AmGlobal Sukuk. Semi-Annual Report for. 31 January 2018

Transcription

1 AmGlobal Sukuk Semi-Annual Report for 31 January 2018

2 TRUST DIRECTORY Manager AmFunds Management Berhad 9 th & 10 th Floor, Bangunan AmBank Group 55 Jalan Raja Chulan Kuala Lumpur Board of Directors Raja Maimunah Raja Abdul Aziz Dato Mustafa Mohd Nor Tai Terk Lin Goh Wee Peng Sum Leng Kuang Investment Committee Sum Leng Kuang Tai Terk Lin Dato Mustafa Mohd Nor Zainal Abidin Mohd Kassim Goh Wee Peng Investment Manager AmIslamic Funds Management Sdn Bhd Trustee Deutshce Trustees Malaysia Berhad Shariah Adviser Amanie Advisors Sdn Bhd Auditors and Reporting Accountants Ernst & Young Taxation Adviser Deloitte Tax Services Sdn Bhd AmGlobal Sukuk

3 CONTENTS 1 Manager s Report 6 Condensed Statement of Financial Position 7 Condensed Statement of Comprehensive Income 8 Condensed Statement of Changes in Equity 9 Condensed Statement of Cash Flows 10 Notes to the Condensed Financial Statements 17 Statement by the Manager 18 Trustee s Report 19 Report of Shariah Adviser to the Unitholder 20 Directory AmGlobal Sukuk

4 MANAGER S REPORT Dear Unitholder, We are pleased to present you the Manager s report and the unaudited accounts of AmGlobal Sukuk ( Fund ) for the financial period from 1 August 2017 to 31 January Salient Information of the Fund Name Category/ Type Objective Duration Performance Benchmark AmGlobal Sukuk ( Fund ) Sukuk / Growth The Fund aims to provide capital appreciation by investing primarily in Sukuk both locally and globally. The Fund was established on 3 August 2012 and shall exist for as long as it appears to the Manager and the Trustee that it is in the interests of the unitholders for it to continue. In some circumstances, the unitholders can resolve at a meeting to terminate the Fund. 50% Dow Jones Sukuk Index + 50% BPAM Corporates Sukuk Index* (obtainable from Note: Dow Jones Sukuk Index is a USD-based benchmark and BPAM is a RMbased index. Such combination, i.e. 50/50 of benchmarks, is to appropriately reflect the fund s strategy of investing in (not limited to) both local currency denominated (RM) Sukuk and foreign currency denominated (USD) Sukuk. The composite benchmark index will be calculated via weighted (50/50) sum of total return (in USD) from the two indexes, i.e. the RM-based index total returns be converted to USD before adding the returns with the USD-based index to form the composite index. Income Distribution Policy Breakdown of Unit Holdings by Size Income distribution (if any) is incidental and will be reinvested. For the financial period under review, the size of the Fund stood at 5,000 units. Size of holding As at 31 January 2018 As at 31 July 2017 No of units held Number of unitholder No of units held Number of unitholder 5,000 and below 5, , ,001-10, ,001-50, , , ,001 and above

5 Fund Performance Data Portfolio Composition Details of portfolio composition of the Fund for the financial period as at 31 January 2018 and three financial years as at 31 July are as follows: As at % FY 2017 % FY 2016 % FY 2015 % Cash and others Total Note: The abovementioned percentages are calculated based on total net asset value. Performance Details Performance details of the Fund for the financial period ended 31 January 2018 and three financial years ended 31 July are as follows: Half year ended FY 2017 FY 2016 FY 2015 Net asset value (USD)* 1,000 1,000 1,000 1,000 Units in circulation* 5,000 5,000 5,000 5,000 Net asset value per unit (USD)* Highest net asset value per unit (USD)* Lowest net asset value per unit (USD)* Benchmark performance (%) Total return (%) (1) Capital growth (%) Income distribution (%) Gross distribution (cent per unit) Net distribution (cent per unit) Management expense ratio (%) (2) Portfolio turnover ratio (times) (3) * Above prices and net asset value per unit are not shown as ex-distribution. Note: (1) Total return is the actual/annualised return of the Fund for the respective financial period/years computed based on the net asset value per unit and net of all fees. (2) Management expense ratio ( MER ) is calculated based on the total fees and expenses incurred by the Fund divided by the average fund size calculated on a daily basis. (3) Portfolio turnover ratio ( PTR ) is calculated based on the average of the total acquisitions and total disposals of investment securities of the Fund divided by the average fund size calculated on a daily basis. 2

6 Average Total Return (as at 31 January 2018) AmGlobal Sukuk (a) % 50% DJSI 50% BPAMCSI (b) % One year Three years Five years Since launch (3 August 2012) Annual Total Return Financial Years/Period Ended (31 July) AmGlobal Sukuk (a) % 50% DJSI 50% BPAMCSI (b) % (c) (a) Source: Novagni Analytics and Advisory Sdn Bhd. (b) Until 25 July % DowJones Sukuk Index + 50% Bloomberg AIBIM Bursa Malaysia Sovereign Shariah Index (BMSSI). Effective from 27 July 2015 onwards 50% DowJones Sukuk Index + 50% BPAM Corporates Sukuk Index) (Obtainable from: (c) Total actual return for the financial period from 3 August 2012 (date of commencement) to 31 July The Fund performance is calculated based on the net asset value per unit of the Fund. Average total return of the Fund and its benchmark for a period is computed based on the absolute return for that period annualised over one year. Note: Past performance is not necessarily indicative of future performance and that unit prices and investment returns may go down, as well as up. Fund Performance For the financial period under review, the Fund registered nil return. Thus, the Fund s return is nil as compared to the benchmark s return of 5.50%. As at 31 January 2018, the net asset value ( NAV ) per unit of the Fund was maintained at USD0.2000, while units in circulations remain unchanged at 5,000 units. Note: Past performance is not necessarily indicative of future performance and that unit prices and investment returns may go down, as well as up. Strategies and Policies Employed To achieve the investment objective, the Fund will undertake active management to enhance and optimize returns from investing in sovereign, quasi-sovereign and corporate sukuk. The sectorial weightings may be adjusted to maximize the performance. There was no minimum rating for a sukuk to be purchased or held by 3

7 the Fund. In managing the Fund, the Investment Manager may opt to invest in the investments either directly or via collective investment schemes. Value-add of the Fund is derived from active tactical duration management, yield curve positioning and credit spread arbitrage. Credit spread arbitrage and yield curve positioning is part of relative value approach that involves analysis of general economic and market conditions and the use of models to analyze and compare expected returns as well as the assumed risks. The Investment Manager will focus on sukuk that would deliver favourable return in light of the calculated risks. In addition, the Investment Manager may also consider sukuk with favourable or improving credit outlook that provide the potential for capital appreciation for these investments. The Fund may invest in sukuk of varying maturities. The Fund s investment maturity profile is subject to active tactical duration management in view of the interest rate scenario without any portfolio maturity limitation. The Fund can invest globally, including but not limited to Malaysia, Singapore, Indonesia, United Arab Emirates, Saudi Arabia, Bahrain, United Kingdom, Luxembourg, Jersey, Bermuda, Brunei, China, Australia, New Zealand, Japan, Hong Kong, United States of America and Germany. Notwithstanding the above, investments in foreign markets are limited to markets where the regulatory authority is a member of the International Organization of Securities Commissions ( IOSCO ). Portfolio Structure This table below is the asset allocation of the Fund for the financial period/year under review. As at % As at % Changes % Cash and others Total For the financial period under review, % of the Fund s NAV was invested in cash as the NAV was insufficient to invest in Sukuk either locally or globally. Cross Trades Distribution/ Unit splits State of Affairs Rebates and Soft Commission There were no cross trades undertaken during the financial period under review. There was no income distribution and unit split was declared for the financial period under review. There has been neither significant changes to the state of affairs of the Fund nor any circumstances that materially affect any interests of the unitholders during the financial period under review. It is our policy to pay all rebates to the Fund. Soft commission received from brokers/dealers is retained by the Manager only if the goods and services provided are of demonstrable benefit to unitholders of the Fund. During the financial period under review, the Manager had received on behalf of the Fund, soft commissions in the form of fundamental database, financial wire services, technical analysis software and stock quotation system incidental to investment management of the Fund. These soft commissions received by the 4

8 Manager are deem to be beneficial to the unitholders of the Fund. Market Review During the review period US Treasury yields moved up across the curve, with the 10 year treasury yield moving up from 2.26% to 2.72%. The rise was driven the successful passage of the Trump tax cuts, more positive economic numbers and a more hawkish tone from the Fed. The Fed hiked the policy rates for the third time for 2017 in Dec. Also, Trump Administration had finally pushed through the USD2.5t tax bill, which includes permanent tax breaks for corporations (tax cut from 35% to 21%) and temporary tax cuts for individual (a cut in top individual tax rate from 39.6% to 37%). The tax bill is projected to provide a boost to the US GDP of up to 1.7% over the long run. The Dow Jones Sukuk Total Return Index increased from to , a modest increase of 0.63%, due to the weakness in the US Treasury market. Market Outlook The official guidance from the Fed is for 3 rate hikes in 2018, with the market widely expecting (93% probability) a 25 bps increase in March However, should inflation expectations increase in the US, there would be a risk that the Fed would decide on more rate hikes which in turn would result in higher US treasury (UST) yields. In January 2018, the market started pricing in higher inflation expectation with the UST 10-year yield increasing from 2.46% to 2.72%. Inflation is expected to be bolstered by the low unemployment rate, the newly implemented tax cuts and a long-awaited raise in wages. The winding down of quantitative easing and increased inflationary expectations should result higher yields along the long end of the curve, preventing an inverted yield curve and thus allowing the Fed to continue its rate hike cycle. Additional Information Following the renewal of the Master Prospectus effective from 10 September 2017, the Counterparty Credit Risk has been included on page 51 as the inclusion in the Fund explicitly describes the risk in counterparty dealing instead of issuer/obligor credit. The insertion of this risk is for clarity purposes. Counterparty Credit Risk Counterparty credit risk is the risk arising from the possibility that the counterparty may default or not able to fulfill a trade settlement prior or on the settlement date of the trade. This could adversely affect the value of the Fund. For more details, kindly refer to the Master Prospectus dated 10 September Kuala Lumpur, Malaysia AmFunds Management Berhad 7 March

9 AmGlobal Sukuk CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 JANUARY (unaudited) (audited) Note USD USD ASSET Cash at bank 1,000 1,000 TOTAL ASSET 1,000 1,000 EQUITY Unitholder s capital 6(a) 1,000 1,000 Retained earnings 6(b) - - TOTAL EQUITY 6 1,000 1,000 UNITS IN CIRCULATION 6(a) 5,000 5,000 NET ASSET VALUE PER UNIT cent cent The accompanying notes form an integral part of the financial statements. 6

10 AmGlobal Sukuk CONDENSED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) FOR THE FINANCIAL PERIOD FROM 1 AUGUST 2017 TO 31 JANUARY to to Note USD USD SHARIAH-COMPLIANT INVESTMENT INCOME Profit income - - Gross Income - - EXPENDITURE Manager s fee Trustee s fee Auditors remuneration - - Tax agent s fee - - Other expenses - - Total Expenditure - - NET INCOME BEFORE TAX - - LESS: INCOME TAX - - NET INCOME AFTER TAX - - OTHER COMPREHENSIVE INCOME - - TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL PERIOD - - Total comprehensive income comprises the following: Realised income - - The accompanying notes form an integral part of the financial statements. 7

11 AmGlobal Sukuk CONDENSED STATEMENT OF CHANGES IN EQUITY (Unaudited) FOR THE FINANCIAL PERIOD FROM 1 AUGUST 2017 TO 31 JANUARY 2018 Unitholder s Retained Total capital earnings equity USD USD USD At 1 August ,000-1,000 Total comprehensive income for the financial period Balance at 31 January ,000-1,000 At 1 August ,000-1,000 Total comprehensive income for the financial period Balance at 31 January ,000-1,000 The accompanying notes form an integral part of the financial statements. 8

12 AmGlobal Sukuk CONDENSED STATEMENT OF CASH FLOWS (Unaudited) FOR THE FINANCIAL PERIOD FROM 1 AUGUST 2017 TO 31 JANUARY to to USD USD CASH FLOW FROM FINANCING ACTIVITY Proceeds from creation of units - - Net cash generated from financing activity - - NET INCREASE IN CASH AND CASH EQUIVALENTS - - CASH AND CASH EQUIVALENTS AT BEGINNING OF FINANCIAL PERIOD 1,000 1,000 CASH AND CASH EQUIVALENTS AT END OF FINANCIAL PERIOD 1,000 1,000 Cash and cash equivalents comprise: Cash at bank 1,000 1,000 The accompanying notes form an integral part of the financial statements. 9

13 AmGlobal Sukuk NOTES TO THE CONDENSED FINANCIAL STATEMENTS 1. GENERAL INFORMATION AmGlobal Sukuk ( the Fund ) was established pursuant to a Deed dated 5 July 2011 as amended by Deeds Supplemental thereto ( the Deed ), between AmFunds Management Berhad as the Manager, Deutsche Trustees Malaysia Berhad as the Trustee and the unitholder. The Fund was set up with the objective to provide capital appreciation by investing primarily in Sukuk both locally and globally. As provided in the Deed, the accrual period or financial year shall end on 31 July and the units in the Fund were first offered for sale on 3 August BASIS OF PREPARATION OF FINANCIAL STATEMENTS The financial statements of the Fund have been prepared in accordance with Malaysian Financial Reporting Standards 134: Interim Financial Reporting ( MFRS 134 ) as issued by the Malaysian Accounting Standards Board ( MASB ). The financial statements of the Fund have been prepared under the historical cost convention, unless otherwise stated in the accounting policies. Standards effective during the financial period The adoption of MFRS which have been effective during the financial period did not have any material financial impact to the financial statements. Standards issued but not yet effective As at the date of authorisation of these financial statements, the following Standards, which are relevant to the Fund, have been issued by MASB but are not yet effective and have not been adopted by the Fund. Effective for financial periods beginning on or after MFRS 9: Financial Instruments MFRS 15: Revenue From Contracts With Customers 1 January January 2018 The Fund plans to adopt the above pronouncements when they become effective in the respective financial periods. These pronouncements are expected to have no significant impact to the financial statements of the Fund upon their initial application except as described below: 10

14 MFRS 9 Financial Instruments MFRS 9 reflects International Accounting Standards Board s ( IASB ) work on the replacement of MFRS 139 Financial Instruments: Recognition and Measurement ( MFRS 139 ). MFRS 9 will be effective for financial year beginning on or after 1 January Based on the Fund s preliminary assessment shows that there is a minimal impact on the classification and measurement of the Fund s financial assets and will continue to be measured at FVTPL. Further, there is no impact on the classification and measurement of the Fund s financial liabilities. 3. SIGNIFICANT ACCOUNTING POLICIES Income recognition 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 on Shariah-compliant fixed income securities and Islamic short-term deposits are recognised on an accrual basis using the effective profit method, which includes the accretion of discounts and amortisation of premiums. Income tax Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date. Current taxes are recognised in profit or loss except to the extent that the tax relates to items recognised outside profit or loss, either in other comprehensive income or directly in equity. Functional and presentation currency Functional currency is the currency of the primary economic environment in which the Fund operates that most faithfully represents the economic effects of the underlying transactions. The functional currency of the Fund is United States Dollar which reflects the currency in which the Fund competes for funds, issues and redeems units. The Fund has also adopted United States Dollar as its presentation currency. Foreign currency transactions Transactions in currencies other than the Fund s functional currency (foreign currencies) are recorded in the functional currency using exchange rates prevailing at the transaction dates. At each reporting date, foreign currency monetary items are translated into United States Dollar at exchange rates ruling at the reporting date. All exchange gains or losses are recognised in profit or loss. Statement of cash flows The Fund adopts the direct method in the preparation of the statement of cash flows. 11

15 Cash equivalents are short-term, highly liquid Shariah-compliant investments that are readily convertible to cash with insignificant risk of changes in value. Distribution Distributions are at the discretion of the Fund. A distribution to the Fund s unitholder is accounted for as a deduction from realised reserves. A proposed distribution is recognised as a liability in the period in which it is approved. Unitholder s capital The unitholder s capital of the Fund meets the definition of puttable instruments and is classified as equity instruments under MFRS 132 Financial Instruments: Presentation ( MFRS 132 ). Financial assets Financial assets are recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the financial instrument. When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs. The Fund determines the classification of its financial assets at initial recognition, and the categories applicable to the Fund include financial assets at fair value through profit or loss ( FVTPL ) and receivables. (i) Financial assets at FVTPL Financial assets are classified as financial assets at FVTPL if they are held for trading or are designated as such upon initial recognition. Financial assets held for trading by the Fund include Shariah-compliant fixed income securities acquired principally for the purpose of selling in the near term. Subsequent to initial recognition, financial assets at FVTPL are measured at fair value. Changes in the fair value of those financial instruments are recorded in Net gain or loss on financial assets at fair value through profit or loss. Profit earned element of such instrument is recorded separately in Profit income. Exchange differences, if any, on financial assets at FVTPL are not recognised separately in profit or loss but are included in net gains or net losses on changes in fair value of financial assets at FVTPL. 12

16 For Shariah-compliant investments in local unquoted fixed income securities, fair value is determined based on the indicative prices from Bond Pricing Agency Malaysia Sdn Bhd plus accrued profit, which includes the accretion of discount and amortisation of premium. For Shariah-compliant investments in foreign fixed income securities, fair value will be based on indicative prices provided by independent and reputable institutions plus accrued profit. Adjusted cost of Shariah-compliant investments relates to the purchase cost plus accrued profit, adjusted for amortisation of premium and accretion of discount, if any, calculated over the period from the date of acquisition to the date of maturity of the respective securities as approved by the Manager and the Trustee. Unrealised gains or losses recognised in profit or loss are not distributable in nature. On disposal of Shariah-compliant investment, the net realised gain or loss on disposal is measured as the difference between the net disposal proceeds and the carrying amount of the Shariah-compliant investment. The net realised gain or loss is recognised in profit or loss. (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 profit method. Gains and losses are recognised in profit or loss when the receivables are derecognised or impaired, and through the amortisation process. Impairment of financial assets The Fund assesses at each reporting date whether there is any objective evidence that a financial asset is impaired. (i) Receivables carried at amortised cost To determine whether there is objective evidence that an impairment loss on financial assets has been incurred, the Fund considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments. If any such evidence exists, the amount of impairment loss is measured as the difference between the asset s carrying amount and the present value of estimated future cash flows discounted at the financial asset s original effective profit rate. The impairment loss is recognised in profit or loss. The carrying amount of the financial asset is reduced through the use of an allowance account. When a receivable becomes uncollectible, it is written off against the allowance account. If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date. The amount of reversal is recognised in profit or loss. 13

17 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, within the scope of MFRS 139, are recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the financial instrument. The Fund s financial liabilities are recognised initially at fair value plus directly attributable transaction costs and subsequently measured at amortised cost using the effective profit 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 the amortisation process. Classification of realised and unrealised gains and losses Unrealised gains and losses comprise changes in the fair value of financial instruments for the period and from reversal of prior period s unrealised gains and losses for financial instruments which were realised (i.e. sold, redeemed or matured) during the reporting period. Realised gains and losses on disposals of financial instruments classified at fair value through profit or loss are calculated using the weighted average method. They represent the difference between an instrument s initial carrying amount and disposal amount. Significant accounting estimates and judgments The preparation of the Fund s financial statements requires the Manager to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability in the future. The Fund classifies its Shariah-compliant investment as financial assets at FVTPL as the Fund may sell its Shariah-compliant investment in the short-term for profit-taking or to meet unitholder s cancellation of units. No major judgments have been made by the Manager in applying the Fund s accounting policies. There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period. 4. MANAGER S FEE No Manager s fee was charged in the previous and current financial periods. 5. TRUSTEE S FEE No Trustee s fee was charged in the previous and current financial periods. 14

18 6. TOTAL EQUITY Total equity is represented by: Note USD USD Unitholder s capital (a) 1,000 1,000 Retained earnings Realised income (b) - - (a) UNITHOLDER S CAPITAL/UNITS IN CIRCULATION 1,000 1, Number of Number of units USD units USD At beginning/end of the financial period/year 5,000 1,000 5,000 1,000 The Manager charged an exit penalty of 1.00% (2017: 1.00%) on the net asset value per unit of the Fund during the financial period. The exit penalty shall be placed back to the Fund. (b) REALISED DISTRIBUTABLE USD USD At beginning of the financial period/year - - Total comprehensive income for the financial period/year - - At end of the financial period/year UNITS HELD BY RELATED PARTIES Number of Number of units USD units USD Manager* 5,000 1,000 5,000 1,000 * The Manager is the legal and beneficial owner of the units. The parties related to the Manager did not hold any units in the Fund as at 31 January 2018 and 31 July

19 8. DISTRIBUTION No distribution was declared by the Fund for the financial periods ended 31 January 2018 and 31 January MANAGEMENT EXPENSE RATIO ( MER ) The MER of the Fund is the ratio of the sum of annualised fees and expenses incurred by the Fund to the average net asset value of the Fund calculated on a daily basis, is nil (2017: nil). 10. PORTFOLIO TURNOVER RATIO ( PTR ) The PTR of the Fund, which is the ratio of average total acquisitions and disposals of Shariahcompliant investment to the average net asset value of the Fund calculated on a daily basis, is nil (2017: nil). 11. SEGMENTAL REPORTING There are no separately identifiable business or geographical segments as the Fund did not have any investments nor any financial results during the financial period. 12. TRANSACTION WITH FINANCIAL INSTITUTION There was no transaction with financial institution for the financial period ended 31 January RISK MANAGEMENT POLICIES As at 31 January 2018, the Fund does not have exposure to market risk, currency risk, profit rate risk, credit risk, liquidity risk, single issuer risk, regulatory risk, country risk, management risk and non-compliance/shariah non-compliance risk as the Fund does not have Shariah-compliant investment during the financial period. 16

20 AmGlobal Sukuk STATEMENT BY THE MANAGER I, GOH WEE PENG, for and on behalf of the Manager, AmFunds Management Berhad, for AmGlobal Sukuk do hereby state that in the opinion of the Manager, the accompanying condensed statement of financial position, condensed statement of comprehensive income, condensed statement of changes in equity, condensed statement of cash flows and the accompanying notes are drawn up in accordance with Malaysian Financial Reporting Standards so as to give a true and fair view of the financial position of the Fund as at 31 January 2018 and the comprehensive income, the changes in equity and cash flows of the Fund for the half year then ended. GOH WEE PENG For and on behalf of the Manager AmFunds Management Berhad Kuala Lumpur, Malaysia 7 March

21 TRUSTEE S REPORT 18

22 REPORT OF THE SHARIAH ADVISOR TO THE UNITHOLDERS of AmGlobal Sukuk For The Financial Period from 1 August 2017 to 31 January 2018 We have acted as the Shariah Adviser of AmGlobal Sukuk. Our responsibility is to ensure that the procedures and processes employed by AmIslamic Funds Management Sdn Bhd and that the provisions of the AmMaster Deed dated 5 July 2011 is in accordance with Shariah principles. In our opinion, AmIslamic Funds Management Sdn Bhd has managed and administered AmGlobal Sukuk in accordance with Shariah principles and complied with applicable guidelines, ruling or decision issued by the Securities Commission (SC) pertaining to Shariah matters. We can confirm that the investment portfolio of the abovementioned Fund comprises of securities which have been classified as Shariah compliant by the Shariah Advisory Council (SAC) of the Securities Commission of Malaysia (SC) or the SAC of Bank Negara Malaysia (BNM). For securities not classified by the SAC of the SC or SAC of BNM, we have determined that such securities are in accordance with Shariah principle and have complied with the applicable Shariah guidelines. For Amanie Advisors Sdn Bhd.. Datuk Dr Mohd Daud Bakar Executive Chairman 7 March

23 DIRECTORY Head Office 9 th Floor, Bangunan Ambank Group 55, Jalan Raja Chulan, Kuala Lumpur Tel: (03) Facsimile: (03) enquiries@aminvest.com Postal Address AmFunds Management Berhad P.O Box 13611, Kuala Lumpur Related Institutional Unit Trust Agent AmBank (M) Berhad Company No D AmInvestment Bank Berhad Company No V Head Office 31 st Floor, Menara AmBank No. 8 Jalan Yap Kwan Seng, Kuala Lumpur Head Office 22 nd Floor, Bangunan AmBank Group 55 Jalan Raja Chulan, Kuala Lumpur For more details on the list of IUTAs, please contact the Manager. For enquiries about this or any of the other Funds offered by AmFunds Management Berhad Please call between 8.45 a.m. to 5.45 p.m. (Monday to Thursday), Friday (8.45 a.m. to 5.00 p.m.) 20

24 Semi-Annual Report 28 February aminvest.com AmFunds Management Berhad ( A)