Principal Islamic PRS Plus

Asia Pacific Ex Japan Equity

Interim Report

For The Six Months Financial Period Ended 28 February 2022

PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

INTERIM REPORT

FOR THE SIX MONTHS FINANCIAL PERIOD ENDED 28 FEBRUARY 2022

 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

CONTENTS PAGE(S)

MEMBERS’ LETTER 1

SHARIAH ADVISER’S REPORT 2

STATEMENT BY PRS PROVIDER 3

TRUSTEE’S REPORT 4

PRS PROVIDER’S REPORT 5 - 12

Fund Objective and Policy

Performance Data

Market Review

Fund Performance

Portfolio Structure

Market Outlook

Investment Strategy

Members Statistics

Soft Commissions and Rebates

UNAUDITED STATEMENT OF COMPREHENSIVE INCOME 13

UNAUDITED STATEMENT OF FINANCIAL POSITION 14

UNAUDITED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE

TO MEMBERS 15

UNAUDITED STATEMENT OF CASH FLOWS 16

NOTES TO THE FINANCIAL STATEMENTS 17 - 32

DIRECTORY 33
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

MEMBERS’ LETTER

Dear Valued Member,

Greetings from Principal Asset Management Berhad and thank you for investing with us!

We are pleased to bring you a copy of the Interim Fund Report of the Principal Islamic PRS Plus Asia
Pacific Ex Japan Equity for the financial period ended 28 February 2022. You may also download this
report from our website at www.principal.com.my.

We are pleased to share that we continue to win accolades – the most recent recognition coming from
the Refinitiv Lipper Fund Awards 2022 with four awards where Principal Asia Titans Fund won the Best
Equity Asia Pacific ex-Japan fund award over 10 years (Malaysia Pension Funds Awards) and Principal
Islamic Asia Pacific Dynamic Equity Fund won the Best Equity Asia Pacific ex-Japan fund award in the
3-year, 5-year, and 10-year categories (Malaysia Islamic Funds Awards). Principal also won two
awards for Best Asset Manager Malaysia and Best Equity Fund Manager Malaysia at the International
Business Magazine Awards 2022.

Digital innovation is central to our strategy, as we use data and technology to develop the right solutions
for you. We will continue to advance our digital capabilities to provide easy access to your investment
portfolio and enable you to carry out transactions seamlessly. Please continue to check out our website
(www.principal.com.my), like our Facebook page (@PrincipalAssetMY), follow us on our Instagram
account (@principalassetmanagement_my), and LinkedIn page (Principal Asset Management Berhad)
for the latest updates, market insights and investment articles.

We appreciate your continuous support and the trust you place in us.

Yours faithfully,
for Principal Asset Management Berhad

Munirah Khairuddin
Chief Executive Officer

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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

Shariah Adviser’s Report

To the Members of Principal Islamic PRS Plus Asia Pacific Ex Japan Equity (“Fund”)

For the Six Months Financial Period ended 28 February 2022

We hereby confirm the following:

1. To the best of our knowledge, after having made all reasonable enquiries, Principal Asset
Management Berhad has operated and managed the Fund during the period covered by these
financial statements in accordance with the Shariah principles and complied with the applicable
guidelines, rulings or decisions issued by the Securities Commission Malaysia (“SC”) pertaining
to Shariah matters; and

2. The asset of the Fund comprises of instruments that have been classified as Shariah compliant.

For Amanie Advisors Sdn Bhd

Tan Sri Dr Mohd Daud Bakar

Executive Chairman

Kuala Lumpur
27 April 2022

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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

STATEMENT BY THE PRS PROVIDER TO THE MEMBERS OF

PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

We, being the Directors of Principal Asset Management Berhad (the “PRS Provider”), do hereby state
that, in the opinion of the PRS Provider, the accompanying unaudited financial statements set out on
pages 13 to 32 are drawn up in accordance with the provisions of the Deeds and give a true and fair
view of the statement of financial position of the Fund as at 28 February 2022 and of its financial
performance, changes in net assets attributable to members and cash flows for the financial period
then ended in accordance with Malaysian Financial Reporting Standards (“MFRS”) 134 - Interim
Financial Reporting and International Accounting Standards ("IAS") 34 - Interim Financial Reporting.

For and on behalf of the PRS Provider

Principal Asset Management Berhad (Company No.: 199401018399 (304078-K))

MUNIRAH KHAIRUDDIN JUAN IGNACIO EYZAGUIRRE BARAONA

Chief Executive Officer/Executive Director Director

Kuala Lumpur
27 April 2022

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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

TRUSTEE’S REPORT

TO THE MEMBERS OF PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

We have acted as Trustee for Principal Islamic PRS Plus Asia Pacific Ex Japan Equity (the “Fund”) for
the six months financial period ended 28 February 2022. To the best of our knowledge, for the financial
period under review, Principal Asset Management Berhad (the “PRS Provider”) has operated and
managed the Fund in accordance with the following: -

(a) limitations imposed on the investment powers of the PRS Provider under the Deed(s), the
Securities Commission’s Guidelines on Private Retirement Schemes, the Capital Markets and
Services Act 2007 and other applicable laws;

(b) valuation and pricing for the Fund is carried out in accordance with the Deed(s) of the Fund and
any regulatory requirements; and

(c) creation and cancellation of units for the Fund are carried out in accordance with the Deed(s) of
the Fund and any regulatory requirements.

We are of the view that the distribution made during the six months financial period ended 28 February
2022 by the PRS Provider is not inconsistent with the objectives of the Fund.

For Deutsche Trustees Malaysia Berhad

SOON LAI CHING GERARD ANG

Senior Manager, Trustee Operations Chief Executive Officer

Kuala Lumpur
27 April 2022

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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

PRS PROVIDER’S REPORT

FUND OBJECTIVE AND POLICY

What is the investment objective of the Fund?

The Fund seeks to provide capital growth over the long-term by investing in a target fund with
investments in the emerging and developed markets of Asia Pacific ex Japan region that comply with
the Shariah principles.

Has the Fund achieved its objective?

The Fund is in line to achieve its long-term objective to provide capital growth as stated in the Fund
Objective section.

What are the Fund investment policy and principal investment strategy?
The Fund will invest at least 85% of its NAV in the Target Fund, a Malaysian domiciled fund established
on 2 June 2006, which invests in Shariah-compliant equities listed on the stock exchanges in the
emerging and developed markets of Asia Pacific ex Japan. The Fund may also maintain up to 15% of
its NAV in Islamic liquid assets.

The asset allocation strategy for this Fund is as follows:

▪ At least 85% of the Fund’s NAV will be invested in the Target Fund; and
▪ Up to 15% of the Fund’s NAV may be invested in Islamic liquid assets for liquidity purpose.

Information on the Target Fund

Target Fund : Principal Islamic Asia Pacific Dynamic Equity Fund
Target Fund Manager : Principal Asset Management Berhad
Target Fund Sub-Manager : Principal Asset Management (S) Pte Ltd (“Principal Singapore”)
Regulatory authority : Securities Commission Malaysia (“SC”)
Country of domicile : Malaysia

Fund category/ type

Feeder Fund - Equity (Shariah-compliant)

When was the Fund launched?

Name of Class Launch Date
Class A 12 November 2012
Class C 12 November 2012
Class X 12 November 2012

What was the size of the Fund as at 28 February 2022?

RM202.29 million (207.49 million units)

What is the Fund’s benchmark?

The Fund adheres to the benchmark of the Target Fund for performance comparison purpose. The
benchmark of the Target Fund is MSCI All Country (“AC”) Asia ex Japan Islamic Index.

Note: The Fund’s benchmark is for performance comparison purpose only. The risk profile of the Fund is not the same as
the risk profile of the benchmark.

What is the Fund distribution policy?

The Fund is not expected to pay any distribution. All income earned by members will automatically be
reinvested into the Fund.

What was the net income distribution for the six months financial period ended 28 February
2022?
The Fund distributed a total net income of RM5.17 million to members for the six months financial
period ended 28 February 2022.

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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

FUND OBJECTIVE AND POLICY (CONTINUED)

The Fund’s NAV per unit before and after distribution were as follows:

NAV per unit NAV per unit

Date (before distribution) (after distribution)
RM RM
15.10.2021
Class A 1.0730 1.0461
Class C 1.0731 1.0462
Class X 1.0730 1.0462

PERFORMANCE DATA

Details of portfolio composition of the Fund for the last three unaudited financial periods were as follows:

28.02.2022 28.02.2021 29.02.2020

% % %
Shariah-compliant collective investment
scheme 99.70 99.55 99.10
Cash and other assets 0.74 0.87 1.48
Liabilities (0.44) (0.42) (0.58)
100.00 100.00 100.00

Performance details of the Fund for the last three unaudited financial periods were as follows:

28.02.2022 28.02.2021 29.02.2020

NAV (RM Million)
- Class A 142.72 137.84 95.35
- Class C 28.82 26.63 14.35
- Class X 30.75 28.89 17.63
Units in circulation (Million)
- Class A 146.39 131.36 127.43
- Class C 29.56 25.37 19.17
- Class X 31.54 27.53 23.55
NAV per unit (RM)
- Class A 0.9749 1.0493 0.7482
- Class C 0.9750 1.0494 0.7483
- Class X 0.9750 1.0495 0.7483

01.09.2021 01.09.2020 01.09.2019

to 28.02.2022 to 28.02.2021 to 29.02.2020
Highest NAV per unit (RM)
- Class A 1.1092 1.1304 0.8066
- Class C 1.1093 1.1305 0.8067
- Class X 1.1093 1.1305 0.8067
Lowest NAV per unit (RM)
- Class A 0.9619 0.8771 0.7101
- Class C 0.9620 0.8772 0.7102
- Class X 0.9620 0.8772 0.7102

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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

PERFORMANCE DATA (CONTINUED)

Performance details of the Fund for the last three unaudited financial periods were as follows:
(continued)

Total return (%)

- Class A (6.91) 20.39 4.56
- Class C (6.91) 20.39 4.55
- Class X (6.91) 20.39 4.54

Capital growth (%)

- Class A (9.24) 16.97 4.56
- Class C (9.24) 16.99 4.55
- Class X (9.24) 16.97 4.54
Income distribution (%)
- Class A 2.57 2.92 -
- Class C 2.57 2.92 -
- Class X 2.57 2.92 -

Management Expense Ratio ("MER") (%) 0.05 0.05 0.06

Portfolio Turnover Ratio ("PTR") (times) # 0.04 0.06 0.04

# For the period under review, the Fund’s PTR decreased from 0.06 times to 0.04 times as there were
lesser trading activities.

Gross/ Net distribution per unit (sen)

Distribution on 15 October 2021
- Class A 2.69 - -
- Class C 2.69 - -
- Class X 2.69 - -

Distribution on 17 December 2020

- Class A - 2.85 -
- Class C - 2.85 -
- Class X - 2.85 -

28.02.2022 28.02.2021 29.02.2020 28.02.2019 28.02.2018

% % % % %

Annual total return

- Class A (4.70) 44.33 4.40 (8.51) 17.35
- Class C (4.70) 44.33 4.39 (8.51) 17.34
- Class X (4.71) 44.34 4.39 (8.52) 17.36

(Launch date: 12 November 2012)

Past performance is not necessarily indicative of future performance and that unit prices and investment returns may go down,
as well as up. All performance figures for the financial period have been extracted from Lipper.

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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

MARKET REVIEW (1 SEPTEMBER 2021 TO 28 FEBRUARY 2022)

The MSCI AC Asia Pacific ex Japan Islamic Index (“MIAPJ”) decreased 5.61% in US Dollar (USD)
terms closing at 1,432.48 points over the period under review.

The MIAPJ fell 4.33% in USD terms in September 2021. The US 10-year bond yield rose 18 basis
points (“bps”) to 1.49% while the Dollar Index rose 1.7% as we approach the beginning of the bond
tapering program towards year end. Meanwhile, High natural gas and coal prices have disrupted
economic activity across China and Europe.

In October 2021, the MIAPJ increased marginally by 0.05% in USD terms. The US 10-year bond yield
rose marginally by 7bps to 1.55%, its third month of ascent as we approach the US bond tapering
program towards year end. Most energy prices across oil, coal and natural gas rose during the month
on continued shortage but attempts are made to cool off prices such as that observed in coal in China.

The MIAPJ fell 2.15% in USD terms in November 2021. Concerns over inflation weighed on the markets
due to rising commodities prices and higher than expected inflation pressure continued in the
Developed markets, arising from supply shock. Moreover, with the power crunch likely to last through
fourth quarter of 2021 and resurgence of COVID-19 in China, China economic growth is likely to take
a further hit.

In December 2021, the MIAPJ increased by 4.61% in USD terms. Crude oil rebounded +10.0% after
previous month’s knee-jerk reaction from the discovery of the Omicron variant. However, for the full
year, the index declined by 1.38% in USD terms mainly due to negative performance from China with
government interventions across various areas in the economy from technology, property to education.

The MIAPJ fell 2.82% in USD terms in January 2022. Concerns on tightening monetary policy and
Russia-Ukraine tensions weighed on markets. The US 10-year bond yield rose by 27bps to 1.78% while
crude oil price rose by 17% to USD91.20 per barrel.

In February 2022, the MIAPJ fell 0.87% in USD terms. The selloff was led by the Russia-Ukraine conflict
towards the end of the month, which led to a spike in global energy prices in oil, natural gas and coal.
The US 10-year bond yield rose beyond 2% during the month before the Ukraine invasion led to a
retreat to safe-haven assets, bringing the yield back down to 1.8% subsequently.

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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

FUND PERFORMANCE

6 months to 1 year to
28.02.2022 28.02.2022
Class A Class C Class X Class A Class C Class X
% % % % % %
Income Distribution 2.57 2.57 2.57 2.57 2.57 2.57
Capital Growth (9.24) (9.24) (9.24) (7.09) (7.09) (7.10)
Total Return (6.91) (6.91) (6.91) (4.70) (4.70) (4.71)
Benchmark (5.55) (5.55) (5.55) (5.55) (5.55) (5.55)
Average Total Return (13.34) (13.34) (13.34) (4.70) (4.70) (4.70)

3 years to 5 years to
28.02.2022 28.02.2022
Class A Class C Class X Class A Class C Class X
% % % % % %
Income Distribution 5.56 5.56 5.56 5.56 5.56 5.56
Capital Growth 36.03 36.02 36.02 46.03 46.02 46.02
Total Return 43.59 43.59 43.59 54.15 54.14 54.14
Benchmark 44.80 44.80 44.80 60.08 60.08 60.08
Average Total Return 12.82 12.82 12.82 9.04 9.04 9.04

Since inception to
28.02.2022
Class A Class C Class X
% % %
Income Distribution 5.56 5.56 5.56
Capital Growth 94.98 95.00 95.00
Total Return 105.82 105.84 105.84
Benchmark 148.89 148.89 148.59
Average Total Return 8.07 8.07 8.07

For the 6-month period under review, all classes namely Class A, Class C, and Class X recorded
negative returns of 6.91%, underperforming their benchmark that decreased 5.55%.

Since Inception

Class A, C, X*
Benchmark
Aug-14

Nov-16
Aug-13

Aug-15

Aug-16

Aug-17

Aug-18

Aug-19

Aug-20

Aug-21
Nov-12
Feb-13

Nov-13
Feb-14

Nov-14
Feb-15

Nov-15
Feb-16

Feb-17

Nov-17
Feb-18

Nov-18
Feb-19

Nov-19
Feb-20

Nov-20
Feb-21

Nov-21
Feb-22
May-13

May-14

May-15

May-16

May-17

May-18

May-19

May-20

May-21

* Performance of Class A, Class C and Class X are almost the same. Slight variation was due to different timing of units
created for each of the class.
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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

FUND PERFORMANCE (CONTINUED)

Changes in NAV

CLASS A 28.02.2022 31.08.2021 Changes

Audited %
NAV (RM Million) 142.72 145.21 (1.74)
NAV/Unit (RM) 0.9749 1.0742 (9.24)

CLASS C 28.02.2022 31.08.2021 Changes

Audited %
NAV (RM Million) 28.82 29.06 (0.83)
NAV/Unit (RM) 0.9750 1.0743 (9.24)

CLASS X 28.02.2022 31.08.2021 Changes

Audited %
NAV (RM Million) 30.75 31.43 (2.16)
NAV/Unit (RM) 0.9750 1.0743 (9.24)

For the 6-month period under review, the total NAV of Class A, Class C and Class X decreased by
1.74%, 0.83% and 2.16% respectively.

In addition, the Fund’s NAV per unit for all 3 classes, Class A, Class C, and Class X decreased by
9.24% respectively during the period under review mainly due to the negative investment performance
stated under the Fund Performance section.

Performance data represents the combined income and capital return as a result of holding units in the Fund for the specified
length of time, based on NAV to NAV price. The performance data assumes that all earnings from the Fund are reinvested
and are net of management and trustee fees. Past performance is not reflective of future performance and income distributions
are not guaranteed. Unit prices and income distributions, if any, may fall and rise. All performance figures for the financial
period have been extracted from Lipper.

PORTFOLIO STRUCTURE

Asset allocation

28.02.2022 31.08.2021
(% of NAV) Audited
Shariah-compliant collective investment scheme 99.70 99.55
Cash and other assets 0.74 0.87
Liabilities (0.44) (0.42)
TOTAL 100.00 100.00

The Fund was fully invested during the financial period under review. A minimal level of liquid assets
was maintained primarily for redemption purposes.

MARKET OUTLOOK*

Beyond the Russia-Ukraine conflict, we expect the focus to return to the elevated inflation print across
many countries and central banks’ response in the months ahead. The near term inflation print will be
complicated by the supply side impact on various commodities especially energy from the Ukrainian
invasion. Market expectations implied by the Fed Funds Future is pricing 8-9 rate hikes for 2022. The
trajectory of inflation and resultant bond yields from here-on would be a key indicator of any reversion
in investor appetite.

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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

MARKET OUTLOOK (CONTINUED)*

In China, the government attempted to keep the stock market stable amidst the market rout with efforts
to support overseas share listing as well as easing regulatory actions on internet platform companies.
This is in line with our view that the government will maintain its supportive monetary and fiscal policy
after a self-inflicted slowdown last year. Our approach in China has been focused on stock specific
ideas that are likely to benefit from regulatory tailwinds or sectors with drivers that are less dependent
on the macro.

* This market outlook does not constitute an offer, invitation, commitment, advice or recommendation to make a purchase of
any investment. The information given in this article represents the views of Principal Asset Management Berhad (“Principal
Malaysia”) or based on data obtained from sources believed to be reliable by Principal Malaysia. Whilst every care has been
taken in preparing this, Principal Malaysia makes no guarantee, representation or warranty and is under no circumstances
liable for any loss or damage caused by reliance on, any opinion, advice or statement made in this market outlook.

INVESTMENT STRATEGY

As this is a Feeder Fund under the Private Retirement Schemes (“PRS”), the Fund will continue to
remain fully invested in the Target Fund with minimal cash kept for liquidity purposes.

MEMBERS STATISTICS AS AT 28 FEBRUARY 2022

CLASS A

Size of unit holdings (units) No. of members No. of units held % of units held
(million)
5,000 and below 16,870 36.17 24.71
5,001-10,000 3,309 23.16 15.82
10,001-50,000 2,378 43.88 29.97
50,001-500,000 261 33.73 23.04
500,001 and above 12 9.45 6.46
Total 22,830 146.39 100.00

CLASS C

Size of unit holdings (units) No. of members No. of units held % of units held
(million)
5,000 and below 2,639 5.58 18.88
5,001-10,000 627 4.44 15.02
10,001-50,000 500 8.90 30.11
50,001-500,000 63 8.51 28.79
500,001 and above 3 2.13 7.20
Total 3,832 29.56 100.00

CLASS X

Size of unit holdings (units) No. of members No. of units held % of units held
(million)
5,000 and below 2,622 4.00 12.68
5,001-10,000 777 5.49 17.41
10,001-50,000 602 11.49 36.43
50,001-500,000 54 5.61 17.79
500,001 and above 4 4.95 15.69
Total 4,059 31.54 100.00

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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

SOFT COMMISSIONS AND REBATES

Principal Asset Management Berhad (the “PRS Provider”) and the Trustee will not retain any form of
rebate or soft commission from, or otherwise share in any commission with, any broker in consideration
for directing dealings in the investments of the Funds unless the soft commission received is retained
in the form of goods and services such as research and advisory services that assist in the decision
making process relating to the Fund’s investments. All dealings with brokers are executed on most
favourable terms available for the Fund. Any rebates will be directed to the account of the Fund.

During the financial period under review, the PRS Provider and the Trustee did not receive any rebates
from the brokers or dealers, but the PRS Provider has retained soft commissions in the form of goods
and services such as financial wire services and stock quotations system incidental to investment
management of the Funds.

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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

UNAUDITED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS FINANCIAL PERIOD ENDED 28 FEBRUARY 2022

01.09.2021 01.09.2020
to 28.02.2022 to 28.02.2021
Note RM RM
(LOSS)/INCOME
Dividend income - 1,885,997
Net (loss)/gain on financial assets at fair value through
profit or loss 8 (14,897,057) 30,304,901
(14,897,057) 32,190,898

EXPENSES
Private Pension Administrator administration fee 4 41,336 34,649
Trustee fee 5 41,336 34,649
Audit fee 4,050 4,050
Tax Agent’s fee 2,500 2,500
Other expenses 9,365 5,297
98,587 81,145

(LOSS)/PROFIT BEFORE DISTRIBUTION AND

TAXATION (14,995,644) 32,109,753

Distribution:
- Class A 3,664,922 3,615,148
- Class C 706,191 680,835
- Class X 794,483 743,184
6 5,165,596 5,039,167

(LOSS)/PROFIT BEFORE TAXATION (20,161,240) 27,070,586

Taxation 7 - -

(LOSS)PROFIT AFTER TAXATION,

REPRESENTING TOTAL COMPREHENSIVE
(LOSS)/INCOME FOR THE FINANCIAL PERIOD (20,161,240) 27,070,586

(Loss)/Profit after taxation is made up as follows:

Realised amount (4,956,210) (1,912,213)
Unrealised amount (15,205,030) 28,982,799
(20,161,240) 27,070,586

The accompanying notes to the financial statements form an integral part of the unaudited financial
statements.
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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

UNAUDITED STATEMENT OF FINANCIAL POSITION

AS AT 28 FEBRUARY 2022

28.02.2022 31.08.2021
Audited
Note RM RM
ASSETS
Cash and cash equivalents 9 991,704 844,683
Financial assets at fair value through profit or loss 8 201,687,918 204,439,975
Amount due from the PRS Provider
- creation of units 504,424 487,270
TOTAL ASSETS 203,184,046 205,771,928

LIABILITIES
Amount due to the PRS Provider
- cancellation of units 750,453 44,730
- purchase of Shariah-compliant collective
investment scheme 120,000 -
Amount due to Private Pension Administrator 6,337 6,979
Amount due to Trustee 6,337 6,979
Other payables and accruals 11,549 16,502
TOTAL LIABILITIES (EXCLUDING NET ASSETS
ATTRIBUTABLE TO MEMBERS) 894,676 75,190

NET ASSET VALUE OF THE FUND 202,289,370 205,696,738

NET ASSETS ATTRIBUTABLE TO MEMBERS 202,289,370 205,696,738

REPRESENTED BY:

FAIR VALUE OF OUTSTANDING UNITS

- Class A 142,717,619 145,211,569
- Class C 28,818,608 29,055,713
- Class X 30,753,143 31,429,456
202,289,370 205,696,738

NUMBER OF UNITS IN CIRCULATION (UNITS)

- Class A 146,389,452 135,174,036
- Class C 29,557,349 27,045,042
- Class X 31,540,674 29,253,850
10 207,487,475 191,472,928

NET ASSET VALUE PER UNIT (RM)

- Class A 0.9749 1.0742
- Class C 0.9750 1.0743
- Class X 0.9750 1.0743

The accompanying notes to the financial statements form an integral part of the unaudited financial
statements.
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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

UNAUDITED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO MEMBERS

FOR THE SIX MONTHS FINANCIAL PERIOD ENDED 28 FEBRUARY 2022

01.09.2021 01.09.2020
to 28.02.2022 to 28.02.2021
RM RM
NET ASSETS ATTRIBUTABLE TO MEMBERS AT THE
BEGINNING OF THE FINANCIAL PERIOD 205,696,738 153,119,742

Movement due to units created and cancelled during the

financial period:
Creation of units from applications
- Class A 13,765,174 18,848,258
- Class C 4,303,367 7,907,573
- Class X 1,973,477 1,894,746
20,042,018 28,650,577

Creation of units from distribution

- Class A 3,664,922 3,615,148
- Class C 706,191 680,835
- Class X 794,483 743,184
5,165,596 5,039,167

Cancellation of units
- Class A (5,666,952) (16,339,506)
- Class C (2,391,251) (3,865,076)
- Class X (395,539) (312,606)
(8,453,742) (20,517,188)

Total comprehensive (loss)/income for the financial period (20,161,240) 27,070,586

NET ASSETS ATTRIBUTABLE TO MEMBERS AT THE

END OF THE FINANCIAL PERIOD 202,289,370 193,362,884

The accompanying notes to the financial statements form an integral part of the unaudited financial
statements.
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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

UNAUDITED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS FINANCIAL PERIOD ENDED 28 FEBRUARY 2022

01.09.2021 01.09.2020
to 28.02.2022 to 28.02.2021
RM RM
CASH FLOWS FROM OPERATING ACTIVITIES
Proceeds from disposal of Shariah-compliant collective
investment scheme 1,329,999 5,600,000
Purchase of Shariah-compliant collective investment scheme (13,355,000) (13,950,000)
Private Pension Administrator administration fee paid (41,978) (33,486)
Trustee fee paid (41,978) (33,486)
Payments of other fees and expenses (30,867) (5,297)
Net cash used in operating activities (12,129,824) (8,422,269)

CASH FLOWS FROM FINANCING ACTIVITIES

Cash proceeds from units created 20,024,864 28,937,454
Payments for cancellation of units (7,748,019) (20,448,271)
Net cash generated from financing activities 12,276,845 8,489,183

Net increase in cash and cash equivalents 147,021 66,914

Cash and cash equivalents at the beginning of the financial
period 844,683 939,261
Cash and cash equivalents at the end of the financial period 991,704 1,006,175

Cash and cash equivalents comprised of:

Bank balance 991,704 1,006,175
Cash and cash equivalents at the end of the financial period 991,704 1,006,175

The accompanying notes to the financial statements form an integral part of the unaudited financial
statements.
16
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS FINANCIAL PERIOD ENDED 28 FEBRUARY 2022

1. THE FUND, THE PRS PROVIDER AND ITS PRINCIPAL ACTIVITIES

Principal Islamic PRS Plus Asia Pacific Ex Japan Equity (the “Fund”) is governed by a Deed
dated 8 November 2012, a First Supplemental Deed dated 2 January 2014, a Second
Supplemental Deed dated 25 November 2014 and a Third Supplemental Deed dated 3
February 2020 (collectively referred to as the “Deeds”), made between Principal Asset
Management Berhad (the “PRS Provider”) and Deutsche Trustees Malaysia Berhad (the
“Trustee”).

The Fund offers three classes of units known respectively as Class A, Class C and Class X. In
accordance with the Disclosure Document, subject to the PRS Provider’s absolute discretion,
Class A and Class C are for an individual who has attained the age 18 years as of the date of
opening a private pension account while Class X is for Member who participates via his/her
employer. Class A and Class C have different Sales Charge and Management Fee while Class
X has no Sales Charge.

The Fund will invest at least 85% of its NAV in the Target Fund, a Malaysian domiciled fund
established on 2 June 2006, which invests in Shariah-compliant equities listed on the stock
exchanges in the emerging and developed markets of Asia Pacific ex Japan. The Fund may
also maintain up to 15% of its NAV in Islamic liquid assets.

The asset allocation strategy for this Fund is as follows:

▪ At least 85% of the Fund’s NAV will be invested in the Target Fund; and
▪ Up to 15% of the Fund’s NAV may be invested in Islamic liquid assets for liquidity purpose.

With effect from 1 June 2020, Principal Singapore has been appointed as the Sub-Adviser of
the Fund. Principal Singapore will provide investment research and recommendation to us in
accordance with the investment objective and within the investment restrictions of the Fund.

All investments are subjected to the SC Guidelines on PRS, SC requirements, the Deeds,
except where exemptions or variations have been approved by the SC, internal policies and
procedures and the Fund’s objective.

The PRS Provider, is a joint venture between Principal Financial Group®, a member of the
FORTUNE 500® and a Nasdaq-listed global financial services and CIMB Group Holdings
Berhad, one of Southeast Asia’s leading universal banking groups. The principal activities of
the PRS Provider are the establishment and management of unit trust funds and fund
management activities.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following accounting policies have been used consistently in dealing with items which are
considered material in relation to the financial statements:

(a) Basis of preparation

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

The financial statements have been prepared under the historical cost convention, as
modified by financial assets at fair value through profit or loss.

17
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

The preparation of financial statements in conformity with MFRS and IFRS requires the
use of certain critical accounting estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements, and the reported amounts of revenues and expenses
during the reported period.

It also requires the PRS Provider to exercise their judgement in the process of applying
the Fund’s accounting policies. Although these estimates and judgement are based on
the PRS Provider’s best knowledge of current events and actions, actual results may
differ.

The areas involving a higher degree of judgement or complexity, or areas where

assumptions and estimates are significant to the financial statements are disclosed in
Note 2(j).

There are no other standards, amendments to standards or interpretations that are

effective for annual periods beginning on 1 September 2021 that have a material effect
on the financial statements of the Fund.

None of the standards, amendments to standards or interpretations that are effective for
the financial period beginning on/after 1 March 2022 are applicable to the Fund.

(b) Financial assets and financial liabilities

Classification

The Fund classify its financial assets in the following measurement categories:

• those to be measured subsequently at fair value through profit or loss, and

• those to be measured at amortised cost.

The Fund classifies its investments based on both the Fund’s business model for
managing those financial assets and the contractual cash flow characteristics of the
financial assets. The portfolio of financial assets is managed, and performance is
evaluated on a fair value basis. The Fund is primarily focused on fair value information
and uses that information to assess the assets’ performance and to make decisions.
The Fund has not taken the option to irrevocably designate any equity securities as fair
value through other comprehensive income (“OCI”).

Investment in Shariah-compliant collective investment scheme is debt instrument with

contractual cash flow that do not represent solely payment of principal and interest1
(“SPPI”) and therefore is classified as fair value through profit or loss.

The Fund classifies cash and cash equivalents and amount due from PRS Provider -
creation of units as financial assets at amortised cost as these financial assets are held
to collect contractual cash flows consisting of the amount outstanding.

All of the Fund’s financial liabilities are measured at amortised cost.

18
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(b) Financial assets and financial liabilities (continued)

Recognition and measurement

Regular purchases and sales of financial assets are recognised on the trade-date, the
date on which the Fund commits to purchase or sell the asset. Shariah-compliant
investments are initially recognised at fair value.

Financial instruments are recognised in the statement of financial position when, and
only when, the Fund becomes a party to the contractual provisions of the financial
instrument.

Financial assets are derecognised when the rights to receive cash flows from the
Shariah-compliant investments have expired or have been transferred and the Fund has
transferred substantially all risks and rewards of ownership.

Financial liabilities are derecognised when it is extinguished, i.e. when the obligation
specified in the contract is discharged or cancelled or expired.

Unrealised gains or losses arising from changes in the fair value of the financial assets
at fair value through profit or loss are presented in the statement of comprehensive
income within net gain or loss on financial assets at fair value through profit or loss in
the financial period which they arise.

Dividend income from financial assets at fair value through profit or loss is recognised
in the statement of comprehensive income as part of gross dividend income when the
Fund’s right to receive payments is established.

Shariah-compliant collective investment scheme is valued based on the most recent

published NAV per unit or share of such Shariah-compliant collective investment
scheme or, if unavailable, on the last published price of such unit or share (excluding
any sales charge included in such selling price).

Financial assets at amortised cost and other financial liabilities are subsequently carried
at amortised cost using the effective profit method.

Impairment for assets carried at amortised costs

The Fund measures credit risk and expected credit loss (“ECL”) using probability of
default, exposure at default and loss given default. The PRS Provider consider both
historical analysis and forward looking information in determining any ECL. The PRS
Provider consider the probability of default to be close to zero as these instruments have
a low risk of default and the counterparties have a strong capacity to meet their
contractual obligations in the near term. As a result, no loss allowance has been
recognised based on 12-month ECL as any such impairment would be wholly
insignificant to the Fund.

Significant increase in credit risk

A significant increase in credit risk is defined by the PRS Provider as any contractual
payment which is more than 30 days past due.

1 For the purpose of this Fund, interest refers to profits earned from Shariah-compliant investment
19
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(b) Financial assets and financial liabilities (continued)

Definition of default and credit-impaired financial assets

Any contractual payment which is more than 90 days past due is considered credit
impaired.

Write-off

The Fund writes off financial assets, in whole or in part, when it has exhausted all
practical recovery efforts and has concluded there is no reasonable expectation of
recovery. The assessment of no reasonable expectation of recovery is based on
unavailability of debtor’s sources of income or assets to generate sufficient future cash
flows to repay the amount. The Fund may write-off financial assets that are still subject
to enforcement activity. Subsequent recoveries of amounts previously written off will
result in impairment gains. There are no write-offs/recoveries during the financial period.

(c) Income recognition

Dividend income is recognised on the ex-dividend date when the right to receive
payment is established.

Realised gain or loss on disposal of Shariah-compliant collective investment scheme is

accounted for as the difference between the net disposal proceeds and the carrying
amount of Shariah-compliant collective investment scheme, determined on a weighted
average cost basis.

(d) Functional and presentation currency

Items included in the financial statements of the Fund are measured using the currency
of the primary economic environment in which the Fund operates (the “functional
currency”). The financial statements are presented in Malaysian Ringgit (“MYR”), which
is the Fund’s functional and presentation currency.

(e) Members’ contributions

The members’ contributions to the Fund meet the definition of puttable instruments
classified as financial liability under MFRS 132 “Financial Instruments: Presentation”.

The Fund issues cancellable units, in three classes of units, known respectively as
Class A, Class C and Class X, which are cancelled at the member’s option and do not
have identical features subject to restrictions as stipulated in the Disclosure Document
and SC Guidelines on PRS. The units are classified as financial liabilities. Cancellable
units can be put back to the Fund at any time for cash equal to a proportionate share of
the Fund’s NAV of respective classes. The outstanding units are carried at the
redemption amount that is payable at the date of statement of financial position if the
member exercises the right to put back the unit to the Fund.

Units are created and cancelled at the member’s option at prices based on the Fund’s
NAV per unit of respective classes at the close of business on the relevant dealing day.
The Fund’s NAV per unit of respective classes is calculated by dividing the net assets
attributable to members of respective classes with the total number of outstanding units
of respective classes.

20
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(f) Distribution

Any distribution to the Fund’s members is accounted for as a deduction in profit or loss
from realised reserves and recognised in the statement of comprehensive income, as
the members’ capital are classified as financial liabilities as per Note 2(e). Distribution is
reinvested into the PRS on the ex-date. Reinvestment of units is based on the NAV per
unit on the ex-date, which is also the time of creation. Proposed distributions are
recognised as a liability in the financial period in which it is approved by the Trustee.

(g) Cash and cash equivalents

For the purpose of statement of cash flows, cash and cash equivalents comprise bank
balance which are subject to an insignificant risk of changes in value.

(h) Taxation

Current tax expense is determined according to Malaysian tax laws at the current rate
based upon the taxable profit earned during the financial period.

(i) Realised and unrealised portions of profit or loss after taxation

The analysis of realised and unrealised portions of profit or loss after taxation as
presented on the statement of comprehensive income is prepared in accordance with
SC Guidelines on PRS.

(j) Critical accounting estimates and judgements in applying accounting policies

The Fund makes estimates and assumptions concerning the future. The resulting
accounting estimates will, by definition, rarely equal the related actual results. To
enhance the information content of the estimates, certain key variables that are
anticipated to have material impact to the Fund’s results and financial position are tested
for sensitivity to changes in the underlying parameters.

Estimates and judgement are continually evaluated by the PRS Provider and are based
on historical experience and other factors, including expectations of future events that
are believed to be reasonable under the circumstances.

In undertaking any of the Fund’s Shariah-compliant investment, the PRS Provider will
ensure that all assets of the Fund under management will be valued appropriately, that
is at fair value and in compliance with the SC Guidelines on PRS.

However, the PRS Provider is of the opinion that in applying these accounting policies,
no significant judgement was required.

21
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

3. RISK MANAGEMENT OBJECTIVES AND POLICIES

The investment objective of the Fund is to provide capital growth over the long-term by investing
in a target fund with investments in the emerging and developed markets of Asia Pacific ex
Japan region that comply with the Shariah principles.

The Fund is exposed to a variety of risks which include market risk (inclusive of price risk), credit
risk and liquidity risk.

Financial risk management is carried out through internal control process adopted by the PRS
Provider and adherence to the investment restrictions as stipulated in the Deeds and SC
Guidelines on PRS.

(a) Market risk

(i) Price risk

This is the risk that the fair value of an investment in Shariah-compliant collective
investment scheme will fluctuate because of changes in market prices. The value
of investments in a Shariah-compliant collective investment scheme may
fluctuate according to the activities of individual companies, sector and overall
political and economic conditions. Such fluctuation may cause the Fund’s NAV
and prices of units to fall as well as rise, and income produced by the Fund may
also fluctuate.

The price risk is managed through diversification and selection of Shariah-

compliant collective investment scheme and other financial instruments within
specified limits according to the Deeds.

(b) Credit risk

Credit risk refers to the risk that a counter party will default on its contractual obligation
resulting in financial loss to the Fund.

The credit risk arising from bank balances and placements of Shariah-compliant
deposits in licensed Islamic financial institutions is managed by ensuring that the Fund
will only place Shariah-compliant deposits in reputable licensed Islamic financial
institutions.

For amount due from the PRS Providers, the settlement terms of the proceeds from the
creation of units receivable from the PRS Provider are governed by the SC Guidelines
on PRS.

(c) Liquidity risk

Liquidity risk is the risk that the Fund will encounter difficulty in meeting its financial
obligations.

The PRS Provider manages this risk by maintaining sufficient level of liquid assets to
meet anticipated payments and cancellations of the units by Members. Liquid assets
comprise bank balances and other instruments, which are capable of being converted
into cash within 7 business days. The Fund’s investments in Shariah-compliant collective
investment scheme are realisable which are capable of being converted into cash within
10 business days. This is expected to reduce the risk for the entire portfolio without
limiting to the Fund's growth potential.

22
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

3. RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

(d) Capital risk management

The capital of the Fund is represented by net assets attributable to members. The
amount of capital can change significantly on a daily basis as the Fund is subjected to
daily subscriptions and redemptions at the discretion of members. The Fund’s objective
when managing capital is to safeguard the Fund’s ability to continue as a going concern
in order to provide returns to members and benefits for other stakeholders and to
maintain a strong capital base to support the development of the investment activities of
the Fund.

(e) Fair value estimation

Fair value is defined as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the
measurement date (i.e. an exit price).

The fair values of financial assets traded in active markets (such as trading securities)
are based on quoted market prices at the close of trading on the financial period end
date. The Fund utilises the last traded market price for financial assets where the last
traded price falls within the bid-ask spread.In circumstances where the last traded price
is not within the bid ask spread, the PRS Provider will determine the point within the bid-
ask spread that is most representative of the fair value.

An active market is a market in which transactions for the asset or liability take place
with sufficient frequency and volume to provide pricing information on an ongoing basis.

The fair value of financial assets that are not traded in an active market is determined
by using valuation techniques.

(i) Fair value hierarchy

The table below analyses financial instruments carried at fair value. The different
levels have been defined as follows:

• Quoted prices (unadjusted) in active market for identical assets or

liabilities (Level 1)
• Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices) (Level 2)
• Inputs for the asset and liability that are not based on observable market
data (that is, unobservable inputs) (Level 3)

The level in the fair value hierarchy within which the fair value measurement is
categorised in its entirety is determined on the basis of the lowest level input that
is significant to the fair value measurement in its entirety. For this purpose, the
significance of an input is assessed against the fair value measurement in its
entirety.

If a fair value measurement uses observable inputs that require significant

adjustment based on unobservable inputs, that measurement is a Level 3
measurement.

Assessing the significance of a particular input to the fair value measurement in

its entirety requires judgement, considering factors specific to the asset or
liability.

23
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

3. RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

(e) Fair value estimation (continued)

(i) Fair value hierarchy (continued)

The determination of what constitutes ‘observable’ requires significant

judgement by the Fund. The Fund considers observable data to be that market
data that is readily available, regularly distributed or updated, reliable and
verifiable, not proprietary, and provided by independent sources that are actively
involved in the relevant market.

Level 1 Level 2 Level 3 Total

RM RM RM RM
28.02.2022
Financial assets at
fair value through
profit or loss:
- Shariah-
compliant collective
investment scheme

Financial liabilities at
fair value through
profit or loss:
- Shariah-compliant
collective
investment
scheme 201,687,918 - - 201,687,918

Level 1 Level 2 Level 3 Total

RM RM RM RM
31.08.2021
Audited
Financial assets at
fair value through
profit or loss:
-Shariah-
compliant
collective
investment
scheme 204,439,975 - - 204,439,975

Financial
liabilities at
fair value
through profit
or loss:
- Shariah-
compliant
collective
investment
scheme 205,696,738 - - 205,696,738

24
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

3. RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

(e) Fair value estimation (continued)

(i) Fair value hierarchy (continued)

Shariah-compliant investments whose values are based on quoted market prices

in active markets, and are therefore classified within Level 1, include Shariah-
compliant collective investment scheme. The Fund does not adjust the quoted
prices for these instruments. The Fund’s policies on valuation of these financial
assets are stated in Note 2(b).

(ii) The carrying values of cash and cash equivalents, amount due from the PRS
Provider – creation of units and all current liabilities are a reasonable
approximation of their fair values due to their short-term nature.

4. MANAGEMENT FEE AND PRIVATE PENSION ADMINISTRATOR ADMINISTRATION FEE

In accordance with the Deeds, the PRS Provider is entitled to a maximum management fee of
3.00% per annum for each unit class, calculated daily based on the NAV of the Fund.

For the six months financial period ended 28 February 2022 and 28 February 2021, the
management fee for the respective classes is recognised at the following rates:

Class A Class C Class X

1.40% 1.50% 1.40%

Nonetheless, no management fee is charged on the Fund for each of the financial period as the
management fee has been waived by the PRS Provider.

The Private Pension Administrator administration fee is recognised at a rate of 0.04% per
annum (28.02.2021: 0.04% per annum) for each unit class, calculated daily based on the NAV
of the Fund.

There was no further liability in respect of management fee and Private Pension Administrator
administration fee other than the amount recognised above.

5. TRUSTEE FEE

In accordance with the Deeds, the Trustee is entitled to a maximum fee of 0.04% per annum
for each unit class, calculated daily based on the NAV of the Fund. The Trustee’s fee includes
local custodian fee but excludes foreign sub-custodian fees.

For the six months financial period ended 28 February 2022, the Trustee fee is recognised at a
rate of 0.04% per annum (28.02.2021: 0.04% per annum) for each unit class.

There was no further liability to the Trustee in respect of Trustee fee other than the amount
recognised above.

25
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

6. DISTRIBUTION

Distribution to members was derived from the following sources (assessed up to distribution
declaration date):

01.09.2021 01.09.2020
to 28.02.2022 to 28.02.2021
RM RM

Dividend income 3,089,750 3,249,687

Net realised gain/(loss) from disposal of Shariah-
compliant collective investment scheme 1,158,943 (15,398)
Prior financial periods’ realised income 1,040,581 1,983,239
5,289,274 5,217,528
Less:
Expenses (123,678) (178,361)
Net distribution amount 5,165,596 5,039,167

Gross/ Net distribution per unit (sen)

Distribution on 15 October 2021 2.69
- Class A 2.69 -
- Class C 2.69 -
- Class X -

Distribution on 17 December 2020

- Class A - 2.85
- Class C - 2.85
- Class X - 2.85
8.07 8.55

Gross distribution was derived using total income less total expenses. Net distribution above
was sourced from current and prior financial periods’ realised income.

Gross distribution per unit was derived from gross realised income less expenses, divided by
the number of units in circulation. Net distribution per unit was derived from gross realised
income less expenses and taxation, divided by the number of units in circulation.

There were unrealised losses of RM 15,205,030 during the financial period ended 28 February
2022.

7. TAXATION

01.09.2021 01.09.2020
to 28.02.2022 to 28.02.2021
RM RM
Tax charged for the financial period:
- Current taxation - -

Income from PRS approved by the SC in accordance with the Capital Markets and Services Act
2007 is exempted from tax in accordance with Schedule 6, Paragraph 20 of the Income Tax
Act, 1967 (“ITA”).

A numerical reconciliation between the (loss)/profit before taxation multiplied by the Malaysian
statutory income tax rate and tax expense of the Fund is as follows:

26
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

7. TAXATION (CONTINUED)

01.09.2021 01.09.2020
to 28.02.2022 to 28.02.2021
RM RM

(Loss)/Profit before taxation (20,161,240) 27,070,586

Taxation at Malaysian statutory rate of 24%

(28.02.2021: 24%) (4,838,698) 6,496,941
Tax effects of:
- Investment income not subject to tax 3,575,294 (7,725,816)
- Expenses not deductible for tax purposes 1,262,163 1,227,903
- Restriction on tax deductible expenses for PRS
Funds 1,241 972
Taxation - -

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

28.02.2022 31.08.2021
Audited
RM RM
At fair value through profit or loss:
- Shariah-compliant collective investment scheme 201,687,918 204,439,975

01.09.2021 01.09.2020
to 28.02.2022 to 28.02.2021
RM RM
Net (loss)/gain on financial assets at fair value through
profit or loss:
- Realised gain on disposals 307,973 2,676,205
- Unrealised fair value (loss)/gain (15,205,030) 28,882,295
(14,897,057) 31,558,500

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

Aggregate Market Percentage

Name of counter Quantity cost value of NAV
Units RM RM %
28.02.2022
SHARIAH-COMPLIANT
COLLECTIVE
INVESTMENT SCHEME

Principal Islamic Asia

Pacific Dynamic Equity
Fund 299,595,839 163,231,009 201,687,918 99.70

TOTAL COLLECTIVE
INVESTMENT SCHEME 299,595,839 163,231,009 201,687,918 99.70

27
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

Aggregate Market Percentage

Name of counter Quantity cost value of NAV
Units RM RM %
28.02.2022
SHARIAH-COMPLIANT
COLLECTIVE
INVESTMENT SCHEME

ACCUMULATED
UNREALISED GAIN ON
FINANCIAL ASSETS AT
FAIR VALUE THROUGH
PROFIT OR LOSS 38,456,909
,
TOTAL FINANCIAL
ASSETS AT FAIR
VALUE THROUGH
PROFIT OR LOSS 201,687,918

31.08.2021
Audited
SHARIAH-COMPLIANT
COLLECTIVE
INVESTMENT SCHEME

Principal Islamic Asia

Pacific Dynamic Equity
Fund 282,688,018 150,778,036 204,439,975 99.39

TOTAL COLLECTIVE
INVESTMENT SCHEME 282,688,018 150,778,036 204,439,975 99.39

ACCUMULATED
UNREALISED GAIN ON
FINANCIAL ASSETS AT
FAIR VALUE THROUGH
PROFIT OR LOSS 53,661,939

TOTAL FINANCIAL
ASSETS AT FAIR
VALUE THROUGH
PROFIT OR LOSS 204,439,975

9. CASH AND CASH EQUIVALENTS

28.02.2022 31.08.2021
Audited
RM RM
Bank balance 991,704 844,683

28
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

10. NUMBER OF UNITS IN CIRCULATION (UNITS)

01.09.2021 01.09.2020
to 28.02.2022 to 31.08.2021
Audited
No. of units No. of units
Class A (i) 146,389,452 135,174,036
Class C (ii) 29,557,349 27,045,042
Class X (iii) 31,540,674 29,253,850
207,487,475 191,472,928

(i) Class A

01.09.2021 01.09.2020
to 28.02.2022 to 31.08.2021
Audited
No. of units No. of units
At the beginning of the financial period/year 135,174,036 125,187,928
Add : Creation of units from applications 13,202,440 29,069,283
Add : Creation of units from distribution 3,503,413 3,698,361
Less: Cancellation of units (5,490,437) (22,781,536)
At the end of the financial period/year 146,389,452 135,174,036

(ii) Class C

01.09.2021 01.09.2020
to 28.02.2022 to 31.08.2021
Audited
No. of units No. of units
At the beginning of the financial period/year 27,045,042 20,329,770
Add : Creation of units from applications 4,116,335 10,938,225
Add : Creation of units from distribution 675,006 696,435
Less: Cancellation of units (2,279,034) (4,919,389)
At the end of the financial period/year 29,557,349 27,045,042

(iii) Class X

01.09.2021 01.09.2020
to 28.02.2022 to 31.08.2021
Audited
No. of units No. of units
At the beginning of the financial period/year 29,253,850 25,161,583
Add : Creation of units from applications 1,905,892 3,816,824
Add : Creation of units from distribution 759,399 760,213
Less: Cancellation of units (378,467) (484,769)
At the end of the financial period/year 31,540,674 29,253,850

11. MANAGEMENT EXPENSE RATIO (“MER”)

01.09.2021 01.09.2020
to 28.02.2022 to 28.02.2021
% %
MER 0.05 0.05

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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

11. MANAGEMENT EXPENSE RATIO (“MER”) (CONTINUED)

MER was derived from the following calculation:

MER = (A + B + C + D + E) x 100
F

A = Private Pension Administrator administration fee

B = Trustee fee
C = Audit fee
D = Tax Agent’s fee
E = Other expenses
F = Average NAV of the Fund calculated on a daily basis

The average NAV of the Fund for the financial period calculated on a daily basis is
RM208,641,359 (28.02.2021: RM174,911,127).

12. PORTFOLIO TURNOVER RATIO (“PTR”)

01.09.2021 01.09.2020
to 28.02.2022 to 29.02.2021

PTR (times) 0.04 0.06

PTR was derived based on the following calculation:

(Total acquisition for the financial period + total disposal for the financial period)  2
Average NAV of the Fund for the financial period calculated on a daily basis

where:
total acquisition for the financial period = RM13,475,000 (28.02.2021: RM15,735,997)
total disposal for the financial period = RM1,330,000 (28.02.2021: RM5,600,000)

13. UNITS HELD BY THE PRS PROVIDER AND PARTIES RELATED TO THE PRS PROVIDER,
AND SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES

The related parties and their relationship with the Fund are as follows:

Related parties Relationship

Principal Asset Management Berhad The PRS Provider

Principal Financial Group, Inc. Ultimate holding company of shareholder of

the PRS Provider

Principal International (Asia) Ltd Shareholder of the PRS Provider

Subsidiaries and associates of Principal Fellow subsidiary and associated

Financial Group Inc., other than above, as companies of the ultimate holding
disclosed in its financial statements company of shareholder of the PRS
Provider

30
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

13. UNITS HELD BY THE PRS PROVIDER AND PARTIES RELATED TO THE PRS PROVIDER,
AND SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED)

The related parties and their relationship with the Fund are as follows: (continued)

Related parties Relationship

CIMB Group Holdings Bhd Ultimate holding company of shareholder of

the PRS Provider

CIMB Group Sdn Bhd Shareholder of the PRS Provider

Subsidiaries and associates of CIMB Fellow subsidiary and associated

Group Holdings Bhd, other than above, companies of the ultimate holding
as disclosed in its financial statements company of shareholder of the PRS
Provider

Units held by the PRS Provider and parties related to the PRS Provider

31.08.2021
28.02.2022 Audited
No. of units RM No. of units RM
Directors of the PRS
Provider
- Class X 40,965 39,941 39,938 42,905

Other than the above, there were no units held by the PRS Provider or parties related to the
PRS Provider as at the end of the financial period/year.

In addition to related party disclosures mentioned elsewhere in the financial statements, set out
below are other significant related party transactions and balances. The PRS Provider is of the
opinion that all transactions with the related companies have been entered into in the normal
course of business at agreed terms between the related parties.

01.09.2021 01.09.2020
to 28.02.2022 to 28.02.2021
RM RM
Significant related party transactions
Dividend income from Shariah-compliant collective
investment scheme:
- Principal Asset Management Berhad - 1,885,997

Purchase of Shariah-compliant collective

investment scheme:
- Principal Asset Management Berhad 13,475,000 15,735,997

Disposal of Shariah-compliant collective investment

scheme:
- Principal Asset Management Berhad 1,330,000 5,600,000

28.02.2022 31.08.2021
Audited
RM RM
Significant related party balances
Shariah-compliant collective investment scheme
managed by the PRS Provider:
- Principal Islamic Asia Pacific Dynamic Equity
Fund 201,687,918 204,439,975
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 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

14. TRANSACTIONS WITH BROKER/DEALER

Details of transactions with the broker/dealer for the six months financial period ended 28
February 2022 are as follows:

Percentage
Percentage of total
Value of of total Brokerage brokerage
Broker/ Dealer trades trades fees fees
RM % RM %
Principal Asset
Management Berhad # 14,805,000 100.00 - -

Details of transactions with the broker/ dealer for the six months financial period ended 28
February 2021 are as follows:

Percentage
Percentage of total
Value of of total Brokerage brokerage
Broker/ Dealer trades trades fees fees
RM % RM %
Principal Asset
Management Berhad # 19,450,000 100.00 - -

# Included in the transactions are trades conducted with Principal Asset Management Berhad
the PRS Provider of the Fund, amounting to RM14,805,000 (28.02.2021: RM19,450,000). The
PRS Provider is of the opinion that all transactions with the related companies have been
entered into in the normal course of business at agreed terms between the related parties.

15. SIGNIFICANT EVENT DURING THE PERIOD

The COVID-19 pandemic and related lockdowns and movement restrictions have had, and will
continue to have, a significant impact on global economic conditions and the environment in
which the Fund operates.

The PRS Provider continues to closely monitor the macro-economic outlook as a result of
COVID-19 pandemic and its impact to the Fund’s performance and will be managing the risks
to achieve the Fund’s objective.

32
 PRINCIPAL ISLAMIC PRS PLUS ASIA PACIFIC EX JAPAN EQUITY

DIRECTORY

Head Office of the PRS Provider

Principal Asset Management Berhad (Company No.: 199401018399 (304078-K))
10th Floor, Bangunan CIMB,
Jalan Semantan,
Damansara Heights,
50490 Kuala Lumpur, MALAYSIA.
Tel: (03) 2084 8888

Website
www.principal.com.my

E-mail address
[email protected]

Customer Care Centre

(03) 7723 7260

Trustee for the Principal Islamic PRS Plus Asia Pacific Ex Japan Equity
Deutsche Trustees Malaysia Berhad (Co. No.: 200701005591 (763590-H))
Level 20 Menara IMC,
8 Jalan Sultan Ismail,
50250 Kuala Lumpur, MALAYSIA.
Tel: (03) 2053 7522
Fax: (03) 2053 7526

Shariah Adviser of the Principal Islamic PRS Plus Asia Pacific Ex Japan Equity
Amanie Advisors Sdn. Bhd. (Company No.: 200501007003 (684050-H))
Level 13A-2, Menara Tokio Marine Life,
No 189, Jalan Tun Razak,
50400 Kuala Lumpur, MALAYSIA.
Tel: (03) 2161 0260
Fax: (03) 2161 0262

33
Principal Asset Management Berhad
199401018399 (304078-K)

Enquiries:

Customer Care Centre

(603)7718 3000

Email
[email protected]

Website
www.principal.com.my