the provision of financial data, price quotation on securities,
markets. On the global front, investors will monitor the potential peaking of benchmarks for fund performance measurement, research services and
interest rates this year as well as geopolitical developments. Meanwhile, the investment-related publications to assist the Manager in the investment
re-opening of China’s economy may help to cushion the slowdown in global decision-making process. The soft commissions received were for the benefit
and regional economic growth. of the funds and there were no churning of trades.

Financial market conditions have generally stabilised following the liquidity Securities Financing Transactions
issues faced by selected U.S. regional banks and Switzerland-based Credit
Suisse Group in March 2023. These developments in the banking sector PFES has not undertaken any securities lending or repurchase transactions
could result in tighter credit conditions for households and businesses. during the financial year under review.

With potentially tighter credit conditions and the risk of a slower-than-expected Changes Made to the Fund’s Prospectus
U.S. GDP growth for 2023, the Fed may pause its interest rate hikes to take
into account the cumulative impact from the tightening of its monetary policy There were no changes made to PFES’s prospectus during the financial
on labour market conditions, inflationary pressures and the banking sector. year under review.

10 • Public Far-East Select Fund Public Far-East Select Fund • 11

Trustee’s Report Statement By Manager

To the unit holders of PUBLIC FAR-EAST SELECT FUND (“Fund”),
We have acted as Trustee of the Fund for the financial year ended
31 May 2023 and we hereby confirm to the best of our knowledge, after
having made all reasonable enquiries, PUBLIC MUTUAL BERHAD has
operated and managed the Fund during the year covered by these financial
statements in accordance with the following:
1. Limitations imposed on the investment powers of the management
company under the deed, securities laws and the Guidelines on Unit
Trust Funds;
2. Valuation and pricing is carried out in accordance with the deed; and
3. Any creation and cancellation of units are carried out in accordance with
the deed and any regulatory requirement.
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 2023 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 FAR-EAST SELECT FUND
as at 31 May 2023 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

For AMANAHRAYA TRUSTEES BERHAD

ZAINUDIN BIN SUHAIMI

Chief Executive Officer TAN SRI DATO’ SRI DR. TAY AH LEK
Date: 19 June 2023

QUAH POH KEAT

27 June 2023

12 • Public Far-East Select Fund Public Far-East Select Fund • 13

Independent Auditors’ Report
Independent auditors’ report to the Unitholders of
PUBLIC FAR-EAST SELECT FUND
Report on the audit of the financial statements
Opinion
We have audited the financial statements of PUBLIC FAR-EAST SELECT
FUND (“the Fund”), which comprise the statement of assets and liabilities as
at 31 May 2023, 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 17 to 37.
In our opinion, the accompanying financial statements give a true and fair
view of the financial position of the Fund as at 31 May 2023, 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 (“the Manager”) 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.
14 • Public Far-East Select Fund
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 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’ 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:
• 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.
Public Far-East Select Fund • 15
Independent Auditors’ Report (cont’d) Statement Of Assets And Liabilities
As at 31 May 2023

Report on the audit of the financial statements (cont’d) Note 2023 2022
Auditors’ responsibilities for the audit of the financial statements (cont’d) MYR’000 MYR’000
Assets
• Conclude on the appropriateness of the Manager’s use of the going Investments 4 900,435 1,207,741
concern basis of accounting and, based on the audit evidence obtained, Due from brokers/financial institutions, net 6 21,079 -
whether a material uncertainty exists related to events or conditions Other receivables 885 2,821
that may cast significant doubt on the Fund’s ability to continue as a Deposits with financial institutions 7 74,688 57,480
going concern. If we conclude that a material uncertainty exists, we Cash at banks 8 99,900 51,466
are required to draw attention in our auditors’ report to the related 1,096,987 1,319,508
disclosures in the financial statements of the Fund or, if such disclosures
Liabilities
are inadequate, to modify our opinion. Our conclusions are based on the
Due to brokers/financial institutions, net 6 9,655 22,270
audit evidence obtained up to the date of our auditors’ report. However,
Due to the Manager, net 9 2,335 3,038
future events or conditions may cause the Fund to cease to continue
Provision for taxation 567 199
as a going concern. Other payables 177 122
• Evaluate the overall presentation, structure and content of the financial Distribution payable - 33,974
statements of the Fund, including the disclosures, and whether the 12,734 59,603
financial statements of the Fund represent the underlying transactions
and events in a manner that achieves fair presentation. Total net assets 1,084,253 1,259,905

We communicate with the Manager regarding, among other matters, the Net asset value (“NAV”) attributable
planned scope and timing of the audit and significant audit findings, including to unitholders (Total equity) 10 1,084,253 1,259,905
any significant deficiencies in internal control that we identify during our audit.
Units in circulation (in ’000) 11 4,118,275 4,246,690
Other matters
NAV per unit (in sen) 26.33 29.67
This report is made solely to the unitholders of the Fund, as a body, in
accordance with the 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. The accompanying notes are an integral part of this statement.

Ernst & Young PLT Ng Sue Ean

202006000003 (LLP0022760-LCA) & AF 0039 No. 03276/07/2024 J
Chartered Accountants Chartered Accountant

Kuala Lumpur, Malaysia

27 June 2023

16 • Public Far-East Select Fund Public Far-East Select Fund • 17

Statement Of Income And Expenditure Statement Of Changes In Net Asset Value
For the Financial Year Ended 31 May 2023 For the Financial Year Ended 31 May 2023

Note 2023 2022 Unitholders’ Accumulated

MYR’000 MYR’000 Note capital losses Total
Income MYR’000 MYR’000 MYR’000
Interest income 1,595 1,315
Distribution income 7 490 As at 1 June 2021 1,353,727 292,831 1,646,558
Dividend income 22,398 20,884 Creation of units 45,868 - 45,868
Net loss from investments 4 (137,573) (294,041) Cancellation of units (91,671) - (91,671)
Net realised/unrealised foreign exchange Net loss after taxation - (306,876) (306,876)
gain/(loss) 3,038 (2,358) Distribution 16 - (33,974) (33,974)

(110,535) (273,710) As at 31 May 2022 1,307,924 (48,019) 1,259,905

Less: Expenses
Trustee’s fee 13 600 600
Management fee 14 18,008 23,229 As at 1 June 2022 1,307,924 (48,019) 1,259,905
Audit fee 7 7 Creation of units 34,669 - 34,669
Tax agent’s fee 3 57 Cancellation of units (65,853) - (65,853)
Brokerage fee 10,077 7,168 Net loss after taxation - (144,468) (144,468)
Administrative fees and expenses 305 399 As at 31 May 2023 1,276,740 (192,487) 1,084,253
29,000 31,460
Net loss before taxation (139,535) (305,170)
Taxation 15 (4,933) (1,706) The accompanying notes are an integral part of this statement.

Net loss after taxation (144,468) (306,876)

Net loss after taxation is made up
as follows:
Realised (118,024) 31,050
Unrealised (26,444) (337,926)
(144,468) (306,876)
Distribution for the financial year 16 - 33,974

The accompanying notes are an integral part of this statement.

18 • Public Far-East Select Fund Public Far-East Select Fund • 19

Statement Of Cash Flows Notes To The Financial Statements
For the Financial Year Ended 31 May 2023 31 May 2023

2023 2022 1. The Fund, The Manager and Their Principal Activities
MYR’000 MYR’000 The Public Far-East Select Fund (hereinafter referred to as “the
Cash flows from operating activities Fund”) was set up pursuant to the execution of a Supplemental Master
Proceeds from sale of investments 1,371,753 1,005,081
Deed dated 25 October 2005 between the Manager, Public Mutual
Purchase of investments (1,247,120) (965,286)
Berhad, the Trustee, AmanahRaya Trustees Berhad and the registered
Subscription of rights (301) (132)
unitholders of the Fund. The Fund is governed by a Master Deed dated
Capital repayment received 1,962 779
Maturity of deposits 14,597,423 18,537,305 28 January 1999 and subsequent Supplemental Master Deeds
Placement of deposits (14,614,631) (18,521,401) (collectively referred to as “Deeds”).
Interest income received 1,592 1,315 The Fund’s objective is to seek long-term capital appreciation by
Net distribution income received 7 490 investing in blue chips and growth stocks in domestic and regional
Net dividend income received 22,239 19,332 markets. The Fund invests in investments as defined in the Deeds.
Trustee’s fee paid (600) (600) The Fund was launched on 22 November 2005 and will continue its
Management fee paid (18,226) (23,743) operations until terminated by the Trustee as provided in the Master
Audit fee paid (7) (7) Deed.
Tax agent’s fee paid (3) (59)
Payment of other fees and expenses (255) (431) The Manager of the Fund is Public Mutual Berhad, a company
Taxation paid (2,365) - incorporated in Malaysia. Its principal activities are the management
of unit trusts and the sale of trust units. Its ultimate holding company is
Net cash inflow from operating activities 111,468 52,643 Public Bank Berhad, a licensed bank incorporated in Malaysia and listed
Cash flows from financing activities on the Main Market of Bursa Malaysia Securities Berhad.
Cash proceeds from units created 34,669 46,287
Cash paid on units cancelled (66,338) (90,608) 2. Summary of Significant Accounting Policies
Distribution paid (33,974) (35,149)
(a) Basis of Preparation
Net cash outflow from financing activities (65,643) (79,470)
The financial statements of the Fund have been prepared under
Net increase/(decrease) in cash and cash the historical cost convention, as modified by the revaluation of
equivalents 45,825 (26,827) financial assets and financial liabilities at fair value and comply
Effect of changes in foreign exchange rates 2,609 (1,347) with Malaysian Financial Reporting Standards (“MFRS”) and
Cash and cash equivalents at the beginning International Financial Reporting Standards (“IFRS”).
of the financial year 51,466 79,640
The Fund has adopted MFRSs, Amendments and Issue Committee
Cash and cash equivalents at the end of (“IC”) Interpretations which were effective from periods beginning
the financial year 99,900 51,466 on or after 1 January 2022. The adoption of these MFRSs,
Amendments and IC Interpretations do not have any significant
impact on the financial statements of the Fund.
The accompanying notes are an integral part of this statement. The Fund will adopt the following MFRSs and Amendments when
they become effective in the respective financial periods and these
MFRSs and Amendments are not expected to have material impact
to the financial statements of the Fund upon the initial application.
Effective dates
for financial periods
beginning on or after
MFRS 17 - Insurance Contracts * 1 January 2023
Amendments to MFRS 17 Insurance 1 January 2023
Contracts *
Initial Application of MFRS 17 and MFRS 9 1 January 2023
- Comparative Information (Amendment to
MFRS 17 Insurance Contracts) *
Classification of Liabilities as Current or 1 January 2023
Non-current (Amendments to MFRS 101
Presentation of Financial Statements)

20 • Public Far-East Select Fund Public Far-East Select Fund • 21

Notes To The Financial Statements Notes To The Financial Statements
31 May 2023 31 May 2023

2. Summary of Significant Accounting Policies (cont’d) 2. Summary of Significant Accounting Policies (cont’d)
(a) Basis of Preparation (cont’d) (d) Financial Instruments (cont’d)

Effective dates A financial asset or financial liability is considered to be held for

for financial periods trading if:
beginning on or after • It is acquired or incurred principally for the purpose of selling
Disclosure of Accounting Policies 1 January 2023 or repurchasing it in the near term; or
(Amendments to MFRS 101 Presentation • On initial recognition, it is part of a portfolio of identified financial
of Financial Statements) instruments that are managed together and for which, there is
Definition of Accounting Estimates 1 January 2023 evidence of a recent actual pattern of short-term profit-taking;
(Amendments to MFRS 108 Accounting or
Policies, Changes in Accounting Estimates
and Errors) • It is a derivative (except for a derivative that is a financial
Deferred Tax related to Assets and Liabilities 1 January 2023 guarantee contract or a designated and effective hedging
arising from a Single Transaction instrument).
(Amendments to MFRS 112 Income Taxes) * i) Financial Assets
International Tax Reform - Pillar Two Model 1 January 2023
Rules (Amendments to MFRS 112 Income The Fund determines the classification of its financial assets at
Taxes) * initial recognition, and the categories include financial assets
Lease Liability in a Sale and Leaseback 1 January 2024 measured at fair value through profit or loss (“FVTPL”) and
(Amendments to MFRS 16 Leases) * financial assets measured at amortised cost.
Non-current Liabilities with Covenants 1 January 2024 When financial assets are recognised initially on trade date,
(Amendments to MFRS 101 Presentation they are measured at fair value, plus, in the case of financial
of Financial Statements) * assets not at FVTPL, directly attributable transaction costs.
Sale or Contribution of Assets between an To be announced
Investor and its Associate or Joint Venture Financial assets are derecognised on trade date when the
(Amendments to MFRS 10 and MFRS 128) * rights to receive cash flows from the investments have expired
or the Fund has transferred substantially all risks and rewards
* These MFRSs and Amendments are not relevant to the Fund.
of ownership.
(b) Accounting Estimates and Judgements Financial Assets at FVTPL
The preparation of the Fund’s financial statements requires the A financial asset is classified as FVTPL if it meets the definition
Manager to make judgements, estimates and assumptions that of held for trading. Subsequent to initial recognition, financial
affect the reported amounts of revenues, expenses, assets and assets at FVTPL are measured at fair value. Changes in the
liabilities, and the disclosure of contingent liabilities at the reporting fair value of those financial instruments are recorded in “Net
date. However, uncertainty about these assumptions and estimates gain or loss on financial assets at FVTPL”. Interest earned,
could result in outcomes that could require a material adjustment to distribution income and dividend revenue elements of such
the carrying amount of an asset or a liability in the future. instruments are recorded separately in “Interest income”,
“Distribution income” and “Dividend income” respectively.
There are no major judgements nor key assumptions concerning
Exchange differences on financial assets at FVTPL are not
the future and other key sources of estimation uncertainty at the
recognised separately in profit or loss but are included in net
reporting date, that may cast significant doubt upon the Fund’s
gain or net loss on changes in fair value of financial assets
ability to continue as a going concern. Therefore, the financial
at FVTPL.
statements continue to be prepared on a going concern basis.
Financial Assets at amortised cost
(c) Fair Value Measurement A financial asset is measured at amortised cost if it is held
Fair value is the price that would be received to sell an asset or within a business model whose objective is to hold financial
paid to transfer a liability in an orderly transaction between market assets in order to collect contractual cash flows and its
participants at the measurement date. contractual terms give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal
(d) Financial Instruments
amount outstanding. The Fund includes in this category
Financial assets and financial liabilities are recognised in the amount due from brokers/financial institutions, amount due
Statement of Assets and Liabilities when, and only when, the Fund from the Manager, other receivables, deposits with financial
becomes a party to the contractual provisions of the instrument. institutions and cash at banks.

22 • Public Far-East Select Fund Public Far-East Select Fund • 23

Notes To The Financial Statements
31 May 2023
2. Summary of Significant Accounting Policies (cont’d)
(d) Financial Instruments (cont’d)
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.
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.
24 • Public Far-East Select Fund
Notes To The Financial Statements
31 May 2023
2. Summary of Significant Accounting Policies (cont’d)
(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 rate 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.
(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.
Public Far-East Select Fund • 25
Notes To The Financial Statements Notes To The Financial Statements
31 May 2023 31 May 2023

3. Financial Risk and Capital Management Policies (cont’d) 3. Financial Risk and Capital Management Policies (cont’d)
(a) Market Risk (d) Liquidity Risk
Market risk arises when the value of the securities fluctuates in The Fund maintains sufficient level of liquid assets to meet
response to the activities of individual companies, and general anticipated payments and redemption by unitholders. Liquid assets
market or economic environments. Market risk is managed comprise cash, deposits with licensed financial institutions and other
through portfolio diversification and changes in asset allocation. instruments, which can be converted into cash within 7 days. The
It comprises the following risks: Fund’s policy is to maintain a prudent level of liquid assets and
monitoring of the daily creation and cancellation of units so as to
i) Price Risk manage liquidity risk.
Price risk is the risk that prices of equity securities and The Fund’s financial liabilities have contractual maturities of not
collective investment schemes (equity) rise or fall as a result more than six (6) months.
of changes in factors specific to a particular security or general
market conditions. (e) Capital Management
The increase/(decrease) in the NAV attributable to unitholders Capital is represented by unitholders’ subscription to the Fund.
as at reporting date, assuming equity and collective investment The amount of capital can change significantly on a daily basis
schemes’ prices change by +/(-) 5% with all other variables held as the Fund is subject to daily redemption and subscription at
constant, is +/(-) MYR45,022,000 (2022: +/(-) MYR60,387,000). the discretion of unitholders. The Manager manages the Fund’s
This analysis is for illustration purpose only and not an capital in accordance to its objective as stated in Note 1, while
indication of future variances. maintaining sufficient liquidity to meet unitholders’ redemption as
explained in Note (d) above.
ii) Currency Risk
The Fund may invest in financial instruments denominated in 4. Investments
currencies other than its functional currency. Consequently,
the Fund is exposed to risks arising from changes in the 2023 2022
MYR’000 MYR’000
exchange rate of its functional currency relative to other
foreign currencies that might significantly impact the value of Financial assets at FVTPL
the Fund’s assets or liabilities denominated in currencies other - Equity securities 889,029 1,197,313
than Malaysian Ringgit. - Collective investment schemes 11,406 10,428

The increase/(decrease) in the NAV attributable to unitholders 900,435 1,207,741

as at reporting date, assuming exchange rates of foreign
currencies fluctuate by +/(-) 5% with all other variables held
constant, is +/(-) MYR50,051,000 (2022: +/(-) MYR61,459,000).
This analysis is for illustration purpose only and not an
indication of future variances.
(b) Credit and Counterparty Risk
The Fund’s investments are carried at fair value, which were determined
using prices in active markets for identical assets.
Quoted equity securities
Fair value is determined directly by reference to the published market
price at the reporting date.

Credit risk refers to the ability of an issuer to make timely payments
of interest and principal. Counterparty risk refers to the ability of a
counterparty to make timely payment of proceeds from realisation
of investments. The Manager manages credit and counterparty
risks by setting exposure limits and undertaking periodical
credit evaluation to assess the creditworthiness of issuers and
counterparties.
(c) Single Issuer Risk
The Fund is restricted to invest in securities issued by any issuer
of not more than a certain percentage of its net asset value. Under
such restriction, the exposure risk to the securities of a single
issuer is minimised.
The market prices of quoted equity securities are determined by
reference to information made publicly available by the respective
stock exchanges.
Unquoted collective investment schemes
Fair value is determined based on the published net asset value per
unit at the reporting date.
FINANCIAL INSTRUMENTS - 31 MAY 2023
The equity securities held by the Fund are categorised based on
their principal business activities according to the Bloomberg Sector
Classification System as at the reporting date of the Statement of
Assets and Liabilities.

26 • Public Far-East Select Fund Public Far-East Select Fund • 27

Notes To The Financial Statements Notes To The Financial Statements
31 May 2023 31 May 2023

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 %
QUOTED EQUITY QUOTED EQUITY
SECURITIES SECURITIES (cont’d)
China Hong Kong (cont’d)
Consumer, Cyclical Financial (cont’d)
Contemporary Amperex Ping An Insurance
Technology Co., (Group) Company of
Limited 53 10,316 7,600 0.7 China, Ltd 369 12,493 10,807 1.0
Consumer, Non-cyclical 164,228 138,521 12.8
Kweichow Moutai Co.,
Ltd 15 19,761 15,970 1.5 Industrial
Anhui Conch Cement
Hong Kong Co., Ltd 344 9,642 4,217 0.4
Communications Technology
Alibaba Group Holding NetEase, Inc 381 32,869 29,772 2.7
Ltd - SW 1,588 178,559 72,900 6.7
Baidu, Inc - SW 194 16,396 13,650 1.3 Indonesia
China Mobile Limited 293 11,331 10,990 1.0 Communications
JD.com, Inc - SW 242 31,665 17,946 1.7 PT Telkom Indonesia
Meituan 293 45,419 19,028 1.7 (Persero) Tbk 12,750 16,633 15,865 1.5
Tencent Holdings Ltd 330 70,774 60,402 5.6
Consumer, Cyclical
354,144 194,916 18.0 PT Astra International
Consumer, Cyclical Tbk 7,424 15,149 14,748 1.3
BYD Company Limited 47 5,817 6,478 0.6 Financial
Galaxy Entertainment PT Bank Mandiri
Group Ltd 913 32,424 26,121 2.4 (Persero) Tbk 12,340 19,769 19,194 1.8
38,241 32,599 3.0 Korea
Consumer, Non-cyclical Communications
WuXi Biologics (Cayman) Naver Corporation 29 20,011 19,896 1.9
Inc 94 3,861 2,218 0.2 Samsung SDI Co., Ltd 4 10,453 10,956 1.0
Financial 30,464 30,852 2.9
AIA Group Limited 617 29,890 27,324 2.5
China Construction Bank Consumer, Cyclical
Corporation 8,770 27,633 25,893 2.4 LG Energy Solution, Ltd 11 22,277 23,105 2.1
China Life Insurance Technology
Co. Ltd 1,130 10,244 8,803 0.8 Samsung Electronics
China Resources Land Co Ltd 372 80,319 92,311 8.5
Ltd 1,120 24,659 19,339 1.8 SK Hynix Inc 37 12,880 13,964 1.3
Hong Kong Exchanges
and Clearing Ltd 220 50,017 37,098 3.4 93,199 106,275 9.8
Industrial and Singapore
Commercial Bank of
China Limited 3,749 9,292 9,257 0.9 Financial
DBS Group Holdings
Limited 137 15,239 14,130 1.3

28 • Public Far-East Select Fund Public Far-East Select Fund • 29

Notes To The Financial Statements Notes To The Financial Statements
31 May 2023 31 May 2023

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 %
QUOTED EQUITY COLLECTIVE
SECURITIES (cont’d) INVESTMENT
SCHEMES
Taiwan
Equity Funds managed
Communications
Accton Technology Corp 29 1,270 1,537 0.1 by the Manager
Public Asia Ittikal Fund 5,911 2,174 2,221 0.2
Financial Public Islamic Asia
CTBC Financial Holding Dividend Fund 6,509 2,181 2,187 0.2
Company Ltd 3,735 13,134 13,623 1.2 Public Islamic Asia
Industrial Tactical Allocation Fund 4,839 2,174 2,204 0.2
Delta Electronics, Inc 265 12,003 12,589 1.2 Public Wholesale
Hon Hai Precision Vietnam Equity Fund 4,347 4,368 4,794 0.4
Industry Co., Ltd 1,050 16,653 16,785 1.5 10,897 11,406 1.0
LOTES Co., Ltd 71 9,884 9,301 0.9
Unimicron Technology TOTAL 1,083,721 900,435 83.0
Corp 717 16,894 19,426 1.8
55,434 58,101 5.4 Cost is translated to the Fund’s functional currency based on the
exchange rates at the reporting date of the Statement of Assets and
Technology Liabilities.
Alchip Technologies
Limited 41 7,149 10,285 0.9 Net (loss) from investments for the financial year is as follows:
ASE Technology Holding
Co., Ltd 636 10,068 10,644 1.0 2023 2022
ASMedia Technology Inc 57 10,684 10,035 0.9 MYR’000 MYR’000
MediaTek Inc 151 17,157 17,203 1.6 Financial assets at FVTPL
Taiwan Semiconductor - realised (loss)/gain on disposal (109,123) 43,727
Manufacturing Co., Ltd 1,162 86,064 97,324 9.0 - unrealised (loss) on changes in fair
United Microelectronics value (28,450) (337,768)
Corp 532 3,995 4,136 0.4
Wiwynn Corporation 74 12,352 12,867 1.2 (137,573) (294,041)

147,469 162,494 15.0

5. Fair Value of Financial Instruments
Thailand
The Fund uses the following hierarchy for determining and disclosing
Consumer, Cyclical the fair value of financial instruments by valuation technique:
Home Product Center
Public Company Level 1: Quoted prices per respective stock markets for identical
Limited - Foreign 1,800 3,459 3,292 0.3 assets or liabilities.
UNQUOTED EQUITY Level 2: Inputs other than quoted prices included within Level 1 that
SECURITIES are observable for the asset or liability, either directly (as
Hong Kong prices) or indirectly (derived from prices).

Basic Materials Level 3: Inputs for the asset or liability other than observable market
China Forestry Holdings data.
Co., Ltd [N1] 2,540 6,266 - -
As of end of the financial year, the Fund held the following financial
N1: This security was delisted on 24 February 2017 and its valuation has instruments carried at fair value on the Statement of Assets and
been marked to zero based on the method and basis as approved Liabilities:
by the Trustee.
30 • Public Far-East Select Fund Public Far-East Select Fund • 31
Notes To The Financial Statements Notes To The Financial Statements
31 May 2023 31 May 2023

5. Fair Value of Financial Instruments (cont’d) 8. Cash at Banks

Level 1 Level 2 Total 2023 2022
MYR’000 MYR’000 MYR’000 MYR’000 MYR’000
Cash balances in licensed banks
As at 31 May 2023 - related parties 12,263 15,993
Financial assets at FVTPL - others 87,637 35,473
- Equity securities 889,029 - 889,029
- Collective investment 99,900 51,466
schemes - 11,406 11,406
889,029 11,406 900,435 9. Due to the Manager, Net
As at 31 May 2022 The net amount due to the Manager represents amount payable for units
Financial assets at FVTPL cancelled and/or amount payable for management fee, net of amount
- Equity securities 1,197,313 - 1,197,313 receivable for the units created. Amounts for units created/cancelled
- Collective investment are receivable/payable within 7 business days of creation/cancellation.
schemes - 10,428 10,428 Management fee is payable on a monthly basis.

1,197,313 10,428 1,207,741 10. Net Asset Value Attributable to Unitholders (Total Equity)
There were no transfers between Level 1 and Level 2 during the current 2023 2022
and previous financial year. MYR’000 MYR’000
The carrying amounts of financial assets and financial liabilities, Unitholders’ capital 1,276,740 1,307,924
other than above, approximate fair values due to relatively short term Accumulated (losses) (192,487) (48,019)
maturities of these financial instruments. 1,084,253 1,259,905
6. Due from/to Brokers/Financial Institutions, Net Accumulated (losses)
- realised (losses)/reserves (67,151) 50,873
2023 2022 - unrealised (losses) (125,336) (98,892)
MYR’000 MYR’000
Amount due from (192,487) (48,019)
- a related financial institution 15,844 -
- a related stockbroking company 5,235 -
11. Units in Circulation
21,079 -
As of end of the financial year, the total number of units in circulation
Amount due to other stockbroking is as follows:
companies 9,655 22,270
2023 2022
No. of units No. of units
7. Deposits with Financial Institutions (in ’000) (in ’000)
2023 2022 At beginning of the financial year 4,246,690 4,393,599
MYR’000 MYR’000 Creation of units 119,459 125,339
Deposits with a related licensed financial Cancellation of units (247,874) (272,248)
institution 74,688 57,480
At end of the financial year 4,118,275 4,246,690
Weighted average rates of return for the financial year and the average
remaining maturities of deposits as of end of the financial year are as 12. Holdings of Units by the Manager
follows:
As of end of the financial year, the total number and value of units held
Weighted Average Average Remaining
legally by the Manager are as follows:
Rates of Return Maturities
2023 2022
2023 2022 2023 2022
No. of units No. of units
% % Day Day
(in ’000) MYR’000 (in ’000) MYR’000
Money market deposits,
less than 1 year 2.62 1.78 1 1 The Manager 30 8 89 26

32 • Public Far-East Select Fund Public Far-East Select Fund • 33

Notes To The Financial Statements Notes To The Financial Statements
31 May 2023 31 May 2023

13. Trustee’s Fee 15. Taxation (cont’d)

Trustee’s fee is computed daily based on 0.06% per annum of the net 2023 2022
asset value, subject to a minimum fee of MYR18,000 per annum and a MYR’000 MYR’000
maximum fee of MYR600,000 per annum. Taxation at Malaysian statutory rate - 24% (33,736) (75,798)
- 3% 31 327
14. Management Fee Tax effects of:
Management fee is computed daily based on 1.60% per annum of the net - loss not allowed for tax deduction 31,916 68,248
- expenses not deductible for tax
asset value. Where the Fund invests in a collective investment scheme
purposes 2,630 1,968
managed by the Manager, the management fee is charged only once.
- restriction on tax deductible expenses
for unit trust funds 3,483 5,024
15. Taxation - tax deductible expenses not fully
2023 2022 utilised - 558
MYR’000 MYR’000 - tax credit allowed under section 132
Malaysian tax or 133 of the ITA (1,613) (128)
Previous financial year adjustment 22 -
- current financial year charge 2,711 199
- previous financial year adjustment 22 - 2,733 199
Foreign withholding tax
2,733 199 - current financial year charge 2,200 1,778
Foreign withholding tax - reclaim of withholding tax for prior
- current financial year charge 2,200 1,778 financial years - (271)
- reclaim of withholding tax for prior
financial years - (271) Tax expense 4,933 1,706

2,200 1,507
16. Distribution
4,933 1,706
Distribution declared on 31 May 2022 to unitholders was derived from
Domestic income tax is calculated at the Malaysian statutory tax rate of the following sources:
24% of the estimated assessable income for the financial year.
2022
Effective 1 January 2022, the income arising from sources outside MYR’000
Malaysia and received in Malaysia by the Fund will be subject to income
Interest income 1,310
tax in Malaysia pursuant to the Income Tax Act 1967 (ITA). Pursuant
Distribution income 490
to subsection 6(1)(p) and Part XX of Schedule 1 of the ITA, Malaysian
Dividend income 12,240
income tax on income received from outside Malaysia for the period
Net realised gain on sale of investments 43,727
from 1 January 2022 to 30 June 2022, is charged at the rate of 3% of Previous financial year’s realised gain 7,667
gross. Malaysian income tax on income received from outside Malaysia
after 30 June 2022 is charged at the prevailing statutory tax rate of 24% 65,434
of the assessable income. Less: Expenses (31,460)
The Malaysian taxation charge for the current financial year is calculated 33,974
at the applicable statutory tax rate on taxable income received from
outside Malaysia after 31 December 2021, net of applicable allowable Gross distribution per unit (sen) 0.8000
expenses and deduction of credit allowed under section 132 or 133 of
the ITA, if any. Net distribution per unit (sen) 0.8000

A reconciliation of income tax expense applicable to net (loss) before

Included in distribution for the financial year ended 31 May 2022 was
taxation at the statutory income tax rate to income tax expense at the
an amount of MYR7,667,000 made from the previous financial year’s
effective income tax rate of the Fund is as follows:
realised gain. The Fund has recorded unrealised losses amounting to
2023 2022 MYR98,892,000 as at end of the previous financial year.
MYR’000 MYR’000
Net (loss) before taxation (139,535) (305,170)

34 • Public Far-East Select Fund Public Far-East Select Fund • 35

Notes To The Financial Statements Notes To The Financial Statements
31 May 2023 31 May 2023

17. Transactions with Related and Other Brokers/Financial 18. Total Expense and Portfolio Turnover Ratios (cont’d)
Institutions (b) Portfolio Turnover Ratio (“PTR”)
Percent The PTR for the financial year is 1.16 times (2022: 0.67 times). It
Percent Brokerage of Total represents the average of the total acquisitions and disposals of
Value of of Total Fees and Fees and the investments in the Fund for the financial year over the average
Name Trade Trade Commissions Commissions net asset value of the Fund calculated on a daily basis.
MYR’000 % MYR’000 %
Public Securities
Limited (related
19. Segment Information
party) 571,620 22 1,429 20 For management purposes, the Fund is organised into one main
Macquarie operating segment, which invests in various financial instruments and
Securities the analysis of the Fund’s investment income is as follows:
(Australia)
Limited 361,565 14 904 13 2023 2022
J.P. Morgan MYR’000 MYR’000
Securities plc 325,939 12 926 13 (a) Investment Type
UBS Securities Equity securities (111,025) (270,843)
Pte. Ltd. Taipei Collective investment schemes (1,105) (4,182)
Branch 287,857 11 864 12 Deposits 1,595 1,315
CLSA Singapore (110,535) (273,710)
Pte Ltd 202,919 8 607 9
(b) Regional Locations
Public Bank
Malaysia 1,124 (830)
(Hong Kong) Asia Pacific (108,791) (256,405)
Limited (related United States (2,868) (16,475)
party) 188,485 7 471 7
Public Investment (110,535) (273,710)
Bank Berhad
(related party) 127,419 5 319 4
Macquarie
Capital
Securities
Limited, Taiwan
Branch 120,791 5 362 5
Macquarie
Securities
Korea Limited 116,172 4 348 5
CLSA Securities
Korea Ltd 102,044 4 306 4
Others 213,294 8 584 8
2,618,105 100 7,120 100

18. Total Expense and Portfolio Turnover Ratios

(a) Total Expense Ratio (“TER”)
The TER for the financial year is 1.67% (2022: 1.65%). It is the
total expenses expressed as an annual percentage of the Fund’s
average net asset value.

36 • Public Far-East Select Fund Public Far-East Select Fund • 37

Corporate Information Corporate Information

Manager Board of Directors

Public Mutual Berhad (197501001842 (23419-A))
Tan Sri Dato’ Sri Dr. Tay Ah Lek, Chairman
Registered Office Mr. Quah Poh Keat
8th Floor, Menara Public Bank 2
No. 78 Jalan Raja Chulan Dato’ Mohammed Najeeb Bin Abdullah
50200 Kuala Lumpur
Tel: 603-20226800 Dato’ Mohd Hanif Bin Sher Mohamed
Fax: 603-20226900
Ms. Gladys Leong
Trustee of the Fund Ms. Yeoh Kim Hong
AmanahRaya Trustees Berhad
Tingkat 14, Wisma AmanahRaya Mr. Chiang Kang Pey
No. 2, Jalan Ampang
50508 Kuala Lumpur
Chief Executive Officer
Auditor of the Manager and the Fund Chiang Kang Pey
Ernst & Young PLT
Level 23A, Menara Milenium
Jalan Damanlela Senior Compliance Officer
Pusat Bandar Damansara
50490 Kuala Lumpur Abdul Samad Bin Jaafar - Deputy General Manager,
Compliance
Tax Adviser
KPMG Tax Services Sdn Bhd
Level 10, KPMG Tower
8, First Avenue
Bandar Utama
47800 Petaling Jaya
Selangor Darul Ehsan

38 • Public Far-East Select Fund Public Far-East Select Fund • 39

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
Bangsar
11, 15 & 17, Jalan Bangsar Utama 3, Bandar Bukit Tinggi,
Bangsar Utama,
59000 Kuala Lumpur.
Tel: 03-20225000 Fax: 03-22835739
Batu Pahat
119, Jalan Chengal,
Taman Makmur,
83000 Batu Pahat, Johor.
Tel: 07-4363500 Fax: 07-4326588
Cheras
G-3 & G-3A,
Wisma Aman Elite,
No. 3, Jalan Desa Aman 1,
Desa Aman,
56100 Cheras, Kuala Lumpur.
Tel: 03-20225000 Fax: 03-91321022
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
40 • Public Far-East Select Fund
Ipoh
37 & 39, Persiaran Greentown 4,
Greentown Business Centre,
30450 Ipoh, Perak.
Tel: 05-2462500 Fax: 05-2559859
Johor Bahru
B-19, Jalan Molek 1/5A,
Taman Molek,
81100 Johor Bahru, Johor.
Tel: 07-3607500 Fax: 07-3548600
Klang
28, 30 & 32,
Lorong Batu Nilam 3B,
41200 Klang, Selangor.
Tel: 03-20225000 Fax: 03-33235632
Kluang
3, Jalan Dato Teoh Siew Khor,
86000 Kluang, Johor.
Tel: 07-7391500 Fax: 07-7736195
Kota Bharu
PT 304 & 305,
Jalan Kebun Sultan,
15300 Kota Bharu, Kelantan.
Tel: 09-7263500 Fax: 09-7476026
Kuala Terengganu
1-C, Jalan Air Jernih,
20300 Kuala Terengganu,
Terengganu.
Tel: 09-6321500 Fax: 09-6317030
Kuantan
71 & 73, Jalan Haji Abdul Aziz,
25000 Kuantan, Pahang.
Tel: 09-5118500 Fax: 09-5161223
Network Of Public Mutual Branch And Agency Offices
West Malaysia (cont’d)
Melaka Seremban
No. 929 & 930, Jalan Merdeka, 1A & 1B, Jalan Tuanku Munawir,
Taman Melaka Raya, 70000 Seremban,
75000 Melaka. Negeri Sembilan.
Tel: 06-2855500 Fax: 06-2837354 Tel: 06-6372500 Fax: 06-7644237
Muar Shah Alam
46, Jalan Sayang, 54 & 56, Jalan Pahat G15/G,
84000 Muar, Johor. Kompleks Otomobil,
Tel: 06-9562500 Fax: 06-9536830 Persiaran Selangor,
Seksyen 15,
Penang
40200 Shah Alam, Selangor.
16, Lintang Burma,
Tel: 03-20225000 Fax: 03-55139288
10250 Pulau Tikus, Penang.
Tel: 04-2196500 Fax: 04-2295171 Sungai Petani
9D & 9E,
Puchong
Jalan Kampung Baru,
39 & 41, Jalan Puteri 1/4,
08000 Sungai Petani, Kedah.
Bandar Puteri Puchong,
Tel: 04-4558500 Fax: 04-4230663
47100 Puchong, Selangor.
Tel: 03-20225000 Fax: 03-80653010 Temerloh
10,11 & 12, 2nd Floor,
Seberang Perai
Jalan Ahmad Shah,
1797-G-04,
Bandar Sri Semantan,
Kompleks Auto World,
28000 Temerloh, Pahang.
Jalan Perusahaan, Juru Interchange,
Tel: 09-2955500 Fax: 09-2968060
13600 Prai, Penang.
Tel: 04-5407500 Fax: 04-5050005
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,
90000 Sandakan, Sabah.
Kota Kinabalu Tel: 089-231500 Fax: 089-222889
Lot 1-0-10, Lorong Api-Api 1,
Api-Api Centre, Sibu
88000 Kota Kinabalu, Sabah. 10, Lorong 2,
Tel: 088-327500 Fax: 088-238389 Jalan Tuanku Osman,
96000 Sibu, Sarawak.
Kuching
Tel: 084-363500 Fax: 084-330269
Lot 205 & 206, Section 49,
Jalan Tunku Abdul Rahman, Tawau
93100 Kuching, Sarawak. TB 4437, Lot 28,
Tel: 082-226500 Fax: 082-239825 Block D, Sabindo Square,
Jalan Dunlop,
Miri
91000 Tawau, Sabah.
D-G-16, Miri Times Square,
Tel: 089-982500 Fax: 089-765326
Marina Parkcity,
98000 Miri, Sarawak.
Tel: 085-323500 Fax: 085-416195
Public Far-East Select Fund • 41
Network Of Public Mutual Branch And Agency Offices

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: 084-652094
Bayan Baru,
11950 Bayan Lepas, Penang.
Tel: 04-6422170/1
Fax: 04-6411268

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42 • Public Far-East Select Fund Public Far-East Select Fund • 43

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44 • Public Far-East Select Fund