ABN AMRO Funds - Aia.com.hk

3) In the event that any assets are not listed or dealt in on any
stock exchange or on any regulated market and/or any other
regulated market, or if, with respect to assets listed or dealt in
on any stock exchange, or any regulated market and/or other
regulated market as aforesaid, the price as determined pursuant
to sub-paragraph 2) is not representative of the fair market value
of the relevant assets, the value of such assets is based on
the reasonably foreseeable sales price determined prudently and
in good faith under the direction of the Board of Directors;
4) The value of forwards or options contracts not traded on exchanges
or on regulated markets and/or other regulated markets
shall be their net liquidating value determined, pursuant to the
policies established by the Board of Directors, on a basis consistently
applied for each different variety of contracts. The liquidating
value of forward and options contracts traded on
exchanges or on regulated markets and/or other regulated markets
is based upon the last available settlement prices of these
contracts on exchanges and regulated markets and/or other
regulated markets on which the particular forwards or options
contracts are traded by the SICAV; provided that if a forward
or options contract could not be liquidated on the day with respect
to which net assets are being determined, the basis for determining
the liquidating value of such contract shall be such
value as the Board of Directors may deem fair and reasonable;
5) The value of futures contracts traded on exchanges or on regulated
markets and/or other regulated markets is based upon the
last available settlement prices of these contracts on exchanges
and regulated markets and/or other regulated markets on which
the particular futures contracts are traded by the SICAV; provided
that if a futures contract could not be liquidated on the
day with respect to which net assets are being determined, the
basis for determining the liquidating value of such contract
shall be such value as the Board of Directors may deem fair
and reasonable;
6) Total Return, Credit Default and Interest Rate Swap transactions
are valued at their daily fair value under guidelines established
by the Board of Directors of the SICAV and in
accordance with the terms of the Swap agreement. Upon entering
into a Swap contract, the Fund is required to deposit with a
broker an initial cash margin equal to a certain percentage of
the contract amount. Variation margin payments are made or
received by the Fund depending upon the fluctuation in the value
of the underlying securities;
7) The value of money market instruments not listed or dealt in
on any stock exchange or any regulated market and/or other
regulated market and with remaining maturity of less than 12
months and of more than 90 days is deemed to be the nominal
value thereof, increased by any interest accrued thereon. Money
market instruments with a remaining maturity of 90 days or
less are valued by the amortised cost method, which approximates
market value;
8) Units or shares of open-ended Undertaking for Collective Investment
(‘‘UCI’’), either listed or not, are valued at their last
determined and available net asset value. If such price is not representative
of the fair value of such assets, then the price shall
be determined by the Board of Directors on a fair and equitable
basis. Units or shares of a closed-ended UCI are valued at their
last available stock market value;
9) Contracts for Differences are agreements between the Fund and
third parties which allow the Fund to acquire an exposure to
the price movement of specific securities without actually purchasing
the securities. Upon entering into a contract for difference,
the Fund is required to deposit with a broker an initial
cash margin equal to a certain percentage of the contract
amount. Variation margin payments are made or received by
the Fund depending upon the fluctuation in the value of the underlying
securities. Contracts for Differences are valued as the
difference between the quoted price of the underlying on the
valuation date and the opening contract price. The changes in
contract values are recorded as unrealised gains or losses and
the Fund recognises a realised gain or loss when the contract is
closed. Open Contracts for Differences are shown in the statement
of investments.
10) All other securities and other assets are valued at fair value as
determined in good faith pursuant to procedures established
by the Board of Directors;
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Fair values estimates are made at a specific point of time, based on
market conditions and information about the financial instrument.
These estimates are subjective in nature and involve uncertainties
and matters of significant judgment and therefore, cannot be
determined with precision. Changes in assumptions could significantly
affect the estimates.
Securities, futures, forwards, swap and options contracts were valued
for the purposes of these financial statements on May 1, 2008 on the
basis of last available prices and exchange rates on April 30, 2008
with the exception of Asian securities for which a snapshot at 7.00 a.
m. on May 1, 2008 was used for valuation purposes.
The value of all assets and liabilities not expressed in the reference
currency of a Fund are converted into the reference currency of such
Fund at the rate of exchange ruling in Luxembourg at the date of the
Statement of Net Assets. If such quotations are not available, the rate
of exchange are determined in good faith by or under procedures
established by the Board of Directors.
The Board of Directors, in its discretion, may permit some other
method of valuation to be used if it considers that such valuation
better reflects the fair value of any asset of the SICAV.
b.Foreign currencies
Transactions in foreign currencies are converted into the reference
currency of the relevant Fund at the exchange rate prevailing at the
date of the transactions. The combined total of net assets and
operations and changes in net assets of the SICAV is presented in US
dollar based on the exchange rate prevailing at the date of the
Statement of Net Assets.
c. Investment income and investment transactions
Dividend income is recorded on the ex-dividend date. Interest
income is accrued daily. Investment gains and losses are determined
on the average cost basis. Discounts are accreted and premiums
amortised as adjustments to interest income. Investment transactions
are accounted for on a trade date basis.
d.Written Options
The Funds are authorised to write put and call options. When a Fund
writes an option, an amount equal to the premium received by the
Fund is reflected as an asset. The amount of the asset is subsequently
marked to market to reflect the current fair value of the option
written. When a security is purchased or sold through the exercise of
an option, the related premium received is added to the proceeds of
the security acquired or deducted from the proceeds of the security
sold. When an option expires (or a Fund enters into a closing
transaction), the Fund realises a gain on the option to the extent of
the premiums received (or loss to the extent the cost of the closing
transaction exceeds the premium received). The Fund, as writer of an
option, bears the market risk of an unfavorable change in the price of
the security underlying the written option. Written options are nonincome
producing investments.
e. Estimates
The preparation of financial statements in conformity with
Luxembourg investment Funds generally accepted accounting
principles requires management to make estimates and assumptions
that affect the reported amount of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during
the reporting year. Actual results could differ from those estimates.
f. Security lending income
Income from securities lending is recorded on an accruals basis. The
revenue is apportioned to each Fund according to the market value of
outstanding loan amounts.
g. Dividends
If approved by Shareholders at the annual general meeting, the
SICAV will make a distribution to holders of Dividend Shares of
each Fund from its net investment income, realised and unrealised
capital gains and from the capital of the Fund within the limits of
applicable law and regulations. The Board of Directors may also
decide, in the course of the financial year, to effect one or more
interim dividend pay-out(s) in relation to any of the Funds. The
Board of Directors reserves the right to increase or decrease the
frequency of dividend payments at its discretion and to introduce a
dividend policy which may vary from one Fund to another.
h. Forward Settlement Transactions
The SICAV may enter into forward settlement transactions for the
purpose of efficient portfolio management or hedging with brokerdealers
who make markets in these transactions and who are first