CHALLENGES IN 2021 OPPORTUNITIES IN 2021 COVID-19 Pandemic The continuing COVID-19 pandemic affected market performance and impacted the fund management industry by limiting the opportunities for physical meetings between managers and clients, and between consultants and potential clients. Removal of Tax Exemptions for Money Market Funds and for Foreign Income • Under the Finance Bill 2021, the Malaysian Government has made changes with regards to the way tax is imposed on Retail Money Market Funds (RMMF). With the exception of individuals receiving income from RMMF, unit holders will be subject to a withholding tax of 24% with effect from 1 January 2022. The change affects the entire unit trust industry. For BIMB Investment, the change will be felt, specifically, on our BIMB Dana Al-Fakhim fund. • A dditionally, the Finance Bill 2021 will also remove the current exemption on Foreign Source Income (FSI) over the course of 2022. FSI will now be taxed at 3% from 1 January 2022 and at 24% from 1 July 2022. This change will impact some of our funds invested in foreign securities. The precise impact it will have on our performance and growth remains uncertain. Growing Private Mandates BIMB Investment is focused on building-up its private mandate business to complement its strength in the retail sector, and the range and sophistication of our Shariah-ESG products makes this a natural growth area for us. In 2021, we successfully secured our first private mandate, with its first tranche of USD10 million being invested in August 2021. Moving forward, we will leverage on this strong start to pursue further expansion. Unique Value Proposition Through Strategic Partnership Our strategic partnership with Arabesque Asset Management has allowed us to develop a unique value proposition for the Shariah-ESG market, powered by AI and Machine Learning. By leveraging on Arabesque’s AutoCIO and ESG Book platforms, we will have access to ESG data on over 25,000 companies globally and be able to develop and back-test an almost unlimited number of investment strategies, with the support of advanced AI. Collaboration will be a key growth driver for BIMB Investment by putting us ahead of our peers in investment strategies creation, product development and portfolio management. Going forward, we aim to offer customised investment strategies and services to high net-worth individuals and institutions with a strong ESG appetite. Strengthened Risk Management and Compliance We continued to take steps to strengthen our risk management framework, both through enhancing BIMB Investments’ internal policies and by adopting the Group’s policies. Robust risk management framework provides a strong foundation to protect BIMB Investment’s capital base and earnings while promoting sustainable growth. BUSINESS REVIEW INTEGRATED ANNUAL REPORT 202 1 Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information 101
RkJQdWJsaXNoZXIy NDgzMzc=