Al Awfar Account - Bank Islam Malaysia Berhad

Al Awfar Account
Fund Performance Report For The Quarter
Ended 31 December 2015
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Report For Quarter End 31 December 2015
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Al Awfar Account
Fund Performance Report For The Quarter Ended 31 December 2015
1.0 Key Fund Information
Dear Valued Account Holder,
Congratulations on becoming Bank Islam’s Al Awfar Account holder, an investment account that is the first of
its kind under the Mudarabah contract, designed to offer multiple opportunities to win cash prizes. Al Awfar was
introduced to the Malaysian market in June 2015 in line with the implementation of the Islamic Financial Services
Act (IFSA 2013).
We are pleased to present the following Fund Performance Report of Al Awfar Account for the Quarter Ended 31
December 2015.
1.1 Product Name
Al Awfar Account (Mudarabah-based Investment
Account)
1.2 Investment Account Type
Unrestricted Investment Account: refers to a
type of investment account where mandate is
given to the Bank to manage a portfolio of
Financing Accounts.
1.3 Fund Investment Objective
To offer multiple opportunities to win over
RM6,000,000 in cash prizes via monthly,
quarterly, yearly, and regional draws while
generating profit.
1.4 Fund Investment Strategies
Invest in a secured retail financial asset.
Currently, the Bank invests in an existing House
Financing Portfolio which is aimed to protect the
principal.
1.5 Nature of Investment Account
On demand, where customers are able to
withdraw at any time.
1.6 Investment Asset Allocation
The Bank will allocate investors’ funds in an
existing performing House Financing Portfolio
that is generating stable income.
1.7 Investor Profile
• Category of investors:
- Individuals (Residents and Non-Residents)
- Non-Individuals (Business/Other entities)
• Investors with low risk tolerance
• Investors who desire to win cash prizes
• Investors with either a short or medium term
investment horizon
• Investors who require a portfolio of Shariahcompliant investments
Note: Investors are advised to carefully
consider all risk factors before making an
investment decision. Investors will be exposed
to the following risks; Market risk, Credit risk,
Liquidity risk, Operational risk, and Legal risk.
For further explanation of each risk, kindly visit
Bank Islam’s website.
1.8 Valuation of the Underlying Asset
To be carried out on a monthly basis as part of
the process to determine the return to the
investors. The returns on this investment
account will be affected by the performance of
the underlying assets. The principal and returns
are not guaranteed and a customer/investment
account holder risks earning no returns at all.
This investment account is not protected by
Perbadanan Insurans Deposit Malaysia (PIDM).
1.9 Distribution Policy
Income to be distributed on a monthly basis, but
the profit will be calculated on a daily basis. The
income is based on the performance of the House
Financing Portfolio.
1.10 Statement on Any Changes
There have been no changes in the investment
objectives, strategies, restrictions and limitations
during the quarter period.
2.0 Risk Statement
In Bank Islam, the Board of Directors has the ultimate responsibility to manage risks related to its operations and
business activities by setting risk appetite and tolerance levels that are consistent with the Bank’s overall business
objectives and desired risk profile. The Board Risk Committee, which is assisted by the Risk Management Division
ensures that there is an effective oversight on development of strategies, policies, procedures and infrastructure to
manage the Bank’s risks.
Fund Performance Report For Quarter End 31 December 2015
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3.0 Prize Structure
Based on the given investment objective, customers will be entitled to participate in the monthly, quarterly, and
regional prize draws. As such, they are able to enjoy multiple opportunities to win valuable cash prizes as stated below:
3.1 Prize Structure
Bankwide Monthly Draws:
Prize
Cash Prizes (RM)
No. of Winners
1
100,000
1
2
10,000
1
3
1,000
20
Prize
Cash Prizes (RM)
No. of Winners
1
1,000,000
1
2
10,000
20
Prize
Cash Prizes (RM)
No. of Winners
1
50,000
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Bankwide Quarterly Draws:
Regional Monthly Draws:
Note: All cash prizes are provided by the Bank and subject to change from time to time.
3.2 Eligibility Units
Every RM100 worth of investment shall be entitled to one (1) eligibility unit for the draw. However, the Bank has
the discretion to review the number of eligibility unit(s) from time to time.
3.3 Draw Committee Members
2
Internal Committee
External Committee
Shariah Division
Jabatan Kemajuan Islam Malaysia (JAKIM)
Risk Management Division
Persatuan Pengguna Islam Malaysia (PPIM)
Bank Islam • Al-Awfar Account
3.4 Winners Of Al-Awfar Prize Draw For The Quarter Ended 31 December 2015
Bankwide Monthly Draws:
Month
Prize
October
November
December
Cash Prize (RM)
Winners
1
100,000
Misdi bin Kadis
2
10,000
Abu Bakar bin Darus
3
1,000
20 Winners
1
100,000
Talib bin Mat Yusof
2
10,000
Zaleha binti Mohamad Amin
3
1,000
20 Winners
1
100,000
Anis Nuraishah bt Ahmad Shahminan
2
10,000
Zahra As Syifa’ binti Kamarulzaman
3
1,000
20 Winners
Bankwide Quarterly Draws:
Prize
Cash Prize (RM)
Winners
1
1,000,000
Azman bin Kamis
2
10,000
20 Winners
Regional Quarterly Draw:
Month
October
November
December
Prize
1
1
1
Cash Prize (RM)
Winners
50,000
1.
2.
3.
4.
5.
Fadzillah Binti Abd Razak
Raja Mohd Harun Al Rashid Bin Raja Akbar Al Rashid
Seenivasan A/L Veerasamy
Noor Hassan Bin Che Wook
Yussop Bin Rapnan
50,000
1.
2.
3.
4.
5.
Azhari Bin Abdul Aziz
Mohd Apandi Bin Abdullah
Wahid Bin Tambi
Shuhaimi bin Umar
Mohd Yunus bin Md Yusof
50,000
1.
2.
3.
4.
5.
Ramlah binti Mohamad
Hatun Binti Hashim
Rozreen binti Wan Ramli
Najmuddin bin Abdullah
Ayub bin Annuar
From October until December 2015, Al Awfar has 102 cash prize winners.
Fund Performance Report For Quarter End 31 December 2015
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4.0 Fund Performance
4.1 Performance for the Quarter Ended 31 December 2015
Return on
Asset (ROA)
Profit
Sharing
Ratio
(Customer
: Bank)
Return on
Investmen
t (ROI)
Period
Position
Fund Size
RM’000
16 Oct 15 - 15 Nov 15
Sept-15
469,848
6.58%
2 : 98
0.13%
16 Nov 15 - 15 Dec 15
Oct-15
456,191
6.58%
2 : 98
0.13%
16 Dec 15 - 15 Jan 16
Nov-15
459,247
6.45%
2 : 98
0.13%
16 Jan 16 - 15 Feb 16
Dec-15
461,312
6.70%
2 : 98
0.13%
4.2 Asset Allocation
House Financing Portfolio
5.0 Profit Payout
5.1 Profit & Loss Statement (P&L)
AL AWFAR INVESTMENT ACCOUNT
Profit & Loss Statement for the Quarter ended 31 December 2015
Oct 2015
Nov 2015
Dec 2015
RM
RM
RM
2,714,609
2,538,831
2,693,012
-
-
-
Allowance for impairment on
Financing
(160,020)
(148,812)
(94,890)
Total Income
2,554,589
2,390,019
2,598,122
Income from financing
Direct Expenses*
Return on Asset
6.58%
6.45%
6.70%
Return on Investment
0.13%
0.13%
0.13%
* Expenses are identifiable, measurable, compulsory and must be incurred in order to complete a specific
investment activity (including financing)
Note: The income is based on the performance of House Financing Portfolio.
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Bank Islam • Al-Awfar Account
5.2
House Financing Portfolio Review as at 31 December 2015
House Financing Portfolio by Geographical Location in Malaysia
A total of 40.6% from the total House Financing Portfolio originates from the Central region. This reflects
our concentration to developed areas such as the Klang Valley.
House Financing Portfolio by Remaining Maturity of Facilities
The bulk of the House Financing Portfolio has a maturity of more than 15 years. This will ensure stability in
our income stream which can then be beneficial to the investment return profile especially for long-term
investors.
Asset Quality
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Bank Islam • Al-Awfar Account
6.0 Economic Review and Prospects
Malaysian economy is anticipated to be more challenging this year in view of the potential headwinds from
abroad as well as rising cost of living domestically. In addition, volatility in the foreign exchange market is
expected to persist as interest rates in US are likely to be increased albeit gradually while supply glut in the
Oil & Gas industry will continue to suppress crude oil prices. Such scenario has led the Malaysian government
to recalibrate its Budget 2016 allocation in order to reflect the prevailing market condition while at the same
time, keeping its fiscal deficits target of 3.1% of Gross Domestic Product (GDP) in check. The announcement
of three percentage points cut in EPF members contribution rate should help to mitigate higher cost of living
which is currently experienced by the households. Additionally, pro active measures by Bank Negara
Malaysia (BNM) to cut Statutory Reserve Requirement (SRR) by 50 basis points in January 2016 would release
sufficient liquidity buffers into the financial system which then could reduce funding cost among the financial
institutions. Against such backdrop, the balance of risks is tilted on the downside given the predicament faced
by the major economies globally. However, the country is in a better position to withstand such challenges
given the ability of the Government to adjust fiscal as well as monetary policy. All in all, Malaysian economy is
poised to achieve a stable growth of between 4 percent and 4.5 percent in 2016 largely supported by the
domestic activities amidst challenging prospects from external sector.
7.0 Property Market Outlook
The overall residential market activity in the near term is expected to slow down and there will be also some
price adjustments to reflect the softening of the market. For the Klang Valley Area, the landed residential
sector is expected to experience stability in price with minimal growth. The on-going infrastructure projects
in the Klang Valley area such as the LRT Line 3, MRT SBK Line, MRT SSP Line, BRT Sunway, BRT KLKlang, Sungai Besi – Ulu Kelang Elevated Expressway (SUKE), Damansara – Shah Alam Expressway
(DASH) and Eastern Klang Valley Expressway (EKVE) will not only enhance the existing property market
but will also become the catalyst for Transit Oriented Development along the alignments and within the
vicinity of the stations. However, although there might be a period of overhang for newly completed units in
development projects located in the outlying areas and with poor connectivity to public transport systems,
the existing mainstream property in Klang Valley should at least maintain its appeal and value.
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Bank Islam • Al-Awfar Account
Prepared by:
BANK ISLAM MALAYSIA BERHAD
“THE FUND PERFORMANCE REPORT IS PROVIDED SOLELY FOR THEBENEFITOFTHEINVESTMENTACCOUNT
HOLDERS AND IS NOT TO BE COPIED, QUOTED, OR REFERRED TO IN WHOLE OR IN PART WITHOUT BANK
ISLAM’S PRIOR WRITTEN CONSENT. BANK ISLAM ACCEPTS NO RESPONSIBILITY TO ANYONE OTHER THAN
THE PARTIES IDENTIFIED IN THE FUND PERFORMANCE REPORT FOR THE INFORMATION CONTAINED IN
THIS DOCUMENT”
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Bank Islam • Al-Awfar Account