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TRANSCRIPT
Annual Report for
31 August 2018
AmPRS-Dynamic Sukuk
AmPRS – Dynamic Sukuk
TRUST DIRECTORY
PRS Provider
AmFunds Management Berhad
9th
& 10th
Floor, Bangunan AmBank Group
55 Jalan Raja Chulan
50200 Kuala Lumpur
Board of Directors
Dato’ Mustafa Bin Mohd Nor
Tai Terk Lin
Sum Leng Kuang
Seohan Soo
Goh Wee Peng
Investment Committee
Sum Leng Kuang
Tai Terk Lin
Dato’ Mustafa Bin Mohd Nor
Zainal Abidin Bin Mohd Kassim
Goh Wee Peng
Audit Committee
Sum Leng Kuang
Tai Terk Lin
Dato’ Mustafa Bin Mohd Nor
Trustee
Deutsche Trustees Malaysia Berhad
Auditors and Reporting Accountants
Ernst & Young
Taxation Adviser
Deloitte Tax Services Sdn Bhd
AmPRS – Dynamic Sukuk
CONTENTS
1 PRS Provider’s Report
9 Independent Auditor’s Report to the Members
12 Statement of Financial Position
13 Statement of Comprehensive Income
14 Statement of Changes in Equity
15 Statement of Cash Flows
16 Notes to the Financial Statements
32 Statement by the PRS Provider
33 Scheme Trustee’s Report
34 Report of the Shariah Adviser to the Members
35 Directory
1
PRS PROVIDER’S REPORT
Dear Members,
We are pleased to present you the PRS Provider’s report and the audited accounts of AmPRS –
Dynamic Sukuk (“Fund”) for the financial year ended 31 August 2018.
Salient Information of the Fund
Name AmPRS – Dynamic* Sukuk (“Fund”)
*The word “Dynamic” in this context refers to the Target Fund’s investment
strategy which is active management, not buy-and-hold strategy.
Category/Type
Feeder Fund (Sukuk)
Objective The Fund aims to provide capital appreciation by investing in the AmDynamic
Sukuk.
Performance
Benchmark
BPAM Corporates Sukuk Index, which is also the performance benchmark of the
Target Fund.
(obtainable from: www.aminvest.com)
Note: The performance benchmark has been changed from Bloomberg AIBIM
Bursa Malaysia Sovereign Shariah Index (BMSSI) because BMSSI has been
discontinued by Bloomberg effective 25 July 2015.
Income
Distribution
Policy
Subject to availability of income, distribution (if any) is incidental.
Note: Income distribution (if any) will be in the form of units.
Breakdown of
Unit Holdings
by Size
For the financial year under review, the size of the Fund for Class D stood at
335,403 units and for Class I stood at 553,028 units.
Class D
Size of holding As at 31 August 2018 As at 31 August 2017
No of
units held
Number of
members
No of
units held
Number of
members
5,000 and below 57,541 23 29,890 17
5,001-10,000 127,841 21 120,919 21
10,001-50,000 150,021 11 92,910 7
50,001-500,000 - - - -
500,001 and above - - - -
(Forward)
2
Class I
Size of holding As at 31 August 2018 As at 31 August 2017
No of
units held
Number of
members
No of
units held
Number of
members
5,000 and below 42,444 20 42,730 21
5,001-10,000 107,700 17 97,458 16
10,001-50,000 93,063 7 115,098 8
50,001-500,000 309,821 2 260,752 2
500,001 and above - - - -
Fund Performance Data
Portfolio
Composition
Details of portfolio composition of the Fund for the financial years as at 31 August
are as follows:
FY
2018
%
FY
2017
%
FY
2016
%
Collective investment scheme 95.36 95.40 95.02
Cash and others 4.64 4.60 4.98
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 August are as
follows:
FY
2018
FY
2017
FY
2016
Net asset value (RM)*
- Class D 207,625 143,975 91,307
- Class I 342,328 304,834 226,702
Units in circulation*
- Class D 335,403 243,719 158,176
- Class I 553,028 516,038 392,746
Net asset value per unit (RM)*
- Class D 0.6190 0.5907 0.5772
- Class I 0.6190 0.5907 0.5772
Highest net asset value per unit
(RM)*
- Class D 0.6190 0.5907 0.5772
- Class I 0.6190 0.5907 0.5772
Lowest net asset value per unit
(RM)*
- Class D 0.5907 0.5699 0.5374
- Class I 0.5907 0.5698 0.5373
(Forward)
3
FY
2018
FY
2017
FY
2016
Benchmark performance (%)
- Class D 5.23 3.67 8.39
- Class I 5.23 3.67 8.39
Total return (%)(1)
- Class D 4.79 2.34 7.41
- Class I 4.79 2.34 7.43
- Capital growth (%)
- Class D 4.79 2.34 7.41
- Class I 4.79 2.34 7.43
- Income distribution (%) - - -
Gross distribution (sen per unit) - - -
Net distribution (sen per unit) - - -
Management expense ratio (%)(2)
0.03 0.01 0.09
Portfolio turnover ratio (times)(3)
0.13 0.15 0.68
* 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 increased by 0.02% as compared to 0.01% per annum
for the financial year ended 31 August 2017 mainly due to increase 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
decreased by 0.02 times (13.3%) as compared to 0.15 times for the financial
year ended 31 August 2017 mainly due to increase in average fund size.
Average Total Return (as at 31 August 2018)
AmPRS-Dynamic
Sukuk
%
BMSSI/
BPAMCSI
Index(b)
%
One year
- Class D 4.79 5.23
- Class I 4.79 5.23
Three years
- Class D 4.82 5.74
- Class I 4.83 5.74
Since launch (25 November 2013)
- Class D 4.58 3.80
- Class I 4.58 3.80
4
Annual Total Return
Financial Year/Period Ended
(31 August)
AmPRS-Dynamic
Sukuk
%
BMSSI/
BPAMCSI (b)
%
2018
- Class D 4.79 5.23
- Class I 4.79 5.23
2017
- Class D 2.34 3.67
- Class I 2.34 3.67
2016
- Class D 7.41 8.39
- Class I 7.43 8.39
2015
- Class D 2.36 -0.25
- Class I 2.36 -0.25
2014(c)
- Class D 5.00 1.26
- Class I 4.98 1.26
(a) Source: Novagni Analytics and Advisory Sdn Bhd.
(b) Until 25 July 2015-
− Bloomberg AIBIM Bursa Malaysia Sovereign Shariah Index (BMSSI).
Effective from 27 July 2015 onwards-
−BPAM Corporates Sukuk Index
(c) Total actual return for the period from 25 November 2013 (date of launch) to
31 August 2014.
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
Class D
For the financial year under review, the Fund registered a return of 4.79% which
was entirely capital growth in nature.
Thus, the Fund’s return of 4.79% has underperformed the benchmark’s return of
5.23% by 0.44%.
As compared with the financial year ended 31 August 2017, the net asset value
(“NAV”) per unit of the Fund increased by 4.79% from RM0.5907 to RM0.6190,
while units in circulation increased by 37.62% from 243,719 units to 335,403
units.
Class I
For the financial year under review, the Fund registered a return of 4.79% which
was entirely capital growth in nature.
5
Thus, the Fund’s return of 4.79% has underperformed the benchmark’s return of
5.23% by 0.44%.
As compared with the financial year ended 31 August 2017, the net asset value
(“NAV”) per unit of the Fund increased by 4.79% from RM0.5907 to RM0.6190,
while units in circulation increased by 7.17% from 516,038 units to 553,028 units.
The line chart below shows comparison between the annual performances of
AmPRS – Dynamic Sukuk Fund for Class D and Class I and its benchmark,
BMSSI/BPAMCSI, for the financial period/years ended 31 August.
Note: Past performance is not necessarily indicative of future performance
and that unit prices and investment returns may go down, as well as up.
Has the Fund
achieved its
objective?
The Fund has achieved its objetive to provide capital appreciation by investing in
the AmDynamic Sukuk.
Strategies and
Policies
Employed
For the financial year under review, to achieve the investment objective, the Fund
will undertake active management to enhance and optimize returns from investing
in sovereign, quasi-sovereign and corporate Sukuk either directly or via CIS.
There is no minimum rating for a sukuk purchased or held by the Fund. This is to
enable the investment manager of the Fund to take a relatively high level of
calculated credit risk for the Fund, justified by the relatively high level of expected
return that could be generated by the Fund in return for taking the higher level of
credit risk. In managing the Fund, the investment manager may opt to invest in the
investments either directly or via collective investment schemes.
In managing the Fund, the investment manager of the Fund employs active tactical
duration management; yield curve positioning and credit spread arbitrage. Credit
spread arbitrage and yield curve positioning is part of relative value approach that
involves analysis of general economic and market conditions and the use of
6
models to analyze and compare expected returns as well as the assumed risks. The
investment manager will focus on sukuk that would deliver better returns to the
Fund for a given level of risk. In addition, the investment manager may also
consider sukuk with favourable or improving credit outlook that provide the
potential for capital appreciation for these investments. The Fund may invest in
sukuk of varying maturities. The Fund’s investment maturity profile is subject to
active tactical duration management in view of the interest rate scenario without
any portfolio maturity limitation.
The Fund can invest in Malaysia and to a lesser extent, in other countries globally
where the regulatory authority is a member of the International Organization of
Securities Commissions (“IOSCO”).
Portfolio
Structure
This table below is the asset allocation of the Fund for the financial years under
review.
As at
31-8-2018
%
As at
31-8-2017
%
Changes
%
Collective investment scheme 95.36 95.40 -0.04
Cash and others 4.64 4.60 0.04
Total 100.00 100.00
For the financial year under review, the Fund has invested 95.36% of its NAV in
collective investment scheme and the balance of 4.64% in cash and other net
current assets.
Cross Trades There are no cross trades for the Fund during this financial year under review.
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 members during the
financial year under review.
Note: The Manager has appointed Deutsche Trustees Malaysia Berhad (“DTMB”) to
carry out the fund accounting and valuation services for all funds effective 20th June
2018.
Rebates
and Soft
Commission
It is our policy to pay all rebates to the Fund. Soft commissions received from
brokers/dealers are retained by the PRS Provider only if the goods and services
provided are of demonstrable benefit to members of the Fund.
During the financial year under review, the PRS Provider 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 PRS
Provider are deem to be beneficial to the members of the Fund.
7
Market
Review
MGS yields rose during the financial year with the benchmark 10-year yield rising
from 15 bps from 3.90% to 4.05%.
The most significant event of the year came in May 2018 where the Pakatan
Harapan coalition had a largely unexpected win in the country’s 14th
General
Election (GE14) and successfully took over the government from the Barisan
Nasional coalition in an orderly and peaceful manner. In line with its election
manifesto the new government abolished the Goods & Serviced Tax (GST) whilst
planning to reinstate the Sales and Service Tax (SST). The abolishment of GST is
expected to reduce government revenue by MYR 40m and the new government
plans to cover this shortfall by a combination of expenditure cuts and SST. Bond
market reaction to the new government was muted as yields mostly traded with
strong support seen from local players.
GDP grew at a brisk 5.9% YoY in 2017 and economic growth continued to be
strong in 1Q 2018, growing 5.4% YoY. However 2Q 2018 GDP growth fell to
4.5% YoY as a result of supply disruptions. Inflation was elevated in 2017 with
the CPI increasing 3.5% YoY but since the start of the year inflation has
moderated and July CPI growth was muted at 0.9% YoY. July’s low inflation was
driven by the reduction in prices of big ticket items following the zero rating of
GST by the new Pakatan government.
With economic data showing the economy on a steady growth path and inflation
still at elevated levels in 2017, BNM raised its policy rate by 25 basis points
during its Monetary Policy Committee (MPC) held on 25 January 2018. The rate
hike raised the Overnight Policy Rate (OPR) to 3.25% – the first increase since
July 2014.
In its statement following the rate hike BNM stated that the OPR hike was not
monetary tightening but rather normalisation of the degree of monetary
accommodation. It further added that the MPC wants to pre-emptively ensure that
the policy stance is appropriate, to prevent a build-up of risks that could arise from
interest rates being too low for too long.
Market
Outlook
We witnessed the return of foreign fund flows into our govvies market in August.
Together with strong support from local institutional investors including banks,
pension funds and life insurance companies, the local govvies market
strengthened. The outperformance in the govvies market was also in line with the
bull-flattening of the US Treasury curve in the month of August. Market
interpreted Jerome Powell’s statement at the Jackson Hole meeting as dovish,
rendering support for the US Treasuries.
With the cancellation/deferment of high profile government projects such as the
HSL, ECRL and MRT3, the market now expects less primary government
guaranteed issuances as well as corporate bonds going forward. This has resulted
in strong support for the local corporate bond market, especially in the belly to
long-end of the curve.
8
Looking ahead, trade dispute and the USD’s strength may cause headwinds in EM
markets. Such risk-averse sentiment would be a dampener for the MYR. Besides,
traders/investors would likely remain on the sidelines while waiting for cues from
the upcoming MPC on 5 September. We opine that BNM is likely to keep the
OPR unchanged at 3.25% for the rest of the year.
Additional
Information
The following information has been updated:
1. Raja Maimunah Binti Raja Abdul Aziz has resigned from her position as a
Non-Independent Non-Executive Director for AmFunds Management Berhad
with effect from 1st July 2018.
2. Seohan Soo has been appointed as a Non-Independent Non-Executive Director
for AmFunds Management Berhad with effect from 1st August 2018.
Kuala Lumpur, Malaysia
AmFunds Management Berhad
23 October 2018
Independent auditors’ report to the members of
AmPRS – Dynamic Sukuk
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 AmPRS – Dynamic Sukuk (“the Fund”), which
comprise the statement of financial position as at 31 August 2018, and the statement of
comprehensive income, statement of changes in equity and statement of cash flows for the year
ended, and notes to the financial statements, including a summary of significant accounting
policies, as set out on pages 12 to 31.
In our opinion, the accompanying financial statements give a true and fair view of the financial
position of the Fund as at 31 August 2018, and of its financial performance and 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.
Our opinion on the financial statements of the Fund does not cover the other information and we
do not and we will 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 identified above 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.
The Provider is responsible for the other information. The other information comprises the Annual
Report, but does not include the financial statements of the Fund and our auditors’ report thereon.
The Annual report is expected to be made available to us after the date of this auditors’ report.
9
Independent auditors’ report to the members of
AmPRS – Dynamic Sukuk (cont’d.)
Responsibilities of the Provider and the Trustees for the financial statements
Auditor’s responsibilities for the audit of the 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.
The Provider 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 Provider is also responsible for such internal control as the
Provider 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 Provider 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 Provider 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 Provider maintains proper accounting and other
records as are necessary to enable true and fair presentation of these financial statements.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we
are required to communicate the matter to the Provider and Trustee of the Fund and take
appropriate action to seek to have the uncorrected material misstatement appropriately brought to
the attention of users for whom the auditors’ report is prepared.
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.
10
Independent auditors’ report to the members of
AmPRS – Dynamic Sukuk (cont’d.)
Other matters
Ernst & Young Wan Daneena Liza Bt Wan Abdul Rahman
AF: 0039 No. 02978/03/2020 J
Chartered Accountants Chartered Accountant
Kuala Lumpur, Malaysia
23 October 2018
We communicate with the Provider 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.
This report is made solely to the members 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.
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.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Provider.
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.
Conclude on the appropriateness of the Provider’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.
11
AmPRS – Dynamic Sukuk
STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2018
2018 2017
Note RM RM
ASSETS
Shariah-compliant investment 4 524,408 428,169
Amount due from Provider 5 790 947
Cash at bank 24,755 19,883
TOTAL ASSETS 549,953 448,999
LIABILITY
Sundry payables - 190
TOTAL LIABILITY - 190
EQUITY
Members’ capital 11(a)(b) 496,400 418,844
Retained earnings 11(c)(d) 53,553 29,965
TOTAL EQUITY 11 549,953 448,809
TOTAL EQUITY AND LIABILITY 549,953 448,999
NET ASSETS ATTRIBUTABLE TO MEMBERS
− CLASS D 207,625 143,975
− CLASS I 342,328 304,834
549,953 448,809
UNITS IN CIRCULATION
− CLASS D 11(a) 335,403 243,719
− CLASS I 11(b) 553,028 516,038
NET ASSET VALUE PER UNIT
− CLASS D 61.90 sen 59.07 sen
− CLASS I 61.90 sen 59.07 sen
The accompanying notes form an integral part of the financial statements.
12
AmPRS – Dynamic Sukuk
STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2018
2018 2017
Note RM RM
SHARIAH-COMPLIANT INVESTMENT
INCOME
Other income - exit penalty 11(b) 510 54
Net gain from Shariah-compliant investment:
− Financial assets at fair value through profit or
loss (“FVTPL”) 10 23,249 9,787
Gross Income 23,759 9,841
EXPENDITURE
Management fee 5 - -
Trustee’s fee 6 - -
Private Pension Administrator (“PPA”)
administrative fee 7 - -
Auditors’ remuneration 8 - -
Tax agent’s fee 9 - -
Other expenses (171) (58)
Total Expenditure (171) (58)
NET INCOME BEFORE TAX 23,588 9,783
LESS: INCOME TAX 13 - -
NET INCOME AFTER TAX 23,588 9,783
OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
FINANCIAL YEAR 23,588 9,783
Total comprehensive income comprises the following:
Realised income/(loss) 2,409 (4)
Unrealised gain 21,179 9,787
23,588 9,783
The accompanying notes form an integral part of the financial statements.
13
AmPRS – Dynamic Sukuk
STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2018
Members’ Members’
capital − capital − Retained Total
Class D Class I earnings equity
Note RM RM RM RM
At 1 September 2016 85,407 212,420 20,182 318,009
Total comprehensive income
for the financial year - - 9,783 9,783
Creation of units 11(a)(b) 55,661 71,666 - 127,327
Cancellation of units 11(a)(b) (6,310) - - (6,310)
Balance at 31 August 2017 134,758 284,086 29,965 448,809
At 1 September 2017 134,758 284,086 29,965 448,809
Total comprehensive income
for the financial year - - 23,588 23,588
Creation of units 11(a)(b) 74,122 53,755 - 127,877
Cancellation of units 11(a)(b) (19,006) (31,315) - (50,321)
Balance at 31 August 2018 189,874 306,526 53,553 549,953
The accompanying notes form an integral part of the financial statements.
14
AmPRS – Dynamic Sukuk
STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2018
2018 2017
RM RM
CASH FLOWS FROM OPERATING AND
INVESTING ACTIVITIES
Proceeds from sale of Shariah-compliant investment 29,810 -
Other income 510 54
Payments for other expenses (361) (45)
Purchase of Shariah-compliant investment (102,800) (116,200)
Net cash used in operating and investing activities (72,841) (116,191)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from creation of units 128,034 127,080
Payments for cancellation of units (50,321) (6,310)
Net cash generated from financing activities 77,713 120,770
NET INCREASE IN CASH AND CASH EQUIVALENTS 4,872 4,579
CASH AND CASH EQUIVALENTS AT
BEGINNING OF FINANCIAL YEAR 19,883 15,304
CASH AND CASH EQUIVALENTS AT
END OF FINANCIAL YEAR 24,755 19,883
Cash and cash equivalents comprise:
Cash at bank 24,755 19,883
The accompanying notes form an integral part of the financial statements.
15
AmPRS – Dynamic Sukuk
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
MFRS 9: Financial Instruments
MFRS 15: Revenue From Contracts With Customers
AmPRS – Dynamic Sukuk (“the Fund”) was established pursuant to a Deed dated 4 December
2012 as amended by Deeds Supplemental thereto (“the Deed”), between AmFunds Management
Berhad as the PRS Provider (“the Provider”), Deutsche Trustees Malaysia Berhad as the Trustee
and all members.
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 Fund aims to provide capital appreciation by investing in the AmDynamic Sukuk (“Target
Fund”), a fund managed by Provider. Being a feeder fund, a minimum of 95% of the Fund’s net
asset value will be invested in the Target Fund. As provided in the Deed, the “accrual period” or
financial year shall end on 31 August and the units in the Fund were first offered for sale on 25
November 2013.
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.
1 January 2018
financial periods
beginning on or after
1 January 2018
16
MFRS 9 Financial Instruments
MFRS 9 will fundamentally change the impairment methodology for financial assets. The standard
will replace MFRS 139’s incurred loss approach with a forward-looking expected credit loss
(“ECL”) approach. The impairment requirements based on ECL approach is applicable for all debt
financial assets not held at FVTPL, as well as loan commitments and financial guarantee contracts.
The allowance for expected losses shall be determined based on the expected credit losses
associated with the probability of default in the next twelve months unless there has been a
significant increase in credit risk since origination, in which case, the allowance is based on the
probability of default over the lifetime of the asset.
The Fund plans to adopt MFRS 9 on the required effective date and, as permitted by the new
standard, will not restate comparative information.
During the financial year, the Fund has performed a detailed impact assessment on all aspects of
MFRS 9. This assessment is based on currently available information and may be subject to
changes arising from further reasonable and supportable information being made available to the
Fund in financial year ending 31 August 2019 when the Fund will adopt MFRS 9.
Based on the detailed impact assessment, the adoption of MFRS 9 is not expected to result in any
significant impact as the investment in collective investment scheme, which is held for trading,
will continue to be measured at FVTPL and is not subjected to the impairment requirements of
MFRS 9.
In November 2014, MASB issued the final version of MFRS 9 Financial Instruments which
reflects all phases of the financial instruments project and replaces MFRS 139 Financial
Instruments: Recognition and Measurement and all previous versions of MFRS 9. The standard
introduces new requirements for classification and measurement, impairment and hedge
accounting. MFRS 9 is effective for annual periods beginning on or after 1 January 2018.
Retrospective application is required, but comparative information is not compulsory.
MFRS 9 will require all financial assets, other than equity instruments and derivatives, to be
classified on the basis of two criteria, namely the entity’s business model for managing the assets,
as well as the instruments’ contractual cash flow characteristics. Financial assets will be measured
at amortised cost if they are held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows that are solely payments of principal and interest.
If the financial assets are held within a business model whose objective is achieved by both selling
financial assets and collecting contractual cash flows that are solely payments of principal and
interest, the assets shall be measured at fair value through other comprehensive income
(“FVOCI”). Any financial assets that are not measured at amortised cost or FVOCI will be
measured at fair value through profit or loss (“FVTPL”). MFRS 9 will also allow entities to
continue to irrevocably designate instruments that qualify for amortised cost or FVOCI as FVTPL,
if doing so eliminates or significantly reduces a measurement or recognition inconsistency. Equity
instruments are normally measured at FVTPL; nevertheless entities are allowed to irrevocably
designate equity instruments that are not held for trading as FVOCI, with no subsequent
reclassification of gains or losses to the profit or loss.
17
3. SIGNIFICANT ACCOUNTING POLICIES
Income recognition
Distribution income is recognised when the Fund’s right to receive payment is established.
Income tax
Functional and presentation currency
Statement of cash flows
Distribution
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.
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.
The Fund adopts the direct method in the preparation of the statement of cash flows.
There will be no impact on the Fund’s accounting for financial liabilities, as the new requirements
only affect the accounting for financial liabilities that are designated at FVTPL and the Fund does
not have any such liabilities.
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.
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.
Cash equivalents are short-term, highly liquid Shariah-compliant investment that is readily
convertible to cash with insignificant risk of changes in value.
Distributions are at the discretion of the Fund. A distribution to the Fund’s members 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.
18
Members’ capital
Financial assets
(i) Financial assets at FVTPL
(ii) Receivables
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 Shariah-compliant collective investment scheme acquired principally for the purpose
of selling in the near term.
On disposal of Shariah-compliant 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
Shariah-compliant investment. The net realised gain or loss is recognised in profit or loss.
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.
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’. Distribution revenue element of such
instrument is recorded separately in ‘Distribution income’.
For Shariah-compliant investment in collective investment scheme, fair value is determined
based on the closing net asset value per unit of the 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.
The members’ capital of the Fund meets the definition of puttable instruments and is classified as
equity instruments under MFRS 132 Financial Instruments: Presentation (“MFRS 132”).
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 receivables.
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.
Financial assets with fixed or determinable payments that are not quoted in an active market
are classified as receivables.
Subsequent to initial recognition, receivables are measured at amortised cost using the
effective profit method. Gains and losses are recognised in profit or loss when the receivables
are derecognised or impaired, and through the amortisation process.
19
Impairment of financial assets
(i) Receivables carried at amortised cost
Financial liabilities
Classification of realised and unrealised gains and losses
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 profit rate. The impairment loss is
recognised in profit or loss.
Financial liabilities are classified according to the substance of the contractual arrangements
entered into and the definitions of a financial liability.
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.
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.
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.
The Fund assesses at each reporting date whether there is any objective evidence that a financial
asset is impaired.
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.
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 profit method.
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.
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 carrying amount of the financial asset is reduced through the use of an allowance account.
When a receivable becomes uncollectible, it is written off against the allowance account.
20
Significant accounting estimates and judgments
4. SHARIAH-COMPLIANT INVESTMENT
2018 2017
RM RM
Financial assets at FVTPL
At cost:
Collective investment scheme 475,537 400,477
At fair value:
Collective investment scheme 524,408 428,169
Details of Shariah-compliant investment as at 31 August 2018 are as follows:
Fair value
as a
percentage
Number of Fair Purchase of net
Collective investment scheme units value cost asset value
RM RM %
Collective investment scheme in Malaysia
AmDynamic Sukuk (“Target Fund”) 405,669 524,408 475,537 95.36
Excess of fair value over cost 48,871
The Fund classifies its Shariah-compliant investment as financial assets at FVTPL as the Fund
may sell its Shariah-compliant investment in the short-term for profit-taking or to meet members’
cancellation of units.
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 preparation of the Fund’s financial statements requires the Provider 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.
No major judgments have been made by the Provider 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.
21
2018 2017
% of % of
By assets allocation portfolio portfolio
Corporate sukuk 87.40 91.29
Cash and others 12.60 8.71
100.00 100.00
By assets allocation
Infrastructure and utilities 44.90 57.35
Diversified holdings 25.66 16.91
Plantation and agriculture 8.46 8.59
Financial services 8.38 8.44
Cash and others 12.60 8.71
100.00 100.00
5. AMOUNT DUE FROM PROVIDER
2018 2017
RM RM
Creation of units* 790 947
* The amount represents amount receivable from the Provider for units created.
As the Fund is investing in a Target Fund, management fee was charged as follows:
2018 2017
% p.a. % p.a.
Management fee charged by the Provider, on the net asset value
of the Target Fund (Note a) 1.00 1.00
Management fee chargeable by the Provider, on the
remaining net asset value of the Fund for both
Class D and Class I (Note b) 1.00 1.00
Note a) The Fund’s share of management fee to the Provider has been accounted for as part of net
unrealised changes in fair value of Shariah-compliant investment in collective investment
scheme.
The Target Fund’s Shariah-compliant investment objective and policy is aims to provide capital
appreciation by investing primarily in sukuk both locally and globally. As at the reporting date, the
Shariah-compliant investment portfolio of the Target Fund is made-up of the following:
22
Note b)
6. TRUSTEE’S FEE
7. PPA ADMINISTRATIVE FEE
8. AUDITORS’ REMUNERATION
9. TAX AGENT’S FEE
10. NET GAIN FROM SHARIAH-COMPLIANT INVESTMENT
2018 2017
RM RM
Net gain on financial assets at FVTPL comprised:
− Net realised gain on sale of Shariah-compliant
investment 2,070 -
− Net unrealised gain on changes in fair values of
Shariah-compliant investment 21,179 9,787
23,249 9,787
Trustee’s fee is at 0.04% (2017: 0.04%) per annum for both Class D and Class I on the net asset
value of the Fund. However, no Trustee fee was charged in the previous and current financial
years.
PPA administrative fee is at a rate of 0.04% (2017: 0.04%) per annum for both Class D and Class I
on the net asset value of the Fund, calculated on a daily basis. However, the fee amounting to
RM188 (2017: RM157) was borne by the Provider in the previous and current financial years.
Management fee of the Fund chargeable in the Statement of Comprehensive Income
relates to 1.00% on the remaining net asset value of the Fund. However, no management
fee was charged in the previous and current financial years.
The normal credit period in the previous and current financial years for creation of units is three
business days.
The auditor’s remuneration amounting to RM2,000 (2017: RM1,000) per annum was borne by the
Provider in the previous and current financial years.
Tax agent’s fee amounting to RM2,500 (2017: RM2,500) per annum was borne by the Provider in
the previous and current financial years.
23
11. TOTAL EQUITY
Total equity is represented by:
2018 2017
Note RM RM
Members’ capital - Class D (a) 189,874 134,758
Members’ capital - Class I (b) 306,526 284,086
Retained earnings
− Realised income (c) 4,682 2,273
− Unrealised gain (d) 48,871 27,692
549,953 448,809
(a) MEMBERS’ CAPITAL/UNITS IN CIRCULATION − CLASS D
Number of Number of
units RM units RM
At beginning of the
financial year 243,719 134,758 158,176 85,407
Creation during the
financial year 123,229 74,122 96,353 55,661
Cancellation during the
financial year (31,545) (19,006) (10,810) (6,310)
At end of the financial year 335,403 189,874 243,719 134,758
(b) MEMBERS’ CAPITAL/UNITS IN CIRCULATION − CLASS I
Number of Number of
units RM units RM
At beginning of the
financial year 516,038 284,086 392,746 212,420
Creation during the
financial year 89,349 53,755 123,292 71,666
Cancellation during the
financial year (52,359) (31,315) - -
At end of the financial year 553,028 306,526 516,038 284,086
2017
2018
2018
2017
The Provider charges an exit penalty fee of 1.00% (2017: 1.00%) for both Class D and Class I
on the net asset value per unit of the Fund during the financial year. The exit penalty shall be
placed back to the Fund.
24
(c)
2018 2017
RM RM
At beginning of the financial year 2,273 2,277
Total comprehensive income for the financial year 23,588 9,783
Net unrealised gain attributable to Shariah-
compliant investment held transferred to
unrealised reserve [Note 11(d)] (21,179) (9,787)
Net increase/(decrease) in realised reserve for the financial year 2,409 (4)
At end of the financial year 4,682 2,273
(d) UNREALISED – NON-DISTRIBUTABLE
2018 2017
RM RM
At beginning of the financial year 27,692 17,905
Net unrealised gain attributable to Shariah-compliant
investment held transferred from realised reserve [Note 11(c)] 21,179 9,787
At end of the financial year 48,871 27,692
12. UNITS HELD BY RELATED PARTIES
13. INCOME TAX
2018 2017
RM RM
Net income before tax 23,588 9,783
(Forward)
REALISED – DISTRIBUTABLE
Income tax payable is calculated on Shariah-compliant investment income less deduction for
permitted expenses as provided for under Section 63B of the Income Tax Act, 1967.
The Provider and parties related to the Provider did not hold any units in the Fund as at 31 August
2018 and 31 August 2017.
A reconciliation of income tax expense applicable to net 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:
Pursuant to Schedule 6 of the Income Tax Act, 1967, local profit income derived by the Fund is
exempted from tax.
25
2018 2017
RM RM
Taxation at Malaysian statutory rate of 24% (2017: 24%) 5,661 2,348
Tax effects of:
Income not subject to tax (5,702) (2,362)
Non-permitted expenses for tax purposes 41 14
Tax expense for the financial year - -
14. DISTRIBUTION
15. MANAGEMENT EXPENSE RATIO (“MER”)
2018 2017
% p.a. % p.a.
Fund’s other expenses 0.03 0.01
Total MER 0.03 0.01
16. PORTFOLIO TURNOVER RATIO (“PTR”)
17. SEGMENTAL REPORTING
As the Fund invests primarily in the collective investment scheme, it is not possible or meaningful
to classify its Shariah-compliant investment by separate business or geographical segments. A
summary of the investment portfolio of the collective investment scheme is disclosed in Note 4.
The PTR of the Fund, which is the ratio of average total acquisitions and disposals of Shariah-
compliant investment to the average net asset value of the Fund calculated on a daily basis, is 0.13
times (2017: 0.15 times).
The Fund’s MER is as follows:
No distribution was declared by the Fund for the financial years ended 31 August 2018 and 31
August 2017.
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.
26
18. TRANSACTIONS WITH THE PROVIDER
Provider
RM %
AmFunds Management Berhad 132,610 100.00
19. FINANCIAL INSTRUMENTS
(a) Classification of financial instruments
Financial
Financial liabilites at
assets at Receivables at amortised
FVTPL amortised cost cost Total
RM RM RM RM
2018
Assets
Shariah-compliant investment 524,408 - - 524,408
Amount due from Provider - 790 - 790
Cash at bank - 24,755 - 24,755
Total financial assets 524,408 25,545 - 549,953
(Forward)
Details of transactions with the Provider for the financial year ended 31 August 2018 are as
follows:
There was no transaction with financial institutions related to the Provider, during the financial
year.
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.
The above transactions were in respect of Shariah-compliant collective investment scheme.
Transactions in this investment do not involve any commission or brokerage.
Transaction value
The Provider and the Trustee are of the opinion that the above transactions have been entered in
the normal course of business and have been established under terms that are no less favourable
than those arranged with independent third parties.
27
Financial
Financial liabilites at
assets at Receivables at amortised
FVTPL amortised cost cost Total
RM RM RM RM
Assets
Shariah-compliant investment 428,169 - - 428,169
Amount due from Provider - 947 - 947
Cash at bank - 19,883 - 19,883
Total financial assets 428,169 20,830 - 448,999
Liability
Sundry payables - - 190 190
Total financial liability - - 190 190
2018 2017
RM RM
Net gain from financial assets at FVTPL 23,249 9,787
(b) Financial instrument that are carried at fair value
The Fund’s financial assets and liabilities at FVTPL are carried at fair value.
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
Level 2:
Level 3:
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:
other techniques for which all inputs which have a significant effect on the recorded
fair values are observable; either directly or indirectly; or
techniques which use inputs which have a significant effect on the recorded fair
value that are not based on observable market data.
Income, expense, gains
and losses
2017
28
Level 1 Level 2 Level 3 Total
RM RM RM RM
2018
Financial assets at FVTPL - 524,408 - 524,408
2017
Financial assets at FVTPL - 428,169 - 428,169
(c)
Amount due from Provider
Cash at bank
20. RISK MANAGEMENT POLICIES
Market risk
(i) Price risk
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 Shariah-compliant investment in
the Target Fund. In managing price risk, the Provider actively monitors the performance and
risk profile of the investment portfolio.
The Fund is exposed to a variety of risks that include market risk, credit risk, liquidity risk, single
issuer risk, regulatory risk, management risk and non-compliance/Shariah non-compliance risk.
Risk management is carried out by closely monitoring, measuring and mitigating the above said
risks, careful selection of Shariah-compliant investment coupled with stringent compliance to
Shariah-compliant investment restrictions as stipulated by the Capital Market and Services Act
2007, Securities Commission’s Guidelines on Private Retirement Schemes 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, profit rates, foreign exchange rates and commodity
prices.
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:
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.
Financial instruments that are not carried at fair value and whose carrying amounts are
reasonable approximation of fair value
29
Percentage movements in
price by: 2018 2017
RM RM
-5.00% (26,220) (21,408)
+5.00% 26,220 21,408
Credit risk
Cash at bank is held for liquidity purposes and is not exposed to significant credit risk.
Liquidity risk
The Fund's financial liabilities have contractual maturities of not more than six months.
Single issuer risk
Regulatory 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 distributions receivable. The
issuer of such instruments may not be able to fulfill the required profit payments or repay the
principal invested or amount owing. These risks may cause the Fund’s Shariah-compliant
investment to fluctuate in value.
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:
Sensitivity of the Fund’s NAV
Any changes in national policies and regulations may have effects on the capital market and the
net asset value of the Fund.
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, 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 of not more than 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 based by the Target Fund Manager on internal/external ratings.
The Fund maintains sufficient level of liquid assets, after consultation with the Trustee, to meet
anticipated payments and cancellations of units by members. 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.
30
Management risk
Non-compliance/Shariah non-compliance risk
21. CAPITAL MANAGEMENT
No changes were made in the objective, policies or processes during the financial years ended 31
August 2018 and 31 August 2017.
Poor management of the Fund may cause considerable losses to the Fund that in turn may affect
the net asset value of the Fund.
This is the risk of the Provider, the Trustee or the Fund not complying with internal policies, the
Deed of the Fund, securities law or guidelines issued by the regulators. In the case of an Islamic
Fund, this includes the risk of the Fund not conforming to Shariah Investment Guidelines. Non-
compliance risk may adversely affect the Shariah-compliant investment of the Fund when the
Fund is forced to rectify the non-compliance.
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 members by way of redemption of units.
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 primary objective of the Fund’s capital management is to ensure that it maximises members’
value by expanding its fund size to benefit from economies of scale and achieving growth in net
asset value from the performance of its Shariah-compliant investment.
31
AmPRS – Dynamic Sukuk
STATEMENT BY THE PROVIDER
Kuala Lumpur, Malaysia
23 October 2018
GOH WEE PENG
For and on behalf of the Provider
AmFunds Management Berhad
I, GOH WEE PENG, for and on behalf of the Provider, AmFunds Management Berhad, for
AmPRS – Dynamic Sukuk do hereby state that in the opinion of the Provider, 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 August 2018 and the comprehensive
income, the changes in equity and cash flows of the Fund for the financial year then ended.
32
TRUSTEEʼS REPORT
TO THE MEMBERS OF AMPRS - DYNAMIC SUKUK
(a)
(b)
(c)
For Deutsche Trustees Malaysia Berhad
Soon Lai Ching Ng Hon Leong
Senior Manager, Trustee Operations Head, Trustee Operations
Kuala Lumpur, Malaysia
8 October 2018
We have acted as Trustee for AmPRS - Dynamic Sukuk (the “Fund”) for the financial year ended 31
August 2018. To the best of our knowledge, for the financial year under review, AmFunds
Management Berhad (the “PRS Provider”) has operated and managed the Fund in accordance with
the following:-
limitations imposed on the investment powers of the PRS Provider under the Deed(s), the
Securities Commission’s Guidelines on Private Retirement Scheme, the Capital Markets and
Services Act 2007 and other applicable laws;
valuation and pricing for the Fund has been carried out in accordance with the Deed(s) of the
Fund and any regulatory requirements; and
creation and cancellation of units for the Fund are carried out in accordance with the Deed(s) of
the Fund and any regulatory requirements
33
34
REPORT OF THE SHARIAH ADVISER TO THE MEMBERS
of AmPRS – Dynamic Sukuk
For The Financial Year Ended 31 August 2018
We have acted as the Shariah Adviser of AmPRS – Dynamic Sukuk. Our responsibility is to ensure
that the procedures and processes employed by AmIslamic Funds Management Sdn Bhd and that the
provisions of the Deed in respect of the AmPRS dated 4 December 2012 and Supplemental Deed in
respect of the AmPRS dated 22 October 2013 are in accordance with Shariah principles.
In our opinion, AmIslamic Funds Management Sdn Bhd has managed and administered AmPRS –
Dynamic Sukuk in accordance with Shariah principles and complied with applicable guidelines,
ruling or decision issued by the Securities Commission (SC) pertaining to Shariah matters. We can
confirm that the investment portfolio of the abovementioned Fund comprises of securities which have
been classified as Shariah compliant by the Shariah Advisory (SAC) of the SC. For securities not
classified by the SAC of the SC, we have determined that such securities are in accordance with
Shariah principle and have complied with the applicable Shariah guidelines.
For Amanie Advisors Sdn Bhd
…………………………………………..
Datuk Dr Mohd Daud Bakar
Chief Executive Officer
23 October 2018
35
Distributors
For enquiries about this Scheme and any other funds offered by the PRS Provider, please call
2032 2888 between 8.45 a.m. to 5.45 p.m. (Monday-Thursday)
Friday 8.45 a.m. to 5.00 p.m.
DIRECTORY
Head Office AmFunds Management Berhad
9th & 10
th 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
For more details on the list of distributors, please contact the PRS Provider.
Semi-Annual Report28 February 2015
03 2132 2888 | aminvest.com. | [email protected]
AmFunds Management Berhad (154432-A)