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TRANSCRIPT
Annual Report for
31 May 2017
AmGlobal Agribusiness
AmGlobal Agribusiness
TRUST DIRECTORY
Manager
AmFunds Management Berhad
9th
&10th
Floor, Bangunan AmBank Group
55 Jalan Raja Chulan
50200 Kuala Lumpur
Board of Directors
Raja Teh Maimunah Raja Abdul Aziz
Mustafa Mohd Nor
Tai Terk Lin
Sum Leng Kuang
Goh Wee Peng
Investment Committee
Sum Leng Kuang
Tai Terk Lin
Mustafa Mohd Nor
Zainal Abidin Mohd Kassim
Trustee
HSBC (Malaysia) Trustee Berhad
Auditors and Reporting Accountants
Ernst & Young
Taxation Adviser
Deloitte Tax Services Sdn Bhd
AmGlobal Agribusiness
CONTENTS
1 Manager‟s Report
7 Independent Auditor‟s Report to the Unitholders
10 Statement of Financial Position
11 Statement of Comprehensive Income
12 Statement of Changes in Equity
13 Statement of Cash Flows
14 Notes to the Financial Statements
31 Statement by the Manager
32 Trustee‟s Report
33 Directory
1
MANAGER’S REPORT
Dear Unitholders,
We are pleased to present you the Manager‟s report and the audited accounts of AmGlobal
Agribusiness (“Fund”) for the financial year ended 31 May 2017.
Salient Information of the Fund
Name AmGlobal Agribusiness (“Fund”)
Category
Type
Feeder (Global equity) / Capital growth
Name of
Target Fund
DWS Global Agribusiness
Fund
Objective
AmGlobal Agribusiness aims to gain the greatest possible return on investments by
investing in global agribusiness equities from agricultural commodities to consumer
products.
Duration The Fund was established on 3 May 2007 and shall exist for as long as it appears to
the Manager and the Trustee that it is in the interests of the unitholders for it to
continue. In some circumstances, the unitholders can resolve at a meeting to
terminate the Fund.
Performance
Benchmark
The MSCI World is only used as a reference benchmark as the Fund is benchmark
independent.
(obtainable from: www.aminvest.com)
Income
Distribution
Policy
Income distribution (if any) is incidental
Breakdown of
Unit Holdings
by Size
For the financial year under review, the size of the Fund stood at 15,597,645 units.
Size of holding As at 31 May 2017 As at 31 May 2016
No of units
held
Number of
unitholders
No of units
held
Number of
unitholders
5,000 below 472,133 187 580,288 220
5,001-10,000 540,473 73 763,505 102
10,001-50,000 1,799,267 82 2,421,202 106
50,001-500,000 1,752,111 14 2,140,526 16
500,001 above 11,033,661 6 15,302,805 6
2
Fund Performance Data
Portfolio
Composition
Details of portfolio composition of the Fund for the financial years as at 31 May are
as follows:
FY
2017
%
FY
2016
%
FY
2015
%
Foreign collective investment scheme 97.90 98.12 97.01
Cash and others 2.10 1.88 2.99
Total 100.00 100.00 100.00
Note:
The abovementioned percentages are calculated based on total net asset value.
Performance
Details
Performance details of the Fund for the financial years ended 31 May are as follows:
FY
2017
FY
2016
FY
2015
Net asset value (RM)* 17,690,191 21,503,014 30,928,178
Units in circulation* 15,597,645 21,208,326 27,165,601
Net asset value per unit (RM)* 1.1342 1.0139 1.1385
Highest net asset value per unit (RM)* 1.1619 1.1882 1.1476
Lowest net asset value per unit (RM)* 0.9688 0.9003 0.9523
Benchmark performance % 20.25 4.21 17.11
Total return (%)(1)
11.87 -10.94 9.31
- Capital growth (%) 11.87 -10.94 9.31
- Income distribution (%) - - -
Gross distribution (sen per unit) - - -
Net distribution (sen per unit) - - -
Management expense ratio (%)(2)
1.28 1.32 1.23
Portfolio turnover ratio (times)(3)
0.16 0.12 0.27
* Above prices and net asset value per unit are not shown as ex-distribution.
Note:
(1) Total return is the actual return of the Fund for the respective financial years
computed based on the net asset value per unit and net of all fees.
(2) Management expense ratio (“MER”) is calculated based on the total fees and
expenses incurred by the Fund divided by the average fund size calculated on a
daily basis. The MER decreased by 0.04% as compared to 1.32% per annum for
the financial year ended 31 May 2016 mainly due to decrease in expenses.
(3) Portfolio turnover ratio (“PTR”) is calculated based on the average of the total
acquisitions and total disposals of investment securities of the Fund divided by
the average fund size calculated on a daily basis. The PTR increased by 0.04
times (33.3%) as compared to 0.12 times for the financial year ended 31 May
2016 mainly due to decrease in average fund size.
3
Average Total Return (as at 31 May 2017)
AmGlobal
Agribusiness(a)
%
MSCI
World(b)
%
One year 11.87 20.25
Three years 2.88 13.63
Five years 6.37 16.02
Ten years 1.64 3.84
Annual Total Return
Financial Years Ended
(31 May)
AmGlobal
Agribusiness(a)
%
MSCI
World(b)
%
2017 11.87 20.25
2016 -10.94 4.21
2015 9.31 17.11
2014 6.86 19.35
2013 16.98 20.15
(a) Source: Novagni Analytics and Advisory Sdn Bhd.
(b) Morgan Stanley Capital International (MSCI) World
(obtainable from: www.aminvest.com).
- The benchmark, MSCI World, is only used as a reference benchmark as the
Fund is benchmark independent.
The Fund performance is calculated based on the net asset value per unit of the
Fund. Average total return of the Fund and its benchmark for a period is computed
based on the absolute return for that period annualised over one year.
Note: Past performance is not necessarily indicative of future performance and
that unit prices and investment returns may go down, as well as up.
Fund
Performance
For the financial year under review, the Fund registered a return of 11.87% which
was entirely capital growth in nature.
Thus, the Fund‟s return of 11.87% has underperformed the benchmark‟s return of
20.25% by 8.38%.
As compared with the financial year ended 31 May 2016, the net asset value
(“NAV”) per unit of the Fund increased by 11.87% from RM1.0139 to RM1.1342,
while units in circulations decreased by 26.46% from 21,208,326 units to
15,597,645 units.
The line chart below shows comparison between the annual performances of
AmGlobal Agribusiness and its benchmark, MSCI World, for the financial years
ended 31 May.
4
Note: Past performance is not necessarily indicative of future performance and
that unit prices and investment returns may go down, as well as up.
Target Fund
Performance
Fund Performance Review of the Target Fund – DWS Global Agribusiness (the
“Target Fund”)
Fund Currency YTD 1Y 3Y 5Y
DWS Global
Agribusiness
USD 6.86 8.91 -17.29 3.39
Source: Deutsche Asset Management (Asia) Limited (the Manager of Target Fund)
Has the Fund
achieved its
objective?
For the year under review, the Fund is in line with its stated objective to gain the
greatest possible return on investments by investing in global agribusiness equities
from agricultural commodities to consumer products.
Strategies and
Policies
Employed
Strategies and Policies of the Target Fund
The Target Fund invests primarily in equities of companies, which having their
principal business activity in or profiting from the agricultural industry. The relevant
companies operate within the multi-layered food value chain. This includes
companies involved in the cultivation, harvesting, planning, production, processing,
service and distribution of agricultural products (e.g. forestry and agriculture
companies, tool and agricultural machinery manufacturers, companies in the food
industry such as grains, vegetables or fruits, meat producers (chicken, pork or beef)
and processors, restaurants, supermarkets and chemical companies).
Please be aware that the portfolio management responsibilities changed in 15th
September 2016 from Global Thematic Partners, New York back to Deutsche Asset
Management, Frankfurt. During this transition the portfolio has been restructured.
The Portfolio Management Team has considerably reduced exposure to relatively
illiquid small and mid-caps, particularly within Emerging Markets to bring down
overall volatility and to improve the liquidity situation of the Target Fund.
5
Moreover, strong single company weightings have been reduced (from 10% down to
6%) in favor of a broader and stable portfolio. Sector wise, weightings to fertilizers
have been reduced due to the oversupplied market environment and continuing fall
of nutrient prices. On the other side, multinational consumer staple companies with
pricing power for their products have been bought into the portfolio. Also new
subsectors e.g. grain transportation and storage, restaurants, tobacco, salmon
farming and food delivery have been added to the portfolio.
Source: Deutsche Asset Management S.A. (the Target Fund's manager)
Strategies and Policies of the Fund
For the financial year under review, a minimum of 95% of its NAV was invested in
the Target Fund.
Portfolio
Structure
This table below is the asset allocation of the Fund for the financial years under
review.
As at
31-5-2017
%
As at
31-5-2016
%
Changes
%
Foreign collective investment scheme 97.90 98.12 -0.22
Cash and others 2.10 1.88 0.22
Total 100.00 100.00
For the financial year under review, the Fund has invested 97.90% of its NAV in the
foreign collective investment scheme and the balance of 2.10% in cash and other net
current assets. There have been no significant changes to the asset allocation since
the last reporting.
Distribution/
unit splits
There was no income distribution and unit split declared for the financial year under
review.
State of
Affairs
There has been neither significant change to the state of affairs of the Fund nor any
circumstances that materially affect any interests of the unitholders during the
financial year under review.
Rebates
and Soft
Commission
It is our policy to pay all rebates to the Fund. Soft commission received from
brokers/dealers is retained by the Manager only if the goods and services provided
are of demonstrable benefit to unitholders of the Fund.
During the financial year under review, the Manager had received on behalf of the
Fund, soft commissions in the form of fundamental database, financial wire
services, technical analysis software and stock quotation system incidental to
investment management of the Fund. These soft commissions received by the
Manager are deem to be beneficial to the unitholders of the Fund.
Market
Review
2016 has been another year with very good global harvests, e.g. in the US, the most
important grain market globally, we have seen record level of corn yields (175.3
acre/bushels), therefore grain prices were weaker from May 2016 to May 2017 (corn
-8.09%, wheat -7.59 and soybeans -15.07%). As a consequence net farm income has
fallen again, which makes 2016/17 the 4th year in a row with less cash for the
average farmer.
6
Also, 2016/17 has been a year of important political topics and maybe the most
controversial one is on Trump. Although the general equity markets have positively
reacted after the US election via pricing-in a repatriation of profits, lower corporate
tax rates and a huge infrastructure spending program for the USA, we need to keep
in mind Trumps rhetoric on potential trade restrictions. His „America first‟ approach
and his constant tweeting via Twitter does not bode well for global trade, which is
inherently not promising for global growth in general. The US is the largest grain
exporter globally and the strength in the USD over the last quarters and potential
trade wars looming are certainly not helpful for US grain exports. Therefore while
the overall market is currently playing a reflation trend, this actually might be very
deflationary for Agriculture as a whole.
Another big topic will be the answers from regulators on the large upcoming
Mergers and Acquisitions (“M&A”) wave within Ag Chemicals, which has been
announced during 2016. While we think that there is a fair chance that most of the
proposed deals will be approved, it is in some cases far from being certain, because
of increasing market power of producers.
Source: Deutsche Asset Management S.A. (the Target Fund's manager)
Market
Outlook
Overall the agriculture sector is currently undecided if we will see economic growth
and an increasing inflationary environment or keep the rather deflationary trends
that we have had over the last couple of years. Therefore we continue to believe that
a balanced approach between upstream and downstream companies is appropriate
for the time being.
Nevertheless, we believe that the current market environment provide an attractive
long-term opportunity to invest in the global Agribusiness-value chain.
According to the Food and Agriculture Organization (“FAO”), global trade in food
has grown almost threefold in value over the past decade, and rates of growth are
projected to continue to rise, with some regions becoming increasing net exporters
and others increasing net importers. By 2050 the world‟s population may reach 9.7
billion, urbanization will likely have accelerated dramatically, and these consumers
will demand higher caloric foods. To match this demand, significant investments
still need to be made. The decline in nutrient pricing over the last couple of years
has now more than offset the lower commodity prices and farm input affordability is
above historical averages by now.
Moreover, the current earning season showed us a stable to improving situation
within Seeds & Crop Protection and Agricultural Machinery, whereas the Fertilizer
space still suffers from oversupply and hence weaker pricing. We continue to think
that without an improving grain price environment (e.g. corn price above $4USD
per bushel), the upstream names will have a tough time and continuing
underperforming the overall global equity market.
Source: Deutsche Asset Management S.A. (the Target Fund's manager)
Kuala Lumpur, Malaysia
AmFunds Management Berhad
7 July 2017
Independent auditors’ report to the unitholders of
AmGlobal Agribusiness
Report on the audit of the financial statements
Opinion
Basis for opinion
Independence and other ethical responsibilities
Information other than the financial statements and auditors’ report thereon
We have audited the financial statements of AmGlobal Agribusiness (“the Fund”), which comprise
the statement of financial position as at 31 May 2017, and the statement of comprehensive income,
statement of changes in equity and statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies, as set out on pages 10
to 30.
In our opinion, the accompanying financial statements give a true and fair view of the financial
position of the Fund as at 31 May 2017, and of its financial performance and its cash flows for the
year then ended in accordance with Malaysian Financial Reporting Standards and International
Financial Reporting Standards.
We conducted our audit in accordance with approved standards on auditing in Malaysia and
International Standards on Auditing. Our responsibilities under those standards are further described
in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
We are independent of the Fund in accordance with the By-Laws (on Professional Ethics, Conduct
and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics
Standards Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”),
and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the
IESBA Code.
The Manager is responsible for the other information. The other information comprises information
in the Annual Report, but does not include the financial statements of the Fund and our auditors’
report thereon.
Our opinion on the financial statements of the Fund does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Fund, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements of the Fund or our knowledge obtained in the audit or otherwise
appears to be materially misstated.
7
Independent auditors’ report to the unitholders of
AmGlobal Agribusiness (cont’d.)
Responsibilities of the Manager and the Trustees for the financial statements
Auditor’s responsibilities for the audit of the financial statements
If based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
The Manager is responsible for the preparation of the financial statements of the Fund that give a
true and fair view in accordance with Malaysian Financial Reporting Standards and International
Financial Reporting Standards. The Manager is also responsible for such internal control as the
Manager determines is necessary to enable the preparation of financial statements of the Fund that
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements of the Fund, the Manager is responsible for assessing the
Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Manager either intends to
liquidate the Fund or to cease operations, or has no realistic alternative to do so.
The Trustee is responsible for ensuring that the Manager maintains proper accounting and other
records as are necessary to enable true and fair presentation of these financial statements.
Our objectives are to obtain reasonable assurance about whether the financial statements of the Fund,
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance approved standards on auditing in Malaysia
and International Standards on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with the approved standards on auditing in Malaysia and
International Standards on Auditing, we exercise professional judgment and maintain professional
skepticism throughout the planning and performance of the audit. We also:
Identify and assess the risks of material misstatement of the financial statements of the Fund,
whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund’s internal control.
8
Independent auditors’ report to the unitholders of
AmGlobal Agribusiness (cont’d.)
Other matters
Ernst & Young Wan Daneena Liza Bt Wan Abdul Rahman
AF: 0039 No. 2978/03/18(J)
Chartered Accountants Chartered Accountant
Kuala Lumpur, Malaysia
7 July 2017
This report is made solely to the unitholders of the Fund, as a body, and for no other purpose. We do
not assume responsibility to any other person for the content of this report.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Manager.
Conclude on the appropriateness of the Manager’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Fund’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditors’ report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditors’ report. However, future events or
conditions may cause the Fund to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements of the
Fund, including the disclosures, and whether the financial statements of the Fund represent
the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the Manager regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
9
AmGlobal Agribusiness
STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2017
2017 2016
Note RM RM
ASSETS
Investment 4 17,318,109 21,098,731
Deposits with financial institutions 5 437,141 498,046
Cash at banks 2,990 3,036
TOTAL ASSETS 17,758,240 21,599,813
LIABILITIES
Amount due to Manager 6 46,760 72,384
Amount due to Trustee 7 1,288 1,474
Sundry payables and accrued expenses 20,001 22,941
TOTAL LIABILITIES 68,049 96,799
EQUITY
Unitholders’ capital 10(a) 43,726,747 49,835,432
Accumulated losses 10(b)(c) (26,036,556) (28,332,418)
TOTAL EQUITY 10 17,690,191 21,503,014
TOTAL EQUITY AND LIABILITIES 17,758,240 21,599,813
UNITS IN CIRCULATION 10(a) 15,597,645 21,208,326
NET ASSET VALUE PER UNIT 113.42 101.39 sen
The accompanying notes form an integral part of the financial statements.
10
AmGlobal Agribusiness
STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 MAY 2017
2017 2016Note RM RM
INVESTMENT INCOME/(LOSS)
Interest income 16,262 30,630
Net gain/(loss) from investment:
− Financial assets at fair value through profit or
loss (“FVTPL”) 8 2,534,746 (2,707,674)
Gross Income/(Loss) 2,551,008 (2,677,044)
EXPENDITURE
Manager’s fee 6 (212,436) (276,997)
Trustee’s fee 7 (15,884) (20,582)
Auditors’ remuneration − current financial year (7,000) (7,000)
Auditors’ remuneration − over provision in prior
financial year 700 -
Tax agent’s fee − current financial year (3,500) (3,500)
Tax agent’s fee − over provision in prior financial year 1,000 -
Other expenses 9 (18,026) (27,971)
Total Expenditure (255,146) (336,050)
NET INCOME/(LOSS) BEFORE TAX 2,295,862 (3,013,094)
LESS: INCOME TAX 12 - -
NET INCOME/(LOSS) AFTER TAX 2,295,862 (3,013,094)
OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE
FINANCIAL YEAR 2,295,862 (3,013,094)
Total comprehensive income/(loss) comprises the following:
Realised income 821,879 729,872
Unrealised gain/(loss) 1,473,983 (3,742,966)
2,295,862 (3,013,094)
The accompanying notes form an integral part of the financial statements.
11
AmGlobal Agribusiness
STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 MAY 2017
Unitholders’ Accumulated Total
capital losses equity
Note RM RM RM
At 1 June 2015 56,247,502 (25,319,324) 30,928,178
Total comprehensive loss for the
financial year - (3,013,094) (3,013,094)Creation of units 10(a) 35,241,719 - 35,241,719
Cancellation of units 10(a) (41,653,789) - (41,653,789)
Balance at 31 May 2016 49,835,432 (28,332,418) 21,503,014
At 1 June 2016 49,835,432 (28,332,418) 21,503,014
Total comprehensive income for the
financial year - 2,295,862 2,295,862
Creation of units 10(a) 3,970,177 - 3,970,177
Cancellation of units 10(a) (10,078,862) - (10,078,862)
Balance at 31 May 2017 43,726,747 (26,036,556) 17,690,191
The accompanying notes form an integral part of the financial statements.
12
AmGlobal Agribusiness
STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 MAY 2017
2017 2016
Note RM RM
CASH FLOWS FROM OPERATING AND
INVESTING ACTIVITIES
Proceeds from sale of investment 6,315,368 6,661,135
Interest received 16,262 30,630
Manager’s fee paid (213,952) (283,698)
Trustee’s fee paid (16,070) (21,092)
Tax agent’s fee paid (3,500) (3,500)
Payments for other expenses (26,266) (31,995)
Net cash generated from operating and investing activities 6,071,842 6,351,480
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from creation of units 3,970,177 35,241,719
Payments for cancellation of units (10,102,970) (41,646,504)
Net cash used in financing activities (6,132,793) (6,404,785)
NET DECREASE IN CASH AND CASH EQUIVALENTS (60,951) (53,305)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF FINANCIAL YEAR 501,082 554,387
CASH AND CASH EQUIVALENTS AT
END OF FINANCIAL YEAR 440,131 501,082
Cash and cash equivalents comprise:
Deposits with financial institutions 5 437,141 498,046
Cash at banks 2,990 3,036
440,131 501,082
The accompanying notes form an integral part of the financial statements.
13
AmGlobal Agribusiness
NOTES TO THE FINANCIAL STATEMENTS
1. GENERAL INFORMATION
2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Standards effective during the financial year
Standards issued but not yet effective
Effective for
financial periods
beginning on or after
MFRS 9: Financial Instruments
MFRS 15: Revenue From Contracts With Customers
AmGlobal Agribusiness (“the Fund”) was established pursuant to a Deed dated 2 April 2007 as
amended by Deeds Supplemental thereto (“the Deed”), between AmFunds Management Berhad
as the Manager, HSBC (Malaysia) Trustee Berhad as the Trustee and all unitholders.
1 January 2018
1 January 2018
The Fund plans to adopt the above pronouncements when they become effective in the respective
financial periods. These pronouncements are expected to have no significant impact to the
financial statements of the Fund upon their initial application except as described below:
The Fund was set up with the objective of gaining the greatest possible return on investments by
investing in the Luxembourg-based DWS Global Agribusiness (“Target Fund”) which invests
primarily in global agribusiness equities from agricultural commodities to consumer products.
Being a feeder fund, a minimum of 95% of the Fund’s net asset value will be invested in the
Target Fund, which is a separate unit trust fund managed by Deutsche Asset Management S.A.,
Luxermbourg (“Target Fund Manager”). As provided in the Deed, the “accrual period” or the
financial year shall end on 31 May and the units in the Fund were first offered for sale on 3 May
As at the date of authorisation of these financial statements, the following Standards, which are
relevant to the Fund, have been issued by MASB but are not yet effective and have not been
adopted by the Fund.
The financial statements of the Fund have been prepared in accordance with Malaysian Financial
Reporting Standards (“MFRS”) as issued by the Malaysian Accounting Standards Board
(“MASB”) and are in compliance with International Financial Reporting Standards.
The financial statements of the Fund have been prepared under the historical cost convention,
unless otherwise stated in the accounting policies.
The adoption of MFRS which have been effective during the financial year did not have any
material financial impact to the financial statements.
14
MFRS 9 Financial Instruments
3. SIGNIFICANT ACCOUNTING POLICIES
Income recognition
Income tax
Functional and presentation currency
Foreign currency conversion
Statement of cash flows
Income is recognised to the extent that it is probable that the economic benefits will flow to the
Fund and the income can be reliably measured. Income is measured at the fair value of
consideration received or receivable.
Distribution income is recognised when the Fund’s right to receive payment is established.
Interest income on short-term deposits is recognised on an accrual basis using the effective
interest method.
Current tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the tax authorities. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted at the reporting date.
Current taxes are recognised in profit or loss except to the extent that the tax relates to items
recognised outside profit or loss, either in other comprehensive income or directly in equity.
Transactions in currencies other than the Fund’s functional currency (foreign currencies) are
recorded in the functional currency using exchange rates prevailing at the transaction dates. At
each reporting date, foreign currency monetary items are translated into Ringgit Malaysia at
exchange rates ruling at the reporting date. All exchange gains or losses are recognised in profit or
loss.
The Fund adopts the direct method in the preparation of the statement of cash flows.
Cash equivalents are short-term, highly liquid investment that is readily convertible to cash with
insignificant risk of changes in value.
MFRS 9 reflects International Accounting Standards Board’s (“IASB”) work on the replacement
of MFRS 139 Financial Instruments: Recognition and Measurement (“MFRS 139”). MFRS 9 will
be effective for financial year beginning on or after 1 January 2018. The Fund is in the process of
quantifying the impact of the first adoption of MFRS 9.
Functional currency is the currency of the primary economic environment in which the Fund
operates that most faithfully represents the economic effects of the underlying transactions. The
functional currency of the Fund is Ringgit Malaysia which reflects the currency in which the Fund
competes for funds, issues and redeems units. The Fund has also adopted Ringgit Malaysia as its
presentation currency.
15
Distribution
Unitholders’ capital
Financial assets
(i) Financial assets at FVTPL
(ii) Loans and receivables
Financial assets 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.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of
financial assets not at fair value through profit or loss, directly attributable transaction costs.
The Fund determines the classification of its financial assets at initial recognition, and the
categories applicable to the Fund include financial assets at fair value through profit or loss
(“FVTPL”) and loans and receivables.
The unitholders’ capital of the Fund meets the definition of puttable instruments and is classified
as equity instruments under MFRS 132 Financial Instruments: Presentation (“MFRS 132”).
Distributions are at the discretion of the Fund. A distribution to the Fund’s unitholders is
accounted for as a deduction from realised reserves. A proposed distribution is recognised as a
liability in the period in which it is approved.
On disposal of investment, the net realised gain or loss on disposal is measured as the
difference between the net disposal proceeds and the carrying amount of the investment. The
net realised gain or loss is recognised in profit or loss.
Subsequent to initial recognition, financial assets at FVTPL are measured at fair value.
Changes in the fair value of those financial instruments are recorded in ‘Net gain or loss on
financial assets at fair value through profit or loss’. Interest earned element of such instrument
is recorded separately in ‘Interest income’. Exchange differences, if any, on financial assets at
FVTPL are not recognised separately in profit or loss but are included in net gains or net
losses on changes in fair value of financial assets at FVTPL.
Financial assets are classified as financial assets at FVTPL if they are held for trading or are
designated as such upon initial recognition. Financial assets held for trading by the Fund
include foreign collective investment scheme acquired principally for the purpose of selling in
the near term.
Financial assets with fixed or determinable payments that are not quoted in an active market
are classified as loans and receivables.
For investment in foreign collective investment scheme, fair value is determined based on the
closing net asset value per unit of the foreign collective investment scheme. The difference
between the cost and fair value is treated as unrealised gain or loss and is recognised in profit
or loss. Unrealised gains or losses recognised in profit or loss are not distributable in nature.
16
Impairment of financial assets
(i) Loans and receivables carried at amortised cost
Financial liabilities
A financial liability is derecognised when the obligation under the liability is extinguished. Gains
and losses are recognised in profit or loss when the liabilities are derecognised, and through the
amortisation process.
If any such evidence exists, the amount of impairment loss is measured as the difference
between the asset’s carrying amount and the present value of estimated future cash flows
discounted at the financial asset’s original effective interest rate. The impairment loss is
recognised in profit or loss.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can
be related objectively to an event occurring after the impairment was recognised, the
previously recognised impairment loss is reversed to the extent that the carrying amount of
the asset does not exceed its amortised cost at the reversal date. The amount of reversal is
recognised in profit or loss.
The Fund’s financial liabilities are recognised initially at fair value plus directly attributable
transaction costs and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are classified according to the substance of the contractual arrangements
entered into and the definitions of a financial liability.
Financial liabilities, within the scope of MFRS 139, 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.
Subsequent to initial recognition, loans and receivables are measured at amortised cost using
the effective interest method. Gains and losses are recognised in profit or loss when the loans
and receivables are derecognised or impaired, and through the amortisation process.
The Fund assesses at each reporting date whether there is any objective evidence that a financial
asset is impaired.
To determine whether there is objective evidence that an impairment loss on financial assets
has been incurred, the Fund considers factors such as the probability of insolvency or
significant financial difficulties of the debtor and default or significant delay in payments.
The carrying amount of the financial asset is reduced through the use of an allowance
account. When loans and receivables become uncollectible, they are written off against the
allowance account.
17
Classification of realised and unrealised gains and losses
Significant accounting estimates and judgments
4. INVESTMENT
2017 2016
RM RM
Financial assets at FVTPL
At cost:
Foreign collective investment scheme 13,604,675 18,859,280
At fair value:
Foreign collective investment scheme 17,318,109 21,098,731
Details of investment as at 31 May 2017 are as follows:
Fair
value as a
percentage of
Foreign collective Number Fair Purchase net asset
investment scheme of units value cost value
RM RM %
DWS Global Agribusiness
(“Target Fund”) 28,998 17,318,109 13,604,675 97.90
Excess of fair value over cost 3,713,434
Realised gains and losses on disposals of financial instruments classified at fair value through
profit or loss are calculated using the weighted average method. They represent the difference
between an instrument’s initial carrying amount and disposal amount.
The Fund classifies its investment as financial assets at FVTPL as the Fund may sell its
investment in the short-term for profit-taking or to meet unitholders’ cancellation of units.
No major judgments have been made by the Manager in applying the Fund’s accounting policies.
There are no key assumptions concerning the future and other key sources of estimation
uncertainty at the reporting date, that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next financial year.
The preparation of the Fund’s financial statements requires the Manager to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities, and the disclosure of contingent liabilities at the reporting date. However, uncertainty
about these assumptions and estimates could result in outcomes that could require a material
adjustment to the carrying amount of the asset or liability in the future.
Unrealised gains and losses comprise changes in the fair value of financial instruments for the
period and from reversal of prior period’s unrealised gains and losses for financial instruments
which were realised (i.e. sold, redeemed or matured) during the reporting period.
18
2017 2016
By country % of portfolio % of portfolio
United States of America 39.1 41.7
Canada 12.2 15.3
France 7.1 4.4
Netherlands 6.8 - Germany 6.6 8.7
Brazil 5.7 8.0
Japan 4.5 - Great Britain 3.9 - Norway 3.4 - Cayman Island 1.8 - Korea 1.7 - Australia - 5.6
Switzerland - 2.2
Hong Kong - 1.6
South Africa - 1.5
Uruguay - 1.5
Thailand - 1.4
Other countries 7.2 8.1
100.0 100.0
By sector
Fertilizers and agricultural chemicals 27.0 36.6
Packaged foods and meat 17.6 18.7
Agricultural products 14.8 25.9
Tobacco 6.5 - Diversified chemicals 5.3 1.5
Specialty chemicals 5.2 - Food retail 4.8 1.2
Agricultural and farm machinery 3.7
Personal products 3.7 - Breweries 2.3 2.8
Food distributors - 4.8
Marine ports and services - 1.6
Restaurants - 1.4
Soft drinks - 1.2
Other sectors 5.9 2.7
Others 3.2 1.6
100.0 100.0
A minimum of 95% of its net asset value will be invested in the Target Fund. However, the asset
allocation may be reduced due to creation of units at the point of reporting date. The ratio will be
adjusted back to the minimum level after the reporting period, if need be.
The Target Fund’s investment objective and policy are to gain the greatest possible return on
investments by investing at least 70% in global agribusiness equities from agricultural
commodities to consumer products with a maximum of 30% in other global equities. As at the
reporting date, the investment portfolio of the Target Fund is made up of the following:
19
5. DEPOSITS WITH FINANCIAL INSTITUTIONS
2017 2016
RM RM
At nominal value:
Short-term deposits with licensed banks 437,100 498,000
At carrying value:
Short-term deposits with licensed banks 437,141 498,046
Details of deposit with financial institution as at 31 May 2017 are as follows:
Carrying
value as a
percentage of
Maturity Nominal Carrying Purchase net asset
date Bank value value cost value
RM RM RM %
Short-term deposit with a licensed bank
Public Bank
Berhad 437,100 437,141 437,100 2.47
Weighted average effective Remaining
interest rate maturity2017 2016 2017 2016
% % Day Day
Short-term deposits with
licensed banks 3.45 3.35 1 1
6. AMOUNT DUE TO MANAGER
2017 2016
RM RM
Redemption of units* (28,487) (52,595)
Manager’s fee payable (18,273) (19,789)
(46,760) (72,384)
* The amount represents amount payable to the Manager for units redeemed.
The weighted average effective interest rate and average remaining maturity of short-term
deposits are as follows:
01.06.2017
20
As the Fund is investing in a Target Fund, the Manager’s fee was charged as follows:
2017 2016
% p.a. % p.a.
0.75 0.75
1.05 1.05
1.80 1.80
Note a)
Note b)
7. AMOUNT DUE TO TRUSTEE
8. NET GAIN/(LOSS) FROM INVESTMENT
2017 2016
RM RM
Net gain/(loss) on financial assets at FVTPL comprised:
− Net realised loss on sale of investment (298,450) (53,474)
− Net realised gain on foreign currency exchange 1,359,213 1,088,766
− Net unrealised loss on changes in fair value of investment (2,008,338) (5,321,720)
− Net unrealised gain on foreign currency fluctuation of
investment denominated in foreign currency 3,482,321 1,578,754
2,534,746 (2,707,674)
The Fund’s share of Manager’s fee to the Target Fund Manager has been accounted for as
part of net unrealised changes in fair value of investment in foreign collective investment
scheme.
The normal credit period in the previous and current financial years for Trustee’s fee payable is
one month.
Deutsche Asset Management S.A., Luxembourg, on the net
asset value of the Target Fund (Note a)
Manager’s fee charged by the Manager, AmFunds Management
Manager’s fee charged by the Target Fund Manager,
Berhad, on the net asset value of investment in the Target Fund
(Note b)
Manager’s fee charged by the Manager, AmFunds Management
Trustee’s fee is at a rate of 0.08% (2016: 0.08%) per annum on the net asset value of the Fund,
calculated on a daily basis.
The normal credit period in the previous and current financial years for creation and redemption
of units is three business days.
The normal credit period in the previous and current financial years for Manager’s fee payable is
one month.
Berhad, on the remaining net asset value of the Fund (Note b)
Manager’s fee of the Fund chargeable in the Statement of Comprehensive Income relates
to 1.05% on the net asset value of investment in the Target Fund and 1.80% on the
remaining net asset value of the Fund.
21
9. OTHER EXPENSES
10. TOTAL EQUITY
Total equity is represented by:
2017 2016Note RM RM
Unitholders’ capital (a) 43,726,747 49,835,432
Accumulated losses
– Realised losses (b) (29,749,990) (30,571,869)
– Unrealised gain (c) 3,713,434 2,239,451
17,690,191 21,503,014
(a) UNITHOLDERS’ CAPITAL/UNITS IN CIRCULATION
2016
Number of Number of
units RM units RM
At beginning of the
financial year 21,208,326 49,835,432 27,165,601 56,247,502
Creation during the
financial year 3,867,267 3,970,177 31,395,610 35,241,719
Cancellation during the
financial year (9,477,948) (10,078,862) (37,352,885) (41,653,789)
At end of the financial year 15,597,645 43,726,747 21,208,326 49,835,432
(b) REALISED – DISTRIBUTABLE
2017 2016
RM RM
At beginning of the financial year (30,571,869) (31,301,741)
Total comprehensive income/(loss) for the financial year 2,295,862 (3,013,094)Net unrealised (gain)/loss attributable to investment held
transferred to unrealised reserve [Note 10(c)] (1,473,983) 3,742,966
Net increase in realised reserve for the
financial year 821,879 729,872
At end of the financial year (29,749,990) (30,571,869)
2017
Included in other expenses is Goods and Services Tax incurred by the Fund during the financial
year amounting to RM15,192 (2016: RM18,770).
22
(c) UNREALISED – NON-DISTRIBUTABLE
2017 2016
RM RM
At beginning of the financial year 2,239,451 5,982,417Net unrealised gain/(loss) attributable to investment held
transferred to unrealised reserve [Note 10(b)] 1,473,983 (3,742,966)
At end of the financial year 3,713,434 2,239,451
11. UNITS HELD BY RELATED PARTIES
12. INCOME TAX
2017 2016
RM RM
Net income/(loss) before tax 2,295,862 (3,013,094)
Taxation at Malaysian statutory rate of 24% 551,007 (723,100)
Tax effects of:
Income not subject to tax (1,165,871) (647,600)
Loss not deductible for tax purposes 553,629 1,290,000
Restriction on tax deductible expenses for unit trust fund 47,662 63,100
Non-permitted expenses for tax purposes 8,277 10,600
Permitted expenses not used and not available for future
5,296 7,000
Tax expense for the financial year - -
13. DISTRIBUTION
No distribution was declared by the Fund for the financial years ended 31 May 2017 and 31 May
2016.
financial years
Pursuant to Schedule 6 of the Income Tax Act, 1967, local interest income derived by the Fund is
exempted from tax.
A reconciliation of income tax expense applicable to net income/(loss) before tax at the statutory
income tax rate to income tax expense at the effective income tax rate of the Fund is as follows:
Income tax payable is calculated on investment income less deduction for permitted expenses as
provided for under Section 63B of the Income Tax Act, 1967.
The Manager and parties related to the Manager did not hold any units in the Fund as at 31 May
2017 and 31 May 2016.
23
14. MANAGEMENT EXPENSE RATIO (“MER”)
2017 2016
% p.a. % p.a.
Manager’s fee 1.07 1.09
Trustee’s fee 0.08 0.08
Fund’s other expenses 0.13 0.15
Total MER 1.28 1.32
15. PORTFOLIO TURNOVER RATIO (“PTR”)
16. SEGMENTAL REPORTING
17. TRANSACTIONS WITH THE TARGET FUND MANAGER
Target Fund Manager
RM %
Deutsche Asset Management S.A., Luxermbourg 6,322,024 100.00
As stated in Note 1, the Fund is a feeder fund whereby a minimum of 95% of the Fund’s net asset
value will be invested in the Target Fund.
The PTR of the Fund, which is the ratio of average total acquisitions and disposals of investment
to the average net asset value of the Fund calculated on a daily basis, is 0.16 times (2016: 0.12
times).
The MER of the Fund is the ratio of the sum of annualised fees and expenses incurred by the
Fund to the average net asset value of the Fund calculated on a daily basis.
The Fund’s MER is as follows:
The above transactions was in respect of collective investment scheme. Transactions in this
investment do not involve any commission or brokerage.
As the Fund operates substantially as a feeder fund which invests primarily in the Target Fund, it
is not possible or meaningful to classify its investment by separate business or geographical
segments. A summary of the investment portfolio of the Target Fund is disclosed in Note 4.
Details of transactions with the Target Fund Manager for the financial year ended 31 May 2017
are as follows:
Transaction value
There was no transaction with financial institutions related to the Manager, during the financial
year.
24
18. FINANCIAL INSTRUMENTS
(a) Classification of financial instruments
Loans and Financial
receivables liabilities at
Financial at amortised amortised
assets cost cost Total
RM RM RM RM
Assets
Investment 17,318,109 - - 17,318,109
Deposit with financial institution - 437,141 - 437,141
Cash at banks - 2,990 - 2,990
Total financial assets 17,318,109 440,131 - 17,758,240
Liabilities
Amount due to Manager - - 46,760 46,760
Amount due to Trustee - - 1,288 1,288
Sundry payables and accrued
expenses - - 20,001 20,001
Total financial liabilities - - 68,049 68,049
Assets
Investment 21,098,731 - - 21,098,731
Deposit with financial institution - 498,046 - 498,046
Cash at banks - 3,036 - 3,036
Total financial assets 21,098,731 501,082 - 21,599,813
Liabilities
Amount due to Manager - - 72,384 72,384
Amount due to Trustee - - 1,474 1,474
Sundry payables and accrued
expenses - - 22,941 22,941
Total financial liabilities - - 96,799 96,799
2016
The significant accounting policies in Note 3 describe how the classes of financial instruments
are measured, and how income and expenses, including fair value gains and losses, are
recognised. The following table analyses the financial assets and liabilities of the Fund in the
statement of financial position by the class of financial instrument to which they are assigned,
and therefore by the measurement basis.
2017
25
Income, expense, gains
and losses
2017 2016
RM RM
Net gain/(loss) from financial assets at FVTPL 2,534,746 (2,707,674)
Income, of which derived from:
- Interest income from loans and receivables 16,262 30,630
(b) Financial instruments that are carried at fair value
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
Level 2:
Level 3:
Level 1 Level 2 Level 3 Total
RM RM RM RM
- 17,318,109 - 17,318,109
- 21,098,731 - 21,098,731
(c)
Deposits with financial institutions
Cash at banks
Amount due to Manager
Amount due to Trustee
Sundry payables and accrued expenses
other techniques for which all inputs which have a significant effect on the
recorded fair values are observable; either directly or indirectly; or
The following table shows an analysis of financial instruments recorded at fair value by the
level of the fair value hierarchy:
The Fund uses the following hierarchy for determining and disclosing the fair value of
financial instruments by valuation technique:
techniques which use inputs which have a significant effect on the recorded fair
value that are not based on observable market data.
2017
Financial assets at FVTPL
2016
The following are classes of financial instruments that are not carried at fair value and whose
carrying amounts are reasonable approximation of fair value due to their short period to
maturity or short credit period:
The Fund’s financial assets and liabilities at FVTPL are carried at fair value.
Financial assets at FVTPL
Financial instruments that are not carried at fair value and whose carrying amounts are
reasonable approximation of fair value
26
19. RISK MANAGEMENT POLICIES
Market risk
(i) Price risk
Percentage movements in
price by: 2017 2016
RM RM
-5.00% (865,905) (1,054,937)
+5.00% 865,905 1,054,937
(ii) Interest rate risk
The Fund is exposed to a variety of risks that include market risk, credit risk, liquidity risk, single
issuer risk, regulatory risk, country risk, management risk and non-compliance risk.
There are no financial instruments which are not carried at fair values and whose carrying
amounts are not reasonable approximation of their respective fair values.
Risk management is carried out by closely monitoring, measuring and mitigating the above said
risks, careful selection of investment coupled with stringent compliance to investment restrictions
as stipulated by the Capital Market and Services Act 2007, Securities Commission’s Guidelines on
Unit Trust Funds and the Deed as the backbone of risk management of the Fund.
Market risk, in general, is the risk that the value of a portfolio would decrease due to changes in
market risk factors such as equity prices, interest rates, foreign exchange rates and commodity
prices.
Sensitivity of the Fund’s NAV
Price risk refers to the uncertainty of an investment’s future prices. In the event of adverse
price movements, the Fund might endure potential loss on its investment in the Target Fund. In
managing price risk, the Manager actively monitors the performance and risk profile of the
investment portfolio.
The result below summarised the price risk sensitivity of the Fund’s NAV due to movements
of price by -5.00% and +5.00% respectively:
Interest rate risk will affect the value of the Fund’s investment, given the interest rate
movements, which are influenced by regional and local economic developments as well as
political developments.
Domestic interest rates on deposits and placements with licensed financial institutions are
determined based on prevailing market rates.
The result below summarised the interest rate sensitivity of the Fund’s NAV, or theoretical
value (applicable to money market deposit) due to the parallel movement assumption of the
yield curve by +100bps and -100bps respectively:
27
Parallel shift in yield
curve by: 2017 2016
RM RM
+100bps (12) (12)
-100bps 12 14
(iii) Currency risk
Percentage movements in
currencies other than the 2017 2016
Fund’s functional currency: RM RM
-5.00% (865,942) (1,054,976)
+5.00% 865,942 1,054,976
2017 2016
Assets denominated in RM % of net RM % of net
United States Dollar equivalent asset value equivalent asset value
Investment 17,318,109 97.90 21,098,731 98.12
Cash at bank 723 -* 784 -*
17,318,832 97.90 21,099,515 98.12
* represents less than 0.01%
Credit risk
Currency risk is associated with the Fund’s assets and liabilities that are denominated in
currencies other than the Fund’s functional currency. Currency risk refers to the potential loss
the Fund might face due to unfavorable fluctuations of currencies other than the Fund’s
functional currency against the Fund’s functional currency.
The result below summarised the currency risk sensitivity of the Fund’s NAV due to
appreciation/depreciation of the Fund’s functional currency against currencies other than the
Fund’s functional currency.
The net unhedged financial assets of the Fund that are not denominated in Fund’s functional
currency are as follows:
Sensitivity of the Fund's NAV, or theoretical value
The Fund, as a feeder fund, invests significantly all its assets in the Target Fund. The Target Fund
manages the risk by setting internal counterparty limits and undertaking internal credit evaluation
to minimise such risk.
Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss to
the Fund by failing to discharge an obligation. Credit risk applies to short-term deposits and
distributions receivable. The issuer of such instruments may not be able to fulfill the required
interest payments or repay the principal invested or amount owing. These risks may cause the
Fund’s investment to fluctuate in value.
Sensitivity of the Fund’s NAV
28
Liquidity risk
Single issuer risk
Regulatory risk
Country risk
Management risk
Non-compliance risk
Poor management of the Fund may cause considerable losses to the Fund that in turn may affect
the net asset value of the Fund.
Any changes in national policies and regulations may have effects on the capital market and the net
asset value of the Fund.
The risk of price fluctuation in foreign securities may arise due to political, financial and economic
events in foreign countries. If this occurs, there is a possibility that the net asset value of the Fund
may be adversely affected.
This is the risk of the Manager, the Trustee or the Fund not complying with internal policies, the
Deed of the Fund, securities law or guidelines issued by the regulators. Non-compliance risk may
adversely affect the investment of the Fund when the Fund is forced to rectify the non-compliance.
Liquidity risk is defined as the risk of being unable to raise funds or borrowings to meet payment
obligations as they fall due. This is also the risk of the Fund experiencing large redemptions, when
the Investment Manager could be forced to sell large volumes of its holdings at unfavourable
prices to meet redemption requirements.
The Fund maintains sufficient level of liquid assets, after consultation with the Trustee, to meet
anticipated payments and cancellations of units by unitholders. Liquid assets comprise of deposits
with licensed financial institutions and other instruments, which are capable of being converted
into cash within 5 to 7 days. The Fund’s policy is to always maintain a prudent level of liquid
assets so as to reduce liquidity risk.
The specific risks associated to the Target Fund include market risk, securities risk, emerging
market risk, settlement and credit risks, regulatory and accounting standards risks, political risk,
custody risk and liquidity risk.
The Fund, as a feeder fund, invests significantly all its assets in the Target Fund. The Target Fund
is restricted from investing in securities issued by any issuer in excess of a certain percentage of its
net asset value. Under such restriction, the risk exposure to the securities of any single issuer is
diversified and managed by the Target Fund Manager based on internal/external ratings.
For deposits with financial institutions, the Fund makes placements with financial institutions with
sound rating of P1/MARC-1 and above. Cash at banks are held for liquidity purposes and are not
exposed to significant credit risk.
29
20. CAPITAL MANAGEMENT
No changes were made in the objective, policies or processes during the financial years ended 31
May 2017 and 31 May 2016.
The Fund manages its capital structure and makes adjustments to it, in light of changes in
economic conditions. To maintain or adjust the capital structure, the Fund may issue new or bonus
units, make distribution payment, or return capital to unitholders by way of redemption of units.
The primary objective of the Fund’s capital management is to ensure that it maximises unitholders’
value by expanding its fund size to benefit from economies of scale and achieving growth in net
asset value from the performance of its investment.
30
AmGlobal Agribusiness
STATEMENT BY THE MANAGER
Kuala Lumpur, Malaysia
7 July 2017
I, GOH WEE PENG, for and on behalf of the Manager, AmFunds Management Berhad, for
AmGlobal Agribusiness do hereby state that in the opinion of the Manager, the accompanying
statement of financial position, statement of comprehensive income, statement of changes in equity,
statement of cash flows and the accompanying notes are drawn up in accordance with Malaysian
Financial Reporting Standards and International Financial Reporting Standards so as to give a true
and fair view of the financial position of the Fund as at 31 May 2017 and the comprehensive
income, the changes in equity and cash flows of the Fund for the financial year then ended.
GOH WEE PENG
For and on behalf of the Manager
AmFunds Management Berhad
31
32
TRUSTEE’S REPORT
33
DIRECTORY
Head Office 9th Floor, Bangunan Ambank Group
55, Jalan Raja Chulan, 50200 Kuala Lumpur
Tel: (03) 2032 2888 Facsimile: (03) 2031 5210
Email: [email protected]
Postal Address AmFunds Management Berhad
P.O Box 13611, 50816 Kuala Lumpur
Related Institutional Unit Trust Agent
AmBank (M) Berhad Head Office
Company No. 8515-D 31st Floor, Menara AmBank
No. 8 Jalan Yap Kwan Seng, 50450 Kuala Lumpur
AmInvestment Bank Berhad Head Office
Company No. 23742-V 22nd
Floor, Bangunan AmBank Group
55 Jalan Raja Chulan, 50200 Kuala Lumpur
For more details on the list of IUTAs, please contact the Manager.
For enquiries about this or any of the other Funds offered by AmFunds Management Berhad
Please call 2032 2888 between 8.45 a.m. to 5.45 p.m. (Monday to Thursday),
Friday (8.45 a.m. to 5.00 p.m.)
Semi-Annual Report28 February 2015
03 2132 2888 | aminvest.com | [email protected]
AmFunds Management Berhad (155432-A)