Home' Trinidad and Tobago Guardian : October 22nd 2015 Contents B30
The Immortelle Income and Growth Fund
30 June 2015
1. Description of the Fund:
(a) General -
The Immortelle Income and Growth Fund (the Fund) is an open ended Mutual Fund in which units
are issued. It was established by First Citizens Bank Limited under a Trust Deed dated 11 July 2005 in
order to facilitate participation in the domestic, regional and international corporate and government
sectors by the investing public through the purchase of units in the Fund. Operations commenced
on 15 September 2005. The Investment Manager of the Fund is First Citizens Asset Management
Limited. Under a Supplemental Trust Deed dated 24 July 2007, First Citizens Trustee Services Limited
was appointed Trustee of the Fund.
(b) Subscriptions -
Subscriptions to the Fund are made by investors and are based on the net asset value per unit
determined on each business day. Units may be subscribed at a minimum value of TT$500.
(c) Redemptions -
Redemptions from the Fund will be at the redemption price less any stamp duty or taxation leviable
thereon on the relevant redemption date. The redemption price will be the Net Asset Value per Unit
calculated at the close of the business day on which the redemption form was submitted.
The Trustee/Custodian applies a redemption charge as follows: -
Not to exceed 2.5% per annum up to 1 year
Not to exceed 1.5% per annum from 1-2 years
(d) Distribution -
Distributions are made annually subsequent to the Fund's financial year. Distributions payable will
ordinarily be reinvested automatically in additional units of the Fund at the issue price at the relevant
distribution date, unless investors request a cash distribution.
(e) Management fees -
Management fees are paid to the Trustee and the Distribution Agent, each 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% per annum on the average Net Asset Value of the Fund.
(f) Taxation -
Tax on interest income is withheld on distributions paid to non-resident unitholders at rates applicable
to the country in which the unitholders reside.
2. Summary of Significant Accounting Policies:
The principal accounting policies adopted in the preparation of these financial statements are set out
below. These policies have been consistently applied to all years presented, unless otherwise stated.
(a) 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 judgement in the process of applying
the Fund's accounting policies. The areas involving a higher degree of judgement or complexity or areas
where assumptions and estimates are significant to the financial statements are disclosed in Note 3.
(i) Standards, amendments and interpretations which are effective and have been adopted by the
There are no standards, interpretations or amendments to existing standards that are effective
for the first time for the financial year beginning 1 July 2015 that would be expected to have a
material impact on the Fund.
(ii) Standards effective after 1 July 2015 that have been early adopted by the Fund
The Fund has not early adopted any new standards, interpretations or amendments.
(iii) 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 2015, 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:
• Annual improvements 2014. Effective for annual periods beginning on or after 1 January
2016. These set of amendments impacts 4 standards:
• IFRS5 -- 'Non-current assets held for sale and discontinued operations' regarding methods
• IFRS 7 -- 'Financial instruments: Disclosure' (with consequential amendments to IFRS 1)
regarding servicing contracts.
• IAS 19 -- 'Employee benefits' regarding discount rates.
• IAS 34 -- 'Interim financial reporting regarding disclosure of information'.
• Amendment to IAS 1, 'Presentation of financial statements' on the disclosure initiative.
Effective annual periods beginning on or after 1 January 2016, subjective to EU endorsement.
These amendments are as part of the IASB initiative to improve presentation and disclosure in
• IFRS 9 -- 'Financial instruments' -- classification and measurement. Effective annual periods
beginning on or after 1 January 2018. This new standard on classification and measurement
of financial assets and financial liabilities will replace the guidance in 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. The standard also includes an expected credit losses
model that replaces the current incurred loss impairment model.
(iv) Standards, amendments and interpretations issued which are not yet effective and not relevant
to the Fund
• IFRS 11 -- Joint Arrangement on acquisition of an interest in a joint operation - Amendment
(effective for accounting 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 amendment specifies the appropriate accounting treatment for
such acquisitions in accordance with that type of joint arrangement.
• IAS 16 - Property, plant and equipment and IAS 38, Intangible assets, on depreciation and
amortisation -- Amendment (effective for annual periods beginning on or after 1 January
2016). In 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 intangible asset.
• IFRS 14 - Regulatory deferral accounts -- (effective for annual periods beginning on or after 1
January 2016). IFRS 14, 'Regulatory deferral accounts' permits first--time adopters to continue
to recognise amounts related to rate regulation in accordance with their previous GAAP
requirements when they adopt IFRS. However, to enhance comparability with entities that
already apply IFRS and do not recognise such amounts, the standard requires that the effect
of rate regulation must be presented separately from other items.
For the year ended
Net income for the year
Adjustment for items not involving cash:
Appreciation cost of units redeemed
Net cash from operating activities before working capital changes
Net change in accounts receivable
Net change in accounts payable
Cash used in Operating Activities
Net purchase of financial assets available-for-sale
Proceeds from disposal/redemption of financial assets
Cash used in Investing Activities
Subscriptions (net of distribution to unitholders)
Cash provided by Financing Activities
Increase/(decrease) in cash and cash equivalents for the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
(The accompanying notes form a part of these financial statements.)
(Expressed in Trinidad and Tobago Dollars)
(Expressed in Trinidad and Tobago Dollars)
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