Home' Trinidad and Tobago Guardian : October 28th 2014 Contents A19
The Abercrombie TTD Monthly Fixed Income Fund
30 June, 2014
1 Description Of The Fund
The following brief description of The Abercrombie TTD Monthly Fixed Income Fund (the Fund) is provided for
general information purposes only. Reference should be made to the Trust Deed and rules of the Fund for more
The Fund is an open-ended mutual fund registered in Trinidad and Tobago and was established by the Original
Trustee, First Citizens Bank Mortgage and Trust Company Limited, under a Trust Deed dated 25 September 1998.
An open-ended fund is one in which the number of units which may be issued in the fund is unlimited. The
principal activity of the Fund is to provide investors with high current income through investment in a diversified
portfolio that maximises their returns. In July 2007, First Citizens Trustee Services Limited was appointed Trustee to
replace the Original Trustee who retired. The Investment Manager of the Fund is First Citizens Asset Management
The address of its registered office is 45 Abercromby Street, Port of Spain.
Subscriptions to the Fund are made by investors at a price per unit of $20 each. Units may be subscribed at an
initial minimum value of $500.
In accordance with the terms of the Trust Deed, distributions are made monthly out of the operating profits of the
Fund. Investors have the option to either receive a cash distribution, or to reinvest income distributions into units
at the prevailing subscription price as at the date of distribution.
Units are redeemed without charge at a price per unit (bid price) based on the net asset value per unit at the date
of receipt of the request for redemption. The Trustee seeks to maintain as far as is reasonably possible a bid price
of $20 per unit. Units may be redeemed in cash up to a limit of $250,000 or one percent of the net asset value
of the Fund, whichever is lower, during any sixty day period for any one investor.
Management fees are paid to the Trustee and the Distribution Agent at a rate of 0.25% per annum on the average
net asset value of the Fund. The Investment Manager is paid up to a maximum of 2.50% per annum on the
average net asset value of the Fund.
Tax on income is withheld on distributions paid to non-resident unit holders at the rates applicable to the country
in which the unit holders reside. Distribution income of the Fund will be subject to a deduction of tax in
accordance with the current law.
2 Summary Of Significant Accounting Policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These
policies have been consistently applied to all years presented, unless otherwise stated.
2.1 Basis of preparation
The financial statements of the Fund have been prepared in accordance with International Financial
Reporting Standards (IFRS) under the historical cost convention, as modified by the revaluation of financial
assets available for sale.
The preparation of financial statements in conformity with IFRS requires the use of certain critical
accounting estimates. It also requires the Trustee to exercise its judgment in the process of applying the
Fund's accounting policies. The areas involving a higher degree of judgment or complexity or areas where
assumptions and estimates are significant to the financial statements are disclosed in Note 3.
(a) Standards, amendment and interpretations which are effective and have been adopted by the Fund
There are no standards, interpretations or amendments to existing standards that are effective for the
first time for the financial year beginning 1 July 2013 that would be expected to have a material
impact on the Fund.
(b) Standards effective after 1 July 2013 that have been early adopted by the Fund
The Fund has not early adopted any new standards, interpretations or amendments.
(c) Standards, amendments and interpretations issued but not yet effective and not early adopted by the
Fund (although relevant to the Fund's operations)
A number of new standards, amendments to standards and interpretations are effective for annual
periods beginning after 1 July 2013, and have not been applied in preparing these financial
statements. These are not expected to have a significant effect on the financial statements of the
Fund with the exception of the following set out below:
Amendment to IAS 32 (effective for annual periods beginning on or after 1 January 2014 and
applicable to the Fund from 1 July 2014). This amendment updates the application guidance in IAS
32, 'Financial instruments: Presentation', to clarify some of the requirements for offsetting financial
assets and financial liabilities on the balance sheet. This amendment is not expected to significantly
impact the financial statements of the Fund.
or after 1 January 2014 and applicable to the Fund from 1 July 2014). These amendments address
the disclosure of information about the recoverable amount of impaired assets if that amount is
based on fair value less costs of disposal. These amendments are not expected to significantly
impact the financial statements of the Fund.
applicable to the Fund from 1 July 2014). These amendments include changes from the 2010-12
cycle of the annual improvements project that affect 7 standards:
liabilities and contingent assets', and
These improvements are not expected to significantly impact the financial statements of the
applicable to the Fund from 1 July 2014). The amendments include changes from the 2011-2-13
cycle of the annual improvements project that affect 4 standards:
These improvements are not expected to significantly impact the financial statements of the Fund.
beginning on or after 1 January 2018 and applicable to the Fund from 1 July 2018). This standard
on classification and measurement of financial assets and financial liabilities will replace IAS 39,
'Financial instruments: Recognition and measurement'. IFRS 9 has two measurement categories:
amortised cost and fair value. All equity instruments are measured at fair value. A debt instrument
is measured at amortised cost only if the entity is holding it to collect contractual cash flows and
the cash flows represent principal and interest. For liabilities, the standard retains most of the IAS
39 requirements. These include amortised-cost accounting for most financial liabilities, with
bifurcation of embedded derivatives. The main change is that, in cases where the fair value option
is taken for financial liabilities, the part of a fair value change due to an entity's own credit risk is
recorded in other comprehensive income rather than the income statement, unless this creates an
accounting mismatch. This change will mainly affect financial institutions. While the new standard
is expected to significantly impact the Fund's presentation of fair value changes arising on financial
assets available for sale, is not expected to impact the net asset value calculations.
(d) Standards, amendments and interpretations issued which are not yet effective and not relevant to the
Amendments (effective for annual periods beginning on or after 1 January 2014). These
amendments mean that many funds and similar entities will be exempt from consolidating most of
their subsidiaries. Instead, they will measure them at fair value through profit or loss. The
amendments give an exception to entities that meet an 'investment entity' definition and which
display particular characteristics. Changes have also been made IFRS 12 to introduce disclosures
that an investment entity needs to make.
2014). These narrow-scope amendments allow hedge accounting to continue in a situation where
a derivative, which has been designated as a hedging instrument, is novated to effect clearing with
a central counterparty as a result of laws or regulation, if specific conditions are met (in this
context, a novation indicates that parties to a contract agree to replace their original counterparty
with a new one). This relief has been introduced in response to legislative changes across many
jurisdictions that would lead to the widespread novation of over-the-counter derivatives. These
legislative changes were prompted by a G20 commitment to improve transparency and regulatory
oversight of over-the-counter derivatives in an internationally consistent and non-discriminatory
way. Similar relief will be included in IFRS 9, 'Financial instruments'.
periods beginning on or after 1 July 2014). These narrow scope amendments apply to
contributions from employees or third parties to defined benefit plans. The objective of the
amendments is to simplify the accounting for contributions that are independent of the number of
years of employee service, for example, employee contributions that are calculated according to a
fixed percentage of salary.
(effective for annual periods beginning on or after 1 January 2016). This amendment adds new
guidance on how to account for the acquisition of an interest in a joint operation that constitutes
a business. The amendments specify the appropriate accounting treatment for such acquisitions.
this amendment the IASB has clarified that the use of revenue based methods to calculate the
depreciation of an asset is not appropriate because revenue generated by an activity that includes
the use of an asset generally reflects factors other than the consumption of the economic benefits
embodied in the asset. The IASB has also clarified that revenue is generally presumed to be an
inappropriate basis for measuring the consumption of the economic benefits embodied in an
(Expressed in Trinidad and Tobago dollars)
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