Principal Lifetime Bond Fund
Interim Report
For The Six Months Financial Period Ended 30 June 2021
PRINCIPAL LIFETIME BOND FUND
INTERIM REPORT
FOR THE SIX MONTHS FINANCIAL PERIOD ENDED 30 JUNE 2021
1 PRINCIPAL LIFETIME BOND FUND
CONTENTS PAGE(S)
INVESTORS' LETTER 1
MANAGER'S REPORT 2 - 6
Fund Objective and Policy
Performance Data
Market Review
Fund Performance
Portfolio Structure
Market Outlook
Investment Strategy
Unit Holdings Statistics
Soft Commissions and Rebates
STATEMENT BY MANAGER 7
TRUSTEE'S REPORT 8
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME 9
UNAUDITED STATEMENT OF FINANCIAL POSITION 10
UNAUDITED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS 11
UNAUDITED STATEMENT OF CASH FLOWS 12
NOTES TO THE FINANCIAL STATEMENTS 13 - 44
DIRECTORY 45
PRINCIPAL LIFETIME BOND FUND
INVESTORS’ LETTER
Dear Valued Investor,
Global equity markets had mixed performance in July 2021 with the developed markets maintaining their uptrend while the Asia-Pacific markets were mixed to lower. The Standard & Poor’s 500 (“S&P 500”) and STOXX Europe 600 rose 2.3% and 2.0% respectively while the best performing Asian markets were Singapore (1.2%), and India (0.2%).
Our team of fund managers, investment professionals, customer service staff and advisors have remained dedicated to helping you navigate through these uncertain times, and managing investments based on your long-term goals. We are positive on Asian equities on a long-term basis and have added more ASEAN names on anticipation of a broader recovery which would be enhanced by the greater availability of Coronavirus Disease 2019 (“COVID-19”) vaccines.
We continue to receive recognitions and awards including Best Online & Mobile Platform (Asset Manager), Best Fund with the optimal Sharpe ratio and Best Fund Manager for Pension Mandates & Private Retirement Schemes (“PRS”) at Alpha Southeast Asia’s 12th Fund Management Awards 2021.
During this difficult period, we have explored new ways to ensure you are equipped with information to help you make informed decisions and we’ve transformed many of our business processes digital to help improve your experience. For further investing and retirement education, and our latest market commentary and insights, please visit our website (www.principal.com.my), like our Facebook page (@PrincipalAssetMY) and follow us on our latest social media asset, our Instagram account (principalassetmanagement_my).
We appreciate your continuous support and the trust you place in us.
Yours faithfully, for Principal Asset Management Berhad
Munirah Khairuddin Chief Executive Officer
1 PRINCIPAL LIFETIME BOND FUND
MANAGER’S REPORT
What is the investment objective of the Fund? The Fund aims to provide regular income as well as to achieve medium to long-term capital appreciation through investments primarily in Malaysian bonds.
Has the Fund achieved its objective? The Fund has achieved its objective in providing regular income and capital appreciation opportunities through investments in a pool of diversified Ringgit denominated fixed income securities.
What are the Fund investment policy and principal investment strategy? The Fund will invest between 70% to 98% (both inclusive) of the Fund’s Net Asset Value (“NAV”) in debentures carrying at least a “BBB3” or “P2” rating by RAM Ratings (“RAM”) or equivalent rating by Malaysia Rating Corporation Berhad (“MARC”) or by local rating agency(ies) of the country of issuance or “BBB-” by Standard & Poor’s (“S&P”) or equivalent rating by any other international rating agencies. The Fund may invest up to 40% of its NAV in Unrated Debentures. The Fund may opt to seek investment exposure via collective investment scheme that is in line with the Fund’s objective, subject to the requirement of the Guidelines on Unit Trust Funds (“GUTF”). The rest of the Fund is maintained in the form of liquid assets to meet any withdrawal payments to you. In line with its objective, the investment strategy and policy of the Fund is to invest in a diversified portfolio of approved fixed income securities consisting primarily of bonds, aimed to provide a steady stream of income. To achieve its objective, the Fund may also invest in structured products and/or derivatives such as forward contracts, options, futures contracts and swap agreements, that are related/linked to fixed income securities.
The asset allocation strategy for this Fund is as follows: • between 70% to 98% (both inclusive) of the Fund’s NAV in debentures; • up to 28% of the Fund’s NAV in other permissible investments; • up to 40% of the Fund’s NAV in Unrated Debentures; and • at least 2% of the Fund’s NAV in liquid assets.
Fund category/type Bond/Income
When was the Fund launched? 15 November 1995
What was the size of the Fund as at 30 June 2021? RM632.85 million (554.87 million units)
What is the Fund’s benchmark? Quant shop Malaysian Government Securities (“MGS”) Bond Index (Medium Sub-Index)
Note: The benchmark is for performance comparison only. Investors are cautioned that the risk profile of the Fund is higher than the benchmark.
What is the Fund distribution policy? Distribution (if any) is expected to be distributed once a year every January at the Manager’s discretion.
What was the net income distribution for the financial period ended 30 June 2021? The Fund distributed a total net income of RM27.39 million to unit holders for the financial period ended 30 June 2021.
The Fund’s NAV per unit were as follows:
NAV per unit NAV per unit Date (Before distribution) (After distribution) 19.01.2021 1.1965 1.1609 15.04.2021 1.1374 1.1259
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PERFORMANCE DATA
Details of portfolio composition of the Fund for the last three unaudited financial periods were as follows:
30.06.2021 30.06.2020 30.06.2019 % % % Unquoted fixed income securities 91.43 90.93 93.97 Cash and other assets 9.18 10.03 7.20 Liabilities (0.61) (0.96) (1.17) 100.00 100.00 100.00
Performance details of the Fund for the last three unaudited financial periods were as follows:
30.06.2021 30.06.2020 30.06.2019 NAV (RM Million) 632.85 622.78 309.29 Units in circulation (Million) 554.87 533.45 278.13 NAV per unit (RM) 1.1405 1.1674 1.1120
01.01.2021 01.01.2020 01.01.2019 to 30.06.2021 to 30.06.2020 to 30.06.2019 Highest NAV per unit (RM) 1.1965 1.1692 1.1213 Lowest NAV per unit (RM) 1.1259 1.1191 1.0921 Total return (%) (0.70) 3.11 4.37 - Capital growth (%) (4.63) 1.29 (0.58) - Income distribution (%) 4.12 1.80 4.95
Management Expense Ratio (“MER”) (%) 0.52 0.53 0.53 Portfolio Turnover Ratio (“PTR”) (times) # 0.24 0.55 0.69
^ The Fund’s MER decreased from 0.53 % to 0.52 % due to increase in average NAV during the financial period under review.
# The Fund’s PTR reduced from 0.55 times to 0.24 times a year ago as the Fund generally held on to similar fixed income securities.
01.01.2021 01.01.2020 01.01.2019 to 30.06.2021 to 30.06.2020 to 30.06.2019
Gross/Net distribution per unit (sen) Distribution on 19 January 2021 3.56 - - Distribution on 15 April 2021 1.15 - - Distribution on 17 January 2020 - 2.05 - Distribution on 18 January 2019 - - 2.55 Distribution on 23 April 2019 - - 2.80
30.06.2021 30.06.2020 30.06.2019 30.06.2018 30.06.2017 % % % % % Annual total return 1.60 6.90 7.31 3.74 3.86
(Launch date: 15 November 1995)
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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MARKET REVIEW (1 JANUARY 2021 TO 30 JUNE 2021)
During the first quarter of 2021, MGS curve steepened sharply on the long-end tracking higher US Treasuries (“UST”). Higher inflation expectation in the US has caused global fixed income markets to see sharp sell off as investors fear Federal Reserve (the “Fed”) may tighten monetary policies to prevent inflation from overheating. Domestically, higher COVID-19 has also caused several lockdowns across Malaysia’s states which weakened the sovereign rating profile. During the financial period, the long- end yield curve steepened by circa 44 to 70 basis points (“bps”) along the 10-year and above curve.
Come second quarter of 2021, UST yield volatility subsided, and fund flows continue to return to Emerging Market (“EM”) Asia, where MGS was also one of the beneficiaries. While no substantial improving in domestic macroeconomic factors, fund flows were strong enough to flatten the long-end yield curve, as valuation was fairly cheap. The quarter-on-quarter (“q-o-q”) movement on MGS yields were mostly bullish flattened, with long-end yields recovered by circa 3 bps to 11 bps.
All-in-all, the 3-years, 5-years. 7-years. 10 years, 15-years, 20-years and 30-years MGS closed at 2.27% (+33 bps), 2.68% (53 bps), 3.01% (+59 bps), 3.29% (+70 bps), 3.89% (+64 bps), 4.20% (+80 bps) and 4.30% (+44 bps) respectively as at end of June 2021.
FUND PERFORMANCE
Since 6 months to 1 year to 3 years to 5 years to inception to 30.06.2021 30.06.2021 30.06.2021 30.06.2021 30.06.2021 % % % % % Income Distribution 4.12 4.12 11.24 23.41 228.60 Capital Growth (4.63) (2.42) 4.78 1.75 17.43 Total Return (0.70) 1.60 16.55 25.58 285.89 Benchmark (0.68) 2.34 16.85 24.34 210.54 Average Total Return N/A 1.60 5.24 4.66 5.39
During the financial period under review, the Fund delivered -0.70% of total return, marginally underperformed the benchmark by 2 bps. The underperformance was due to Fund held longer duration than benchmark and yield curve steepened on the long-end.
350% Principal Lifetime Bond Fund 300% Quant shop MGS Bond Index (Medium Sub-Index)
250%
200%
150%
100%
50%
0%
Jul-96 Jul-99 Jul-10 Jul-13 Jul-16
Oct-00 Oct-03 Oct-14 Oct-17 Oct-20
Apr-09 Apr-12
Jun-21 Jun-04 Jan-05 Jun-07 Jan-08 Jan-19
Feb-97 Mar-00 Mar-03 Mar-06 Feb-11 Feb-14 Mar-17 Mar-20
Nov-09 Dec-12 Nov-95 Sep-97 Dec-98 Dec-01 Aug-02 Aug-05 Nov-06 Sep-08 Sep-11 Dec-15 Aug-19
May-98 May-01 May-18 May-15
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FUND PERFORMANCE (CONTINUED)
Changes in NAV
30.06.2021 31.12.2020 Changes Audited % NAV (RM Million) 632.85 734.02 (13.78) NAV/Unit (RM) 1.1405 1.1944 (4.51)
During the financial period under review, the Fund NAV dropped by 13.78% to RM632.85 million mainly due to unit redemption. The Fund’s NAV per unit stood at RM1.1405 in line with the Fund’s total return.
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
30.06.2021 31.12.2020 Audited Unquoted fixed income securities 91.42 96.89 Cash and other assets 9.19 3.46 Liabilities (0.61) (0.35) TOTAL 100.00 100.00
During the financial period under review, The Fund reduced allocation in unquoted fixed income securities to 91.42% (from 96.89%) as the Fund took profit in June 21. As a result, The Fund now held 9.19% of cash compared to 3.46% 6 months ago. The Fund is expected reinvest the proceeds back into a diversified pool of Ringgit denominated fixed income securities over the near term.
MARKET OUTLOOK*
Malaysia Government introduced the National Recovery Plan outlining the necessary conditions to transition from the current lockdown to the exit phases. However, an Enhanced Movement Control Order (“EMCO”) was imposed on most parts of Selangor and Kuala Lumpur with stricter movements on affected areas. The Government also announced an additional RM150 billions stimulus package that includes RM10 billions of direct fiscal injection. Ministry of Finance highlighted that Malaysia’s 2021 Gross Domestic Products (“GDP”) forecast would still have to be revised downwards and will be announced in mid-August 2021. Headline inflation rate eased in May 2021 to +4.4% year-on-year (y- o-y”) (April 2021: +4.7%) as the base-effect driven double-digit rise in transport costs was offset by easing food inflation. Core inflation only edged up marginally to +0.8% y-o-y. Although at Overnight Policy Rate (“OPR”) level of 1.75% may suggest that Malaysia rates are in negative yield territory, Bank Negara Malaysia (“BNM”) has guided that inflation is largely transitory. On a positive note, S&P reaffirmed Malaysia’s rating at A- but maintained its negative outlook to reflect the enduring pressures on Malaysia's fiscal and debt profile. The reaffirmation has helped to lift the negative sentiment on the domestic bonds in the near-term.
* 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.
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INVESTMENT STRATEGY
For Malaysian Ringgit (“MYR”) fixed income strategy, the new round of nationwide lockdown is clearly a growth dampener, and it may shift BNM’s policy tone to slightly dovish. This may temporary steepen the short-end yield curve and provide a good trading opportunity before the next 2 meetings in July 2021 and September 2021. For longer term fixed income strategy, we remain overweight on corporates credit for better yield pick-up. With that said, we continue to be mindful in our credit selection with a preference on names which are more resilient.
UNIT HOLDINGS STATISTICS
Breakdown of unit holdings by size as at 30 June 2021 were as follows:
Size of unit holdings (units) No. of unit holders No. of units held % of units (million) held 5,000 and below 674 2.08 0.37 5,001 to 10,000 458 3.41 0.61 10,001 to 50,000 925 21.85 3.94 50,001 to 500,000 337 39.60 7.14 500,001 and above 42 487.93 87.94 Total 2,436 554.87 100.00
SOFT COMMISSIONS AND REBATES
Principal Asset Management Berhad (the “Manager”) 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 Principal Malaysia Funds (“Funds”) unless the soft commission received is retained in the form of goods and services such as financial wire services and stock quotations system incidental to investment management of the Funds. All dealings with brokers are executed on best available terms.
During the financial period under review, the Manager and the Trustee did not receive any rebates from the brokers or dealers but the Manager has retained soft commission 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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STATEMENT BY MANAGER TO THE UNIT HOLDERS OF PRINCIPAL LIFETIME BOND FUND
We, being the Directors of Principal Asset Management Berhad (the “Manager”), do hereby state that, in the opinion of the Manager, the accompanying unaudited financial statements set out on pages 9 to 44 are drawn up in accordance with the provisions of the Deeds and give a true and fair view of the financial position of the Fund as at 30 June 2021 and of its financial performance, changes in net assets attributable to unit holders 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 Manager Principal Asset Management Berhad (Company No.: 199401018399 (304078-K))
MUNIRAH KHAIRUDDIN JUAN IGNACIO EYZAGUIRRE BARAONA Chief Executive Officer/Executive Director Director
Kuala Lumpur 11 August 2021
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TRUSTEE’S REPORT TO THE UNIT HOLDERS OF PRINCIPAL LIFETIME BOND FUND
We have acted as the Trustee of Principal Lifetime Bond Fund (the “Fund”) for the six months financial period ended 30 June 2021. To the best of our knowledge, Principal Asset Management Berhad, has managed the Fund in accordance with the following:
(a) limitations imposed on the investment powers of the Manager and the Trustee under the Deeds, the Securities Commission Malaysia Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007 and other applicable laws;
(b) valuation/pricing is carried out in accordance with the Deeds of the Fund and applicable regulatory requirements; and
(c) creation and cancellation of units have been carried out in accordance with the Deeds of the Fund and applicable regulatory requirements.
During the financial period, a total distribution of 4.71 sen per unit (gross) has been distributed to the unit holders of the Fund. We are of the view that the distribution is consistent with the objective of the Fund.
For and on behalf of the Trustee PB TRUSTEE SERVICES BERHAD
CHEAH KUAN YOON Chief Executive Officer
Kuala Lumpur 11 August 2021
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UNAUDITED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS FINANCIAL PERIOD ENDED 30 JUNE 2021
01.01.2021 01.01.2020 to 30.06.2021 to 30.06.2020 Note RM RM
(LOSS)/INCOME Interest income from unquoted fixed income securities 260,117 10,789,637 Interest income from deposits with licensed financial institutions at amortised cost 12,649,404 655,093 Net (loss)/gain on financial assets at fair value through profit or loss 8 (13,816,735) 6,035,405 (907,214) 17,480,135
EXPENSES Management fee 4 3,183,579 2,750,784 Trustee fees 5 159,179 137,539 Audit fee 4,165 8,000 Tax Agent's fee 2,584 1,800 Other expenses 8,186 11,137 3,357,693 2,909,260
(LOSS)/PROFIT BEFORE TAXATION (4,264,907) 14,570,875
Taxation 7 - -
(LOSS)/PROFIT AFTER TAXATION, REPRESENTING TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE FINANCIAL PERIOD (4,264,907) 14,570,875
(Loss)/Profit after taxation is made up as follows: Realised amount 11,788,807 12,078,448 Unrealised amount (16,053,714) 2,492,427 (4,264,907) 14,570,875
The accompanying notes to the financial statements form an integral part of the unaudited financial statements.
9 PRINCIPAL LIFETIME BOND FUND
UNAUDITED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021
30.06.2021 31.12.2020 Audited Note RM RM ASSETS Cash and cash equivalents 9 47,997,849 19,798,284 Financial assets at fair value through profit or loss 8 578,637,267 711,169,546 Amount due from Manager 10,072,243 5,619,619 TOTAL ASSETS 636,707,359 736,587,449
LIABILITIES Amount due to Manager 3,307,743 1,895,684 Accrued management fee 503,161 623,481 Amount due to Trustee 25,158 31,174 Other payables and accruals 18,550 13,900 TOTAL LIABILITIES 3,854,612 2,564,239
NET ASSET VALUE OF THE FUND 632,852,747 734,023,210
NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS 10 632,852,747 734,023,210
NUMBER OF UNITS IN CIRCULATION (UNITS) 11 554,868,826 614,513,840
NET ASSET VALUE PER UNIT (RM) 1.1405 1.1944
The accompanying notes to the financial statements form an integral part of the unaudited financial statements.
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UNAUDITED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS FOR THE SIX MONTHS FINANCIAL PERIOD ENDED 30 JUNE 2021
30.06.2021 30.06.2020 Note RM RM NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS AT THE BEGINNING OF THE FINANCIAL PERIOD 734,023,210 454,500,522
Movement due to units created and cancelled during the financial period: Creation of units from applications 146,539,531 319,743,859 Creation of units from distributions 24,024,867 8,202,527 Cancellation of units (240,084,851) (165,926,718) (69,520,453) 162,019,668
Total comprehensive (loss)/income for the financial period (4,264,907) 14,570,875
Distribution (27,385,103) (8,312,024)
NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS AT THE END OF THE FINANCIAL PERIOD 10 632,852,747 622,779,041
The accompanying notes to the financial statements form an integral part of the unaudited financial statements. 11 PRINCIPAL LIFETIME BOND FUND
UNAUDITED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS FINANCIAL PERIOD ENDED 30 JUNE 2021
01.01.2021 01.01.2020 to 30.06.2021 to 30.06.2020 RM RM
CASH FLOWS FROM OPERATING ACTIVITIES Proceeds from disposal of unquoted fixed income securities 217,028,203 233,529,562 Proceeds from redemption of unquoted fixed income securities - 85,594 Purchase of unquoted fixed income securities (98,716,185) (374,179,023) Interest income received from deposits with financial institutions 260,117 655,093 Interest income received from unquoted fixed securities 13,052,930 10,078,346 Management fee paid (3,303,899) (2,640,621) Trustee fee paid (165,195) (132,031) Payments for other fees and expenses (10,285) (22,236) Net cash generated from/(used in) operating activities 128,145,686 (132,625,316)
CASH FLOWS FROM FINANCING ACTIVITIES Cash proceeds from units created 142,086,907 311,727,730 Payments for cancellation of units (238,672,792) (162,726,077) Distribution paid (3,360,236) (109,497) Net cash (used in)/generated from financing activities (99,946,121) 148,892,156
Net increase in cash and cash equivalents 28,199,565 16,266,840 Cash and cash equivalents at the beginning of the financial period 19,798,284 36,062,015 Cash and cash equivalents at the end of the financial period 47,997,849 52,328,855
Cash and cash equivalents comprised of: Deposits with licensed financial institutions 47,970,074 52,308,936 Bank balances 27,775 19,919 Cash and cash equivalents at the end of the financial period 47,997,849 52,328,855
The accompanying notes to the financial statements form an integral part of the unaudited financial statements. 12 PRINCIPAL LIFETIME BOND FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS FINANCIAL PERIOD ENDED 30 JUNE 2021
1. THE FUND, THE MANAGER AND ITS PRINCIPAL ACTIVITIES
Principal Lifetime Bond Fund (the “Fund”) is governed by a Principal Master Deed dated 15 May 2008, a Fourth Supplemental Master Deed dated 18 March 2009, a Thirteenth Supplemental Master Deed dated 26 June 2012, an Eighteenth Supplemental Master Deed dated 25 March 2015 and a Twentieth Supplemental Master Deed dated 21 October 2019 (collectively referred to as the “Deeds”) entered into between Principal Asset Management Berhad (the “Manager”) and PB Trustee Services Berhad (the “Trustee”).
The Fund will invest between 70% to 98% (both inclusive) of the Fund’s NAV in debentures carrying at least a “BBB3” or “P2” rating by RAM or equivalent rating by MARC or by local rating agency(ies) of the country of issuance or “BBB-” by S&P or equivalent rating by any other international rating agencies. The Fund may invest up to 40% of its NAV in Unrated Debentures. The Fund may opt to seek investment exposure via collective investment scheme that is in line with the Fund’s objective, subject to the requirement of the Guidelines on Unit Trust Funds (“GUTF”). The rest of the Fund is maintained in the form of liquid assets to meet any withdrawal payments to you. In line with its objective, the investment strategy and policy of the Fund is to invest in a diversified portfolio of approved fixed income securities consisting primarily of bonds, aimed to provide a steady stream of income. To achieve its objective, the Fund may also invest in structured products and/or derivatives such as forward contracts, options, futures contracts and swap agreements, that are related/linked to fixed income securities.
The asset allocation strategy for this Fund is as follows: • between 70% to 98% (both inclusive) of the Fund’s NAV in debentures; • up to 28% of the Fund’s NAV in other permissible investments; • up to 40% of the Fund’s NAV in Unrated Debentures; and • at least 2% of the Fund’s NAV in liquid assets.
All investments are subjected to the SC Guidelines on Unit Trust Funds, SC requirements, the Deeds, except where exemptions or variations have been approved by the SC, internal policies and procedures and the Fund’s objective.
The Manager, 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 Manager 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.
13 PRINCIPAL LIFETIME BOND FUND
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Basis of preparation (continued)
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 Manager to exercise their judgement in the process of applying the Fund’s accounting policies. Although these estimates and assumptions are based on the Manager’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 estimates and assumptions are significant to the financial statements are disclosed in Note 2(j).
There are no other standards, amendments to standards or interpretations effective for financial period beginning on 1 January 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 July 2021 are applicable to the Fund.
(b) Financial assets and financial liabilities
Classification
The Fund classifies 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 contractual cash flows of the Fund’s debt securities are solely payment of principal and interest (“SPPI”). However, these securities are neither held for the purpose of collecting contractual cash flows nor held both for collecting contractual cash flows and for sale. The collection of contractual cash flows is only incidental to achieving the Fund’s business model’s objective. Consequently, all investments are measured at fair value through profit or loss.
The Fund classifies cash and cash equivalents and amount due from Manager 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.
14 PRINCIPAL LIFETIME BOND FUND
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. 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 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 year which they arise.
Unquoted fixed income securities denominated in MYR are revalued on a daily basis based on fair value prices quoted by a Bond Pricing Agency (“BPA”) registered with the SC as per the GUTF. Refer to Note 2(j) for further explanation.
Deposits with licensed financial institutions are stated at cost plus accrued interest calculated on the effective interest method over the period from the date of placement to the date of maturity of the respective deposits.
Financial assets at amortised cost and other financial liabilities are subsequently carried at amortised cost using the effective interest method.
Impairment for assets carried at amortised costs
The Fund measures credit risk and expected credit losses (“ECL”) using probability of default, exposure at default and loss given default. The Manager consider both historical analysis and forward looking information in determining any ECL. The Manager 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 Manager as any contractual payment which is more than 30 days past due.
Definition of default and credit-impaired financial assets
Any contractual payment which is more than 90 days past due is considered credit impaired.
15 PRINCIPAL LIFETIME BOND FUND
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Financial assets and financial liabilities (continued)
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
Interest income from deposits with licensed financial institutions and unquoted fixed income securities are recognised on a time proportionate basis using the effective Interest rate method on an accrual basis.
Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for financial assets that subsequently become credit- impaired. For credit-impaired financial assets the effective Interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss allowance).
Realised gain or loss on disposal of unquoted fixed income securities are accounted for as the difference between the net disposal proceeds and the carrying amount of unquoted fixed income securities, determined on cost adjusted for accretion of discount or amortisation of premium.
(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 MYR, which is the Fund’s functional and presentation currency.
(e) Cash and cash equivalents
For the purpose of statement of cash flows, cash and cash equivalents comprise bank balance and deposits with licensed financial institutions held in highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
(f) 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.
Withholding taxes on investment income from investment are based on tax regime of the respective countries that the Fund invests in. They are presented within other expenses line in the statement of comprehensive income.
(g) Distribution
A distribution to the Fund’s unit holders is accounted for as a deduction from realised reserve. A proposed distribution is recognised as a liability in the financial period in which it is approved by the Trustee.
16 PRINCIPAL LIFETIME BOND FUND
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(h) Unit holders’ contributions
The unit holders’ contributions to the Fund meet the criteria to be classified as equity instruments under MFRS 132 “Financial Instruments: Presentation”. Those criteria include:
• the units entitle the holder to a proportionate share of the Fund’s NAV; • the units are the most subordinated class and class features are identical; • there is no contractual obligations to deliver cash or another financial asset other than the obligation on the Fund to repurchase; and • the total expected cash flows from the units over its life are based substantially on the profit or loss of the Fund.
The outstanding units are carried at the redemption amount that is payable at each financial year if unit holder exercises the right to put the unit back to the Fund.
Units are created and cancelled at prices based on the Fund’s NAV per unit at the time of creation or cancellation. The Fund’s NAV per unit is calculated by dividing the net assets attributable to unit holders with the total number of outstanding units.
(i) Realised and unrealised portions of profit or loss after tax
The analysis of realised and unrealised profit or loss after tax as presented on the statement of comprehensive income is prepared in accordance with GUTF.
(j) Critical accounting estimates and judgments 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 judgements are continually evaluated by the Manager and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Estimate of fair value of unquoted fixed income securities
In undertaking any of the Fund’s investment, the Manager will ensure that all assets of the Fund under management will be valued appropriately, that is at fair value and in compliance with the GUTF.
Ringgit-denominated unquoted fixed income securities are valued using fair value prices quoted by a BPA. Where the Manager is of the view that the price quoted by BPA for a specific unquoted fixed income securities differs from the market price by more than 20 bps, the Manager may use market price, provided that the Manager records its basis for using a non-BPA price, obtains necessary internal approvals to use the non-BPA price, and keeps an audit trail of all decisions and basis for adopting the use of non-BPA price.
17 PRINCIPAL LIFETIME BOND FUND
3. RISK MANAGEMENT OBJECTIVES AND POLICIES
The investment objective of the Fund is to provide regular income as well as to achieve medium to long-term capital appreciation through investments primarily in Malaysian bonds.
The Fund is exposed to a variety of risks which include market risk (inclusive of price risk and interest rate risk), credit risk and liquidity risk.
Financial risk management is carried out through internal control process adopted by the Manager and adherence to the investment restrictions as stipulated in the Deeds and GUTF.
(a) Market risk
(i) Price risk
This is the risk that the fair value of an investment in unquoted fixed income securities will fluctuate because of changes in market prices (other than those arising from interest rate risk and currency risk).
The Fund is exposed to price risk arising from interest rate fluctuation in relation to its investments in unquoted fixed income securities. The Fund’s exposure to price risk arising from interest rate fluctuation and the related sensitivity analysis are disclosed in “interest rate risk” below.
(ii) Interest rate risk
In general, when interest rates rise, unquoted fixed income securities prices will tend to fall and vice versa. Therefore, the NAV of the Fund may also tend to fall when interest rates rise or are expected to rise. However, investors should be aware that should the Fund holds an unquoted fixed income securities till maturity, such price fluctuations would dissipate as it approaches maturity, and thus the growth of the NAV shall not be affected at maturity. In order to mitigate interest rates exposure of the Fund, the Manager will manage the duration of the portfolio via shorter or longer tenured assets depending on the view of the future interest rate trend of the Manager, which is based on its continuous fundamental research and analysis.
Investors should note that the movement in prices of unquoted fixed income securities and money market instruments are benchmarked against interest rates. As such, the investments are exposed to the movement of the interest rates.
This risk is crucial since unquoted fixed income securities portfolio management depends on forecasting interest rate movements. Prices of unquoted fixed income securities move inversely to interest rate movements, therefore as interest rates rise, the prices of unquoted fixed income securities decrease and vice versa. Furthermore, unquoted fixed income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate movements.
Such investments may be subject to unanticipated rise in interest rates which may impair the ability of the issuers to meet the obligation under the instrument, especially if the issuers are highly leveraged. An increase in interest rates may therefore increase the potential for default by an issuer.
The Fund’s exposure to interest rates associated with deposits with licensed financial institutions is not material as the deposits are held on short-term basis.
18 PRINCIPAL LIFETIME BOND FUND
3. RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
(b) Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligation resulting in financial loss to the Fund.
Investment in unquoted fixed income securities may involve a certain degree of credit/default risk with regards to the issuers. Generally, credit risk or default risk is the risk of loss due to the issuer’s non-payment or untimely payment of the investment amount as well as the returns on investment. This will cause a decline in value of the defaulted unquoted fixed income securities and subsequently depress the NAV of the Fund. Usually credit risk is more apparent for an investment with a longer tenure, i.e. the longer the duration, the higher the credit risk.
Credit risk can be managed by performing continuous fundamental credit research and analysis to ascertain the creditworthiness of its issuer. In addition, the Manager imposes a minimum rating requirement as rated by either local and/or foreign rating agencies and manages the duration of the investment in accordance with the objective of the Fund. For this Fund, the unquoted fixed income securities investments must satisfy a minimum rating requirement at least a “BBB3” or “P2” rating by RAM or equivalent rating by MARC or by local rating agency(ies) of the country of issuance or “BBB-” by S&P or equivalent rating by any other international rating agencies.
The credit risk arising from placements of deposits in licensed financial institutions is managed by ensuring that the Fund will only place deposits in reputable licensed financial institutions.
For this Fund, the unquoted fixed income securities must satisfy a minimum rating requirement of at least a “BBB3” or “P2” rating by RAM or equivalent rating by MARC or by local rating agency(ies) of the country of issuance or “BBB-” by S&P or equivalent rating by Moody’s or Fitch.
For amount due from Manager, the settlement terms of the proceeds from the creation of units’ receivable from the Manager are governed by the GUTF.
(c) Liquidity risk
Liquidity risk is the risk that the Fund will encounter difficulty in meeting its financial obligations.
The Manager manages this risk by maintaining sufficient level of liquid assets to meet anticipated payments and cancellations of the units by unit holders. Liquid assets comprise bank balances, deposits with licensed financial institutions and other instruments, which are capable of being converted into cash within 7 business days. Generally, all investments are subject to a certain degree of liquidity risk depending on the nature of the investment instruments, market, sector and other factors. For the purpose of the Fund, the Manager will attempt to balance the entire portfolio by investing in a mix of assets with satisfactory trading volume and those that occasionally could encounter poor liquidity. This is expected to reduce the risks for the entire portfolio without limiting the Fund’s growth potentials.
19 PRINCIPAL LIFETIME BOND FUND
3. RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
(d) Capital risk management
The capital of the fund is represented by equity consisting of unit holders’ capital and retained earnings. The amount of capital can change significantly on a daily basis as the Fund is subject to daily subscriptions and redemptions at the discretion of unit holders. 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 unit holders 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 value 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 year 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 Manager 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.
20 PRINCIPAL LIFETIME BOND FUND
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 30.06.2021 Financial assets at fair value through profit or loss: - Unquoted fixed Income securities - 578,637,267 - 578,637,267
31.12.2020 Audited Financial assets at fair value through profit or loss: - Unquoted fixed Income securities - 711,169,546 - 711,169,546
Financial instruments that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within Level 2. This includes unquoted fixed income securities. As Level 2 instruments include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non- transferability, which are generally based on available market information. The Fund’s policies on valuation of these financial assets are stated in Note 2(b).
(ii) The carrying values of cash and cash equivalents, amount due from Manager and all current liabilities are a reasonable approximation of their fair values due to their short term nature.
4. MANAGEMENT FEE
In accordance with the Deeds, the Manager is entitled to a maximum fee of 1.50% per annum, calculated daily based on the NAV of the Fund.
For the six months financial period ended 30 June 2021, the management fee was recognised at a rate of 1.00% per annum (30.06.2020: 1.00% per annum).
There was no further liability to the Manager in respect of management fee other than the amount recognised above.
21 PRINCIPAL LIFETIME BOND FUND
5. TRUSTEE FEE
In accordance with the Deeds, the Trustee is entitled to a maximum fee of 0.05% per annum, calculated daily based on the NAV of the Fund. The Trustee’s fee includes local custodian fee but excludes foreign sub-custodian fee (if any).
For the six months financial period ended 30 June 2021, the Trustee fee was recognised at a rate of 0.05% per annum (30.06.2020: 0.05% per annum).
There was no further liability to the Trustee in respect of Trustee fee other than the amount recognised above.
6. DISTRIBUTION
Distribution to unit holders was derived from the following sources:
01.01.2021 01.01.2020 to 30.06.2021 to 30.06.2020 RM RM
Interest income 7,697,482 6,495,017 Net realised (loss)/gain from sale of investments (455,495) 3,108,098 Prior financial periods’ realised income 22,155,359 426,541 29,397,346 10,029,656 Less: Expenses (2,012,243) (1,717,632) Net distribution amount 27,385,103 8,312,024
Gross/Net distribution per unit (sen) Distribution on 19 January 2021 3.56 - Distribution on 15 April 2021 1.15 - Distribution on 17 January 2020 - 2.05
Gross distribution was derived using total income less total expenses. Net distribution above is sourced from current and prior financial years’ realised income.
Gross distribution per unit is derived from gross realised income less expenses, divided by the number of units in circulation. Net distribution per unit is derived from gross realised income less expenses and taxation, divided by the number of units in circulation.
There are unrealised losses of RM16,053,714 for the six months financial period ended 30 June 2021.
7. TAXATION
01.01.2021 01.01.2020 to 30.06.2021 to 30.06.2020 RM RM Tax charged for the financial period: - Current taxation - -
22 PRINCIPAL LIFETIME BOND FUND
7. TAXATION (CONTINUED)
A numerical reconciliation between the profit before taxation multiplied by the Malaysian statutory income tax rate and tax expense of the Fund was as follows:
01.01.2021 01.01.2020 to 30.06.2021 to 30.06.2020 RM RM
(Loss)/Profit before taxation (4,264,907) 14,570,875
Taxation at Malaysian statutory rate of 24% (1,023,577) 3,497,010 Tax effects of: Loss not deductible for tax purposes/(Investment income not subject to tax) 217,731 (4,195,232) Expenses not deductible for tax purposes 39,851 575,394 Restriction on tax deductible expenses for Unit Trust Funds 765,995 122,828 Taxation - -
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
30.06.2020 31.12.2020 Audited RM RM
At fair value through profit or loss: - Unquoted fixed income securities 578,637,267 711,169,546
01.01.2021 01.01.2020 to 30.06.2021 to 30.06.2020 RM RM
Net (loss)/gain on financial assets at fair value through profit or loss: - Realised gain on disposals 156,150 3,596,816 - Unrealised fair value (loss)/gain (13,972,885) 2,438,589 (13,816,735) 6,035,405
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 30.06.2021 UNQUOTED FIXED INCOME SECURITIES
7-Eleven Malaysia Holdings Bhd 4.00% 28/06/2024 (AA3) 2,300,000 2,303,958 2,303,954 0.36 7-Eleven Malaysia Holdings Bhd 4.28% 26/06/2026 (AA3) 4,100,000 4,110,431 4,110,544 0.65 7-Eleven Malaysia Holdings Bhd 4.73% 28/06/2028 (AA3) 4,300,000 4,314,537 4,327,343 0.68
23 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 30.06.2021 (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
Aeon Credit Service M Bhd 3.80% 10/02/2027 (AA3) 1,350,000 1,378,262 1,370,519 0.22 Aeon Credit Service M Bhd 3.85% 10/02/2028 (AA3) 1,000,000 1,022,052 1,009,073 0.16 Aeon Credit Service M Bhd 3.95% 12/03/2030 (A1) 8,600,000 8,717,574 8,701,156 1.37 Alliance Bank (M) Bhd 4.05% 26/10/2035 (A2) 5,000,000 5,036,062 5,018,913 0.79 Ara Bintang Bhd 5.50% 17/03/2026 (NR) 21,900,000 21,946,200 22,555,896 3.56 AZRB Capital Sdn Bhd 4.70% 23/12/2022 (AA3) 4,000,000 4,008,802 4,060,305 0.64 AZRB Capital Sdn Bhd 4.85% 26/12/2024 (AA3) 3,700,000 3,714,187 3,792,199 0.60 AZRB Capital Sdn Bhd 5.00% 24/12/2026 (AA3) 1,340,000 1,353,754 1,376,690 0.22 Bank Pembangunan Malaysia Bhd 4.05% 06/06/2031 (AAA) 1,850,000 1,854,721 1,859,328 0.29 Bermaz Auto Bhd 3.26% 18/12/2023 (AA3) 2,080,000 2,082,415 2,078,255 0.33 CIMB Thai Bank 4.15% 06/07/2029 (AA3) 1,800,000 1,842,082 1,863,096 0.29 CIMB Thai Bank 5.35% 10/07/2026 (AA3) 5,000,000 5,127,131 5,129,422 0.81 DanaInfra Nasional Bhd 5.06% 12/02/2049 # 1,200,000 1,503,570 1,315,276 0.21 DRB-Hicom Bhd 4.15% 12/12/2022 (AAA) 1,600,000 1,604,864 1,611,920 0.25 DRB-Hicom Bhd 4.85% 11/12/2026 (AAA) 7,050,000 7,067,799 7,234,814 1.14 DRB-Hicom Bhd 5.08% 30/08/2030 (AAA) 2,500,000 2,553,249 2,570,949 0.41 DRB-Hicom Bhd 5.10% 12/12/2029 (AAA) 13,350,000 13,481,020 13,669,797 2.16 Eco World Capital Services Bhd 5.85% 24/03/2026 (NR) 12,000,000 12,190,405 12,431,965 1.96 Edra Energy Sdn Bhd 5.82% 04/07/2025 (AA3) 5,000,000 5,444,995 5,551,565 0.88 Edra Energy Sdn Bhd 6.09% 04/01/2030 (AA3) 1,000,000 1,186,903 1,158,432 0.18
24 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 30.06.2021 (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
Edra Energy Sdn Bhd 6.19% 04/07/2031 (AA3) 2,500,000 3,043,676 2,931,668 0.46 Edra Energy Sdn Bhd 6.31% 05/01/2033 (AA3) 2,000,000 2,498,849 2,373,978 0.38 Edra Energy Sdn Bhd 6.39% 05/01/2034 (AA3) 10,000,000 12,096,402 11,951,871 1.89 Edra Energy Sdn Bhd 6.43% 05/07/2034 (AA3) 2,500,000 3,149,898 2,996,778 0.47 Edra Energy Sdn Bhd 6.71% 05/01/2038 (AA3) 5,000,000 6,017,625 6,183,095 0.98 Edra Solar Sdn Bhd 4.10% 11/10/2022 (AA2) 800,000 809,924 819,467 0.13 Edra Solar Sdn Bhd 4.40% 09/10/2026 (AA2) 150,000 152,892 156,827 0.02 Edra Solar Sdn Bhd 4.85% 11/10/2034AA2 150,000 151,575 152,911 0.02 Fortune Premiere Sdn Bhd 4.65% 21/12/2022 (AA) 2,000,000 2,055,792 2,051,388 0.32 Fortune Premiere Sdn Bhd 4.80% 13/3/2023 (AA) 2,500,000 2,536,493 2,609,868 0.41 Fortune Premiere Sdn Bhd 5.05% 31/10/2025 (AA) 3,000,000 3,025,434 3,209,469 0.51 Gamuda Land (T12) Sdn Bhd 3.75% 12/08/2027 (AA3) 2,000,000 2,027,945 1,993,405 0.31 Gamuda Land (T12) Sdn Bhd 3.90% 12/08/2030 (AA3) 2,500,000 2,536,329 2,458,704 0.39 GENM Capital Bhd 4.90% 22/08/2025 (AA1) 5,000,000 5,398,668 5,163,247 0.82 GENM Capital Bhd 4.98% 11/07/2023 (AA1) 5,000,000 5,303,106 5,202,705 0.82 Genting RMTN Bhd 4.18% 08/11/2029 (AA1) 11,500,000 11,678,706 11,079,733 1.75 GII Murabahah 4.119% 30/11/2034 (NR) 800,000 896,106 816,391 0.13 GII Murabahah 4.64% 15/11/2049 (NR) 25,650,000 28,834,824 26,463,972 4.18 Guan Chong Bhd 3.84% 03/12/2027 (AA3) 3,090,000 3,116,507 3,048,921 0.48 Hong Leong Financial Group 4.30% 14/06/2029 (AA2) 2,200,000 2,234,381 2,274,256 0.36 IJM Land Bhd 4.73% 17/03/2119 (A2) 5,550,000 5,629,067 5,567,481 0.88 IJM Land Bhd 5.65% 17/03/2119 (A2) 2,000,000 2,032,197 2,109,677 0.33 Imtiaz Sukuk II Bhd 3.90% 19/04/2028 (AA2) 3,180,000 3,204,804 3,241,628 0.51 25 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 30.06.2021 (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
Infracap Resources Sdn Bhd 4.40% 15/04/2031 (AAA) 5,000,000 5,046,411 5,186,811 0.82 Infracap Resources Sdn Bhd 4.90% 15/04/2036 (AAA) 2,500,000 2,525,842 2,638,342 0.42 Jimah Energy Ventures 9.55% 11/11/2022 (AA3) 1,000,000 1,077,616 1,101,686 0.17 Kedah Cement Sdn Bhd 4.55% 07/07/2023 (AA3) 2,300,000 2,350,983 2,400,640 0.38 Konsortium KAJV Sdn Bhd 5.05% 12/05/2023 (AA3) 5,000,000 5,056,043 5,082,289 0.80 Konsortium KAJV Sdn Bhd 5.10% 13/05/2024 (AA3) 500,000 506,727 508,078 0.08 Konsortium KAJV Sdn Bhd 5.15% 13/05/2025 (AA3) 1,000,000 1,015,642 1,019,675 0.16 Lafarge Cement Sdn Bhd 4.40% 11/12/2023 (AA3) 15,500,000 15,658,478 15,876,200 2.51 LBS Bina Group Bhd 6.80% 29/03/2120 (NR) 4,300,000 4,373,895 4,495,198 0.71 Lembaga Pembiayaan Perumahan Selangor 3.86% 18/09/2048 (NR) 400,000 413,301 359,534 0.06 Mah Sing Group Bhd 4.35% 13/03/2025 (NR) 29,300,000 29,731,069 30,280,707 4.78 Malayan Banking Bhd 2.90% 09/10/2030 (AA1) 2,500,000 2,516,486 2,505,461 0.40 Malayan Banking Bhd 3.10% 08/10/2032 (AA1) 5,000,000 5,035,247 4,945,497 0.78 Malaysia Airports Hldg Bhd 3.30% 05/11/2027 (AAA) 10,000,000 10,050,630 9,814,930 1.55 Malaysia Airports Holding Bhd 3.60% 06/11/2030 (AAA) 5,000,000 5,027,616 4,821,766 0.76 Malaysia Government Securities 4.07% 15/06/2050 (NR) 7,000,000 7,025,624 6,749,939 1.07 Malaysian Resources Corporation Bhd 3.85% 14/08/2023 (AA3) 1,150,000 1,168,774 1,164,852 0.18 Malaysian Resources Corporation Bhd 4.25% 13/08/2027 (AA3) 1,400,000 1,429,588 1,397,460 0.22 Malaysian Resources Corporation Bhd 4.45% 14/08/2030 (AA3) 2,100,000 2,150,326 2,048,678 0.32 MBSB Bank Bhd 5.25% 19/12/2031 (A3) 1,150,000 1,151,654 1,215,997 0.19 26 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 30.06.2021 (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
OSK Rated Bond Sdn Bhd 4.52% 30/04/2031AA 5,000,000 5,038,389 5,120,339 0.81 Pelabuhan Tanjung Pelepas Sdn Bhd 3.15% 28/08/2025 (AA3) 2,250,000 2,274,272 2,255,552 0.36 Pelabuhan Tanjung Pelepas Sdn Bhd 3.30% 27/08/2027 (AA3) 2,450,000 2,477,688 2,416,806 0.38 Pelabuhan Tanjung Pelepas Sdn Bhd 4.05% 18/06/2030 (AA3) 1,800,000 1,802,596 1,794,010 0.28 Penang Port Sdn Bhd 4.30% 24/12/2026 (AA3) 500,000 500,177 518,727 0.08 Penang Port Sdn Bhd 4.48% 27/12/2029AA- 1,050,000 1,050,387 1,088,659 0.17 Penang Port Sdn Bhd 4.68% 26/12/2031 (AA3) 1,850,000 1,850,712 1,923,972 0.30 Pengerang LNG (Two) Sdn Bhd 2.67% 21/10/2026 (AAA) 500,000 502,597 492,357 0.08 Pengerang LNG (Two) Sdn Bhd 3.09% 21/10/2031 (AAA) 450,000 452,705 425,399 0.07 Pengurusan Air SPV Bhd 1.00% 28/09/2035 (AAA) 300,000 213,077 195,314 0.03 Pengurusan Air SPV Bhd 2.91% 28/09/2027 (AAA) 5,000,000 5,051,762 4,906,371 0.78 Perbadanan Kemajuan Pertanian Negeri Pahang 3.81% 30/10/2023 (AA3) 4,000,000 4,030,132 4,021,647 0.64 Perbadanan Kemajuan Pertanian Negeri Pahang 3.96% 30/10/2024 (AA3) 2,000,000 2,016,403 2,004,733 0.32 Perbadanan Kemajuan Pertanian Negeri Pahang 4.21% 30/10/2026 (AA3) 2,000,000 2,018,886 1,989,122 0.31 Perbadanan Kemajuan Pertanian Negeri Pahang 4.36% 29/10/2027 (AA3) 3,000,000 3,030,312 2,968,398 0.47 Perbadanan Kemajuan Pertanian Negeri Pahang 5.15% 10/08/2023 (AA3) 1,000,000 1,046,907 1,052,729 0.17 Petroleum Sarawak Explor & Pro 3.80% 17/03/2028 (AAA) 1,000,000 1,010,827 1,013,907 0.16 Petroleum Sarawak Explor & Pro 4.10% 19/03/2031 (AAA) 1,500,000 1,517,523 1,521,273 0.24
27 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 30.06.2021 (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
Prasarana Malaysia Bhd 3.44% 24/02/2040 (NR) 2,750,000 2,782,656 2,462,804 0.39 Press Metal Aluminium Holding Bhd 4.10% 17/10/2024 (AA3) 14,100,000 14,324,825 14,324,331 2.26 Projek Lebuhraya Usahasama Bhd 4.96% 12/01/2029 (AAA) 5,000,000 5,654,677 5,568,957 0.88 Projek Lebuhraya Usahasama Bhd .63% 11/01/2036 (AAA) 5,000,000 6,421,171 5,800,010 0.92 Quantum Solar Park Green Sri Sukuk 5.72% 05/10/2029 (AA3) 750,000 804,095 819,650 0.13 Quantum Solar Park Green Sri Sukuk 5.76% 05/04/2030 (AA3) 7,500,000 7,550,656 8,202,536 1.30 Quantum Solar Park Green Sri Sukuk 5.88% 06/10/2031 (AA3) 2,500,000 2,508,055 2,743,636 0.43 Quantum Solar Park Green Sri Sukuk 5.96% 06/10/2032 (AA3) 10,000,000 10,603,663 10,998,227 1.74 RHB Bank Bhd 3.65% 28/04/2031 (AA3) 3,850,000 3,874,640 3,917,529 0.62 RHB Islamic Bank Bhd 4.32% 21/05/2029 (AA3) 3,100,000 3,115,043 3,210,182 0.51 Sabah Development Bank Bhd 5.30% 11/05/2022 (AA1) 2,500,000 2,567,587 2,558,839 0.40 Sabah Development Bank Bhd 5.30% 24/4/2024 (AA1) 4,500,000 4,548,673 4,728,976 0.75 Sarawak Energy Bhd 5.50% 04/07/2029 (AAA) 1,500,000 1,778,909 1,728,288 0.27 Sarawak Energy Bhd 4.95% 25/11/2033 (AAA) 5,000,000 5,742,762 5,320,483 0.84 Sarawak Hidro Sdn Bhd 4.38% 11/08/2025 (AAA) 3,500,000 3,787,776 3,747,345 0.59 SEGI Astana Sdn Bhd 5.70% 07/01/2028 (AA3) 13,400,000 14,150,033 14,472,973 2.29 SME Bank Bhd 3.30% 23/04/2027 (NR) 500,000 503,119 508,384 0.08 Southern Power Generation 5.29% 31/10/2031 (AA3) 5,000,000 5,810,834 5,516,479 0.87 SP Setia Bhd 3.85% 25/06/2026 (AA) 3,500,000 3,502,215 3,502,180 0.55
28 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 30.06.2021 (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
SP Setia Bhd 4.30% 23/06/2028 (AA) 1,670,000 1,671,180 1,671,164 0.26 Starbright Capital Bhd 4.0% 27/12/2022 (AAA) 500,000 498,317 506,245 0.08 Starbright Capital Bhd 4.08% 27/12/2023 (AAA) 500,000 497,190 508,652 0.08 Starbright Capital Bhd 4.15% 27/12/2024 (AAA) 300,000 297,669 306,104 0.05 Starbright Capital Bhd 4.25% 26/12/2025 (AAA) 400,000 396,121 408,592 0.06 Starbright Capital Bhd 4.35% 24/12/2026 (AAA) 800,000 790,601 815,655 0.13 Starbright Capital Bhd 4.45% 27/12/2027 (AAA) 500,000 493,205 507,667 0.08 Starbright Capital Bhd 4.55% 27/12/2028 (AAA) 650,000 640,038 655,622 0.10 Swirl Assets Bhd 18/09/2023 (AAA) 1,000,000 1,009,781 1,007,251 0.16 Swirl Assets Bhd 18/09/2024 (AAA) 1,250,000 1,262,586 1,254,136 0.21 Swirl Assets Bhd 18/09/2025 (AAA) 1,700,000 1,717,605 1,696,865 0.27 Tadau Energy Sdn Bhd 5.40% 28/7/2025 AA3 1,000,000 1,026,508 1,085,152 0.17 Talam Transform Bhd 0% 28/06/2022 (NR) 1,144,515 762,026 1,834,369 0.29 Tenaga Nasional Bhd 2.90% 12/08/2030 (AAA) 1,150,000 1,162,426 1,094,634 0.17 Tenaga Nasional Bhd 3.25% 10/08/2035 (AAA) 3,950,000 3,997,833 3,620,055 0.57 Tenaga Nasional Bhd 3.55% 10/08/2040 (AAA) 6,950,000 7,041,930 6,339,285 1.01 Tenaga Nasional Bhd 5.18% 3/8/2037 (AAA) 1,000,000 1,094,809 1,125,004 0.18 Tenaga Nasional Bhd 4.98% 27/08/2038 (AAA) 3,000,000 3,198,297 3,296,804 0.52 TG Excellence Bhd 3.95% 27/02/2120 (AA) 5,600,000 5,688,636 5,759,473 0.91 UEM Sunrise Bhd 3.90% 21/09/2023 (AA) 7,400,000 7,495,107 7,487,481 1.18 UEM Sunrise Bhd 4.00% 09/06/2023 (AA3) 3,000,000 3,006,904 3,018,124 0.48 UEM Sunrise Bhd 4.00% 16/02/2024 (AA3) 8,200,000 8,339,115 8,330,178 1.32 UEM Sunrise Bhd 4.30% 16/02/2026 (AA3) 2,500,000 2,549,479 2,525,996 0.42 UEM Sunrise Bhd 5.06% 09/12/2022 (AA3) 3,000,000 3,067,958 3,066,728 0.48
29 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 30.06.2021 (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
UEM Sunrise Bhd 5.32% 11/12/2024 (AA3) 5,000,000 5,073,506 5,201,775 0.82 UEM Sunrise Bhd 4.75% 22/03/2024 (AA3) 500,000 517,014 516,517 0.08 UEM Sunrise Bhd 5.15% 31/10/2025 (AA3) 3,500,000 3,601,128 3,639,153 0.58 UMW Holdings Bhd 6.35% 20/4/2118 (A1) 5,000,000 5,275,668 5,672,230 0.90 WCT Holdings Bhd 5.55% 03/01/2025 (AA3) 7,600,000 8,269,622 8,080,516 1.28 Westports Malaysia Sdn Bhd 4.43% 01/04/2025 (AAA) 4,000,000 4,196,552 4,258,338 0.67 YTL Corporation Bhd 3.65% 24/07/2030 (AA1) 3,000,000 3,058,649 2,902,530 0.46 YTL Corporation Bhd 4.60% 23/06/2034 (AA1) 7,700,000 7,820,034 7,618,365 1.21 YTL Power International Bhd 4.950% 11/10/2024 (AA1) 5,000,000 5,338,385 5,290,218 0.84 YTL Power International Bhd 4.65% 24.08.2023 (AA1) 6,000,000 6,281,895 6,281,697 1.00 YTL Power International Bhd 4.99% 24/08/2028 (AA1) 11,000,000 11,756,664 11,840,977 1.87 TOTAL UNQUOTED FIXED INCOME SECURITIES 558,254,515 580,399,304 578,637,267 91.43
ACCUMULATED UNREALISED LOSS ON FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (1,762,037)
TOTAL FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 578,637,267
30 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 31.12.2020 Audited UNQUOTED FIXED INCOME SECURITIES
Abu Dhabi National Energy Co PJSC (TAQA) 4.65% 03/03/2022 (NR) 12,000,000 12,212,128 12,381,337 1.69 Aeon Credit Service (M) Bhd 3.80% 10/02/2027 (AA3) 1,350,000 1,379,356 1,401,505 0.19 Aeon Credit Service (M) Bhd 3.85% 10/02/2028 (AA3) 1,000,000 1,022,843 1,038,569 0.14 Aeon Credit Service (M) Bhd 3.95% 12/03/2030 (A1) 8,600,000 8,717,552 8,753,217 1.19 Alliance Bank (M) Bhd 4.05% 26/10/2035 (A2) 5,000,000 5,036,616 5,112,966 0.70 Anih Bhd 5.58% 28/11/2025 (AA2) 5,000,000 5,373,383 5,600,660 0.76 Ara Bintang Bhd 5.50% 17/03/2026 (NR) 21,900,000 21,949,500 22,878,279 3.12 AZRB Capital Sdn Bhd 4.70% 23/12/2022 (AA3) 4,000,000 4,011,650 4,078,140 0.56 AZRB Capital Sdn Bhd 4.85% 26/12/2024 (AA3) 3,700,000 3,716,332 3,831,578 0.52 AZRB Capital Sdn Bhd 5.00% 24/12/2026 (AA3) 1,340,000 1,354,977 1,401,262 0.19 Bank Pembangunan Malaysia Bhd 2.80% 10/10/2025 (AAA) 5,000,000 5,031,068 5,036,918 0.69 Bermaz Auto Bhd 3.26% 18/12/2023 (AA3) 2,080,000 2,082,601 2,083,849 0.28 Bumitama Agri Ltd 4.20% 22/07/2026 (AA3) 1,300,000 1,324,383 1,388,252 0.19 CIMB Thai Bank PCL 4.15% 06/07/2029 (AA3) 1,800,000 1,843,691 1,883,978 0.26 CIMB Thai Bank PCL 5.350% 10/07/2026 (AA3) 5,000,000 5,170,442 5,189,155 0.71 DanaInfra Nasional Bhd 3.35% 21/09/2035 (NR) 7,100,000 7,165,164 6,961,181 0.95 DanaInfra Nasional Bhd 5.06% 12/02/2049 (NR) 1,200,000 1,507,451 1,401,343 0.19 DRB-Hicom Bhd 4.15% 12/12/2022 (A1) 1,600,000 1,605,623 1,611,654 0.22 DRB-Hicom Bhd 4.43% 29/08/2025 (A1) 1,000,000 1,017,256 1,020,357 0.14 DRB-Hicom Bhd 4.55% 12/12/2024 (A1) 1,250,000 1,253,116 1,269,266 0.17
31 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 31.12.2020 (CONTINUED) Audited (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
DRB-Hicom Bhd 4.85% 11/12/2026 (A1) 7,050,000 7,068,736 7,205,717 0.98 DRB-Hicom Bhd 5.08% 30/08/2030 (A1) 2,500,000 2,553,653 2,563,174 0.35 DRB-Hicom Bhd 5.10% 12/12/2029 (A1) 13,350,000 13,487,788 13,602,375 1.85 Edra Energy Sdn Bhd 5.82% 04/07/2025 (AA3) 5,000,000 5,480,808 5,655,060 0.77 Edra Energy Sdn Bhd 6.09% 04/01/2030 (AA3) 1,000,000 1,194,903 1,201,296 0.16 Edra Energy Sdn Bhd 6.31% 05/01/2033 (AA3) 2,000,000 2,514,328 2,492,570 0.34 Edra Energy Sdn Bhd 6.39% 05/01/2034 (AA3) 10,000,000 12,152,780 12,590,573 1.72 Edra Energy Sdn Bhd 6.43% 05/07/2034 (AA3) 5,000,000 5,807,097 6,326,817 0.86 Edra Energy Sdn Bhd 6.71% 05/01/2038 (AA3) 5,000,000 6,035,630 6,492,483 0.88 Edra Solar Sdn Bhd 4.10% 11/10/2022 (AA2) 800,000 811,082 823,637 0.11 Edra Solar Sdn Bhd 4.40% 09/10/2026 (AA2) 150,000 153,032 159,326 0.02 Edra Solar Sdn Bhd 4.85% 11/10/2034 (AA2) 150,000 151,595 160,958 0.02 Fortune Premiere Sdn Bhd 4.65% 21/12/2022 (AA2) 2,000,000 2,073,482 2,072,463 0.28 Fortune Premiere Sdn Bhd 4.80% 13/3/2023 (AA2) 2,500,000 2,535,836 2,637,511 0.36 Fortune Premiere Sdn Bhd 5.05% 05/09/2025 (AA2) 5,000,000 5,220,509 5,486,547 0.75 Fortune Premiere Sdn Bhd 5.05% 31/10/2025 (AA2) 3,000,000 3,025,966 3,272,044 0.45 Gamuda Land (T12) Sdn Bhd 3.55% 12/08/2025 (AA3) 1,300,000 1,317,954 1,322,478 0.18 Gamuda Land (T12) Sdn Bhd 3.75% 12/08/2027 (AA3) 2,000,000 2,029,178 2,030,978 0.28 Gamuda Land (T12) Sdn Bhd 3.90% 12/08/2030 (AA3) 2,500,000 2,537,932 2,533,882 0.35 GENM Capital Bhd 4.90% 22/08/2025 (AA1) 5,000,000 5,435,452 5,391,360 0.73
32 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 31.12.2020 (CONTINUED) Audited (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
GENM Capital Bhd 4.98% 11/07/2023 (AA1) 5,000,000 5,347,687 5,324,587 0.73 Genting RMTN Bhd 4.18% 08/11/2029 (AA1) 11,500,000 11,685,528 11,802,215 1.61 GII Murabahah 4.119% 30/11/2034 (NR) 20,800,000 23,373,791 22,705,719 3.09 GII Murabahah 4.467% 15/09/2039 (NR) 10,000,000 11,648,365 11,383,270 1.55 GII Murabahah 4.638% 15/11/2049 (NR) 25,650,000 28,867,021 28,929,640 3.94 GII Murabahah 4.895% 08/05/2047 (NR) 2,300,000 2,824,249 2,647,948 0.36 Guan Chong Bhd 3.84% 03/12/2027 (AA3) 3,090,000 3,118,002 3,116,144 0.42 Hong Leong Financial Group Bhd 4.30% 14/06/2029 (AA2) 2,200,000 2,239,371 2,291,521 0.31 IJM Corporation Bhd 4.76% 10/04/2029 (AA3) 3,000,000 3,036,583 3,236,922 0.44 IJM Corporation Bhd 5.05% 18/08/2028 (AA3) 1,000,000 1,094,485 1,105,830 0.15 IJM Land Bhd 4.73% 17/03/2119 (A2) 5,550,000 5,629,696 5,598,283 0.76 IJM Land Bhd Perpetual Sukuk Programme 5.65% 17/03/2119 (A2) 2,000,000 2,032,197 2,123,497 0.29 Impian Ekspresi Sdn Bhd 3.20% 27/11/2023 (AAA) 10,000,000 10,043,983 10,053,585 1.37 Jimah Energy Ventures Sdn Bhd 9.50% 12/05/2022 (AA3) 4,500,000 4,852,818 4,962,472 0.68 Jimah Energy Ventures Sdn Bhd 9.55% 11/11/2022 (AA3) 1,000,000 1,100,574 1,134,031 0.15 Kedah Cement Sdn Bhd 4.55% 07/07/2023 (A1) 2,300,000 2,352,906 2,364,836 0.32 Konsortium KAJV Sdn Bhd 5.05% 12/05/2023 (AA3) 5,000,000 5,061,528 5,142,239 0.70 Lafarge Cement Sdn Bhd 4.40% 11/12/2023 (A1) 10,500,000 10,540,667 10,542,331 1.44 LBS Bina Group Bhd 6.80% 29/03/2120 (NR) 6,800,000 6,918,793 7,232,069 0.99
33 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 31.12.2020 (CONTINUED) Audited (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
Lembaga Kemajuan Perusahaan Pertanian Negeri Pahang 3.81% 30/10/2023 (AA3) 4,000,000 4,031,356 4,030,385 0.55 Lembaga Kemajuan Perusahaan Pertanian Negeri Pahang 3.96% 30/10/2024 (AA3) 2,000,000 2,017,005 2,014,850 0.27 Lembaga Kemajuan Perusahaan Pertanian Negeri Pahang 4.21% 30/10/2026 (AA3) 2,000,000 2,019,476 2,011,373 0.27 Lembaga Kemajuan Perusahaan Pertanian Negeri Pahang 4.36% 29/10/2027 (AA3) 3,000,000 3,031,190 3,011,926 0.41 Lembaga Pembiayaan Perumahan Sektor Awam 3.86% 18/09/2048 (NR) 400,000 413,394 386,318 0.05 Mah Sing Group Bhd 4.35% 13/03/2025 (NR) 29,300,000 29,741,261 30,802,223 4.20 Malayan Banking Bhd 2.90% 09/10/2030 (AA1) 2,500,000 2,516,685 2,514,085 0.34 Malayan Banking Bhd 3.10% 08/10/2032 (AA1) 5,000,000 5,035,671 5,017,671 0.68 Malayan Banking Bhd 4.08% 22/02/2117 (AA3) 7,500,000 7,582,159 7,834,384 1.07 Malaysia Airports Holdings Bhd 3.30% 05/11/2027 (AAA) 10,000,000 10,050,630 10,052,730 1.37 Malaysia Airports Holdings Bhd 3.60% 06/11/2030 (AAA) 5,000,000 5,027,616 5,003,666 0.68 Malaysia Government Securities 4.065% 15/06/2050 (NR) 8,000,000 8,030,386 8,349,588 1.14 Malaysia Government Securities 4.232% 30/06/2031 (NR) 4,000,000 4,517,417 4,530,228 0.62 Malaysian Resources Corporation Bhd 3.85% 14/08/2023 (AA3) 1,150,000 1,169,719 1,174,676 0.16 Malaysian Resources Corporation Bhd 4.25% 13/08/2027 (AA3) 3,900,000 3,985,602 4,014,119 0.55
34 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 31.12.2020 (CONTINUED) Audited (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
Malaysian Resources Corporation Bhd 4.45% 14/08/2030 (AA3) 2,100,000 2,151,987 2,161,485 0.29 Manjung Island Energy Bhd 4.58% 25/11/2027 (AAA) 5,500,000 5,995,485 6,109,580 0.83 Manjung Island Energy Bhd 4.90% 25/11/2031 (AAA) 5,000,000 5,664,245 5,735,336 0.78 MBSB Bank Bhd 5.25% 19/12/2031 (A3) 1,150,000 1,151,820 1,228,065 0.17 Pelabuhan Tanjung Pelepas Sdn Bhd 3.15% 28/08/2025 (AA3) 2,250,000 2,274,466 2,281,756 0.31 Pelabuhan Tanjung Pelepas Sdn Bhd 3.30% 27/08/2027 (AA3) 2,450,000 2,477,910 2,477,542 0.34 Pelabuhan Tanjung Pelepas Sdn Bhd 4.05% 18/06/2030 (AA3) 1,800,000 1,802,796 1,887,918 0.26 Penang Port Sdn Bhd 4.30% 24/12/2026 (AA3) 500,000 500,236 531,666 0.07 Penang Port Sdn Bhd 4.48% 27/12/2029 (AA3) 1,050,000 1,050,516 1,135,083 0.15 Penang Port Sdn Bhd 4.68% 26/12/2031 (AA3) 1,850,000 1,850,949 2,030,584 0.28 Pengerang LNG (Two) Sdn Bhd 2.67% 21/10/2026 (AAA) 500,000 502,633 500,333 0.07 Pengerang LNG (Two) Sdn Bhd 3.09% 21/10/2031 (AAA) 450,000 452,743 443,522 0.06 Pengurusan Air SPV Bhd 1.00% 28/09/2035 (AAA) 300,000 210,774 207,691 0.03 Pengurusan Air SPV Bhd 2.91% 28/09/2027 (AAA) 5,000,000 5,053,160 5,052,020 0.69 Perbadanan Kemajuan Negeri Selangor 3.765% 13/01/2023 (AA3) 5,000,000 5,091,377 5,141,763 0.70 Perbadanan Kemajuan Negeri Selangor 5.013% 31/10/2023 (AA3) 10,000,000 10,570,317 10,541,563 1.44 Perbadanan Kemajuan Negeri Selangor 5.15% 10/08/2023 (AA3) 10,000,000 10,531,446 10,662,222 1.45
35 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 31.12.2020 (CONTINUED) Audited (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
Prasarana Malaysia Bhd 3.44% 24/02/2040 (NR) 2,750,000 2,783,434 2,672,031 0.36 Press Metal Aluminium Holdings Bhd 4.10% 17/10/2024 (AA3) 14,100,000 14,341,845 14,326,197 1.95 Projek Lebuhraya Usahasama Bhd 4.96% 12/01/2029 (AAA) 5,000,000 5,687,022 5,748,016 0.78 Projek Lebuhraya Usahasama Bhd 5.63% 11/01/2036 (AAA) 5,000,000 6,456,613 6,179,952 0.84 Quantum Solar Park Green SRI Sukuk 5.72% 05/10/2029 (A1) 750,000 806,341 810,265 0.11 Quantum Solar Park Green SRI Sukuk 5.76% 05/04/2030 (A1) 7,500,000 7,549,692 8,114,320 1.11 Quantum Solar Park Green SRI Sukuk 5.84% 04/04/2031 (A1) 5,000,000 5,016,315 5,425,550 0.74 Quantum Solar Park Green SRI Sukuk 5.88% 06/10/2031 (A1) 2,500,000 2,507,552 2,716,313 0.37 Quantum Solar Park Green SRI Sukuk 5.96% 06/10/2032 (A1) 5,000,000 5,163,522 5,449,030 0.74 RHB Islamic Bank Bhd 4.32% 21/05/2029 (AA3) 3,100,000 3,114,309 3,238,526 0.44 Sabah Development Bank Bhd 5.30% 11/05/2022 (AA1) 2,500,000 2,595,373 2,605,514 0.35 Sabah Development Bank Bhd 5.30% 24/04/2024 (AA1) 4,500,000 4,550,279 4,868,769 0.66 Sarawak Energy Bhd 4.95% 25/11/2033 (AAA) 5,000,000 5,766,220 5,746,061 0.78 Sarawak Energy Bhd 5.50% 04/07/2029 (AAA) 1,500,000 1,791,990 1,815,154 0.25 Sarawak Hidro Sdn Bhd 4.38% 11/08/2025 (AAA) 3,500,000 3,814,978 3,809,925 0.52 Segi Astana Sdn Bhd 5.70% 07/01/2028 (AA3) 13,400,000 14,180,791 14,812,375 2.02 SME Bank Bhd 3.30% 23/04/2027 (NR) 500,000 503,164 520,334 0.07
36 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 31.12.2020 (CONTINUED) Audited (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
Southern Power Generation Sdn Bhd 4.94% 30/04/2026 (AA3) 5,000,000 5,504,243 5,520,933 0.75 Southern Power Generation Sdn Bhd 5.53% 31/10/2034 (AA3) 5,000,000 5,492,889 5,912,525 0.81 Southern Power Generation Sdn Bhd 5.57% 30/04/2035 (AA3) 10,000,000 11,028,685 11,839,940 1.61 Sports Toto Malaysia Sdn Bhd 4.95% 30/06/2022 (AA3) 1,800,000 1,817,585 1,839,280 0.25 Sports Toto Malaysia Sdn Bhd 5.25% 30/06/2026 (AA3) 7,500,000 7,779,862 7,907,965 1.08 Starbright Capital Bhd 4.00% 27/12/2022 (AAA) 500,000 497,800 508,904 0.07 Starbright Capital Bhd 4.08% 27/12/2023 (AAA) 500,000 496,700 513,168 0.07 Starbright Capital Bhd 4.15% 27/12/2024 (AAA) 300,000 297,391 310,053 0.04 Starbright Capital Bhd 4.25% 26/12/2025 (AAA) 400,000 395,771 415,738 0.06 Starbright Capital Bhd 4.35% 24/12/2026 (AAA) 800,000 789,941 833,558 0.11 Starbright Capital Bhd 4.45% 27/12/2027 (AAA) 500,000 492,818 520,993 0.07 Starbright Capital Bhd 4.55% 27/12/2028 (AAA) 650,000 639,568 676,386 0.09 Swirl Assets Bhd ABSMTN 1095D 18/09/2023 (AAA) 1,000,000 1,009,781 1,010,691 0.14 Swirl Assets Bhd ABSMTN 1461D 18/09/2024 (AAA) 1,250,000 1,262,586 1,263,186 0.17 Swirl Assets Bhd ABSMTN 1826D 18/09/2025 (AAA) 1,700,000 1,717,605 1,716,738 0.23 Tadau Energy Sdn Bhd Sri Sukuk 5.40% 28/07/2025 (AA3) 1,000,000 1,027,343 1,101,025 0.15 Tadau Energy Sdn Bhd Sri Sukuk 5.50% 27/07/2026 (AA3) 1,500,000 1,542,774 1,672,497 0.23 Talam Transform Bhd 0% 28/06/2022 (Ca) 1,144,515 448,717 1,036,369 0.14 Tenaga Nasional Bhd 2.90% 12/08/2030 (AAA) 1,150,000 1,162,975 1,136,674 0.15
37 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 31.12.2020 (CONTINUED) Audited (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
Tenaga Nasional Bhd 3.25% 10/08/2035 (AAA) 3,950,000 3,999,943 3,804,616 0.52 Tenaga Nasional Bhd 3.55% 10/08/2040 (AAA) 6,950,000 7,045,986 6,751,515 0.92 TG Excellence Bhd 3.95% 27/02/2120 (AA3) 5,600,000 5,691,491 5,867,813 0.80 UEM Sunrise Bhd 3.90% 21/09/2023 (AA3) 7,400,000 7,500,362 7,487,458 1.02 UEM Sunrise Bhd 4.00% 09/06/2023 (AA3) 3,000,000 3,007,233 3,018,603 0.41 UEM Sunrise Bhd 4.75% 22/03/2024 (AA3) 3,000,000 3,112,824 3,114,792 0.42 UEM Sunrise Bhd 5.06% 09/12/2022 (AA3) 3,000,000 3,088,212 3,082,174 0.42 UEM Sunrise Bhd 5.15% 31/10/2025 (AA3) 6,000,000 6,186,734 6,344,994 0.86 UEM Sunrise Bhd 5.32% 11/12/2024 (AA3) 5,000,000 5,081,946 5,261,204 0.72 UMW Holdings Bhd 6.35% 20/04/2118 (A1) 5,000,000 5,290,072 5,744,100 0.78 UniTapah Sdn Bhd 5.590% 12/12/2024 (AA1) 5,000,000 5,187,089 5,495,884 0.75 WCT Holdings Bhd 5.55% 03/01/2025 (AA3) 11,500,000 12,607,086 12,400,885 1.69 Westports Malaysia Sdn Bhd 4.43% 01/04/2025 (AA1) 4,000,000 4,216,081 4,302,707 0.59 YTL Corporation Bhd 3.65% 24/07/2030 (AA1) 3,000,000 3,060,332 3,036,990 0.42 YTL Corporation Bhd 4.60% 23/06/2034 (AA1) 7,700,000 7,824,286 8,108,132 1.11 YTL Power International Bhd 1826D 4.65% 24/08/2023 (AA1) 11,000,000 11,596,156 11,638,129 1.60 YTL Power International Bhd 3653D 4.99% 24/08/2028 (AA1) 11,000,000 11,794,847 12,196,390 1.67
38 PRINCIPAL LIFETIME BOND FUND
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
Nominal Aggregate Percentage Name of issuer value cost Market value of NAV RM RM RM % 31.12.2020 (CONTINUED) Audited (CONTINUED) UNQUOTED FIXED INCOME SECURITIES (CONTINUED)
TOTAL UNQUOTED FIXED INCOME SECURITIES 666,754,515 698,958,698 711,169,546 96.89
ACCUMULATED UNREALISED GAIN ON FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 12,210,848
TOTAL FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 711,169,546
# The unquoted fixed income securities which are not rated as at the end of each financial period are issued, backed or guaranteed by Government or Government agencies.
9. CASH AND CASH EQUIVALENTS
30.06.2021 31.12.2020 Audited RM RM
Deposits with licensed financial institutions 47,970,074 19,692,518 Bank balances 27,775 105,766 47,997,849 19,798,284
10. NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS
Net assets attributable to unit holders as at the reporting date comprises of:
30.06.2021 31.12.2020 Audited RM RM Unit holders’ contributions 616,373,792 685,894,245 Retained earnings 16,478,955 48,128,965 632,852,747 734,023,210
39 PRINCIPAL LIFETIME BOND FUND
10. NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS (CONTINUED)
The movement in the components of net assets attributable to unit holders for the financial period were as follows:
Unit holders’ Retained contributions earnings Total RM RM RM
Balance as at 1 January 2021 685,894,245 48,128,965 734,023,210 Movements in unit holders’ contributions: - Creation of units from applications 146,539,531 - 146,539,531 - Creation of units from distributions 24,024,867 - 24,024,867 - Cancellation of units (240,084,851) - (240,084,851) Total comprehensive loss for the financial period - (4,264,907) (4,264,907) Distributions - (27,385,103) (27,385,103) Balance at 30 June 2021 616,373,792 16,478,955 632,852,747
Balance as at 1 January 2020 427,342,456 27,158,066 454,500,522 Movements in unit holders’ contributions: - Creation of units from applications 319,743,859 - 319,743,859 - Creation of units from distributions 8,202,527 - 8,202,527 - Cancellation of units (165,926,718) - (165,926,718) Total comprehensive income for the financial period - 14,570,875 14,570,875 Distributions - (8,312,024) (8,312,024) Balance at 30 June 2020 589,362,124 33,416,917 622,779,041
11. NUMBER OF UNITS IN CIRCULATION (UNITS)
01.01.2021 01.01.2020 to 30.06.2021 to 31.12.2020 Audited No of units No. of units
At the beginning of the financial period/year 614,513,840 394,334,920 Add : Creation of units from applications 127,990,989 545,235,278 Add : Creation of units from distribution 20,838,339 7,194,568 Less : Cancellation of units (208,474,343) (332,250,926) At the end of the financial period/year 554,868,826 614,513,840
40 PRINCIPAL LIFETIME BOND FUND
12. MANAGEMENT EXPENSE RATIO (“MER”)
01.01.2021 01.01.2020 to 30.06.2021 to 30.06.2020 % %
MER 0.52 0.53
MER is derived based on the following calculation:
MER = (A + B + C + D + E) x 100 F A = Management 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 was RM641,420,406 (30.06.2020: RM553,961,045).
13. PORTFOLIO TURNOVER RATIO (“PTR”)
01.01.2021 01.01.2020 to 30.06.2021 to 30.06.2020
PTR (times) 0.24 0.55
PTR is derived from 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 = RM98,418,050 (30.06.2020: RM372,864,990) total disposal for the financial period = RM214,731,010 (30.06.2020: RM231,334,954)
41 PRINCIPAL LIFETIME BOND FUND
14. UNITS HELD BY THE MANAGER AND PARTIES RELATED TO THE MANAGER, AND SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES
Units held by the Manager and parties related to the Manager
30.06.2021 31.12.2020 Audited No. of No. of units RM units RM Manager
Principal Asset Management Berhad 241,408 244,532 40,912 48,865
In the opinion of the Manager, the above units were transacted at the prevailing market price.
The units are held beneficially by the Manager for booking purposes. Other than the above, there were no units held by the Directors or parties related to the Manager.
Related parties Relationship
Principal Asset Management Berhad The Manager
Principal Financial Group, Inc. Ultimate holding company of shareholder of the Manager
Principal International (Asia) Ltd Shareholder of the Manager
Subsidiaries and associates of Principal Fellow subsidiary and associated Financial Group Inc., other than above, as companies of the ultimate holding company disclosed in its financial statements of shareholder of the Manager
CIMB Group Holdings Bhd Ultimate holding company of shareholder of the Manager
CIMB Group Sdn Bhd Shareholder of the Manager
Subsidiaries and associates of CIMB Group Fellow subsidiary and associated Holdings Bhd, other than above, as disclosed companies of the ultimate holding company in its financial statements of the shareholder of the Manager
CIMB Bank Bhd Fellow related party to the Manager
CIMB Islamic Bank Bhd Fellow related party to the Manager
In addition to related party disclosures mentioned elsewhere in the financial statements, set out below are significant related party transactions and balances. The Manager 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.
42 PRINCIPAL LIFETIME BOND FUND
14. UNITS HELD BY THE MANAGER AND PARTIES RELATED TO THE MANAGER, AND SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED)
01.01.2021 01.01.2020 to 30.06.2021 to 30.06.2020 RM RM
Significant related party transactions Interest income from deposits with licensed financial institution: - CIMB Bank Bhd 1,593 19,088
30.06.2021 31.12.2020 Audited RM RM
Significant related party balances Bank balances: - CIMB Bank Bhd 27,775 105,766
Unquoted fixed income securities: - CIMB Thai Bank 4.15% 06/07/2029 (AA3) 1,863,096 1,883,978 - CIMB Thai Bank 5.35% 10/07/2026 (AA3) 5,129,422 5,189,155
15. TRANSACTIONS WITH DEALERS
Details of transactions with the dealers for the six months financial period ended 30 June 2021 were as follows:
Percentage Percentage of total Value of of total Brokerage brokerage Brokers/Dealers trades trades fees fees RM % RM %
RHB Investment Bank Bhd 89,324,605 28.52 - - Affin Hwang Investment Bank Bhd 46,840,250 14.96 - - RHB Bank Bhd 45,327,945 14.47 - - CIMB Bank Bhd # 39,741,010 12.69 - - Hong Leong Investment Bank Bhd 23,314,000 7.45 - - Hong Leong Bank Bhd 19,873,350 6.35 - - Citibank Bhd 18,581,350 5.93 - - CIMB Islamic Bank Bhd # 17,715,050 5.66 - - HSBC Bank Malaysia Bhd 5,319,000 1.70 - - AmBank (M) Bhd 4,128,000 1.32 - - Standard Chartered Bank Bhd 2,984,500 0.95 - - 313,149,060 100.00 - -
43 PRINCIPAL LIFETIME BOND FUND
15. TRANSACTIONS WITH DEALERS (CONTINUED)
Details of transactions with the dealers for the six months financial period ended 30 June 2020 were as follows:
Percentage Percentage of total Value of of total Brokerage brokerage Brokers/Dealers trades trades fees fees RM % RM % RHB Investment Bank Bhd 114,659,075 18.98 - - Hong Leong Investment Bank Bhd 109,101,551 18.06 - - Alliance Bank Malaysia Bhd 83,262,075 13.78 - - RHB Bank Bhd 75,296,725 12.46 - - CIMB Bank Bhd # 60,636,605 10.04 - - Affin Hwang Investment Bank Bhd 30,382,450 5.03 - - Citibank Bhd 20,718,872 3.43 - - Malayan Banking Bhd 17,881,370 2.96 - - United Overseas Bank (M) Bhd 17,203,000 2.85 - - AmBank Bhd 15,492,600 2.56 - - Others # 59,565,621 9.85 - - 604,199,944 100.00 - -
# Included in the transactions are trades conducted with CIMB Bank Bhd and CIMB Islamic Bank Bhd, fellow related parties to the Manager amounting to RM39,741,010 (30.06.2020: RM60,636,605) and RM17,715,050 (30.06.2020: RM8,719,890) respectively. The Manager 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 willcontinue to have, a significant impact on global economic conditions and the environment in which the Fund operates. The Manager 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.
44 PRINCIPAL LIFETIME BOND FUND
DIRECTORY
Head Office of the Manager 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) 7718 3000
Trustee for the Principal Lifetime Bond Fund PB Trustee Services Berhad (Company No.: 196801000374 (7968-T)) 17th Floor, Menara Public Bank, 146, Jalan Ampang, 50450 Kuala Lumpur, MALAYSIA. Tel: (03) 2162 6000 Fax: (03) 2164 3285
45 Principal Asset Management Berhad 199401018399 (304078-K)
Enquiries:
Customer Care Centre (603)7718 3000
Email [email protected]
Website www.principal.com.my