Kenanga Global Emerging Markets Debt Fund Annual Report 1

TABLE OF CONTENTS

Page/s

Fund Information 2

Manager’s Report 3-7

Fund Performance 8-10

Trustee’s Report 11

Auditor’s Report 12-13

Financial Statement 14-37

Statement by the Manager 38

Corporate Directory 39

2 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 3

1. FUND INFORMATION

1.1 Fund name, type and category

Kenanga Global Emerging Markets Debt Fund (“the Fund”) is a feeder / income and capital growth fund. (Kenanga Global Emerging Markets Debt Fund formerly known as ING Global Emerging Markets Debt)

1.2 The Fund’s investment objective

The Fund aims to provide investors with a regular income stream through investments in a diversified selection of fixed income transferable securities, money market instruments, derivatives and deposits, mainly denominated in or having a minimum 2/3 exposure to the currencies of low or middle-income developing countries (“emerging markets”) in Latin America, Asia, Central Europe, Eastern Europe and Africa.

1.3 Fund duration and termination date (if any)

The Fund is an open-ended fund and hence does not have a termination date.

1.4 The Fund’s performance benchmark

The Fund’s performance benchmark index is JP Morgan Emerging Local Market Index.

1.5 The Fund’s distribution policy

Income (if any) will be distributed half yearly on a best effort basis.

1.6 Breakdown of unit holdings by size and number of investors

Size of holding

No. of Units held as at

30 Apr 2013

No. of Investors as at

30 Apr 2013

5,000 and below 0 0

5,001 – 10,000 0 0

10,001 – 50,000 19,770 1

50,001 – 500,000 0 0

500,001 & above 0 0

Total 19,770 1

2. MANAGER’S REPORT

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

For the period under review, the Fund fulfilled its investment objective. It had invested, through a target fund, in a diversified selection of fixed income transferable securities, money market instruments, derivatives and deposits, mainly denominated in or having a minimum 2/3 exposure to the currencies of low or middle-income developing countries (“emerging markets”) in Latin America, Asia, Central Europe, Eastern Europe and Africa. However, it did not meet its objective of providing regular income stream as no distribution was paid out during the financial year.

2.2 Comparison between the Fund’s performance during period under review and performance of the benchmark disclosed in the prospectus since inception.

Fund performance for each of the financial year and period under review

Kenanga Global Emerging Markets Debt FundJP Morgan Emerging Local Market Index

-10.0--15.0

-5.00.05.0

10.015.0

%

2009* 2010 2011 2012 period underreview

2.91

-12.64

4.639.80

-11.06

3.39

-4.063.52

1.36

-4.82

* Performance during the period 22 July 2008 to 30 April 2009Source: Perkasa Normandy Managers Sdn Bhd.

2.3 Investment strategies and policies employed during the period under review

For the period under review, the Fund’s invested a minimum of 95% of its net asset value in ING (L) Renta Fund Emerging Markets Debt (Local Currency) which is a fund denominated in US Dollar and domiciled in Luxembourg in line with its investment strategy and policy.

2.4 The Fund’s asset allocation (% of NAV) as at 30 April 2013 and comparison with the previous financial year

Asset 30 Apr 2013 30 Apr 2012

ING (L) Renta Fund Emerging Markets Debt (Local Currency)

96.2% 95.5%

Liquid Assets 3.8% 4.5%

Reason for difference in asset allocation

The Fund’s investment strategy has not been changed since the end of the previous period under review. The difference in asset allocation is due to fluctuations in the value of the target fund.

2 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 3

1. FUND INFORMATION

1.1 Fund name, type and category

Kenanga Global Emerging Markets Debt Fund (“the Fund”) is a feeder / income and capital growth fund. (Kenanga Global Emerging Markets Debt Fund formerly known as ING Global Emerging Markets Debt)

1.2 The Fund’s investment objective

The Fund aims to provide investors with a regular income stream through investments in a diversified selection of fixed income transferable securities, money market instruments, derivatives and deposits, mainly denominated in or having a minimum 2/3 exposure to the currencies of low or middle-income developing countries (“emerging markets”) in Latin America, Asia, Central Europe, Eastern Europe and Africa.

1.3 Fund duration and termination date (if any)

The Fund is an open-ended fund and hence does not have a termination date.

1.4 The Fund’s performance benchmark

The Fund’s performance benchmark index is JP Morgan Emerging Local Market Index.

1.5 The Fund’s distribution policy

Income (if any) will be distributed half yearly on a best effort basis.

1.6 Breakdown of unit holdings by size and number of investors

Size of holding

No. of Units held as at

30 Apr 2013

No. of Investors as at

30 Apr 2013

5,000 and below 0 0

5,001 – 10,000 0 0

10,001 – 50,000 19,770 1

50,001 – 500,000 0 0

500,001 & above 0 0

Total 19,770 1

2. MANAGER’S REPORT

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

For the period under review, the Fund fulfilled its investment objective. It had invested, through a target fund, in a diversified selection of fixed income transferable securities, money market instruments, derivatives and deposits, mainly denominated in or having a minimum 2/3 exposure to the currencies of low or middle-income developing countries (“emerging markets”) in Latin America, Asia, Central Europe, Eastern Europe and Africa. However, it did not meet its objective of providing regular income stream as no distribution was paid out during the financial year.

2.2 Comparison between the Fund’s performance during period under review and performance of the benchmark disclosed in the prospectus since inception.

Fund performance for each of the financial year and period under review

Kenanga Global Emerging Markets Debt FundJP Morgan Emerging Local Market Index

-10.0--15.0

-5.00.05.0

10.015.0

%

2009* 2010 2011 2012 period underreview

2.91

-12.64

4.639.80

-11.06

3.39

-4.063.52

1.36

-4.82

* Performance during the period 22 July 2008 to 30 April 2009Source: Perkasa Normandy Managers Sdn Bhd.

2.3 Investment strategies and policies employed during the period under review

For the period under review, the Fund’s invested a minimum of 95% of its net asset value in ING (L) Renta Fund Emerging Markets Debt (Local Currency) which is a fund denominated in US Dollar and domiciled in Luxembourg in line with its investment strategy and policy.

2.4 The Fund’s asset allocation (% of NAV) as at 30 April 2013 and comparison with the previous financial year

Asset 30 Apr 2013 30 Apr 2012

ING (L) Renta Fund Emerging Markets Debt (Local Currency)

96.2% 95.5%

Liquid Assets 3.8% 4.5%

Reason for difference in asset allocation

The Fund’s investment strategy has not been changed since the end of the previous period under review. The difference in asset allocation is due to fluctuations in the value of the target fund.

4 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 5

2.5 Fund performance analysis based on NAV per unit (adjusted for income distribution) since the last review period

Period under review

Kenanga Global Emerging Markets Debt Fund

2.91%

JP Morgan ELMI 3.39%

Source: Perkasa Normandy Managers Sdn Bhd

For the period under review, the Fund registered a return of 2.91%% underperforming its benchmark which returned 3.39%. The underperformance was due to asset allocation and stock selection.

2.6 Review of the market that ING (L) Renta Fund Emerging Markets Debt (Local Currency) (Target Fund) invests in (Period: 1 May 2012 to 30 April 2013)

Market Review

At the beginning of the reporting period, economic data and events across the three global regions increasingly coincided to paint a less robust picture for global growth. Concerns about Greece’s future in the Eurozone and about the banking sector in Spain also clearly weighed on the markets. The benchmark returned -5.89% in May, dragged down by returns from the countries in European zone. The fund returned -5.82% and marginally outperformed the benchmark.

In June, the markets recovered somewhat from the sell-off in May. The global macro-economic picture remained lackluster. However, some relief was provided by the outcome of Greek elections, which significantly lowered the probability of a disorderly Eurozone exit for the country. It was further helped by some progress on Eurozone banking supervision and direct funding possibility for the banks via the European Stability Mechanism (ESM). The benchmark returned 3.26%, while the fund returned 3.11% and underperformed the benchmark.

Central banks in Eurozone and China cut interest rates in July. The Spanish regions’ call for aid form the central government spooked the markets, pushing up Spanish 10-year yields. But comments from European Central Bank (ECB) later on provided some assurance to the markets, after which most risk assets recovered. With most countries in Asia and LatAm posting gains, the benchmark returned 0.39%. The fund returned 0.71% and outperformed the benchmark.

In August, the yields came off in general, as many countries were in the easing mode. This came about despite an uptick in the US Treasury yields. The signals from ECB reduced perceptions of tail-risk, which reduced the value of US Treasuries as safe-haven. Additionally, there were some encouraging signals in US growth. However, data from China continued to indicate weakness in exports and manufacturing. Led by LatAm region, the benchmark returned 0.59% over the month. The fund returned 0.54% and marginally underperformed the benchmark.

Policy action from developed market central banks was the key driver of performance in September. The ECB came out with more details on its new policy tool (the OMT, or Outright Monetary Transactions), providing support for the Eurozone periphery and for risk assets in general. Furthermore, the Federal Reserve announced another round of asset purchasing program (so-called QE3) and lengthened the horizon for low rates to 2015. The general market reaction was one of increased risk appetite, as yields in Eurozone periphery went down while emerging markets (EM) currencies went up. As all countries posted gains, the benchmark returned 2.13% over the month. The fund returned 2.74% and outperformed the benchmark.

In October, a bias towards easing remained in place, as multiple EM countries cut rates. Some further clarity was provided in Eurozone, regarding banking supervision and conditionality regarding financial support for member states. Some upward momentum in the US economy kept the US dollar relatively strong. This, combined with positioning in anticipation of a global recovery and some negative news in countries like South Africa, kept the overall performance practically flat. The benchmark returned 0.03% over the month. The fund returned 0.26% and outperformed the benchmark.

The monetary easing bias continued and in November and multiple EM countries cut rates. Central Banks in the US and Eurozone continued to provide comfort to markets and the cyclical recovery continued to gain ground, albeit that growth was still below trend. With most countries performing positively, the benchmark gained 0.37% over the month. The portfolio gained 0.62% and outperformed the benchmark.

In December 2012, with the partial resolution of the US ‘fiscal cliff’, some uncertainty was removed. On the plus side, the mounting evidence of a global economic recovery, led by the US and China, but with manufacturing sentiment slowly picking up across the board, aided the recovery of EM currencies. Almost all countries outside Asia performed positively and the benchmark returned 0.73%. The portfolio gained 1.20% and outperformed the benchmark.

In January 2013, with the cyclical economic recovery gaining more traction, EM foreign exchange (FX) appreciated against the dollar for most of the month. Most countries outside the Middle East & Africa performed positively and the benchmark returned 0.79%. The portfolio gained 1.22% and outperformed the benchmark.

4 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 5

2.5 Fund performance analysis based on NAV per unit (adjusted for income distribution) since the last review period

Period under review

Kenanga Global Emerging Markets Debt Fund

2.91%

JP Morgan ELMI 3.39%

Source: Perkasa Normandy Managers Sdn Bhd

For the period under review, the Fund registered a return of 2.91%% underperforming its benchmark which returned 3.39%. The underperformance was due to asset allocation and stock selection.

2.6 Review of the market that ING (L) Renta Fund Emerging Markets Debt (Local Currency) (Target Fund) invests in (Period: 1 May 2012 to 30 April 2013)

Market Review

At the beginning of the reporting period, economic data and events across the three global regions increasingly coincided to paint a less robust picture for global growth. Concerns about Greece’s future in the Eurozone and about the banking sector in Spain also clearly weighed on the markets. The benchmark returned -5.89% in May, dragged down by returns from the countries in European zone. The fund returned -5.82% and marginally outperformed the benchmark.

In June, the markets recovered somewhat from the sell-off in May. The global macro-economic picture remained lackluster. However, some relief was provided by the outcome of Greek elections, which significantly lowered the probability of a disorderly Eurozone exit for the country. It was further helped by some progress on Eurozone banking supervision and direct funding possibility for the banks via the European Stability Mechanism (ESM). The benchmark returned 3.26%, while the fund returned 3.11% and underperformed the benchmark.

Central banks in Eurozone and China cut interest rates in July. The Spanish regions’ call for aid form the central government spooked the markets, pushing up Spanish 10-year yields. But comments from European Central Bank (ECB) later on provided some assurance to the markets, after which most risk assets recovered. With most countries in Asia and LatAm posting gains, the benchmark returned 0.39%. The fund returned 0.71% and outperformed the benchmark.

In August, the yields came off in general, as many countries were in the easing mode. This came about despite an uptick in the US Treasury yields. The signals from ECB reduced perceptions of tail-risk, which reduced the value of US Treasuries as safe-haven. Additionally, there were some encouraging signals in US growth. However, data from China continued to indicate weakness in exports and manufacturing. Led by LatAm region, the benchmark returned 0.59% over the month. The fund returned 0.54% and marginally underperformed the benchmark.

Policy action from developed market central banks was the key driver of performance in September. The ECB came out with more details on its new policy tool (the OMT, or Outright Monetary Transactions), providing support for the Eurozone periphery and for risk assets in general. Furthermore, the Federal Reserve announced another round of asset purchasing program (so-called QE3) and lengthened the horizon for low rates to 2015. The general market reaction was one of increased risk appetite, as yields in Eurozone periphery went down while emerging markets (EM) currencies went up. As all countries posted gains, the benchmark returned 2.13% over the month. The fund returned 2.74% and outperformed the benchmark.

In October, a bias towards easing remained in place, as multiple EM countries cut rates. Some further clarity was provided in Eurozone, regarding banking supervision and conditionality regarding financial support for member states. Some upward momentum in the US economy kept the US dollar relatively strong. This, combined with positioning in anticipation of a global recovery and some negative news in countries like South Africa, kept the overall performance practically flat. The benchmark returned 0.03% over the month. The fund returned 0.26% and outperformed the benchmark.

The monetary easing bias continued and in November and multiple EM countries cut rates. Central Banks in the US and Eurozone continued to provide comfort to markets and the cyclical recovery continued to gain ground, albeit that growth was still below trend. With most countries performing positively, the benchmark gained 0.37% over the month. The portfolio gained 0.62% and outperformed the benchmark.

In December 2012, with the partial resolution of the US ‘fiscal cliff’, some uncertainty was removed. On the plus side, the mounting evidence of a global economic recovery, led by the US and China, but with manufacturing sentiment slowly picking up across the board, aided the recovery of EM currencies. Almost all countries outside Asia performed positively and the benchmark returned 0.73%. The portfolio gained 1.20% and outperformed the benchmark.

In January 2013, with the cyclical economic recovery gaining more traction, EM foreign exchange (FX) appreciated against the dollar for most of the month. Most countries outside the Middle East & Africa performed positively and the benchmark returned 0.79%. The portfolio gained 1.22% and outperformed the benchmark.

6 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 7

In February, EM FX moved mostly sideways after the gains of the previous month. Later on, the Italian elections pointed to a fragmented parliament, with a clear vote against the austerity measures by Mario Monti’s government. In turn, that could have implications for the progress on Eurozone debt crisis. As such, the election results increased risk aversion. The US Treasury yields tumbled and so did the EM FX against US dollar. The benchmark returned -0.62%, dragged down by the European region. The portfolio returned -0.38% and outperformed the benchmark.

In March, the benchmark returned -0.13%, dragged down by EM FX depreciation. Interestingly, this EM currency weakness occurred against a background of a steady increase in the S&P 500. To us, this was indicative of a world that was less driven by general ‘risk-on risk-off’ and more by local events. Regarding the global risk sentiment, main negatives were economic data surprises and the protracted bailout of Cyprus. The portfolio returned -0.10% and marginally outperformed the benchmark.

In April, unprecedented monetary easing measures announced by Bank of Japan’s Governor Kuroda gave a fillip to risk assets. Risk sentiment pared some gains later in the month, however, amid mixed macroeconomic data. There was increased expectation about a rate cut by the ECB; and as more clarity was provided about the continuing asset purchase by the Fed, the US Treasury yields declined. Next to that, the sharp drop in global commodity prices should be mentioned. Weakness in flows as investors search for bond or dividend yield (versus non-yielding commodities), disappointing Chinese data and an expected abundant US new crop (and hence lower grain prices) are the main explanations for lower commodity prices. The benchmark posted a gain of 1.35%, mostly driven by EM FX appreciation. The portfolio gained 1.31% and marginally underperformed the benchmark.

Market Outlook

The cyclical global economic recovery mostly continues on its gradual path, although recent data have been more mixed. We continue to see further economic recovery in the US and potentially in Japan. In Europe, even as the positive effects from OMT seem to have waned, the political backdrop has improved a touch, while the focus on austerity is diminishing.

On the global monetary policy front, major central banks across the world are likely to keep low interest rates and use unconventional policy measures to repair monetary transmission mechanisms. The recent ECB rate cut further corroborates this view. Within EM, monetary policy is likely to remain growth-oriented. In the medium-term, EM FX is likely to benefit from the cyclical upturn that we still expect and the low rates environment in the developed world. However, the fact that in EM monetary policy is also more growth-oriented and focused on preventing currency strength might mean more limited gains in the near future.

2.7 Income distribution

For the financial period under review, the Fund did not declare any income distribution.

2.8 Details of any unit split exercise

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

2.9 Significant changes in the state of affair of the Fund

during the period

Pursuant to the acquisition of ING Funds Berhad by Kenanga Investors Berhad on 19th April 2013, Kenanga Investors Berhad had written to the Securities Commission to seek the Securities Commission’s approval to become the Management Company of the Fund. The Securities Commission had approved the application. With effect from 8th June 2013, Kenanga Investors Berhad has become the Management Company of the Fund.

2.10 Circumstances that materially affect any interests of the unitholders

During the period under review, there are no circumstances that materially affect any interests of the unitholders. However, there was a change in the Management Company of the Fund on 8th June 2013 on detailed in 2.9.

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, financial wire services, stock quotation system and portfolio management software incidental to investment management of the Fund shall be retained by the Manager. For the period under review, the Manager did not receive any rebates or soft commissions from stockbrokers.

6 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 7

In February, EM FX moved mostly sideways after the gains of the previous month. Later on, the Italian elections pointed to a fragmented parliament, with a clear vote against the austerity measures by Mario Monti’s government. In turn, that could have implications for the progress on Eurozone debt crisis. As such, the election results increased risk aversion. The US Treasury yields tumbled and so did the EM FX against US dollar. The benchmark returned -0.62%, dragged down by the European region. The portfolio returned -0.38% and outperformed the benchmark.

In March, the benchmark returned -0.13%, dragged down by EM FX depreciation. Interestingly, this EM currency weakness occurred against a background of a steady increase in the S&P 500. To us, this was indicative of a world that was less driven by general ‘risk-on risk-off’ and more by local events. Regarding the global risk sentiment, main negatives were economic data surprises and the protracted bailout of Cyprus. The portfolio returned -0.10% and marginally outperformed the benchmark.

In April, unprecedented monetary easing measures announced by Bank of Japan’s Governor Kuroda gave a fillip to risk assets. Risk sentiment pared some gains later in the month, however, amid mixed macroeconomic data. There was increased expectation about a rate cut by the ECB; and as more clarity was provided about the continuing asset purchase by the Fed, the US Treasury yields declined. Next to that, the sharp drop in global commodity prices should be mentioned. Weakness in flows as investors search for bond or dividend yield (versus non-yielding commodities), disappointing Chinese data and an expected abundant US new crop (and hence lower grain prices) are the main explanations for lower commodity prices. The benchmark posted a gain of 1.35%, mostly driven by EM FX appreciation. The portfolio gained 1.31% and marginally underperformed the benchmark.

Market Outlook

The cyclical global economic recovery mostly continues on its gradual path, although recent data have been more mixed. We continue to see further economic recovery in the US and potentially in Japan. In Europe, even as the positive effects from OMT seem to have waned, the political backdrop has improved a touch, while the focus on austerity is diminishing.

On the global monetary policy front, major central banks across the world are likely to keep low interest rates and use unconventional policy measures to repair monetary transmission mechanisms. The recent ECB rate cut further corroborates this view. Within EM, monetary policy is likely to remain growth-oriented. In the medium-term, EM FX is likely to benefit from the cyclical upturn that we still expect and the low rates environment in the developed world. However, the fact that in EM monetary policy is also more growth-oriented and focused on preventing currency strength might mean more limited gains in the near future.

2.7 Income distribution

For the financial period under review, the Fund did not declare any income distribution.

2.8 Details of any unit split exercise

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

2.9 Significant changes in the state of affair of the Fund

during the period

Pursuant to the acquisition of ING Funds Berhad by Kenanga Investors Berhad on 19th April 2013, Kenanga Investors Berhad had written to the Securities Commission to seek the Securities Commission’s approval to become the Management Company of the Fund. The Securities Commission had approved the application. With effect from 8th June 2013, Kenanga Investors Berhad has become the Management Company of the Fund.

2.10 Circumstances that materially affect any interests of the unitholders

During the period under review, there are no circumstances that materially affect any interests of the unitholders. However, there was a change in the Management Company of the Fund on 8th June 2013 on detailed in 2.9.

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, financial wire services, stock quotation system and portfolio management software incidental to investment management of the Fund shall be retained by the Manager. For the period under review, the Manager did not receive any rebates or soft commissions from stockbrokers.

8 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 9

3. FUND PERFORMANCE

3.1 Details of portfolio composition of Kenanga Global Emerging Markets Debt Fund (“the Fund”) as at 30 April 2013 against last 3 financial years ended 30 April are as follows:

a. Distribution among industry sectors and category of investments:

FY FY FY FY

2013 2012 2011 2010

% % % %

Collective Investment Scheme - Foreign 96.2 95.5 95.9 93.8

Cash and others 3.8 4.5 4.1 6.2

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

At 30 April 2013, the target fund ING (L) Renta Fund Emerging Markets Debt Local Currency has invested in the following markets:

38.66%

19.01%

13.73%

11.85%

7.35%

2.02%

1.76%

1.55%

1.41%

1.28%

1.26%

0.08%

0.04%

Luxembourg

Turkey

Mexico

Hungary

Taiwan

United States

Romania

Russian Federation

Colombia

Germany

Switzerland

Argentina

United Kingdom

Source: ING Investment Management Europe

3.2 Performance details of the Fund for the financial year ended 30 April 2013 against last 3 financial years ended 30 April are as follows:

FY FY FY FY

2013 2012 2011 2010

Net asset value (RM Million) 0.009* 0.009 0.05 0.16

Units in circulation (Million) 0.02 0.02 0.10 0.33

Net asset value per unit (RM) 0.4593 0.4463 0.5109 0.4883

Highest NAV price (RM/unit) 0.4686 0.5179 0.5141 0.5167

Lowest NAV price (RM/unit) 0.4403 0.4462 0.4575 0.4398

Total return (%) 2.9 -12.64 4.63 9.80

- Capital growth (%) - -13.15 125.15 6.11

- Income growth (%) 2.9 0.51 -120.52 3.69

Gross distribution per unit (sen) - - - -

Net distribution per unit (sen) - - - -

Management expense ratio (“MER”) (%) 1 0.73 0.85 0.61 1.10

Portfolio turnover ratio (“PTR”) (times) 2 0.55 0.41 0.64 0.14

Note: Total return is the actual return of the Fund for the financial period, computed based on net asset value 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.

Above prices and NAV are not shown as ex-distribution as there were no distribution declared by the Fund.

1 The decrease in MER was due to reduce in total fees and expenses in financial year under review.

2 The higher PTR was mainly due to larger fund movement.

* The NAV and NAV price per unit are valued based on bid price fair valuation method.

8 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 9

3. FUND PERFORMANCE

3.1 Details of portfolio composition of Kenanga Global Emerging Markets Debt Fund (“the Fund”) as at 30 April 2013 against last 3 financial years ended 30 April are as follows:

a. Distribution among industry sectors and category of investments:

FY FY FY FY

2013 2012 2011 2010

% % % %

Collective Investment Scheme - Foreign 96.2 95.5 95.9 93.8

Cash and others 3.8 4.5 4.1 6.2

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

At 30 April 2013, the target fund ING (L) Renta Fund Emerging Markets Debt Local Currency has invested in the following markets:

38.66%

19.01%

13.73%

11.85%

7.35%

2.02%

1.76%

1.55%

1.41%

1.28%

1.26%

0.08%

0.04%

Luxembourg

Turkey

Mexico

Hungary

Taiwan

United States

Romania

Russian Federation

Colombia

Germany

Switzerland

Argentina

United Kingdom

Source: ING Investment Management Europe

3.2 Performance details of the Fund for the financial year ended 30 April 2013 against last 3 financial years ended 30 April are as follows:

FY FY FY FY

2013 2012 2011 2010

Net asset value (RM Million) 0.009* 0.009 0.05 0.16

Units in circulation (Million) 0.02 0.02 0.10 0.33

Net asset value per unit (RM) 0.4593 0.4463 0.5109 0.4883

Highest NAV price (RM/unit) 0.4686 0.5179 0.5141 0.5167

Lowest NAV price (RM/unit) 0.4403 0.4462 0.4575 0.4398

Total return (%) 2.9 -12.64 4.63 9.80

- Capital growth (%) - -13.15 125.15 6.11

- Income growth (%) 2.9 0.51 -120.52 3.69

Gross distribution per unit (sen) - - - -

Net distribution per unit (sen) - - - -

Management expense ratio (“MER”) (%) 1 0.73 0.85 0.61 1.10

Portfolio turnover ratio (“PTR”) (times) 2 0.55 0.41 0.64 0.14

Note: Total return is the actual return of the Fund for the financial period, computed based on net asset value 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.

Above prices and NAV are not shown as ex-distribution as there were no distribution declared by the Fund.

1 The decrease in MER was due to reduce in total fees and expenses in financial year under review.

2 The higher PTR was mainly due to larger fund movement.

* The NAV and NAV price per unit are valued based on bid price fair valuation method.

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3.3 Average total return of the Fund

1 Year 30 Apr 12-30 Apr 13

3 Years 30 Apr 10-30 Apr 13

Since Inception 22 Jul 08-30 Apr 13

Kenanga Global Emerging Markets Debt Fund

2.91% -2.02% -1.76%

JP Morgan ELMI 3.39% 0.89% -0.20%

3.4 Annual total return of the Fund for each of the last 5 financial years or since inception (for the financial period ending 30 April)

Period under review

1 Year 30 Apr 11-30 Apr 12

1 Year 30 Apr 10-30 Apr 11

Kenanga Global Emerging Markets Debt Fund

2.91% -12.64% 4.63%

JP Morgan ELMI 3.39% -4.06% 3.52%

1 Year 30 Apr 09-30 Apr 10

Since Inception 22 Jul 08-30 Apr 09

Kenanga Global Emerging Markets Debt Fund

9.80% -11.06%

JP Morgan ELMI 1.36% -4.82%

The performance data of the Fund is calculated based on net asset value per unit with distribution reinvested and is quoted from: Perkasa Normandy Managers Sdn Bhd.

Note: Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

4. TRUSTEE’S REPORT

We, CIMB COMMERCE TRUSTEE BERHAD, being the Trustee of Kenanga Global Emerging Markets Debt Fund (formerly known as ING GLOBAL EMERGING MARKETS DEBT) are of the opinion that KENANGA INVESTORS BERHAD (“the Manager”), acting in the capacity of Manager of the Fund, have fulfilled their duties in the following manner for the financial year ended 30 April 2013.

a. The Fund has been managed in accordance with the limitations imposed on the investment powers of the Manager and the Trustee under the Deed, the Securities Commission’s Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007 and other applicable laws during the financial year ended 30 April 2013;

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

c. Creation and cancellation of units have been carried out in accordance with the Deed and relevant regulatory requirements.

For and on behalf ofCIMB COMMERCE TRUSTEE BERHAD

LIEW PIK YOONGHead of Trustee Services

26 June 2013

10 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 11

3.3 Average total return of the Fund

1 Year 30 Apr 12-30 Apr 13

3 Years 30 Apr 10-30 Apr 13

Since Inception 22 Jul 08-30 Apr 13

Kenanga Global Emerging Markets Debt Fund

2.91% -2.02% -1.76%

JP Morgan ELMI 3.39% 0.89% -0.20%

3.4 Annual total return of the Fund for each of the last 5 financial years or since inception (for the financial period ending 30 April)

Period under review

1 Year 30 Apr 11-30 Apr 12

1 Year 30 Apr 10-30 Apr 11

Kenanga Global Emerging Markets Debt Fund

2.91% -12.64% 4.63%

JP Morgan ELMI 3.39% -4.06% 3.52%

1 Year 30 Apr 09-30 Apr 10

Since Inception 22 Jul 08-30 Apr 09

Kenanga Global Emerging Markets Debt Fund

9.80% -11.06%

JP Morgan ELMI 1.36% -4.82%

The performance data of the Fund is calculated based on net asset value per unit with distribution reinvested and is quoted from: Perkasa Normandy Managers Sdn Bhd.

Note: Past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.

4. TRUSTEE’S REPORT

We, CIMB COMMERCE TRUSTEE BERHAD, being the Trustee of Kenanga Global Emerging Markets Debt Fund (formerly known as ING GLOBAL EMERGING MARKETS DEBT) are of the opinion that KENANGA INVESTORS BERHAD (“the Manager”), acting in the capacity of Manager of the Fund, have fulfilled their duties in the following manner for the financial year ended 30 April 2013.

a. The Fund has been managed in accordance with the limitations imposed on the investment powers of the Manager and the Trustee under the Deed, the Securities Commission’s Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007 and other applicable laws during the financial year ended 30 April 2013;

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

c. Creation and cancellation of units have been carried out in accordance with the Deed and relevant regulatory requirements.

For and on behalf ofCIMB COMMERCE TRUSTEE BERHAD

LIEW PIK YOONGHead of Trustee Services

26 June 2013

12 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 13

5. INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS OF KENANGA GLOBAL EMERGING MARKETS DEBT FUND

Report on the financial statements

We have audited the financial statements of Kenanga Global Emerging Markets Debt Fund (“the Fund”), which comprise the statement of financial position as at 30 April 2013, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the financial year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 14 to 37.

Manager’s and Trustee’s responsibility for the financial statements

The Manager of the Fund is responsible for the preparation of financial statements that give a true and fair view in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards. The manager is also responsible for such internal control as the Manager determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Trustee is responsible for ensuring that the Manager maintains proper accounting and other records as are necessary to enable true and fair presentation of these financial statements.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Fund’s preparation of financial statements that give a true and fair view 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. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Manager, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

5. INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS OF KENANGA GLOBAL EMERGING MARKETS DEBT FUND (CONTD.)

Opinion

In our opinion, the financial statements have been properly 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 30 April 2013 and of its financial performance and the cash flows of the Fund for the financial year then ended.

Other matters

1. As stated in Note 3 to the financial statements, the Fund adopted Malaysian Financial Reporting Standards on 1 May 2012 with a transition date of 1 May 2011. These standards were applied retrospectively by directors to the comparative information in these financial statements, including the statements of financial position as at 30 April 2012 and 1 May 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended 30 April 2012 and related disclosures. We were not engaged to report on the comparative information and it is unaudited. Our responsibilities as part of our audit of the financial statements of the Fund for the year ended 30 April 2013 have, in these circumstances, included obtaining sufficient appropriate audit evidence that the opening balances as at 1 May 2012 do not contain misstatements that materially affect the financial position as of 30 April 2013 and financial performance and cash flows for the year then ended.

2. This report is made solely to the unit holders of the Fund, as a body, and for no other purpose. We do not assume responsibility to any other person for the content of this report.

Ernst & Young Yeo Beng YeanAF: 0039 No. 3013/10/14(J)Chartered Accountants Chartered Accountant

Kuala Lumpur, Malaysia

26 June 2013

12 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 13

5. INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS OF KENANGA GLOBAL EMERGING MARKETS DEBT FUND

Report on the financial statements

We have audited the financial statements of Kenanga Global Emerging Markets Debt Fund (“the Fund”), which comprise the statement of financial position as at 30 April 2013, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the financial year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 14 to 37.

Manager’s and Trustee’s responsibility for the financial statements

The Manager of the Fund is responsible for the preparation of financial statements that give a true and fair view in accordance with Malaysian Financial Reporting Standards and International Financial Reporting Standards. The manager is also responsible for such internal control as the Manager determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Trustee is responsible for ensuring that the Manager maintains proper accounting and other records as are necessary to enable true and fair presentation of these financial statements.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Fund’s preparation of financial statements that give a true and fair view 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. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Manager, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

5. INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS OF KENANGA GLOBAL EMERGING MARKETS DEBT FUND (CONTD.)

Opinion

In our opinion, the financial statements have been properly 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 30 April 2013 and of its financial performance and the cash flows of the Fund for the financial year then ended.

Other matters

1. As stated in Note 3 to the financial statements, the Fund adopted Malaysian Financial Reporting Standards on 1 May 2012 with a transition date of 1 May 2011. These standards were applied retrospectively by directors to the comparative information in these financial statements, including the statements of financial position as at 30 April 2012 and 1 May 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended 30 April 2012 and related disclosures. We were not engaged to report on the comparative information and it is unaudited. Our responsibilities as part of our audit of the financial statements of the Fund for the year ended 30 April 2013 have, in these circumstances, included obtaining sufficient appropriate audit evidence that the opening balances as at 1 May 2012 do not contain misstatements that materially affect the financial position as of 30 April 2013 and financial performance and cash flows for the year then ended.

2. This report is made solely to the unit holders of the Fund, as a body, and for no other purpose. We do not assume responsibility to any other person for the content of this report.

Ernst & Young Yeo Beng YeanAF: 0039 No. 3013/10/14(J)Chartered Accountants Chartered Accountant

Kuala Lumpur, Malaysia

26 June 2013

14 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 15

6. FINANCIAL STATEMENT

6.1 STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 30 APRIL 2013

Note 2013 2012RM RM

INVESTMENT INCOMEDividend income 102 112Net gain/ (loss) from

investments:- Financial assets at fair

value through profit or loss (“FVTPL”) 7 200 (2,903)

302 (2,791)

EXPENSESManager’s fee 4 (6) (179)Trustee’s fee 5 - -Auditors’ remuneration 5 - -Tax agent’s fee 5 - -Administration (61) (209)

(67) (388)

NET INCOME/(LOSS) BEFORE TAX 235 (3,179)

Income tax expense 6 - -

NET INCOME/(LOSS) AFTER TAX, REPRESENTING TOTAL COMPREHENSIVE INCOME/ (LOSS) FOR THE YEAR 235 (3,179)

Total comprehensive income/ (loss) is made up as follows:

Realised loss (403) (5,172)Unrealised gain 638 1,993

235 (3,179)

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

6.2 STATEMENT OF FINANCIAL POSITION AS AT 30 APRIL 2013

Note 30.4.2013 30.4.2012 1.5.2011RM RM RM

ASSETS

Collective investment scheme - foreign 7 8,731 8,429 48,130

OTHER ASSETSOther receivables - - 932Cash at bank 349 401 1,128

349 401 2,060

TOTAL ASSETS 9,080 8,830 50,190

LIABILITIES

Amount due to Manager - 6 15TOTAL LIABILITIES - 6 15

EQUITY

NET ASSET VALUE ATTRIBUTABLE TO UNITHOLDERS 8 9,080 8,824 50,175

TOTAL LIABILITIES AND EQUITY 9,080 8,830 50,190

NUMBER OF UNITS IN CIRCULATION 8(a) 19,770 19,770 98,201

NET ASSET VALUE PER UNIT 9 0.4593 0.4463 0.5109

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

14 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 15

6. FINANCIAL STATEMENT

6.1 STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 30 APRIL 2013

Note 2013 2012RM RM

INVESTMENT INCOMEDividend income 102 112Net gain/ (loss) from

investments:- Financial assets at fair

value through profit or loss (“FVTPL”) 7 200 (2,903)

302 (2,791)

EXPENSESManager’s fee 4 (6) (179)Trustee’s fee 5 - -Auditors’ remuneration 5 - -Tax agent’s fee 5 - -Administration (61) (209)

(67) (388)

NET INCOME/(LOSS) BEFORE TAX 235 (3,179)

Income tax expense 6 - -

NET INCOME/(LOSS) AFTER TAX, REPRESENTING TOTAL COMPREHENSIVE INCOME/ (LOSS) FOR THE YEAR 235 (3,179)

Total comprehensive income/ (loss) is made up as follows:

Realised loss (403) (5,172)Unrealised gain 638 1,993

235 (3,179)

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

6.2 STATEMENT OF FINANCIAL POSITION AS AT 30 APRIL 2013

Note 30.4.2013 30.4.2012 1.5.2011RM RM RM

ASSETS

Collective investment scheme - foreign 7 8,731 8,429 48,130

OTHER ASSETSOther receivables - - 932Cash at bank 349 401 1,128

349 401 2,060

TOTAL ASSETS 9,080 8,830 50,190

LIABILITIES

Amount due to Manager - 6 15TOTAL LIABILITIES - 6 15

EQUITY

NET ASSET VALUE ATTRIBUTABLE TO UNITHOLDERS 8 9,080 8,824 50,175

TOTAL LIABILITIES AND EQUITY 9,080 8,830 50,190

NUMBER OF UNITS IN CIRCULATION 8(a) 19,770 19,770 98,201

NET ASSET VALUE PER UNIT 9 0.4593 0.4463 0.5109

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

16 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 17

6.3 STATEMENT OF CHANGES IN EQUITYFOR THE FINANCIAL YEAR ENDED 30 APRIL 2013

NoteUnitholders’

capitalAccumulated

lossesTotal

equityRM RM RM

2013At beginning of the

year 15,088 (6,264) 8,824Total comprehensive

income for the year - 235 235Creation of units 8(a) 5,181 - 5,181Cancellation of units 8(a) (5,160) - (5,160)Distribution

equalisation 10 - - -At end of the year 15,109 (6,029) 9,080

2012At beginning of the

year 53,260 (3,085) 50,175Total comprehensive

loss for the year - (3,179) (3,179)Creation of units 8(a) - - -Cancellation of units 8(a) (38,172) - (38,172)Distribution

equalisation 10 - - -At end of the year 15,088 (6,264) 8,824

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

6.4 STATEMENT OF CASH FLOWSFOR THE FINANCIAL YEAR ENDED 30 APRIL 2013

2013 2012RM RM

CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES

Proceeds from sale of investments 5,000 37,000Purchase of investments (5,102) (202)Dividends received 102 1,044Manager’s fee paid (12) (188)Payment for other fees and expenses (61) (209)Net cash (used in)/generated from

operating and investing activities (73) 37,445

CASH FLOWS FROM FINANCING ACTIVITIES

Cash received from units created 5,181 -Cash paid on units cancelled (5,160) (38,172)Net cash generated from/(used in)

financing activities 21 (38,172)

NET DECREASE IN CASH AND CASH EQUIVALENTS (52) (727)

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 401 1,128

CASH AND CASH EQUIVALENTS AT END OF THE YEAR 349 401

Cash and cash equivalent comprise:Cash at bank 349 401

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

16 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 17

6.3 STATEMENT OF CHANGES IN EQUITYFOR THE FINANCIAL YEAR ENDED 30 APRIL 2013

NoteUnitholders’

capitalAccumulated

lossesTotal

equityRM RM RM

2013At beginning of the

year 15,088 (6,264) 8,824Total comprehensive

income for the year - 235 235Creation of units 8(a) 5,181 - 5,181Cancellation of units 8(a) (5,160) - (5,160)Distribution

equalisation 10 - - -At end of the year 15,109 (6,029) 9,080

2012At beginning of the

year 53,260 (3,085) 50,175Total comprehensive

loss for the year - (3,179) (3,179)Creation of units 8(a) - - -Cancellation of units 8(a) (38,172) - (38,172)Distribution

equalisation 10 - - -At end of the year 15,088 (6,264) 8,824

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

6.4 STATEMENT OF CASH FLOWSFOR THE FINANCIAL YEAR ENDED 30 APRIL 2013

2013 2012RM RM

CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES

Proceeds from sale of investments 5,000 37,000Purchase of investments (5,102) (202)Dividends received 102 1,044Manager’s fee paid (12) (188)Payment for other fees and expenses (61) (209)Net cash (used in)/generated from

operating and investing activities (73) 37,445

CASH FLOWS FROM FINANCING ACTIVITIES

Cash received from units created 5,181 -Cash paid on units cancelled (5,160) (38,172)Net cash generated from/(used in)

financing activities 21 (38,172)

NET DECREASE IN CASH AND CASH EQUIVALENTS (52) (727)

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 401 1,128

CASH AND CASH EQUIVALENTS AT END OF THE YEAR 349 401

Cash and cash equivalent comprise:Cash at bank 349 401

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

18 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 19

6.5 NOTES TO THE FINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 30 APRIL 2013

1. THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES

Kenanga Global Emerging Markets Debt Fund (hereinafter referred to as “The Fund”) was constituted pursuant to the executed Deed dated 12 June 2008 between ING Funds Berhad and CIMB Commerce Trustee Berhad as the Trustee. The Fund commenced operation on 22 July 2008 and will continue to be in operation until terminated by the Trustee as provided under Division 12.1.1 of the Deed. As provided in the Deed, the “accrual period” or financial year shall end on 30 April.

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 and the name of the Fund was changed from ING Global Emerging Markets Debt to Kenanga Global Emerging Markets Debt Fund.

The Fund aims to provide investors with a regular income stream through investments in a diversified selection of fixed income transferable securities, money market instruments, derivatives and deposits, mainly denominated in or having a minimum 2/3 exposure to the currencies of low or middle-income developing countries (“emerging markets”) in Latin America, Asia, Central Europe, Eastern Europe and Africa. To achieve the objective of the Fund, it will invest a minimum 95% in ING (L) Renta Emerging Markets Debt (“IIGEM”), a fund which denominated in US Dollar, domiciled in Luxembourg. The remaining will be invested in liquid assets including money market instruments and deposits with licensed financial institution. IIGEM invests in a diversified portfolio of securities issued by companies established, listed or traded in various countries worldwide and offering an attractive dividend yield.

2. FINANCIAL RISK AND MANAGEMENT OBJECTIVES AND POLICIES

The Fund is exposed to a variety of risks including market risk (which includes price risk and currency risk), liquidity risk, credit risk, country risk and external fund manager risk. Whilst these are the most important types of financial risks inherent in each type of financial 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 set 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 AND MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

a. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk includes price risk and currency risk.

Market risk arises when the value of the investments fluctuates in response to the activities of individual companies, general market or economic conditions. It stems from the fact that there are other economy-wide perils, which threaten all businesses. Hence, investors are exposed to market uncertainties. Fluctuation in the investment prices caused by uncertainties in the economy, political and social environment will affect the fair value of the Fund.

The Manager manages the risk of unfavourable changes in prices by cautious review of the investments and continuous monitoring of their performance and risk profiles.

i. Price risk

Price risk is the risk of unfavourable changes in the fair values of foreign collective investment scheme. The Funds invests in a foreign collective investment scheme which is exposed to price. This may then affect the unit price of Kenanga Global Emerging Markets Debt Fund locally. The target fund manager, ING Investment Management Luxembourg S.A. adopts a risk management strategy according to ING Investment Management’s global investment philosophy and risk management process.

Price risk sensitivity

Manager’s best estimate of the effect on the profit/(loss) for the year and other comprehensive income due to a reasonably possible change in investments in foreign collective investment scheme, with all other variables held constant is indicated in the table below:

Change in price

Increase/ (decrease)

Effect on profit/(loss) for the year

Increase/ (decrease)

Effects on other comprehensive

income Increase/

(decrease)Basis points RM RM

2013Collective investment

scheme - foreign 5/(5) 4/(4) -

18 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 19

6.5 NOTES TO THE FINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 30 APRIL 2013

1. THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES

Kenanga Global Emerging Markets Debt Fund (hereinafter referred to as “The Fund”) was constituted pursuant to the executed Deed dated 12 June 2008 between ING Funds Berhad and CIMB Commerce Trustee Berhad as the Trustee. The Fund commenced operation on 22 July 2008 and will continue to be in operation until terminated by the Trustee as provided under Division 12.1.1 of the Deed. As provided in the Deed, the “accrual period” or financial year shall end on 30 April.

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 and the name of the Fund was changed from ING Global Emerging Markets Debt to Kenanga Global Emerging Markets Debt Fund.

The Fund aims to provide investors with a regular income stream through investments in a diversified selection of fixed income transferable securities, money market instruments, derivatives and deposits, mainly denominated in or having a minimum 2/3 exposure to the currencies of low or middle-income developing countries (“emerging markets”) in Latin America, Asia, Central Europe, Eastern Europe and Africa. To achieve the objective of the Fund, it will invest a minimum 95% in ING (L) Renta Emerging Markets Debt (“IIGEM”), a fund which denominated in US Dollar, domiciled in Luxembourg. The remaining will be invested in liquid assets including money market instruments and deposits with licensed financial institution. IIGEM invests in a diversified portfolio of securities issued by companies established, listed or traded in various countries worldwide and offering an attractive dividend yield.

2. FINANCIAL RISK AND MANAGEMENT OBJECTIVES AND POLICIES

The Fund is exposed to a variety of risks including market risk (which includes price risk and currency risk), liquidity risk, credit risk, country risk and external fund manager risk. Whilst these are the most important types of financial risks inherent in each type of financial 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 set 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 AND MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

a. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk includes price risk and currency risk.

Market risk arises when the value of the investments fluctuates in response to the activities of individual companies, general market or economic conditions. It stems from the fact that there are other economy-wide perils, which threaten all businesses. Hence, investors are exposed to market uncertainties. Fluctuation in the investment prices caused by uncertainties in the economy, political and social environment will affect the fair value of the Fund.

The Manager manages the risk of unfavourable changes in prices by cautious review of the investments and continuous monitoring of their performance and risk profiles.

i. Price risk

Price risk is the risk of unfavourable changes in the fair values of foreign collective investment scheme. The Funds invests in a foreign collective investment scheme which is exposed to price. This may then affect the unit price of Kenanga Global Emerging Markets Debt Fund locally. The target fund manager, ING Investment Management Luxembourg S.A. adopts a risk management strategy according to ING Investment Management’s global investment philosophy and risk management process.

Price risk sensitivity

Manager’s best estimate of the effect on the profit/(loss) for the year and other comprehensive income due to a reasonably possible change in investments in foreign collective investment scheme, with all other variables held constant is indicated in the table below:

Change in price

Increase/ (decrease)

Effect on profit/(loss) for the year

Increase/ (decrease)

Effects on other comprehensive

income Increase/

(decrease)Basis points RM RM

2013Collective investment

scheme - foreign 5/(5) 4/(4) -

20 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 21

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

a. Market Risk (Contd.)

i. Price risk (Contd.)

Price risk sensitivity (Contd.)

Change in price

Increase/ (decrease)

Effect on profit/(loss) for the year

Increase/ (decrease)

Effects on other comprehensive

income Increase/

(decrease)Basis points RM RM

2012Collective investment

scheme - foreign 5/(5) 4/(4) -

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

Price risk concentration

The following table set out the Fund’s exposure and concentration to price risk based on its portfolio of financial instruments as at the reporting date.

Fair value Percentage of NAV2013 2012 2013 2012

RM RM % %

Collective investment scheme - foreign 8,731 8,429 96.2 95.5

ii. Currency Risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

When the foreign currencies fluctuate in an unfavorable movement against Ringgit, the investment face currency loss in addition to capital gain/(loss). This will lead to lower NAV (“net asset value”) of the Fund.

The Fund invests a minimum 95% in IIGEM, denominated in US Dollar, domiciled in Luxembourg. The Manager may consider managing the currency risk using currency hedging. However, this would be subjected to the current market outlook on the currency exposure risk as well.

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

a. Market Risk (Contd.)

ii. Currency Risk (Contd.)

Currency risk sensitivity

The Fund did not have any financial liabilities denominated in foreign currencies as at the reporting date. The following table indicates the currencies to which the Fund had significant exposure at the reporting date on its financial assets. The analysis calculates the effect of a reasonably possible movement of the currency rate against Ringgit Malaysia on equity and on profit/ (loss) with all other variables held constant.

Change in currency rate

Increase/(decrease)

Effect on profit/ (loss) for the year

Increase/ (decrease)

Effect on equity and

NAV Increase/

(decrease)Basis points RM RM

2013USD/RM 5/(5) 4/(4) 4/(4)2012USD/RM 5/(5) 4/(4) 4/(4)

Currency risk concentration

The following table set out the Fund’s exposure to foreign currency exchange rates on its financial assets as at the reporting date.

Fair value Percentage of NAV2013 2012 2013 2012

RM RM % %

USD 8,731 8,429 96.2 95.5

b. Credit Risk

Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Fund by failing to discharge an obligation. The Manager manages the credit risk by undertaking credit evaluation to minimise such risk.

20 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 21

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

a. Market Risk (Contd.)

i. Price risk (Contd.)

Price risk sensitivity (Contd.)

Change in price

Increase/ (decrease)

Effect on profit/(loss) for the year

Increase/ (decrease)

Effects on other comprehensive

income Increase/

(decrease)Basis points RM RM

2012Collective investment

scheme - foreign 5/(5) 4/(4) -

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

Price risk concentration

The following table set out the Fund’s exposure and concentration to price risk based on its portfolio of financial instruments as at the reporting date.

Fair value Percentage of NAV2013 2012 2013 2012

RM RM % %

Collective investment scheme - foreign 8,731 8,429 96.2 95.5

ii. Currency Risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

When the foreign currencies fluctuate in an unfavorable movement against Ringgit, the investment face currency loss in addition to capital gain/(loss). This will lead to lower NAV (“net asset value”) of the Fund.

The Fund invests a minimum 95% in IIGEM, denominated in US Dollar, domiciled in Luxembourg. The Manager may consider managing the currency risk using currency hedging. However, this would be subjected to the current market outlook on the currency exposure risk as well.

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

a. Market Risk (Contd.)

ii. Currency Risk (Contd.)

Currency risk sensitivity

The Fund did not have any financial liabilities denominated in foreign currencies as at the reporting date. The following table indicates the currencies to which the Fund had significant exposure at the reporting date on its financial assets. The analysis calculates the effect of a reasonably possible movement of the currency rate against Ringgit Malaysia on equity and on profit/ (loss) with all other variables held constant.

Change in currency rate

Increase/(decrease)

Effect on profit/ (loss) for the year

Increase/ (decrease)

Effect on equity and

NAV Increase/

(decrease)Basis points RM RM

2013USD/RM 5/(5) 4/(4) 4/(4)2012USD/RM 5/(5) 4/(4) 4/(4)

Currency risk concentration

The following table set out the Fund’s exposure to foreign currency exchange rates on its financial assets as at the reporting date.

Fair value Percentage of NAV2013 2012 2013 2012

RM RM % %

USD 8,731 8,429 96.2 95.5

b. Credit Risk

Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Fund by failing to discharge an obligation. The Manager manages the credit risk by undertaking credit evaluation to minimise such risk.

22 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 23

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

b. Credit Risk (Contd.)

i. Credit risk exposure

At the reporting date, the Fund’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statement of financial position.

ii. Financial assets that are either past due or impaired

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

c. Liquidity Risk

Liquidity risk is defined as the risk that the Fund will encounter difficulty in meeting obligations associated with financial liabilities that are to be 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 cancel its units earlier than expected. The Fund is exposed to cash 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 net asset value per unit at the time of cancellation calculated in accordance with the Fund’s Trust Deed.

Unit trust funds with principal investment strategies that involve foreign securities, derivatives or securities with substantial market and/or credit risk tend to have the greatest exposure to liquidity risks. IIGEM’s investment manager manages the risk by adopting ING’s diversification policy that stipulates single and group issuer limits to confine over-exposure to a single company or group of companies.

The following table analyses the maturity profile of the Fund’s financial assets (undiscounted where appropriate) and financial liabilities in order to provide a complete view of the Fund’s contractual commitments and liquidity.

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

c. Liquidity Risk (Contd.)

Less than 1 month

RM

2013AssetsCollective investment scheme -

foreign 8,731Other assets 349

9,080

LiabilitiesOther liabilities -

-

Net asset value 9,080

Liquidity gap 9,080

2012AssetsCollective investment scheme -

foreign 8,429Other assets 401

8,830

LiabilitiesOther liabilities 6

6

Net asset value 8,824

Liquidity gap 8,824

d. Country Risk

If a fund invests in foreign markets, the foreign investments portion of the fund may be affected by risks specific to the country which it invests in. Such risks include changes in the country economic fundamentals, social and political stability, currency movements and foreign investment policies. These factors may have impact on the prices of the securities that the fund invested in. IIGEM manages the country risk by investing across various countries to diversify this country risk.

22 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 23

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

b. Credit Risk (Contd.)

i. Credit risk exposure

At the reporting date, the Fund’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statement of financial position.

ii. Financial assets that are either past due or impaired

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

c. Liquidity Risk

Liquidity risk is defined as the risk that the Fund will encounter difficulty in meeting obligations associated with financial liabilities that are to be 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 cancel its units earlier than expected. The Fund is exposed to cash 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 net asset value per unit at the time of cancellation calculated in accordance with the Fund’s Trust Deed.

Unit trust funds with principal investment strategies that involve foreign securities, derivatives or securities with substantial market and/or credit risk tend to have the greatest exposure to liquidity risks. IIGEM’s investment manager manages the risk by adopting ING’s diversification policy that stipulates single and group issuer limits to confine over-exposure to a single company or group of companies.

The following table analyses the maturity profile of the Fund’s financial assets (undiscounted where appropriate) and financial liabilities in order to provide a complete view of the Fund’s contractual commitments and liquidity.

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

c. Liquidity Risk (Contd.)

Less than 1 month

RM

2013AssetsCollective investment scheme -

foreign 8,731Other assets 349

9,080

LiabilitiesOther liabilities -

-

Net asset value 9,080

Liquidity gap 9,080

2012AssetsCollective investment scheme -

foreign 8,429Other assets 401

8,830

LiabilitiesOther liabilities 6

6

Net asset value 8,824

Liquidity gap 8,824

d. Country Risk

If a fund invests in foreign markets, the foreign investments portion of the fund may be affected by risks specific to the country which it invests in. Such risks include changes in the country economic fundamentals, social and political stability, currency movements and foreign investment policies. These factors may have impact on the prices of the securities that the fund invested in. IIGEM manages the country risk by investing across various countries to diversify this country risk.

24 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 25

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

e. External Fund Manager Risk

The Kenanga Global Emerging Markets Debt Fund performance is dependent on the performance of the offshore collective investment scheme which in this case is IIGEM managed by ING Investment Management Luxembourg S.A. The manager of IIGEM does not report to the investment committee of Kenanga Investors Berhad. However, the fund is managed according to ING global investment philosophy.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of Accounting

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

b. First-time adoption of MFRS

These are the Fund’s first annual financial statements prepared in accordance with MFRS. For the periods up to and including the financial year ended 30 April 2012, the financial statements of the Fund were prepared in accordance with Financial Reporting Standards (“FRS”) in Malaysia.

The accounting policies set out in Note 3 have been applied in preparing the financial statements of the Fund for the financial year ended 30 April 2013, the comparative information presented in these financial statements for the financial year ended 30 April 2012 and in the preparation of the opening statement of financial position at 1 May 2011 (which is the Fund’s date of transition to MFRS).

The transition to MFRS did not give rise to any significant effects on the financial statements of the Fund.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

c. Standards and interpretations issued but not yet effective

The Manager expect that the new MFRSs, Amendments to MFRSs and Interpretations which are issued but not yet effective for the financial year ended 30 April 2013 will not have a material impact on the financial statements of the Fund in the period of initial application.

d. Financial Assets

Financial assets are recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the financial instrument.

When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs.

The Fund determines the classification of its financial assets at initial recognition, and the categories include financial assets at fair value through profit or loss, (“FVTPL”) and loans and receivables.

i. Financial assets at FVTPL

Financial assets are classified as financial assets at FVTPL if they are held for trading or are designated as such upon initial recognition.

Financial assets held for trading includes foreign collective investment schemes acquired principally for the purpose of selling in the near term.

Subsequent to initial recognition, financial assets at FVTPL are measured at fair value. Changes in the fair value of those financial instruments are recorded in “Net gain or loss on financial assets at fair value through profit or loss”.

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

24 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 25

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

e. External Fund Manager Risk

The Kenanga Global Emerging Markets Debt Fund performance is dependent on the performance of the offshore collective investment scheme which in this case is IIGEM managed by ING Investment Management Luxembourg S.A. The manager of IIGEM does not report to the investment committee of Kenanga Investors Berhad. However, the fund is managed according to ING global investment philosophy.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of Accounting

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

b. First-time adoption of MFRS

These are the Fund’s first annual financial statements prepared in accordance with MFRS. For the periods up to and including the financial year ended 30 April 2012, the financial statements of the Fund were prepared in accordance with Financial Reporting Standards (“FRS”) in Malaysia.

The accounting policies set out in Note 3 have been applied in preparing the financial statements of the Fund for the financial year ended 30 April 2013, the comparative information presented in these financial statements for the financial year ended 30 April 2012 and in the preparation of the opening statement of financial position at 1 May 2011 (which is the Fund’s date of transition to MFRS).

The transition to MFRS did not give rise to any significant effects on the financial statements of the Fund.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

c. Standards and interpretations issued but not yet effective

The Manager expect that the new MFRSs, Amendments to MFRSs and Interpretations which are issued but not yet effective for the financial year ended 30 April 2013 will not have a material impact on the financial statements of the Fund in the period of initial application.

d. Financial Assets

Financial assets are recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the financial instrument.

When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs.

The Fund determines the classification of its financial assets at initial recognition, and the categories include financial assets at fair value through profit or loss, (“FVTPL”) and loans and receivables.

i. Financial assets at FVTPL

Financial assets are classified as financial assets at FVTPL if they are held for trading or are designated as such upon initial recognition.

Financial assets held for trading includes foreign collective investment schemes acquired principally for the purpose of selling in the near term.

Subsequent to initial recognition, financial assets at FVTPL are measured at fair value. Changes in the fair value of those financial instruments are recorded in “Net gain or loss on financial assets at fair value through profit or loss”.

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

26 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 27

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

d. Financial Assets (Contd.)

ii. Loans and receivables

Financial assets with fixed or determinable payment that are not quoted in an active market are classified as loans and receivables.

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

A financial asset is derecognised when the contractual right to receive cash flows from the asset has expired. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received is recognised in profit or loss.

e. Impairment of Financial Assets

The Fund assesses at each reporting date whether there is any objective evidence that a financial assets is impaired.

Trade and other receivables and other financial assets carried at amortised cost

To determine whether there is objective evidence that an impairment loss on financial assets has been incurred the Fund considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments.

If any such evidence exists, the amount of impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

The carrying amount of the financial assets is reduced by the impairment loss directly for all financial assets.

If in a subsequent year, 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 profit or loss.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

f. Income Recognition

Interest income is recognised using effective interest method on an accrual basis.

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, calculated on the daily basis.

The unrealised gain or loss on change in value of investments is measured as the difference between the fair value and the carrying amount of the investment, calculated on a daily basis.

g. Cash and Cash Equivalent

For the purposes of the statement of cash flows, cash and cash equivalent include cash at bank and short term deposits with financial institution.

h. Income Tax Expense

Income tax on the profit or loss for the year comprises current tax. Current tax is the expected amount of income taxes payable in respect of the taxable profit for the year. 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.

i. Unrealised Reserves

Unrealised reserve represents the net gain or loss arising from carrying investment at their fair values and unrealised gain or loss from translating foreign currency monetary items at exchange rates prevailing at the reporting date. This reserve is not distributable in nature.

j. Financial Liabilities

Financial liabilities are classified according to the substance of the collateral arrangements entered into and the definitions of a financial liability.

Financial liabilities within the scope of MFRS 139, are recognised in the statement of financial position when and only when, the Fund becomes a party to the contractual provisions of the financial instrument. The Fund’s liabilities which include amount due to Manager, amount due to Trustee and other payables are recognised initially at fair value plus directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method.

26 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 27

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

d. Financial Assets (Contd.)

ii. Loans and receivables

Financial assets with fixed or determinable payment that are not quoted in an active market are classified as loans and receivables.

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

A financial asset is derecognised when the contractual right to receive cash flows from the asset has expired. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received is recognised in profit or loss.

e. Impairment of Financial Assets

The Fund assesses at each reporting date whether there is any objective evidence that a financial assets is impaired.

Trade and other receivables and other financial assets carried at amortised cost

To determine whether there is objective evidence that an impairment loss on financial assets has been incurred the Fund considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments.

If any such evidence exists, the amount of impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

The carrying amount of the financial assets is reduced by the impairment loss directly for all financial assets.

If in a subsequent year, 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 profit or loss.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

f. Income Recognition

Interest income is recognised using effective interest method on an accrual basis.

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, calculated on the daily basis.

The unrealised gain or loss on change in value of investments is measured as the difference between the fair value and the carrying amount of the investment, calculated on a daily basis.

g. Cash and Cash Equivalent

For the purposes of the statement of cash flows, cash and cash equivalent include cash at bank and short term deposits with financial institution.

h. Income Tax Expense

Income tax on the profit or loss for the year comprises current tax. Current tax is the expected amount of income taxes payable in respect of the taxable profit for the year. 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.

i. Unrealised Reserves

Unrealised reserve represents the net gain or loss arising from carrying investment at their fair values and unrealised gain or loss from translating foreign currency monetary items at exchange rates prevailing at the reporting date. This reserve is not distributable in nature.

j. Financial Liabilities

Financial liabilities are classified according to the substance of the collateral arrangements entered into and the definitions of a financial liability.

Financial liabilities within the scope of MFRS 139, are recognised in the statement of financial position when and only when, the Fund becomes a party to the contractual provisions of the financial instrument. The Fund’s liabilities which include amount due to Manager, amount due to Trustee and other payables are recognised initially at fair value plus directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method.

28 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 29

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

j. Financial Liabilities (Contd.)

A financial liability is derecognised when the obligation under the liability is extinguished. Gain and loss is recognised in profit or loss when the liabilities are derecognised, and through amortisation process.

k. Foreign Currency

i. Functional and presentation currency

The financial statements of the Fund are measured using the currency of the primary economic environment in which the Fund operates (“the functional currency”). The financial statements are presented in Ringgit Malaysia (RM), which is also the Fund’s functional currency.

ii. Foreign currency transactions

In preparing the financial statements of the Fund, transactions in currencies other than the Fund’s functional currency (foreign currencies) are recorded in the functional currency using exchange rates prevailing at the dates of the transactions. At each reporting date, monetary items denominated in foreign currencies are translated at the rates prevailing on the reporting date. All exchange gain or loss, is recognised in the statement of comprehensive income.

Exchange differences arising on the settlement of monetary items, and on the translation of monetary items, are included in statement of comprehensive income for the year.

The principal exchange rate for each respective units of foreign currency ruling at statement of financial position date is as follows:

2013 2012RM RM

1 US Dollar 3.0399 3.0252

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

l. Unitholder’s Capital – NAV Attributable to Unitholders

The unitholders’ contributions to the Fund meet the definition of puttable instruments classified as equity instruments.

Distribution equalisation represents the average distributable amount included in the creation and cancellation prices of units. This amount is either refunded to unitholders by way of distribution and/or adjusted accordingly when units are cancelled.

m. Significant Accounting Judgements and Estimates

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

i. Critical judgements made in applying accounting policies

There are no major judgements 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 financial position date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4. MANAGER’S FEE

The Manager’s fee is computed based on 1.35% per annum of the net assets value of the Fund, calculated on a daily basis, as provided under Division 13(1) of the Deed.

As the Fund invests in units of IIGEM, 1.00% of the Manager’s fee is charged by the IIGEM’s manager, ING Investment Management Luxembourg S.A., and the remaining of 0.35% is charged by the Manager, Kenanga Investors Berhad. Accordingly, there is no double charging of Manager’s fee.

28 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 29

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

j. Financial Liabilities (Contd.)

A financial liability is derecognised when the obligation under the liability is extinguished. Gain and loss is recognised in profit or loss when the liabilities are derecognised, and through amortisation process.

k. Foreign Currency

i. Functional and presentation currency

The financial statements of the Fund are measured using the currency of the primary economic environment in which the Fund operates (“the functional currency”). The financial statements are presented in Ringgit Malaysia (RM), which is also the Fund’s functional currency.

ii. Foreign currency transactions

In preparing the financial statements of the Fund, transactions in currencies other than the Fund’s functional currency (foreign currencies) are recorded in the functional currency using exchange rates prevailing at the dates of the transactions. At each reporting date, monetary items denominated in foreign currencies are translated at the rates prevailing on the reporting date. All exchange gain or loss, is recognised in the statement of comprehensive income.

Exchange differences arising on the settlement of monetary items, and on the translation of monetary items, are included in statement of comprehensive income for the year.

The principal exchange rate for each respective units of foreign currency ruling at statement of financial position date is as follows:

2013 2012RM RM

1 US Dollar 3.0399 3.0252

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

l. Unitholder’s Capital – NAV Attributable to Unitholders

The unitholders’ contributions to the Fund meet the definition of puttable instruments classified as equity instruments.

Distribution equalisation represents the average distributable amount included in the creation and cancellation prices of units. This amount is either refunded to unitholders by way of distribution and/or adjusted accordingly when units are cancelled.

m. Significant Accounting Judgements and Estimates

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

i. Critical judgements made in applying accounting policies

There are no major judgements 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 financial position date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4. MANAGER’S FEE

The Manager’s fee is computed based on 1.35% per annum of the net assets value of the Fund, calculated on a daily basis, as provided under Division 13(1) of the Deed.

As the Fund invests in units of IIGEM, 1.00% of the Manager’s fee is charged by the IIGEM’s manager, ING Investment Management Luxembourg S.A., and the remaining of 0.35% is charged by the Manager, Kenanga Investors Berhad. Accordingly, there is no double charging of Manager’s fee.

30 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 31

5. TRUSTEE’S FEE, AUDITOR’S REMUNERATION AND TAX AGENT’S FEE

Trustee’s fee is calculated on a daily basis at 0.08% per annum of the net asset value of the Fund, as provided under Division 13(2) and subject to a minimum fee of RM18,000 per annum as provided under Ninth Schedule of the Deed.

For the current financial year, the Trustee fees, auditor’s remuneration and tax agent fees charged are borne by the Manager.

6. INCOME TAX EXPENSE

Income tax is calculated at the Malaysian statutory tax rate of 25% of the estimated assessable income for the financial year.

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. The effective rate does not approximate the statutory tax rate mainly due to interest income exempted from tax in accordance with Schedule 6 of the Income Tax Act, 1967 and gain on disposal of investments are treated as capital in nature for tax purposes.

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

2013 2012RM RM

Net income/(loss) before tax 235 (3,179)

Tax at Malaysian statutory tax rate of 25% (2012: 25%) 59 (795)

Income not subject to tax (76) -Expenses not deductible for tax

purposes (under Section 63B of the Income Tax Act, 1967) 17 795

Tax expense for the year - -

7. COLLECTIVE INVESTMENT SCHEME - FOREIGN

30.4.2013 30.4.2012 1.5.2011RM RM RM

Financial assets held for trading, at FVTPL:

Collective investment scheme - foreign 8,731 8,429 48,130

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

Realised loss on disposals (438) (4,896)

Unrealised changes in fair values 638 1,993

200 (2,903)

Details of collective investment scheme - foreign as at 30 April 2013:

No. of unit Cost

RM

Fair Value

RM

Percentage of NAV

%

ING (L) Renta EM Debts 62 9,306 8,731 96.2Total collective investment

scheme - foreign 9,306 8,731 96.2

Excess of cost over fair value (575)

8. NET ASSET VALUE ATTRIBUTABLE TO UNITHOLDERS

Net asset value attributed to unitholders is represented by:

Note 30.4.2013 30.4.2012 1.5.2011RM RM RM

Unitholders’ contribution (a) 15,109 15,088 53,260

Retained earnings:Realised reserves (b) (5,454) (5,051) 121Unrealised

reserves (c) (575) (1,213) (3,206)9,080 8,824 50,175

30 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 31

5. TRUSTEE’S FEE, AUDITOR’S REMUNERATION AND TAX AGENT’S FEE

Trustee’s fee is calculated on a daily basis at 0.08% per annum of the net asset value of the Fund, as provided under Division 13(2) and subject to a minimum fee of RM18,000 per annum as provided under Ninth Schedule of the Deed.

For the current financial year, the Trustee fees, auditor’s remuneration and tax agent fees charged are borne by the Manager.

6. INCOME TAX EXPENSE

Income tax is calculated at the Malaysian statutory tax rate of 25% of the estimated assessable income for the financial year.

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. The effective rate does not approximate the statutory tax rate mainly due to interest income exempted from tax in accordance with Schedule 6 of the Income Tax Act, 1967 and gain on disposal of investments are treated as capital in nature for tax purposes.

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

2013 2012RM RM

Net income/(loss) before tax 235 (3,179)

Tax at Malaysian statutory tax rate of 25% (2012: 25%) 59 (795)

Income not subject to tax (76) -Expenses not deductible for tax

purposes (under Section 63B of the Income Tax Act, 1967) 17 795

Tax expense for the year - -

7. COLLECTIVE INVESTMENT SCHEME - FOREIGN

30.4.2013 30.4.2012 1.5.2011RM RM RM

Financial assets held for trading, at FVTPL:

Collective investment scheme - foreign 8,731 8,429 48,130

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

Realised loss on disposals (438) (4,896)

Unrealised changes in fair values 638 1,993

200 (2,903)

Details of collective investment scheme - foreign as at 30 April 2013:

No. of unit Cost

RM

Fair Value

RM

Percentage of NAV

%

ING (L) Renta EM Debts 62 9,306 8,731 96.2Total collective investment

scheme - foreign 9,306 8,731 96.2

Excess of cost over fair value (575)

8. NET ASSET VALUE ATTRIBUTABLE TO UNITHOLDERS

Net asset value attributed to unitholders is represented by:

Note 30.4.2013 30.4.2012 1.5.2011RM RM RM

Unitholders’ contribution (a) 15,109 15,088 53,260

Retained earnings:Realised reserves (b) (5,454) (5,051) 121Unrealised

reserves (c) (575) (1,213) (3,206)9,080 8,824 50,175

32 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 33

8. NET ASSET VALUE ATTRIBUTABLE TO UNITHOLDERS (CONTD.)

a. Unitholders’ contribution

30.4.2013 30.4.2012No. of units RM No. of units RM

At beginning of the year 19,770 15,088 98,201 53,260Distribution

equalisation- - -

Add: Creation of units 11,394 5,181 - -Less: Cancellation of

units(11,394) (5,160) (78,431) (38,172)

At end of the year 19,770 15,109 19,770 15,088

b. Realised reserves

30.4.2013 30.4.2012RM RM

At beginning of the year (5,051) 121Net realised loss (403) (5,172)At end of the year (5,454) (5,051)

c. Unrealised reserves

30.4.2013 30.4.2012RM RM

At beginning of the year (1,213) (3,206)Net unrealised gain 638 1,993At end of the year (575) (1,213)

In accordance with the Deed, the maximum number of units that can be issued for circulation is 300,000,000 (2012:300,000,000). The number of units legally or beneficially held by the Manager, Kenanga Investors Berhad and parties related to the Manager (if any) as of 30 April 2013 were nil (2012: nil).

Pursuant to Sixth Schedule of the Deed dated 12 June 2008, the Manager is entitled to a sales charge of not more than 8% of the net asset value of the Fund. The sales charge was 2% of the net asset value for the financial year ended 30 April 2013.

9. NET ASSET VALUE PER UNIT

Net asset value attributable to unitholders is classified as equity in the statement of financial position.

The net asset value per unit is calculated by dividing the net assets of RM9,080 (2012: RM8,824) by the 19,770 units (2012: 19,770) units in issue as of 30 April 2013.

10. DISTRIBUTION EQUALISATION

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.

11. INCOME DISTRIBUTION

No income distribution was declared by the Fund for the financial year ended 30 April 2013 (2012: nil).

12. PORTFOLIO TURNOVER RATIO

The portfolio turnover ratio (“PTR”) for the current financial year is 0.55 times (2012: 0.41 times).

PTR is the ratio of the average of the acquisitions and disposals of investments of the Fund for the year to the average net asset value of the Fund, calculated on a daily basis.

13. MANAGEMENT EXPENSES RATIO

The management expense ratio (“MER”) for the current financial year is 0.73% (2012: 0.85%).

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

14. TRANSACTIONS WITH RELATED PARTIES

Transaction value

Percentage of total

RM %

ING Investment Management Luxembourg S.A.* 10,102 100.0

The above transaction value is in respect of investment in foreign collective investment scheme. Transaction in this security does not involve any commission or brokerage fees.

* As the Fund is in its nature a feeder fund to a global fund, IIGEM, hence most of the transactions were made with the global fund manager, ING Investment Management Luxembourg S.A.

32 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 33

8. NET ASSET VALUE ATTRIBUTABLE TO UNITHOLDERS (CONTD.)

a. Unitholders’ contribution

30.4.2013 30.4.2012No. of units RM No. of units RM

At beginning of the year 19,770 15,088 98,201 53,260Distribution

equalisation- - -

Add: Creation of units 11,394 5,181 - -Less: Cancellation of

units(11,394) (5,160) (78,431) (38,172)

At end of the year 19,770 15,109 19,770 15,088

b. Realised reserves

30.4.2013 30.4.2012RM RM

At beginning of the year (5,051) 121Net realised loss (403) (5,172)At end of the year (5,454) (5,051)

c. Unrealised reserves

30.4.2013 30.4.2012RM RM

At beginning of the year (1,213) (3,206)Net unrealised gain 638 1,993At end of the year (575) (1,213)

In accordance with the Deed, the maximum number of units that can be issued for circulation is 300,000,000 (2012:300,000,000). The number of units legally or beneficially held by the Manager, Kenanga Investors Berhad and parties related to the Manager (if any) as of 30 April 2013 were nil (2012: nil).

Pursuant to Sixth Schedule of the Deed dated 12 June 2008, the Manager is entitled to a sales charge of not more than 8% of the net asset value of the Fund. The sales charge was 2% of the net asset value for the financial year ended 30 April 2013.

9. NET ASSET VALUE PER UNIT

Net asset value attributable to unitholders is classified as equity in the statement of financial position.

The net asset value per unit is calculated by dividing the net assets of RM9,080 (2012: RM8,824) by the 19,770 units (2012: 19,770) units in issue as of 30 April 2013.

10. DISTRIBUTION EQUALISATION

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.

11. INCOME DISTRIBUTION

No income distribution was declared by the Fund for the financial year ended 30 April 2013 (2012: nil).

12. PORTFOLIO TURNOVER RATIO

The portfolio turnover ratio (“PTR”) for the current financial year is 0.55 times (2012: 0.41 times).

PTR is the ratio of the average of the acquisitions and disposals of investments of the Fund for the year to the average net asset value of the Fund, calculated on a daily basis.

13. MANAGEMENT EXPENSES RATIO

The management expense ratio (“MER”) for the current financial year is 0.73% (2012: 0.85%).

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

14. TRANSACTIONS WITH RELATED PARTIES

Transaction value

Percentage of total

RM %

ING Investment Management Luxembourg S.A.* 10,102 100.0

The above transaction value is in respect of investment in foreign collective investment scheme. Transaction in this security does not involve any commission or brokerage fees.

* As the Fund is in its nature a feeder fund to a global fund, IIGEM, hence most of the transactions were made with the global fund manager, ING Investment Management Luxembourg S.A.

34 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 35

15. SEGMENTAL REPORTING

As stated in Note 1 to the financial statements, the Fund is a feeder fund whereby at least 95% of the Funds’ net asset value will be invested in IIGEM while maintaining up to a maximum of 5% of the Fund’s net asset value in liquid assets. IIGEM is an open unit trust fund in Luxembourg and is managed by ING Investment Management Luxembourg S.A., a related company with the Manager.

As the Fund is by nature a feeder fund to an underlying fund, it is not requited to disclose its investments by business or geographical segments at the fund level.

16. FINANCIAL INSTRUMENTS

a. Classification of financial instruments

The Fund’s financial assets and financial liabilities are measured on an ongoing basis at either fair value or at amortised cost based on their respective classification. The significant accounting policies in Note 3 describe how the classes of financial instruments are measured, and how income and expenses, including fair value gain and loss, 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.

Financial assets at

FVTPLLoans and

receivablesFinancial liabilities Total

RM RM RM RM

30.04.2013AssetsCollective investment

scheme - foreign 8,731 - - 8,731Cash at bank - 349 - 349

8,731 349 - 9,080

LiabilitiesAmount due to

Manager - - - -- - - -

16. FINANCIAL INSTRUMENTS (CONTD.)

a. Classification of financial instruments

Financial assets at

FVTPLLoans and

receivablesFinancial liabilities Total

RM RM RM RM

30.04.2012AssetsCollective investment

scheme - foreign 8,429 - - 8,429Cash at bank - 401 - 401

8,429 401 - 8,830

LiabilitiesAmount due to

Manager - - 6 6- - 6 6

01.05.2011AssetsCollective investment

scheme - foreign 48,130 - - 48,130Other receivables - 932 - 932Cash at bank - 1,128 - 1,128

48,130 2,060 - 50,190

LiabilitiesAmount due to

Manager - - 15 15- - 15 15

b. Financial instruments that are carried at fair value

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

The following tables show the fair value measurements by level of fair value measurement hierarchy:

34 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 35

15. SEGMENTAL REPORTING

As stated in Note 1 to the financial statements, the Fund is a feeder fund whereby at least 95% of the Funds’ net asset value will be invested in IIGEM while maintaining up to a maximum of 5% of the Fund’s net asset value in liquid assets. IIGEM is an open unit trust fund in Luxembourg and is managed by ING Investment Management Luxembourg S.A., a related company with the Manager.

As the Fund is by nature a feeder fund to an underlying fund, it is not requited to disclose its investments by business or geographical segments at the fund level.

16. FINANCIAL INSTRUMENTS

a. Classification of financial instruments

The Fund’s financial assets and financial liabilities are measured on an ongoing basis at either fair value or at amortised cost based on their respective classification. The significant accounting policies in Note 3 describe how the classes of financial instruments are measured, and how income and expenses, including fair value gain and loss, 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.

Financial assets at

FVTPLLoans and

receivablesFinancial liabilities Total

RM RM RM RM

30.04.2013AssetsCollective investment

scheme - foreign 8,731 - - 8,731Cash at bank - 349 - 349

8,731 349 - 9,080

LiabilitiesAmount due to

Manager - - - -- - - -

16. FINANCIAL INSTRUMENTS (CONTD.)

a. Classification of financial instruments

Financial assets at

FVTPLLoans and

receivablesFinancial liabilities Total

RM RM RM RM

30.04.2012AssetsCollective investment

scheme - foreign 8,429 - - 8,429Cash at bank - 401 - 401

8,429 401 - 8,830

LiabilitiesAmount due to

Manager - - 6 6- - 6 6

01.05.2011AssetsCollective investment

scheme - foreign 48,130 - - 48,130Other receivables - 932 - 932Cash at bank - 1,128 - 1,128

48,130 2,060 - 50,190

LiabilitiesAmount due to

Manager - - 15 15- - 15 15

b. Financial instruments that are carried at fair value

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

The following tables show the fair value measurements by level of fair value measurement hierarchy:

36 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 37

16. FINANCIAL INSTRUMENTS (CONTD.)

b. Financial instruments that are carried at fair value (Contd.)

Level 1 Level 2 Level 3 TotalRM RM RM RM

Investment at FVTPL:Collective investment

scheme - foreign (30.4.2013) - 8,731 - 8,731

Collective investment scheme - foreign (30.4.2012) - 8,429 - 8,429

Collective investment scheme - foreign (1.5.2011) - 48,130 - 48,130

Level 1: Quoted prices in active marketLevel 2: Model with all significant inputs which are

observable market dataLevel 3: Model with inputs not based on observable

market date

The fair value of foreign collective investment scheme is stated based on the net asset value of the unit trust fund at the reporting date.

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

Cash and cash equivalents, amounts due to Manager/Trustee and other receivables/payables

The carrying amounts approximate fair values due to the relatively short term maturity of these financial instruments.

17. CAPITAL MANAGEMENT

The capital of the Fund can vary depending on the demand for creation and cancellation to the Fund. The Fund’s approved fund size and units in issue at the end of the year is disclosed in Note 8.

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 achieve consistent returns while safeguarding capital by using various investment strategies;

c. To maintain sufficient liquidity to meet the expenses of the Fund, and to meet cancellation requests as they arise; and

d. To maintain sufficient fund size to make the operation of the Fund cost-efficient.

No changes were made to the capital management objectives, policies or processes during the current financial year.

18. SIGNIFICANT EVENTS

On 21 December 2012, IFB Management Holdings Sdn Bhd, the holding company of ING Funds Berhad had entered into a conditional Sales and Purchase agreement with Kenanga Investors Berhad on the disposal of ING Funds Berhad.

The High Court of Malaya has granted the term of the vesting order on 25 April 2013 and the effective transfer date of the businesses was 8 June 2013.

36 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 37

16. FINANCIAL INSTRUMENTS (CONTD.)

b. Financial instruments that are carried at fair value (Contd.)

Level 1 Level 2 Level 3 TotalRM RM RM RM

Investment at FVTPL:Collective investment

scheme - foreign (30.4.2013) - 8,731 - 8,731

Collective investment scheme - foreign (30.4.2012) - 8,429 - 8,429

Collective investment scheme - foreign (1.5.2011) - 48,130 - 48,130

Level 1: Quoted prices in active marketLevel 2: Model with all significant inputs which are

observable market dataLevel 3: Model with inputs not based on observable

market date

The fair value of foreign collective investment scheme is stated based on the net asset value of the unit trust fund at the reporting date.

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

Cash and cash equivalents, amounts due to Manager/Trustee and other receivables/payables

The carrying amounts approximate fair values due to the relatively short term maturity of these financial instruments.

17. CAPITAL MANAGEMENT

The capital of the Fund can vary depending on the demand for creation and cancellation to the Fund. The Fund’s approved fund size and units in issue at the end of the year is disclosed in Note 8.

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 achieve consistent returns while safeguarding capital by using various investment strategies;

c. To maintain sufficient liquidity to meet the expenses of the Fund, and to meet cancellation requests as they arise; and

d. To maintain sufficient fund size to make the operation of the Fund cost-efficient.

No changes were made to the capital management objectives, policies or processes during the current financial year.

18. SIGNIFICANT EVENTS

On 21 December 2012, IFB Management Holdings Sdn Bhd, the holding company of ING Funds Berhad had entered into a conditional Sales and Purchase agreement with Kenanga Investors Berhad on the disposal of ING Funds Berhad.

The High Court of Malaya has granted the term of the vesting order on 25 April 2013 and the effective transfer date of the businesses was 8 June 2013.

38 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 39

7. STATEMENT BY THE MANAGER

I, Abdul Razak Bin Ahmad, being the director of Kenanga Investors Berhad, do hereby state that, in the opinion of the Manager, the accompanying statement of financial position as at 30 April 2013 and the related statement of comprehensive income, statement of changes in equity and statement of cash flows for the financial year ended 30 April 2013 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 financial position of KENANGA GLOBAL EMERGING MARKETS DEBT FUND (formerly known as ING GLOBAL EMERGING MARKETS DEBT) as at 30 April 2013 and of its financial performance and cash flows for the year then ended and comply with the requirements of the Deed.

For and on behalf of the ManagerKenanga Investors Berhad

Abdul Razak Bin Ahmad

Kuala Lumpur

26 June 2013

CORPORATE DIRECTORY

The ManagerKenanga Investors Berhad (353563-P)Suite 12.02, 12th Floor, Kenanga International,Jalan Sultan Ismail, 50250 Kuala Lumpur.Tel: 03-2057 3688 Fax : 03-2161 8807Website: www.KenangaInvestors.com.myEmail: investorservices@kenanga.com.my

Board of Directors• DatukSyedAhmadAlweeAlsree (Chairman)

• SyedZafilenSyedAlwee (Independent Director)

• YMRajaDato’SeriAbdulAzizbinRajaSalim (Independent Director)

• VivekSharma (Independent Director)

• BruceKhoYawHuat

• AbdulRazakBinAhmad

• PeterJohnRayner

Investment ManagerKenanga Investors Berhad (353563-P)

TrusteeCIMB Commerce Trustee Berhad (313031-A)

AuditorsErnst&Young(AF:0039)

38 Kenanga Global Emerging Markets Debt Fund Annual Report Kenanga Global Emerging Markets Debt Fund Annual Report 39

7. STATEMENT BY THE MANAGER

I, Abdul Razak Bin Ahmad, being the director of Kenanga Investors Berhad, do hereby state that, in the opinion of the Manager, the accompanying statement of financial position as at 30 April 2013 and the related statement of comprehensive income, statement of changes in equity and statement of cash flows for the financial year ended 30 April 2013 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 financial position of KENANGA GLOBAL EMERGING MARKETS DEBT FUND (formerly known as ING GLOBAL EMERGING MARKETS DEBT) as at 30 April 2013 and of its financial performance and cash flows for the year then ended and comply with the requirements of the Deed.

For and on behalf of the ManagerKenanga Investors Berhad

Abdul Razak Bin Ahmad

Kuala Lumpur

26 June 2013

CORPORATE DIRECTORY

The ManagerKenanga Investors Berhad (353563-P)Suite 12.02, 12th Floor, Kenanga International,Jalan Sultan Ismail, 50250 Kuala Lumpur.Tel: 03-2057 3688 Fax : 03-2161 8807Website: www.KenangaInvestors.com.myEmail: investorservices@kenanga.com.my

Board of Directors• DatukSyedAhmadAlweeAlsree (Chairman)

• SyedZafilenSyedAlwee (Independent Director)

• YMRajaDato’SeriAbdulAzizbinRajaSalim (Independent Director)

• VivekSharma (Independent Director)

• BruceKhoYawHuat

• AbdulRazakBinAhmad

• PeterJohnRayner

Investment ManagerKenanga Investors Berhad (353563-P)

TrusteeCIMB Commerce Trustee Berhad (313031-A)

AuditorsErnst&Young(AF:0039)

40 Kenanga Global Emerging Markets Debt Fund Annual Report

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