kenanga asean tactical total return fund · 2019-04-23 · kenanga asean tactical total return fund...

interim rePOrt

For the Financial Period From 1 September 2018 to 28 February 2019

KenAnGA AseAn tActicAl tOtAl return fund

KenAnGA AseAn tActicAl tOtAl return fund

Contents Page

corporate directory ii Directory of Manager’s Offices iiifund information 1manager’s report 2 - 4fund Performance 5 - 7trustee’s report 8statement by the manager 9financial statements 10 - 47

ii Kenanga ASEAN Tactical Total Return Fund Interim Report

cOrPOrAte directOrYmanager: Kenanga investors Berhad (Company No. 353563-P)

Registered OfficeLevel 17, Kenanga Tower,237, Jalan Tun Razak,50400 Kuala Lumpur, Malaysia.Tel: 03-2172 2888Fax: 03-2172 2999

Business OfficeLevel 14, Kenanga Tower,237, Jalan Tun Razak,50400 Kuala Lumpur, Malaysia.Tel: 03-2172 3000Fax: 03-2172 3080E-mail:[email protected]: www.KenangaInvestors.com.my

Board of directorsDatuk Syed Ahmad Alwee Alsree (chairman)Syed Zafilen Syed Alwee (independent

director)Peter John Rayner (independent director)Imran Devindran bin Abdullah (independent

director)Ismitz Matthew De Alwis

investment committee Syed Zafilen Syed Alwee (independent

member)Peter John Rayner (independent member)Imran Devindran bin Abdullah (independent

member)Ismitz Matthew De Alwis

company secretary: norliza Abd samad (MAICSA 7011089)

Level 17, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia

trustee: cimB commerce trustee Berhad (Company No. 313031-A)

Registered Office Level 13, Menara CIMBJalan Stesen Sentral 2Kuala Lumpur Sentral50490 Kuala Lumpur.Tel: 03-2261 8888Fax: 03-2261 0099Website: www.cimb.com

Business Office Level 21, Menara CIMBJalan Stesen Sentral 2Kuala Lumpur Sentral50490 Kuala Lumpur.Tel: 03-2261 8888Fax: 03-2261 9889

Auditor: ernst & Young (AF: 0039)

Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur.Tel: 03-7495 8000 Fax: 03-2095 5332

tax Adviser: ernst & Young tax consultants sdn Bhd (Company No. 179793-K)

Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur.Tel: 03-7495 8000 Fax: 03-2095 5332

membership: federation of investment managers malaysia (fimm)19-06-1, 6th Floor, Wisma Tune, 19, Lorong Dungun, Damansara Heights, 50490 Kuala Lumpur, Malaysia.Tel: 03-2093 2600 Fax: 03-2093 2700 Website: www.fimm.com.my

Kenanga ASEAN Tactical Total Return Fund Interim Report iii

directOrY Of mAnAGer’s OfficesRegional Branch Offices :

Kuala lumpurLevel 13, Kenanga Tower,237, Jalan Tun Razak,50400 Kuala Lumpur, Malaysia.Tel: 03-2172 3123 Fax: 03-2172 3133

Johor BahruNo. 63 Jalan Molek 3/1,Taman Molek 81100 Johor Bahru, JohorTel: 07-288 1683Fax: 07-288 1693

melakaNo. 25-1, Jalan Kota Laksamana 2/17Taman Kota Laksamana, Seksyen 275200 MelakaTel: 06-281 8913 / 06-282 0518Fax: 06-281 4286

Kuching1st Floor, No 71Lot 10900, Jalan Tun Jugah93350 Kuching, SarawakTel: 082-572 228 Fax: 082-572 229

KlangNo. 12, Jalan Batai Laut 3, Taman Intan41300 Klang, Selangor Darul EhsanTel: 03-3341 8818 / 03-3348 7889 Fax: 03-3341 8816

KuantanGround Floor Shop,No. B8, Jalan Tun Ismail 125000 Kuantan, Pahang.Tel : 09-514 3688Fax : 09-514 3838

Penang5.04, 5th Floor, Menara Boustead Penang No. 39, Jalan Sultan Ahmad Shah 10050 Penang. Tel : 04-210 6628Fax : 04-210 6644

ipohSuite 1, 2nd Floor,No. 63, Persiaran Greenhill,30450 Ipoh, Perak, MalaysiaTel: 05-254 7573 / 7570 / 7575Fax: 05-254 7606

miri 2nd Floor, Lot 1264, Centre Point Commercial Centre, Jalan Melayu, 98000 Miri, Sarawak Tel: 085-416 866 Fax: 085-322 340

Kota KinabaluLevel 8, Wisma Great EasternNo. 68, Jalan Gaya, 88000 Kota Kinabalu, SabahTel: 088-203 063 Fax: 088-203 062

seremban 2nd Floor, No. 1D-2, Jalan Tuanku Munawir 70000 Seremban, Negeri Sembilan Tel: 06-761 5678 Fax: 06-761 2242

Petaling Jaya44B, Jalan SS21/35Damansara Utama47400 Petaling Jaya, SelangorTel: 03-7710 8828Fax: 03-7710 8830

1 Kenanga ASEAN Tactical Total Return Fund Interim Report

1. fund infOrmAtiOn

1.1 fund name

Kenanga AseAn tactical total return fund (KAttrf or the fund)

1.2 fund category / type

equity / Growth

1.3 investment Objective

The Fund aims to provide capital appreciation over the long term (over 5 years) by investing in equities and equity related securities of companies in the ASEAN region.

1.4 investment strategy

The Fund seeks to achieve its investment objective by tactically allocating the portfolio during favourable market conditions in a diversified portfolio of equities and equity related securities* whilst in adverse market conditions to reallocate between 1% - 30% of the Fund’s NAV in deposits or money market instruments with the objective of achieving sustainable long-term positive returns.

* “Equity related securities” refers to warrants, convertible loan stocks, transferable subscription rights and depository receipts.

1.5 duration

The Fund was launched on 1 July 2015and shall exist as long as it appears to the Manager and the Trustee that it is in the interests of the unit holders for it to continue.

1.6 Performance Benchmark

8% growth in NAV per annum (compounded) over 5 years.

1.7 distribution Policy

As the objective of the Fund is to provide capital appreciation, distribution of income, if any, will be incidental.

1.8 Breakdown of unit holdings of the fund as at 28 february 2019

size of holdingsno. of

unit holdersno. of

units held5,000 and below 171 393,0105,001 - 10,000 61 495,20110,001 - 50,000 104 2,623,61350,001 - 500,000 21 2,776,369500,001 and above 9 16,763,268total 366 23,051,461

Kenanga ASEAN Tactical Total Return Fund Interim Report 2

2. mAnAGer’s rePOrt

2.1 explanation on whether the fund has achieved its investment objective.

For the financial period under review, the Fund decreased 3.28% in net asset value (NAV) terms, below its performance benchmark of 3.89% growth in NAV. Since inception, the Fund has achieved 2.29% as such achieving its objective.

2.2 comparison between the fund’s performance and performance of the benchmark

Performance chart since launch (01/07/2015 – 28/02/2019)Kenanga AseAn tactical total return fund vs Benchmark

Source: Novagni Analytics and Advisory

2.3 Investment strategies and policies employed during the financial period under review

For the financial period under review, the Fund aimed to achieve its investment objective by investing in a diversified portfolio of equities and equity related securities of companies in the ASEAN region. The Fund adopted a bottom-up stock picking strategy notwithstanding where those companies were listed or whether those companies were represented in any market indices.

2.4 the fund’s asset allocation as at 28 february 2019 and comparison with the previous financial period

Asset 28 feb 2019 28 feb 2018Listed investment securities 81.9% 89.6%Short term deposits and cash 18.1% 10.4%

reason for the differences in asset allocation

The Fund decreased allocation to quoted investment securities and increased allocation to cash as the fund manager initiated a more defensive asset allocation. Nevertheless, the Fund continues to place emphasis on stock selection.

Since Inception Date

Period

NAV PER UNIT *

3.93

-

8.00

RM 23.58 million RM 1.0229

32.57

Fund Category/Type

Equity / Growth

8.00

8.00

8.00

-3.28

-13.34

01 July 2015

Trustee

Fund

0.63

2.29

Benchmark

Max 5.50%

FUND SIZE *

FUND PERFORMANCE (%)

Benchmark

25.95

#Source : Novagni Analytics and Advisory ; Lipper,

28 February 2019

Launch Date

CIMB Commerce Trustee Berhad

1.70% p.a.

Sales Charge

Fund

FUND OBJECTIVE

Christopher Kok Keng Fai

CUMULATIVE FUND PERFORMANCE (%) #

Annual Management Fee

Annual Trustee Fee

0.59

3.89

Redemption Charge

Since Launch

-

HISTORICAL FUND PRICE *

0.05% p.a.

0.67

CALENDAR YEAR FUND PERFORMANCE (%) #

Kenanga ASEAN Tactical Total Return Fund March 2019

1 month

6 months

1 year

3 years

5 years

Period

7.92

4.63

4.97

-

-18.00

2015

2014

2018

2017

2016

Aims to provide capital appreciation over the long-term

(over 5 years) by investing in equities and equity related

securities of companies in the ASEAN region.

-

Benchmark

Compounded Return of 8% p.a.

Designated Fund Manager

Lipper Analytics10 Feb 2019

3-yearFund Volatility

Moderate

-10

-5

0

5

10

15

20

25

30

35

Jul 1

5

Au

g 1

5

Oct

15

De

c 1

5

Fe

b 1

6

Ap

r 16

Jun

16

Au

g 1

6

Oct

16

De

c 1

6

Fe

b 1

7

Ap

r 17

Jun

17

Au

g 1

7

Oct

17

De

c 1

7

Fe

b 1

8

Ap

r 18

Jun

18

Au

g 1

8

Oct

18

De

c 1

8

Fe

b 1

9

% Cumulative Return, Launch to 28/02/2019

Kenanga Asean Tactical Total Return : 2.29 Synthetic Risk Free Rate 8% MYR : 32.57

Source: Novagni Analytics and Advisory

26-Dec-18

9-Jan-18

4

RM 1.2123Highest

COUNTRY AND CASH ALLOCATION (% NAV) *ASSET ALLOCATION (% NAV) * SECTOR ALLOCATION (% NAV) *

All fees and charges payable to the Manager and the Trustee

are subject to the goods and services tax /sales and services

tax/other taxes of similar nature as may be imposed by the

government or other authorities from time to time.

Based on the fund’s portfolio returns as at 10 February 2019, the Volatility Factor (VF) for this fund is 8.49 and is classified as “Moderate”. (Source: Lipper). “Moderate”

includes funds with VF that are above 6.595 and less than or equal to 8.795 (source: Lipper). The VF means there is a possibility for the fund in generating an upside return

or downside return around this VF. The Volatility Class (VC) is assigned by Lipper based on quintile ranks of VF for qualified funds. VF is subject to monthly revision and VC

will be revised every six months. The fund’s portfolio may have changed since this date and there is no guarantee that the fund will continue to have the same VF or VC in

the future. Presently, only funds launched in the market for at least 36 months will display the VF and its VC.The Master Prospectus dated 30 June 2017 and the

Supplemental Prospectus (if any), its Product Highlights Sheets (“PHS”) or Supplemental Disclosure Document (“SDD”) (if any) have been registered with the Securities

Commission Malaysia, who takes no responsibility for its contents. A copy of the Master Prospectus, Supplemental Prospectus (if any), SDD (if any) and the PHS are

obtainable at our offices. Application for Units can only be made on receipt of application form referred to in and accompanying the Master Prospectus and/or Supplemental

Prospectus (if any), SDD (if any) and PHS. Investors are advised to read and understand the Master Prospectus, its PHS and any other relevant product disclosure

documents involved before investing. Investors are also advised to consider the fees and charges before investing. Unit prices and distributions may go down as well as up.

Where a unit split/distribution is declared, investors are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from pre-unit split

Nil

Lowest RM 0.9632

1 DBS GROUP HOLDINGS LTD

BANK CIMB NIAGA TBK PT

3

DISTRIBUTION HISTORY

BANK NEGARA INDONESIA PERSER

3.75%

3.43%

3.34%

BANK CENTRAL ASIA TBK PT

TOP EQUITY HOLDINGS (% NAV) *

4.81%

3.92%

* Source: Kenanga Investors Berhad, 28 February 2019

2

Not Applicable

5

TELEKOMUNIKASI INDONESIA PERSERO TBK PT

13.30%

21.10%

18.80%

86.70%

78.90%

81.20%

December

January

February

Equity Liquidity 18.8%

5.7%

8.4%

9.1%

23.4%

34.6%

FD / NI / Cash

Philippines

Thailand

Singapore

Indonesia

Malaysia

0.1%

1.9%

2.1%

3.3%

4.2%

7.7%

12.1%

12.5%

13.8%

18.8%

23.5%

Other

Properties

Healthcare

Technology

Construction

Telecommunications

Trading and Services

Industrial Products

Consumer Products

Short Term Deposit and Cash

Finance

Where a unit split/distribution is declared, investors are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from pre-unit split

NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV. Where a unit split is declared, investors should note that the value of their investment in Malaysian

Ringgit will remain unchanged after the distribution of the additional units. A Fund’s track record does not guarantee its future performance. Investors are advised to read and

understand the contents of the unit trust loan financing risk disclosure statement before deciding to borrow to purchase units. Kenanga Investors Berhad is committed to

preventing Conflict of Interest between its various businesses and activities and between its clients / directors / shareholders and employees by having in place procedures

and measures for identifying and properly managing any apparent, potential and perceived Conflict of Interest by making disclosures to Clients, where appropriate. The

Manager wishes to highlight the specific risks of the Fund are equity risk, warrant and convertible loan stock risk, currency risk, country risk and settlement risk.


2.5 fund performance analysis based on nAV per unit (adjusted for income distribution; if any) since last review period

AssetPeriod under

reviewKenanga AseAn tactical total return fund -3.28%10% growth in nAV per annum (compounded) over the long term 3.89%

Source: Lipper; Novagni Analytics and Advisory

For the financial period under review, the Fund decreased 3.28% underperforming its performance benchmark of 3.89%. The underperformance is due to stock selection.

2.6 review of the market

market review

*All returns are in local currency unless mentioned otherwise

For the period under review (1 September 2018 – 28 February 2019), the MSCI ASEAN index was up 1.0% in USD and -0.3 in MYR. In local currency, the sole outperformers was Indonesia (+7.1%) while the other ASEAN countries underperformed with Singapore (-0.0%), Philippines (-1.9%), Thailand (-3.9%) and Malaysia (-6.2%).

Despite escalation in US-China trade tension, US stock indices continued to hit new highs, on the back of stronger than expected macro-economic data. As widely expected, the Federal Reserve raised interest rate by another 25 basis points (bps) in the September Federal Open Market Committee (FOMC) meeting, which reflected the positive economic outlook. Elsewhere, the European Central Bank reiterated expectation of no rate change until at least summer 2019. However, concerns over potential no-deal Brexit and Italy budget capped upside in the European markets.

October was a brutal month for equity markets. Equities tumbled amidst escalated US-China trade tension, rising treasury yields, disappointment over apple suppliers’ profits and UK’s introduction of digital tax. The International Monetary Fund (IMF) cut 2018/19 global growth to 3.7% (previously 3.9%), the first downgrade since July 2016. IMF highlighted that risks to global outlook have risen due to the trade tensions and sharper interest rate hikes. November ended with mixed performances across the globe. While US equity markets recorded monthly gains with Dow Jones up by 1.7% month-on-month (M-o-M), European markets were generally negative. Investors were generally cautious over Brexit-led turmoil, falling oil prices and the uncertain outcome between Trump and Xi’s trade talk in G20 meeting.

December was also a rough month as markets have been battered by the trade conflict between the United States and China, fears over rising interest rates, geopolitical snafus like Brexit and falling oil prices. During the month, the US Federal Reserve’s decision raised interest rates again by 25 bps, to a range of 2.25% to 2.5%, the ninth such move since late-2015. Foreigners were net sellers of RM1 billion net outflows in December, which brought cumulative net selling to RM11.7 billion, more than offsetting 2017’s net inflows of RM10.8 billion.

US markets rose in the first two months of 2019 in comparison with the rough correction back in December. The central bank turned more dovish indicating it will be patient in its monetary normalisation plan given moderating economic activity, muted inflation pressures and market uncertainty arising from concerns regarding trade war and global growth. US President Donald Trump announced he will be delaying US tariffs on China until further notice.


2.6 review of the market (contd.)

market review (contd.)

In the UK, Brexit uncertainty continues as British parliament votes on rejecting Prime Minister Theresa May’s European Union withdrawal agreement. This was followed by May’s administration winning a vote of no-confidence in the House of Commons by a thin margin.

Outlook and strategy

Better than expected Chinese economic data, coupled with the more dovish tone from the US Fed suggests that macro conditions are improving. We are cautiously optimistic on the market but will closely monitor the on-going US-China trade talks for signs of progress. The two sides will meet again soon, which could imply a deal as early as late April.

We continue to focus on stock picking for outperformance. Elections related news will continue to make headlines in Indonesia and Thailand, providing trading opportunities. Nonetheless, we are increasing positions in Malaysia as the equity market and currency has continued to lag peers. We also still see value to found in the small cap space, given the sharp decline last year.

2.7 distributions

For the financial period under review, the Fund did not declare any distribution.

2.8 details of any unit split exercise

The Fund did not carry out any unit split exercise during the financial period under review.

2.9 Significant changes in the state of affair of the Fund during the financial period

There were no significant changes in the state of affair of the Fund during the financial period and up until the date of the manager’s report, not otherwise disclosed in the financial statements.

2.10 circumstances that materially affect any interests of the unit holders

During the financial period under review, there were no circumstances that materially affected any interests of the unit holders.

2.11 cross trade

During the financial period under review, no cross-trade transactions was undertaken by investment manager for the best interest of the Fund.

2.12 rebates and soft commissions

It is the policy of the Manager to credit any rebates received into the account of the Fund. Any soft commissions received by investment manager on behalf of the Fund are in the form of research and advisory services that assist in the decision making process relating to the investment of the Fund which are of demonstrable benefit to unit holders of the Fund. For the financial period under review, the Manager has received soft commissions from the stockbrokers.


3. fund PerfOrmAnce

3.1 Details of portfolio composition of the Fund for financial period as at 28 February 2019 against last the three financial years/period as at 31 August are as follows:

a. distribution among industry sectors and category of investments:

As at fY fY As at28.2.2019 2018 2017 31.8.2016

% % % %

Finance 20.7 20.3 9.8 10.2Trading/Services 20.7 15.7 14.0 24.9Industrial products 12.5 9.2 10.4 5.1Consumer products 11.8 18.4 19.5 21.2Properties 5.6 10.3 12.4 13.0Constructions 4.3 4.6 15.4 7.0Technology 3.3 6.2 2.7 0.6Infrastructure 1.6 - 2.4 -Real Estate

Investment Trusts 1.3 - - 2.4

Exchange Traded Funds - 1.1 - -

Mutual Fund - - - 2.0Warrants 0.1 0.4 - -Short term deposits

and cash 18.1 13.8 13.4 13.6

100.0 100.0 100.0 100.0

Note: The above mentioned percentages are based on total investment market value plus cash.

b. distribution among markets

As at 28 February 2019, the Fund had invested in the following markets.

7.1%

10.4%

10.9%

28.9%

42.7%

Philippines

Thailand

Singapore

Indonesia

Malaysia


3.2 Performance details of the Fund for the financial period ended 28 February 2019 against the last three financial years/period ended 31 August are as follows:

Period from 1.09.2018 to fY fY

Period from 1.7.2015 to

28.02.2019 2018 2017 31.8.2016

Net asset value (“NAV”) (RM Million) 23.58* 29.71 36.07 22.13

Units in circulation (Million) 23.05 28.09 31.72 20.68

NAV per unit (RM) 1.0229* 1.0576 1.1372 1.0702 Highest NAV per unit

(RM) 1.0668 1.2123 1.1581 1.0990 Lowest NAV per unit (RM) 0.9632 1.0205 1.0612 0.9652 Total return (%) -3.28 -7.00 6.26 7.02- Capital growth (%) -3.28 -7.00 6.26 7.02- Income growth (%) - - - - Gross distribution per unit

(sen) - - - - Net distribution per unit

(sen) - - - - Management expense

ratio (“MER”) (%) 1 1.89 2.14 2.29 2.39 Portfolio turnover ratio

(“PTR”) (times) 2 0.71 1.17 1.50 2.71

Note: TotalreturnistheactualreturnoftheFundfortherespectivefinancialperiods/years,computed based on NAV per unit and net of all fees.

MER is computed based on the total fees and expenses incurred by the Fund divided by the average fund size calculated on a daily basis. PTR is computed 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.

1. MERisloweragainstpreviousfinancialyearmainlyduetolowerrecoveredexpensesincurredduringthefinancialperiodunderreview.

2. PTRisloweragainstpreviousfinancialyearmainlyduetotheshorterperiodunderreview.

* Based on bid price fair valuation method on all investments held by the Fund as at 28 February 2019, the NAV and NAV per unit would be RM23.47 million and RM1.0182 respectively.(AsdisclosedunderNote13ofthefinancialstatements)


3.3 Average total return of the fund

1 Year28 feb 18 - 28 feb 19

3 Years29 feb 16 - 28 feb 19

Kenanga AseAn tactical total return fund -13.34% 0.58%compounded return of 8% p.a. 8.00% 8.65%


3.4 Annual total return of the fund

Period under review

31 Aug 18 - 28 feb 19

1 Year31 Aug 17

- 31 Aug 18

1 Year31 Aug 16

- 31 Aug 17

since inception1 Jul 15

- 31 Aug 16Kenanga AseAn tactical total return fund -3.28% -7.00% 6.26% 7.02%compounded return of 8% p.a. 3.89% 8.00% 8.00% 9.41%


investors are reminded that past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.


4. trustee’s rePOrt tO tHe unit HOlders Of KenAnGA AseAn tActicAl tOtAl return fund

We, CIMB Commerce trustee Berhad being the Trustee of Kenanga ASEAN Tactical Total Return Fund (“the Fund”), are of the opinion that Kenanga Investors Berhad (“the Manager”), acting in the capacity as Manager of the Fund, has fulfilled its duties in the following manner for the financial period from 1 September 2018 to 28 February 2019.

a) The Fund has been managed in accordance with the limitations imposed on the investment powers of the Manager under the Deed, the Securities Commission Malaysia’s Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007 (as amended from time to time) and other applicable laws;

b) Valuation and pricing for the Fund has been carried out in accordance with the Deed and relevant regulatory requirements; and

c) Creation and cancellation of units have been carried out in accordance with the Deed and relevant regulatory requirements.

For and on behalf of CIMB Commerce Trustee Berhad

Lee Kooi Yoke Chief Executive Officer

Kuala Lumpur, Malaysia 15 April 2019


5. stAtement BY tHe mAnAGer

I, Ismitz Matthew De Alwis, being a director of Kenanga Investors Berhad, do hereby state that, in the opinion of the Manager, the accompanying statement of financial position as at 28 February 2019 and the related statement of comprehensive income, statement of changes in net asset value and statement of cash flows for the financial period from 1 September 2018 to 28 February 2019 together with notes thereto, 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 Kenanga ASEAN Tactical Total Return Fund as at 28 February 2019 and of its financial performance and cash flows for the financial period from 1 September 2018 to 28 February 2019 and comply with the requirements of the Deed.

For and on behalf of the Manager KENANGA INVESTORS BERHAD

ISMITZ MATTHEW DE ALWISExecutive Director/Chief Executive Officer

Kuala Lumpur, Malaysia

15 April 2019


6. finAnciAl stAtements

6.1 stAtement Of cOmPreHensiVe incOme fOr tHe finAnciAl PeriOd frOm 1 sePtemBer 2018 tO 28 feBruArY 2019

(unaudited)

note1.9.2018 to 28.2.2019

1.9.2017 to 28.2.2018

rm rm

inVestment incOme

Dividend income 159,128 363,765 Interest income 19,535 17,584 Net (loss)/gain from investments:- Financial assets at fair value through profit or

loss (“FVTPL”) 4 (991,862) 1,791,205 Net gain/(loss) on foreign currency exchange 34,786 (262,797)

(778,413) 1,909,757

eXPenses

Manager’s fee 5 221,724 298,051 Trustee’s fee 6 6,521 8,766 Auditors’ remuneration 4,488 4,488 Tax agent’s fee 1,994 1,994 Administrative expenses 30,013 72,170

264,740 385,469

net (lOss)/incOme BefOre tAX (1,043,153) 1,524,288

Income tax 7 - -

net (lOss)/incOme After tAX, rePresentinG tOtAl cOmPreHensiVe (lOss)/incOme fOr tHe finAnciAl PeriOd (1,043,153) 1,524,288

Net (loss)/income after tax is made up as follows:Realised loss (718,687) (97,520)Unrealised (loss)/gain 4 (324,466) 1,621,808

(1,043,153) 1,524,288

The accompanying notes form an integral part of the financial statements.


6.2 stAtement Of finAnciAl POsitiOnAs At 28 feBruArY 2019 (unaudited)

note 28.2.2019 28.2.2018rm rm

Assets

inVestments

Financial assets at FVTPL 4 19,048,360 30,755,010 Short term deposits 8 523,000 -

19,571,360 30,755,010

OtHer Assets

Amount due from licensed financial institutions 9 702,225 -Amount due from Manager - 1,065,619 Other receivables 10 14,099 37,563 Cash at bank 3,682,954 3,551,601

4,399,278 4,654,783

tOtAl Assets 23,970,638 35,409,793

liABilities

Amount due to Manager 44,755 -Amount due to Trustee 923 1,285 Amount due to licensed financial institutions 9 403,860 569,722 Other payables 11 50,520 36,245 tOtAl liABilities 500,058 607,252

eQuitY

Unit holders’ contribution 23,623,589 30,215,291 (Accumulated loss/Retained earning) (153,009) 4,587,250 net Asset VAlue (“nAV”) AttriButABle

tO unit HOlders 12 23,470,580 34,802,541

tOtAl liABilities And eQuitY 23,970,638 35,409,793

numBer Of units in circulAtiOn 12(a) 23,051,461 29,550,193

net Asset VAlue Per unit (rm) 13 1.0182 1.1777



6.3 stAtement Of cHAnGes in net Asset VAlue fOr tHe finAnciAl PeriOd frOm 1 sePtemBer 2018 tO 28 feBruArY 2019

(unaudited)

noteunit holders’ contribution

retained earnings total nAV

rm rm rm

1.9.2018 to 28.2.2019At beginning of the financial

period 28,772,417 890,144 29,662,561 Total comprehensive loss - (1,043,153) (1,043,153)Creation of units 12(a) 510,333 - 510,333 Cancellation of units 12(a) (5,658,162) - (5,658,162)Distribution equalisation 12(a) (999) - (999)At end of the financial period 23,623,589 (153,009) 23,470,580

1.9.2017 to 28.2.2018At beginning of the financial

period 32,834,168 3,062,962 35,897,130 Total comprehensive income - 1,524,288 1,524,288 Creation of units 12(a) 9,018,032 - 9,018,032 Cancellation of units 12(a) (11,637,489) - (11,637,489)Distribution equalisation 12(a) 580 - 580 At end of the financial period 30,215,291 4,587,250 34,802,541



6.4 stAtement Of cAsH flOWs fOr tHe finAnciAl PeriOd frOm 1 sePtemBer 2018 tO 28 feBruArY 2019

(unaudited)

1.9.2018 to 28.2.2019

1.9.2017 to 28.2.2018

rm rm

cAsH flOWs frOm OPerAtinG And inVestinG ActiVities

Proceeds from sale of financial assets at FVTPL 21,250,971 25,572,301 Dividends received 174,671 374,661 Interest from deposits received 19,542 17,772 Tax agent’s fee paid (3,500) -Trustee’s fee paid (6,863) (8,939)Auditors’ remuneration paid (9,000) (9,000)Payment for other fees and expenses (23,838) (53,298)Manager’s fee paid (233,346) (303,947)Purchase of financial assets at FVTPL (15,942,892) (22,719,830)Net cash generated from operating and investing activities 5,225,745 2,869,720

cAsH flOWs frOm finAncinG ActiVities

Cash received from units created 513,711 7,915,237 Cash paid on units cancelled (5,645,786) (11,769,606)Net cash used in financing activities (5,132,075) (3,854,369)

net increAse/(decreAse) in cAsH And cAsH eQuiVAlents 93,670 (984,649)

effect Of fOreiGn eXcHAnGe rAte cHAnGes 34,786 (262,797)cAsH And cAsH eQuiVAlents At BeGinninG Of

tHe finAnciAl PeriOd 4,077,498 4,799,047 cAsH And cAsH eQuiVAlents At end Of tHe

finAnciAl PeriOd 4,205,954 3,551,601

Cash and cash equivalents comprise:Cash at bank 3,682,954 3,551,601 Short term deposits 523,000 -

4,205,954 3,551,601



6.5 nOtes tO tHe finAnciAl stAtements fOr tHe finAnciAl PeriOd frOm 1 sePtemBer 2018 tO 28 feBruArY 2019

(unaudited)

1. tHe fund, tHe mAnAGer And tHeir PrinciPAl ActiVities

Kenanga ASEAN Tactical Total Return Fund (“the Fund”) was constituted pursuant to the executed Deed dated 9 December 2013 and First Supplemental Deed dated 29 May 2015 (collectively, referred to as “the Deed”) between the Manager, Kenanga Investors Berhad, and CIMB Commerce Trustee Berhad (“the Trustee”). The Fund commenced operations on 1 July 2015 and will continue to be in operation until terminated by the Trustee, as provided under Part 12 of the Deed.

Kenanga Investors Berhad is a wholly-owned subsidiary of Kenanga Investment Bank Berhad that is listed on the Main Market of Bursa Malaysia Securities Berhad. All of these companies are incorporated in Malaysia.

The principal place of business of the Manager is Level 14, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur.

The Fund seeks to provide capital appreciation over the long-term (over 5 years) by investing in equities and equity related securities of companies in the ASEAN region. The ASEAN countries that the Fund may invest in will include, but are not limited to, Malaysia, Singapore, Indonesia, Thailand, Philippines and Vietnam.

2. finAnciAl risK mAnAGement OBJectiVes And POlicies

The Fund is exposed to a variety of risks including market risk (which includes interest rate risk, price risk and currency risk), credit risk and liquidity risk. Whilst these are the most important types of financial risks inherent in each type of financial instruments, the Manager and the Trustee would like to highlight that this list does not purport to constitute an exhaustive list of all the risks inherent in an investment in the Fund.

The Fund has an approved set of investment guidelines and policies as well as internal controls which sets out its overall business strategies to manage these risks to optimise returns and preserve capital for the unit holders, consistent with the long term objectives of the Fund.

a. market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk includes interest rate risk, price risk and currency risk.

Market risk arises when the value of the investments fluctuates in response to the activities of individual companies, general market or economic conditions. It stems from the fact that there are economy-wide perils, which threaten all businesses. Hence, investors are exposed to market uncertainties. Fluctuation in the investments’ prices caused by uncertainties in the economic, political and social environment will affect the NAV of the Fund.


2. finAnciAl risK mAnAGement OBJectiVes And POlicies (cOntd.)

a market risk (contd.)

The Manager manages the risk of unfavourable changes in prices by cautious review of the investments and continuous monitoring of their performance and risk profiles.

i. interest rate risk

Interest rate risk refers to how the changes in the interest rate environment would affect the performance of Fund’s investments. Rate offered by the financial institutions will fluctuate according to the Overnight Policy Rate determined by Bank Negara Malaysia and this has direct correlation with the Fund’s investments in deposits.

The Fund is not exposed to significant interest rate risk as its deposits are short term in nature and have fixed interest rates.

interest rate risk exposure

The following table analyses the Fund’s interest rate risk exposure. The Fund’s financial assets and financial liabilities are disclosed at fair value and categorised by the earlier of contractual re-pricing or maturity dates.

up to 1 year

non-exposure

to interest rate

movement total

Weighted average effective interest

rate*rm rm rm %

28.2.2019AssetsFinancial assets at

FVTPL - 19,048,360 19,048,360 Short term deposits 523,000 - 523,000 3.2Other assets - 4,399,278 4,399,278

523,000 23,447,638 23,970,638

liabilitiesOther liabilities - 449,538 449,538

total interest rate sensitivity gap 523,000 22,998,100 23,521,100

* Computed based on assets with exposure to interest rate movement only.



a. market risk (contd.)

i. interest rate risk (contd.)

interest rate risk exposure (contd.)

up to 1 year

non-exposure

to interest rate

movement total

Weighted average effective interest

rate*rm rm rm %

28.2.2018AssetsFinancial assets at

FVTPL - 30,755,010 30,755,010Other assets - 4,654,783 4,654,783

- 35,409,793 35,409,793

liabilitiesOther liabilities - 571,007 571,007

total interest rate sensitivity gap - 34,838,786 34,838,786

* Computed based on assets with exposure to interest rate movement only.

ii. Price risk

Price risk is the risk of unfavourable changes in the fair values of listed equity securities, listed collective investment schemes and listed warrants. The Fund invests in listed equity securities, listed collective investment schemes and listed warrants which are exposed to price fluctuations. This may then affect the NAV per unit of the Fund.




ii. Price risk (contd.)

Price risk sensitivity

The Manager’s best estimate of the effect on the (loss)/profit for the financial period due to a reasonably possible change in investments in listed equity securities, listed collective investment schemes and listed warrants with all other variables held constant is indicated in the table below:

changes in price

increase/(decrease)

Basis points

effects on (loss)/profit for

the financial period

Gain/(loss)rm

28.2.2019Financial assets at FVTPL 5/(5) 9,524/(9,524)

28.2.2018Financial assets at FVTPL 5/(5) 15,378/(15,378)

In practice, the actual trading results may differ from the sensitivity analysis above and the difference could be material.

Price risk concentration

The following table sets out the Fund’s exposure and concentration to price risk based on its portfolio of financial instruments as at the reporting date.

fair value Percentage of nAV28.2.2019 28.2.2018 28.2.2019 28.2.2018

rm rm % %

financial assets at fVtPl 19,048,360 30,755,010 81.2 88.4




ii. Price risk (contd.)

Price risk concentration (contd.)

The Fund’s concentration of price risk from the Fund’s listed equity securities, listed collective investment schemes and listed warrants analysed by sector is as follows:


rm rm % %

Finance 4,816,136 6,903,943 20.6 19.8Trading/Services 4,813,927 6,097,960 20.6 17.5Industrial products 2,897,564 3,723,250 12.3 10.7Consumer products 2,755,487 5,457,360 11.8 15.8Properties 1,306,015 4,573,179 5.5 13.1Constructions 992,274 2,607,389 4.2 7.5Technology 776,933 663,732 3.3 1.9Infrastructure 360,757 410,641 1.5 1.2Real Estate

Investment Trusts 307,364 - 1.3 -

Exchange traded funds - 310,167 - 0.9

Warrants 21,903 7,389 0.1 -19,048,360 30,755,010 81.2 88.4

iii. currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

When the foreign currencies fluctuate in an unfavourable movement against Ringgit Malaysia, the investment face currency loss in addition to capital gain/(loss). This will lead to lower NAV of the Fund.

The Manager may consider managing the currency risk using currency hedging. However, this would be subject to the current market outlook on the currency exposure risk as well.




iii. currency risk (contd.)

currency risk sensitivity

The following table indicates the currencies to which the Fund had significant exposure at the reporting date on its financial assets and financial liabilities. The analysis calculates the effect of a reasonably possible movement of the currency rate against Ringgit Malaysia on profit with all other variables held constant.

changes in currency

rateincrease/

(decrease)Basis points

effects on (loss)/profit for the

financial periodGain/(loss)

rm

28.2.2019IDR/MYR 5/(5) 2,953/(2,953) PHP/MYR 5/(5) 924/(924) SGD/MYR 5/(5) 1,636/(1,636) THB/MYR 5/(5) 1,963/(1,963) USD/MYR 5/(5) -

28.2.2018IDR/MYR 5/(5) 3,074/(3,074) PHP/MYR 5/(5) 935/(935) SGD/MYR 5/(5) 4,259/(4,259) THB/MYR 5/(5) 2,672/(2,672) USD/MYR 5/(5) 155/(155)

In practice, the actual trading results may differ from the sensitivity analysis above and the difference could be material.




iii. currency risk (contd.)

currency risk concentration

The following table sets out the Fund’s exposure to foreign currency exchange rates on its financial assets and financial liabilities as at reporting date.


rm rm % %

IDR 5,905,067 6,147,184 25.2 17.7PHP 1,847,249 1,870,064 7.9 5.4SGD 3,272,037 8,518,980 13.9 24.5THB 3,926,808 5,344,909 16.7 15.3USD - 310,167 - 0.9

b. credit 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. The Manager manages the credit risk by undertaking credit evaluation to minimise such risk.

i. credit risk exposure

As at the reporting date, the Fund’s maximum exposure to credit risk is represented by the carrying amount of each class of financial asset recognised in the statement of financial position.

ii. financial assets that are either past due or impaired

As at the reporting date, there are no financial assets that are either past due or impaired.

iii. Credit quality of financial assets

The Fund invests in deposits with financial institutions licensed under the Financial Services Act 2013 and Islamic Financial Services Act 2013. The following table analyses the licensed financial institutions by rating category:

short term deposits

Percentage of total short term deposits Percentage of nAV

28.2.2019 28.2.2018 28.2.2019 28.2.2018% % % %

ratingP1 100.0 - 2.2 -



c. liquidity risk

Liquidity risk is defined as the risk that the Fund will encounter difficulty in meeting obligations associated with financial liabilities that are to be settled by delivering cash or another financial asset. Exposure to liquidity risk arises because of the possibility that the Fund could be required to pay its liabilities or cancel its units earlier than expected. The Fund is exposed to cancellation of its units on a regular basis. Units sold to unit holders by the Manager are cancellable at the unit holders’ option based on the Fund’s NAV per unit at the time of cancellation calculated in accordance with the Deed.

The liquid assets comprise cash, short term deposits with licensed financial institutions and other instruments, which are capable of being converted into cash within 7 days.

The following table analyses the maturity profile of the Fund’s financial assets and financial liabilities in order to provide a complete view of the Fund’s contractual commitments and liquidity.

up to 1 yearnote 28.2.2019 28.2.2018

rm rm

AssetsFinancial assets at FVTPL 19,048,360 30,755,010 Short term deposits 523,000 - Other assets 4,399,278 4,654,783

i. 23,970,638 35,409,793

liabilitiesOther liabilities ii. 449,538 571,007

Equity iii. 23,470,580 34,802,541

Liquidity gap 50,520 36,245

i. financial assets

Analysis of financial assets at FVTPL into maturity groupings is based on the expected date on which these assets will be realised. The Fund’s investments in listed equity securities, listed collective investment schemes and listed warrants have been included in the “up to 1 year” category on the assumption that these are highly liquid investments which can be realised should all of the Fund’s unit holders’ equity be required to be redeemed. For other assets, the analysis into maturity groupings is based on the remaining period from the end of the reporting period to the contractual maturity date or if earlier, the expected date on which the assets will be realised.

ii. financial liabilities

The maturity grouping is based on the remaining period from the end of the reporting period to the contractual maturity date or if earlier, the date on which liabilities will be settled. When the counterparty has a choice of when the amount is paid, the liability is allocated to the earliest period in which the Fund can be required to pay.



c. liquidity risk (contd.)

iii. equity

As the unit holders can request for redemption of their units, they have been categorised as having a maturity of “up to 1 year”.

d. regulatory reportings

It is the Manager’s responsibility to ensure full compliance of all requirements under the Guidelines on Unit Trust Funds issued by Securities Commission Malaysia. Any breach of any such requirement has been reported in the mandatory reporting to Securities Commission Malaysia on a monthly basis.

3. summArY Of siGnificAnt AccOuntinG POlicies

a. Basis of accounting

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 International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies below.

The accounting policies adopted are consistent with those of the previous financial year except for the adoption of the new and amended MFRS and Interpretation Committee’s (“IC”) interpretation, which became effective for the Fund on 1 September 2018.

description

Effective for financial year beginning on or

after

Amendments to MFRS contained in the document entitled “Annual Improvements to MFRS Standards 2014 - 2016 Cycle” 1 January 2018

Amendments to MFRS 1: First-time Adoption of Malaysian Financial Reporting Standards contained in the document entitled “Annual Improvements to MFRS Standards 2014 - 2016 Cycle” 1 January 2018

Amendments to MFRS 128: Investments in Associates and Joint Ventures contained in the document entitled “Annual Improvements to MFRS Standards 2014 - 2016 Cycle” 1 January 2018

MFRS 9: Financial Instruments 1 January 2018MFRS 15: Revenue from Contracts with Customers 1 January 2018Clarifications to MFRS 15: Revenue from Contracts with

Customers 1 January 2018Amendments to MFRS 2:ClassificationandMeasurement

of Shared-Based Payment Transactions 1 January 2018


3. summArY Of siGnificAnt AccOuntinG POlicies (cOntd.)

a. Basis of accounting (contd.)

description


after

Amendments to MFRS 4: Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts

Temporary exemption from MFRS 9 subject

to certain criteria being met for annual periods

beginning on or after 1 January 2018

Amendments to MFRS 140: Transfers of Investment Property 1 January 2018

IC Interpretation 22: Foreign Currency Transactions and Advance Consideration 1 January 2018

The adoption of the new and amended MFRS and IC interpretation did not have any significant impact on the financial position or performance of the Fund other than the impacts as discussed below:

mfrs 9 Financial Instruments

MFRS 9 Financial Instruments replaces MFRS 139 Financial Instruments: Recognition and Measurement and all previous versions of MFRS 9 for annual periods on or after 1 January 2018. MFRS 9 requires financial assets to be classified on the basis of the business model within which they are held and their contractual cash flow characteristics. The requirements related to the fair value option for financial liabilities were also changed to address own credit risk. The adoption of MFRS 9 has no effect on the classification and measurement of the Fund’s financial assets and financial liabilities.

MFRS 9 also requires impairment assessments to be based on an expected credit loss model, replacing the MFRS 139 incurred loss model. Finally, MFRS 9 aligns hedge accounting more closely with risk management, establish a more principle-based approach to hedge accounting and address inconsistencies and weaknesses in the previous model.

The Fund did not change the classification of its investments nor were there any material financial impact arising from the adoption of this standard.



b. standards, amendments and interpretations issued but not yet effective

As at the reporting date, the following Standards, Amendments and Interpretations that have been issued by MASB will be effective for the Fund in future financial periods. The Fund intends to adopt the relevant standards and interpretations when they become effective.

description


after

Amendments to MFRS contained in the document entitled “Annual Improvements to MFRS Standards document 2015 - 2017 Cycle” 1 January 2019

Amendments to MFRS 3 and MFRS 11: Previously Held Interest in a Joint Operation contained in the document entitled “Annual Improvements to MFRS Standards 2015 - 2017 Cycle” 1 January 2019

Amendments to MFRS 112: IncomeTaxConsequencesofPaymentsonFinancialInstrumentsClassifiedasEquity contained in the document entitled “Annual Improvements to MFRS Standards 2015 - 2017 Cycle” 1 January 2019

Amendments to MFRS 123: Borrowing Costs Eligible for Capitalisation contained in the document entitled “Annual Improvements to MFRS Standards 2015 - 2017 Cycle” 1 January 2019

MFRS 16: Leases 1 January 2019Amendments to MFRS 9: Prepayment Features with

Negative Compensation 1 January 2019Amendments to MFRS 119: Plan Amendment, Curtailment

or Settlement 1 January 2019Amendments to MFRS 128: Long-term Interests in

Associates and Joint Ventures 1 January 2019IC Interpretation 23:UncertaintyoverIncomeTax

Treatments 1 January 2019Amendments to MFRS 2: Share-Based Payment 1 January 2020Amendments to MFRS 3: Business Combinations 1 January 2020Amendments to MFRS 3: DefinitionofaBusiness 1 January 2020Amendments to MFRS 6: ExplorationforandEvaluationof

Mineral Resources 1 January 2020Amendments to MFRS 14: Regulatory Deferral Accounts 1 January 2020Amendments to MFRS 101: Presentation of Financial

Statements 1 January 2020Amendments to MFRS 108: Accounting Policies, Changes

in Accounting Estimates and Errors 1 January 2020Amendments to MFRS 101 & MFRS 108: Definitionof

Material 1 January 2020Amendments to MFRS 134: Interim Financial Reporting 1 January 2020



b. standards, amendments and interpretations issued but not yet effective (contd.)

description


after

Amendment to MFRS 137: Provisions, Contingent Liabilities and Contingent Assets 1 January 2020

Amendment to MFRS 138: Intangible Assets 1 January 2020Amendments to IC Interpretation 12: Service Concession

Arrangements 1 January 2020Amendments to IC Interpretation 19: Extinguishing

Financial Liabilities with Equity Instruments 1 January 2020Amendment to IC Interpretation 20: Stripping Costs in the

Production Phase of a Surface Mine 1 January 2020Amendments to IC Interpretation 22: Foreign Currency

Transactions and Advance Consideration 1 January 2020Amendments to IC Interpretation 132: Intangible Assets -

Web Site Costs 1 January 2020MFRS 17: Insurance Contracts 1 January 2021Amendments to MFRS 10 and MFRS 128: Sale or

Contribution of Assets between an Investor and its Associate or Joint Venture

To be announcedby MASB

The Fund will adopt the above pronouncements when they become effective in the respective financial periods. These pronouncements are not expected to have any significant impact to the financial statements of the Fund upon their initial application.

c. financial instruments

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 instruments.

i. initial recognition and subsequent measurement

The classification of financial assets at initial recognition depends on their contractual terms and the business model for managing the instruments, as described in Note 3(d)(i). Financial assets are initially measured at their fair value, except in the case of financial assets recorded at FVTPL, transaction costs are added to, or subtracted from, this amount. Trade receivables are measured at the transaction price. When the fair value of financial instruments at initial recognition differs from the transaction price, the Fund accounts for the Day 1 profit or loss, as described below.



c. financial instruments (contd.)

ii. Measurement categories of financial assets and liabilities

From 1 September 2018, the Fund classifies all of its financial assets based on the business model for managing the assets and the asset’s contractual terms, measured at either:

• Amortised cost;• Fair value through other comprehensive income; and• Fair value through profit or loss.

The Fund may designate financial instruments at FVTPL, if so doing eliminates or significantly reduces measurement or recognition inconsistencies.

The Fund’s financial assets include cash and bank balances, short term deposits and other receivables. Prior to 1 September 2018, the Fund classified its financial assets as receivables (amortised cost), as explained in Note 3(d)(i).

Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability. Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities.

The Fund’s other financial liabilities include trade payables and other payables.

Other financial liabilities are recognised initially at fair value plus directly attributable transaction costs and subsequently measured at amortised cost using the effective interest rate. Gains or losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process.

d. financial assets and liabilities

i. due from banks, short term deposits, trade and other receivables at amortised cost

Prior to 1 September 2018, included in the financial assets are cash and bank balances, short term deposits and other receivables including receivables which are those non–derivative financial assets with fixed or determinable payments that were not quoted in an active market.

From 1 September 2018, the Fund only measures the amount due from banks and other receivables at amortised cost if both of the following conditions are met:

• The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (“SPPI”) on the principal amount outstanding.

The details of these conditions are outlined below.

Business model assessment

The Fund determines its business model at the level that best reflects how it manages groups of financial assets to achieve its business objective.



d. financial assets and liabilities (contd.)

i. due from banks, short term deposits, trade and other receivables at amortised cost (contd.)

Business model assessment (contd.)

The Fund’s business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated portfolios and is based on observable factors such as:

• How the performance of the business model and the financial assets held within that business model are evaluated and reported to the entity’s key management personnel;

• The risks that affect the performance of the business model (and the financial assets held within that business model) and, in particular, the way those risks are managed;

• How managers of the business are compensated (for example, whether the compensation is based on the fair value of the assets managed or on the contractual cash flows collected); and

• The expected frequency, value and timing of sales are also important aspects of the Fund’s assessment.

The business model assessment is based on reasonably expected scenarios without taking ‘worst case’ or ‘stress case’ scenarios into account. If cash flows after initial recognition are realised in a way that is different from the Fund’s original expectations, the Fund does not change the classification of the remaining financial assets held in that business model, but incorporates such information when assessing newly originated or newly purchased financial assets going forward, unless it has been determined that there has been a change in the original business model.

the sPPi test

As a second step of its classification process the Fund assesses the contractual terms of financial assets to identify whether they meet the SPPI test.

‘Principal’ for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change over the life of the financial asset (for example, if there are repayments of principal or amortisation/accretion of the premium/discount).

The most significant elements of interest within a lending arrangement are typically the consideration for the time value of money and credit risk. To make the SPPI assessment, the Fund applies judgement and considers relevant factors such as the currency in which the financial asset is denominated, and the period for which the interest rate is set.

In contrast, contractual terms that introduce a more than de minimis exposure to risks or volatility in the contractual cash flows that are unrelated to a basic lending arrangement do not give rise to contractual cash flows that are solely payments of principal and interest on the amount outstanding. In such cases, the financial asset is required to be measured at FVTPL.



e. Reclassification of financial assets and liabilities

From 1 September 2018, the Fund has not reclassified its financial assets and financial liabilities subsequent to their initial recognition and upon adoption of MFRS 9.

f. Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when the rights to receive cash flows from the financial asset have expired. The Fund also derecognises the financial asset if it has both transferred the financial asset and the transfer qualifies for derecognition.

The Fund has transferred the financial asset if, and only if, either:

• The Fund has transferred its contractual rights to receive cash flows from the financial asset; or

• It retains the rights to the cash flows, but has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass–through’ arrangement.

Pass-through arrangements are transactions whereby the Fund retains the contractual rights to receive the cash flows of a financial asset (the ‘original asset’), but assumes a contractual obligation to pay those cash flows to one or more entities (the ‘eventual recipients’), when all of the following three conditions are met:

• The Fund has no obligation to pay amounts to the eventual recipients unless it has collected equivalent amounts from the original asset, excluding short-term advances with the right to full recovery of the amount lent plus accrued interest at market rates;

• The Fund cannot sell or pledge the original asset other than as security to the eventual recipients; and

• The Fund has to remit any cash flows it collects on behalf of the eventual recipients without material delay. In addition, the Fund is not entitled to reinvest such cash flows, except for investments in cash or cash equivalents including interest earned, during the period between the collection date and the date of required remittance to the eventual recipients.

A transfer only qualifies for derecognition if either:

• The Fund has transferred substantially all the risks and rewards of the asset; or• The Fund has neither transferred nor retained substantially all the risks and

rewards of the asset, but has transferred control of the asset.

The Fund considers control to be transferred if and only if, the transferee has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without imposing additional restrictions on the transfer.

When the Fund has neither transferred nor retained substantially all the risks and rewards and has retained control of the asset, the asset continues to be recognised only to the extent of the Fund’s continuing involvement, in which case, the Fund also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Fund has retained.



f. Derecognition of financial assets (contd.)

A transfer only qualifies for derecognition if either:

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration the Fund could be required to pay.

If continuing involvement takes the form of a written or purchased option (or both) on the transferred asset, the continuing involvement is measured at the value the Fund would be required to pay upon repurchase. In the case of a written put option on an asset that is measured at fair value, the extent of the entity’s continuing involvement is limited to the lower of the fair value of the transferred asset and the option exercise price.

g. Impairment of financial assets (Policy applicable from 1 January 2018)

i. Overview of the expected credit loss (“ecl”) principles

As described in Note 3(a), the adoption of MFRS 9 has fundamentally changed the Fund’s receivables impairment method by replacing MFRS 139’s incurred loss approach with a forward-looking ECL approach.

ii. Write-offs

The Fund’s accounting policy under MFRS 9 remains the same as it was under MFRS 139. Financial assets are written off either partially or in their entirety only when the Fund has stopped pursuing the recovery. If the amount to be written off is greater than the accumulated loss allowance, the difference is first treated as an addition to the allowance that is then applied against the gross carrying amount. Any subsequent recoveries are credited to credit loss expense.

h. income

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.

Interest income which includes the accretion of discount and amortisation of premium on fixed income securities, is recognised using the effective interest method.

Dividend income is recognised on declared basis, when the right to receive the dividend is established.

The realised gain or loss on sale of investments is measured as the difference between the net disposal proceeds and the carrying amount of the investment.

i. cash and cash equivalents

For the purpose of the statement of cash flows, cash and cash equivalents include cash at bank and short term deposits with licensed financial institutions with insignificant risk of changes in value.



j. income tax

Income tax on the profit or loss for the financial year comprises current tax. Current tax is the expected amount of income taxes payable in respect of the taxable profit for the financial year.

As no temporary differences have been identified, no deferred tax has been recognised.

k. unrealised reserves

Unrealised reserves represent the net gain or loss arising from carrying investments at their fair values at reporting date. This reserve is not distributable.

l. unit holders’ contribution – nAV attributable to unit holders

The unit holders’ contribution to the Fund is classified as equity instruments.

Distribution equalisation represents the average amount of undistributed net income included in the creation or cancellation price of units. This amount is either refunded to unit holders by way of distribution and/or adjusted accordingly when units are released back to the Trustee.

m. functional and presentation currency

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 Ringgit Malaysia (“RM”), which is also the Fund’s functional currency.

n. distributions

Distributions are at the discretion of the Manager. A distribution to the Fund’s unit holders is accounted for as a deduction from retained earnings.

o. Significant accounting judgments and estimates

The preparation of financial statements requires the use of certain accounting estimates and exercise of judgment. Estimates and judgments are continually evaluated and are based on past experience, reasonable expectations of future events and other factors.

i. critical judgments made in applying accounting policies

There are no major judgments made by the Manager in applying the Fund’s accounting policies.

ii. Key sources of estimation uncertainty

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.


4. finAnciAl Assets At fVtPl

28.2.2019 28.2.2018rm rm

Financial assets held for trading, at FVTPL:Listed equity securities in Malaysia 8,107,774 10,092,095 Listed equity securities in Indonesia 5,498,791 6,137,097 Listed equity securities in Philippines 1,349,957 1,870,064 Listed equity securities in Singapore 1,778,307 7,530,225 Listed equity securities in Thailand 1,984,264 4,807,973 Listed collective investment schemes in Singapore 307,364 310,167 Listed warrants in Malaysia 20,537 - Listed warrants in Singapore 1,366 7,389

19,048,360 30,755,010

1.9.2018 to 28.2.2019

1.9.2017 to 28.2.2018

rm rm

Net (loss)/gain on financial assets at FVTPL comprised:Realised (loss)/gain on disposals (670,205) 209,596 Unrealised changes in fair values (321,657) 1,581,609

(991,862) 1,791,205

Details of financial assets at FVTPL as at 28 February 2019:

Quantity Aggregate

cost fair value Percentage

of nAVrm rm %

listed equity securities in malaysia

trading/servicesBermaz Auto Berhad 338,000 672,077 736,840 3.1 MBM Resources Berhad 136,900 333,915 376,475 1.6 Mynews Holdings Berhad 201,800 153,227 272,430 1.2 Sapura Energy Berhad 1,740,000 498,466 539,400 2.3 Serba Dinamik Holdings

Berhad 65,000 243,761 256,100 1.1 Yinson Holdings Berhad 155,400 621,521 675,990 2.9

2,522,967 2,857,235 12.2


4. finAnciAl Assets At fVtPl (cOntd.)

Details of financial assets at FVTPL as at 28 February 2019: (contd.)

QuantityAggregate

cost fair valuePercentage

of nAVrm rm %

listed equity securities in malaysia (contd.)

industrial ProductsATA IMS Berhad (formerly

known as Denko Industrial Corporation Berhad) 157,000 283,403 270,040 1.1

Hibiscus Petroleum Berhad 119,000 120,562 120,190 0.5

Kossan Rubber Industries Berhad 174,100 753,109 675,508 2.9

Pentamaster Corporation Berhad 225,800 742,340 763,204 3.3

Rohas Tecnic Berhad 404,300 563,174 242,580 1.02,462,588 2,071,522 8.8

constructionsGabungan AQRS Berhad 527,100 564,207 574,539 2.4Kerjaya Prospek Group

Berhad 50,800 64,664 63,500 0.3MGB Berhad 488,600 511,452 354,235 1.5

1,140,323 992,274 4.2

technologyInari Amertron Berhad 313,800 610,076 489,528 2.1Mi Technovation Berhad 122,300 307,691 287,405 1.2

917,767 776,933 3.3

financeHong Leong Financial

Group Berhad 18,300 337,287 360,510 1.5RHB Bank Berhad 44,000 243,749 247,280 1.1

581,036 607,790 2.6




QuantityAggregate


of nAVrm rm %

listed equity securities in malaysia (contd.)

PropertiesLBS Bina Group Berhad -

ordinary shares 548,900 462,434 370,507 1.5LBS Bina Group Berhad -

preference shares 77,500 85,250 65,488 0.3547,684 435,995 1.8

consumer productCCK Consolidated

Holdings Berhad 151,800 92,993 94,875 0.4Power Root Berhad 187,000 286,482 271,150 1.2

379,475 366,025 1.6

total listed equity securities in malaysia 8,551,840 8,107,774 34.5

listed equity securities in indonesia

financePT Bank Central Asia Tbk 111,400 717,304 883,773 3.8Bank Cimb Niaga Tbk Pt 2,302,800 751,425 788,393 3.4PT Bank Negara

Indonesia (Persero) Tbk 319,000 691,995 807,631 3.4

2,160,724 2,479,797 10.6

consumer productsPT Ace Hardware

Indonesia Tbk 952,500 351,953 480,930 2.0PT Indofood Sukses

Makmur Tbk 276,000 621,716 561,792 2.4PT Ramayana Lestari

Sentosa Tbk 1,432,000 624,236 696,257 3.01,597,905 1,738,979 7.4




QuantityAggregate


of nAVrm rm %

listed equity securities in indonesia (contd.)

trading/servicesPT Telekomunikasi

Indonesia Persero Tbk 832,800 1,070,712 922,447 3.9

Industrial productsPT United Tractors Tbk 46,900 465,749 357,568 1.5

total listed equity securities in indonesia 5,295,090 5,498,791 23.4

listed equity securities in Philippines

PropertiesAyala Corporation 6,910 503,941 502,392 2.1 Ayala Land, Inc. 73,000 258,292 252,463 1.1

762,233 754,855 3.2

financeMetropolitan Bank & Trust

Co. 99,622 685,525 595,102 2.6

total listed equity securities in Philippines 1,447,758 1,349,957 5.8

listed equity securities in singapore

financeDBS Group Holdings

Limited 15,167 840,431 1,133,447 4.8

trading/servicesSingapore

Telecommunications Limited 58,300 642,337 529,695 2.3




Quantity Aggregate


of nAVrm rm %

listed equity securities in singapore (contd.)

PropertiesAspen Group Holdings

Limited 348,000 253,987 115,165 0.5

total listed equity securities in singapore 1,736,755 1,778,307 7.6

listed equity securities in thailand

consumer productsCP All Public Company

Limited 65,000 484,397 650,483 2.8

trading/servicesBangkok Dusit Medical

Services Public Company Limited 166,100 501,538 504,550 2.2

industrial productsAapico Hitech Public

Company Limited 150,400 464,131 468,474 2.0

infrastructureAdvanced Info Service

Public Company Limited 15,400 362,202 360,757 1.5

total listed equity securities in thailand 1,812,268 1,984,264 8.5




Quantity Aggregate


of nAVrm rm %

listed collective investment scheme in singapore

real estate investment trusts

AIMS APAC REIT MANAGEMENT LTD 73,500 305,207 307,364 1.3

total listed collective investment scheme in singapore 305,207 307,364 1.3

listed warrants in malaysia

N2N Connect Berhad-WB 83,825 - 20,537 0.1

total listed warrants in malaysia - 20,537 0.1

listed warrants in singapore

Duty Free International Limited 227,000 - 1,366 -

total listed warrants in singapore - 1,366 -

Total financial assets at fVtPl 19,148,918 19,048,360 81.2

unrealised loss on financial assets at fVtPl (100,558)


5. mAnAGer’s fee

The Manager’s fee is calculated on a daily basis at a rate not exceeding 2.00% per annum of the NAV of the Fund as provided under Division 13.1 of the Deed.

The Manager is currently charging Manager’s fee of 1.70% per annum of the NAV of the Fund (financial period from 1 September 2017 to 28 February 2018: 1.70% per annum).

6. trustee’s fee

The Trustee’s fee is calculated on a daily basis at a rate not exceeding 0.05% per annum of the NAV of the Fund as provided under Division 13.2 of the Deed.

The Trustee’s fee is currently calculated at 0.05% per annum of the NAV of the Fund (financial period from 1 September 2017 to 28 February 2018: 0.05% per annum).

7. incOme tAX

Income tax is calculated at the Malaysian statutory tax rate of 24% of the estimated assessable income for the current and previous financial periods.

Income tax is calculated on investment income less partial deduction for permitted expenses as provided for under Section 63B of the Income Tax Act, 1967.

A reconciliation of income tax expense applicable to net (losses)/income before tax at the statutory income tax rate to income tax expense at the effective income tax rate of the Fund is as follows:

1.9.2018 to 28.2.2019

1.9.2017 to 28.2.2018

rm rm

Net (loss)/income before tax (1,043,153) 1,524,288

Tax at Malaysian statutory tax rate of 24% (financial period from 1 September 2018 to 28 February 2019: 24%) (250,357) 365,829

Tax effect of:Income not subject to tax (51,228) (521,413)Loss not deductible for tax purposes 238,047 63,071 Expenses not deductible for tax purposes 9,247 18,587 Restriction on tax deductible expenses for unit trust fund 54,291 73,926

Income tax for the financial period - -

8. sHOrt term dePOsits

Short term deposits are held with licensed financial institutions in Malaysia at the prevailing interest rates.


9. AmOunt due frOm/tO licensed finAnciAl institutiOns

Amount due from/to licensed financial institutions relates to the amount to be received from or to licensed financial institutions arising from the sales and purchase of investments.

10. OtHer receiVABles

28.2.2019 28.2.2018rm rm

Dividend receivable 14,053 37,563 Interest receivable from short term deposits 46 -

14,099 37,563

11. Oter PAYABles

28.2.2019 28.2.2018rm rm

Accrual for auditors’ remuneration 4,488 4,488 Accrual for tax agent’s fees 5,994 5,494 Provision for printing and other expenses 40,038 26,263

50,520 36,245

12. net Asset VAlue AttriButABle tO unit HOlders

NAV attributed to unit holders is represented by:

note 28.2.2019 28.2.2018rm rm

Unit holders’ contribution (a) 23,623,589 30,215,291

Retained earnings:Realised reserves (41,913) 1,660,113 Unrealised reserves (111,096) 2,927,137

(153,009) 4,587,250

23,470,580 34,802,541


12. net Asset VAlue AttriButABle tO unit HOlders (cOntd.)

(a) unit holders’ contribution

1.9.2018 to 28.2.2019 1.9.2017 to 28.2.2018no. of units rm no. of units rm

At beginning of the financial period 28,091,351 28,772,417 31,720,396 32,834,168

Add: Creation of units 505,001 510,333 7,672,710 9,018,032

Less: Cancellation of units (5,544,891) (5,658,162) (9,842,913) (11,637,489)

Distribution equalisation - (999) - 580

At end of the financial period 23,051,461 23,623,589 29,550,193 30,215,291

The number of units legally or beneficially held by the Manager, Kenanga Investors Berhad and parties related to the Manager as at 28 February 2019 were nil (28 February 2018: nil).

13. net Asset VAlue Per unit

Financial assets at FVTPL have been valued at the bid prices at the close of business. In accordance with the Deed, the calculation of NAV attributable to unit holders per unit for the creation and cancellation of units is computed based on financial assets at FVTPL valued at the last done market price.

A reconciliation of NAV attributable to unit holders for creation/cancellation of units and the NAV attributable to unit holders per the financial statements is as follows:

28.2.2019 28.2.2018rm rm/unit rm rm/unit

NAV attributable to unit holders for creation/cancellation of units 23,578,826 1.0229 34,882,324 1.1804

Effects of adopting bid prices as fair value (108,246) (0.0047) (79,783) (0.0027)

NAV attributable to unit holders per statement of financial position 23,470,580 1.0182 34,802,541 1.1777

14. POrtfOliO turnOVer rAtiO (“Ptr”)

PTR for the financial period from 1 September 2018 to 28 February 2019 is 0.71 times (financial period from 1 September 2017 to 28 February 2018: 0.69 times).

PTR is the ratio of average sum of acquisitions and disposals of investments of the Fund for the financial period to the average NAV of the Fund, calculated on a daily basis.


15. mAnAGement eXPense rAtiO (“mer”)

MER for the financial period from 1 September 2018 to 28 February 2019 is 1.89% (financial period from 1 September 2017 to 28 February 2018: 1.97%).

MER is the ratio of total fees and recovered expenses of the Fund expressed as a percentage of the Fund’s average NAV, calculated on a daily basis.

16. trAnsActiOns WitH licensed finAnciAl institutiOns

transaction value

Percentage of total

Brokerage, stamp duty

and clearing fee

Percentage of total

rm % rm %

Affin Hwang Investment Bank Berhad 7,135,451 19.3 23,726 21.5

Instinet Pacific Limited 5,465,360 14.8 20,862 18.9Maybank Investment

Bank Berhad 4,024,043 10.9 11,766 10.7Kenanga Investment

Bank Berhad* 3,924,967 10.6 10,465 9.5UOB Kay Hian Pte Ltd 3,521,831 9.5 6,703 6.1UOB Kay Hian Securities

(M) Sdn Bhd 3,243,485 8.8 9,147 8.3CLSA Limited 2,556,431 6.9 8,478 7.7Public Investment Bank

Berhad 1,930,953 5.2 5,610 5.1CIMB Investment Bank

Berhad 1,364,418 3.7 3,896 3.5Credit Suisse Securities

(Malaysia) Sdn Bhd 854,908 2.3 2,368 2.1Others 2,940,144 8.0 7,282 6.6

36,961,991 100.0 110,303 100.0

* Kenanga Investment Bank Berhad is a related party of Kenanga Investors Berhad.

The above transactions values are in respect of listed equity securities, listed collective investment schemes and listed warrants.

The directors of the Manager are of the opinion that the transactions with the related party have been entered into in the normal course of business and have been established on terms and conditions that are not materially different from that obtainable in transactions with unrelated parties. The Manager is of the opinion that the above dealings have been transacted on an arm’s length basis.


17. seGmentAl rePOrtinG

a. Business segments

In accordance with the objective of the Fund, the Fund can invest 70% to 99% in listed investment securities. The following table provides an analysis of the Fund’s revenue, results, assets and liabilities by business segments:

listed investment

securitiesOther

investments totalrm rm rm

1.9.2018 to 28.2.2019revenueSegment (loss)/income (832,733) 19,535 (813,199)Unallocated income on foreign

currency exchange 34,786 (778,413)

Unallocated expenditures (264,740)Loss before tax (1,043,153)Income tax -Net loss after tax (1,043,153)

28.2.2019AssetsFinancial assets at FVTPL 19,048,360 -Short term deposits - 523,000 Other segment assets 716,278 46 Total segment assets 19,764,638 523,046 20,287,684 Unallocated assets 3,682,954

23,970,638

liabilitiesSegment liabilities 403,860 - 403,860 Unallocated liabilities 96,198

500,058


17. seGmentAl rePOrtinG (cOntd.)

a. Business segments (contd.)

listed investment

securitiesOther

investments totalrm rm rm

1.9.2017 to 28.2.2018revenueSegment income 2,154,970 17,584 2,172,554Unallocated loss on foreign

currency exchange (262,797)1,909,757

Unallocated expenditure (385,469)Income before tax 1,524,288Income tax -Net income after tax 1,524,288

28.2.2018AssetsFinancial assets at FVTPL 30,755,010 -Other segment assets 37,563 -Total segment assets 30,792,573 - 30,792,573Unallocated assets 4,617,220

35,409,793

liabilitiesSegment liabilities 569,722 - 569,722Unallocated liabilities 37,530

607,252



b. Geographical segments

The Fund seeks to achieve its investment objective by investing in a diversified portfolio of equities and equity related securities of companies in the member countries of Association of South East Asia Nation. The following table provide an analysis of the Fund’s revenue, results, assets and liabilities by geographical segments:

local investments

foreign investments total

rm rm rm

1.9.2018 to 28.2.2019revenueSegment (loss)/income (1,061,517) 248,318 (813,199)Unallocated income on foreign

currency exchange 34,786 (778,413)

Unallocated expenditure (264,740)Loss before tax (1,043,153)Income tax -Net loss after tax (1,043,153)

28.2.2019AssetsFinancial assets at FVTPL 8,128,311 10,920,049 Short term deposits 523,000 -Other segment assets 453,542 262,782 Total segment assets 9,104,853 11,182,831 20,287,684 Unallocated assets 3,682,954

23,970,638

liabilitiesSegment liabilities 307,221 96,639 403,860 Unallocated liabilities 96,198

500,058



b. Geographical segments (contd.)

local investments

foreign investments total

rm rm rm

1.9.2017 to 28.2.2018revenueSegment income 1,169,962 1,002,592 2,172,554 Unallocated loss on foreign

currency exchange (262,797) 1,909,757

Unallocated expenditure (385,469)Income before tax 1,524,288 Income tax - Net income after tax 1,524,288

28.2.2018AssetsFinancial assets at FVTPL 10,092,095 20,662,915 Other segment assets 11,163 26,400 Total segment assets 10,103,258 20,689,315 30,792,573 Unallocated assets 4,617,220

35,409,793

liabilitiesSegment liabilities 400,075 169,647 569,722 Unallocated liabilities 37,530

607,252


18. finAnciAl instruments

a. Classification of financial instruments

The Fund’s financial assets and financial liabilities are measured on an ongoing basis at either fair value or at amortised cost based on their respective classification. 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 financial liabilities of the Fund in the statement of financial position by the class of financial instruments to which they are assigned and therefore by the measurement basis.

financial assets at

fVtPl

financial assets at

amortised cost

Other financial liabilities total

rm rm rm rm

28.2.2019AssetsListed equity

securities 18,719,093 - - 18,719,093 Listed collective

investment schemes 307,364 - - 307,364

Listed warrants 21,903 - - 21,903 Short term deposits - 523,000 - 523,000 Amount due from

licensed financial institutions - 702,225 - 702,225

Other receivables - 14,099 - 14,099 Cash at bank - 3,682,954 - 3,682,954

19,048,360 4,922,278 - 23,970,638

liabilitiesAmount due to

Manager - - 44,755 44,755 Amount due to

Trustee - - 923 923 Amount due to

licensed financial institutions - - 403,860 403,860

- - 449,538 449,538


18. finAnciAl instruments (cOntd.)

a. Classification of financial instruments (contd.)

financial assets at

fVtPl

financial assets at

amortised cost

Other financial liabilities total

rm rm rm rm

28.2.2018AssetsListed equity



Amount due from Manager 7,389 - - 7,389

Amount due from Manager - 1,065,619 - 1,065,619

Other receivables - 37,563 - 37,563Cash at bank - 3,551,601 - 3,551,601

30,755,010 4,654,783 - 35,409,793

liabilitiesAmount due to

Trustee - - 1,285 1,285Amount due to

licensed financial institutions - - 569,722 569,722

- - 571,007 571,007

b. financial instruments that are carried at fair value

The Fund’s financial assets at FVTPL are carried at fair value. The fair values of these financial assets were determined using prices in active markets.

The following table shows the fair value measurements by level of the fair value measurement hierarchy:

level 1 level 2 level 3 totalrm rm rm rm

investments:28.2.2019Listed equity



Listed warrants 21,903 - - 21,903


18. finAnciAl instruments (cOntd.)

b. financial instruments that are carried at fair value (contd.)

level 1 level 2 level 3 totalrm rm rm rm

investments: (contd.)

28.2.2018Listed equity



Listed warrants 7,389 - - 7,389

Level 1: Listed prices in active marketLevel 2: Model with all significant inputs which are observable market dataLevel 3: Model with inputs not based on observable market data

The fair values of listed equity securities, listed collective investment schemes and listed warrants are determined by reference to Bursa Malaysia Securities Berhad’s and respective foreign stock exchanges of the respective countries’ bid prices at reporting date.

c. financial instruments not carried at fair value and which their carrying amounts are reasonable approximations of fair value

The carrying amounts of the Fund’s other financial assets and financial liabilities are not carried at fair value but approximate fair values due to the relatively short term maturity of these financial instruments.

19. cAPitAl mAnAGement

The capital of the Fund can vary depending on the demand for creation and cancellation of units to the Fund.

The Fund’s objectives for managing capital are:

a. To invest in investments meeting the description, risk exposure and expected return indicated in its prospectus;

b. To maintain sufficient liquidity to meet the expenses of the Fund, and to meet cancellation requests as they arise; and

c. To maintain sufficient fund size to make the operations of the Fund cost-efficient.

No changes were made to the capital management objectives, policies or processes during the current and previous financial periods.

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investor services centerToll Free Line: 1 800 88 3737Fax: +603 2172 3133Email: [email protected]

Head Office, Kuala LumpurLevel 14, Kenanga Tower, 237 Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia.Tel: 03-2172 3000 Fax: 03-2172 3080

kenanga asean tactical total return fund · 2019-04-23 · kenanga asean tactical total return fund...

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