Annual Report for AmPRS-Growth Fund · Growth Fund (“Fund”) for the financial year ended 31...

Annual Report for

31 August 2019

AmPRS-Growth Fund

AmPRS – Growth Fund

TRUST DIRECTORY

PRS Provider AmFunds Management Berhad

9th & 10th Floor, Bangunan AmBank Group 55 Jalan Raja Chulan 50200 Kuala Lumpur

Board of Directors Jeyaratnam A/L Tamotharam Pillai

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 and Risk Management 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


CONTENTS

1 PRS Provider’s Report

9 Independent Auditor’s Report to the Members

13 Statement of Financial Position

14 Statement of Comprehensive Income

15 Statement of Changes in Equity

16 Statement of Cash Flows

17 Notes to the Financial Statements

50 Statement by the PRS Provider

51 Scheme Trustee’s Report

52 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 – Growth Fund (“Fund”) for the financial year ended 31 August 2019. Salient Information of the Fund

Name AmPRS – Growth Fund (“Fund”)

Category/Type

Core (Growth) / Growth

Objective AmPRS – Growth Fund aims to provide Long Term capital growth by investing primarily in equities, equity-related securities and/or REITs.

Note: Any material change to the investment objective of the Fund would require Members’ approval.

Performance Benchmark

30% FTSE Bursa Malaysia Top 100 Index

30% MSCI AC Asia Pacific ex Japan Index

40% Quantshop Medium* MGS Index (obtainable via www.aminvest.com) Notes:*Medium means the duration is between three (3) years to seven (7) years

DISCLAIMER: Source: FTSE International Limited ("FTSE") © FTSE 2019. "FTSE®" is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. "BURSA MALAYSIA" is a trade mark of Bursa Malaysia Berhad ("BURSA MALAYSIA"). All intellectual property rights in the index values and constituent list vests in FTSE and BURSA MALAYSIA. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com). The blended returns are calculated by AmFunds Management Berhad using end of day index level values licensed from MSCI (“MSCI Data”). For the avoidance of doubt, MSCI is not the benchmark “administrator” for, or a “contributor”, “submitter” or “supervised contributor” to, the blended returns, and the MSCI Data

2

is not considered a “contribution” or “submission” in relation to the blended returns, as those terms may be defined in any rules, laws, regulations, legislation or international standards. MSCI Data is provided “AS IS” without warranty or liability and no copying or distribution is permitted. MSCI does not make any representation regarding the advisability of any investment or strategy and does not sponsor, promote, issue, sell or otherwise recommend or endorse any investment or strategy, including any financial products or strategies based on, tracking or otherwise utilizing any MSCI Data, models, analytics or other materials or information. Note: Blended return refers to returns from blending the end of day index level values of: (i) one or more MSCI Index(es); and (ii) one or more non MSCI index (es).

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 9,880,344 units and for Class I stood at 58,285,911 units.

Class D

Size of holding As at 31 August 2019 As at 31 August 2018

No of units held

Number of members

No of units held

Number of members

5,000 and below 2,514,462 776 1,549,940 545

5,001-10,000 1,878,730 277 1,603,001 245

10,001-50,000 4,411,122 244 3,727,592 223

50,001-500,000 499,852 5 466,534 5

500,001 and above 576,178 1 612,582 1

Class I

Size of holding As at 31 August 2019 As at 31 August 2018

No of units held

Number of members

No of units held

Number of members

5,000 and below 7,216,294 3,475 6,396,549 2,868

5,001-10,000 11,804,366 1,648 11,005,843 1,555

10,001-50,000 33,526,870 1,753 24,018,145 1,311

50,001-500,000 5,738,381 79 3,169,977 42

500,001 and above - - 0 0

Fund Performance Data

Portfolio Composition

Details of portfolio composition of the Fund for the financial years as at 31 August are as follows:

FY 2019

%

FY 2018

%

FY 2017

%

Collective investment schemes 32.46 31.05 30.34

Consumer discretionary 1.09 1.39 11.32

Consumer staples 3.34 1.94 1.18

Consumer products - - 2.41

Energy 3.75 2.93 1.24

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FY 2019

%

FY 2018

%

FY 2017

%

Financials 9.37 7.79 5.40

Health care 0.87 0.70 -

Industrials 1.02 2.60 2.61

Information technology 2.30 8.47 20.33

Materials 1.41 - 1.49

Properties - - 0.95

Real estate 3.21 3.05 1.56

REITs 12.34 - -

Telecommunication services 0.56 - -

Trading/services - - 5.03

Utilities - 0.35 -

Cash and others 28.28 39.73 16.14

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 2019

FY 2018

FY 2017

Net asset value (RM)*

- Class D 6,280,362 4,973,902 3,999,275

- Class I 37,634,133 28,233,496 19,099,486

Units in circulation*

- Class D 9,880,344 7,959,649 6,326,121

- Class I 58,285,911 44,590,514 29,894,638

Net asset value per unit (RM)*

- Class D 0.6356 0.6249 0.6322

- Class I 0.6457 0.6332 0.6389

Highest net asset value per unit (RM)*

- Class D 0.6400 0.6567 0.6322

- Class I 0.6499 0.6640 0.6389

Lowest net asset value per unit (RM)*

- Class D 0.6011 0.6171 0.5365

- Class I 0.6096 0.6251 0.5408

Benchmark performance (%)

- Class D -2.84 1.23 10.40

- Class I -2.84 1.23 10.40

Total return (%)(1)

- Class D 1.71 -1.15 17.33

- Class I 1.97 -0.89 17.64

Capital growth (%)

- Class D 1.71 -1.15 17.33

- Class I 1.97 -0.89 17.64

Income distribution (%) - - -

Gross distribution (sen per unit) - - -

Net distribution (sen per unit) - - -

Management expense ratio (%)(2) 1.17 1.24 1.55

Portfolio turnover ratio (times)(3) 0.34 0.39 2.77

* Above prices and net asset value per unit are not shown as ex-distribution.

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Note:

(1) Total return is the actual return of the Fund for the respective financial years computed based on the net asset value per unit and net of all fees.

(2) Management expense ratio (“MER”) is calculated based on the total fees and expenses incurred by the Fund divided by the average fund size calculated on a daily basis. The MER decreased by 0.07% as compared to 1.24% per annum for the financial year ended 31 August 2018 mainly due to increase in average fund size.

(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 0.05 times (12.8%) as compared to 0.39 times for the financial year ended 31 August 2018 mainly due to increase in average fund size.

Average Total Return (as at 31 August 2019)

AmPRS-Growth Fund(a)

%

30% FBM Top 100, 30% MSCI AC AP ex-

Japan, 40% MMGS(b)

%

One year

- Class D 1.71 -2.84

- Class I 1.97 -2.84

Three years

- Class D 5.67 2.79

- Class I 5.94 2.79

Five years

- Class D 4.09 2.73

- Class I 4.36 2.73

Since launch (8 April 2013)

- Class D 3.82 3.52

- Class I 4.08 3.52

Annual Total Return

Financial Years Ended (31 August)


%


Japan, 40% MMGS(b)

%

2019

- Class D 1.71 -2.84

- Class I 1.97 -2.84

2018

- Class D -1.15 1.23

- Class I -0.89 1.23

2017

- Class D 17.33 10.40

- Class I 17.64 10.40

5

Financial Years Ended (31 August)


%


Japan, 40% MMGS(b)

%

2016

- Class D 6.97 7.67

- Class I 7.27 7.67

2015

- Class D -3.17 -1.90

- Class I -2.93 -1.90

(a) Source: Novagni Analytics and Advisory Sdn Bhd. (b) 30% FTSE Bursa Malaysia Top 100 Index (“FBM Top 100”), 30% MSCI AC

Asia Pacific ex Japan Index (“MSCI AC AP ex-Japan”), 40% RAM Quantshop Medium* MGS Index (“MMGS”).

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 1.71% which was entirely capital growth in nature. Thus, the Fund’s return of 1.71% has outperformed the benchmark’s negative return of 2.84% by 4.55%. As compared with the financial year ended 31 August 2018, the net asset value (“NAV”) per unit of the Fund increased by 1.71% from RM0.6249 to RM0.6356, while units in circulation increased by 24.13% from 7,959,649 units to 9,880,344 units.

Class I For the financial year under review, the Fund registered a return of 1.97% which was entirely capital growth in nature. Thus, the Fund’s return of 1.97% has outperformed the benchmark’s negative return of 2.84% by 4.81%. As compared with the financial year ended 31 August 2018, the net asset value (“NAV”) per unit of the Fund increased by 1.97% from RM0.6332 to RM0.6457, while units in circulation increased by 30.71% from 44,590,514 units to 58,285,911 units. The line chart below shows comparison between the annual performances of AmPRS-Growth Fund for Class D and Class I and its benchmark 30% FBM Top 100, 30% MSCI AC AP ex-Japan, 40% MMGS, for the financial years ended 31 August.

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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 objective has been achieved as the fund has delivered positive returns since launch and more recently over the 3-year timeframe.

Strategies and Policies Employed

For the financial year under review, the Fund invested its asset into a well-diversified portfolio comprising Equities, Fixed income instruments, REITs, and Liquid Assets. The securities that the Fund invests in will be traded and/or listed in the following countries, which includes but not limited to Australia, Hong Kong, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. For AmPRS – Growth Fund, foreign investments (if any) will be limited to 50% of the Fund’s NAV. The Investment Manager may opt to invest in the securities either directly via collective investment schemes of AmFunds Management Berhad (“AFM”) or other CIS such as ETF. The Fund may also invest in derivatives for the purpose of hedging (subject to PRS Guidelines) if it is deemed necessary to do so.

Portfolio Structure

This table below is the asset allocation of the Fund for the financial years under review.

As at 31-8-2019

%

As at 31-8-2018

%

Changes

%

Collective investment schemes 32.46 31.05 1.41

Consumer discretionary 1.09 1.39 -0.30

Consumer staples 3.34 1.94 1.40

Energy 3.75 2.93 0.82

Financials 9.37 7.79 1.58

Health care 0.87 0.70 0.17

Industrials 1.02 2.60 -1.58

Information technology 2.30 8.47 -6.17

Materials 1.41 - 1.41

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As at 31-8-2019

%

As at 31-8-2018

%

Changes

%

Real estate 3.21 3.05 0.16

REITs 12.34 - 12.34

Telecommunication Services 0.56 - 0.56

Utilities - 0.35 -0.35

Cash and others 28.28 39.73 -11.45

Total 100.00 100.00

For the financial year under review, there were some changes to the sector weights, the most notable being the decrease in cash ,information technology, industrial products, and consumer discretionary, where weighting was decreased significantly by -11.45%, -6.17%, -1.58%, and -0.30%, respectively whereas the Fund had increased weight in REITs, financials, collective investment schemes, materials, consumer staples, energy, telecommunication services, health care, and real estate by 12.34%,1.58%, 1.41%,1.41%, 1.40%, 0.82%, 0.56%, 0.17% and 0.16% respectively.

Cross Trades

There were no cross trades undertaken during the 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.

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.

Market Review

In the past year, the US-China trade was has been front and centre of the radar of global investors on the look-out for some semblance of resolution. Instead, the issue escalated resulting in the multiple imposition of tariffs between the US and China. On the back of that, there have been heightened concerns on a slowdown in global growth, particularly with the International Monetary Fund (“IMF”) as well as individual countries downgrading their growth outlooks. Other macro headwinds affecting investor sentiment are Brexit and particularly in Hong Kong, the street protests running for more than 4 months which were sparked by the opposition against the proposed extradition bill. The US Federal Reserve turned more dovish at the start of 2019 which triggered a bond rally and which extended to global REITs. It has so far delivered on the two rate cuts which was expected by the market. Global central banks have since followed suit in cutting interest rates to support economic growth. Investors sought refuge in more defensive asset classes to weather the volatility and macro uncertainties.

8

Market Outlook

An opaque macro outlook and dovish monetary policy stances globally are expected to continue to drive investor interest in defensive, dividend-yielding stocks. To add to this, yield gaps have widened in certain markets on the back of bond yield compression. We expect markets to be held ransom by the US-China trade war until there is an indication of resolve/abatement.

Additional Information

The following information was updated: 1. Jeyaratnam A/L Tamotharam Pillai was appointed as an Independent Non-

Executive Chairman for AmFunds Management Berhad with effect from 1st April 2019.

Kuala Lumpur, Malaysia AmFunds Management Berhad 25 October 2019

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 – Growth Fund (“the Fund”), which comprise the statement of financial position as at 31 August 2019, 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 13 to 49. In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Fund as at 31 August 2019, 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.

The Provider is responsible for the other information. The other information comprises the information included in the annual report of the Fund, but does not include the financial statements of the Fund and our auditors’ report thereon. Our opinion on the financial statements of the Fund does not cover the other information and we do not express any form of assurance conclusion thereon.

9


AmPRS – Growth Fund (cont’d.)

Information other than the financial statements and auditors’ report thereon (cont'd.)

Responsibilities of the Provider and the Trustees for the financial statements

Auditor’s responsibilities for the audit of the financial statements

In connection with our audit of the financial statements of the Fund, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Fund or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

The 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.

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.

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Auditor’s responsibilities for the audit of the financial statements (cont'd.)

As part of an audit in accordance with the approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the planning and performance of the audit. We also: • Identify and assess the risks of material misstatement of the financial statements of the Fund,

whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Provider.

• 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.

• Evaluate the overall presentation, structure and content of the financial statements of the Fund, including the disclosures, and whether the financial statements of the Fund represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the 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.

11



Other matters

Lee Pei Yin

No. 03189/05/2021 J

Chartered Accountants Chartered Accountant

Kuala Lumpur, Malaysia

25 October 2019

Ernst & Young

AF: 0039

This report is made solely to the members of the Fund, as a body, in accordance with the Guidelines on Private Retirement Schemes issued by Securities Commission Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

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STATEMENT OF FINANCIAL POSITION

AS AT 31 AUGUST 2019

2019 2018

Note RM RM

ASSETS

Investments 4 31,493,047 20,009,417

Dividends receivable 19,021 4,646

Sundry receivables 5 67,162 52,702

Cash at banks 12,433,373 13,402,886 TOTAL ASSETS 44,012,603 33,469,651

LIABILITIES

Net amount due to Provider 6 27,673 7,491

Amount due to Trustee 7 1,428 1,077

Amount due to Private Pension

Administrator (“PPA”) 8 1,428 1,604

Sundry payables and accrued expenses 5 67,579 252,081

TOTAL LIABILITIES 98,108 262,253

EQUITY

Members’ capital 10(a)(b) 39,632,347 29,813,934

Retained earnings 10(c)(d) 4,282,148 3,393,464 TOTAL EQUITY 10 43,914,495 33,207,398

TOTAL EQUITY AND LIABILITIES 44,012,603 33,469,651

NET ASSETS ATTRIBUTABLE TO MEMBERS

− Class D 6,280,362 4,973,902

− Class I 37,634,133 28,233,496

43,914,495 33,207,398

UNITS IN CIRCULATION

− Class D 10(a) 9,880,344 7,959,649 − Class I 10(b) 58,285,911 44,590,514

NET ASSET VALUE PER UNIT

− Class D 63.56 sen 62.49 sen− Class I 64.57 sen 63.32 sen

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

13


STATEMENT OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2019

2019 2018

Note RM RM

INVESTMENT INCOME

Gross dividend/distribution income 778,713 574,622

Net gain/(loss) from investments:

− Financial assets at fair value through profit or

loss (“FVTPL”) 9 676,859 (526,941)

Other unrealised foreign exchange (loss)/gain (65) 122

1,455,507 47,803

EXPENDITURE

Management fee, net of reversal 6 (370,454) (278,864)

Trustee’s fee 7 (15,052) (11,227)

PPA administrative fee 8 (14,469) (11,227)

Auditors’ remuneration (3,500) (3,500)

Tax agent’s fee (3,000) (3,000)

Brokerage and other transaction fees (99,535) (70,288)

Custodian’s fee (21,271) (13,606)

Other expenses (12,255) (26,306)

(539,536) (418,018)

Net income/(loss) before tax 915,971 (370,215)

Less: Income tax 12 (27,287) (20,464)

Net income/(loss) after tax 888,684 (390,679)

Other comprehensive income - -

Total comprehensive income/(loss) forthe financial year 888,684 (390,679)

Total comprehensive income/(loss) comprises

the following:

Realised (loss)/income (98,580) 1,674,190

Unrealised gain/(loss) 987,264 (2,064,869)

888,684 (390,679)


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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 2017 3,315,194 15,999,424 3,784,143 23,098,761

Total comprehensive loss

for the financial year - - (390,679) (390,679)

Creation of units 10(a)(b) 1,171,691 10,693,258 - 11,864,949

Cancellation of units 10(a)(b) (128,497) (1,237,136) - (1,365,633) Balance at 31 August 2018 4,358,388 25,455,546 3,393,464 33,207,398

At 1 September 2018 4,358,388 25,455,546 3,393,464 33,207,398

Total comprehensive income

for the financial year - - 888,684 888,684

Creation of units 10(a)(b) 1,315,356 10,296,300 - 11,611,656

Cancellation of units 10(a)(b) (135,225) (1,658,018) - (1,793,243) Balance at 31 August 2019 5,538,519 34,093,828 4,282,148 43,914,495


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STATEMENT OF CASH FLOWS


2019 2018

RM RM

CASH FLOWS FROM OPERATING AND

INVESTING ACTIVITIES

Proceeds from sale of investments 7,302,598 10,622,105

Capital repayments received 33,946 -

Dividend/distribution received 737,082 554,318

Management fee paid (360,103) (268,707)

Trustee’s fee paid (14,701) (10,877)

PPA administrative fee paid (14,645) (10,371)

Tax agent’s fee paid (3,000) (3,000)

Custodian’s fee paid (21,271) (13,606)

Payments for other expenses (115,911) (101,347)

Purchase of investments (18,341,752) (11,486,867)

Net cash used in operating and investing activities (10,797,757) (718,352)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from creation of units 11,621,780 11,859,560

Payments for cancellation of units (1,793,536) (1,369,341)

Net cash generated from financing activities 9,828,244 10,490,219

NET (DECREASE)/INCREASE IN CASH AND

CASH EQUIVALENTS (969,513) 9,771,867

CASH AND CASH EQUIVALENTS AT

BEGINNING OF FINANCIAL YEAR 13,402,886 3,631,019

CASH AND CASH EQUIVALENTS AT END OF FINANCIAL YEAR 12,433,373 13,402,886

Cash and cash equivalents comprise:Cash at banks 12,433,373 13,402,886


16


NOTES TO THE FINANCIAL STATEMENTS


1. GENERAL INFORMATION

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

Adoption of new standards

MFRS 9 Financial Instruments

MFRS 15 Revenue From Contracts With Customers

AmPRS – Growth Fund (“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.

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 financial statements were authorised for issue by the Chief Executive Officer of the

Provider on 25 October 2019.

The Fund aims to provide long term capital growth by investing primarily in equities, equity-

related securities and/or REITs. 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 8 April

2013.

The accounting policies adopted are consistent with those of the previous financial year

except for the adoption of the following new standards which became effective for the first

time on 1 September 2018:

The adoption of these new standards did not have any material impact on the financial

statements of the Fund except for those arising from the adoption of MFRS 9 as disclosed

below. Other than the adoption of new accounting policies for financial instruments as

disclosed below, the Fund did not change its accounting policies or make retrospective

adjustments as a result of adopting the new standards.

17


2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS (CONT'D.)

MFRS 9 Financial Instruments

(i) Classification and measurement

(ii) Impairment

The loan loss impairment methodology is fundamentally changed under MFRS 9 as it

replaces 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 debt financial assets not held at FVTPL. The allowance for expected

losses are determined based on the expected credit losses associated with the

probability of default (“PD”) 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.

MFRS 9 replaces the provisions of MFRS 139 Financial Instruments: Recognition and

Measurement that relate to the recognition, classification and measurement, as well as

derecognition of financial instruments, impairment of financial assets and hedge accounting.

As permitted by the transitional provision of MFRS 9, comparative information has not been

restated. The impact arising from the adoption of MFRS 9 is as follows:

MFRS 9 requires 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 are 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 are measured at fair value through other comprehensive income (“FVOCI”).

Any financial assets that are not measured at amortised cost or FVOCI are measured

at fair value through profit or loss (“FVTPL”). Instruments that qualify for amortised cost

or FVOCI may be irrevocably designated 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 statement of profit or loss.

Upon the adoption of MFRS 9 on 1 September 2018, all the Fund’s equity investments

and collective investment schemes continue to be measured at FVTPL.

There is 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.

18


2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS (CONT'D.)

MFRS 9 Financial Instruments (cont'd.)

(ii) Impairment (cont'd.)

3. SUMMARY SIGNIFICANT ACCOUNTING POLICIES

3.1 Income recognition

(i) Dividend/distribution income

(ii) Gain or loss on disposal of investments

3.2 Income tax

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.

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.

Dividend/distribution income is recognised when the Fund’s right to receive payment is

established.

The Fund has established a policy to perform an assessment at the end of each

reporting period of whether credit risk has increased significantly since initial

recognition by considering the change in the risk of default occurring over the

remaining life of the financial instrument. To calculate ECL, the Fund has estimated the

risk of a default occurring on the financial instrument during its expected life. ECLs are

estimated based on the present value of all cash shortfalls over the remaining expected

life of the financial asset, i.e. the difference between the contractual cash flows that are

due to the Fund under the contract and the cash flows that the Fund expect to receive,

discounted at the effective interest rate of the financial asset.

There was no ECL impact on the Fund’s financial assets at amortised cost upon the

adoption of MFRS 9 on 1 September 2018 or during the current financial year.

On disposal of investments, the net realised gain or loss on disposal is measured as

the difference between the net disposal proceeds and the carrying amount of the

investments. The net realised gain or loss is recognised in profit or loss.

19


3. SUMMARY SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)

3.3 Functional and presentation currency

3.4 Foreign currency transactions

3.5 Statement of cash flows

3.6 Distribution

3.7 Members’ capital

3.8 Financial assets – initial recognition and measurement

(i) Initial recognition

Cash equivalents are short-term, highly liquid investments that are readily convertible to

cash with insignificant risk of changes in value.

The Fund adopts the direct method in the preparation of the statement of cash flows.

Transactions in currencies other than the Fund’s functional currency (foreign currencies) are

recorded in the functional currency using exchange rates prevailing at the transaction dates.

At each reporting date, foreign currency monetary items are translated into Ringgit Malaysia

at exchange rates ruling at the reporting date. All exchange gains or losses are recognised

in profit or loss.

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.

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.

Financial assets and financial liabilities are recognised when the Fund becomes a party

to the contractual provisions of the instrument. Regular way purchases and sales of

financial assets are recognised using trade date accounting or settlement date

accounting. The method used is applied consistently for all purchases and sales of

financial assets that belong to the same category of financial assets.

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”) .

20



3.8 Financial assets – initial recognition and measurement (cont'd.)

(ii) Initial measurement

(iii) “Day 1” profit or loss

3.9 Financial assets – classification and subsequent measurement

3.10 Financial instruments under MFRS 9

(i) Classification and measurement

All financial assets are recognised initially at fair value plus, in the case of financial

assets not recorded at fair value through profit or loss, transaction costs that are

attributable to the acquisition of the financial asset. All financial liabilities are recognised

initially at fair value and, in the case of financial liabilities not recorded at fair value

through profit or loss, net of directly attributable transaction costs.

At initial measurement, if the transaction price differs from the fair value, the Fund

immediately recognises the difference between the transaction price and fair value (a

“Day 1” profit or loss) in profit or loss provided that fair value is evidenced by a quoted

price in an active market for an identical asset or liability (i.e. Level 1 input) or based on

a valuation technique that uses only data from observable markets. In all other cases,

the difference between the transaction price and model value is recognised in profit or

loss on a systematic and rational basis that reflects the nature of the instrument over its

tenure.

The classification of financial assets depends on the Fund’s business model of

managing the financial assets in order to generate cash flows (“business model test”)

and the contractual cash flow characteristics of the financial instruments (“SPPI test”).

The business model test determines whether cash flows will result from collecting

contractual cash flows, selling the financial assets, or both and the assessment is

performed on a portfolio basis. The SPPI test determines whether the contractual cash

flows are solely for payments of principal and interest and the assessment is performed

on a financial instrument basis.

The Fund subsequently measures its investment in equity investments and collective

investment scheme at FVTPL. Dividends/Distributions earned whilst holding the investment

in equity investments and collective investment scheme is recognised in profit or loss when

the right to the payment has been established. Gains and losses on the investment in equity

and collective investment schemes, realised and unrealised are included in profit or loss.

21



3.10 Financial instruments under MFRS 9 (cont'd.)

(i) Classification and measurement (cont'd.)

The Fund may classify its financial assets under the following categories:

Financial assets at amortised cost

Financial assets at FVOCI

Financial assets at FVTPL

A financial asset is measured at amortised cost if it is held within a business model

whose objective is to hold financial assets in order to collect contractual cash flows and

its contractual terms give rise on specified dates to cash flows that are solely payments

of principal and interest on the principal amount outstanding. The Fund includes in this

category deposits with financial institutions, cash at banks, amounts due from

brokers/financial institutions, amount due from the Provider and other receivables.

Any financial assets that are not measured at amortised cost or FVOCI are measured

at fair value to profit or loss (“FVTPL”). 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 FVTPL”.

Dividend/distribution revenue elements of such instruments is recorded separately in

“Dividend/distribution income”. Exchange differences on financial assets at FVTPL are

not recognised separately in profit or loss but are included in net gain or net loss on

changes in fair value of financial assets at FVTPL.

Instruments that qualify for amortised cost or FVOCI may be irrevocably designated as

FVTPL, if doing so eliminates or significantly reduces a measurement or recognition

inconsistency. Equity instruments are normally measured at FVTPL, nevertheless, the

Fund is allowed to irrevocably designate equity instruments that are not held for trading

as FVOCI, with no subsequent reclassification of gains or losses to profit or loss.

A financial asset is measured at fair value through other comprehensive income

(“FVOCI”) if its business model is both to hold the asset to collect contractual cash

flows and to sell the financial asset. In addition, the contractual terms of the financial

assets give rise on specified dates to cash flows that are solely payments of principal

and profit on the outstanding principal.

These investments are initially recorded at fair value and transaction costs are

expensed in the profit or loss. Subsequent to initial recognition, these investments are

remeasured at fair value. All fair value adjustments are initially recognised through OCI.

Debt instruments at FVOCI are subject to impairment assessment.

22



3.11 Financial liabilities – classification and subsequent measurement

3.12 Derecognition of financial instruments

(i) Derecognition of financial asset

- the rights to receive cash flows from the asset have expired, orthe rights to receive cash flows from the asset have expired, or

- the rights to receive cash flows from the asset have expired, or

- the Fund has transferred substantially all the risks and rewards of the asset, or

-

(ii) Derecognition of financial liability

3.13 Financial instruments – expected credit losses

-

-

-

The Fund assesses on a forward-looking basis the expected credit losses (“ECL”)

associated with its financial assets at amortised cost. The Fund recognises a loss allowance

for such losses at each reporting date. The measurement of ECL reflects:

Financial liabilities issued by the Fund are classified as financial liabilities at amortised cost,

where the substance of the contractual arrangement results in the Fund having an obligation

either to deliver cash or another financial asset to the holder. After initial measurement,

financial liabilities are subsequently measured at amortised cost using the effective interest

method. Amortised cost is calculated by taking into account any discount or premium on

acquisition and fees or costs that are an integral part of the effective interest rate.

A financial asset (or, where applicable a part of a financial asset or part of a group of

similar financial assets) is derecognised when:

the Fund has transferred its rights to receive cash flows from the asset or has

assumed an obligation to pay the received cash flows in full without material delay

to a third party under a “pass-through” arrangement; and either:

the Fund has neither transferred nor retained substantially all the risks and

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

A financial liability is derecognised when the obligation under the liability is discharged,

cancelled or expired. Gains and losses are recognised in profit or loss when the

liabilities are recognised, and through the amortisation process.

an unbiased and probability-weighted amount that is determined by evaluating a range

of possible outcomes;

the time value of money; and

reasonable and supportable information that is available without undue cost or effort at

the reporting date about past events, current conditions and forecasts of future

economic conditions.

23



3.13 Financial instruments – expected credit losses (cont'd.)

3.14 Determination of fair value

3.15 Classification of realised and unrealised gains and losses

3.16 Significant accounting estimates and judgments

Realised gains and losses on disposals of financial instruments classified at fair value

through profit or loss are calculated using the weighted average method. They represent the

difference between an instrument’s initial carrying amount and disposal amount.

The 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.

Financial assets together with the associated allowance are written off when it has

exhausted all practical recovery efforts and there is no realistic prospect of future recovery.

The Fund may also write-off financial assets that are still subject to enforcement activity

when there is no reasonable expectation of full recovery. If a write-off is later recovered, the

recovery is credited to profit or loss.

For investments in local quoted equity securities, market value is determined based on the

closing price quoted on Bursa Malaysia Berhad. For the investments in foreign listed

securities, which are quoted in the respective stock exchanges, market value will be

determined based on the published market price quoted by the respective stock exchanges

at the end of each business day. For investments in collective investment schemes, fair

value is determined based on the closing net asset value per unit of the foreign collective

investment scheme. The difference between 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 Fund classifies its investments as financial assets at FVTPL as the Fund may sell its

investments in the short-term for profit-taking or to meet members’ cancellation of units.

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.

The ECL in respect of financial assets at amortised cost, if any, is recognised in profit or

loss.

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.

24


4. INVESTMENTS

2019 2018

RM RM

Financial assets at FVTPL

Quoted equity securities - local (a) 3,542,068 2,477,826

Quoted equity securities - foreign (b) 8,280,329 7,221,030

Quoted collective investment schemes - local (c) 1,277,262 -

Quoted collective investment schemes - foreign (d) 4,139,538 -

Unquoted collective investment schemes (e) 14,253,850 10,310,561

31,493,047 20,009,417

Details of investments are as follows:

Fair

value as a

percentage of

Number of Fair Purchase net asset

Name of company shares value cost value

RM RM %

2019

(a) Quoted equity securities - local

Malaysia

Energy

Deleum Berhad 276,600 229,578 276,693 0.52

Dialog Group Berhad 108,800 378,624 300,159 0.86

Hibiscus Petroleum Berhad 469,000 424,445 544,482 0.97

Yinson Holdings Berhad 88,300 613,685 401,363 1.40

942,700 1,646,332 1,522,697 3.75

Financials

CIMB Group Holdings Berhad 52,748 266,905 310,441 0.61

Malayan Banking Berhad 56,445 490,507 530,711 1.12

Public Bank Berhad 19,900 404,368 456,312 0.92

129,093 1,161,780 1,297,464 2.65

Health care

CCM Duopharma Biotech

Berhad 272,360 384,028 333,705 0.87

Materials

ATA IMS Berhad 257,300 349,928 429,611 0.80

Total in Malaysia 1,601,453 3,542,068 3,583,477 8.07

25


4. INVESTMENTS (CONT'D.)

Fair

value as a

percentage of



RM RM %

2019 (cont'd.)

(b) Quoted equity securities -

foreign

Hong Kong

Consumer discretionary

Shenzhou International Group

Holdings Limited 5,000 285,983 242,942 0.65

Consumer Staples

China Mengniu Dairy

Company Limited 26,000 434,264 428,316 0.99

Financials

China Construction Bank

Corporation 127,000 396,960 470,487 0.90

Industrial and Commercial

Bank of China Limited 100,000 265,843 327,510 0.60

Ping An Insurance (Group)

Co. of China Limited 7,500 362,111 311,605 0.82

234,500 1,024,914 1,109,602 2.32

Industrials

Shenzhen International


TK Group (Holdings) Limited 114,000 216,735 171,424 0.49

143,009 447,935 404,594 1.02

Real estate

Shimao Property Holdings

Limited 46,300 552,019 562,429 1.26

Wharf Real Estate Investment

Company Limited 15,000 341,971 386,607 0.78

61,300 893,990 949,036 2.04

Telecommunication services

Tencent Holdings Limited 1,400 244,211 184,383 0.56

Total in Hong Kong 471,209 3,331,297 3,318,873 7.58

26



Fair

value as a

percentage of



RM RM %

2019 (cont'd.)


foreign (cont'd.)

Indonesia


PT Mitra Adiperkasa Tbk 654,400 191,895 171,286 0.44

Consumer Staples

PT Gudang Garam Tbk 17,900 368,355 402,786 0.84

Financials

PT Bank Central Asia Tbk 29,700 268,313 235,360 0.61

PT Bank Negara Indonesia

(Persero) Tbk 118,600 270,496 276,089 0.61

148,300 538,809 511,449 1.22

Total in Indonesia 820,600 1,099,059 1,085,521 2.50

Korea

Consumer Staples

LG Electronics Inc. 110 450,569 498,618 1.03

Information Technology

Samsung Electronics Co., Ltd 1,700 259,870 258,549 0.59

Samsung SDI Co., Ltd 313 271,312 158,410 0.62

Wonik IPS Co., Ltd 2,229 181,984 167,284 0.41

4,242 713,166 584,243 1.62

Total in Korea 4,352 1,163,735 1,082,861 2.65

Philippines

Consumer Staples

Robinsons Retail Holdings, Inc. 33,890 212,901 234,328 0.48

Financials

BDO Unibank, Inc. 31,650 379,815 351,552 0.87

27



Fair

value as a

percentage of



RM RM %

2019 (cont'd.)


foreign (cont'd.)

Philippines (cont'd.)

Materials

D&L Industries, Inc. 365,100 269,645 310,762 0.61

Total in Philippines 430,640 862,361 896,642 1.96

Singapore

Financials

DBS Group Holdings Ltd 7,600 564,728 599,800 1.29

United Overseas Bank Limited 5,900 446,092 470,723 1.02

13,500 1,010,820 1,070,523 2.31

Real Estate

City Developments Limited 14,200 412,080 441,850 0.93

Total in Singapore 27,700 1,422,900 1,512,373 3.24

Taiwan

Technology

GlobalWafers Co., Ltd. 5,000 193,154 283,099 0.44

Taiwan Semiconductor

Manufacturing Co., Ltd. 3,000 104,223 71,880 0.24

8,000 297,377 354,979 0.68

Total in Taiwan 8,000 297,377 354,979 0.68

Thailand

Real Estate

Supalai Public Company

Limited 38,300 103,600 92,670 0.24

Total in Thailand 38,300 103,600 92,670 0.24

28



Fair value as a

percentage of


Collective investment scheme units value cost value

RM RM %

2019 (cont'd)

(c) Quoted collective investment

scheme - local

Malaysia

REITs

Axis Real Estate Investment

Trust 277,200 526,680 480,299 1.20

IGB Real Estate Investment

Trust 148,200 306,774 244,246 0.70

YTL Hospitality REIT 321,600 443,808 394,252 1.01

747,000 1,277,262 1,118,797 2.91

Total in Malaysia 747,000 1,277,262 1,118,797 2.91

(d) Quoted collective investment

scheme - foreign

Hong Kong

REITs

The Link Real Estate

Investment Trust 6,000 283,566 249,059 0.65

Total in Hong Kong 6,000 283,566 249,059 0.65

Singapore

REITs

ARA US Hospitality Trust 284,100 1,008,991 1,035,260 2.30

CapitaLand Commercial Trust 88,900 573,600 516,491 1.31

Frasers Centrepoint Trust 65,000 541,469 476,767 1.23

Prime Us Reit 344,000 1,294,020 1,244,175 2.95

Suntec Real Estate Investment

Trust 74,900 437,892 414,332 1.00

856,900 3,855,972 3,687,025 8.79


29


4. INVESTMENTS (CONT'D.)Fair value as a

percentage of



RM RM %

2019 (cont'd)

(e) Unquoted collective investment

scheme - local

Malaysia

AmConservative* 4,278,645 2,552,211 2,623,591 5.81

AmDynamic Sukuk* 251,935 353,314 308,598 0.80

AmIncome Extra* 3,956,997 4,553,712 4,085,207 10.37

AmIncome Reward* 5,520,122 5,936,891 5,405,052 13.52

AmIntelligent Global Equity Multi

Strategy-Developed Markets* 827,199 857,722 825,379 1.95

14,834,897 14,253,850 13,247,827 32.45


Total financial assets at FVTPL 31,493,047 30,230,104 71.72

Excess of fair value over cost 1,262,943

Fair

value as a

percentage of



RM RM %

2018

(a) Quoted equity securities - local

Malaysia

Energy

Deleum Berhad 175,300 175,300 182,084 0.53

Dialog Group Berhad 95,800 333,384 256,949 1.00

Yinson Holdings Berhad 29,000 133,400 132,028 0.40

300,100 642,084 571,061 1.93

Financials

CIMB Group Holdings Berhad 51,548 313,927 332,641 0.94

Public Bank Berhad 13,600 341,632 312,008 1.03

65,148 655,559 644,649 1.97

Health care

CCM Duopharma Biotech Berhad 179,660 231,761 221,764 0.70

30



Fair

value as a

percentage of



RM RM %

2018 (cont'd)

(a) Quoted equity securities -

local (cont'd.)

Malaysia (cont'd.)

Industrials products

Frontken Corporation Berhad 139,300 119,798 101,689 0.36

Gamuda Berhad 26,900 99,530 121,534 0.30

Malaysian Resources

Corporation Berhad 203,900 142,730 170,257 0.43

370,100 362,058 393,480 1.09


V.S. Industry Berhad 58,125 91,838 76,544 0.28

Real Estate

IGB Real Estate Investment

Trust 105,400 182,342 166,013 0.55

S P Setia Berhad 74,346 195,530 253,783 0.59

179,746 377,872 419,796 1.14

Utilities

Taliworks Corporation Berhad 79,900 116,654 107,865 0.35


31



Fair

value as a

percentage of



RM RM %

2018 (cont'd)


foreign

Hong Kong


Chow Sang Sang Holdings

International Limited 34,000 269,265 331,516 0.81

Consumer Staples

China Mengniu Dairy

Company Limited 19,000 231,877 250,904 0.70

Financials

China Construction Bank

Corporation 109,000 399,644 411,385 1.20

Industrial and Commercial

Bank Of China Limited 85,000 258,223 288,193 0.78

Ping An Insurance (Group)

Co. of China Limited 7,000 279,567 288,332 0.84

201,000 937,434 987,910 2.82

Industrials

Shenzhen International


TK Group (Holdings) Limited 114,000 367,819 171,424 1.11

131,509 501,897 319,461 1.51

Information technology

Tencent Holdings Limited 1,500 280,798 176,791 0.85

Real estate

CIFI Holdings (Group) Co. Ltd. 36,000 85,607 111,889 0.26

Total in Hong Kong 389,009 2,037,613 1,846,955 6.14

32



Fair

value as a

percentage of



RM RM %

2018 (cont'd)


foreign (cont'd.)

Indonesia


PT Astra International Tbk 91,900 192,072 241,460 0.58

Consumer Staples

PT Indofood CBP Sukses

Makmur Tbk 62,600 154,026 145,350 0.46

Financials

PT Bank Central Asia Tbk 14,100 98,855 97,910 0.30

Total in Indonesia 168,600 444,953 484,720 1.34

Korea


Samsung Electronics Co.,Ltd 1,700 299,419 258,549 0.90

Samsung SDI Co., Ltd 319 277,683 161,447 0.84

SK Hynix Inc. 577 176,380 116,633 0.53

Wonik IPS Co., Ltd 2,637 251,964 292,168 0.76

5,233 1,005,446 828,797 3.03

Total in Korea 5,233 1,005,446 828,797 3.03

Philippines

Consumer Staples

Robinsons Retail Holdings, Inc. 42,940 256,798 300,292 0.77

Total in Philippines 42,940 256,798 300,292 0.77

33



Fair

value as a

percentage of



RM RM %

2018 (cont'd)


foreign (cont'd.)

Singapore

Financials

DBS Group Holdings Ltd 7,400 561,705 585,289 1.69

United Overseas Bank Limited 4,100 333,135 332,148 1.00

11,500 894,840 917,437 2.69

Real Estate

CapitaLand Commercial Trust 37,300 198,314 193,054 0.60

City Developments Limited 5,900 164,819 210,388 0.50

Oxley Holdings Limited 176,100 185,139 266,335 0.56

219,300 548,272 669,777 1.66


Thailand

Energy

IRPC Public Company Limited 379,400 330,751 257,404 1.00

Total in Thailand 379,400 330,751 257,404 1.00

Taiwan

Technology

ChipMOS TECHNOLOGIES

INC. 138,000 390,111 474,097 1.17

GlobalWafers Co., Ltd. 7,000 379,391 396,339 1.14

Hon Hai Precision Industry

Co., Ltd 17,000 183,821 241,762 0.55

Nanya Technology Corporation 25,000 233,235 305,729 0.71

Taiwan Semiconductor

Manufacturing Co., Ltd. 7,000 246,534 167,719 0.74

194,000 1,433,092 1,585,646 4.31

Total in Taiwan 194,000 1,433,092 1,585,646 4.31

34



Fair value as a

percentage of



RM RM %

(e) Unquoted collective investment

scheme - local

Malaysia

AmConservative* 4,101,800 2,467,643 2,519,988 7.43

AmDynamic Sukuk* 245,655 317,558 300,000 0.96

AmIncome Extra* 3,828,844 4,125,196 3,951,197 12.42

AmIncome Reward* 3,416,907 3,400,164 3,304,916 10.24

11,593,206 10,310,561 10,076,101 31.05

Total In Malaysia 11,593,206 10,310,561 10,076,101 31.05

Total financial assets at FVTPL 19,740,152 19,402,288 59.45

Excess of fair value over cost 337,864

* These collective investment schemes are managed by the Provider.

5. SUNDRY RECEIVABLES/PAYABLES

2019 2018

RM RM

Amount owing from brokers 67,162 52,702 Amount owing to brokers (60,820) (244,704)

The normal trade credit period is two business days.

6. NET AMOUNT DUE TO PROVIDER

2019 2018

RM RM

Net creation of units* 12,986 22,816

Management fee payable, net of reversal (40,659) (30,307)

(27,673) (7,491)

Included in sundry receivables/payables were amounts owing from/to brokers for

outstanding contracts where settlement were not due as follows:

35


6. NET AMOUNT DUE TO PROVIDER (CONT'D.)

*

7. AMOUNT DUE TO TRUSTEE

8. AMOUNT DUE TO PPA

9. NET GAIN/(LOSS) FROM INVESTMENTS2019 2018

RM RM

Net gain/(loss) on financial assets at FVTPL comprised:

− Net realised (loss)/gain on sale of investments (182,536) 1,898,026

− Net realised loss on foreign currency exchange (127,934) (359,976)

− Net unrealised gain/(loss) on changes in fair values of

investments 769,297 (2,013,852)

− Net unrealised gain/(loss) on foreign currency fluctuation

of investments denominated in foreign currency 218,032 (51,139)

676,859 (526,941)

The normal credit period in the previous and current financial years for creation and

redemption of units is three business days.

The amount represents net amount receivable from the Provider for units created.

Management fee is at a rate of 1.50% (2018: 1.50%) per annum for Class D and 1.25%

(2018: 1.25%) per annum for Class I on the net asset value of the Fund, calculated on a

daily basis. As the Fund invested in the collective investment schemes ("CIS"), the

management fee related to the CIS has been charged by the Provider, accordingly, and can

only be charged once in accordance with the SC Guidelines on Private Retirement

Schemes. As at 31 August 2019, there was no double charging of management fee.

The normal credit period in the previous and current financial years for Trustee’s fee payable

is one month.

The normal credit period in the previous and current financial years for PPA’s administrative

fee payable is one month.

The normal credit period in the previous and current financial years for management fee

payable is one month.

PPA administrative fee is at a rate of 0.04% (2018: 0.04%) per annum for both Class D and

Class I on the net asset value of the Fund, calculated on a daily basis.

Trustee’s fee is at a rate of 0.04% (2018: 0.04%) per annum for both Class D and Class I on

the net asset value of the Fund, calculated on a daily basis.

36


10. TOTAL EQUITY

Total equity is represented by:

2019 2018

Note RM RM

Members’ capital − Class D (a) 5,538,519 4,358,388

Members’ capital − Class I (b) 34,093,828 25,455,546

Retained earnings

− Realised income (c) 3,019,122 3,117,702

− Unrealised gain (d) 1,263,026 275,762

43,914,495 33,207,398

(a) Menbers' capital/units in circulation - Class D

Number of Number of

units RM units RM

At beginning of the

financial year 7,959,649 4,358,388 6,326,121 3,315,194

Creation during the

financial year 2,135,858 1,315,356 1,835,214 1,171,691

Cancellation during the

financial year (215,163) (135,225) (201,686) (128,497)

At end of the financial year 9,880,344 5,538,519 7,959,649 4,358,388

Members' capital/units in circulation - Class I

Number of Number of

units RM units RM

At beginning of the

financial year 44,590,514 25,455,546 29,894,638 15,999,424

Creation during the

financial year 16,314,649 10,296,300 16,618,065 10,693,258

Cancellation during the

financial year (2,619,252) (1,658,018) (1,922,189) (1,237,136)

At end of the financial year 58,285,911 34,093,828 44,590,514 25,455,546

2018

2019 2018

2019

37


10. TOTAL EQUITY (CONT'D.)

(c) Realised - Distributable

2019 2018

RM RM

At beginning of the financial year 3,117,702 1,443,512

Net realised income for the financial year (98,580) 1,674,190

At end of the financial year 3,019,122 3,117,702

(d) Unrealised - Non-distributable

2019 2018

RM RM

At beginning of the financial year 275,762 2,340,631

Net unrealised gain/(loss) for the financial year 987,264 (2,064,869)

At end of the financial year 1,263,026 275,762

11. UNITS HELD BY RELATED PARTIES

The related party of and its relantionship with the Fund are as follows:

Relationship

Subsidiaries and associates of AMMB

as disclosed in its financial statements

12. INCOME TAX 2019 2018

RM RM

Current financial year – local tax 3,533 439

Current financial year – foreign tax 23,754 20,025

27,287 20,464

Income tax payable is calculated on investments income less deduction for permitted

expenses as provided for under Section 63B of the Income Tax Act, 1967.

There were no units held by the Provider or any related party as at 31 August 2019 and 31

August 2018.

Related parties

AmFunds Management Berhad

AmInvestment Bank Berhad

AMMB Holdings Berhad

The Provider

Holdings company of the Provider

Ultimate holding company of the Provider

Subsidiaries and associate companies of the

ultimate holding company of the Provider

Pursuant to Schedule 6 of the Income Tax Act 1967, provided that the exemption shall not

apply to the interest paid or credited to a unit trust that is a wholesale fund which is a money

market fund. Interest income earned by Funds other than wholesale money market fund is

exempted from tax.

38


12. INCOME TAX (CONT'D.)

2019 2018

RM RM


Taxation at Malaysian statutory rate of 24% (2018 : 24%) 219,833 (88,852)

Tax effects of:

Income not subject to tax (378,940) (561,183)

Effect of different tax rate in other countries (17,624) (11,818)

Loss not allowede for tax deduction 74,528 581,992

Restriction on tax deductible expenses 83,113 62,814

Non-permitted expenses for tax purposes 37,142 30,531

Permitted expenses not used and not available for future

financial years 9,235 6,980

Tax expense for the financial years 27,287 20,464

13. DISTRIBUTION

14. MANAGEMENT EXPENSE RATIO (“MER”)

The Fund’s MER is as follows:

2019 2018

% p.a. % p.a.

Management fee, net of reversal 0.98 0.99

Trustee’s fee 0.04 0.04

PPA administrative fee 0.04 0.04

Fund’s other expenses 0.11 0.17

Total MER 1.17 1.24

15. PORTFOLIO TURNOVER RATIO (“PTR”)

No distribution was declared by the Fund for the financial years ended 31 August 2019 and

31 August 2018.

The PTR of the Fund, which is the ratio of average total acquisitions and disposals of

investments to the average net asset value of the Fund calculated on a daily basis, is 0.34

times (2018: 0.39 times).

The MER of the Fund is the ratio of the sum of annualised fees and expenses incurred by

the Fund to the average net asset value of the Fund calculated on a daily basis.

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:

39


16. SEGMENTAL REPORTING

- A portfolio of equity instruments; and

- A portfolio of collective investment schemes.

Collective Collective

investment investment

Equity schemes Equity schemes

portfolio portfolio Total portfolio portfolio Total

RM RM RM RM RM RM

Gross dividend/

distribution

income 341,095 437,618 778,713 316,702 257,920 574,622

Net gain/(loss)

from

investments:

– Financial

assets

at FVTPL (373,328) 1,050,187 676,859 (484,295) (42,646) (526,941)

Other

unrealised

foreign

exchange

(loss)/gain - (65) (65) - 122 122

Total segment

investment

income/(loss)

for the

financial

year (32,233) 1,487,740 1,455,507 (167,593) 215,396 47,803

The Provider and Investment Committee of the Fund are responsible for allocating resources

available to the Fund in accordance with the overall investment strategies as set out in the

Investment Guidelines of the Fund. The Fund is managed by two segments:

2019 2018

The investment objective of each segment is to achieve consistent returns from the

investments in each segment while safeguarding capital by investing in diversified portfolios.

There have been no changes in reportable segments in the current financial year. The

segment information provided is presented to the Provider and Investment Committee of the

Fund.

40


16. SEGMENTAL REPORTING (CONT'D.)

Collective Collective

investment investment

Equity schemes Equity schemes

portfolio portfolio Total portfolio portfolio Total

RM RM RM RM RM RM

Financial

assets at

FVTPL 11,822,397 19,670,650 31,493,047 9,698,856 10,310,561 20,009,417

Dividends

receivable 19,021 - 19,021 4,646 - 4,646

Amount

owing from

brokers 67,162 - 67,162 52,702 - 52,702

Total

segment

assets 11,908,580 19,670,650 31,579,230 9,756,204 10,310,561 20,066,765

Amount

owing to

brokers 60,820 - 60,820 244,704 - 244,704

Total

segment

liabilities 60,820 - 60,820 244,704 - 244,704

2019 2018

RM RM

Net reportable segment investment income 1,455,507 47,803

Less: Expenses (539,536) (418,018)


Less: Income tax (27,287) (20,464) Net income/(loss) after tax 888,684 (390,679)

2019 2018

Expenses of the Fund are not considered part of the performance of any investment segment.

The following table provides reconciliation between the net reportable segment income and net

income/(loss) after tax:

41


16. SEGMENTAL REPORTING (CONT'D.)

2019 2018

RM RM

Total segment assets 31,579,230 20,066,765

Cash at banks 12,433,373 13,402,886 Total assets of the Fund 44,012,603 33,469,651

Total segment liabilities 60,820 244,704

Net amount due to Provider 27,673 7,491

Amount due to Trustee 1,428 1,077

Amount due to PPA 1,428 1,604

Sundry payables and accrued expenses 6,759 7,377 Total liabilities of the Fund 98,108 262,253

17. TRANSACTIONS WITH THE PROVIDER, BROKERS AND FINANCIAL INSTITUTIONS

Provider/Brokers/Financial

institutions

RM % RM %

DBS Vickers Securities (Singapore)

Pte Ltd 6,439,978 25.63 38,823 38.75

Daiwa Capital Market Hong Kong

Limited 3,173,965 12.63 12,450 12.42

AmFunds Management Berhad 3,171,726 12.62 - -

AmInvestment Bank Berhad* 2,947,423 11.73 11,350 11.32

Maybank Investment Bank Berhad 2,516,494 10.01 10,589 10.57

CGS CIMB Securities GK

(Hong Kong) Limited 2,093,748 8.33 7,084 7.07

CIMB Investment Bank Berhad 1,401,549 5.58 5,478 5.47

UOB Kay Hian (Hong kong) Ltd. 1,189,548 4.73 4,836 4.83

Daiwa Securities Capital Markets

Korea Co Ltd 653,334 2.60 2,411 2.41

RHB Investment Bank Berhad 441,907 1.76 1,791 1.79

Others brokers and fianncial

institutions 1,097,880 4.38 5,384 5.37 Total 25,127,552 100.00 100,196 100.00

In addition, certain assets and liabilities are not considered to be part of the net assets or

liabilities of an individual segment. The following table provides reconciliation between the

net reportable segment assets and liabilities and total assets and liabilities of the Fund.

Details of transactions with the Provider, brokers and financial institutions for the financial

year ended 31 August 2019 are as follows:

Brokerage fee, stamp

Transaction value duty and clearing fee

42


17.

*

18. FINANCIAL INSTRUMENTS

(a) Classification of financial instruments

Financial Financial

Financial assets at liabilities

assets at amortised at amortised

FVTPL cost cost Total

RM RM RM RM

2019

Assets

Investments 31,493,047 - - 31,493,047

Dividends receivable - 19,021 - 19,021

Sundry receivables - 67,162 - 67,162

Cash at banks - 12,433,373 - 12,433,373 Total financial assets 31,493,047 12,519,556 - 44,012,603

Liabilities

Net amount due to Provider - - 27,673 27,673

Amount due to Trustee - - 1,428 1,428

Amount due to PPA - - 1,428 1,428

Sundry payables and

accrued expenses - - 67,579 67,579 Total financial liabilities - - 98,108 98,108

TRANSACTIONS WITH THE PROVIDER, BROKERS AND FINANCIAL INSTITUTIONS

(CONT'D.)

A financial institution related to the Provider. 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.

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 listed securities and collective investment

schemes. Transactions in collective investment schemes do not involve any commission or

brokerage.

43


18. FINANCIAL INSTRUMENTS (CONT'D.)

(a) Classification of financial instruments (cont'd.)

Loans and Financial

receivables liabilities

Financial at at

assets at amortised amortised

FVTPL cost cost Total

RM RM RM RM

2018

Assets

Investments 20,009,417 - - 20,009,417

Dividends receivable - 4,646 - 4,646

Sundry receivables - 52,702 - 52,702

Cash at banks - 13,402,886 - 13,402,886 Total financial assets 20,009,417 13,460,234 - 33,469,651

Liabilities

Net amount due to Provider - - 7,491 7,491

Amount due to Trustee - - 1,077 1,077

Amount due to PPA - - 1,604 1,604

Sundry payables and

accrued expenses - - 252,081 252,081 Total financial liabilities - - 262,253 262,253

2019 2018

RM RM

Net gain/(loss) from financial assets at FVTPL 676,859 (526,941)

Income, of which derived from:

− Gross dividend/distribution income from

financial assets at FVTPL 778,713 574,622

− Other unrealised foreign exchange (loss)/gain (65) 122

(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:

gains and losses

Income, expense,

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

44


18. FINANCIAL INSTRUMENTS (CONT'D.)

(b) Financial instrument that are carried at fair value (cont'd.)

Level 3:

Level 1 Level 2 Level 3 Total

RM RM RM RM

2019

Financial assets at FVTPL 17,239,197 14,253,850 - 31,493,047

2018

Financial assets at FVTPL u 9,698,856 10,310,561 - 20,009,417

(c)

· Dividends receivable

· Sundy receivables

· Cash at banks

· Net amount due to Provider

· Amount due to Trustee

· Amount due to PPA

· Sundry payable and accrued expenses

19. RISK MANAGEMENT POLICIES

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.

The Fund is exposed to a variety of risks that include market risk, credit risk, liquidity risk,

single issuer risk, regulatory risk, country risk, management risk and non-compliance risk.

Risk management is carried out by closely monitoring, measuring and mitigating the above

said risks, careful selection of investments coupled with stringent compliance to 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.

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:

techniques which use inputs which have a significant effect on the recorded

fair value that are not based on observable market data.

The following table shows an analysis of financial instruments recorded at fair value by

the level of the fair value hierarchy:

Financial instruments that are not carried at fair value and whose carrying

amounts are reasonable approximation of fair value

45


19. RISK MANAGEMENT POLICIES (CONT'D.)

(a) Market risk

(i) Price risk

Percentage movements in

price by: 2019 2018

RM RM

-5.00% (1,574,652) (1,000,471)

+5.00% 1,574,652 1,000,471

(ii) Currency risk

Percentage movements in

foreign currencies than the 2019 2018

Fund’s functional currency: RM RM

-5.00% (619,554) (373,194)

+5.00% 619,554 373,194

Market risk, in general, is the risk that the value of a portfolio would decrease due to

changes in market risk factors such as equity prices, interest rates, foreign exchange

rates and commodity prices.

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 quoted

investments. In managing price risk, the Provider actively monitors the performance

and risk profile of the investment portfolio.

The result below summarised the price risk sensitivity of the Fund’s NAV due to

movements of price by -5.00% and +5.00% respectively:

Currency risk is associated with the Fund’s assets and liabilities that are

denominated in currencies other than the Fund’s functional currency. Currency risk

refers to the potential loss the Fund might face due to unfavorable fluctuations of

currencies other than the Fund’s functional currency against the Fund’s functional

currency.

The result below summarised the currency risk sensitivity of the Fund’s NAV due to

appreciation/depreciation of the Fund’s functional currency against currencies other

than the Fund’s base currency:

Sensitivity of the Fund’s NAV

Sensitivity of the Fund’s NAV

46



(a) Market risk (cont'd.)

(ii) Currency risk (cont'd.)

Assets/(liabilities) RM % of net RM % of net

denominated in equivalent asset value equivalent asset value

Hong Kong Dollar

Investments 3,614,863 8.23 2,306,878 6.95

Dividends receivable 8,271 0.02 3,583 0.01

3,623,134 8.25 2,310,461 6.96

Indonesian Rupiah

Investments 1,099,059 2.50 444,953 1.34

Sundry payable - - (98,077) (0.30)

1,099,059 2.50 346,876 1.04

South Korean Won

Investments 1,163,735 2.65 1,005,446 3.03

Cash at bank 37,736 0.09 - -

Sundry payable (52,273) (0.12) - -

1,149,198 2.62 1,005,446 3.03

Philippine Peso

Investments 862,361 1.96 256,798 0.77

Sundry receivable 67,162 0.15 - -

Sundry payable (8,547) (0.02) - -

920,976 2.09 256,798 0.77

Singapore Dollar

Investments 2,975,861 6.77 1,443,112 4.35

Dividends receivable 2,290 0.01 1,063 -*

Cash at bank 2,827 0.01 - -

2,980,978 6.79 1,444,175 4.35

New Taiwan Dollar

Investments 297,377 0.68 1,433,092 4.31

Cash at bank 143,137 0.33 336,286 1.01

440,514 1.01 1,769,378 5.32

Thai Baht

Investments 103,600 0.24 330,751 1.00

Dividends receivable 1,893 -* - -

105,493 0.24 330,751 1.00

2019 2018

The net unhedged financial assets and financial liabilities of the Fund that are not

denominated in Fund’s functional currency are as follows:

47



(a) Market risk (cont'd.)

(ii) Currency risk (cont'd.)

Assets/(liabilities) RM % of net RM % of net

denominated in equivalent asset value equivalent asset value

United States Dollar

Investments 2,303,011 5.25 - -

* represents less than 0.01%

(b) Credit risk

(c) Liquidity risk

(d) Single issuer risk

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.

The Fund’s financial liabilities have contractual maturities of not more than six months.

Internal policy restricts the Fund 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 on

internal/external ratings.

Liquidity risk is defined as the risk that the Fund will encounter difficulty in meeting

obligations associated with financial liabilities that are settled by delivering cash or

another financial asset. Exposure to liquidity risk arises because of the possibility that

the Fund could be required to pay its liabilities or redeem its units earlier than expected.

This is also the risk of the Fund experiencing large redemptions, when the Investment

Provider could be forced to sell large volumes of its holdings at unfavorable prices to

meet redemption requirements.

Cash at banks are held for liquidity purposes and are not exposed to significant credit

risk.

Credit risk is the risk that the counterparty to a financial instrument will cause a financial

loss to the Fund by failing to discharge an obligation. Credit risk applies to

dividends/distributions receivable. The issuer of such instruments may not be able to

fulfill the required interest payments or repay the principal invested or amount owing.

These risks may cause the Fund’s investments to fluctuate in value.

2019 2018

48



(e) Regulatory risk

(f) Country risk

(g) Management risk

(h) Non-compliance risk

20. CAPITAL MANAGEMENT

No changes were made in the objective, policies or processes during the financial years

ended 31 August 2019 and 31 August 2018.

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 investments.

Any changes in national policies and regulations may have effects on the capital market

and the net asset value of the Fund.

The risk of price fluctuation in foreign securities may arise due to political, financial and

economic events in foreign countries. If this occurs, there is a possibility that the net

asset value of the Fund may be adversely affected.

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.

Non-compliance risk may adversely affect the 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.

49


STATEMENT BY THE PROVIDER


I, Goh Wee Peng, for and on behalf of the Provider, AmFunds Management Berhad, for AmPRS

– Growth Fund (the “Fund”) 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 2019 and the

comprehensive income, the changes in equity and cash flows of the Fund for the financial year

then ended.

25 October 2019

Goh Wee Peng

Chief Executive Officer

AmFunds Management Berhad

For and on behalf of the Provider

50

TRUSTEE’S REPORT

TO THE MEMBERS OF AMPRS - GROWTH FUND

(a)

(b)

(c)

For Deutsche Trustees Malaysia Berhad

Ng Hon Leong Richard Lim Hock Seng

Head, Trustee Operations Chief Executive Officer


25 October 2019

We have acted as Trustee for AmPRS - Growth Fund (the “Fund”) for the financial year ended 31

August 2019. 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:-

creation and cancellation of units for the Fund are carried out in accordance with the Deed(s)

of the Fund and any regulatory requirements.

valuation and pricing for the Fund is carried out in accordance with the Deed(s) of the Fund

and any regulatory requirements; and

limitations imposed on the investment powers of the PRS Provider under the Deed(s), the

Securities Commission’s Guidelines on Private Retirement Schemes, the Capital Markets and

Services Act 2007 and other applicable laws;

51

52

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 & 10th 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 2032 2888 | aminvest.com. | aminvestprs@aminvest. com

AmFunds Management Berhad (154432-A)

Annual Report for AmPRS-Growth Fund · Growth Fund (“Fund”) for the financial year ended 31...

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Transcript of Annual Report for AmPRS-Growth Fund · Growth Fund (“Fund”) for the financial year ended 31...