kenanga global dividend fund...no. 12, jalan batai laut 3, taman intan 41300 klang, selangor darul...

INTERIM REPORT

For the Financial Period from 1 May 2017 to 31 October 2017

KENANGA GLOBAL DIVIDEND fuND

KENANGA GLOBAL DIVIDEND fuND

Contents Page

Corporate Directory iiDirectory of Manager’s Offices iiifund Information 1Manager’s Report 2 - 5fund Performance 6 - 9Trustee’s Report 10Statement by the Manager 11financial Statements 12 - 32

ii Kenanga Global Dividend Fund Interim Report

CORPORATE DIRECTORYManager: Kenanga Investors Berhad (Company No. 353563-P)

Registered OfficeLevel 17, Kenanga Tower,237, Jalan Tun Razak,50400 Kuala Lumpur, Malaysia.Tel: 03-2172 2888 Fax: 03-2172 2999

Business OfficeLevel 14, Kenanga Tower,237, Jalan Tun Razak,50400 Kuala Lumpur, Malaysia.Tel: 03-2172 3000 Fax: 03-2172 3080E-mail:[email protected]: www.KenangaInvestors.com.my

Board Of DirectorsDatuk Syed Ahmad Alwee Alsree (Chairman)Syed Zafilen Syed Alwee (Independent

Director)Peter John Rayner (Independent Director)Imran Devindran bin Abdullah (Independent

Director)Dato’ Bruce Kho Yaw HuatIsmitz Matthew De Alwis

Investment Committee Dato’ Bruce Kho Yaw Huat (Chairman) Syed Zafilen Syed Alwee (Independent

Member)Peter John Rayner (Independent Member)Imran Devindran bin Abdullah (Independent

Member)Ismitz Matthew De Alwis

Company Secretary: Norliza Abd Samad (MAICSA 7011089)

Level 17, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia

Trustee: CIMB Commerce Trustee Berhad (Company No. 313031-A)

Registered Office Level 13, Menara CIMBJalan Stesen Sentral 2Kuala Lumpur Sentral50490 Kuala Lumpur.Tel: 03-2261 8888Fax: 03-2261 0099Website: www.cimb.com

Business Office Level 21, Menara CIMBJalan Stesen Sentral 2Kuala Lumpur Sentral50490 Kuala Lumpur.Tel: 03-2261 8888Fax: 03-2261 9889

Auditor: Ernst & Young (AF: 0039)

Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur.Tel: 03-7495 8000 Fax: 03-2095 5332

Tax Adviser: Ernst & Young Tax Consultants Sdn Bhd (Company No. 179793-K)

Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur.Tel: 03-7495 8000 Fax: 03-2095 5332

Membership: federation Of Investment Managers Malaysia (fIMM)19-06-1, 6th Floor, Wisma Tune, 19, Lorong Dungun, Damansara Heights, 50490 Kuala Lumpur, Malaysia.Tel: 03-2093 2600 Fax: 03-2093 2700 Website: www.fimm.com.my

Kenanga Global Dividend Fund Interim Report iii

DIRECTORY Of MANAGER’S OffICESRegional Branch Offices :

Kuala LumpurLevel 13, Kenanga Tower,237, Jalan Tun Razak,50400 Kuala Lumpur, Malaysia.Tel: 03-2172 3123 Fax: 03-2172 3133

Johor BahruLot 11.03, 11th Floor, Menara MSC CyberportNo. 5, Jalan Bukit Meldrum80300 Johor Bahru , JohorTel: 07-223 7505 / 4798 Fax: 07-223 4802

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

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

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

KuantanNo. B8, Ground Floor, Jalan Tun Ismail 125000 Kuantan Pahang.Tel : 09-514 3688Fax : 09-514 3838

Penang5.04, 5th Floor, Menara Boustead Penang No. 39, Jalan Sultan Ahmad Shah 10050 Penang. Tel : 04-210 6628Fax : 04-210 6644

IpohSuite 1, 2nd Floor,No. 63, Persiaran Greenhill,30450 Ipoh, Perak, MalaysiaTel: 05-254 7573 / 7570 / 7575Fax: 05-254 7606

Miri 2nd Floor, Lot 1264, Centre Point Commercial Centre, Jalan Melayu, 98000 Miri, Sarawak Tel: 085-416 866 Fax: 085-322 340

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

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

Petaling Jaya44B, Jalan SS21/35Damansara Utama47400 Petaling Jaya, SelangorTel: 03-7710 8828Fax: 03-7710 8830

1 Kenanga Global Dividend Fund Interim Report

1. fuND INfORMATION

1.1 fund Name

Kenanga Global Dividend fund (KGDf or the fund)

1.2 fund Category / Type

Feeder / Growth

1.3 Investment Objective

The Fund aims to achieve capital growth by investing in a diversified portfolio of high dividend–yielding equities globally through a target fund.

1.4 Investment Strategy

The Fund will invest a minimum of 95% of its Net Asset Value (NAV) in NN (L) Global High Dividend (NNGHD) domiciled in Luxembourg. The remaining will be invested in liquid assets including money market instruments and deposits with licensed financial institutions which will enable the Manager to fulfil investors’ redemption requests.

1.5 Duration

The Fund was launched on 19 March 2007 and it shall exist as long as it appears to the Manager and the Trustee that it is in the interests of the unit holders for it to continue.

1.6 Performance Benchmark

MSCI World Index

1.7 Distribution Policy

Income (if any) will be distributed annually on the best effort basis.

1.8 Breakdown of unit holdings of KGDf as at 31 October 2017

Size of holdingsNo. of

unitholdersNo. of units

held5,000 and below 0 05,001 - 10,000 87 799,92510,001-50,000 172 3,830,23150,001-500,000 49 5,192,687500,001 and above 7 10,592,749Total 315 20,415,592

Kenanga Global Dividend Fund Interim Report 2

2. MANAGER’S REPORT

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

For the financial period under review, the Fund fulfilled its investment objective, having invested in a diversified portfolio of global high dividend yielding equities through a target fund.

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

Performance Chart Since Launch (19/03/2007 - 31/10/2017)Kenanga Global Dividend fund vs MSCI World AC Index

Source: Novagni Analytics and Advisory Sdn Bhd

2.3 Investment strategies and policies employed during the financial period under review

For the financial period under review, the Fund invested 97.0% of its net asset value in NN (L) Global High Dividend which is a fund denominated in Euro and domiciled in Luxembourg in line with its investment strategy and policy. The remaining was invested in liquid assets including money market instruments and deposits with licensed financial institutions.

2.4 The fund’s asset allocation as at 31 October 2017 and comparison with the previous financial period

Asset 31 Oct 2017 31 Oct 2016Collective investment scheme - foreign 97.0% 92.2%Short term deposits and cash 3.0% 7.8%

Reason for the differences in asset allocation

There was a higher asset allocation towards the collective investment scheme of over 5% from the previous financial period under review.

Period

21.56

2016

2015

Sales Charge

Max 6.50%

Annual Management Fee

1.80% p.a.

53.48

2014

Annual Trustee Fee

0.08% p.a.

FUND PERFORMANCE (%)

Lee Sook Yee

Designated Fund Manager

CALENDAR YEAR FUND PERFORMANCE (%)#

2013

2012

Benchmark

10.04

19.43

9.87

32.93

Aims to achieve capital growth by investing in a diversified

portfolio of high dividend-yielding equities globally through a

target fund i.e. NN (L) Global High Dividend fund which is

domiciled in Luxembourg.

MSCI World Index

FUND OBJECTIVE

Fund Category/Type

Feeder / Growth

Kenanga Global Dividend Fund December 2017

Benchmark

Trustee

CIMB Commerce Trustee Berhad

Launch Date

19 March 2007

CUMULATIVE FUND PERFORMANCE (%)#

Period

1 month

6 months

1 year

3 years

5 years

Since Launch

-0.03

2.31

14.85

Fund

37.43

81.83

21.92

Benchmark

2.08

Fund

11.52

6.39

14.46

25.98

6.92

5.75

117.50

65.71

#Source: Lipper, 31 October 2017

9.18

HISTORICAL FUND PRICE *FUND SIZE * NAV PER UNIT *

Lipper Analytics15 Nov 2017

3-yearFund Volatility

Very High

-60

-40

-20

0

20

40

60

80

Ma

r 07

Jun

07

De

c 0

7

Jun

08

De

c 0

8

Jun

09

De

c 0

9

Jun

10

De

c 1

0

Jun

11

De

c 1

1

Jun

12

De

c 1

2

Jun

13

De

c 1

3

Jun

14

De

c 1

4

Jun

15

De

c 1

5

Jun

16

De

c 1

6

Jun

17

Oct

17

% Cumulative Return, Launch to 31/10/2017

Kenanga Global Dividend : 21.92 MSCI World CR USD : 65.71

Source: Novagni Analytics and Advisory Sdn Bhd

All fees and charges payable to the Manager and the Trustee are

subject to GST as may be imposed by the government or other

authorities from time to time.

2.02%

Based on the fund’s portfolio returns as at 15 October 2017, the Volatility Factor (VF) for this fund is 10.83 and is classified as “Very High”. (Source: Lipper). “Very High”

includes funds with VF that are above 10.735 (source: Lipper). The VF means there is a possibility for the fund in generating an upside return or downside return around

this VF. The Volatility Class (VC) is assigned by Lipper based on quintile ranks of VF for qualified funds. VF is subject to monthly revision and VC will be revised every six

months. The fund’s portfolio may have changed since this date and there is no guarantee that the fund will continue to have the same VF or VC in the future. Presently,

only funds launched in the market for at least 36 months will display the VF and its VC. The Master Prospectus dated 2 July 2017 and the Supplemental Prospectus (if

any), its Product Highlights Sheets (“PHS”) or Supplemental Disclosure Document (“SDD”) (if any) have been registered with the Securities Commission Malaysia, who

takes no responsibility for its contents. A copy of the Master Prospectus, Supplemental Prospectus (if any), SDD (if any) and the PHS are obtainable at our offices.

Application for Units can only be made on receipt of application form referred to in and accompanying the Master Prospectus and/or Supplemental Prospectus (if any),

SDD (if any) and PHS. Investors are advised to read and understand the Master Prospectus, its PHS and any other relevant product disclosure documents involved before

investing. Investors are also advised to consider the fees and charges before investing. Unit prices and distributions may go down as well as up. Where a unit

split/distribution is declared, investors are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from pre-unit split NAV/cum-

distribution NAV to post-unit split NAV/ex-distribution NAV. Where a unit split is declared, investors should note that the value of their investment in Malaysian Ringgit will

TOP EQUITY HOLDINGS OF TARGET FUND (% NAV) *

2.02%

1.99%

Lowest

TARGET FUND COUNTRY ALLOCATION (% NAV) *ASSET ALLOCATION (% NAV) *

DISTRIBUTION HISTORY

0.08% p.a.

TARGET FUND SECTOR ALLOCATION (% NAV) *

Date

RM 0.2145

24-Oct-17

10-Mar-09

Since Inception

HISTORICAL FUND PRICE *

Highest

RM 0.5724

* Source: Kenanga Investors Berhad, 31 October 2017

FUND SIZE *

RM 11.69 million

NAV PER UNIT *

4

5

2

3

1 APPLE INC.

ROYAL DUTCH SHELL PLC CLASS A

CISCO SYSTEMS, INC.

CITIGROUP INC

BNP PARIBAS SA CLASS A

2.21%

Redemption Charge

1.0% p.a. of NAV

2.11%

Not Applicable

RM 0.5778

95.30%

95.40%

98.50%

4.70%

4.60%

1.50%

August

September

October

FD/NI/Cash NN (L) Global High Dividend

47.29%

36.11%

8.37%

6.97%

1.26%

North America

Europe

Japan

Cash

Asia Pacific ex Japan

19.56%

13.11%

11.68%

10.21%

8.86%

8.61%

6.97%

6.78%

6.10%

4.09%

4.03%

Financials

Health Care

Information Technology

Consumer Discretionary

Industrials

Energy

Cash

Consumer Staples

Telecommunication Services

Utilities

Others

remain unchanged after the distribution of the additional units. A Fund’s track record does not guarantee its future performance. Investors are advised to read and

understand the contents of the unit trust loan financing risk disclosure statement before deciding to borrow to purchase units. Kenanga Investors Berhad is committed to

preventing Conflict of Interest between its various businesses and activities and between its clients / directors / shareholders and employees by having in place procedures

and measures for identifying and properly managing any apparent, potential and perceived Conflict of Interest by making disclosures to Clients, where appropriate. The

Manager wishes to highlight the specific risks of the Fund are currency risk, external fund manager risk and collective investment scheme risk.


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

Period under review

Kenanga Global Dividend fund 2.31%MSCI World Index 5.75%

Source: Lipper

For the financial period under review, the Fund registered a return of 2.31% underperforming its benchmark which returned 5.75%. The underperformance was due to unfavourable asset allocation and stock selection of the target fund.

2.6 Review of the market

Market Review

Global equities enjoyed a strong gain of 9.5% over the 6‐month period ending October 31st, 2017. The best performing regions were the Emerging Markets (+16.1%) and Japan (+13.2%). Europe (+10.9%) also performed well, while North America (+8.8%) lagged a little. From a sector perspective, technology stocks (+18.9%) were the best performers on the back of good earnings results and investor appetite. Materials (+14.4%) also did well, helped by a weaker dollar and robust economic data out of China. Telecoms (+1.7%) and Consumer Staples (+1.1%) were underperformers. The latter was impacted by concerns about competition from Amazon, regulation fears in the tobacco industry, and renewed reflation expectations. In terms of style, Value (+7.9%) underperformed Growth (+11.1%) and large caps (+9.6%) slightly underperformed small caps (+10.2%).

In the UK, Brexit uncertainties increased following the outcome of the UK elections, which saw Theresa May’s Conservative party lose their majority in parliament. In contrast Emmanuel Macron’s sweeping victory in the French presidential election allayed market fears of a populist uprising in the Eurozone, which lowered political risk and helped boost investor sentiment towards Eurozone stocks. Macroeconomic data was also supportive, with consumer and business sentiment indicators hitting their highest levels for many years. The ECB made a dovish taper announcement by deciding to scale back asset purchases but also extend them without an explicit deadline.

In the US, the economic print at the end of the period was positive: unemployment remained low at 4.2%, average hourly earnings were growing at 2.9% and the ISM manufacturing index was at a level of 58.7. During the period the US Fed raised rates by 25 basis points to a range of 1% to 1.25%, but a modest inflation print tempered expectations about the future pace of rate hikes, leading to a flattening of the US yield curve. In October the Fed announced its intention to cut its balance sheet, but said that the unwind to the stimulus would be slow and gradual. Looking at corporate earnings US companies continued to perform strongly, with the majority of them beating earnings expectations again. On the political front there were increased tensions with North Korea, while earlier scepticism on tax reform seemed to turnaround towards the end of the period

Japan’s annualized GDP growth for Q2 was an amazing 4% before being revising downwards to 2.6%. Nonetheless it was the sixth straight quarter of expansion. Inflation remained below the Bank of Japan’s 2% as companies continued to hold back with raising prices and wage growth remained subdued. Snap elections towards the end of the period handed a landslide victory to incumbent Prime Minister Abe’s LDP, providing him with a mandate to continue with the implementation of his economic policy.


2.6 Review of the market (Contd.)

Market Review (Contd.)

In Emerging Markets, Chinese equities (+28.4%) benefitted from generally positive economic data and ignored a credit downgrade from Moody’s. The credit rating agency cited concerns about rising debt and slowing growth in their commentary, but this was rebuked by China’s finance ministry. In Brazil (+11.0%) President Temer became embroiled in a political scandal. However, the lower house voted not to approve corruption charges against him, giving a boost to the country’s reform process.

Market Outlook and Current Strategy

The underperformance of Value versus Growth is at historically extreme levels, which begs the question whether now is a good time to step into the style. Empirical evidence suggests that Value outperforms Growth over the long term and today we’re at 2 standard deviations below the long term average. Historically this level is seen as a strong indicator for a reversal. A closer look reveals how Value’s recent underperformance is correlated to low interest rates and quantitative easing, which makes sense since the net present value of longer dated growth stocks is worth a lot more when discount rates are very low. However, central banks are now starting to cut their balance sheet expansion, a signal that the QE era is slowly coming to an end.

For investors, this should offer some margin of safely to rotate into value stocks, also taking into account the global economic recovery. The fundamental backdrop for equity markets remains invariably strong and is the best we have seen in years. Macroeconomic data surprised to the upside over the past month, especially in developed markets. Based on manufacturing PMI’s the Eurozone manufacturing sector is expanding at the highest pace in more than a decade. In a cyclical recovery we expect defensive growth or ‘low volatility’ sectors to underperform and values segments such as banking to outperform. Banking – the largest value sector – should benefit from the additional support of higher loan growth, lower loan-loss provisioning and dividend growth.

Source: NN Investment Partners

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 financial period

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


2.10 Circumstances that materially affect any interests of the unit holders

During the financial period under review, there are no circumstances that materially affect any interests of the unit holders.

2.11 Rebates & Soft commissions

Any rebates received are channelled 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 financial period under review, the Manager did not receive any rebates or soft commissions from stockbrokers.


3. fuND PERfORMANCE

3.1 Details of portfolio composition of the Fund for the financial period as at 31 October 2017 against last three financial years as at 30 April are as follow:

a. Distribution among industry sectors and category of investments:

As at fY fY fY31.10.2017 2017 2016 2015

% % % %

Collective investment scheme - foreign 97.0 94.6 96.0 96.2

Short term deposits and cash 3.0 5.4 4.0 3.8

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 31 October 2017, the target fund NN (L) Global High Dividend has invested in the following markets:

Source: NN Investment Partners Luxembourg S.A.

BelgiumSweden

SingaporeGermany

SpainNetherlands

[Cash]Hong Kong

CanadaItaly

SwitzerlandJapan

United KingdomFrance

United States

1.19%0.21%0.80%1.26%2.01%2.10%2.11%2.11%2.46%3.59%3.94%8.37%9.27%11.84%44.83%

MaterialsUtilities

Telecommunication ServicesConsumer Staples

[Cash]Energy

Industrials Consumer Discretionary

Information TechnologyHealth Care

Financial

4.03%4.09%6.10%6.78%6.97%8.61%8.86%10.21%11.68%13.11%19.56%


3.1 Details of portfolio composition of the Fund for the financial period as at 31 October 2017 against last three financial years as at 30 April are as follow:(contd.)

c. Distribution among industry sectors

At 31 October 2017, the target fund NN (L) Global High Dividend has invested in the following sectors.

Source: NN Investment Partners Luxembourg S.A.

BelgiumSweden

SingaporeGermany

SpainNetherlands

[Cash]Hong Kong

CanadaItaly

SwitzerlandJapan

United KingdomFrance

United States

1.19%0.21%0.80%1.26%2.01%2.10%2.11%2.11%2.46%3.59%3.94%8.37%9.27%11.84%44.83%

MaterialsUtilities

Telecommunication ServicesConsumer Staples

[Cash]Energy

Industrials Consumer Discretionary

Information TechnologyHealth Care

Financial

4.03%4.09%6.10%6.78%6.97%8.61%8.86%10.21%11.68%13.11%19.56%


3.2 Performance details of the Fund for the financial period ended 31 October 2017 against last three financial years ended 30 April are as follows:

Period from1.5.2017 to 31.10.2017

fY2017

fY2016

fY2015

Net asset value (“NAV”) (RM Million) 11.69 11.39 11.01 13.51

Units in circulation (Million) 20.42 20.36 23.89 29.45NAV per unit (RM) 0.5724 0.5595 0.4609 0.4587Highest NAV per unit (RM) 0.5778 0.5732 0.5231 0.4711Lowest NAV per unit (RM) 0.5540 0.4453 0.4183 0.3876Total return (%) 2.31 21.39 0.48 10.32- Capital growth (%) 2.31 21.39 0.48 10.32- Income growth (%) - - - -Gross distribution per unit

(sen) - - - -Net distribution per unit

(sen) - - - -Management expense ratio

(“MER”) (%) 1 0.56 0.70 0.64 0.68Portfolio turnover ratio

(“PTR”) (times) 2 0.10 0.70 0.50 0.62

Note: TotalreturnistheactualreturnoftheFundfortherespectivefinancialperiod/years,computed based on NAV per unit and net of all fees.

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

Above NAV and NAV per unit are not shown as ex-distribution as there was no distribution declared by the Fund in the current financial period under review.

1 MERisloweragainstpreviousfinancialyearmainlyduetolowerrecoveredexpensesincurredduringthefinancialperiodunderreview.

2 PTR is lower against previous financial year mainly due to shorter period underreview.


3.3 Average total return of the fund

1 Year31 Oct 16 – 31 Oct 17

3 Years31 Oct 14 – 31 Oct 17

5 Years31 Oct 12 – 31 Oct 17

Kenanga Global Dividend fund 14.85% 11.22% 12.47%MSCI World Index 21.56% 14.89% 16.09%

Source: Lipper

3.4 Annual total return of the fund

Period under review30 April 17 – 31 Oct 17

1 Year30 April 16 - 30 April 17



1 Year30 Apr 13 - 30 Apr

14

1 Year30 Apr 12 - 30 Apr

13Kenanga Global Dividend fund 2.31% 21.39% 0.48% 10.32% 19.48% 12.48%MSCI World Index 5.75% 24.92% 3.05% 14.92% 22.72% 14.70%

Source: Lipper

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


4 TRuSTEE’S REPORT TO THE uNITHOLDERS Of KENANGA GLOBAL DIVIDEND fuND

We, CIMB Commerce Trustee Berhad, being the Trustee for Kenanga Global Dividend fund (“the Fund”), are of the opinion that Kenanga Investors Berhad (“the Manager”), acting in the capacity of Manager of the Fund, has fulfilled its duties in the following manner for the financial period from 1 May 2017 to 31 October 2017.

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

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

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

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

and relevant regulatory requirements. For and on behalf of CIMB Commerce Trustee Berhad Lee Kooi Yoke Chief Operating Officer Kuala Lumpur, Malaysia

28 December 2017


5. STATEMENT BY THE MANAGER

I, Ismitz Matthew De Alwis, being a director of Kenanga Investors Berhad, do hereby state that, in the opinion of the Manager, the accompanying statement of financial position as at 31 October 2017 and the related statement of comprehensive income, statement of changes in net asset value and statement of cash flows for the financial period from 1 May 2017 to 31 October 2017 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 Dividend fund as at 31 October 2017 and of its financial performance and cash flows for the financial period from 1 May 2017 to 31 October 2017 and comply with the requirements of the Deed.

For and on behalf of the Manager KENANGA INVESTORS BERHAD

ISMITZ MATTHEW DE ALWIS Executive Director/Chief Executive Officer

Kuala Lumpur, Malaysia

28 December 2017


6. fINANCIAL STATEMENTS

6.1 STATEMENT Of COMPREHENSIVE INCOME fOR THE fINANCIAL PERIOD fROM 1 MAY 2017 TO 31 OCTOBER 2017 (unaudited)

Note1.5.2017 to 31.10.2017

1.5.2016 to 31.10.2016

RM RM

INVESTMENT INCOME

Interest income 6,697 5,193Net gain from investments:- Financial assets at fair value through profit or

loss (“FVTPL”) 4 295,432 802,152 302,129 807,345

EXPENSES

Manager’s fee 5 21,040 18,000 Trustee’s fee 6 4,713 4,549 Auditors’ remuneration 4,675 4,320 Tax agent’s fee 2,027 2,033 Administration expenses 7,476 6,507

39,931 35,409

NET INCOME BEfORE TAX 262,198 771,936

Income tax 7 - -

NET INCOME AfTER TAX, REPRESENTING TOTAL COMPREHENSIVE INCOME fOR THE fINANCIAL PERIOD 262,198 771,936

Net income after tax is made up as follows:Realised gain 120,076 292,137Unrealised gain 4 142,122 479,799

262,198 771,936

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


6.2 STATEMENT Of fINANCIAL POSITION AS AT 31 OCTOBER 2017 (unaudited)

Note 31.10.2017 31.10.2016RM RM

ASSETS

INVESTMENTS

Financial assets at FVTPL 4 11,509,987 9,076,833 Short term deposits 8 318,026 750,000

11,828,013 9,826,833

OTHER ASSETS

Other receivables 9 200,026 238 Cash at bank 40,310 14,822

240,336 15,060

TOTAL ASSETS 12,068,349 9,841,893

LIABILITIES

Amount due to Manager 363,139 3,242 Amount due to Trustee 825 762 Other payables 10 18,788 22,916 TOTAL LIABILITIES 382,752 26,920

EQuITY

Unit holders’ contribution 44,687,418 44,287,996Accumulated losses (33,001,821) (34,473,023)NET ASSET VALuE (“NAV”) ATTRIBuTABLE

TO uNIT HOLDERS 11 11,685,597 9,814,973

TOTAL LIABILITIES AND EQuITY 12,068,349 9,841,893

NuMBER Of uNITS IN CIRCuLATION 11(a) 20,415,592 19,691,897

NET ASSET VALuE PER uNIT (RM) 0.5724 0.4984



6.3 STATEMENT Of CHANGES IN NET ASSET VALuE fOR THE fINANCIAL PERIOD fROM 1 MAY 2017 TO 31 OCTOBER 2017 (unaudited)

Noteunit holders’ contribution

Accumulated losses Total NAV

RM RM RM

1.5.2017 to 31.10.2017At beginning of the financial

period 44,657,041 (33,264,019) 11,393,022 Total comprehensive income - 262,198 262,198 Creation of units 11(a) 2,829,103 - 2,829,103 Cancellation of units 11(a) (2,797,700) - (2,797,700)Distribution equalisation 11(a) (1,026) - (1,026)At end of the financial period 44,687,418 (33,001,821) 11,685,597

1.5.2016 to 31.10.2016At beginning of the financial

period 46,256,453 (35,244,959) 11,011,494 Total comprehensive income - 771,936 771,936 Creation of units 11(a) 997,109 - 997,109 Cancellation of units 11(a) (2,958,729) - (2,958,729)Distribution equalisation 11(a) (6,837) - (6,837)At end of the financial period 44,287,996 (34,473,023) 9,814,973



6.4 STATEMENT Of CASH fLOWS fOR THE fINANCIAL PERIOD fROM 1 MAY 2017 TO 31 OCTOBER 2017 (unaudited)

1.5.2017 to 31.10.2017

1.5.2016 to 31.10.2016

RM RM

CASH fLOWS fROM OPERATING AND INVESTING ACTIVITIES

Proceeds from sale of financial asset at FVTPL 750,000 2,620,000 Interest received 6,721 4,991 Trustee’s fee paid (4,595) (4,500)Payments for other fees and expenses (8,123) (3,166)Auditors’ remuneration paid (9,000) (8,500)Manager’s fee paid (20,427) (17,748)Purchase of financial asset at FVTPL (1,390,000) (720,000) Net cash (used in)/generated from operating and investing

activities (675,424) 1,871,077

CASH fLOWS fROM fINANCING ACTIVITIES

Cash received from units created 2,863,388 1,464,631 Cash paid on units cancelled (2,450,985) (2,995,635)Net cash generated from/(used in) financing activities 412,403 (1,531,004)

NET (DECREASE)/ INCREASE IN CASH AND CASH EQuIVALENTS (263,021) 370,073

CASH AND CASH EQuIVALENTS AT BEGINNING Of THE fINANCIAL PERIOD 621,357 424,749

CASH AND CASH EQuIVALENTS AT END Of THE fINANCIAL PERIOD 358,336 764,822

Cash and cash equivalents comprise:Cash at bank 40,310 14,822 Short term deposits 318,026 750,000

358,336 764,822



6.5 NOTES TO THE fINANCIAL STATEMENTS fOR THE fINANCIAL PERIOD fROM 1 MAY 2017 TO 31 OCTOBER 2017 (unaudited)

1. THE fuND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES

Kenanga Global Dividend Fund (“the Fund”) was constituted pursuant to the executed Deed dated 6 February 2007 (collectively, together with deeds supplemental thereto, referred to as (“the Deed”) between the Manager, Kenanga Funds Berhad, and CIMB Commerce Trustee Berhad (“the Trustee”). The Fund commenced operations on 19 March 2007 and will continue to be in operation until terminated by the Trustee as provided under Part 12 of the Deed.

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

Kenanga Investors Berhad is a wholly-owned subsidiary of Kenanga Investment Bank Berhad. Prior to 1 November 2016, Kenanga Investment Bank Berhad was a wholly-owned subsidiary of K & N Kenanga Holdings Berhad that was listed on the Main Market of Bursa Malaysia Securities Berhad. Pursuant to an internal reorganisation exercise completed on 1 November 2016, Kenanga Investment Bank Berhad has become the holding company of K & N Kenanga Holdings Berhad. On 2 November 2016, Kenanga Investment Bank Berhad has assumed the listing status of K & N Kenanga Holdings Berhad. All of these companies are incorporated in Malaysia.

The principal place of business of the Manager is Level 14, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur.

The Fund aims to achieve capital growth by investing in a diversified portfolio of high dividend-yielding equities globally through a target fund. To achieve the objective of the Fund, it will invest a minimum 95% of its funds in NN (L) Global High Dividend (“NNGHD”), a fund which is managed by NN Investment Partners Luxembourg S.A. (“NNIP”) denominated in Euro (“EUR”), domiciled in Luxembourg. The remaining funds will be invested in liquid assets including money market instruments and deposits with licensed financial institutions. NNGHD 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 MANAGEMENT OBJECTIVES AND POLICIES

To the extent the Fund invests in NNGHD, which has investment in global equities, it is exposed to market risk (which includes interest rate risk, price risk and currency risk), credit risk, liquidity risk and regulatory reportings.

The Manager monitors the portfolio of NNGHD to ensure that the underlying fund is positioned to meet its investment objectives. The Manager may seek alternative collective investment schemes or any permissible instruments that are consistent with the objective of the Fund.

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 interest rate risk, price risk and currency risk.


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

a. Market risk (contd.)

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 economy-wide perils, which threaten all businesses. Hence, investors are exposed to market uncertainties. Fluctuation in the investments’ prices caused by uncertainties in the economic, political and social environment will affect the NAV 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. Interest rate risk

The Fund has minimal exposure to interest rate risk as placements with licensed financial institutions are short term in nature and have fixed interest rates. In addition, the Fund has indirect exposure to interest rate risk through NNGHD.

ii. Price risk

Price risk is the risk of unfavourable changes in the fair values of foreign collective investment scheme. The Fund invests in foreign collective investment scheme which are exposed to price fluctuations. This may then affect the NAV of the Fund.

Price risk sensitivity

The Manager’s best estimate of the effect on the profit for the financial period 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:

Changes in price

Increase/ (Decrease)

Effects on profit for

the financial period

Increase/ (Decrease)

Basis points RM

31.10.2017Collective investment scheme - foreign 5/(5) 5,755/(5,755)

31.10.2016Collective investment scheme - foreign 5/(5) 4,538/(4,538)

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




ii. Price risk (contd.)

Price risk concentration

The following table sets 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 NAV31.10.2017 31.10.2016 31.10.2017 31.10.2016

RM RM % %

Collective investment scheme - foreign 11,509,987 9,076,833 98.5 92.5

iii. 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 unfavourable movement against Ringgit, the investment face currency loss in addition to capital gain/(loss). This will lead to lower NAV of the Fund.

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

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 profit with all other variables held constant.

Changes in currency rate Increase/

(Decrease)Basis points

Effects on profit for the financial period

Increase/ (Decrease)RM

31.10.2017EUR/RM 5/(5) 5,755/(5,755)

31.10.2016EUR/RM 5/(5) 4,538/(4,538)

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




iii. Currency risk (contd.)

Currency risk concentration

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

fair value Percentage of NAV31.10.2017 31.10.2016 31.10.2017 31.10.2016

RM RM % %

EUR 11,509,987 9,076,833 98.5 92.5

b. Credit risk

Prior to investing in NNGHD, the Manager has performed an evaluation of the performance and track record of NNGHD, as well as the fund management team of NNGHD.

i. Credit risk exposure

As at the reporting date, the Fund’s maximum exposure to credit risk is represented by the carrying amount of each class of financial asset 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.

iii. Credit quality of financial assets

The Fund invests in deposits with financial institutions licensed under the Financial Services Act 2013 and Islamic Financial Services Act 2013. The following table analyses the licensed financial institutions by rating category:

Short term deposits

Percentage of total short term deposits Percentage of NAV

31.10.2017 31.10.2016 31.10.2017 31.10.2016% % % %

RatingP1 100.0 100.0 2.7 7.6



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 cancellation of its units on a regular basis. Units sold to unit holders by the Manager are cancellable at the unit holders’ option based on the Fund’s NAV per unit at the time of cancellation calculated in accordance with the 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. NNGHD’s investment manager manages the risk by adopting NNIP’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 and financial liabilities in order to provide a complete view of the Fund’s contractual commitments and liquidity.

up to 1 yearNote 31.10.2017 31.10.2016

RM RM

AssetsFinancial assets at FVTPL 11,509,987 9,076,833 Short term deposits 318,026 750,000 Other assets 240,336 15,060

i. 12,068,349 9,841,893

LiabilitiesOther liabilities ii. 363,964 4,004

Equity iii. 11,685,597 9,814,973

Liquidity gap 18,788 22,916

i. financial assets

Analysis of financial asset at FVTPL into maturity groupings is based on the expected date on which this asset will be realised. The Fund’s investments in foreign collective investment scheme have been included in the “up to 1 year” category on the assumption that this is highly liquid investment which can be realised should all of the Fund’s unit holders’ equity be required to be redeemed. For other assets, the analysis into maturity groupings is based on the remaining period from the end of the reporting period to the contractual maturity date or if earlier, the expected date on which the assets will be realised.



c. Liquidity risk (contd.)

ii. financial liabilities

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

iii. Equity

As the unit holders can request for redemption of their units, they have been categorised as having a maturity of “up to 1 year”.

d. Regulatory reportings

It is the Manager’s responsibility to ensure full compliance of all requirements under the Guidelines on Unit Trust Funds issued by Securities Commission Malaysia. Any breach of any such requirement will be reported in the mandatory reporting to Securities Commission Malaysia on a monthly basis.

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 the Malaysian Accounting Standards Board (“MASB”) and International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

The accounting policies adopted are consistent with those of the previous financial period except for the adoption of the new and amended MFRS which became effective for the Fund on 1 May 2017. The adoption of the new and amended MFRS did not have any significant impact on the financial position or performance of the Fund.

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

b. Standards, amendments and interpretation issued but not yet effective

As at the reporting date, the following Standards, Amendments and Interpretation Committee’s (“IC”) Interpretation that have been issued by MASB will be effective for the Fund in future periods. The Fund intends to adopt the relevant standards when they become effective.


3. SuMMARY Of SIGNIfICANT ACCOuNTING POLICIES (CONTD.)

b. Standards, amendments and interpretation issued but not yet effective (contd.)

Description

Effective for financial period beginning on or

after

Amendments to MFRS contained in the documents entitled “Annual improvements to MFRS Standards 2014 - 2016 Cycle” 1 January 2017

Amendments to MFRS 107: Disclosure Initiative 1 January 2017Amendments to MFRS 112: Recognition of Deferred Tax

Assets for Unrealised Losses 1 January 2017Amendments to MFRS contained in the documents entitled

“Annual improvements to MFRS Standards 2014 - 2016 Cycle” 1 January 2018

Amendments to MFRS 2: Classification and Measurement of Shared-based Payment Transactions 1 January 2018

Amendments to MFRS 4: Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts 1 January 2018

Amendments to MFRS 140: Transfers of Investment Property 1 January 2018MFRS 9: Financial Instruments 1 January 2018MFRS 15: Revenue from Contracts with Customers 1 January 2018MFRS 15: Clarifications to MFRS 15 1 January 2018IC Interpretation 22: Foreign Currency Transactions and

Advance Consideration 1 January 2018MFRS 16: Leases 1 January 2019MFRS 17: Insurance Contracts 1 January 2021Amendments to MFRS 10 and MFRS 128: Sale or

Contribution of Assets between an Investor and its Associate or Joint Venture

To be announced by MASB

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

MFRS 9 replaces MFRS 139 on the following requirements: classification and measurement of financial assets and financial liabilities as defined in MFRS 139, impairment methodology and hedge accounting. The Fund is in the process of making an assessment of the impact of this Standard.



c. financial assets

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

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

The Fund determines the classification of its financial assets at initial recognition.

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 include foreign collective investment scheme 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 profit or loss.

Interest earned and distribution revenue element of such instruments are recorded separately in “interest income” and “distribution income”.

Exchange differences on financial assets at FVTPL are not recognised in profit or loss but are included in net gain or net loss on changes in fair value of financial assets at FVTPL.

ii. Receivables

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

Subsequent to initial recognition, receivables are measured at amortised cost using the effective interest method. Gain or loss is recognised in profit or loss when the receivable is 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.

d. Impairment of financial assets

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

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.



d. Impairment of financial assets (contd.)

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

If, in a subsequent 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.

e. Income

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

Interest income is recognised using the effective interest method.

Distribution income is recognised on declared basis, when the right to receive the distribution is established.

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

f. Cash and cash equivalents

For the purposes of the statement of cash flows, cash and cash equivalents include cash at bank and short term deposits with licensed financial institutions with insignificant risk of changes in value.

g. Income tax

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

As no temporary differences have been identified, no deferred tax has been recognised.

h. unrealised reserve

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



i. financial liabilities

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

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

A financial liability is derecognised when the obligation under the liability is extinguished.

Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through amortisation process.

j. unit holders’ contribution – NAV attributable to unit holders

The unit holders’ contribution to the Fund is classified as equity instruments.

Distribution equalisation represents the average amount of undistributed net income included in the creation or cancellation price of units. This amount is either refunded to unit holders by way of distribution and/or adjusted accordingly when units are released back to the Trustee.

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 profit or loss.

Exchange differences arising on the settlement of monetary items, and on the translation of monetary items, are included in profit or loss for the financial period.

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

31.10.2017 31.10.2016RM RM

1 EUR 4.9291 4.6021



l. Distribution

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

m. Significant accounting judgments and estimates

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

i. Critical judgments made in applying accounting policies

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

ii. Key sources of estimation uncertainty

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

4. fINANCIAL ASSETS AT fVTPL

31.10.2017 31.10.2016 RM RM

Financial assets held for trading, at FVTPL:Collective investment scheme - foreign 11,509,987 9,076,833

1.5.2017 to 31.10.2017

1.5.2016 to 31.10.2016

RM RMNet gain on financial assets at FVTPL comprised:

Realised gain on disposals 153,310 322,353 Unrealised changes in fair values 142,122 479,799

295,432 802,152


4. fINANCIAL ASSETS AT fVTPL (CONTD.)

Details of financial assets at FVTPL as at 31 October 2017:

Quantity Cost fair valuePercentage

of NAVRM RM %

Collective investment scheme - foreign

NNGHD 5,293 9,640,481 11,509,987 98.5Total collective

investment scheme - foreign, representing total financial assets at fVTPL 9,640,481 11,509,987 98.5

unrealised gain on financial asset at fVTPL 1,869,506

5. MANAGER’S fEE

The Manager’s fee is calculated on a daily basis at a rate not less than 0.5% per annum and not exceeding 3.0% per annum of the NAV of the Fund as provided under Division 13.1 of the Deed.

The Manager is currently charging Manager’s fee of 1.80% per annum of the NAV of the Fund (financial period from 1 May 2016 to 31 October 2016: 1.80% per annum).

As the Fund invests in units of NNGHD, 1.50% of the Manager’s fee is charged by the NNGHD’s manager, NNIP, and the remaining 0.30% is charged by the Manager. Accordingly, there is no double charging of Manager’s fee.

6. TRuSTEE’S fEE

Pursuant to Second Supplemental Deed dated 25 July 2014, the Trustee’s fee is calculated at a rate not exceeding 0.08% per annual of the NAV of the Fund and subject to a minimum fee of RM9,000 per annum.

The Trustee’s fee is currently calculated at 0.08% per annum of the NAV of the Fund (financial period from 1 May 2016 to 31 October 2016: 0.08% per annum).

7. INCOME TAX

Income tax is calculated at the Malaysian statutory tax rate of 24% of the estimated assessable income for the current and previous financial periods.

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.


7. INCOME TAX (CONTD.)

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

1.5.2017 to 31.10.2017

1.5.2016 to 31.10.2016

RM RM

Net income before tax 262,198 771,936

Tax at Malaysian statutory tax rate of 24% (financial period from 1 May 2016 to 31 October 2016: 24%) 62,928 185,265

Tax effect of:Income not subject to tax (72,511) (193,763)Expenses not deductible for tax purposes 2,134 2,044 Restriction on tax deductible expenses for unit trust fund 7,449 6,454

Income tax for the financial period - -

8. SHORT TERM DEPOSITS

Short term deposits are held with licensed financial institutions in Malaysia at the prevailing interest rates.

9. OTHER RECEIVABLE

31.10.2017 31.10.2016RM RM

Amount due from target fund manager 200,000 -Interest receivable from short term deposits 26 238

200,026 238

10. OTHER PAYABLES

31.10.2017 31.10.2016RM RM

Accrual for auditors’ remuneration 4,175 4,320 Accrual for tax agent’s fees 6,027 6,033 Provision for printing and other expenses 8,586 12,563

18,788 22,916


11. NET ASSET VALuE ATTRIBuTABLE TO uNIT HOLDERS

NAV attributed to unit holders is represented by:

Note 31.10.2017 31.10.2016RM RM

Unit holders’ contribution (a) 44,687,418 44,287,996 Accumulated losses:

Realised reserves (34,871,327) (35,893,574)Unrealised reserves 1,869,506 1,420,551

(33,001,821) (34,473,023)

11,685,597 9,814,973

(a) unit holders’ contribution

1.5.2017 to 31.10.2017 1.5.2016 to 31.10.2016No. of units RM No. of units RM

At beginning of the financial period 20,364,373 44,657,041 23,890,607 46,256,453

Add: Creation of units 5,011,759 2,829,103 2,070,018 997,109

Less: Cancellation of units (4,960,540) (2,797,700) (6,268,728) (2,958,729)

Distribution equalisation - (1,026) - (6,837)

At end of the financial period 20,415,592 44,687,418 19,691,897 44,287,996

The number of units legally or beneficially held by the Manager, Kenanga Investors Berhad, and parties related to the Manager as at 31 October 2017 were nil (31 October 2016: nil).

12. PORTfOLIO TuRNOVER RATIO (“PTR”)

PTR for the financial period from 1 May 2017 to 31 October 2017 is 0.10 times (financial period from 1 May 2016 to 31 October 2016: 0.17 times).

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


13. MANAGEMENT EXPENSE RATIO (“MER”)

MER for the financial period from 1 May 2017 to 31 October 2017 is 0.56% (financial period from 1 May 2016 to 31 October 2016: 0.58%).

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

14. TRANSACTIONS WITH LICENSED fINANCIAL INSTITuTIONS

Transaction value

Percentage of total

RM %

NNIP* 2,200,000 100.0

* As the Fund is by nature a feeder fund to a global fund, NNGHD, hence substantial transactions were made with the target fund manager, NNIP.

The above transaction values are in respect of investments in foreign collective investment scheme. Transactions in these investments do not involve any commission or brokerage fees.

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’ NAV will be invested in NNGHD and maintaining a minimum of 2% of the Fund’s NAV in liquid assets. NNGHD is an open ended unit trust fund in Luxembourg and is managed by NNIP.

As the Fund is by nature a feeder fund to an underlying fund, disclosure by business or geographical segments is not relevant.

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 gains and losses, are recognised.


16. fINANCIAL INSTRuMENTS (CONTD.)

a. Classification of financial instruments (contd.)

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

financial assets at

fVTPL Receivablesfinancial liabilities Total

RM RM RM RM

31.10.2017AssetsCollective

investment scheme - foreign 11,509,987 - - 11,509,987

Short term deposits - 318,026 - 318,026Other receivables - 200,026 - 200,026Cash at bank - 40,310 - 40,310

11,509,987 558,362 - 12,068,349

LiabilitiesAmount due to

Manager - - 363,139 363,139Amount due to

Trustee - - 825 825- - 363,964 363,964

31.10.2016AssetsCollective

investment scheme - foreign 9,076,833 - - 9,076,833

Short term deposits - 750,000 - 750,000 Other receivable - 238 - 238 Cash at bank - 14,822 - 14,822

9,076,833 765,060 - 9,841,893

LiabilitiesAmount due to

Manager - - 3,242 3,242Amount due to

Trustee - - 762 762 - - 4,004 4,004


16. fINANCIAL INSTRuMENTS (CONTD.)

b. financial instruments not carried at fair value and which their carrying amounts are reasonable approximations of 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 table shows the fair value measurements by level of the fair value measurement hierarchy:

Level 1 Level 2 Level 3 TotalRM RM RM RM

Investments:31.10.2017Collective investment

scheme - foreign - 11,509,987 - 11,509,987

31.10.2016Collective investment

scheme - foreign - 9,076,833 - 9,076,833

Level 1: Listed prices in active marketLevel 2: Model with all significant inputs which are observable market dataLevel 3: Model with inputs not based on observable market data

The fair value of foreign collective investment scheme is stated based on the NAV per unit of the NNGHD at the reporting date.

c. financial instruments not carried at fair value and which their carrying amounts are reasonable approximations of fair value

The carrying amounts of the Fund’s other financial assets and financial liabilities are not carried at fair value but 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 of units to the Fund.

The Fund’s objectives for managing capital are:

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

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

c. To maintain sufficient fund size to make the operations of the Fund cost-efficient.

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

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