Semi/Annual Report - Fundsupermart.com

DEUTSCHE NOOR ISLAMIC FUNDS PLC
CONTENTS
General Information
Page
2
Deutsche Noor Precious Metals Securities Fund
Investment Manager’s report
Portfolio of Investments
Portfolio Changes
5
9
12
Profit and Loss Account
13
Statement of Changes in Net Assets Attributable to Redeemable
Participating Shareholders
14
Balance Sheet
15
Notes to the Financial Statements
16
Other Information
22
Appendix
24
1
DEUTSCHE NOOR ISLAMIC FUNDS PLC
GENERAL INFORMATION
The following information is derived from, and should be read in conjunction with, the full text and definitions
section of the Prospectus.
Deutsche Noor Islamic Funds Plc (“the Company”) is an open-ended umbrella variable capital investment
company with segregated liability between sub-funds incorporated on 27 July 2006, with limited liability
under the laws of Ireland with registered number 424121. The Company was incorporated on 27 July 2006 as
DWS Noor Islamic Funds Plc and at an extraordinary general meeting of the Company held on 30 October
2013 it was resolved to change the name to Deutsche Noor Islamic Funds Plc, effective 4 November 2013.
The Company is authorised in Ireland as an investment company pursuant to the European Communities
(Undertakings for Collective Investment in Transferable Securities) Regulations 2011, (as amended), (the
“Regulations”). Accordingly, the Company is supervised by the Central Bank of Ireland (“the Central Bank”).
The Company is structured as an umbrella fund, that is, the investor can be offered one or more sub-funds at
the sole discretion of the Company. A separate portfolio will be maintained for the sub-fund and will be
invested in accordance with the investment objectives and policies applicable to the sub-fund. At the period
end the following sub-fund existed:
Fund
Deutsche Noor Precious Metals Securities Fund
Launch Date
17 October 2006
Ccy
USD
Following the issue of a revised Prospectus on 25 April 2014, the sub-fund changed its name from DWS Noor
Precious Metals Securities Fund to Deutsche Noor Precious Metals Securities Fund.
Additional sub-funds may be established and the existing sub-fund may be dissolved at any time in accordance
with the Prospectus and with the prior approval of the Central Bank.
Although the shares within the sub-fund may be issued in different classes they shall always be treated on an
equal basis within the sub-fund. One or more share classes can be offered within the sub-fund (multi-shareclass construction). The share classes may differ with respect to a number of different features, e.g. front-end
load, investment management fees, allocation of earnings, currency, or with respect to the type of investor
targeted. At present, the Company offers 3 classes of shares in the sub-fund:
Class A – Retail
Class B – Institutional
Class J – Retail
Class A and Class B are United States Dollar (“USD”) denominated while Class J is Singapore Dollar
(“SGD”) denominated.
Prices
The price for buying, selling and switching Shares in the Company is represented by the Net Asset Value
of the relevant sub-fund.
Minimum Investment
Share Class
‘A’
‘B’
‘J’
Minimum Investment
USD 1,000
USD 500,000
SGD 1,000
2
DEUTSCHE NOOR ISLAMIC FUNDS PLC
GENERAL INFORMATION cont/d
Dealing
For the Company, every business day shall be a dealing day. The valuation point for the Company is 10
a.m. (Irish time) on each dealing day. The Administrator’s Dealing Deadline for subscriptions and
redemptions is 10 a.m. Irish time on each Dealing Day for all share classes of the Sub-Fund Subscription
proceeds must be received in cleared funds by the Custodian, within 4 Business Days of the relevant
Dealing Day.
The Prospectus – Special Section – details the order acceptance deadlines applicable for individual share
classes. Applications received after the Dealing Deadline will be dealt with on the next subsequent Dealing
Day.
All deals should be addressed to the Company, c/o the Administrator:
State Street Fund Services (Ireland) Limited
78 Sir John Rogerson’s Quay
Dublin 2
Ireland
Telephone:
353-1-776 8000
Fax:
353-1-776 8491
Dividends
For all share classes, earnings are continuously reinvested in the assets of the Sub-Fund and allocated to
the respective share classes. The Directors may elect to pay out special and interim dividends for each
share class in accordance with the law. In the event that the Directors elect to pay a special or interim
dividend, full details shall be provided in an updated prospectus and all shareholders will be notified in
advance. No distribution will reduce the Company’s capital to a level below its minimum capital in
accordance with the Sales Prospectus.
Sharia Investment Guidelines
The Company will undertake its investment activities in accordance with the Sharia Investment Guidelines.
As a consequence, this may mean that the Company may under-perform, when compared to other
investment funds with comparable investment objectives that do not seek to adhere to Islamic investment
criteria (for example the inability to invest in interest bearing investment securities and the amount of any
donations to charities made up of cash dividends which have been cleansed). The Sharia Investment
Guidelines may require the Company to dispose of investments in circumstances that are less advantageous
than might otherwise be the case. In particular, the Main Investment Manager will receive the Sharia
Supervisory Committee's instructions through the Sharia Advisor, as set out in the Sharia Advisory
Agreement executed between the Company, the Main Investment Manager and the Sharia Advisor.
Pursuant to such instructions by the Sharia Advisor, the Main Investment Manager and Investment
Manager will, for instance, not be allowed to invest in securities and other financial instruments which, in
the opinion of the Sharia Supervisory Committee of the Sharia Advisor, are not or are no longer, in
compliance with the Sharia Investment Guidelines. Similarly, cash balances held by the Company from
time to time may be deposited on terms which shall grant no return on the sum deposited to the benefit of
the Sub-Fund.
Although the Company intends to observe the Sharia Investment Guidelines at all times, no such assurance
can be given, as there may be occasions when the Company's investments do not fully comply with such
criteria for factors outside the control of the Company. The Custodian shall not be responsible for
monitoring compliance with the Sharia Investment Guidelines.
3
DEUTSCHE NOOR ISLAMIC FUNDS PLC
GENERAL INFORMATION cont/d
Purification of Income
It is obligatory to purify dividends from the prohibited income (e.g. interest earnings, income generated by
other impermissible activities, etc).
a. A Sub-Fund may invest only in companies that satisfy the Sharia criteria stated in the Prospectus.
Where a Sub-Fund invests in a company which satisfies the Sharia Investment Guidelines set out
in the Prospectus but which still derives a portion of its revenue from prohibited activities, then the
Sub-Fund must cleanse, where appropriate, all dividend receipts from such a company by donating
a certain portion of such dividend receipts to charity.
b. In order to purify the income received from prohibited activities, an amount equivalent to 5% of all
cash dividends received within the Sub-Fund will be donated to a charity. The Administrator shall
provide a schedule on a semi-annual basis showing the amount to be paid to charities in respect of
the prohibited income received from investments of the Sub-Fund.
c. During the course of each period, when the Sub-Fund receives any dividend, 5% of the dividend
will be deducted from the Net Asset Value of the Sub-Fund and accrued separately.
d. The Directors shall determine which charities shall benefit from donations (with no direct or
indirect benefit accruing to the Sharia Advisor, Sharia Supervisory Committee of the Sharia
Advisor, the Company, its Sub-Fund or any of its investors) and the Company shall make any
donations to such charitable organisations within a reasonable time after such determination in
good faith. Such donations will be deducted directly from the assets of the Sub-Fund by the
Company. Donations shall be initially made to UNICEF or other such charitable institutions as the
Directors shall determine from time to time in consultation with the Main Investment Manager.
4
DEUTSCHE NOOR ISLAMIC FUNDS PLC
DEUTSCHE NOOR PRECIOUS METALS SECURITIES FUND
Investment Manager’s Report for the period ended 30 June 2014
Fund Performance
Net returns (% USD) as at quarter end
Deutsche Noor Precious Metals Securities Fund
– Class A Shares
S&P BMI Gold and Precious Metals Index
(Total Return)
3M
6M
1Y
Since
inception*
7.00
19.36
21.74
-5.75
10.09
22.36
16.59
-3.93
Performance shown is on NAV to NAV basis
*Class A inception on 14 Feb 2007; returns are annualized
For the review period (31 Dec 2013 to 30 Jun 2014), the Deutsche Noor Precious Metals Securities Fund
Class A shares returned 19.36% in absolute terms (NAV to NAV basis). (Source: Bloomberg. The fund
has no reference index.)
Review
Gold and precious metals equities gained in the first quarter of 2014, outperforming the metal by 465 bps
and recovering from heavy underperformance in Q4 2013. This continued into the second quarter of 2014,
boasting additional outperformance of the metal by 672 bps. The main negative impact to gold in Q1 2014
was the Federal Reserve’s (Fed) March 19th Federal Open Market Committee (FOMC) meeting where the
market interpreted the monetary policy as turning decidedly hawkish. Going into the second quarter, Gold
was affected by risk-on, risk-off trading as the Quantitative Easing (QE) Taper continued and the market
pondered the sustainability of US economic growth.
5
DEUTSCHE NOOR ISLAMIC FUNDS PLC
DEUTSCHE NOOR PRECIOUS METALS SECURITIES FUND
Investment Manager’s Report for the period ended 30 June 2014 (cont/d)
Review (cont/d)
ETF Holdings
In January, we saw that risk aversion seemed to be extending to the broader markets as ETF outflows
appeared flat and possibly reversing. We saw a continuation of this trend in the following months when
ETF flows into Gold ETFs increased by 200,000 oz in February and additional 430,000 oz in March. In
addition to risk aversion driven by heightened geopolitical risk in Ukraine, concerns remained around
tighter credit and sustainability of growth as the QE Taper continued.
With last year’s purging of ETFs, we believe an important overhang was removed from the gold markets.
Lower ETF holdings provide better support for gold and traders began calling for support between $1250
and $1300/ oz, sighting both technical analysis and reduced volatility as a result of the heavy selloff in
2013. We believed that lower volatility and market complacency around higher cost of capital and
geopolitical risk would likely create further support for Gold. A more stable gold price combined with
significant asset write-downs of the gold and precious metal equities lead to more prudent capital
expenditure. Through the end of Q1 2014, lower volatility for the commodity and more prudent spending
for the equities drove stronger relative performance of gold and precious metal equities.
Emerging markets
Heading into 2014, the QE Taper continued to exhibit pressure. The prospect of a higher US coupon
worked to weaken certain emerging market currencies as investors require higher yield (interest rates) to
remain in those markets. Higher rates in emerging markets, however, have a deleterious effect on growth
and the capital flight is made worse. Consequently, we believe that demand for gold in the first quarter
was driven higher as emerging market investors sought gold’s safe haven status in an effort to offset
currency depreciation. While we believed the taper was well telegraphed since May of 2013, Gold had
already exceeded our initial target range of between $1150 and $1250 per oz and we had expected the
metal to remain under pressure as the QE Taper was being implemented. Our long term positive view on
gold has been based upon the view that higher interest rates represent challenges to economic growth.
First quarter GDP in the US faced challenges due to weather. The US market appeared to be looking past
that, but we believed tighter credit conditions would prevent the market from looking too far beyond the
weather. We suspected credit was deteriorating further in emerging market private sectors and that this
might create further material barriers to growth for those economies that needed it most. These concerns
persisted as we headed into Q2 2014.
Geopolitical concerns weigh on market optimism
While concerns over emerging market currency turmoil continued, increased geo-political risk and
concerns about growth in the European Union more than offset market optimism. We saw geopolitical risk
take a turn for the worse in Q1 2014 due to the tragic deaths in Kiev and the ousting of Ukrainian President
Yanukovych. His request for assistance from Moscow was conspicuously and immediately granted. We
saw Russian “assistance” lead to the worst tension between Russia and the West since the Cold War. We
were encouraged to find that the World Gold Council (WGC) confirmed our view that currency
devaluation was an important source of demand growth in Asian markets like India and Thailand, but also
in European markets like Turkey. Most notable for us however, was increased demand in Japan. While
the absolute number wasn’t large, the magnitude of the demand increase for Japanese gold was significant.
6
DEUTSCHE NOOR ISLAMIC FUNDS PLC
DEUTSCHE NOOR PRECIOUS METALS SECURITIES FUND
Investment Manager’s Report for the period ended 30 June 2014 (cont/d)
Review (cont/d)
Is Chinese economic growth sustainable?
Increasing confidence in the US and Europe was dramatically offset by the Purchasing Managers’ Index
(PMI) data in China. Concerns surfaced about growth in China slowing enough to prompt further
government stimulus. The CNY weakened by almost 3% during the first 3 months of the year. This was
concerning to us as the CNY had been relatively stable and actually appreciated over the last several years
relative to the USD. These concerns remained elevated moving into Q2 regarding the sustainability and
magnitude of Chinese economic growth and the support for commodities. Given the rise in hard currency
debt (commodity linked financing), we noted the possibility of further weakness on the currency given a
slowdown in foreign direct investment (FDI). Chinese Iron Ore prices continued their negative trend in
May, seemingly bottoming out in June as import prices were up a little over 2%. This was significant as an
indicator of weaker growth in China. For us, weaker economic growth in the world’s second largest
economy is a harbinger for increased uncertainty around the impact of the QE unwind on the global
economy. We viewed iron ore finding a bottom in June as a good start, but now require stronger evidence
of added stability with longer-term visibility before we accept that the risk on trade is fully underway. We
maintain that given the massive increase in debt burden of OECD markets and certain non-OECD markets
like China, there is an increasing dependence on faster growth for longer, sustainable periods.
Yield-chasing in the Eurozone creates challenges
Total Eurozone growth still struggles to exceed 1%, with the periphery struggle for positive territory even
more desperate. Evidence of yield chasing created challenges as high yielding EUR denominated periphery
debt (i.e. Greece, Spain and Italy) lead to a ~15% appreciation of the EUR vs the USDX Index (DXY),
rendering inflation non-existent and exports challenged. Exceptionally high unemployment (i.e. +25%)
and, even worse for the younger generation in Greece and Spain, concerns about the sustainability of lower
periphery bond rates in the absence of material economic turnaround weighed heavily on economic
sentiments. Without material economic improvement, lenders would begin to require higher yield than
2.4% in Spain and 5.95% in Greece. Despite high unemployment, high debt, and further contraction in
GDP, Greek bonds actually appreciated after the European Central Bank (ECB) announced its stimulus
plans in June. The drop in Greek and other periphery bond yields (yield chasing) keeps us ever mindful of
the implications of QE un-wind in the US.
The market exhibits complacency
Despite risk to Chinese economic growth coupled with already high geopolitical risk made worse by
Russia’s actions in Ukraine, the market was remarkably complacent during the first quarter of 2014.
Weaker risk-on trading, combined with lower volatility in the underlying commodity, drove investors
toward gold and precious metal equities, returning much needed proxy value and perceived earnings
leverage to the sector. The start of Q2 2014 marked four months of QE Taper behind us, and we believed
gold would continue to face headwinds so long as confidence remained relatively healthy. Overall
volatility remained subdued, with short-to-near-term volatility ranging from 7 to 14%, enticing investors
into the space.
7
DEUTSCHE NOOR ISLAMIC FUNDS PLC
DEUTSCHE NOOR PRECIOUS METALS SECURITIES FUND
Investment Manager’s Report for the period ended 30 June 2014 (cont/d)
Review (cont/d)
The good news for Gold
The good news for gold during the first quarter was that “risk-on” trading seemed to be taking a breather as
some investors weighed longer-term risk. Looking back, the notion of economic recovery seemed to be
fully reflected by the end of 2013. Gold rebounded sooner than we thought it might amidst headwinds from
tapering of monetary stimulus. While we agree that there have been positive improvements in both
confidence and performance, the concern was whether or not the sustainability and magnitude of the
economic growth would be sufficient. As the quarter wound down, there was an increasing awareness that
the transition from stimulus to taper might not be so smooth.
Amidst the malaise around Gold during the second quarter, we anticipated that the more commercial
precious metals, like palladium and platinum, would continue to perform well on the back of increased
auto-cat demand (palladium) and diesel demand (platinum), although supply disruption for both metals
continued due to strikes in South Africa and possible disruption for palladium if sanctions were imposed in
Russia. Russia and South Africa combined represent about 80% of the palladium market. Over the near
term, gold and silver should continue to serve as bellwethers of risk appetite. Platinum and Palladium
should likely continue to find support due to the structural deficit in supply resulting in the strikes in South
Africa. Should either vehicle (Palladium) or industrial demand (Platinum) weaken from here, we would
expect to see Platinum Group Metals (PGM) pricing fall from current levels.
Contributors to the performance of the fund: The following Gold and PGM equities contributed positively
to performance: Goldcorp Inc. (8.56% of the fund) up 30.50%, Semafo Inc. (3.62% of the fund) up
79.12%, and Tahoe Resources (4.55% of the fund) up 57.73%.
Detractors to the performance of the fund: Alamos Gold Inc. (1.53% of the fund) down 6.87%, Regis
Resources Ltd. (0.40% of the fund) down 30.12%, and Impala Platinum Holdings Ltd (2.81% of the fund)
down 14.45%.
Outlook
Gold struggles to find direction in short term, but long-term outlook remains positive
We attribute Gold’s positive performance more toward a short squeeze than outright fundamental buying,
maintaining our view that long-term risks remain elevated. Gold continues to struggle to find meaningful
direction as risk-on risk off trading continues. We are still mindful of the QE Unwind, as tapering of QE
can and will have some unintended consequences (as evidenced by EU Periphery debt). Concerns about
yield chasing, QE Taper, and heightened geo-political risk remain.
Gold will continue to be affected by risk-on, risk-off trading as the QE Taper continues. Matters are made
more complex upon consideration of substantially reduced yields in the EU periphery markets like Spain,
Portugal and especially Greece where debt burdens are high, amid high unemployment and economic
contraction. Growth remains modest in the US to anemic in EU and Asia, causing us to be ever mindful of
the debt and the counter-intuitive moves to monetary easing in markets that require stimulus.
Deutsche Investment Management Americas Inc.
July 2014
8
DEUTSCHE NOOR ISLAMIC FUNDS PLC
DEUTSCHE NOOR PRECIOUS METALS SECURITIES FUND
Portfolio of Investments as at 30 June 2014
No. of
Shares
Security
Transferable Securities (90.45%) (December 2013: 95.16%)
Transferable securities admitted to official stock exchange listing or
traded on a regulated market
Equities
Australia (5.94%) (December 2013: 3.51%)
207,774
663,273
453,770
801,619
Independence Group NL
Medusa Mining Ltd
Newcrest Mining Ltd
Regis Resources Ltd
Value USD
Fund %
849,362
1,146,892
4,486,047
1,227,914
7,710,215
0.65
0.88
3.46
0.95
5.94
7,648,105
1,748,328
2,562,723
4,751,703
1,388,770
1,181,773
7,540,668
8,462,186
10,945,995
3,327,353
731,343
3,053,908
5,902,705
3,621,188
6,043,493
403,927
5,534,596
74,848,764
5.90
1.35
1.98
3.66
1.07
0.91
5.81
6.52
8.44
2.56
0.56
2.35
4.55
2.79
4.66
0.31
4.27
57.69
11,089,690
11,089,690
8.55
8.55
2,472,305
2,472,305
1.91
1.91
2,755,037
1,582,134
2,015,899
2.12
1.22
1.55
Canada (57.69%) (December 2013: 58.14%)
200,196
173,453
622,334
1,643,105
101,637
82,639
988,614
148,446
393,136
529,059
48,840
199,456
1,261,408
137,845
231,202
246,626
673,544
Agnico-Eagle Mines Ltd
Alamos Gold Inc
Argonaut Gold Inc
B2Gold Corp
Detour Gold Corp
Dominion Diamond Corp
Eldorado Gold Corp
Franco-Nevada Corp
Goldcorp Inc
New Gold Inc
Osisko Mining Corp
Pan American Silver Corp
SEMAFO Inc
Silver Wheaton Corp
Tahoe Resources Inc
Timmins Gold Corp
Yamaha Gold Inc
Jersey, Channel Islands (8.55%) (December 2013: 9.86%)
133,655
Randgold Resources Ltd
Peru (1.91%) (December 2013: 1.88%)
209,340
Minas Buenaventura SA
Russian Federation Nil (December 2013: 3.26%)
South Africa (5.95%) (December 2013: 5.38%)
63,621
Anglo American Platinum Ltd
539,132
Harmony Gold Mining Ltd
200,227
Impala Platinum Holdings Ltd
9
DEUTSCHE NOOR ISLAMIC FUNDS PLC
DEUTSCHE NOOR PRECIOUS METALS SECURITIES FUND
Portfolio of Investments as at 30 June 2014 cont/d
No. of
Shares
Security
Transferable Securities (90.45%) (December 2013: 95.16%) cont/d
South Africa (5.95%) (December 2013: 5.38%) cont/d
510,014
Sibanye Gold Ltd
Value USD
Fund %
1,368,398
7,721,468
1.06
5.95
4,453,316
3,835,456
3,363,864
11,652,636
3.43
2.96
2.59
8.98
1,856,451
1.43
Total Transferable Securities
1,856,451
117,351,529
1.43
90.45
Portfolio of Investments (December 2013: 95.16%)
Other Net Assets (December 2013: 4.84%)
Net Assets attributable to redeemable participating shareholders
117,351,529
12,395,853
129,747,382
90.45
9.55
100.00
Fair value to Dealing Net Asset Value Reconciliation
31-Dec-13
USD
125,060,441
(1,430,297)
123,630,144
30-Jun-13
USD
126,287,447
(6,788,309)
119,499,138
United Kingdom (8.98%) (December 2013: 9.13%)
138,420
BHP Billiton Plc
258,471
Fresnillo Plc
63,555
Rio Tinto Plc
United States (1.43%) (December 2013: 4.00%)
105,841
Stillwater Mining Co
Net assets at fair value per financial statements
NAV adjustment*
Net asset value per dealing NAV
30-Jun-14
USD
129,747,382
(1,325,040)
128,422,342
*The NAV adjustment represents the difference between the 10 a.m. net asset value at mid-market prices
(dealing prices) as set out in the Prospectus and the close of business net asset value at bid prices per the
financial statements (as required by FRS 26).
All investments are classified as held for trading in accordance with FRS 26 “Financial Instrument
measurement”.
Analysis of Total Assets
Transferable securities admitted to an official stock
exchange
Current assets
Total Assets
30-Jun-14
%
31-Dec-13
%
30-Jun-13
%
87.27
12.73
100.00
94.65
5.35
100.00
81.73
18.27
100.00
10
DEUTSCHE NOOR ISLAMIC FUNDS PLC
DEUTSCHE NOOR PRECIOUS METALS SECURITIES FUND
Portfolio of Investments as at 30 June 2014 cont/d
30-Jun-2014
Net asset value attributable to redeemable
participating shareholders
Number of redeemable participating shares in issue
Net asset value per redeemable participating share
Net asset value attributable to redeemable
participating shareholders
Number of redeemable participating shares in issue
Net asset value per redeemable participating share
Net asset value attributable to redeemable
participating shareholders
Number of redeemable participating shares in issue
Net asset value per redeemable participating share
Class A Retail
USD
30-Jun-2014
Class B
Institutional
USD
30-Jun-2014
Class J Retail
SGD
29,659,292
45,901,394
0.6462
93,245,093
131,144,453
0.7110
6,888,693
14,185,946
0.4856
31-Dec-2013
31-Dec-2013
Class A Retail
USD
31-Dec-2013
Class B
Institutional
USD
Class J Retail
SGD
20,797,951
38,416,004
0.5414
99,061,320
166,911,784
0.5935
4,768,457
11,569,130
0.4122
30-Jun-2013
30-Jun-2013
Class A Retail
USD
30-Jun-2013
Class B
Institutional
USD
Class J Retail
SGD
20,035,360
37,747,091
0.5308
95,208,068
164,253,939
0.5796
5,373,472
13,317,077
0.4035
11
DEUTSCHE NOOR ISLAMIC FUNDS PLC
DEUTSCHE NOOR PRECIOUS METALS SECURITIES FUND
Portfolio Changes for the period ended 30 June 2014
Major Purchases
Randgold Resources Ltd
Franco-Nevada Corp
AuRico Gold Inc
Goldcorp Inc
New Gold Inc
Yamana Gold Inc
Agnico-Eagle Mines Ltd
Anglo American Platinum Ltd
Eldorado Gold Corp
Silver Wheaton Corp
B2Gold Corp
Regis Resources Ltd
Tahoe Resources Inc
Stillwater Mining Co
Newmont Mining Corp
SEMAFO Inc
Newcrest Mining Ltd
BHP Billiton Plc
Fresnillo Plc
Sibanye Gold Ltd
Cost
USD
6,108,349
6,070,717
4,269,457
3,838,082
2,870,114
2,398,323
2,295,240
1,995,220
1,991,700
1,974,207
1,959,076
1,884,152
1,880,124
1,851,966
1,808,725
1,623,468
1,554,899
1,545,147
1,449,884
1,385,663
Major Sales
Newmont Mining Corp
AuRico Gold Inc
Kinross Gold Corp
Goldcorp Inc
Polyus Gold International Ltd
Yamaha Gold Inc
Franco-Nevada Corp
Silver Wheaton Corp
Agnico-Eagle Mines Ltd
MMC Norilsk Nickel OJSC ADR
Randgold Resources Ltd ADR
Tahoe Resources Inc
Impala Platinum Holdings Ltd
Randgold Resources Ltd
Eldorado Gold Corp
Alamos Gold Inc
BHP Billiton Plc
Osisko Mining Corp
SEMAFO Inc
Newcrest Mining Ltd
Proceeds
USD
9,669,987
7,880,025
7,640,405
5,547,961
4,630,934
4,625,506
4,582,898
4,533,899
4,199,010
4,038,297
3,857,139
3,177,658
3,109,286
3,106,136
2,508,242
2,370,063
1,758,371
1,747,304
1,657,790
1,629,464
12
DEUTCHE NOOR ISLAMIC FUNDS PLC
Profit and Loss Account for the period ending 30 June 2014
Income
Net gain/(loss) on financial assets at fair value
through profit or loss
Other losses
Other income
Expenses
Expenses
Operating income/(losses) before withholding tax
Withholding tax
Net increase/(decrease) in net assets
attributable to redeemable participating
shareholders resulting from operations
Six months
ended
30 June 2014
USD
Year ended
31 December 2013
USD
Six months
ended
30 June 2013
USD
24,513,181
(147,117)
672,877
25,038,941
(94,544,154)
(241,933)
2,760,253
(92,025,834)
(92,705,473)
(247,902)
1,687,990
(91,265,385)
(794,692)
24,244,249
(1,787,633)
(93,813,467)
(944,188)
(92,209,573)
(121,583)
(543,867)
(341,251)
24,122,666
(94,357,334)
(92,550,824)
There were no recognised gains or losses other than those set out in the Profit and Loss Account. Income and results
arose solely from continuing operations.
The accompanying notes form an integral part of these financial statements.
13
DEUTCHE NOOR ISLAMIC FUNDS PLC
Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders for the
period ending 30 June 2014
Net assets attributable to redeemable
participating shareholders at the start of the
period
Six months
ended
30 June 2014
USD
Year ended
31 December 2013
USD
Six months
ended
30 June 2013
USD
125,060,441
195,692,039
195,692,039
63,966,574
(83,402,299)
(19,435,725)
93,128,887
(69,403,151)
23,725,736
49,950,693
(26,804,461)
23,146,232
24,122,666
(94,357,334)
(92,550,824)
129,747,382
125,060,441
126,287,447
Movement due to purchases and sales of
shares
Amounts received on creation of shares
Less: Amounts paid on cancellation of shares
Net increase/(decrease) in net assets attributable
to redeemable participating shareholders resulting
from operations
Net assets attributable to redeemable
participating shareholders at the end of the
period
The accompanying notes form an integral part of these financial statements.
14
DEUTCHE NOOR ISLAMIC FUNDS PLC
Balance Sheet as at 30 June 2014
Current Assets
Cash and cash equivalents
Financial assets at fair value through profit or loss:
Transferable securities held for trading
Receivables
Total Assets
Current Liabilities
Payables
Total Liabilities
Net assets attributable to redeemable
participating shareholders
Six months
ended
30 June 2014
USD
Year ended
31 December 2013
USD
Six months
ended
30 June 2013
USD
1,269,979
3,374,872
24,049,967
117,351,529
15,854,646
134,476,154
119,010,364
3,352,183
125,737,419
115,547,370
1,786,501
141,383,838
(4,728,772)
(4,728,772)
(676,978)
(676,978)
(15,096,391)
(15,096,391)
129,747,382
125,060,441
126,287,447
The accompanying notes form an integral part of these financial statements.
15
DEUTCHE NOOR ISLAMIC FUNDS PLC
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2014
1. Basis of preparation and accounting
These condensed interim financial statements are prepared in accordance with the Financial Reporting Council
(FRC) Statement: Half Yearly Financial Reports and with the Companies Acts, 1963 to 2013 and all Regulations
to be construed as one with those Acts and the Regulations. These condensed interim financial statements should
be read in conjunction with the annual financial statements for the year ended 31 December 2013, which have
been prepared in accordance with accounting standards generally accepted in Ireland and with Irish Statute
comprising the Companies Acts 1963 to 2013. Accounting standards generally accepted in Ireland are those
published by the Institute of Chartered Accountants in Ireland and issued by the Financial Reporting Council.
The financial statements are prepared in US Dollars.
The Company has availed of the exemption available to open-ended investment funds under Financial Reporting
Standard No. 1 (Revised) ‘Cash Flow Statements’ not to prepare a cash flow statement.
Estimates, judgments and assumptions
The estimates, judgments and assumptions applied in preparing these condensed interim financial statements are
consistent with those applied and disclosed in the Company’s most recent annual audited financial statements
for the year ended 31 December 2013.
2. Significant accounting policies
The accounting policies applied during the period under review are consistent with those disclosed in the Fund’s
annual audited financial statements as at and for the year ended 31 December 2013.
3. Taxation
The Company is an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997.
Therefore, the Company will not be liable to Irish tax in respect of its income and gains, other than on the
occurrence of a chargeable event. A chargeable event includes any distribution payments to shareholders or any
encashment, redemption or transfer of shares or the ending period for which the investment was held.
Generally a chargeable event arises on any distribution, redemption, repurchase, cancellation, transfer of shares
or the ending of a ‘Relevant Period’. A ‘Relevant Period’ is an eight year period beginning with the acquisition
of the shares by the Shareholder and each subsequent period of eight years beginning immediately after the
preceding Relevant Period.
A gain on a chargeable event does not arise in respect of:
a)
a shareholder who is not an Irish resident and not ordinarily resident in Ireland at the time of the
chargeable event, provided the necessary signed statutory declarations are held by the Company;
b)
certain exempted Irish tax resident Investors who have provided the Company with the necessary signed
statutory declarations;
c)
an exchange of shares arising on a qualifying amalgamation or reconstruction of the Company with
another fund;
d)
any transactions in relation to shares held in a recognised clearing system as designated by order of the
Revenue Commissioners of Ireland;
e)
certain exchanges of shares between spouses and former spouses on the occasion of judicial separation
and/or divorce;
f)
an exchange by a Shareholder, effected by way of an arm’s length bargain where no payment is made to
the Shareholder of Shares in the Company for other Shares in the Company.
16
DEUTCHE NOOR ISLAMIC FUNDS PLC
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2014 CONT/D
3. Taxation cont/d
Capital gains, dividends and interest (if any) received on investment made by the Company may be subject to
withholding taxes imposed by the country from which the investment income/gains are received and such taxes
may not be recoverable by the Company or its shareholders.
In the absence of an appropriate declaration, the Company will be liable for Irish tax on the occurrence of a
chargeable event, and the Company reserves its right to withhold such taxes from the relevant shareholders.
4. Share Classes
Management Shares
The issued share capital of the Company is €2 divided into 2 Management shares of €1.00 each of which has
been fully paid up. The management shares are held by Deutsche Asset Management (Asia) Limited and
Deutsche Bank London AG.
Management Shares do not entitle the holders to any dividend and on winding-up entitle the holder to receive
the amount paid up thereon but not otherwise to participate in the assets of the Company. In these financial
statements, the Management shares do not form part of the Shareholders’ funds. They are thus disclosed in the
financial statements by way of this note only.
Participating Shares
The objectives of the Deutsche Noor Precious Metals Securities Fund are outlined in the Sales Prospectus dated
25 April 2014. The Sub-Funds strive to invest the subscriptions of redeemable shares in investments that meet
the Sub-Fund’s investment objectives while maintaining sufficient liquidity to meet shareholder redemptions.
The participating shares are classified as a liability in accordance with FRS 25 Financial instruments: Disclosure
and presentation as they are redeemable at the request of the holders. The authorised share capital of the
Company is represented by 500,000,000,000 shares of no par value and €300,000 divided into 300,000
redeemable Management Shares of €1.00 each. As at period end 30 June 2014, the value of the Company’s
share capital, equal to its net asset value was US$ 129,747,382 which is in excess of the required minimum
capital of €300,000.
The participating shares are freely transferable and entitle the holders to participate equally in the profits and
income of the relevant sub-fund and its assets upon liquidation. The participating shares, which are of no par
value and must be fully paid up on issue, carry no preferential or pre-emptive rights and entitle the holders to
one vote each at all meetings of the Shareholders. All Participating shares of the sub-fund will rank pari passu.
They may be redeemed by the Company at the request of the Shareholder.
One or more Share classes can be offered in these Sub-Funds (multi-share-class construction). The Share classes
may differ with respect to a number of different features, e.g. front-end load, investment management fees,
allocation of earnings, currency, or with respect to the type of investor targeted as outlined in the Sales
Prospectus. At the period end, the Deutsche Noor Precious Metals Fund held 3 classes of shares:
Class A - Retail
Class B - Institutional
Class J - Retail
17
DEUTCHE NOOR ISLAMIC FUNDS PLC
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2014 CONT/D
4. Share Classes cont/d
The movement of shares during the period ended 30 June 2014 was as follows:
Deutsche Noor Precious Metals Securities Fund
Class A
Retail
Shares
Shares at 1 January 2014
38,416,004
Shares issued during the period
52,181,104
Shares redeemed during the period
(44,695,714)
Shares at 30 June 2014
45,901,394
Subscriptions during the period
Redemptions during the period
USD
32,289,347
(27,461,136)
Class B
Institutional
Shares
166,911,784
42,950,369
(78,717,700)
131,144,453
USD
28,421,103
(53,572,824)
Class J
Retail
Shares
11,569,130
8,960,615
(6,343,799)
14,185,946
USD
3,256,124
(2,368,339)
Total
USD
63,966,574
(83,402,299)
The movement of shares during the year ended 31 December 2013 was as follows:
Deutsche Noor Precious Metals Securities Fund
Class A
Retail
Shares
Shares at 1 January 2013
34,791,301
Shares issued during the year
27,164,665
Shares redeemed during the year
(23,539,962)
Shares at 31 December 2013
38,416,004
Class B
Institutional
Shares
141,245,194
94,654,929
(68,988,339)
166,911,784
Class J
Retail
Shares
11,310,997
13,319,073
(13,060,940)
11,569,130
USD
17,076,173
(15,022,667)
USD
70,912,145
(49,302,557)
USD
5,140,569
(5,077,927)
Subscriptions during the year
Redemptions during the year
Total
USD
93,128,887
(69,403,151)
The movement of shares during the period ended 30 June 2013 was as follows:
Deutsche Noor Precious Metals Securities Fund
Class A
Retail
Shares
Shares at 1 January 2013
34,791,301
Shares issued during the period
7,967,065
Shares redeemed during the period
(5,011,275)
Shares at 30 June 2013
37,747,091
Class B
Institutional
Shares
141,245,194
49,304,120
(26,295,375)
164,253,939
Class J
Retail
Shares
11,310,997
6,484,694
(4,478,614)
13,317,077
USD
5,718,589
(4,066,493)
USD
41,693,560
(20,804,810)
USD
2,538,544
(1,933,158)
Subscriptions during the period
Redemptions during the period
Total
USD
49,950,693
(26,804,461)
18
DEUTCHE NOOR ISLAMIC FUNDS PLC
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2014 CONT/D
5. Exchange Rates
The following exchange rates have been used when converting foreign currency holdings into the base currency
of the Fund, USD.
Australian Dollar
Canadian Dollar
Danish Krone
Euro
Hong Kong Dollar
Mexican Peso
Pound Sterling
Singapore Dollar
South African Rand
30 June 2014
1.064113
1.068500
5.459700
0.732252
7.750750
12.992750
0.587303
1.248450
10.614750
31 December 2013
1.121265
1.064400
5.418000
0.726322
7.754000
13.084250
0.604522
1.264550
10.514150
30 June 2013
1.081081
1.047450
5.715200
0.766284
7.756800
12.997900
0.655587
1.262650
9.986500
6. Soft commission arrangements
The Company did not enter into any soft commission arrangements in the period under review or in the prior
year or period.
7. Significant Agreements
Custodian
The Company has appointed State Street Custodial Services (Ireland) Limited as Custodian of its assets pursuant
to an agreement dated 29 September, 2006 (the “Custodian Agreement”). The Custodian provides safe custody
for the Company’s assets.
The Custodian may charge up to 0.02% of the Net Asset Value of the Sub-Funds. The Custodian intends that
State Street Bank and Trust Company, London will act as the global sub-custodian for the sub-funds and will be
responsible for the settlement of securities which the Investment Manager decides to purchase or sell for the
account of the Company.
The Custodian earned a fee of USD 20,197 during the period (year ended 31 December 2013: USD 41,001 and
period ended 30 June 2013: USD 20,835) of which USD Nil was outstanding at the period end (31 December
2013: USD 7,533 and 30 June 2013: USD 7,031).
Administrator
The Company has entered into an Administration Agreement with State Street Fund Services (Ireland) Limited
dated 29 September, 2006 (the “Administration Agreement”) to provide administration, registrar and transfer
agency services to the Company. The Administrator will also act as secretary to the Company.
The Administrator may charge up to 0.09% of the Net Asset Value of the sub-funds.
The Administrator earned a fee of USD 101,015 during the period (year ended 31 December 2013: USD
215,512 and period ended 30 June 2013: USD 115,549) of which USD 24,329 was outstanding at the period end
(31 December 2013: USD 40,149 and 30 June 2013: USD 44,803).
19
DEUTCHE NOOR ISLAMIC FUNDS PLC
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2014 CONT/D
7. Significant Agreements cont/d
Sharia Advisor
The Main Investment Manager and the Company have entered into a Sharia Advisory Agreement with the
Sharia Advisor dated 29 October 2008, (the “Sharia Advisory Agreement”). The Sharia Advisor is to provide
the Sharia eligibility criteria for the Company's and the Sub-Fund’s investment policy and will undertake a
quarterly audit of the portfolios of the sub-funds. The Sharia Advisor will have no discretionary investment
powers over the assets of the Company.
The Sharia Advisory Agreement may be terminated by any of the parties on 90 days written notice to the other
parties, or as otherwise set out in the Sharia Advisory agreement. The Sharia Advisory Agreement contains
indemnities in favour of the Company and / or the Main Investment Manager (as the case may be) for breach of
the Sharia Advisory Agreement.
The Sharia Advisor earned a fee of USD 13,885 during the period (year ended 31 December 2013: USD 24,993
and period ended 30 June 2013: USD 13,731) of which USD 6,885 was outstanding at the period end (31
December 2013: USD 7,000 and 30 June 2013: USD 2,738).
8. Transaction with Related Parties
In accordance with FRS 8 ‘Related Party Disclosures’, the following are the related parties and related party
transactions during the period.
Transactions with entities with significant influence:
Investment Manager
The Company has appointed Deutsche Asset Management (Asia) Limited as Main Investment Manager.
Deutsche Asset Management (Asia) Limited is a public limited company under Singapore law and a subsidiary
of Deutsche Asia Pacific Holdings Pte Ltd. The Main Investment Manager holds a Capital Markets Services
Licence for fund management and dealing in securities, issued by the Monetary Authority of Singapore.
For the sub-fund Deutsche Noor Precious Metals Securities Fund, the Main Investment Manager has entered
into an agreement with Deutsche Investment Management Americas Inc. with effect from 5 July 2013 to act as
Investment Manager to the Sub-Fund. Prior to 5 July 2013, DWS Investment GmbH was the appointed
Investment Manager. Deutsche Investment Management Americas Inc. is a company established under the laws
of the United States of America, and a subsidiary of Deutsche Bank A.G. In this respect, fund management shall
encompass day-to-day implementation of the investment policy and direct investment decisions.
The Main Investment Manager charges fees for the share classes at the following rates:
Class A: 1.50% of the Net Asset Value attributable to the respective class.
Class B: 0.75% of the Net Asset Value attributable to the respective class.
Class J: 1.50% of the Net Asset Value attributable to the respective class.
The Company has appointed the Main Investment Manager by agreement dated 29 September 2006 as the
Distributor of the Company. The Investment Manager’s fees are paid directly by the Company to the Investment
Manager.
The Main Investment Manager earned a management fee of USD 581,220 during the period (year ended 31
December 2013: USD 1,345,619 and period ended 30 June 2013: USD 729,505) of which USD 283,024 was
outstanding at the period end (31 December 2013: USD 89,183 and 30 June 2013: USD 199,384).
20
DEUTCHE NOOR ISLAMIC FUNDS PLC
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2014 CONT/D
8. Transaction with Related Parties cont/d
Transactions with management personnel:
Directors
Mr. Michael Whelan is an employee of Deutsche Bank and Ms. Dorothee Wetzel is an employee of DWS
Investments, both related parties.
The total Directors’ fees earned for the period was USD 39,243 (year ended 31 December 2013: USD 79,136
and period ended 30 June 2013: USD 38,809) of which USD 67,091 was outstanding at the period end (31
December 2013: USD 59,275 and 30 June 2013: USD 18,948).
Other Related Party Transactions
Deutsche Asset Management (Asia) Ltd and Deutsche Bank AG London Branch are investors of the Company.
9. Dealings with Connected Parties
The Central Bank of Ireland UCITS Notice 14.5 – ‘Dealings by promoter, manager, trustee, investment adviser
and group companies’ states that any transaction carried out with a UCITS by a promoter, manager, trustee,
investment adviser and/or associated or group companies of these (“connected parties”) must be carried out as if
negotiated at arm’s length. Transactions must be in the best interests of the shareholders.
The Board of Directors is satisfied that there are arrangements (evidenced by written procedures) in place, to
ensure that the obligations set out in UCITS 14.5 are applied to all transactions with connected parties; and the
Board is satisfied that transactions with connected parties entered into during the period complied with the
obligations set out in this paragraph.
10. Important Events during the period
A revised prospectus was issued on 25th of April 2014. The changes to the Prospectus included the following
significant changes:
Change in name of sub-fund from DWS Noor Precious Metals Securities Fund to Deutsche Noor Precious
Metals Securities Fund.
The Company received approval from the Irish Central Bank to launch a new sub-fund on 25 April 2014 namely
Deutsche Noor Global Equity Income Fund. As at period end 30 June 2014, this new sub-fund had not launched.
There have been no other significant events affecting the Company during the period.
11. Important Events after period end
There have been no significant events affecting the Company since the period end.
12. Approval of financial statements
The financial statements were approved by the Directors on 21 August 2014.
21
DEUTCHE NOOR ISLAMIC FUNDS PLC
OTHER INFORMATION AND CONTACTS
Directors
Mr. Paul McNaughton (Irish)*
Mr. Niall O’Carroll (Irish)*
Mr. Michael Whelan (Irish)
Ms. Dorothee Wetzel (German)
Promoter, Main Investment Manager and Main Distributor
Deutsche Asset Management (Asia) Limited
One Raffles Quay,
20-00 South Tower
Singapore 048583
Investment Manager
Deutsche Investment Management Americas Inc.
345 Park Avenue,
New York, NY 10154 – 0004,
United States
Registered Office
78 Sir John Rogerson’s Quay
Dublin 2
Ireland
Custodian
State Street Custodial Services (Ireland) Limited
78 Sir John Rogerson’s Quay
Dublin 2
Ireland
Administrator and Secretary
State Street Fund Services (Ireland) Limited
78 Sir John Rogerson’s Quay
Dublin 2
Ireland
Independent Auditor
KPMG
Chartered Accountants
1 Harbourmaster Place
International Financial Services Centre
Dublin 1
Ireland
*Independent Directors
22
DEUTCHE NOOR ISLAMIC FUNDS PLC
OTHER INFORMATION AND CONTACTS CONT/D
Legal Advisors
Dillon Eustace,
Solicitors
33 Sir John Rogerson’s Quay
Dublin 2
Sharia Advisor
Khalij Islamic (BVI) Limited
Trident Chambers
PO Box 146
Road Town
Tortola
British Virgin Islands
23
DEUTCHE NOOR ISLAMIC FUNDS PLC
APPENDIX
Total Expense Ratio and Portfolio Turnover Ratio
For the period ended 30 June 2014
The average Total Expense Ratio table shows the actual operation expenses incurred by the Sub-Fund during the
period ended 30 June 2014 expressed as a percentage of the average (avg.) Net Asset Value (NAV) of that SubFund for the corresponding period. The Total Expense Ratio is annualised in the table below.
The management fee is the annualised management fees expressed as a percentage of the NAV at dealing prices.
Management
Fees
%
Total Expense %
Portfolio
of avg. NAV of Turnover Ratio
Fund
%
(3.88%)
Deutsche Noor Precious Metals Securities
Class A Retail
1.50%
1.91%
Class B Institutional
0.75%
1.15%
Class J Retail
1.50%
1.93%
24

Download Report