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105 / 136

2014 S$

2013 S$

2014 S$

2013 S$

2014 S$

2013 S$

Management fees Reimbursement Net management fees

306,950 306,950

122,900 (1,233) 121,667

1,696,425 1,696,425

1,938,579 1,938,579

26,471,442 26,471,442

20,675,209 20,675,209

Aberdeen Pacific Equity Fund

Aberdeen Japan

Aberdeen Malaysian

Equity Fund

Equity Fund

2014 S$

2013 S$

2014 S$

2013 S$

11,744,477 11,744,477

8,663,669 8,663,669

3,089,742 3,089,742

3,309,463 3,309,463

  • Notes to the financial statements for the year ended 30 September 2014

Aberdeen Singapore

Aberdeen Thailand

Equity Fund

Equity Fund

Management fees Reimbursement Net management fees

10. Financial risk management

The sub‑funds’ activities expose them to a variety of market risks (including price risk, interest rate risk and currency risk). The sub‑funds overall risk management programme seeks to minimise potential adverse effects on the sub‑funds financial performance. The sub‑funds may use futures contracts, and/or forward foreign exchange contracts subject to the terms of the Trust Deed to moderate certain risk exposures. Specific guidelines on exposures to individual securities and certain industries are in place for the sub‑funds at any time as part of the overall financial risk management to reduce the sub‑funds’ risk exposures.

  • a)

    Market risk

  • (i)

    Price risks

Price risk is the risk that arises from uncertainties about future prices of financial instruments.

The sub‑funds’ investments are substantially dependent on the changes of market prices. The sub‑fund’s overall market positions are monitored regularly so as to assess any deviation from the sub‑fund’s investment objective. However, events beyond reasonable control of the Manager could affect the prices of the underlying investments and hence the net asset value of the sub‑fund.

The sub‑funds’ sensitivity to the market are measured using its betas, a ratio that describes how the expected return of a portfolio is correlated to the return of the financial market as a whole. The daily sub‑fund price movements are measured against the daily price movement of the benchmark to derive the beta.

The table below summarises the impact of increases/decreases from the sub‑funds’ underlying investments on the sub‑funds’ net assets attributable to the unitholders as at 30 September 2014 and 30 September 2013. The analysis was based on the assumptions that the index components within the benchmark index increased/decreased by a reasonable possible shift, with all variables held constant and that the fair value of the sub‑funds’ investments moved according to the beta.

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