KENANGA AMANAH SAHAM WANITA€¦ · Kenanga Amanah Saham Wanita (formerly known as Libra Amanah...
Transcript of KENANGA AMANAH SAHAM WANITA€¦ · Kenanga Amanah Saham Wanita (formerly known as Libra Amanah...
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INTERIM REPORT
For the Financial Period from 1 January 2020 to 30 June 2020
KENANGA AMANAH SAHAM WANITA(formerly known as Libra Amanah Saham Wanita)
Kenanga Investors BerhadCompany No. 199501024358 (353563-P)
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KENANGA AMANAH SAHAM WANITA(formerly known as Libra Amanah Saham Wanita)
Contents Page
Corporate Directory ii Directory of Manager’s Offices iiiFund Information 1Manager’s Report 2 - 4Fund Performance 5 - 7Trustee’s Report 8Shariah Adviser’s Report 9Statement by the Manager 10Financial Statements 11 - 44
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ii Kenanga Amanah Saham Wanita Interim Report
CORPORATE DIRECTORYManager: Kenanga Investors Berhad Company No. 199501024358 (353563-P)Registered OfficeLevel 17, Kenanga Tower,237, Jalan Tun Razak,50400 Kuala Lumpur, Malaysia.Tel: 03-2172 2888Fax: 03-2172 2999
Business OfficeLevel 14, Kenanga Tower,237, Jalan Tun Razak,50400 Kuala Lumpur, Malaysia.Tel: 03-2172 3000Fax: 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 Abdullah (Independent
Director)Ismitz Matthew De AlwisNorazian Ahmad Tajuddin (Independent
Director)
Investment Committee Syed Zafilen Syed Alwee (Independent
Member)Peter John Rayner (Independent Member)Imran Devindran Abdullah (Independent
Member)Ismitz Matthew De AlwisNorazian Ahmad Tajuddin (Independent
Member)
Company Secretary: Norliza Abd Samad (MAICSA 7011089)Level 17, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia
Trustee: Maybank Trustees Berhad Company No. 196301000109 (5004-P)Registered and Business Address 8th Floor, Menara Maybank, 100, Jalan Tun Perak, 50050 Kuala Lumpur.Tel: 03-2074 8580 / 8952 Email: [email protected]
Shariah Adviser: BIMB Securities Sdn Bhd Company No. 199401004484 (290163-X)Level 32, Menara Multi-Purpose, Capital Square, No. 8, Jalan Munshi Abdullah, 50100 Kuala Lumpur.Tel: 03-2613 1600 Fax: 03-2613 1799
Auditor: Ernst & Young PLT Company No. 202006000003 (LLP0022760-LCA) & AF 0039Level 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. 198901002487 (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
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DIRECTORY OF MANAGER’S OFFICESRegional Branch Offices :
Kuala LumpurLevel 13, Kenanga Tower237, Jalan Tun Razak50400 Kuala Lumpur, MalaysiaTel: 03-2172 3123 Fax: 03-2172 3133
Johor BahruNo. 63 Jalan Molek 3/1,Taman Molek 81100 Johor Bahru, JohorTel: 07-288 1683Fax: 07-288 1693
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
KuantanGround Floor Shop,No. B8, Jalan Tun Ismail 125000 Kuantan, PahangTel : 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 Greenhill30450 Ipoh, PerakTel: 05-254 7573 / 7570 / 7575Fax: 05-254 7606
Miri 2nd Floor, Lot 1264, Centre Point Commercial Centre Jalan Melayu98000 Miri, Sarawak Tel: 085-416 866 Fax: 085-322 340
Kota KinabaluLevel 8, Wisma Great EasternNo. 68, Jalan Gaya, 88000 Kota Kinabalu, SabahTel: 088-203 063 Fax: 088-203 062
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
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1. FUND INFORMATION
1.1 Fund Name
Kenanga Amanah Saham Wanita (formerly known as Libra Amanah Saham Wanita) (KASW or the Fund)
1.2 Fund Category / Type
Equity (Islamic) / Growth and to a lesser extent income
1.3 Investment Objective
The primary objective of the Fund is to offer relatively good and safe capital growth* over the long-term period by investing principally in an actively-managed, diversified portfolio of Shariah-compliant equities and Shariah-compliant equity-related securities.
* Growth is targeted to be consistent and stable by not taking excessive risk. 1.4 Investment Strategy
The Fund adopts an active investment strategy for different market conditions to enhance risk-adjusted returns through riding market cycles, situational opportunities, value emergence and trend reversal plays.
1.5 Duration
The Fund was launched on 4 May 1998 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
FBM EMAS Shariah (FBMS) Index.
1.7 Distribution Policy
Annually (if any).
1.8 Breakdown of unit holdings of the Fund as at 30 June 2020
Size of holdingsNo. of
unit holdersNo. of
units held5,000 and below 44,513 40,387,6135,001 - 10,000 1,061 7,525,12210,001 - 50,000 667 12,768,25550,001 - 500,000 49 5,618,938500,001 and above 7 24,265,931Total 46,297 90,565,859
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2. MANAGER’S REPORT
2.1 Explanation on whether the Fund has achieved its investment objective
The Fund has achieved 268.8% return since inception thus achieving its stated objective of medium to long term capital appreciation.
2.2 Comparison between the Fund’s performance during financial period under review and performance of the benchmark
Performance Chart 5 Years (30/06/2015 - 30/06/2020)Kenanga Amanah Saham Wanita vs Benchmark *
* Benchmark: FBM Emas ShariahSource: Lipper
2.3 Investment strategies and policies employed during the financial period under review
The Fund is an Islamic equity growth fund that is actively managed to enhance capital growth over the long-term period and will continue to invest in Shariah-compliant securities that have good earnings growth, good management and good valuation.
2.4 The Fund’s asset allocation as at 30 June 2020 and comparison with the previous financial period
Asset 30 Jun 2020 30 Jun 2019Listed Shariah-compliant investment securities 89.2% 61.7%Short term Islamic deposits and cash 10.8% 38.3%
Reason for the differences in asset allocation
The Fund’s asset invested level was increased to 89.2% from 61.7% as the fund manager took a more aggressive positioning.
0.10% p.a. of the Fund’s NAV, subject to a minimum of
RM50,000 p.a.
0.12 3.85
2015
FTSE Bursa Malaysia Emas Shariah Index
RM 0.7730
-0.45 -6.11 2016 -3.66 -6.14
Fund Benchmark
1 month 1.35
5 years 7.93 -1.39
2017 18.34
Sales Charge
1 year 2.91
July 2020FUND PERFORMANCE (%)FUND OBJECTIVE
The primary objective of the Fund is to offer relatively good and
safe capital growth over the long term period by investing
principally in an actively-managed, diversified portfolio of
Shariah-compliant equities and Shariah-compliant equity-related
securities.
Fund Category/Type
Equity (Islamic) / Growth and to a lesser extent income
Launch Date
Fund
04 May 1998
FUND SIZE *
268.87 -Max 5.00%
0.25
RM 64.70 million RM 0.7144
ASSET ALLOCATION (% NAV) *
Annual Trustee Fee
HISTORICAL FUND PRICE *
2019 16.47
2.35
10.72Lee Sook Yee
3 years
8-Jan-18
Annual Management Fee
1.50% p.a.
6 months -0.78 0.76 2018
Since Inception Date
#Source: Lipper, 30 June 2020
Highest
Designated Fund Manager
TENAGA NASIONAL BHD 6.51%
Trustee
Maybank Trustees Berhad
Benchmark CUMULATIVE FUND PERFORMANCE (%) # CALENDAR YEAR FUND PERFORMANCE (%) #
Period
-17.03 -13.52
Benchmark Period
Since Launch
Redemption Charge
Nil
RM 0.3360 17-Mar-03Lowest
-0.77
NAV PER UNIT *
SECTOR ALLOCATION (% NAV) *
3 DIALOG GROUP BHD 6.38%
TOP EQUITY HOLDINGS (% NAV) *
* Source: Kenanga Investors Berhad, 30 June 2020
Based on the fund’s portfolio returns as at 10 June 2020, the Volatility Factor (VF) for this fund is 15.12 and is classified as “High”. (Source: Lipper). “High” includes funds with VF
that are above 12.765 and less than or equal to 15.215 (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 30 November 2019 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.
The fund fact sheet has not been reviewed by the SC. 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 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 is market risk, liquidity risk, stock specific risk, Shariah
status reclassification risk and warrants risk.
5 KOSSAN RUBBER INDUSTRIES BHD 4.87%
4 YINSON HOLDINGS BHD 5.66%
1 TOP GLOVE CORPORATION BHD 8.99%
DISTRIBUTION HISTORY*
Kenanga Amanah Saham Wanita(formerly known as Libra Amanah Saham Wanita)
Not Available
All fees and charges payable to the Manager and the Trustee are
subject to the goods and services tax /sales and services tax/other taxes
of similar nature as may be imposed by the government or other
authorities from time to time.
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Lipper Analytics10 Jun 2020
3-yearFund Volatility
High
80.00%
89.50%
87.70%
20.00%
10.50%
12.30%
April
May
June
Liquidity Equity
19.6%
15.2%
12.3%
12.0%
11.8%
10.3%
6.4%
4.6%
3.9%
3.9%
Healthcare
Industrial Products
Short Term Islamic Deposits and Cash
Energy
Technology
Utilities
Telecommunications
Consumer Products
Construction
Islamic Real Estate Investment Trusts
-25
-20
-15
-10
-5
0
5
10
15
20
Jun
15
Jun
15
Dec
15
Jun
16
Dec
16
Jun
17
Dec
17
Jun
18
Dec
18
Jun
19
Dec
19
Jun
20
% Cumulative Return, 30/06/2015 to 30/06/2020
Kenanga Amanah Saham Wanita : 7.93 FTSE Bursa Malaysia Emas Shariah Index : -1.39
Source: Lipper
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2.5 Fund performance analysis based on NAV per unit (adjusted for income distribution; if any) since last review period
Period under review
Kenanga Amanah Saham Wanita -0.78%FBM Emas Shariah Index 0.76%
Source: Lipper
For the financial year under review, the Fund registered a return of -0.78% against its benchmark return of 0.76%. The underperformance was mainly due stock selection.
2.6 Review of the market
Equity market review
The strong rally back in 2019 continued into early January 2020 on news that China was removed from a list of currency manipulating countries. Markets took a breather when the U.S confirmed an airstrike killed Iran’s top military commander, sending oil prices surging and escalating geopolitical concerns. Enthusiasm was capped towards the latter part of the month due to the 2019-nCoV viral outbreak in China. Sentiment quickly turned for the worse, as the virus spread exponentially in Europe and US, which prompted the World Health Organization to declare a global pandemic on 11th March. Additionally, the breakdown of OPEC and Russia’s talk to extend oil production cuts on the 6th March, and Saudi Arabia’s subsequent decision to instead increase output led to a downward spiral in oil price to as low as USD22.7/bbl, the lowest level since 2003.
To alleviate recession risk from the Covid 19 pandemic, central banks and government globally announced a slew of monetary and fiscal measures. Some of these include the USD1 trillion lending facility readied by the IMF, Fed rate cuts towards zero, open-ended asset purchase program by the Federal Reserve, EUR750bn Pandemic Emergency Purchase program by the European Central Bank and many others. These measures, together with recovery in China March PMI data, led to a rebound in equity markets. The period ended with the FBMS index closing close to pre-covid levels, underpinned by liquidity in the market and the glove manufacturers’ spectacular rise which single-handedly brought the index into bull market territory.
Equity market outlook
Despite signs of improving economic data, equities are expected to remain volatile as the market grapples with the risk of surging COVID-19 infections which could force governments to re-impose limits on business activities. Nevertheless, asset prices could remain buoyed as policymakers remain supportive with aggressive fiscal support and liquidity programs. Moving forward, global markets would increasingly shift its attention towards the upcoming U.S. presidential election when assessing risks.
2.7 Distributions
For the financial period under review, the Fund did not declare any distribution.
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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 year and up until the date of the manager’s report, not otherwise disclosed in the financial statements.
However, a Supplemental Master Prospectus was issued on 15 April 2020. Kindly refer to the Supplemental Master Prospectus for further details.
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 and soft commissions
It is the policy of the Manager to credit any rebates received into the account of the Fund. Any soft commissions received by investment manager on behalf of the Fund are in the form of research and advisory services that assist in the decision making process relating to the investment of the Fund which are of demonstrable benefit to unit holders of the Fund. Any dealing with the broker or dealer is executed on terms which are the most favourable for the Fund. For the financial period under review, the Manager has received soft commissions from the stockbrokers.
2.12 Cross trade
During the financial period under review, no cross-trade transactions were undertaken by investment manager for the Fund.
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3. FUND PERFORMANCE
3.1 Details of portfolio composition of the Fund for the financial period as at 30 June 2020 against the last three financial years as at 31 December are as follows:
a. Distribution among industry sectors and category of Shariah-compliant investments:
As at FY FY FY30.6.2020 2019 2018 2017
% % % %
Health Care 19.9 1.8 5.0 - Industrial Products and Services 15.5 9.7 13.9 9.1 Energy 12.3 18.9 7.7 - Technology 12.0 7.4 4.8 5.1 Utilities 10.3 9.7 9.5 - Telecommunications and Media 6.5 5.2 - - Consumer Products and
Services 4.7 10.3 3.9 4.6 Construction 4.0 4.7 3.7 7.4 Financial Services - 3.9 3.6 1.9 Property - - - 7.5 Plantation - - - 3.6 Trading and Services - - - 45.3 Islamic Real Estate Investment
Trusts 4.0 0.8 - - Short term Islamic deposits
and cash 10.8 27.6 47.9 15.5 100.0 100.0 100.0 100.0
Note: The above mentioned percentages are based on total Shariah-compliant investment market value plus cash.
b. Distribution among markets
The Fund invested in local listed Shariah-compliant investment securities and cash instruments only.
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3.2 Performance details of the Fund for the financial period ended 30 June 2020 against the last three financial years ended 31 December are as follows:
1.1.2020 to FY FY FY30.6.2020 2019 2018 2017
Net asset value (“NAV”) (RM Million) 64.70 67.50 60.19 64.24
Units in circulation (Million) 90.57 93.76 97.36 86.22NAV per unit (RM) 0.7144 0.7200 0.6182 0.7451Highest NAV per unit (RM) 0.7450 0.7308 0.7730 0.7451Lowest NAV per unit (RM) 0.5142 0.6137 0.6086 0.6296Total return (%) -0.78 16.47 -17.03 18.34- Capital growth (%) -0.78 16.47 -17.03 18.34- Income growth (%) - - - -Gross distribution per unit (sen) - - - -Net distribution per unit (sen) - - - -Management expense ratio
(“MER”) (%)1 1.67 1.76 2.56 2.44Portfolio turnover ratio (“PTR”)
(times)2 0.41 0.71 1.45 1.02
Note: TotalreturnistheactualreturnoftheFundfortherespectivefinancialperiod/years,computed based on NAV per unit and net of all fees.
MER is computed based on the total fees and recovered 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 Shariah-compliant investmentsoftheFunddividedbytheaveragefundsize,calculatedonadailybasis.
The above NAV and NAV per unit are not shown as ex-distribution as there were no distributiondeclaredbytheFundinthecurrentfinancialperiodunderreview.
1. MERisloweragainstpreviousfinancialyearmainlyduetolowerrecoveredexpensesincurredduringthefinancialperiodunderreview.
2. PTR is lower due to short period under review.
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3.3 Average total return of the Fund
1 Year30 Jun 19 - 31 Jun 20
3 Year30 Jun 17 - 31 Jun 20
5 Year30 Jun 15 - 31 Jun 20
Kenanga Amanah Saham Wanita 2.91% 1.01% 2.52%FBM Emas Shariah Index -0.77% -1.30% 0.37%
Source: Lipper
3.4 Annual total return of the Fund
Period under review
31 Dec 19 - 30 Jun 20
1 Year 31 Dec 18 - 31 Dec 19
1 Year 31 Dec 17 - 31 Dec 18
1 Year31 Dec 16 - 31 Dec 17
1 Year31 Dec 15 - 31 Dec 16
1 Year31 Dec 14 - 31 Dec 15
Kenanga Amanah Saham Wanita -0.78% 16.47% -17.03% 18.34% -3.66% 0.25%FBM Emas Shariah Index 0.76% 3.85% -13.52% 10.72% -6.14% 2.35%
Source: Lipper
Investors are reminded that past performance is not necessarily indicative of future performance. Unit prices and investment returns may fluctuate.
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4. TRUSTEE’S REPORT TO THE UNIT HOLDERS OF KENANGA AMANAH SAHAM WANITA
(formerly known as Libra Amanah Saham Wanita)
We have acted as Trustee for Kenanga Amanah Saham Wanita (“the Fund”) for the financial period ended 30 June 2020. To the best of our knowledge, Kenanga Investors Berhad (“the Manager”) has managed the Fund in the financial period under review in accordance with the following:
1. limitations imposed on the investment powers of the Manager under the deeds, securities laws and Guidelines on Unit Trust Funds;
2. valuation and pricing of the Fund are carried out in accordance with the deeds and any regulatory requirement; and
3. creation and cancellation of units are carried out in accordance with the deeds and any regulatory requirement.
For Maybank Trustees Berhad [Co. No.: 196301000109 (5004-P)]
JULIA BIN MUSTAFFA Chief Executive Officer Kuala Lumpur, Malaysia 27 August 2020
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5. SHARIAH ADVISER’S REPORT TO THE UNIT HOLDERS OF KENANGA AMANAH SAHAM WANITA (formerly known as Libra Amanah Saham Wanita)
We have acted as the Shariah Adviser of Kenanga Amanah Saham Wanita (formerly known as Libra Amanah Saham Wanita) (“the Fund”) managed by Kenanga Investors Berhad (“the Manager”) for the financial period from 1 January 2020 to 30 June 2020.
Our responsibility is to ensure that the procedures and processes employed by the Manager as well as the provisions of the Fund’s Deed dated 30 April 1998 are all in accordance with Shariah principles.
In our opinion, based on the periodic reports submitted to us, the Manager has managed and administered the Fund in accordance with Shariah principles and has complied with applicable guidelines, rulings and decisions issued by the Shariah Advisory Council (“SAC”) of the Securities Commission (“SC”) for the financial period from 1 January 2020 to 30 June 2020.
We confirm that the investment portfolio of the Fund comprises securities cited in the latest “List of Shariah-Compliant Securities” issued by the SAC of the SC and instruments which have been classified as Shariah-compliant by the SAC of Bank Negara Malaysia (“BNM”). As for securities and instruments which have not been classified by the SAC of the SC nor by the SAC of BNM, we have reviewed and determined the Shariah status of the said securities and instruments.
For and on behalf of the Shariah Adviser, BIMB Securities Sdn Bhd
IR. DR. MUHAMAD FUAD ABDULLAH Designated Shariah Person
Kuala Lumpur, Malaysia
27 August 2020
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6. 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 30 June 2020 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 January 2020 to 30 June 2020 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 Amanah Saham Wanita (formerly known as Libra Amanah Saham Wanita) as at 30 June 2020 and of its financial performance and cash flows for the financial period from 1 January 2020 to 30 June 2020 and comply with the requirements of the Deed.
For and on behalf of the Manager KENANGA INVESTORS BERHAD
ISMITZ MATTHEW DE ALWISExecutive Director/Chief Executive Officer
Kuala Lumpur, Malaysia
27 August 2020
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7. FINANCIAL STATEMENTS
7.1 STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL PERIOD FROM 1 JANUARY 2020 TO 30 JUNE 2020 (unaudited)
Note1.1.2020 to 30.6.2020
1.1.2019 to 30.6.2019
RM RM
INVESTMENT INCOME
Dividend income 802,650 474,178 Profit income 136,664 330,335 Net gain from Shariah-compliant investments:
- Financial assets at fair value through profit or loss (“FVTPL”) 4 (893,223) 7,264,282
46,091 8,068,795
EXPENSES
Manager’s fee 5 466,403 470,814 Trustee’s fee 6 31,094 31,388 Auditors’ remuneration - 9,600 Tax agent’s fee - 3,900 Administration expenses 45,959 85,605 Brokerage and other transaction costs 136,808 132,923
680,264 734,230
NET (LOSS)/INCOME BEFORE TAX (634,173) 7,334,565
Income tax 7 - -
NET (LOSS)/INCOME AFTER TAX, REPRESENTING TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE FINANCIAL PERIOD (634,173) 7,334,565
Net (loss)/income after tax is made up as follows:Realised (loss)/gain (3,694,413) 3,433,504 Unrealised gain 4 3,060,240 3,901,061
(634,173) 7,334,565
The accompanying notes form an integral part of the financial statements.
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7.2 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020 (unaudited)
Note 30.6.2020 30.6.2019RM RM
ASSETS
INVESTMENTS
Financial assets at FVTPL 4 56,729,700 41,001,161 Short term Islamic deposits 8 6,741,000 25,402,000
63,470,700 66,403,161
OTHER ASSETS
Amount due from financial institutions 9 1,243,375 40,220Other receivables 10 276,661 101,904 Cash at bank 102,619 91,847
1,622,655 233,971
TOTAL ASSETS 65,093,355 66,637,132
LIABILITIES
Amount due to Manager 96,466 84,772 Amount due to Trustee 25,390 5,394Amount due to licensed financial institutions 9 261,250 -Other payables 11 12,300 16,200TOTAL LIABILITIES 395,406 106,366
EQUITY
Unit holders’ contribution 7,542,693 11,198,772 Retained earning 57,155,256 55,331,994 NET ASSET VALUE (“NAV”)
ATTRIBUTABLE TO UNIT HOLDERS 12 64,697,949 66,530,766
TOTAL LIABILITIES AND EQUITY 65,093,355 66,637,132
NUMBER OF UNITS IN CIRCULATION 12(a) 90,565,859 95,846,892
NET ASSET VALUE PER UNIT (RM) 0.7144 0.6941
The accompanying notes form an integral part of the financial statements.
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7.3 STATEMENT OF CHANGES IN NET ASSET VALUE FOR THE FINANCIAL PERIOD FROM 1 JANUARY 2020 TO 30 JUNE 2020 (unaudited)
NoteUnit holders’ contribution
Retained earnings Total NAV
RM RM RM
1.1.2020 to 30.6.2020At beginning of the financial
period 9,713,893 57,789,429 67,503,322 Total comprehensive loss - (634,173) (634,173)Creation of units 12(a) 611,951 - 611,951 Cancellation of units 12(a) (2,209,437) - (2,209,437)Distribution equalisation 12(a) (573,714) - (573,714)At end of the financial period 7,542,693 57,155,256 64,697,949
1.1.2019 to 30.6.2019At beginning of the financial
period 12,191,817 47,997,429 60,189,246Total comprehensive income - 7,334,565 7,334,565 Creation of units 12(a) 15,380 - 15,380 Cancellation of units 12(a) (1,008,425) - (1,008,425)At end of the financial period 11,198,772 55,331,994 66,530,766
The accompanying notes form an integral part of the financial statements.
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7.4 STATEMENT OF CASH FLOWS FOR THE FINANCIAL PERIOD FROM 1 JANUARY 2020 TO 30 JUNE 2020 (unaudited)
Note1.1.2020 to 30.6.2020
1.1.2019 to 30.6.2019
RM RM
CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES
Proceeds from sale of financial assets at FVTPL 19,824,157 30,992,450
Dividends received 796,275 533,152 Profit from Islamic deposits received 44,457 326,793 Tax agent’s fee paid (600) -Trustee’s fee paid (11,600) (31,198) Payment for other fees and expenses (45,959) (228,728) Manager’s fee paid (472,392) (467,975) Purchase of financial assets at FVTPL (29,735,288) (34,009,968) Net cash used in operating and investing
activities (9,600,950) (2,885,474)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash received from units created 885,928 15,380 Cash paid on units cancelled (3,032,364) (1,006,668)Net cash used in financing activities (2,146,436) (991,288)
NET DECREASE IN CASH AND CASH EQUIVALENTS (11,747,386) (3,876,762)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE FINANCIAL PERIOD 18,591,005 29,370,609
CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL PERIOD 6,843,619 25,493,847
Cash and cash equivalents comprise:Cash at bank 102,619 25,402,000 Short term Islamic deposits 8 6,741,000 91,847
6,843,619 25,493,847
The accompanying notes form an integral part of the financial statements.
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7.5 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 1 JANUARY 2020 TO 30 JUNE 2020 (unaudited)
1. THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES
Kenanga Amanah Saham Wanita (formerly known as Libra Amanah Saham Wanita) (“the Fund”) was constituted pursuant to the executed Deed dated 30 April 1998 (collectively, together with deeds supplemental thereto, referred to as “the Deed”) between the Manager, Metrowangsa Unit Trusts Berhad and Maybank Trustees Berhad (“the Trustee”). In accordance with the provision of the Deed, Maybank Trustees Berhad has appointed Libra Invest Berhad as the Manager of the Fund with effect from 2 May 2003. The Fund commenced operations on 4 May 1998 and will continue to be in operation until terminated as provided under Part 12 of the Deed.
Pursuant to the executed Fifth Supplemental Deed dated 8 November 2019 between Kenanga Investors Berhad and Maybank Trustees Berhad, Kenanga Investors Berhad was appointed as the Manager of the Fund with effect from 30 November 2019 and the name of the Fund was changed from Libra Amanah Saham Wanita to Kenanga Amanah Saham Wanita.
Kenanga Investors Berhad is a wholly-owned subsidiary of Kenanga Investment Bank Berhad that is listed on the Main Market of Bursa Malaysia Securities 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 seeks relatively good and safe capital growth over the long-term period by investing principally in an actively-managed, diversified portfolio of Shariah-compliant equities and Shariah-compliant equity-related securities.
2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Fund is exposed to a variety of risks including market risk (which includes interest rate risk and price risk), credit risk, liquidity risk and Shariah status reclassification 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 a Shariah-compliant investment in the Fund.
The Fund has an approved set of investment guidelines and policies as well as internal controls which sets out its overall business strategies to manage these risks to optimise returns and preserve capital for the unit holders, consistent with the long term objectives 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 and price risk.
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2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
a. Market risk (contd.)
Market risk arises when the value of the Shariah-compliant 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 Shariah-compliant 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 Shariah-compliant investments and continuous monitoring of their performance and risk profiles.
i. Interest rate risk
Interest rate risk refers to how the changes in the interest rate environment would affect the valuation of Shariah-compliant instruments. In the event of a rising interest rate environment, the performance of Shariah-compliant instruments may decrease, and vice versa. Interest rate, such as the Overnight Policy Rate set by Bank Negara Malaysia, will have an impact on the investment decisions of the Fund regardless of whether it is an Islamic fund or otherwise. It does not in any way suggest that the Fund will invest in conventional financial instruments.
The Fund is not exposed to significant interest rate risk as its Islamic deposits are short term in nature and have fixed profit rates.
Interest rate risk exposure
The following table analyses the Fund’s interest rate risk exposure. The Fund’s financial assets and financial liabilities are disclosed at fair value and categorised by the earlier of contractual re-pricing or maturity dates.
Up to 1 year
Non-exposure
to interest rate
movement Total
Weighted average effective
rate of return*
RM RM RM %
30.6.2020AssetsFinancial assets at
FVTPL - 56,729,700 56,729,700 Short term Islamic
deposits 6,741,000 - 6,741,000 1.9Other assets - 1,622,655 1,622,655
6,741,000 58,352,355 65,093,355
* Computed based on Shariah-compliant assets with exposure to interest rate movement only
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2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
a. Market risk (contd.)
i. Interest rate risk (cont’d)
Interest rate risk exposure (contd.)
Up to 1 year
Non-exposure
to interest rate
movement Total
Weighted average effective
rate of return*
RM RM RM %
30.6.2020 (contd.)LiabilitiesOther liabilities - 383,106 383,106
Total interest rate sensitivity gap 6,741,000 57,969,249 64,710,249
30.6.2019AssetsFinancial assets at
FVTPL - 41,001,161 41,001,161 Short term Islamic
deposits 25,402,000 - 25,402,000 2.9Other assets - 233,971 233,971
25,402,000 41,235,132 66,637,132
LiabilitiesOther liabilities - 90,166 90,166
Total interest rate sensitivity gap 25,402,000 41,144,966 66,546,966
* Computed based on Shariah-compliant assets with exposure to interest rate movement only.
ii. Price risk
Price risk is the risk of unfavourable changes in the fair values of listed Shariah-compliant equity securities and listed Islamic collective investment scheme. The Fund invests in listed Shariah-compliant equity securities and listed Islamic collective investment which are exposed to price fluctuations. This may then affect the NAV of the Fund.
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Kenanga Amanah Saham Wanita Interim Report 18
2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
a. Market risk (contd.)
ii. Price risk (contd.)
Price risk sensitivity
The Manager’s best estimate of the effect on the income for the financial period due to a reasonably possible change in investments in listed Shariah-compliant equity securities and listed Islamic collective investment scheme with all other variables held constant is indicated in the table below:
Changes in price
Effects on income for the financial
periodIncrease/(Decrease) Gain/(Loss)
Basis points RM
30.6.2020Financial assets at FVTPL 5/(5) 28,365/(28,365)
30.6.2019Financial assets at FVTPL 5/(5) 20,501/(20,501)
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 sets out the Fund’s exposure and concentration to price risk based on its portfolio of Shariah-compliant financial instruments as at the reporting date.
Fair value Percentage of NAV30.6.2020 30.6.2019 30.6.2020 30.6.2019
RM RM % %
Financial assets at FVTPL 56,729,700 41,001,161 87.7 61.6
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2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
a. Market risk (contd.)
ii. Price risk (contd.)
Price risk concentration (contd.)
The Fund’s concentration of Shariah-compliant investment security price risk from the Fund’s of listed Shariah-compliant equity securities and listed Islamic collective investment scheme analysed by sector is as follows:
Fair value Percentage of NAV30.6.2020 30.6.2019 30.6.2020 30.6.2019
RM RM % %
Health Care 12,668,345 - 19.6 -Industrial Products
and Services 9,837,740 4,365,899 15.2 6.6 Energy 7,791,345 11,546,249 12.1 17.3 Technology 7,649,307 7,096,427 11.8 10.7 Utilities 6,562,760 5,018,384 10.2 7.5 Telecommunications
and Media 4,130,720 2,574,421 6.4 3.9Consumer Products
and Services 2,992,922 4,085,402 4.5 6.1 Construction 2,548,421 3,731,244 4.0 5.6 Financial Services - 2,583,135 - 3.9 Islamic Real Estate
Investment Trusts 2,548,140 - 3.9 -56,729,700 41,001,161 87.7 61.6
b. Credit risk
Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss to the Fund by failing to discharge an obligation. The Manager manages the credit risk by undertaking credit evaluation to minimise such risk.
i. Credit risk exposure
As at the reporting date, the Fund’s maximum exposure to credit risk is represented by the carrying amount of each class of financial asset recognised in the statement of financial position.
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Kenanga Amanah Saham Wanita Interim Report 20
2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
b. Credit risk (contd.)
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 Islamic deposits with financial institutions licensed under the Islamic Financial Services Act 2013. The following table analyses the licensed financial institutions by rating category:
Short term Islamic deposits
Percentage of total short term Islamic deposits Percentage of NAV30.6.2020 30.6.2019 30.6.2020 30.6.2019
% % % %
RatingP1 100.0 - 10.4 -WR - 100.0 - 38.1
100.0 100.0 10.4 38.1
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.
The Islamic liquid assets comprise cash, short-term Islamic deposits with licensed financial institutions and other Shariah-compliant instruments, which are capable of being converted into cash within 7 days.
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21 Kenanga Amanah Saham Wanita Interim Report
2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
c. Liquidity risk (contd.)
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 30.6.2020 30.6.2019
RM RM
AssetsFinancial assets at FVTPL 56,729,700 41,001,161 Short term Islamic deposits 6,741,000 25,402,000 Other assets 1,622,655 233,971
i. 65,093,355 66,637,132
LiabilitiesOther liabilities ii. 383,106 90,166
Equity iii. 64,697,949 66,530,766
Liquidity gap 12,300 16,200
i. Financial assets
Analysis of financial assets at FVTPL into maturity groupings is based on the expected date on which these assets will be realised. The Fund’s investments in of listed Shariah-compliant equity securities and listed Islamic collective investment scheme have been included in the “up to 1 year” category on the assumption that these are highly liquid Shariah-compliant investments 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.
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”.
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Kenanga Amanah Saham Wanita Interim Report 22
2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
d. Shariah Status Reclassification Risk
The risk that the currently held Shariah-compliant equity securities in the portfolio of Islamic funds may be reclassified as Shariah non-compliant in the periodic review of the securities by the Shariah Advisory Council of the Securities Commission Malaysia (“SACSC”) or the Shariah Adviser. If this occurs, the Manager will take the necessary steps to dispose of such securities.
Opportunity loss could occur due to the restriction on the Fund to retain the excess capital gains derived from the disposal of the reclassified Shariah non-compliant securities. In such an event, the Fund is required:
(i) to dispose such securities with immediate effect or within one (1) calendar month if the value of the securities exceeds or is equal to the investment cost on the effective date of Reclassification of the List of Shariah-compliant securities (“Reclassification“) by the SACSC or the Shariah Adviser. The Fund is allowed to keep dividends received and capital gains from the disposal of the securities up to the effective date of Reclassification. However, any dividends received and excess capital gains from the disposal of the Shariah non-compliant securities after the effective date of Reclassification should be channelled to baitulmal and/or approved charitable bodies;
(ii) to hold such securities if the value of the said securities is below the investment cost on the effective date of Reclassification until the total subsequent dividends received (if any) and the market price of the securities is equal to the cost of investment at which time disposal has to take place within one (1) calendar month, capital gains (if any) from the disposal of the securities should be channelled to baitulmal and/or approved charitable bodies; or
(iii) to dispose such securities at a price lower than the investment cost which will result in a decrease in the Fund’s value.
e. 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 has been 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 financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies below.
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23 Kenanga Amanah Saham Wanita Interim Report
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
a. Basis of accounting (contd.)
The accounting policies adopted are consistent with those of the previous financial year except for the adoption of the new and amended MFRS and Interpretation Committee’s (“IC”) Interpretation, which became effective for the Fund on 1 January 2020.
Description
Effective for financial period beginning on
or after
Amendments to MFRS contained in the document entitled “Annual Improvements to MFRS Standards 2015 - 2017 Cycle” 1 January 2019
Amendments to MFRS 3 and MFRS 11: Previously Held Interest in a Joint Operation contained in the document entitled “Annual Improvements to MFRS Standards 2015 - 2017 Cycle” 1 January 2019
Amendments to MFRS 112: Income Tax Consequences of PaymentsonFinancialInstrumentsClassifiedasEquitycontained in the document entitled “Annual Improvements to MFRS Standards 2015 - 2017 Cycle” 1 January 2019
Amendments to MFRS 123: Borrowing Costs Eligible for Capitalisation contained in the document entitled “Annual Improvements to MFRS Standards 2015 - 2017 Cycle” 1 January 2019
MFRS 16: Leases 1 January 2019Amendments to MFRS 9: Prepayment Features with
Negative Compensation 1 January 2019Amendments to MFRS 119:PlanAmendment,Curtailment
or Settlement 1 January 2019Amendments to MFRS 128: Long-term Interests in
Associates and Joint Ventures 1 January 2019IC Interpretation 23: Uncertainty over Income Tax
Treatments 1 January 2019
The adoption of the new and amended MFRS and IC Interpretation did not have any significant impact on the financial position or performance of the Fund.
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Kenanga Amanah Saham Wanita Interim Report 24
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
b. Standards, amendments and interpretations issued but not yet effective
As at the reporting date, the following Standards, Amendments to Standards and IC Interpretations that have been issued by MASB will be effective for the Fund in future financial periods. The Fund intends to adopt the relevant standards and interpretations when they become effective.
Description
Effective for financial period beginning on
or after
Amendments to MFRS 2: Share-Based Payment 1 January 2020Amendments to MFRS 3: Business Combinations 1 January 2020Amendments to MFRS 3:DefinitionofaBusiness 1 January 2020Amendments to MFRS 6: Exploration for and Evaluation of
Mineral Resources 1 January 2020Amendments to MFRS 14: Regulatory Deferral Accounts 1 January 2020Amendments to MFRS 101: Presentation of Financial
Statements 1 January 2020Amendments to MFRS 108: AccountingPolicies,Changes
in Accounting Estimates and Errors 1 January 2020Amendments to MFRS 101 & MFRS 108: Definitionof
Material 1 January 2020Amendments to MFRS 134: Interim Financial Reporting 1 January 2020Amendment to MFRS 137: Provisions,ContingentLiabilities
and Contingent Assets 1 January 2020Amendment to MFRS 138: Intangible Assets 1 January 2020Amendments to IC Interpretation 12: Service Concession
Arrangements 1 January 2020Amendments to IC Interpretation 19: Extinguishing Financial
Liabilities with Equity Instruments 1 January 2020Amendment to IC Interpretation 20: Stripping Costs in the
Production Phase of a Surface Mine 1 January 2020Amendments to IC Interpretation 22: Foreign Currency
Transactions and Advance Consideration 1 January 2020Amendments to IC Interpretation 132: Intangible Assets -
Web Site Costs 1 January 2020Amendments to MFRS 9 FinancialInstruments,MFRS 139
Financial Instruments: Recognition and Measurement and MFRS 7 Financial Instruments: Disclosures: Interest Rate Benchmark Reform 1 January 2020
Amendments to MFRS 16: Covid-19-Related Rent Concessions 1 June 2020
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25 Kenanga Amanah Saham Wanita Interim Report
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
b. Standards, amendments and interpretations issued but not yet effective (contd.)
Description
Effective for financial period beginning on
or after
Amendments to MFRS contained in the document entitled “Annual Improvements to MFRS Standards 2018 - 2020 Cycle” 1 January 2022
Amendments to MFRS 1: Subsidiary as a First-time Adopter contained in the document entitled “Annual Improvements to MFRS Standards 2018 - 2020 Cycle” 1 January 2022
Amendments to MFRS 9: Fees in the ‘10 per cent’ Test for Derecognition of Financial Liabilities contained in the document entitled “Annual Improvements to MFRS Standards 2018 - 2020 Cycle” 1 January 2022
Amendments to Illustrative Examples accompanying MFRS 16: Lease Incentives contained in the document entitled “Annual Improvements to MFRS Standards 2018 - 2020 Cycle” 1 January 2022
Amendments to MFRS 141: Taxation in Fair Value Measurements contained in the document entitled “Annual Improvements to MFRS Standards 2018 - 2020 Cycle” 1 January 2022
Amendments to MFRS 3: Reference to the Conceptual Framework 1 January 2022
Amendments to MFRS 101: Classication of Liabilities as Current or Non-current 1 January 2022
Amendments to MFRS 116: Property,PlantandEquipment– Proceeds before Intended Use 1 January 2022
Amendments to MFRS 137: OnerousContracts−CostofFulfillingaContract 1 January 2022
MFRS 17: Insurance Contracts 1 January 2023Amendments 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.
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Kenanga Amanah Saham Wanita Interim Report 26
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
c. Financial instruments
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.
i. Measurement categories of financial assets and liabilities
The Fund classifies all of its financial assets based on the business model for managing the assets and the asset’s contractual terms, measured at either:
• Amortised cost;• Fair value through other comprehensive income; and• Fair value through profit or loss.
The Fund may designate financial instruments at FVTPL, if so doing eliminates or significantly reduces measurement or recognition inconsistencies.
The Fund’s other financial assets include cash at bank, short term Islamic deposits, trade receivables and other receivables.
Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability. Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities.
The Fund’s other financial liabilities include trade payables and other payables.
Other financial liabilities are recognised initially at fair value plus directly attributable transaction costs and subsequently measured at amortised cost using the effective yield rate (“EYR”). Gains or losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process.
ii. Initial recognition and subsequent measurement
The classification of financial assets at initial recognition depends on their contractual terms and the business model for managing the instruments, as described in Note 3(c)(iii). Financial assets are initially measured at their fair value, except in the case of financial assets recorded at FVTPL, transaction costs are added to, or subtracted from, this amount. Trade receivables are measured at the transaction price. When the fair value of financial instruments at initial recognition differs from the transaction price, the Fund accounts for the Day 1 profit or loss, as described below.
After initial measurement, debt instruments are measured at amortised cost, using the EYR, less allowance for impairment. Amortised cost is calculated by taking into account any discount or premium on acquisition and fee or costs that are an integral part of the EYR. Expected credit losses (“ECLs”) are recognised in the statement of comprehensive income when the investments are impaired. For the purpose of the investments made by the Fund, debt instruments refer to sukuk.
Financial assets at FVTPL are recorded in the statement of financial position at fair value. Changes in fair value are recorded in profit or loss.
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27 Kenanga Amanah Saham Wanita Interim Report
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
c. Financial instruments (contd.)
iii. Due from banks, short term Islamic deposits, trade and other receivables at amortised cost
The Fund only measures the cash at bank, short term Islamic deposits, trade receivables and other receivables at amortised cost if both of the following conditions are met:
• The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and
• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and profit (“SPPP”) on the principal amount outstanding.
The details of these conditions are outlined below.
Business model assessment
The Fund determines its business model at the level that best reflects how it manages groups of financial assets to achieve its business objective.
The Fund’s business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated portfolios and is based on observable factors such as:
• How the performance of the business model and the financial assets held within that business model are evaluated and reported to the entity’s key management personnel;
• The risks that affect the performance of the business model (and the financial assets held within that business model) and, in particular, the way those risks are managed;
• How managers of the business are compensated (for example, whether the compensation is based on the fair value of the assets managed or on the contractual cash flows collected); and
• The expected frequency, value and timing of sales are also important aspects of the Fund’s assessment.
The business model assessment is based on reasonably expected scenarios without taking ‘worst case’ or ‘stress case’ scenarios into account. If cash flows after initial recognition are realised in a way that is different from the Fund’s original expectations, the Fund does not change the classification of the remaining financial assets held in that business model but incorporates such information when assessing newly originated or newly purchased financial assets going forward, unless it has been determined that there has been a change in the original business model.
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Kenanga Amanah Saham Wanita Interim Report 28
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
c. Financial instruments (contd.)
iii. Due from banks, short term Islamic deposits, trade and other receivables at amortised cost (contd.)
The SPPP test
As a second step of its classification process, the Fund assesses the contractual terms of financial assets to identify whether they meet the SPPP test.
‘Principal’ for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change over the life of the financial asset (for example, if there are payments of principal or amortisation/accretion of the premium/discount).
The most significant elements of profit within a credit facility arrangement are typically the consideration for the time value of money and credit risk. To make the SPPP assessment, the Fund applies judgment and considers relevant factors such as the currency in which the financial asset is denominated, and the period for which the profit rate is set.
In contrast, contractual terms that introduce a more than de minimis exposure to risks or volatility in the contractual cash flows that are unrelated to a basic credit facility arrangement do not give rise to contractual cash flows that are solely payments of principal and profit on the amount outstanding. In such cases, the financial asset is required to be measured at FVTPL.
iv. Financial investments
Financial assets in this category are those that are managed in a fair value business model, or that have been designated by management upon initial recognition, or are mandatorily required to be measured at fair value under MFRS 9. This category includes debt instruments whose cash flow characteristics fail the SPPP criterion or are not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash flows and sell.
d. Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when the rights to receive cash flows from the financial asset have expired. The Fund also derecognises the financial asset if it has both transferred the financial asset and the transfer qualifies for derecognition.
The Fund has transferred the financial asset if, and only if, either:
• The Fund has transferred its contractual rights to receive cash flows from the financial asset; or
• It retains the rights to the cash flows but has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass–through’ arrangement.
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29 Kenanga Amanah Saham Wanita Interim Report
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
d. Derecognition of financial assets (contd.)
Pass-through arrangements are transactions whereby the Fund retains the contractual rights to receive the cash flows of a financial asset (the ‘original asset’), but assumes a contractual obligation to pay those cash flows to one or more entities (the ‘eventual recipients’), when all of the following three conditions are met:
• The Fund has no obligation to pay amounts to the eventual recipients unless it has collected equivalent amounts from the original asset, excluding short term advances with the right to full recovery of the amount financed plus accrued profit at market rates;
• The Fund cannot sell or pledge the original asset other than as security to the eventual recipients; and
• The Fund has to remit any cash flows it collects on behalf of the eventual recipients without material delay. In addition, the Fund is not entitled to reinvest such cash flows, except for investments in cash or cash equivalents including profit earned, during the period between the collection date and the date of required remittance to the eventual recipients.
A transfer only qualifies for derecognition if either:
• The Fund has transferred substantially all the risks and rewards of the asset; or• The Fund has neither transferred nor retained substantially all the risks and
rewards of the asset but has transferred control of the asset.
The Fund considers control to be transferred if and only if, the transferee has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without imposing additional restrictions on the transfer.
When the Fund has neither transferred nor retained substantially all the risks and rewards and has retained control of the asset, the asset continues to be recognised only to the extent of the Fund’s continuing involvement, in which case, the Fund also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Fund has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration the Fund could be required to pay.
If continuing involvement takes the form of a written or purchased option (or both) on the transferred asset, the continuing involvement is measured at the value the Fund would be required to pay upon repurchase. In the case of a written put option on an asset that is measured at fair value, the extent of the entity’s continuing involvement is limited to the lower of the fair value of the transferred asset and the option exercise price.
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Kenanga Amanah Saham Wanita Interim Report 30
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
e. Impairment of financial assets
i. Overview of the expected credit loss (“ECL”) principles
The Fund measures its receivables impairment using the forward-looking ECL approach in accordance with MFRS 9 requirements.
ii. Write-offs
Financial assets are written off either partially or in their entirety only when the Fund has stopped pursuing the recovery. If the amount to be written off is greater than the accumulated loss allowance, the difference is first treated as an addition to the allowance that is then applied against the gross carrying amount. Any subsequent recoveries are credited to credit loss expense.
f. 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.
Profit income is recognised using effective yield method.
Dividend income is recognised on declared basis, when the right to receive the dividend is established.
The realised gain or loss on sale of Shariah-compliant investments is measured as the difference between the net disposal proceeds and the carrying amount of the Shariah-compliant investment.
g. Cash and cash equivalents
For the purpose of the statement of cash flows, cash and cash equivalents include cash at bank and short term Islamic deposits with licensed financial institutions with maturities of three months or less, which have an insignificant risk of changes in value.
h. 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.
i. Unrealised reserves
Unrealised reserves represent the net gain or loss arising from carrying Shariah-compliant investments at their fair values at reporting date. This reserve is not distributable.
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31 Kenanga Amanah Saham Wanita Interim Report
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
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. 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.
l. Distributions
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.
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Kenanga Amanah Saham Wanita Interim Report 32
4. FINANCIAL ASSETS AT FVTPL
30.6.2020 30.6.2019 RM RM
Financial assets held for trading, at FVTPL:Listed Shariah-compliant equity securities 54,181,560 41,001,161 Listed Islamic collective investment scheme 2,548,140 -
56,729,700 41,001,161
Net (loss)/gain on financial assets at FVTPL comprised:Realised (loss)/gain on disposals (3,953,463) 3,363,221Unrealised changes in fair values 3,060,240 3,901,061
(893,223) 7,264,282
Details of financial assets at FVTPL as at 30 June 2020:
Quantity Aggregate
cost Fair value Percentage
of NAVRM RM %
Listed Shariah-compliant equity securities
Health CareDuopharma Biotech
Berhad 98,200 157,260 159,084 0.2 Hartalega Holdings
Berhad 104,400 993,708 1,357,200 2.1 Kossan Rubber Industries
Berhad 370,100 1,888,331 3,149,551 4.9 Supermax Corporation
Berhad 273,600 2,147,994 2,188,800 3.4 Top Glove Corporation
Berhad 361,100 5,003,879 5,813,710 9.0 10,191,172 12,668,345 19.6
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33 Kenanga Amanah Saham Wanita Interim Report
4. FINANCIAL ASSETS AT FVTPL (CONTD.)
Details of financial assets at FVTPL as at 30 June 2020: (contd.)
Quantity Aggregate
cost Fair value Percentage
of NAVRM RM %
Listed Shariah-compliant equity securities (contd.)
Industrial Products and Services
Dufu Technology Corp. Berhad 505,100 1,892,305 2,449,735 3.8
FoundPac Group Berhad 2,716,300 2,105,689 2,118,714 3.3 Kelington Group Berhad 649,800 818,748 656,298 1.0 SKP Resources Bhd 738,400 1,079,690 996,840 1.5 Sunway Berhad 1,165,436 1,945,949 1,596,647 2.5 Uchi Technologies Berhad 785,800 2,220,329 2,019,506 3.1
10,062,710 9,837,740 15.2
EnergyDialog Group Berhad 1,143,500 3,781,001 4,128,035 6.4 Yinson Holdings Berhad 620,900 2,497,911 3,663,310 5.7
6,278,912 7,791,345 12.1
TechnologyFrontken Corporation
Berhad 772,000 1,616,518 1,953,160 3.0 Greatech Technology
Berhad 523,100 964,867 2,024,397 3.1 Mi Technovation Berhad 1,076,050 1,505,016 2,668,604 4.1 Revenue Group Berhad 519,000 683,855 612,420 1.0 VSTECS Berhad 265,800 392,979 390,726 0.6
5,163,235 7,649,307 11.8
UtilitiesMega First Corporation
Berhad 374,100 1,706,745 2,349,348 3.7 Tenaga Nasional Berhad 362,600 5,222,335 4,213,412 6.5
6,929,080 6,562,760 10.2
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Kenanga Amanah Saham Wanita Interim Report 34
4. FINANCIAL ASSETS AT FVTPL (CONTD.)
Details of financial assets at FVTPL as at 30 June 2020: (contd.)
Quantity Aggregate
cost Fair value Percentage
of NAVRM RM %
Listed Shariah-compliant equity securities (contd.)
Telecommunications and Media
Axiata Group Berhad 844,559 3,459,954 2,998,185 4.6 Telekom Malaysia Berhad 272,900 1,165,283 1,132,535 1.8
4,625,237 4,130,720 6.4
Consumer Products and Services
Power Root Berhad 543,500 1,230,995 1,222,875 1.9 Sime Darby Berhad 376,000 825,261 808,400 1.1 Tek Seng Holdings Berhad 1,687,100 910,287 961,647 1.5
2,966,543 2,992,922 4.5
ConstructionsEconpile Holdings Berhad 1,602,100 988,493 977,281 1.5 Gabungan AQRS Berhad 287,200 339,708 244,120 0.4 Gamuda Berhad 364,566 1,365,939 1,327,020 2.1
2,694,140 2,548,421 4.0
Total listed Shariah-compliant equity securities 48,911,029 54,181,560 83.8
Listed Islamic collective investment scheme
Islamic Real Estate Investment Trust
Axis Real Estate Investment Trust 1,236,961 2,232,668 2,548,140 3.9
Total listed Islamic collective investment scheme 2,232,668 2,548,140 3.9
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35 Kenanga Amanah Saham Wanita Interim Report
4. FINANCIAL ASSETS AT FVTPL (CONTD.)
Details of financial assets at FVTPL as at 30 June 2020: (contd.)
Quantity Aggregate
cost Fair value Percentage
of NAVRM RM %
Total financial assets at FVTPL 51,143,697 56,729,700 87.7
Unrealised gain on financial assets at FVTPL 5,586,003
5. MANAGER’S FEE
The Manager’s fee is calculated on a daily basis at a rate not exceeding 2.0% 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 1.50% per annum of the NAV of the Fund (financial period from 1 January 2019 to 30 June 2019: 1.50% per annum).
6. TRUSTEE’S FEE
The Trustee’s fee is calculated on a daily basis at a rate not exceeding 0.3% per annum of the NAV of the Fund and subject to a minimum fee of RM50,000 per annum as provided under Division 13.2 of the Deed.
The Trustee’s fee is currently calculated at 0.10% per annum of the NAV of the Fund (financial period from 1 January 2019 to 30 June 2019: 0.10% 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.
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Kenanga Amanah Saham Wanita Interim Report 36
7. INCOME TAX (CONTD.)
A reconciliation of income tax expense applicable to net (loss)/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:
1.1.2020 to 30.6.2020
1.1.2019 to 30.6.2019
RM RM
Net (loss)/income before tax (634,173) 7,334,565
Tax at Malaysian statutory tax rate of 24% (financial period from 1 January 2019 to 30 June 2019: 24%) (152,202) 1,760,296
Tax effect of:Income not subject to tax (959,893) (1,000,256)Loss not deductible for tax purposes 948,831 (936,255)Expenses not deductible for tax purposes 40,538 12,474Restriction on tax deductible expenses for unit trust fund 122,726 163,741
Income tax for the financial period - -
8. SHORT TERM ISLAMIC DEPOSITS
Short term Islamic deposits are held with licensed financial institutions in Malaysia at the prevailing profit rates.
9. AMOUNT DUE FROM/TO LICENSED FINANCIAL INSTITUTIONS
Amount due to licensed financial institutions relates to the amount to be paid to licensed financial institutions arising from the purchase of investments.
10. OTHER RECEIVABLES
30.6.2020 30.6.2019RM RM
Dividends receivable 182,959 95,797 Profit receivable from short term Islamic deposits 93,702 6,107
276,661 101,904
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37 Kenanga Amanah Saham Wanita Interim Report
11. OTHER PAYABLES
30.6.2020 30.6.2019RM RM
Accrual for auditors’ remuneration 9,600 9,600 Accrual for tax agent’s fees 2,700 6,600
12,300 16,200
12. NET ASSET VALUE ATTRIBUTABLE TO UNIT HOLDERS
NAV attributable to unit holders is represented by:
Note 30.6.2020 30.6.2019RM RM
Unit holders’ contribution (a) 7,542,693 11,198,772
Retained earnings:Realised reserves 51,569,253 53,073,142Unrealised reserves 5,586,003 2,258,852
57,155,256 55,331,994
64,697,949 66,530,766
(a) Unit holders’ contribution
1.1.2020 to 30.6.2020 1.1.2019 to 30.6.2019No. of units RM No. of units RM
At beginning of the financial period 93,760,818 9,713,893 97,359,465 12,191,817
Add: Creation of units 1,223,953 611,951 23,443 15,380
Less: Cancellation of units (4,418,912) (2,209,437) (1,536,016) (1,008,425)
Distribution equalisation - (573,714) - -
At end of the financial period 90,565,859 7,542,693 95,846,892 11,198,772
The number of units legally or beneficially held by the Manager, Kenanga Investors Berhad, and parties related to the Manager as at 30 June 2020 were nil (30 June 2019: nil).
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Kenanga Amanah Saham Wanita Interim Report 38
13. SHARIAH INFORMATION OF THE FUND
The Shariah Adviser confirmed that the investment portfolio of the Fund is Shariah-compliant, which comprises the following:
a. Investment in equity securities listed on Bursa Malaysia Securities Berhad which have been classified as Shariah-compliant by the SACSC;
b. Investment in collective investment schemes listed on Bursa Malaysia Securities Berhad which was verified as Shariah-compliant by the Shariah Adviser; and
c. Liquid assets in the local market, which have been placed in Shariah-compliant investments and/or instruments.
14. PORTFOLIO TURNOVER RATIO (“PTR”)
PTR for the financial period from 1 January 2020 to 30 June 2020 is 0.41 times (financial period from 1 January 2019 to 30 June 2019: 0.51 times).
PTR is the ratio of average sum of acquisitions and disposals of Shariah-compliant investments of the Fund for the financial period to the average NAV of the Fund, calculated on a daily basis.
15. MANAGEMENT EXPENSE RATIO (“MER”)
MER for the financial period from 1 January 2020 to 30 June 2020 is 1.67% per annum (financial period from 1 January 2019 to 30 June 2019: 1.16% per annum).
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.
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39 Kenanga Amanah Saham Wanita Interim Report
16. TRANSACTIONS WITH LICENSED FINANCIAL INSTITUTIONS
Transaction value
Percentage of total
Brokerage, stamp duty
and clearing fee
Percentage of total
RM % RM %
Maybank Investment Bank Berhad 9,693,545 19.0 26,611 19.5
RHB Investment Bank Berhad 8,691,445 17.0 21,680 15.8
Kenanga Investment Bank Berhad* 8,167,766 16.0 20,934 15.3
CIMB Investment Bank Berhad 5,345,683 10.5 14,550 10.6
Hong Leong Investment Bank Berhad 4,873,879 9.6 13,229 9.7
Affin Hwang Investment Bank Berhad 4,606,759 9.0 12,732 9.3
Public Investment Bank Berhad 3,865,560 7.6 10,899 8.0
KAF-Seagroatt & Campbell Securities Sdn Bhd 3,512,702 6.9 9,618 7.0
UOB Kay Hian Securities (M) Sdn Bhd 1,438,928 2.8 3,902 2.9
MIDF Amanah Investment Bank Berhad 541,765 1.1 1,710 1.2
Others 274,489 0.5 943 0.7 51,012,521 100.0 136,808 100.0
* Kenanga Investment Bank Berhad is a related party of Kenanga Investors Berhad.
The above transaction values are in respect of listed Shariah-compliant equity securities and listed Islamic collective investment schemes.
The directors of the Manager are of the opinion that the transactions with the related party have been entered into in the normal course of business and have been established on terms and conditions that are not materially different from that obtainable in transactions with unrelated parties. The Manager is of the opinion that the above dealings have been transacted on an arm’s length basis.
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Kenanga Amanah Saham Wanita Interim Report 40
17. SEGMENTAL REPORTING
a. Business segments
In accordance with the objective of the Fund, the Fund can invest minimum 70% in listed Shariah-compliant investment securities. The following table provides an analysis of the Fund’s revenue, results, assets and liabilities by business segments:
Listed Shariah-
compliant investment
securities
Other Shariah-
compliant investments Total
RM RM RM
1.1.2020 to 30.6.2020RevenueSegment (loss)/income (90,573) 136,664 Segment expenses (136,808) -Net segment (loss)/income
representing segment results (227,381) 136,664 (90,717)Unallocated expenditure (543,456)Loss before tax (634,173)Income tax -Net loss after tax (634,173)
30.6.2020AssetsFinancial assets at FVTPL 56,729,700 -Short term Islamic deposits - 6,741,000 Other segment assets 1,426,334 93,702 Total segment assets 58,156,034 6,834,702 64,990,736 Unallocated assets 102,619
65,093,355
LiabilitiesSegment liabilities 261,250 - 261,250Unallocated liabilities 134,156
395,406
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41 Kenanga Amanah Saham Wanita Interim Report
17. SEGMENTAL REPORTING (CONTD.)
a. Business segments (contd.)
Listed Shariah-
compliant investment
securities
Other Shariah-
compliant investments Total
RM RM RM
1.1.2019 to 30.6.2019RevenueSegment income 7,594,617 474,178Segment expenses (132,923) -Net segment income representing
segment results 7,461,694 474,178 7,935,872Unallocated expenditure (601,307)Income before tax 7,334,565 Income tax -Net income after tax 7,334,565
30.6.2019AssetsFinancial assets at FVTPL 41,001,161 -Short term Islamic deposits - 25,402,000Other segment assets 136,017 6,107Total segment assets 41,137,178 25,408,107 66,545,285Unallocated assets 91,847
66,637,132
LiabilitiesUnallocated liabilities 106,366
b. Geographical segments
As all of the Fund’s investments are located in Malaysia, disclosure by geographical segments is not relevant.
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Kenanga Amanah Saham Wanita Interim Report 42
18. 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.
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
Financial assets at
amortised cost
Other financial liabilities Total
RM RM RM RM
30.6.2020AssetsListed Shariah-compliant
equity securities 54,181,560 - - 54,181,560 Listed Islamic collective
investment scheme 2,548,140 - - 2,548,140 Short term Islamic
deposits - 6,741,000 - 6,741,000 Amount due from financial
institutions - 1,243,375 - 1,243,375 Other receivables - 276,661 - 276,661 Cash at bank - 102,619 - 102,619
56,729,700 8,363,655 - 65,093,355
LiabilitiesAmount due to Manager - - 96,466 96,466 Amount due to Trustee - - 25,390 25,390 Amount due to financial
institutions - - 261,250 261,250 - - 383,106 383,106
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43 Kenanga Amanah Saham Wanita Interim Report
18. FINANCIAL INSTRUMENTS (CONTD.)
a. Classification of financial instruments (contd.)
Financial assets at
FVTPL
Financial assets at
amortised cost
Other financial liabilities Total
RM RM RM RM
30.6.2019AssetsListed Shariah-compliant
equity securities 41,001,161 - - 41,001,161Short term Islamic
deposits - 25,402,000 - 25,402,000 Amount due from financial
institutions 40,220 40,220Other receivables - 101,904 - 101,904 Cash at bank - 91,847 - 91,847
41,001,161 25,635,971 - 66,637,132
LiabilitiesAmount due to Manager - - 84,772 84,772 Amount due to Trustee - - 5,394 5,394
- - 90,166 90,166
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 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: 30.6.2020Listed Shariah-compliant
equity securities 54,181,560 - - 54,181,560 Listed Islamic collective
investment scheme 2,548,140 - - 2,548,140
30.6.2019Listed Shariah-compliant
equity securities 41,001,161 - - 41,001,161
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Kenanga Amanah Saham Wanita Interim Report 44
18. FINANCIAL INSTRUMENTS (CONTD.)
b. Financial instruments that are carried at fair value (contd.)
Level 1: Listed prices in active market Level 2: Model with all significant inputs which are observable market data Level 3: Model with inputs not based on observable market data
The fair values of listed Shariah-compliant equity securities and listed Islamic collective investment scheme are determined by reference to Bursa Malaysia Securities Berhad’s last prices at 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.
19. CAPITAL MANAGEMENT
The capital of the Fund can vary depending on the demand for creation and cancellation of units to the Fund.
The Fund’s objectives for managing capital are:
a. To invest in Shariah-compliant 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.
20. SIGNIFICANT EVENT
The COVID-19 pandemic has significantly disrupted many business operations around the world. For the Fund, the impact on business operations has not been a direct consequence of the COVID-19 outbreak, but a result of the measures taken by the Government of Malaysia to contain it. As the outbreak continues to evolve, it is challenging to predict the full extent and duration of its impact on business and the economy.
Whilst the Fund is not able to fully conclude on the financial impact of the COVID-19 outbreak at the date of this report, it is anticipated based on initial assessments performed, that there have not been any circumstances which would require adjustments to be made to the carrying values of the assets and liabilities of the Fund as at 30 June 2020. The Fund holds sufficient capital and will continue to prudently manage risks while implementing cost reduction measures in order to ensure that it remains resilient through this period of uncertainty.
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Investor Services CenterToll Free Line: 1 800 88 3737Fax: +603 2172 3133Email: [email protected]
Head Office, Kuala LumpurLevel 14, Kenanga Tower, 237 Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia.Tel: 03-2172 3000 Fax: 03-2172 3080