KENANGA CASH PLUS FUND › KIB › KIB.Application.Web › docs › Inter… · 70000 Seremban,...

INTERIM REPORT

For the Financial Period from 1 November 2014 to 30 April 2015

KENANGA CASH PLUS FUND

Kenanga Investors Berhad (353563-P)

KENANGA CASH PLUS FUND

Contents Page

Corporate Directory ii

Directory of Manager’s Offi ces iii

Fund Information 1

Manager’s Report 2 - 5

Fund Performance 6 - 8

Trustee’s Report 9

Statement by the Manager 10

Financial Statement 11 - 36

ii Kenanga Cash Plus Fund Interim Report

CORPORATE DIRECTORY

MANAGER: KENANGA INVESTORS BERHAD (Company No. 353563-P) REGISTERED OFFICE BUSINESS OFFICEKenanga Investors Berhad (KIB) Suite 12.02, 12th Floor, Kenanga International,8th Floor, Kenanga International, Jalan Sultan Ismail,Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia.50250 Kuala Lumpur, Malaysia. Tel: 03-2057 3688Tel: 03-2162 1490 Fax: 03-2161 8807Fax: 03-2161 4990 E-mail: [email protected] Website: www.KenangaInvestors.com.my

BOARD OF DIRECTORS INVESTMENT COMMITTEEDatuk Syed Ahmad Alwee Alsree Bruce Kho Yaw Huat (Chairman) (Chairman)Syed Zafi len Syed Alwee Syed Zafi len Syed Alwee (Independent Director) (Independent Member)YM Raja Dato’ Seri Abdul Aziz bin Raja Salim Peter John Rayner (Independent Director) (Independent Member)Peter John Rayner Ismitz Matthew De Alwis (Independent Director) (Independent Member)Imran Devindran bin Abdullah (Independent Director)Bruce Kho Yaw HuatIsmitz Matthew De Alwis

COMPANY SECRETARY: NORLIZA ABD SAMAD (MAICSA 7011089)9th Floor, Kenanga International, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia.Tel: 03-2162 1490 Fax: 03-2161 4990 TRUSTEE: CIMB COMMERCE TRUSTEE BERHAD (Company No. 313031-A) REGISTERED OFFICE BUSINESS OFFICE Level 13, Menara CIMB Level 21, Menara CIMBJalan Stesen Sentral 2 Jalan Stesen Sentral 2Kuala Lumpur Sentral Kuala Lumpur Sentral50490 Kuala Lumpur. 50490 Kuala Lumpur.Tel: 03-2261 8888 Tel: 03-2261 8888Fax: 03-2261 0099 Fax: 03-2261 9889Website: www.cimb.com

AUDITOR: ERNST & YOUNG (AF: 0039)Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur.Tel: 03-7495 8000 Fax: 03-2095 5332

TAX ADVISER: ERNST & YOUNG TAX CONSULTANTS SDN BHD (Company No. 179793-K)Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur.Tel: 03-7495 8000 Fax: 03-2095 5332

MEMBERSHIP: FEDERATION OF INVESTMENT MANAGERS MALAYSIA (FIMM)19-06-1, 6th Floor, Wisma Tune, PNB Damansara, 19 Lorong Dungun, Damansara Heights, 50490 Kuala Lumpur. Tel: 03-2093 2600 Fax: 03-2093 2700 Website: www.fi mm.com.my

iiiKenanga Cash Plus Fund Interim Report

DIRECTORY OF MANAGER’S OFFICES

REGIONAL BRANCH OFFICES:

Kuala LumpurSuite 12.02, 12th FloorKenanga InternationalJalan Sultan Ismail50250 Kuala Lumpur, MalaysiaTel : 03-2057 3688 Fax : 03-2161 8807

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

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

Penang16th Floor, Menara Boustead Penang 39, Jalan Sultan Ahmad Shah 10050 Penang. Tel : 04-227 3788 Fax : 04-210 6644

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

Johor BahruLot 11.03, 11th FloorMenara MSC Cyberport5 Jalan Bukit Meldrum80300 Johor Bahru, JohorTel : 07-223 7505 / 4798 Fax : 07-223 4802

Kuching1st Floor, No 71, Lot 7Lot 10900, Jalan Tun Jugah93350 Kuching, SarawakTel : 082-572 228 Fax : 082-572 229

Kota KinabaluA-03-11, 3rd FloorBlock A Warisan SquareJalan Tun Fuad Stephens88000 Kota Kinabalu, SabahTel : 088-447 089 / 088-448 106 Fax : 088-447 039

IpohSuite 1, 2nd Floor,63 Persiaran Greenhill,30450 Ipoh, Perak, MalaysiaTel : 05-254 7573 / 7570 Fax : 05-254 7606

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

1 Kenanga Cash Plus Fund Interim Report

1. FUND INFORMATION

1.1 Fund Name

Kenanga Cash Plus Fund (KCPF or the Fund)

1.2 Fund Category / Type

Fixed Income / Income

1.3 Investment Objective

The Fund aims to provide investors a regular stream of income through investments in short to medium-term fi xed income instruments with high level of liquidity.

1.4 Investment Strategy

To achieve the objective of the Fund, it will invest in high quality short to medium-term fi xed income instruments with minimum credit ratings of A3 or P2 (by RAM) or equivalent rating by other recognised rating agencies.

1.5 Duration

The Fund was launched on 26 October 2006 and it shall exist as long as it appears to the Manager and the Trustee that it is in the interests of the unit holders for it to continue.

1.6 Performance Benchmark

Maybank 1-month fi xed deposit rate

1.7 Distribution Policy

The Fund seeks to distribute income on a monthly basis.

1.8 Breakdown of unit holdings of KCPF as at 30 April 2015

Size of holdings No. of unitholders No. of units held 5,000 and below 3,535 4,144,132 5,001 - 10,000 218 1,481,094 10,001-50,000 135 2,549,012 50,001-500,000 30 4,801,327 500,001 and above 6 17,617,563 Total 3,924 30,593,129

2Kenanga Cash Plus Fund Interim Report

2. MANAGER’S REPORT

2.1 Explanation on whether the Fund has achieved its investment objective.

During the fi nancial period under review, the Fund fulfi lled its investment objective; having invested primarily in short to medium-term investment-grade fi xed income instruments and had made distributions to provide a regular stream of income to investors.

2.2 Comparison between the Fund’s performance and performance of the benchmark

Performance Chart Since Launch (26/10/2006– 30/04/2015)Kenanga Cash Plus Fund vs Maybank 1-Month Fixed Deposit Rate

Source: Lipper

2.3 Investment strategies and policies employed during the period under review

For the fi nancial period under review, the Fund invested primarily in bank deposits for liquidity and short to medium term investment grade bonds for yield enhancement.

2.4 The Fund’s asset allocation as at 30 April 2015 and comparison with the previous fi nancial period.

Asset 30 April 2015 30 April 2014 Unquoted corporate bonds 40.5% 51.7% Commercial papers 3.2% 19.4% Short term deposits and cash 56.3% 28.9%

Reason for the differences in asset allocation

The change in asset allocation was primarily due to investment activities and liquidity management. Higher percentage of short term deposit as at 30 April 2015 was meant for additional investment in corporate bonds and standby liquidity for ad hoc redemption.


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

Period under review Kenanga Cash Plus Fund 1.60% Maybank 1-Month Fixed Deposit Rate 1.57%

Source: Lipper

The Fund outperformed its benchmark for the fi nancial period under review due to higher rates obtained for short term deposits. Investments in short term corporate bonds as well as commercial papers continued to enhance the fund returns.

2.6 Review of the market

Money Market Review

During the Monetary Policy Committee (MPC) meetings in Q1 2015, Bank Negara Malaysia (BNM) had decided to maintain the Overnight Policy Rate (OPR) at 3.25 percent. According to Bank Negara, the global economic expansion remains moderate, with divergent growth momentum across economies in the fi rst quarter of 2015. The downside risks to the global economic outlook remained due the weak growth momentum in a number of major economies. The uncertainties in the policy environment are also contributing to the shift in sentiments in the international fi nancial markets.

While the Malaysian fi nancial markets have been affected by these global developments, there remains ample liquidity in the domestic fi nancial system with continued orderly functioning of the fi nancial markets. The banking institutions are also operating with strong capital and liquidity buffers, and continue to provide fi nancing to the economy.

As at April 2015, the banking system loan growth banking system loan growth moderated to 8.8% year-on-year in April 2015 compared to 9.2% in March 2015, mainly due to slower business loan growth and household loan growth.

Malaysia’s Consumer Price Index (CPI) grew to 1.8% year-on-year in April compared to 0.9% in March 2015. Core infl ation advanced to 1.2% year-on-year in April compared to 0.6% in March 2015. 4-Month-2015 average infl ation came in at 1.0% year-on-year versus 3.4% in 4-Month-2014.

Foreign shareholding in Malaysia’s government securities (MGS) increased to 45.7% in March 2015, compared to 45.1% in February. Foreign holdings of MGS plus Government Islamic Issuance (GII) also rose to 30.0% in March from 29.3% the month before. Corporate bond trading yields also generally fell in April (by 1-4bps), although at a smaller quantum compared to MGS, thus resulting in a slight widening of credit spreads. Trading activity was led by interest on the short and middle part of the credit curve, encompassing Government Guarantee (GG) names as well as AAA and AA rated papers


2.6 Review of the market (Contd.)

Money Market Outlook

BNM reiterates that at the current level, the stance of monetary policy remains accommodative and is assessed to be appropriate given the developments in monetary and fi nancial conditions. There is still ample liquidity in the domestic fi nancial system with continued orderly functioning of the fi nancial markets.

Infl ation is expected to start trending upwards at a gradual pace. With the implementation of Goods and Service Tax (GST), an oil price at around or more than US$50 per barrel and the weaker ringgit, infl ation should revert to an upward trajectory in 2Q15 though the degree of the rise will depend on oil price fl uctuations in 2H15. However, the rise should be kept in check by the absence of petrol price adjustments in April 2015, the government’s efforts to prevent profi teering from the GST, lower broadband prices and the nationwide campaign to lower the prices of goods with the cooperation of a wide range of retailers and producers.

Loan growth in 2015 will continue to face headwinds as economic growth remains moderates, with low oil prices and consumer sentiment, both businesses’ and households’ appetite for more debt would stay side line, especially after the implementation of GST.

Given the moderation in domestic and global growth expectations as well as BNM’s guidance for a steady growth path, we expect OPR to be on hold for the year ahead, although there is some possibility of a rate cut later in the year.

Over the medium to long term, bond yields are likely to eventually move upward, unless a new crisis surfaces. However, in the short to intermediate term, yields are likely to continue range trading as the global economic growth remains uneven and volatile, coupled with geopolitical tensions and other potential tail-risk events.

2.7 Income Distribution

For the fi nancial period under reviewed. The Fund has declared the followings income distribution:

Gross/Net distribution Cum-NAV Ex-NAV per unit per unit per unit Distribution Date (sen) (RM) (RM)

25 November 2014 0.28 0.9963 0.9935 23 December 2014 0.28 0.9953 0.9925 27 January 2015 0.20 0.9954 0.9934 24 February 2015 0.25 0.9954 0.9929 25 March 2015 0.23 0.9963 0.9940 22 April 2015 0.23 0.9967 0.9944 1.47


2.8 Details of any unit split exercise

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

2.9 Signifi cant changes in the state of affair of the Fund during the fi nancial period

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

2.10 Circumstances that materially affect any interests of the unitholders

During the fi nancial period under review, there were no circumstances that materially affected any interests of the unitholders.

2.11 Rebates & Soft commissions

Any rebates received are channeled back to the Fund. On the other hand, soft commissions received from the stockbrokers for goods and services such as technical analysis software, fundamental database, fi nancial wire services, stock quotation system and portfolio management software incidental to investment management of the Fund shall be retained by the Manager. For the fi nancial period under review, the Manager did not receive any rebates or soft commissions from stockbrokers.


3. FUND PERFORMANCE

3.1 Details of portfolio composition of Kenanga Cash Plus Fund (“the Fund”) for the fi nancial period as at 30 April 2015 against last 3 fi nancial years as at 31 October are as follows:

a. Distribution among industry sectors and category of investments:

As at FY FY FY 30.4.2015 2014 2013 2012 % % % %

Unquoted corporate bonds 40.5 49.8 42.4 32.9 Unquoted government guaranteed bonds - - 0.4 - Commercial papers 3.2 - 8.4 24.9 Short term Islamic deposits and cash 56.3 50.2 48.8 42.2 100.0 100.0 100.0 100.0

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

b. Distribution among markets

The Fund invests in local unquoted bonds, commercial papers and cash instruments only.


3.2 Performance details of the Fund for the fi nancial period ended 30 April 2015 against last 3 fi nancial years ended 31 October are as follows:

Period 1.11.2014 to FY FY FY 30.4.2015 2014 2013 2012

Net asset value (“NAV”) (RM Million) 30.45* 33.25 119.12 160.34 Units in circulation (Million) 30.59 33.43 119.41 160.59 NAV per unit (RM) 0.9955* 0.9944 0.9975 0.9984 Highest NAV per unit (RM) 0.9967 0.9994 1.0009 1.0007 Lowest NAV per unit (RM) 0.9925 0.9944 0.9969 0.9974 Total return (%) 1.60 2.85 2.83 2.99 - Capital growth (%) 0.11 -0.31 -0.09 0.06 - Income growth (%) 1.49 3.16 2.92 2.93 Gross distribution per unit (sen) 1.47 3.11 2.88 2.88 Net distribution per unit (sen) 1.47 3.11 2.88 2.88 Management expense ratio (“MER”) (%)1 0.39 0.66 0.62 0.62 Portfolio turnover ratio (“PTR”) (times)2 0.55 0.71 1.77 2.14

Note: Total return is the actual return of the Fund for the respective fi nancial period/years, computed based on NAV per unit and net of all fees.

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

1 MER is lower against previous fi nancial year as the computation is in respect of

6 months only.

2 The lower PTR was due to the fewer rebalancing trades, as the Fund maintained high cash levels to accommodate fund fl ows during the fi nancial period under review.

* Based on bid price fair valuation method on all investments held by the Fund as at 30 April 2015, the NAV and NAV per unit would be RM30.45 million and RM0.9954 respectively.

(As disclosed under Note 13 of the fi nancial statements)


3.3 Average total return of the Fund

1 Year 3 Years 5 Years 30 Apr 14 30 Apr 12 30 Apr 10 - 30 Apr 15 - 30 Apr 15 - 30 Apr 15

Kenanga Cash Plus Fund 3.08% 3.02% 3.06% Maybank 1-Month Fixed Deposit Rate 3.14% 3.17% 3.17%

Source: Lipper

3.4 Annual total return of the Fund

Period under review 1 Year 1 Year 1 Year 1 Year 1 Year 31 Oct 14 31 Oct 13 31 Oct 12 31 Oct 11 31 Oct 10 31 Oct 09 - 30 Apr 15 -31 Oct 14 -31 Oct 13 -31 Oct 12 -31 Oct 11 -31 Oct 10

Kenanga Cash Plus Fund 1.60% 2.85% 2.83% 2.99% 2.96% 2.31% Maybank 1-Month Fixed Deposit Rate 1.57% 3.06% 3.04% 3.05% 2.89% 2.35%

Source: Lipper

Investors are reminded that past performance is not necessarily indicative of future performance. Unit prices and investment returns may fl uctuate.


4 TRUSTEE’S REPORT TO THE UNITHOLDERS OF KENANGA CASH PLUS FUND

We, CIMB COMMERCE TRUSTEE BERHAD (“the Trustee”), being the Trustee of KENANGA CASH PLUS FUND (“the Fund”) are of the opinion that KENANGA INVESTORS BERHAD (“the Manager”), acting in the capacity of Manager of the Fund, has fulfi lled its duties in the following manner for the fi nancial period ended 30 April 2015:

a) The Fund has been managed in accordance with the limitations imposed on the

investment powers of the Manager and the Trustee under the Deeds, the Securities Commission Malaysia’s Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007 (as amended from time to time) and other applicable laws;

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

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

and relevant regulatory requirements; and d) The distribution of returns by the Fund is tied to and refl ects the investment objective

of the Fund.

For and on behalf of CIMB COMMERCE TRUSTEE BERHAD (313031-A)

LEE KOOI YOKE Chief Operating Offi cer

Kuala Lumpur, Malaysia 23 June 2015


5. STATEMENT BY THE MANAGER

We, Ismitz Matthew De Alwis and Bruce Kho Yaw Huat, being the directors of Kenanga Investors Berhad, do hereby state that, in the opinion of the Manager, the accompanying statement of fi nancial position as at 30 April 2015 and the related statement of comprehensive income, statement of changes in net asset value and statement of cash fl ows for the fi nancial period ended 30 April 2015 together with notes thereto, are drawn up in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards so as to give a true and fair view of the fi nancial position of Kenanga Cash Plus Fund as at 30 April 2015 and of its fi nancial performance and cash fl ows for the period then ended and comply with the requirements of the Deed.

For and on behalf of the Manager Kenanga Investors Berhad

Ismitz Matthew De Alwis Bruce Kho Yaw Huat

Kuala Lumpur, Malaysia

23 June 2015

The accompanying notes form an integral part of the fi nancial statements.

Kenanga Cash Plus Fund Interim Report11

6. FINANCIAL STATEMENT

6.1 STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL PERIOD 1 NOVEMBER 2014 TO 30 APRIL 2015 (unaudited)

1.11.2014 to 1.11.2013 to Note 30.4.2015 30.4.2014 RM RM

INVESTMENT INCOMEInterest income 645,978 1,917,567Net gain/(loss) from investments: - Financial assets at fair value through profi t or loss (“FVTPL”) 4 13,003 (20,083) 658,981 1,897,484

EXPENSESManager’s fee 5 84,023 278,333Trustee’s fee 6 4,542 44,884Auditors’ remuneration 3,471 2,975Tax agent’s fee 1,934 1,240Administration expenses 36,665 27,386 130,635 354,818

NET INCOME BEFORE TAX 528,346 1,542,666

Income tax 7 - -

NET INCOME AFTER TAX, REPRESENTING TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 528,346 1,542,666 Net income after tax is made up as follows: Realised gain 525,173 1,567,365 Unrealised gain/(loss) 4 3,173 (24,699) 528,346 1,542,666

Distribution for the period: Gross/Net distribution (RM) 8 513,020 1,581,359Gross/Net distribution per unit (sen) 8 1.47 1.47


Kenanga Cash Plus Fund Interim Report 12

6.2 STATEMENT OF FINANCIAL POSITION AS AT 30 APRIL 2015 (unaudited)

Note 30.4.2015 30.4.2014 RM RM

INVESTMENTSFinancial assets at FVTPL 4 13,416,694 36,647,693Short term deposits 9 17,281,715 14,930,316 30,698,409 51,578,009

OTHER ASSETSOther receivables 10 1,682,161 10,090,895Cash at bank 10,328 6,684 1,692,489 10,097,579

TOTAL ASSETS 32,390,898 61,675,588 LIABILITIESAmount due to Manager 15,002 32,912Amount due to Trustee 1,504 10,525Other payables 11 1,921,749 9,053Distribution payables - 754TOTAL LIABILITIES 1,938,255 53,244

EQUITY

Unitholders’ contribution 29,730,041 60,871,635Retained earnings 722,602 750,709NET ASSET VALUE (“NAV”) ATTRIBUTABLE TO UNITHOLDERS 12 30,452,643 61,622,344

TOTAL EQUITY AND LIABILITIES 32,390,898 61,675,588

NUMBER OF UNITS IN CIRCULATION 12(a) 30,593,129 61,834,951

NET ASSET VALUE PER UNIT (RM) 13 0.9954 0.9966


Kenanga Cash Plus Fund Interim Report13

6.3 STATEMENT OF CHANGES IN NET ASSET VALUE FOR THE FINANCIAL PERIOD 1 NOVEMBER 2014 TO 30 APRIL 2015 (unaudited)

Unitholders’ Retained Total Note contribution earnings NAV

RM RM RM

1.11.2014 to 30.4.2015At beginning of the period 32,557,150 701,828 33,258,978Total comprehensive income - 528,346 528,346Creation of units 12(a) 36,799,751 - 36,799,751Cancellation of units 12(a) (40,136,569) - (40,136,569)Distribution equalisation 12(a) 4,431 - 4,431Income distribution 8 (5,448) (507,572) (513,020)Reinvestment of income distributed 12(a) 510,726 - 510,726At end of the period 29,730,041 722,602 30,452,643 1.11.2013 to 30.4.2014At beginning of the period 118,319,006 792,065 119,111,071Total comprehensive income - 1,542,666 1,542,666Creation of units 12(a) 37,013,021 - 37,013,021Cancellation of units 12(a) (95,985,822) - (95,985,822)Distribution equalisation 12(a) (53,649) - (53,649)Income distribution 8 2,663 (1,584,022) (1,581,359)Reinvestment of income distributed 12(a) 1,576,416 - 1,576,416At end of the period 60,871,635 750,709 61,622,344


Kenanga Cash Plus Fund Interim Report 14

6.4 STATEMENT OF CASH FLOWS FOR THE FINANCIAL PERIOD 1 NOVEMBER 2014 TO 30 APRIL 2015 (unaudited)

1.11.2014 to 1.11.2013 to 30.4.2015 30.4.2014 RM RM

CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES

Proceeds from sale of fi nancial assets at FVTPL 18,337,591 43,219,004Purchase of fi nancial assets at FVTPL (15,042,378) (29,374,944)Interest received 752,872 2,311,042Manager’s fee paid (85,478) (298,457)Trustee’s fee paid (5,342) (41,784)Auditors’ remuneration paid - (6,000)Tax agent’s fee paid - (3,206)Payment for other fees and expenses (32,953) (39,842)Net cash generated from operating and investing activities 3,924,312 15,765,813

CASH FLOWS FROM FINANCING ACTIVITIES

Cash received from units created 36,828,667 37,041,146 Cash paid on units cancelled (40,161,054) (96,067,596)Distribution paid (3,139) (4,189)Net cash used in fi nancing activities (3,335,526) (59,030,639) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 588,786 (43,264,826)CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 16,703,257 58,201,826CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 17,292,043 14,937,000 Cash and cash equivalents comprise: Cash at bank 10,328 6,684 Short term deposits 17,281,715 14,930,316 17,292,043 14,937,000


6.5 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 30 APRIL 2015 (unaudited)

1. THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES

Kenanga Cash Plus Fund (“the Fund”) was constituted pursuant to the executed Deed dated 29 August 2006 (collectively, together with deeds supplemental thereto, referred to as “the Deed”) between the Manager, Kenanga Funds Berhad, and CIMB Commerce Trustee Berhad (“the Trustee”). The Fund commenced operations on 26 October 2006 and will continue to be in operation until terminated by the Trustee as provided under Clause 37 of the Deed.

Pursuant to the executed First Supplemental Deed dated 15 May 2013 between Kenanga Investors Berhad and CIMB Commerce Trustee Berhad, Kenanga Investors Berhad was appointed as the Manager of the Fund with effect from 8 June 2013.

Kenanga Investors Berhad is a wholly-owned subsidiary of Kenanga Investment Bank Berhad, which in turn is a wholly-owned subsidiary of K&N Kenanga Holdings Berhad, listed on the Main Board of Bursa Malaysia Securities Berhad. All of these companies are incorporated in Malaysia.

The principal place of business of the Manager is Suite 12.02, 12th Floor, Kenanga International, Jalan Sultan Ismail, 50250 Kuala Lumpur.

The Fund seeks to provide investors a regular stream of income through investments in short to medium term fi xed income instruments with high level of liquidity. To achieve the objective of the Fund, it will invest in high quality short to medium term fi xed income instruments with minimum credit ratings of A3 or P2 (by RAM) or equivalent rating by other recognized rating agencies.

The unaudited fi nancial statements were authorised for issue by the Chief Executive Offi cer of the Manager on 23 June 2015.

2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

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

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


2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) a. Market Risk Market risk is the risk that the fair value or future cash fl ows of a fi nancial asset

at FVTPL will fl uctuate because of changes in market prices. Market risk includes interest rate risk.

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

The Manager manages the risk of unfavorable changes in prices by cautious review of the investments and continuous monitoring of their performance and risk profi les.

i. Interest rate risk

The risk refers to how the changes in the interest rate environment would affect the performance of the Fund’s investments. Rates offered by the fi nancial institutions will fl uctuate according to the Overnight Policy Rate determined by Bank Negara Malaysia and this has direct correlation with the Fund’s investments in unquoted corporate bonds, commercial papers and deposits.

The Fund’s exposure to the interest rate risk is mainly confi ned to unquoted corporate bonds and commercial papers.

Interest rate risk sensitivity

The following table demonstrates the sensitivity of the Fund’s profi t for the period to a reasonably possible change in rate of return, with all other variables held constant:

Effect on profi t Changes in rate for the period Increase/(Decrease) Increase/(Decrease) Basis points RM

30.4.2015 Financial assets at FVTPL 5/(5) 6,641/(6,641) 30.4.2014 Financial assets at FVTPL 5/(5) 18,125/(18,125)

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


2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) a. Market Risk (Contd.) i. Interest rate risk (Contd.)

Interest rate risk exposure

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

Non- Weighted exposure average Above to interest effective Up to 1 year - rate interest 1 year 5 years movement Total rate* RM RM RM RM % 30.4.2015 Assets Financial assets at FVTPL 1,193,106 12,088,633 134,955 13,416,694 4.64 Short term deposits 17,281,715 - - 17,281,715 3.27 Other assets 1,547 - 1,690,942 1,692,489 18,476,368 12,088,633 1,825,897 32,390,898

Liabilities Other liabilities - - 1,938,254 1,938,254

Total interest rate sensitivity gap 18,476,368 12,088,633 (112,358) 30,452,643

30.4.2014 Assets Financial assets at FVTPL 23,088,472 13,160,688 398,533 36,647,693 4.44 Short term deposits 14,930,316 - - 14,930,316 2.99 Other assets 2,243 - 10,095,336 10,097,579 38,021,031 13,160,688 10,493,869 61,675,588

Liabilities Other liabilities - - 53,244 53,244

Total interest rate sensitivity gap 38,021,031 13,160,688 10,440,625 61,622,344

* Computed based on interest-bearing assets only.


2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) b. Credit Risk Credit risk is the risk that the counterparty to a fi nancial instrument will cause a

fi nancial loss to the Fund by failing to discharge an obligation. The Manager manages the credit risk by undertaking credit evaluation to minimise such risk.

i. Credit risk exposure

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

ii. Financial assets that are either past due or impaired

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

iii. Credit quality of fi nancial assets

The Fund invests only in unquoted corporate bonds and commercial papers with at least investment grade credit rating by a credit rating agency. The following table analyses the Fund’s portfolio of unquoted corporate bonds and commercial papers by rating category:

Unquoted corporate bonds

Percentage of total unquoted corporate bonds Percentage of NAV 30.4.2015 30.4.2014 30.4.2015 30.4.2014 % % % %

Rating AA3 52.2 13.3 21.3 5.8 AA2 32.5 46.8 13.2 20.3 AAA 15.3 1.6 6.3 0.7 AA1 - 26.8 - 11.6 AA- - 7.7 - 3.3 AA+ - 3.8 - 1.6 100.0 100.0 40.8 43.3

Commercial papers

Percentage of total Commercial papers Percentage of NAV 30.4.2015 30.4.2014 30.4.2015 30.4.2014 % % % %

Rating P1 100.0 100.0 3.3 16.2


2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) b. Credit Risk

iii. Credit quality of fi nancial assets (Contd.)

The Fund invests in deposits only with reputable licensed fi nancial institutions. The following table analyses the licensed fi nancial institutions by rating category:

Short term deposits

Percentage of total Short term deposits Percentage of NAV 30.4.2015 30.4.2014 30.4.2015 30.4.2014 % % % %

Rating P1 100.0 100.0 56.7 24.2

iv. Credit risk concentration

Concentration risk is monitored and managed based on sectoral distribution. The table below analyses the Fund’s portfolio of unquoted corporate bonds by sectoral distribution:

Percentage of total unquoted corporate bonds Percentage of NAV 30.4.2014 30.4.2013 30.4.2014 30.4.2013 % % % % Plantations 43.5 - 17.7 - Finance 22.5 77.4 9.2 33.6 Properties 17.7 - 7.2 - Utilities 8.2 11.5 3.4 4.9 Industrial products 8.1 - 3.3 - Consumer products - 11.1 - 4.8 100.0 100.0 40.8 43.3


2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

c. Liquidity Risk

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

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

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

Above 1 year Note Up to 1 year - 5 years Total

RM RM RM

30.4.2015 Assets Financial assets at FVTPL 1,328,061 12,088,633 13,416,694 Short term deposits 17,281,715 - 17,281,715 Other assets 1,692,489 - 1,692,489 (i) 20,302,265 12,088,633 32,390,898

Liabilities Other liabilities (ii) 1,938,255 - 1,938,255

Equity (iii) 30,452,643 - 30,452,643

Liquidity gap (12,088,633) 12,088,633 -

30.4.2014 Assets Financial assets at FVTPL 23,487,005 13,160,688 36,647,693 Short term deposits 14,930,316 - 14,930,316 Other assets 10,097,579 - 10,097,579 (i) 48,514,900 13,160,688 61,675,588

Liabilities Other liabilities (ii) 53,244 - 53,244

Equity (iii) 61,622,344 - 61,622,344

Liquidity gap (13,160,688) 13,160,688 -


2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) c. Liquidity Risk (Contd.)

i) Financial assets

Analysis of fi nancial assets at FVTPL into maturity groupings is based on the expected date on which these assets will be realised. For other assets, the analysis into maturity groupings is based on the remaining period from the end of the reporting period to the contractual maturity date or if earlier, the expected date on which the assets will be realised.

ii) Financial liabilities

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

iii) Equity

As unitholders can request for redemption of their units, they have been categorised as having a maturity of “up to 1 year”. As a result, it appears that the Fund has a liquidity gap within “up to 1 year”. However, the Fund believes that it would be able to liquidate its investments should the need arises to satisfy all the redemption requirements.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of Accounting

The fi nancial statements of the Fund have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRS”) as issued by Malaysian Accounting Standards Board (“MASB”) and International Financial Reporting Standards (“IFRS”) issued by International Accounting Standards Board (“IASB”).

The accounting policies adopted are consistent with those of the previous fi nancial period except for the adoption of the new and amended MFRS and Interpretation Committee (“IC”) Interpretations which became effective for the Fund on 1 November 2014. The adoption of the new and amended MFRS and IC Interpretations did not have any signifi cant impact on the fi nancial position or performance of the Fund.

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


3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

b. Standards, Amendments and Interpretations Issued But Not Yet Effective

As at the date of authorisation of these fi nancial statements, the following Standards, Amendments and Interpretations that have been issued by MASB will be effective for the Fund in future periods. The Fund intends to adopt the relevant standards when they become effective.

Effective for fi nancial period beginning Description on or after

Amendments to MFRS contained in the documents entitled “Annual Improvements 2010 - 2012 cycle” 1 July 2014 Amendments to MFRS contained in the documents entitled “Annual Improvements 2011 - 2013 cycle” 1 July 2014 Amendments to MFRS 119: Defi ned Benefi t Plans: Employee Contributions 1 July 2014 Amendments to MFRS contained in the documents entitled “Annual Improvements to MFRS 2012 - 2014 cycle” 1 January 2016 MFRS 14: Regulatory Deferral Accounts 1 January 2016 Amendments to MFRS 10, MFRS 12 and MFRS 128: Investment Entities: Applying the Consolidation Exception 1 January 2016 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 1 January 2016 Amendments to MFRS 11: Accounting for Acquisitions of Interests in Joint Operations 1 January 2016 Amendments to MFRS 101: Disclosure Initiatives 1 January 2016 Amendments to MFRS 116 and MFRS 138: Clarifi cation of Acceptable Methods of Depreciation and Amortisation 1 January 2016 Amendments to MFRS 116 and MFRS 141: Agriculture: Bearer Plants 1 January 2016 Amendments to MFRS 127: Equity Method in Separate Financial Statements 1 January 2016 MFRS 15: Revenue from Contracts with Customers 1 January 2017 MFRS 9: Financial Instruments (IFRS 9 Financial Instruments as issued by IASB in July 2014) 1 January 2018

The Fund will adopt the above pronouncements when they become effective in the respective fi nancial period. These pronouncements are not expected to have any signifi cant impact to the fi nancial statements of the Fund upon their initial application, other than MFRS 9.

MFRS 9 replaces MFRS 139 on the following requirements: classifi cation and measurement of fi nancial assets and fi nancial liabilities as defi ned in MFRS 139, impairment methodology and hedge accounting. The Fund is in the process of making an assessment of the impact of this Standard.



c. Financial Assets

Financial assets are classifi ed as fi nancial assets at FVTPL if they are held for trading or are designated as such upon initial recognition.

When fi nancial assets are recognised initially, they are measured at fair value, plus, in the case of fi nancial assets not at FVTPL, directly attributable transaction costs.

The Fund determines the classifi cation of its fi nancial assets at initial recognition.

i. Financial assets at FVTPL

Financial assets are classifi ed as fi nancial assets at FVTPL if they are held for trading or are designated as such upon initial recognition.

Financial assets held for trading include unquoted corporate bonds and commercial papers acquired principally for the purpose of selling in the near term.

Subsequent to initial recognition, fi nancial assets at FVTPL are measured at fair value. Changes in the fair value of those fi nancial instruments are recorded in profi t or loss.

Interest earned elements of such instruments are recorded in “interest income”.

ii. Receivables

Financial assets with fi xed or determinable payments that are not quoted in an active market are classifi ed as receivables.

Subsequent to initial recognition, receivables are measured at amortised cost using the effective interest method. Gain or loss is recognised in profi t or loss when the receivable is derecognised or impaired, and through the amortisation process.

A fi nancial asset is derecognised when the contractual right to receive cash fl ows from the asset has expired. On derecognition of a fi nancial asset, the difference between the carrying amount and the sum of the consideration received is recognised in profi t or loss.



d. Impairment of Financial Assets

The Fund assesses at each reporting date whether there is any objective evidence that a fi nancial asset is impaired.

To determine whether there is objective evidence that an impairment loss on fi nancial assets has been incurred; the Fund considers factors such as the probability of insolvency or signifi cant fi nancial diffi culties of the debtor and default or signifi cant delay in payments.

If any such evidence exists, the amount of impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash fl ows discounted at the fi nancial asset’s original effective rate of return. The impairment loss is recognised in profi t or loss.

The carrying amount of the fi nancial asset is reduced by the impairment loss directly for all fi nancial assets, with the exception of receivables, where the carrying amount is reduced through the use of an allowance account. When a receivable becomes uncollectible, it is written off against the allowance account.

If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent that the carrying amount of the assets does not exceed its amortised cost at the reversal date. The amount of reversal is recognised in profi t or loss.

e. Income

Income is recognised to the extent that it is probable that the economic benefi ts will fl ow to the Fund and the income can be reliably measured. Income is measured at the fair value of consideration received or receivable.

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

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

f. Cash and Cash Equivalents

For the purposes of the statement of cash fl ows, cash and cash equivalents include cash at bank and short term deposits with licensed fi nancial institutions.

g. Income Tax

Income tax on the profi t or loss for the fi nancial period comprises current tax. Current tax is the expected amount of income taxes payable in respect of the taxable profi t for the fi nancial period.



h. Unrealised Reserves

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

i. Financial Liabilities

Financial liabilities are classifi ed according to the substance of the contractual arrangements entered into and the defi nitions of a fi nancial liability.

Financial liabilities are recognised in the statement of fi nancial position when, and only when, the Fund becomes a party to the contractual provisions of the fi nancial instrument. The Fund’s fi nancial liabilities are classifi ed as other fi nancial liabilities. The Fund’s fi nancial liabilities are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

A fi nancial liability is derecognised when the obligation under the liability is extinguished. Gains and losses are recognised in profi t or loss when the liabilities are derecognised, and through the amortisation process.

j. Unitholders’ Contribution – NAV Attributable to Unitholders

The unitholders’ contribution to the Fund is classifi ed as equity instruments. Distribution equalisation represents the average amount of undistributed net income

included in the creation or cancellation price of units. This amount is either refunded to unitholders by way of distribution and/or adjusted accordingly when units are released back to the Trustee.

k. Functional and Presentation Currency The fi nancial statements of the Fund are measured using the currency of the primary

economic environment in which the Fund operates (“the functional currency”). The fi nancial statements are presented in Ringgit Malaysia (“RM”), which is also the Fund’s functional currency.

l. Distribution

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



m. Signifi cant Accounting Judgments and Estimates

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

i. Critical judgments made in applying accounting policies

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

ii. Key sources of estimation uncertainty

There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a signifi cant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next fi nancial period.

4. FINANCIAL ASSETS AT FVTPL

30.4.2015 30.4.2014 RM RM Financial assets held for trading, at FVTPL: Unquoted corporate bonds 12,424,475 26,655,583 Commercial papers 992,219 9,992,110 13,416,694 36,647,693

1.11.2014 1.11.2013 to 30.4.2015 to 30.4.2014 RM RM

Net gain/(loss) on fi nancial assets at FVTPL comprised: Realised gain on disposals 9,830 4,616 Unrealised changes in fair values 3,173 (24,699) 13,003 (20,083)


4. FINANCIAL ASSETS AT FVTPL (CONTD.)

Details of fi nancial assets at FVTPL as at 30 April 2015:

Aggregate Fair Percentage Quantity cost value of NAV

RM RM %

Unquoted corporate bonds

ADCB Finance (Cayman) Limited maturing on 02/09/2015 200,000 202,734 202,739 0.7 Bahrain Mumtalakat Holding Company B.S.C maturing on 30/04/2018 1,000,000 1,003,598 1,007,549 3.3 Cagamas Berhad maturing on 29/03/2019 650,000 685,297 684,376 2.2 First Resources Limited maturing on 08/12/2017 600,000 608,700 609,460 2.0 First Resources Limited maturing on 31/07/2017 500,000 505,809 506,995 1.7 Golden Assets International Finance Limited maturing on 03/08/2018 2,500,000 2,499,653 2,494,279 8.2 Golden Assets International Finance Limited maturing on 17/11/2017 1,780,000 1,785,278 1,787,348 5.9 Manjung Island Energy Berhad maturing on 23/11/2018 1,000,000 1,013,992 1,018,305 3.3 Perbadanan Kemajuan Negeri Selangor maturing on 28/10/2016 2,200,000 2,201,457 2,204,477 7.2 Public Bank Berhad maturing on 22/12/2016 1,850,000 1,901,111 1,908,947 6.3 Total unquoted corporate bonds 12,407,629 12,424,475 40.8

Commercial papers

Guinness Anchor Berhad maturing on 10/07/2015 1,000,000 991,830 992,219 3.3 Total commercial papers 991,830 992,219 3.3 Total fi nancial assets at FVTPL 13,399,459 13,416,694 44.1 Unrealised gain on fi nancial assets at FVTPL 17,235


5. MANAGER’S FEE

The Manager’s fee is computed on a daily basis at a rate not less than 0.5% per annum and not exceeding 3.0% per annum of the NAV of the Fund as provided under Clause 13(2) of the Deed.

The Manager is currently charging Manager’s fee of 0.5% per annum of the NAV of the Fund.

6. TRUSTEE’S FEE

Pursuant to the Second Supplemental Deed dated 25 July 2014, the Trustee’s fee is computed at a rate not exceeding 0.07% per annum of the NAV of the Fund and subject to a minimum fee of RM9,000 effective from 1 August 2014. Prior to 1 August 2014, the Trustee’s fee was computed at a rate not exceeding 0.20% per annum and subject to a minimum fee of RM18,000 per annum.

The Trustee’s fee currently computed based on the minimum fee of RM9,000 per annum of the NAV of the Fund.

7. INCOME TAX

Income tax is calculated at the Malaysian statutory tax rate of 25% of the estimated assessable income for the fi nancial year. The statutory tax rate will be reduced to 24% effective year of assessment 2016.

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

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

1.11.2014 1.11.2013 to 30.4.2015 to 30.4.2014

RM RM Net income before tax 528,347 1,542,666 Tax at Malaysian statutory tax rate of 25% (fi nancial period from 1 November 2013 to 30 April 2014: 25%) 132,087 385,667 Tax effect of: Income not subject to tax (164,745) (480,546) Loss not deductible for tax purposes - 6,175 Expenses not deductible for tax purposes 2,165 11,531 Restriction on tax deductible expenses for unit trust fund 30,493 77,173 Income tax for the period - -


8. INCOME DISTRIBUTION

Distribution to unitholders are made from the following dates:

1.11.2014 1.11.2013 to 30.4.2015 to 30.4.2014 RM RM Distribution on: 25 November 2014/25 November 2013 111,474 318,538 23 December 2014/26 December 2013 88,755 319,860 27 January 2015/27 January 2014 69,650 288,690 24 February 2015/25 February 2014 90,523 247,861 25 March 2015/26 March 2014 82,772 252,203 22 April 2015/28 April 2014 69,846 154,207 513,020 1,581,359

Distribution to unitholders is from the following sources:

1.11.2014 1.11.2013 to 30.4.2015 to 30.4.2014 RM RM

Tax exempt income 102,405 698,165 Distribution out of distribution equalisation (Note 12(a)) 5,448 (2,663) Undistributed income b/f 426,455 1,009,824 534,308 1,705,326 Less: Expenses (21,288) (123,967) Distribution for the period 513,020 1,581,359 Gross/Net distribution per unit (sen) 1.47 1.47

9. SHORT TERM DEPOSITS

Short term deposits are held with licensed fi nancial institutions in Malaysia, on a daily renewal basis at the prevailing interest rate.

10. OTHER RECEIVABLES

30.4.2015 30.4.2014 RM RM Amount due from licensed fi nancial institutions 1,680,614 10,088,652 Interest receivable from short term deposits 1,547 2,243 1,682,161 10,090,895


11. OTHER PAYABLES

30.4.2015 30.4.2014 RM RM Amount due to licensed fi nancial institutions 1,891,452 - Accrual for auditors’ remuneration 10,471 2,975 Accrual for tax agent’s fees 5,434 534 Provision for printing and other expenses 14,392 5,544 1,921,749 9,053

12. NET ASSET VALUE ATTRIBUTABLE TO UNITHOLDERS

NAV attributed to unitholders is represented by:

30.4.2015 30.4.2014 Note RM RM Unitholders’ contribution (a) 29,730,041 60,871,635 Retained earnings: Realised reserves 705,367 793,650 Unrealised reserves 17,235 (42,941) 722,602 750,709

30,452,643 61,622,344

(a) Unitholders’ contribution

1.11.2014 to 30.4.2015 1.11.2013 to 30.4.2014 No. of units RM No. of units RM

At beginning of the period 33,434,727 32,557,150 119,414,834 118,319,006 Add: Creation of units 37,012,364 36,799,751 37,115,468 37,013,021 Less: Cancellation of units (40,368,065) (40,136,569) (96,277,033) (95,985,822) Distribution equalisation - 4,431 - (53,649) Income distribution (Note 8) - (5,448) - 2,663 Reinvestment of income distributed 514,103 510,726 1,581,682 1,576,416 At end of the period 30,593,129 29,730,041 61,834,951 60,871,635

The number of units legally or benefi cially held by the Manager, Kenanga Investors Berhad, and parties related to the Manager as at 30 April 2015 were nil (30 April 2014: nil).


13. NET ASSET VALUE PER UNIT

In line with the adoption of MFRS 139, fi nancial assets at FVTPL have been valued at the bid prices at the close of business. In accordance with the Deed, the calculation of NAV attributable to unitholders per unit for the creation and cancellation of units is computed based on fi nancial assets at FVTPL valued at the last done market price.

A reconciliation of NAV attributable to unitholders for creation/cancellation of units and the NAV attributable to unitholders per the fi nancial statements is as follows:

30.4.2015 30.4.2014 RM RM/Unit RM RM/Unit

NAV attributable to unitholders for creation/cancellation of units 30,453,941 0.9955 61,615,075 0.9964 Effects of adopting bid prices as fair value (1,298) (0.0001) 7,269 0.0002 NAV attributable to unitholders per statement of fi nancial position 30,452,643 0.9954 61,622,344 0.9966

14. PORTFOLIO TURNOVER RATIO (“PTR”)

PTR for the fi nancial period from 1 November 2014 to 30 April 2015 is 0.55 times (fi nancial period from 1 November 2013 to 30 April 2014: 0.62 times).

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

15. MANAGEMENT EXPENSE RATIO (“MER”)

MER for the fi nancial period from 1 November 2014 to 30 April 2015 is 0.39% (fi nancial period from 1 November 2013 to 30 April 2014: 0.53%).

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


16. TRANSACTIONS WITH LICENSED FINANCIAL INSTITUTIONS

Transaction Percentage value of total RM % RHB Investment Bank Berhad 22,138,296 85.4 RHB Bank Berhad 2,167,131 8.3 Standard Chartered Bank Malaysia Berhad 980,208 3.8 Kenanga Investment Bank Berhad* 501,011 1.9 CIMB Bank Berhad 147,944 0.6 25,934,590 100.0

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

The above transaction values are in respect of unquoted corporate bonds, unquoted government guaranteed bonds and commercial papers. Transactions in unquoted corporate bonds, unquoted government guaranteed bonds and commercial papers do not involve any commission or brokerage fees.

17. SEGMENTAL REPORTING

a. Business Segments

In accordance with the objective of the Fund, the Fund can invest around 0% to 50% in unquoted bonds and 50% to 100% in cash/money market instruments and others. The following table provides an analysis of the Fund’s revenue, results, assets and liabilities by business segments:


17. SEGMENTAL REPORTING (CONTD.)

a. Business Segments (Contd.)

Unquoted bonds and Other commercial papers investments Total RM RM RM

1.11.2014 to 30.4.2015 Revenue Segment income 352,519 306,462 658,981 Unallocated expenditure (130,635) Income before tax 528,346 Income tax - Net income after tax 528,346

30.4.2015 Assets Financial assets at FVTPL 13,416,694 - Short term deposits - 17,281,715 Other segment assets 1,680,614 1,547 Total segment assets 15,097,308 17,283,262 32,380,570 Unallocated assets 10,328 32,390,898

Liabilities Total segment liabilities 1,891,452 - 1,891,452 Unallocated liabilities 46,803 1,938,255

1.11.2013 to 30.4.2014 Revenue Segment income 1,062,949 834,535 1,897,484 Unallocated expenditure (354,818) Income before tax 1,542,666 Income tax - Net income after tax 1,542,666

30.4.2014 Assets Financial assets at FVTPL 36,647,693 - Short term deposits - 14,930,316 Other segment assets 10,088,652 2,243 Total segment assets 46,736,345 14,932,559 61,668,904 Unallocated assets 6,684 61,675,588 Liabilities Unallocated liabilities 53,244

b. Geographical Segments

As all of the Fund’s investments are located in Malaysia, disclosure by geographical segment is not relevant.


18. FINANCIAL INSTRUMENTS

a. Classifi cation of fi nancial instruments

The Fund’s fi nancial assets and fi nancial liabilities are measured on an ongoing basis at either fair value or at amortised cost based on their respective classifi cation. The signifi cant accounting policies in Note 3 describe how the classes of fi nancial instruments are measured, and how income and expenses, including fair value gains and losses, are recognised.

The following table analyses the fi nancial assets and liabilities of the Fund in the statement of fi nancial position by the class of fi nancial instrument to which they are assigned and therefore by the measurement basis.

Financial assets Financial at FVTPL Receivables liabilities Total RM RM RM RM

30.4.2015Assets Unquoted corporate bonds 12,424,475 - - 12,424,475Commercial papers 992,219 - - 992,219Short term deposits - 17,281,715 - 17,281,715Other receivables - 1,682,161 - 1,682,161Cash at bank - 10,328 - 10,328 13,416,694 18,974,204 - 32,390,898 Liabilities Amount due to Manager - - 15,002 15,002Amount due to Trustee - - 1,504 1,504Other payables - - 1,921,749 1,921,749 - - 1,938,255 1,938,255

30.4.2014AssetsUnquoted corporate bonds 26,655,583 - - 26,655,583Commercial papers 9,992,110 - - 9,992,110Short term deposits - 14,930,316 - 14,930,316Other receivables - 10,090,895 - 10,090,895Cash at bank - 6,684 - 6,684 36,647,693 25,027,895 - 61,675,588 Liabilities Amount due to Manager - - 32,912 32,912Amount due to Trustee - - 10,525 10,525Other payables - - 9,053 9,053Distribution payables - - 754 754 - - 53,244 53,244


18. FINANCIAL INSTRUMENTS (CONTD.)

b. Financial instruments that are carried at fair value

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

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

Level 1 Level 2 Level 3 Total RM RM RM RM

Investments: 30.4.2015 - Unquoted corporate bonds - 12,424,475 - 12,424,475 - Commercial papers - 992,219 - 992,219 30.4.2014 - Unquoted corporate bonds - 26,655,583 - 26,655,583 - Commercial papers - 9,992,110 - 9,992,110

Level 1: Quoted prices in active market Level 2: Model with all signifi cant inputs which are observable market data Level 3: Model with inputs not based on observable market data

The fair value of unquoted corporate bonds and commercial papers are based on average of bid prices quoted by respective fi nancial institutions at reporting date.

c. Financial instruments not carried at fair value and whose carrying amounts are reasonable approximations of fair value

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


19. CAPITAL MANAGEMENT

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

The Fund’s objectives for managing capital are:

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

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

c. To maintain suffi cient fund size to make the operation of the Fund cost-effi cient.

No changes were made to the capital management objectives, policies or processes during the current and previous fi nancial period.

Investor Services Center Head Offi ce, Kuala LumpurToll Free Line: 1 800 88 3737 Suite 12.02, 12th Floor, Kenanga International,Fax: +603 2057 3722 Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia.Email: [email protected] Tel: 03-2057 3688 Fax: 03-2161 8807

KCPF COVERKCPF TEXT

KENANGA CASH PLUS FUND › KIB › KIB.Application.Web › docs › Inter… · 70000 Seremban,...

Documents

Transcript of KENANGA CASH PLUS FUND › KIB › KIB.Application.Web › docs › Inter… · 70000 Seremban,...