Annual Report for AmPRS-Dynamic Sukuk · AmPRS – Dynamic Sukuk TRUST DIRECTORY PRS Provider...

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


Zainal Abidin Bin Mohd Kassim

Goh Wee Peng

Audit Committee

Sum Leng Kuang

Tai Terk Lin


Trustee

Deutsche Trustees Malaysia Berhad

Auditors and Reporting Accountants

Ernst & Young

Taxation Adviser

Deloitte Tax Services Sdn Bhd


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


23 October 2018

Independent auditors’ report to the members of


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


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


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


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


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


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


13


STATEMENT OF CHANGES IN EQUITY


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


14


STATEMENT OF CASH FLOWS


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


15


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


STATEMENT BY THE PROVIDER


23 October 2018

GOH WEE PENG

For and on behalf of the Provider


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


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)

Annual Report for AmPRS-Dynamic Sukuk · AmPRS – Dynamic Sukuk TRUST DIRECTORY PRS Provider...

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