FinEx Physically Backed Funds plc ANNUAL REPORT & fs.moex.com/emidocs/2015/01/30/926566_ENG_2014...

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Transcript of FinEx Physically Backed Funds plc ANNUAL REPORT & fs.moex.com/emidocs/2015/01/30/926566_ENG_2014...

  • FinEx Physically Backed Funds plc

    ANNUAL REPORT & AUDITED FINANCIAL STATEMENTS

    For the year ended 30 September 2014

  • FinEx Physically Backed Funds plc Annual Report and Audited Financial Statements

    For the year ended 30 September 2014

    1

    Contents

    Page

    Organisation 2

    Investment Managers Report 3

    Directors Report 4

    Report of the Custodian to the Shareholders

    8

    Report from the Depositary to the Shareholders 9

    Independent Auditors Report 10

    Statement of Comprehensive Income 11

    Statement of Financial Position 12

    Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares 13

    Statement of Cash Flows 14

    Notes to the Financial Statements 15

    Appendix I

    AIFM Remuneration Policy (Unaudited) 28

  • FinEx Physically Backed Funds plc Annual Report and Audited Financial Statements

    For the year ended 30 September 2014

    2

    Organisation

    Directors Derek Delaney (Ireland)* Simon Luhr (United Kingdom) Tom Murray (Ireland)* Jeremy OSullivan (Ireland)* *Independent Director Registered Office 2nd Floor Beaux Lane House Mercer Street Lower Dublin 2 Ireland Investment Manager and Promoter FinEx Capital Management LLP 4th Floor 39 Dover Street London W1S 4NN United Kingdom Distributor FinEx ETF Limited C/o Trident Trust Company (Cayman) Limited Fourth Floor, One Capital Place P.O. Box 847 Grand Cayman KY1-1103 Cayman Islands Custodian (effective to 21 July 2014) BNY Mellon Trust Company (Ireland) Limited Guild House Guild Street International Financial Services Centre Dublin 1 Ireland Depositary (effective from 22 July 2014) BNY Mellon Trust Company (Ireland) Limited Guild House Guild Street International Financial Services Centre Dublin 1 Ireland

    Sub-Custodian Barclays Bank plc 1 Churchill Place London E14 5HP

    Prime Broker Barclays Bank Plc 5 North Colonnade Canary Wharf London E14 4BB Administrator BNY Mellon Fund Services (Ireland) Limited Guild House Guild Street International Financial Services Centre Dublin 1 Ireland Secretary MFD Secretaries Limited 2nd Floor Beaux Lane House Mercer Street Lower Dublin 2 Ireland Independent Auditors PricewaterhouseCoopers (Chartered Accountants and Registered Auditors) One Spencer Dock North Wall Quay Dublin 1 Ireland Irish Legal Advisers Maples and Calder 75 St. Stephens Green Dublin 2 Ireland Irish Sponsoring Broker Maples and Calder 75 St. Stephens Green Dublin 2 Ireland Registrar Computershare Investor Services (Ireland) Limited Heron House Corrig Road Sandyford Industrial Estate Dublin 18 Ireland Registered Number : 510154

  • FinEx Physically Backed Funds plc Annual Report and Audited Financial Statements

    For the year ended 30 September 2014

    3

    Investment Managers Report FinEx Physically Held Gold ETF (the Fund) seeks to track the performance of the Gold LBMA London AM Fixing Price. The Index is an official benchmark of gold price determined by 5 member firms on 10:30am London time each day. For the period between 1 October 2013 and 30 September 2014 the total return for the Fund as measured by the net asset value (NAV) was -9.81% for the USD share class. The index performance was -9.41%. The difference is due to the Funds Total Expense Ratio. After a year of declining Gold prices in 2013, the first 2 months of 2014 saw prices rebound. The upward trend was reversed mid-March, with the second half of March seeing a decent fall in the Gold price. Since April, Gold has traded with no real price trend an appreciating dollar has caused headwinds with the occasional Geopolitical fillip boosting the price of Gold only for the dollar headwinds to once again take control. September saw consistent downward pressure on the Gold price. FinEx Capital Management LLP Date: 1 October 2014

  • FinEx Physically Backed Funds plc Annual Report and Audited Financial Statements

    For the year ended 30 September 2014

    4

    Directors' Report

    The Directors present herewith the Annual Report and Audited Financial Statements of FinEx Physically Backed Funds plc (the Company) for the year ended 30 September 2014.

    Statement of Directors' Responsibilities

    The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and comply with the Irish Companies Acts, 1963 to 2013 (the Companies Acts) and the Central Bank of Irelands Alternative Investment Fund Rule Book.

    Irish company law requires the Directors to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the Company and of its profit or loss for that year.

    In preparing the financial statements, the Directors are required to:

    select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company

    will continue in business.

    The Directors confirm that they have complied with the above requirements in preparing the financial statements.

    The Directors are responsible for keeping proper books of accounts that disclose, with reasonable accuracy at any time, the financial position of the Company and enable them to ensure that its financial statements comply with the Companies Acts.

    The Directors are also responsible for safeguarding the assets of the Company and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

    In fulfilment of these responsibilities BNY Mellon Fund Services (Ireland) Limited has been appointed for the purpose of maintaining proper books of accounts and BNY Mellon Trust Company (Ireland) Limited has been appointed for the purpose of safeguarding the assets of the Company. The books of account are located at the offices of the Administrator at Guild House, Guild Street, International Financial Services Centre, Dublin 1, Ireland.

    The Directors are also responsible for preparing a Directors' Report that complies with the requirements of the Companies Acts.

    The financial statements are published at www.finexetf.com. The Directors together with the Investment Manager are responsible for the maintenance and integrity of the website as far as it relates to FinEx Funds. The work carried out by the auditors does not involve consideration of the maintenance and integrity of the website and accordingly, the auditors accept no responsibility for any changes that have occurred to the financial statements presented on the website. Legislation in the Republic of Ireland governing the presentation and dissemination of the financial statements may differ from legislation in other jurisdictions.

    Corporate Governance Statement

    The Company is subject to corporate governance practices imposed by:

    (i) The Irish Companies Acts, 1963 to 2013, which are available for inspection at the registered office of the Company, and may also be obtained at http://www.irishstatutebook.ie/home.html;

    (ii) The Articles of Association of the Company which are available for inspection at the registered office of the Company at 2nd Floor, Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland and at the Companies Registration Office in Ireland;

    (iii) The Central Bank in their Alternative Investment Fund Rule Book and Guidance Notes which can be obtained from the Central Banks website at http://www.centralbank.ie/regulation/industry-sectors/funds/Pages/default.aspx. and

    (iv) The Irish Stock Exchange (ISE) through the ISE Code of Listing Requirements and Procedures which can be obtained from the ISEs website at www.ise.ie.

  • FinEx Physically Backed Funds plc Annual Report and Audited Financial Statements

    For the year ended 30 September 2014

    5

    Directors' Report (continued) Internal Control and Risk Management Systems The Directors are responsible for establishing and maintaining adequate internal control and risk management systems of the Company in relation to the financial reporting process. Such systems are designed to manage rather than eliminate the risk of error or fraud in achieving the Companys financial reporting objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Directors have put procedures in place to ensure all relevant accounting records are properly maintained and are readily available, including production of annual and half-yearly financial statements. The annual and half-yearly financial statements of the Company are required to be approved by the Board of Directors of the Company and filed with the Central Bank of Ireland and the Irish Stock Exchange. The statutory financial statements are required to be audited by independent auditors who report annually to the Board on their findings. Operation of the Shareholder Meeting, the key powers of the Shareholder Meeting, Shareholder Rights and the Exercise of Such Rights The annual general meeting of the Company is held in Ireland. Notice convening the annual general meeting in each year at which the audited financial statements of the Company will be presented (together with the Directors and Auditors reports) will be sent to the shareholders at their registered address. The convening and conduct of shareholder meetings are governed by the Articles of Association of the Company and the Companies Acts. Although the Directors may convene an extraordinary general meeting of the Company at any time, the Di