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Published by JNCreative, 2019-01-18 13:49:58

JN Mutual Funds_Annual Report 2016-18_A

JN Mutual Funds_Annual Report 2016-18_A

Contents 1
3
Profile of Directors 4
Directors’ Report 6
Funds at a Glance 18
Investment Manager’s Review 19
Summary Financial Statements 20
- Independent Auditors’ Report on the Summary Financial Statements 23
- Statements of Financial Position 24
- Statements of Cash Flows
- Notes to the Financial Statements

Profile of Directors

Peter Morris, MBA, BSc (Hons) He serves on the Finance, Compensation and
Chairman Proxy Committees of The Jamaica National
Group, the Finance Committee of JN Financial
Peter Morris was appointed chairman of the Group, and the Finance and Loans Committees
board of JNFM Mutual Funds Limited on February of JN Bank.
13, 2015. Mr. Morris is a Director of JN Fund
Managers Limited, the investment manager and Mr. Morris has a Bachelor’s Degree in Economics
administrator of JNFM Mutual Funds Limited. from The University of the West Indies and an
MBA in Finance from the Columbia University
He previously joined the Board of the former Graduate School of Business.
Jamaica National Building Society (JNBS) in 1993.
He was appointed to the Boards of The Jamaica He has more than 25 years of business experience
National Group Limited, JN Financial Group at the management and Board level in Jamaica,
Limited and JN Bank Limited in February 2017. the United Kingdom and the United States.

He is Chairman of JN Life Insurance Company
Limited, and also a Director of JN General
Insurance Company Limited.

Hon. Earl Jarrett, OJ, CD, JP, Hon. LL.D, A Chartered Accountant, Mr Jarrett completed BSc
FCA, MSc (Honours) and Masters’ Degrees in Accounting at
Chief Executive Officer The University of the West Indies. He is Chairman
The Jamaica National Group Limited of the Jamaica Cancer Society, Jamaican Diaspora
Foundation and Mona GeoInformatics Institute
Earl Jarrett became a member of the board of and serves on the boards of several external
JNFM Mutual Funds Limited on February 13, organisations.
2015.
In 2008, Mr Jarrett received the Order of
Mr. Jarrett was appointed General Manager of Distinction, in the rank of Commander (CD), by
the former Jamaica National Building Society the Government of Jamaica for service to the
in October 1999. With the restructuring of financial sector and the Pelican Award from The
the Society on February 1, 2017, Mr Jarrett was University of the West Indies Alumni, Florida
appointed Chief Executive Officer of the new Chapter, for outstanding work in business
mutual holding company, The Jamaica National development among the Jamaican Diaspora in
Group Limited. the USA.

He is Chairman of the Jamaica Automobile He was again recognised by the Government
Association (Services) and the overseas subsidiary of Jamaica in 2018 with his appointment to the
companies of JN Money Services Limited. He is a Order of Jamaica (OJ), the nation’s fourth highest
member of the Board of JN Fund Managers and honour, for his exceptional contribution to the
all the other local and overseas subsidiaries of banking and financial sectors, public service and
The Jamaica National Group Limited. volunteerism.

JN Fund Managers is the investment manager
and administrator of JNFM Mutual Funds Limited

1

Allan Lewis based Consolidated Foods Limited that operates
Managing Director supermarkets in St. Lucia and St. Vincent; and is
JNFM Mutual Funds Limited Chairman of the Jamaica Racing Commission/
Betting Gaming & Lotteries Commission Pension
Allan Lewis became a member of the board of Fund.
JNFM Mutual Funds Limited on September 12,
2018. Allan is an Associate of the Society of Actuaries.
He also achieved a BSc (Hons), Actuarial Science
He joined JN Fund Managers Limited as degree from Western University, Ontario, Canada,
Managing Director in October 2016. JN Fund as well as an MBA, Actuarial Science and the
Managers Limited is the investment manager Ed.M., Urban Education degrees from Temple
and administrator of JNFM Mutual Funds Limited. University, Philadelphia, USA. He received USAID
and Commonwealth scholarships to pursue his
Prior to joining JN Fund Managers, Allan worked graduate studies.
with several local financial institutions, where he
gained vast experience in asset management; Allan is deeply involved in his community. He
enterprise financial risk management, mergers currently serves as Chairman of the Operations
and acquisitions, as well as wealth management, Committee of the Professional Football
money transfer, pension funds management and Association of Jamaica, is a member of the
administration services. Kiwanis Club of North St. Andrew and continues
to mentor final year students at The University of
In addition to serving as a director of JN Fund the West Indies.
Managers Limited; he is a director of the St. Lucia

Caryl Fenton FCA (Jamaica), FCCA (UK) Within KPMG, her other responsibilities included
being Head of Audit for the Jamaican member
Caryl Fenton became a member of the board firm and KPMG CARICOM. This role involved
of JNFM Mutual Funds Limited on February 13, oversight of quality control and training.
2015.
Ms. Fenton chaired the Accounting Standards
She is a Chartered Accountant, having retired as Committee of the Institute of Chartered
an audit partner on September 30, 2011, from the Accountants of Jamaica for over eight years and
firm KPMG Chartered Accountants. represented that body on the Council of the
Jamaica Stock Exchange.
During her 30 years at KPMG, she held engagement
partner responsibility for a large portfolio of She is also Chairman of Genesis Academy, a post
KPMG clients and the human resources area of she has held since June 2014, at the east Kingston
that firm’s administration. Audits included some institution for students with learning challenges.
of Jamaica’s largest general insurance companies Genesis Academy offers academic and vocational
and two life insurance companies. skills training for students between the ages of
12 to 21 years in the main school, and for adults
between 18 to 25 years.

2

Directors’ Report

Dear Shareholders:
We are pleased to present this inaugural annual report to all shareholders of JNFM Mutual Funds
Limited. This report covers the period from December 15, 2016 to March 31, 2018, for all share
classes of the Local Money Market Fund, Global Money Market Fund, Global Fixed Income Fund,
Global Diversified Income Fund and Global Equity Fund. The Global US Dollar Fixed Income Fund
is for the period March 5 - March 31, 2018.

Background
JNFM Mutual Funds Limited is an open-ended umbrella-type mutual fund company with segregated
liability between sub-funds. The company was incorporated under the laws of Jamaica on February
13, 2015. It was registered with the Financial Services Commission (FSC) as a Collective Investment
Scheme (CIS) on August 1, 2015 and began operating December 15, 2016. JN Fund Managers
Limited is contracted as the investment manager and administrator while JCSD Trustee Services is
the custodian for the company. JNFM Mutual Funds Limited consists of the following sub-funds:

JNFM MUTUAL FUNDS LIMITED

NET ASSET VALUE

AS AT MARCH 31, 2018

Variance Variance

31-Mar-18 31-Mar-17 Prior Year ($) Prior Year (%)

SUB-FUNDS/PORTFOLIOS J$ NAVPS J$ NAVPS
Global Diversified Income Fund
Global Equity Fund 72,883,342 11.60 15,283,799 10.13 57,599,543 377%
Global Fixed Income Fund
Global Money Market Fund 9999,,115324,914100 11.52 9,022,465 10.12 90,112,475 999%
Global US Dollar Fixed Income Fund 503,677,873 10.84 19,038,458 10.13 484,639,415 2546%
Local Money Market Fund
860,146,871 10.02 586,569,485 10.00 273,577,386 47%

136,383,929 9.94 N/A N/A N/A N/A

1,362,523,340 10.13 374,905,617 10.00 987,617,723 263%

NAVPS - Net Asset Value Per Share 3,30,03344,7,76570,,42695 1,004,819,825 1,893,546,542 188%

Note: The JN Mutual Funds Global US Dollar Fixed Income Fund was launched March 5, 2018

As at March 31, 2018, total net assets for JNFM Mutual Funds Limited were J$3.03 billion.

Industry Overview
As at March 31, 2018, the combined funds under management (FUM) for all CIS registered to conduct
business in Jamaica amounted to J$249.2B. Apart from JN Fund Managers, there were seven other
securities dealers that marketed collective investment schemes to the Jamaican public.

3

Funds at a Glance

The Local Money Market Fund
The investment objective of this Fund is to preserve capital while providing Jamaican dollar money
market returns. To achieve this objective, this Fund invests in local and global money market
instruments denominated in JMD, USD and other major currencies. These instruments include short
term Treasury Bills, Certificates of Deposit and Commercial Paper. Initially, the Fund was implemented
as a fixed Net Asset Value (NAV) fund with quarterly distributions, but this was changed to the present
structure effective January 2, 2018.

Fund Performance
For the period under review, the Fund delivered a total return after fees of 6.24%. This return
compared favourably with the benchmark -Average 30-day BOJ CD- return of 5.59% for the same
period. The Manager has indicated that the outperformance was driven mainly by declining interest
rates which resulted in the appreciation in the price of short term fixed rate securities.

The Global Money Market Fund
The investment objective of this Fund is to preserve capital while providing US dollar money market
returns. To achieve this objective, the Fund invests in money market instruments denominated in
US Dollars and other major currencies. These instruments include Treasury Bills, Bank of Jamaica
Certificates of Deposit, Government of Jamaica debt instruments and Repurchase Agreements.
Initially, the Fund was implemented as a fixed NAV Fund with quarterly distributions, but this was
changed to the present structure effective January 2, 2018.

Fund Performance
For the period under review, the Fund delivered a total return after fees of 1.50%. This return
compared unfavourably with the benchmark - Private Sector Organisation of Jamaica (PSOJ)_30D
US Dollar - return of 2.23%. The Manager has indicated that the underperformance was due in
part to the scarcity of short term US Dollar instruments, declining interest rates for local US dollar
repurchase agreements and the level of fees relative to local US Dollar short term interest rates.

The Global Fixed Income Fund
The investment objective of this Fund is to achieve an attractive total return through capital
appreciation and income growth. To achieve this objective, the Fund invests in local and regional
sovereign debt instruments, local and international corporate bonds and repurchase agreements.
Bonds and debt instruments will be denominated in JM Dollars, US Dollars and possibly, if the
opportunity arises, other major currencies. The Manager seeks to identify instruments which provide
an attractive yield with a fair margin of safety. Securities may include non-investment grade securities
as well as securities which are not rated by any ratings agency.

Fund Performance
For the period under review, the Fund delivered a total return after fees of 7.82%. This return
compared unfavourably with the benchmark - PSOJ_5 YR J$ - return of 9.07%. The Manager has
indicated that the underperformance can be attributed to the declining interest rate environment
and the rapid growth of the Fund.

4

The Global US Dollar Fixed Income Fund
The Global US Dollar Fixed Income Fund, was introduced on March 5, 2018, in response to feedback
from our clients who indicated their desire for medium risk investments in a mutual fund to be
denominated in US Dollars. The investment objective of this Fund is to achieve an attractive total
return through capital appreciation and income growth. To meet this objective, the Fund invests in
local, regional and international sovereign debt, local and international corporate bonds, US Treasury
Bills and repurchase agreements. Bonds and debt instruments will be denominated primarily in
US Dollars, but the Manager may invest in securities denominated in Jamaican Dollar and other
currencies. Although investment grade securities will dominate, the Manager may consider non-
investment grade securities as well as securities which are not rated by any rating agency.

Fund Performance
For the period under review, the Fund delivered a total return -0.59% for the twenty-five (25) days
ended March 31, 2018. This return compared unfavourably with the benchmark - JSE Global Bond
Index – return of 1.53%. The Manager has indicated that the primary reason for the underperformance
was as a result of the differences in the bid and offer prices when the initial investments were secured.

The Global Diversified Income Fund
The objective of this Fund is to achieve long term investment growth through exposure to a diversified
range of asset classes. The Fund invests in local and global equities, bonds, real estate and money
market instruments denominated in Jamaica Dollars (JMD), United States Dollars (USD) and other
major currencies, where the opportunity arises.

Fund Performance
For the period under review, the Fund delivered a total return after fees of 15.41%. This return
compared favourably with the benchmark – Inflation – return of 5.22%. The Manager has indicated
that the return was positively affected by its equity holdings.

The Global Equity Fund
The investment objective of this Fund is to achieve long term capital growth and risk diversification. To
achieve its objective the Fund invests in local and regional companies with above average earnings
and/or growth potential with a small exposure to medium term debt instruments. Instruments will
be denominated in Jamaican Dollar, US Dollar and if the opportunity arises, other major currencies.

Fund Performance
For the period under review, the Fund achieved a total return after fees of 15.06%. This return
compared unfavourably with the benchmark – 80% JSE Main Index 20% SPX return of 45.61%. The
Manager has indicated that the underperformance was primarily attributed to the under allocation
of certain stocks listed on the Jamaica Stock Exchange, in addition to the allocation to emerging
market equities.

___________________________
Peter Morris, Chairman
JNFM Mutual Funds Limited

5

Investment Manager’s Review

LTohicsaalnMnuoanlereypMoratrfkoer tthFeuLnodcaIl MnvoenesytmMearnktetMFuanndacogveerr’ssthReepveireiowd December 15, 2016 to March

31, 2018. Local Money Market Fund

Your Fund of this Fund is to pThries asnenruvalerecpaorpt ifotar lthwe hLoicleal MporonevyiMdairnkget JFuanmd caoivcerasnthde opelrliaodr (DJeMcemDb)emr 1o5,n20e1y6 mto aMrakrceht31, 2018.
The objective

returns. The Fund invests mainYlyoiunrmFuonnedy market instruments denominated in JMD, including short

term Treasury Bills, Bank of Jamaica Certificates of Deposit, Government of Jamaica debt instruments
aanndalrteeprnuarctihveasteoaogrrdeinemareynbtas.nTkmpThrhadeiersskeeeoriptvsberjoeeacctstuaiilrpvtoneistswa.looTfwrorhtiawhsicleskhhtieLFopvoruecowatvnlhididisMsinohogwbnjJteeahoycmitciaMv“ihecpaa,rntukihseitDstsaoFFuulwluaninrdtadamiynbivo”selnsecettoysafsohr einavremsatAorSkrSseEdwThfAooLrLaaOrepCaAsreTteiI2cOk0uiN1nla8gAr S AT M
purpose in the near future. mainly in local money market instruments denominated in
Jamaica Dollars. However, the Fund may also invest in
other money market instruments denominated in United Other Assets 1.45%

States Dollars and other major currencies. Money Market

InvesTtomp teennHtoLlodMicnagsal M(nJ$o)angeyeMr’asrkeRt Feuvn1id,0e16w,692,000 VR Bond
FR Bond
Investment MLaoncaagleOTMrotth’aoeslrAnARssseesetyestsv(MJ($iJ$)e)awrket Fund 353,084,000 10.00% 20.00%
1,369,776,000 0.00%

Local Money MMaISrSkINeGtNCFeHtuAAnsRsTedtSValue per Share (J$) 10.13

MISSING CHARTS JN Mutual Funds Performance as at March 31, 2018

Funds Inception Date Currency 1 Month 3 Months Year to date 12 Month

Local Money Market Fund 15-Dec-16 JMD 0.19% 1.19% 1.19% 4.93%
0.23% 0.77% 1.77% 4.10%
BeAnSchSmEaTrkA- LALveO3C0-AdaTy IBOONJ CADS AT MARCH 31,JMD
2018

ASSET ALLOCATION AS AT MARCH 31,

Othe2rF0Au1s8snetds Per1f.4o5r%mance

Other Assets 1.45%MoneyTMhaerkfuentd delivered a total net return of 6.24% for the 153-9.00%Concentration - Top 10 Long Po

month period ended March 31, 2018. This compared well
VwRitBhotnhde return of the boeuntcphemrfao3rr9km.-0aA0nvc%eerawgeas30d-rdiva2ey9nB.8Ob7yJ%CthDe
Money Market return of 5.59%. The Government of Jamaica Variable Rate Bond 2020

VR Bond FaJRapmpBraoeinccadiatsieocnuroitfiesf.ixTedh2e9rf.au8tne7d%sahlosort intveersmtedGoinvesr2hn9om.r6te9nt%teromf Bank of Jamaica Certificate of Deposit

FR Bond corpor0at.0e0d%ebt inst1r0u.m0209e%.n6t9s%tha2t0o.0ff0e%red attr3a0c.t0i0ve%yields4. 0.00%JN Bank Limited Certificate of Deposit
The Local Money Market Fund was first available to Government of Jamaica Variable Rate Bond 2018
0.00% 10.00% inves2to0.r0s0o%n Dece3m0.b0e0r%15, 204106..0T0h%e Fund’s net asset value 9.00% Atlantic Hardware & Plumbing Company Li

per share was held relatively constant at J$10 per share up 8.50% Jamaica Government Bond 2019
until December 31, 2017. This was achieved by distributing
accumulated proJfiNts tMo suhtarueaholldFeursnodnsa Pquearrtfeorlrymbaasisn. ceGaosvearntmMenat orfcJahm3aic1a,V2ar0ia1bl8e Rate Bond 2025
JNBLFuoenncMadclhsMmuIoatnTJreraneucfhknfeieineucay-pviaetFlMAerinuoysvFacntnereyd1ukdD3,oewn0taf2-btadtFd0esahua1csetyn8khdfPBueCwiOnnneuhdtJcrroeoaCrrfseneoDtnvdh1creiiensI5yrmnttt-rceeDfieurbdaeepnu1csttdntoti-Mi.oo1cna6anoTensnDfhdrtwieahasteeosertifmehl3aoetpaMrtarCtxoioniMuenvnJJgdrMMcetroadhNaeDDmstnrAtc2echVy5Yeh%waesaet3froa1rax1er00ttMo..,12o39d2n%%a9G6t0th..e10o105v8%%13e2r10NNMnM..17CCom79onBB%%ntehtCCnhsaastppoiiYttfaaellIaJ11nMMra..c71mtaaeo79rrpkk%%atdeeiioactttssnaeLLViimm1a2iirtt44eeiMa..dd19bo3022nl%%00et12hR39s ateInB56co..e52
Funds

Local Money Market Fund 15in-Ddievcid-1u6als and 33% fJoMrDcorporat0e.1i9n%vestors1. .19% 1.19% 4.93% 6.24%
Benchmark - Ave 30-day BOJ CD The fund has seen sJiMgnDificant gr0o.w23th%in its 0n.e7t7%assets sin1c.e77% Total 4o.f1t0o%p 10 Ho5ld.5i9n%gs
launch and amounted to J$1.36 billion as at March 31, 2018.

Concentration - Top 10 Long Positions %
Concentration - TGoovpern1m0enLt oofnJagmaPicoa sViatriiaobnlesR6ate Bo%nd 2020 NAV

Bank of Jamaica Certificate of DepositNAV 18.19%
13.22%

JN Mutual Funds Performance as at March 31, 2018

Funds Inception Date Currency 1 Month 3 Months Year to date 12 Months Inceptio

Local Money Market Fund 15-Dec-16 JMD 0.19% 1.19% 1.19% 4.93% 6.24%
JMD 0.23% 0.77% 1.77% 4.10% 5.59%
Fund PerformBaennchmcarek - Ave 30-day BOJ CD

Concentration - Top 10 Long Positions %
NAV
Government of Jamaica Variable Rate Bond 2020
Bank of Jamaica Certificate of Deposit 18.19%
13.22%
JN Bank Limited Certificate of Deposit
9.34%
Government of Jamaica Variable Rate Bond 2018
9.00% Atlantic Hardware & Plumbing Company Limited 2020 5.72%
8.50% Jamaica Government Bond 2019 5.58%
Government of Jamaica Variable Rate Bond 2025 5.54%
9.15% NCB Capital Markets Limited 2023 5.23%
5.06%
Government of Jamaica Variable Rate Bond 2023 3.43%
3.30%
6.00% NCB Capital Markets Limited 2019 74.62%

Total of top 10 Holdings

The Fund delivered a total net return of 6.24% for the 15-month period ended March 31, 2018.
This compared well with the return of the benchmark -Average 30-day BOJ CD return of 5.59%. The
outperformance was driven by the appreciation of fixed rate short term Government of Jamaica
securities. The Fund also invested in short term corporate debt instruments that offered attractive
yields.

The Local Money Market Fund was first available to investors on December 15, 2016. The Fund’s net
asset value per share was held relatively constant at J$10 per share up until December 31, 2017. This
was achieved by distributing accumulated profits to shareholders on a quarterly basis. The Fund was
then converted to a free floating NAV as at January 1, 2018 where interest and other income were
reinvested into the Fund. This improved the tax efficiency of the fund as distributions were taxed at
25% for individuals and 33% for corporate investors.

The Fund has seen significant growth in its net assets since launch and amounted to J$1.36 billion
as at March 31, 2018.

7

Investment Manager’s Review

Global Money Market Fund
This annual report for the Global Money Market Fund covers the period December 15, 2016 to
March 31, 2018.

Your Fund
The objective of this Fund is to preserve capital while providing United States dollar (USD) money
market returns. The Fund invests mainly in money market instruments denominated in USD,
including short term Treasury Bills, Bank of Jamaica Certificates of Deposit, Government of Jamaica
debt instruments and repurchase agreements. This is a low risk Fund which is suitable for investors
who are seeking an alternative to ordinary bank deposits or who wish to “put away” cash earmarked
for a particular purpose in the near future.

Global Money Market Fund

Top ten Holdings (US$) 4,507,000

Other Assets (US$) 2,415,000

Total Assets (US$) 6,922,000

Net Asset Value per Share (US$) 10.02

JN Mutual Funds Performance as at March 31, 2018

Funds Inception Currency 1 Month 3 Months Year to 12 Months Inception
Date date
Global Money
Market Fund 15-Dec-16 USD -0.04% 0.20% 0.20% 1.11% 1.50%

Benchmark - USD 0.09% 0.30% 0.30% 1.79% 2.23%
PSOJ 30 Day
Yield

8

Concentration - Top 10 Long Positions % NAV
4.30% BOJ US Dollar Certificate of Deposit 2024 14.49%
US Treasury N/B 1.50% 02.28.2019 12.52%
3.70% BOJ US Dollar Certificate of Deposit 2022 7.26%
5.50% Jamaica Energy Partners Bond 2018 6.57%
US Treasury N/B 1.375% 09.30.2018 4.68%
US Treasury N/B 1.125% 01.15.2019 4.35%
US Treasury N/B 1.25% 01.31.2019 4.32%
US Treasury N/B 1.50% 01.31.2019 4.29%
3.75% JN Bank Limited Certificate of Deposit 2020 4.07%
US Treasury N/B 1.375% 06.30.2018 2.77%
Total of top 10 Holdings 65.32%

The Fund delivered a total return of 1.50% for the 15-month period ended March 31, 2018. This
compares with the return of the benchmark - PSOJ_30D US Dollar - return of 2.34%. The Fund’s
performance was negatively impacted by a scarcity of short term US dollar issues from the Bank of
Jamaica, Government of Jamaica or Corporates entities. As such the Fund predominately invested
in US Treasury notes. There was also a significant decline in interest rates offered on US Dollar
denominated repurchase agreements.

The Global Money Market Fund was first available to investors on December 15, 2016. The Fund’s
net asset value per share was held constant at J$10 per share up until December 31, 2017. This
was achieved by distributing accumulated profits to shareholders on a quarterly basis. The Fund
was then converted to a free floating NAV as at January 1, 2018 where interest and other income
were reinvested into the Fund. This improved the tax efficiency of the Fund as distributions were
taxed at 25% for individuals and 33% for corporate investors. As at March 31, 2018, total net assets
amounted to US$6.90 million.

9

Investment Manager’s Review

Global Fixed Income Fund
This annual report for the Global Fixed Income Fund covers the period December 15, 2016 to March
31, 2018.

Your Fund
The objective of this Fund is to achieve an attractive total return through capital appreciation and
income growth. The Fund invests in local and regional sovereign debt, local and international
corporate bonds and repurchase agreements. This Fund may be suitable for investors who are
seeking to achieve somewhat higher but stable income from debt instruments and other fixed
income securities.

Global Fixed Income Fund

Top ten Holdings (J$) 367,531,000

Other Assets (J$) 137,755,000

Total Assets (J$) 505,286,000

Net Asset Value per Share (J$) 10.84

JN Mutual Funds Performance as at March 31, 2018

Funds Inception Currency 1 Month 3 Months Year to 12 Months Inception
Date date
Global Fixed
Income Fund 15-Dec-16 JMD -0.37% 1.08% 1.08% 7.03% 7.82%

Benchmark - JMD 0.50% 1.53% 1.53% 7.12% 7.80%
PSOJ 5-year
Yield

10

Fund Performance

Concentration - Top 10 Long Positions % NAV

Government of Jamaica Variable Rate Bond 2019 9.95%

11% Government of Jamaica BMI Note 2024 9.86%

9.50% (Fixed-Float) 138 Student Living Ltd Bond 2024 7.94%

9.5% Lasco Financial Services Limited Corporate Bond 2023 7.94%

3.75% JN Bank Limited 2020 7.89%

9.00% Atlantic Hardware & Plumbing Company Corporate Bond 2020 7.35%

9.15% (Fixed-Float) NCB Capital Markets Corporate Bond 2023 6.55%

7.875% Unicomer Bond 2024 5.36%

5.50% Dominican Republic Bond 2025 5.09%

5.50% BOJ Fixed Rate Certificate of Deposit 2023 5.04%

Total of top 10 Holdings 72.97%

The Fund delivered a total return of 7.82% for the 15-month period ended March 31, 2018. This
compares with the return of the benchmark - 5 Year Yield PSOJ Yield Curve - of 9.07%. The Fund’s
performance was negatively impacted by its low duration compared to its benchmark.

The Global Fixed Income Fund was first available to investors on December 15, 2016. As at March
31, 2018 total net assets amounted to J$503.68 Million.

11

Investment Manager’s Review

Global Diversified Income Fund
This annual report for the Global Diversified Income Fund covers the period December 15, 2016 to
March 31, 2018.

Your Fund
The objective of this Fund is to achieve long term investment growth through exposure to a diversified
range of asset classes. The Fund invests in local and global equities, bonds, real estate and money
market instruments denominated in Jamaica Dollars (JMD), United States Dollars (USD) and other
major currencies.

Global Diversified Income Fund

Top ten Holdings (J$) 70,378,000

Other Assets (J$) 3,496,000

Total Assets (J$) 73,874,000

Net Asset Value per Share (J$) 11.6

JN Mutual Funds Performance as at March 31, 2018

Funds Inception Currency 1 Month 3 Months Year to 12 Months Inception
Date date 14.53% 15.41%
Global
Diversified 15-Dec-16 JMD -0.37% -1.24% -1.24%
Income Fund
JMD -0.10% 0.5% 0.5% 4.28% 5.22%
Benchmark -
Inflation

12

Fund Performance % NAV
13.59%
Concentration - Top 10 Long Positions 10.80%
5.50% BOJ Certificate of Deposit 2023 9.60%
11.25% Jamaica Government Bond 2046 6.86%
9.00% Atlantic Hardware & Plumbing Company Bond 2020 6.38%
9.5% Lasco Financial Services Limited Bond 2023 5.34%
iShares Europe ETF 4.81%
Jamaica Broilers Group 4.76%
Scotia Group Jamaica 4.75%
Jamaica Producers Group Ltd 4.64%
PANJAM Investment Limited 71.52%
NCB Financial Group Limited
Total of top 10 Holdings

The Fund delivered a total return of 15.41% for the 15-month period ended March 31, 2018. This
compares with the return of the benchmark - Inflation return of 5.22%. The Funds’ performance was
bolstered by strong returns in its allocation to local stocks as well as gains from its fixed rate bonds.

As at March 31, 2018 total net assets of the Global Diversified Income Fund amounted to J$72.88
Million.

13

Investment Manager’s Review

Global Equity Fund
This annual report for Global Equity Fund covers the period December 15, 2016 to March 31, 2018.

Your Fund
The objective of this Fund is to achieve long term capital growth. The Fund invests in local and
regional companies with above average earnings and/or growth potential with a small exposure to
medium term debt instruments denominated in Jamaica dollars (JMD), United States dollars (USD)
and other major currencies.

Global Equity Fund

Top ten Holdings (J$) 64,922,000

Other Assets (J$) 35,613,000

Total Assets (J$) 100,535,000

Net Asset Value per Share (J$) 11.52

JN Mutual Funds Performance as at March 31, 2018

Funds Inception Currency 1 Month 3 Months Year to 12 Months Inception
Date date 14.53% 15.41%
Global Equity
Fund 15-Dec-16 JMD -0.37% -1.24% -1.24%
Benchmark -
JMD -0.10% 0.5% 0.5% 4.28% 5.22%

14

Fund Performance % NAV
10.42%
Concentration - Top 10 Long Positions 10.31%
Scotia Group Jamaica 10.04%
Sagicor Group Jamaica Limited 5.86%
NCB Financial Group Limited 5.59%
Wisynco Group Limited 5.36%
Grace Kennedy Limited 5.20%
Jamaica Money Market Brokers Group Ltd 5.16%
Jamaica Broilers Group 4.14%
PANJAM Investment Limited 3.41%
SPDR S&P 500 ETF TR Units - SPY 65.49%
Sagicor Real Estate X Fund Limited
Total of top 10 Holdings

The Fund delivered a total return of 15.06% for the 15-month period ended March 31, 2018. This
compares with the return of the benchmark - 80% JSE 20%SP500- return of 45.61% for the period.
The underperformance of the benchmark can be attributed to the rapid growth of the Fund during
a period of rising stock prices. The Fund amounted to J$99.13M as at March 31, 2018. During the
review period the Jamaica Stock Exchange Main Market index returned 60.35% while the S&P500
index returned 16.74%.

15

Investment Manager’s Review

Global US Dollar Fixed Income Fund
The Global US Dollar Fixed Income Fund was launched March 05, 2018 and is denominated in US
Dollars

Your Fund
The objective of this Fund is to achieve an attractive total return through capital appreciation and
income growth. The Fund invests in local, regional and international sovereign debt, local and
international corporate bonds, treasures and repurchased agreements. Bonds and debt instruments
are denominated in Jamaica dollars (JMD), United States dollars (USD) and other major currencies,
where the opportunity arises. Securities may include non-investment grade securities as well as
securities which are not rated by any rating agency.

Global US Dollar Fixed Income Fund

Top ten Holdings (US$) 1,079,901

Other Assets (US$) 16,158

Total Assets (US$) 1,096,060

Net Asset Value per Share 9.94

JN Mutual Funds Performance as at March 31, 2018

Funds Inception Currency 1 Month 3 Months Inception
Date 15.41%
5.22%
Global US Dollar 15-Dec-16 JMD -0.37% -1.24%
Fixed Income

Benchmark - JSE JMD -0.10% 0.5%
Global Bond
Index

16

Fund Performance

Concentration - Top 10 Long Positions % NAV
7.625% Government of Jamaica 2025 21.46
6.75% Government of Jamaica 2028 20.38
REPO_JNFM_1.50%_04.06.2018 28.13
7.875% Unicomer 04.01.2024 9.90
5.95% Dominican Republic 01.25.2027 9.63
5.25% Trinidad Generation Unlimited 11.04.2027 9.18
Total of top 10 Holdings 98.68

The Fund delivered a total return of -0.59% for the period March 05 to March 31, 2018 versus the
benchmark-JSE Global Bond index return of 1.53%. The portfolio was negatively impacted by rising
global interest rates.

N/A means not applicable.

Performance data represents past performance, which does not guarantee future results. When you redeem
your shares, they may be worth less than what you paid for them. These risks mean that you can lose money by
investing in the Fund. For most recent month-end performance, go to www.jnfunds.com or call (876) 926-1344.

17

SUMMARY

FINANCIAL STATEMENTS
MARCH 31, 2018
18

INDEPENDENT AUDITORS’ REPORT ON THE SUMMARY FINANCIAL STATEMENTS

To the Directors of
JNFM MUTUAL FUNDS LIMITED

Opinion
The summary financial statements set out on pages 3 to 8, which comprise the summary statements
of financial position as at March 31, 2018, the summary statements of comprehensive income,
changes in net assets attributable to holders of redeemable shares and cash flows for the periods
December 15, 2016 and March 5, 2018 (dates of commencement of operations) to March 31, 2018,
and related notes, are derived from the audited financial statements of each of the Funds in the
company (“the Funds”) for the period ended March 31, 2018.

In our opinion, the accompanying summary financial statements are consistent, in all material
respects, with the audited financial statements of each fund, in accordance with the Practice
Statement 2016-1, Summary Financial Statements, issued by the Institute of Chartered Accountants
of Jamaica.

Summary Financial Statements
The summary financial statements do not contain all the disclosures required by International
Financial Reporting Standards which were applied in the preparation of the audited financial
statements of the Funds. Reading the summary financial statements and our report thereon,
therefore, is not a substitute for reading the audited financial statements and our report thereon.
The summary financial statements and the audited financial statements do not reflect the effects of
events that occurred subsequent to the date of our report on the audited financial statements.

The Audited Financial Statements and Our Audit Opinion
We expressed an unmodified audit opinion on the audited financial statements of each fund in our
reports dated July 31, 2018, except for the Global US$ Fixed Income Fund which is unaudited.

Management’s Responsibility for the Summary Financial Statements
Management is responsible for the preparation of the summary financial statements in accordance
with Practice Statement 2016-1, Summary Financial Statements, issued by the Institute of Chartered
Accountants of Jamaica.

Auditors’ Responsibility
Our responsibility is to express an opinion on whether the summary financial statements are
consistent, in all material respects, with the audited financial statements of each fund based on our
procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810
(Revised), “Engagements to Report on Summary Financial Statements”.

Chartered Accountants
Kingston, Jamaica

___________________________, 2018

19

3 333

JNJJJNFNNMFFFMMMMMMUMUTUUTUTTUAUUALAALLFLUFFFUNUUNDNNDSDDSLSSLILMLIIMIMIMTIITIETTEDEEDDD

PSRUSPSPSPRUEMURURPEMEMEMAPPMPMAARMAAARREARARDREYREREDYDYFFDYRIFFFFNFFROIRINRAINOMNOOANAMAMMNCTNNHCTICTACTHIEHIAHLIAEAEALELSLAUATSASUDSUATUTTDIADTATDAIETIETTITTMTEDEEEEEMDMEDMFDNEIEFEFNNTFNININAISTNTNTASNASASNCNNCICACIIALIAALLSLTSSSATTTATAAETTTMEEEMMEMNEEENTNNSTTTSOSSOFOOFEFFAEEEACAACHCCHHFHUFFFUNUUNDNNDDD

StSSaSttateaatmteteemmemneetennsnttsotssfoooFfffiFFnFiianinnaacannincacciliaiaPallloPPPsooiostsiisiotititnioioonnn
MMMaMraacarrhrccch3hh133,31121,,0,22120080111888

Global Global J$JJ$GJ$$lobal Local Money Global USUU$USS$S$$Global US
GDliovGeGblraolsolbifbaiealld GlEoGGqbluaololibtbyaall FiGxeloGdGblIaolnolbcbaoalml e LocLLaoloMcMcaaalorlMknMeeotoynneeyy
DivDeDirvisveiefriressidfiifeiedd EquEEiqtqyuuitityyFixFeFidxixeIenddcIoInnmccoeommee MaMrMkaeartrkkeett MGonloeGGbylaolMolbbaaarlkl et GDlooGGbllaolaolrbUbaalSlUUFSSixed
Fund Fund MoMnMeooynneMeyyaMrMkaeartrkkeettDoDllDaoorllalarr FixFeFidxixeedd
Income Fund Fund Fund Income Fund
IncIoInnmccoeo’m0mF0eu0enFFduunnddFun’F0Fdu0un0ndd Fun’F0Fdu0un0ndd Fun’F0Fdu0un0ndd FunF’F0duu0nn0dd IncIoInnmccoeo’m0mF0eu0enFFduunndd
’00’00’00000 ’00’00’00000 ’00’00’00000 ’00’00’00000 ’00’00’00000
Assets (U’0n0a’0u0’0d00i0t0ed)
AssAeAstssCseetatsssh and cash equivalents (Un((UaUunndaaiutueddditi)teedd))
3,255 3,886 26,706 224,033 2,211 308
CaRsCCehacasaeshnihvdaaanbcndaldesschcaaseshqhueeiqvqauulievivnaaltelsennttss 3,23532,52,4251555 3,83831,68,9889866 261,271260,61,67,7702066 224222,202243,43,30,5033333 2,2212,12,9211111 30831306088
ReCcRReeiervctcaeiefbiiviclveaaabstbelelsessof deposit 294,9120242411 19-9119999 116,19117,18,21,6178722 2320,237225,23,33,7351533
CeCCrCtoeifreripcrttoaifitifrceiacastatetoeesfbsodooenffpdddoseespiptoossitit 91,9490,90,29,0900022 - --- 6293,682696,93,88,0868688 3027373,03507,71,13,6372711 19,71892911 1-6 1166
CoECrxCpocohrrpapanotogrereaab-ttteoernabbdooesnndddsfsunds 14,109140,45,00,2002000 1-6,6--88 23222,33-202,83,30088 27522-,717565,21,16622 1,71814,27,5783822 - 2-0- 8
ExGcEhEoxaxvcncehghraeann-nmgtgreea-n-dttrteradaoddfefeuJdadnmfdufusannidcdassSecurities (GOJ) and GOJ- 9,5929,25,52222 16,161686,86,68888 - -- - -- 20-8220088
GoGvGgeouorvnavermerarnennmntmeteeeondntftbJoaoofmfnJaJdamiscmaaainScicdeaacnSuSeorecnictu-iuJeraristmiti(eiaeGsiscO(a(GnGJ)OOsaoJn)Jv)daeanrGneddOigGGnJ-OObJo-J-nds 45-3445533 - --
- --

8,460 - 160,578 540,857 - 563
gQuuagroguautaneartdraeaneontdrteedebeidnodanbrbdoyosnnsdahdnsasdraaennnsdodnnn-oJoannm--JaJamicmaanicicasanonvsesoorveveiegrrneeigbignonnbbdoosnnddss 82,4686,86,04,9464600 7-9,7--62 16011,656-070,85,57788 54055-,484050,78,85577 - --- 56-3556633
QuQQoQutueouodtoteteodedrdpdoroinrerdafderinirynaeasrnrhycyaesrshehsasharareersess 26,261269,68,46,0690944 79,7796-9,27,76622 - 4-,6- 54 - --- - --- - ---
QuTQoQrteueuaodostuteperdrydepbfperirlerlesefefnercreenncsceheasrshehasarreess 1,8-101,08,80000 - --- 4,6-454,46,65544 - --- -2,3-8- 5 - ---
TTorteaTTalrsreaueasrassysueubrtryislylbsbililsls -73-,8- 74 10- 0,5--35 5-05-,2- 86 1-,36-9-,776 2,3628,29,53,2382855 -1,0-9- 5
ToLTtTiaaoolbttailasiltlsaieaestsssseettss 73,787373,48,87744 10011,050030,55,53355 50555,020585,62,28866 1,3161,93,3,676979,67,77766 6,9626,29,92222 1,0191,50,09955
LiaLbLiialaPibtbaiylieilatisbtiieleesss, being total liability
990 1,383 1,608 7,253 22 1
NPeatyPaaPabasylyseaaebsb,tlelsbesesa,,ibtnbtegerintiinbogguttattoloatltiaballblelillaiiattbboyiliilthityoy lders of 990999900 1,3181,33,38833 1,6101,86,60088 7,2757,32,25533 22 2222 1 11
NeNtNeaertstesadeasetssseeemattstsatarabtitlbtetrurisbtibhauuabtrtlaeaebbstleloethtoohldhoeolrdldseerorsfsooff 72,884 99,152 503,678 1,362,523
Nreetdrareseseddemeteeveamamblulaeaebbsplelheearssrhshehaasarrreeess($) 72,78172812,4.8,6880844 99,91199519,2.1,5152522 50355,06103703,8.6,8674788 1,3161,23,3,6516202,35.,1523233 6,900 1,094
NeNNtNuaemeststbaeasetssrsveeaottlfuvvsaeahlulpauereerpspsee(hr‘r0asr0sheh0aa)(rr$ee)(($$)) 116.161,1201.86.6300 118.151,1621.05.5422 1406.181,40405.8.8844 11304.1,150305.1.2133 6,916006,09.,0903000 1,01991,4.0,9094944
NuNmNubumemrbboeerfrsohofafsrshehasarr(ee‘s0s0((‘00‘0)0000)) 6,2686,32,28833 8,6808,46,60044 46,44656,84,45588 13411,353454,25,55522 10.10160308.0.8033 9.919491.9.0944

688668888 110111100

T__T_hT__T_e_h_h_h_e_s_e_e_u_s__s_msu_u__um__mm____m__ma_m__r_a2_a_yar02r2ry21fy0yi008n1f1fi1fia8nai8n8nanaaaacnadnnnnicnadcdscidliaiiasgsaslsiltnilgsigsagestntntnadeaeeatedtmdteodeemnomeomonninenteetnisnitsnittstbtstsossesbbnobhoeoeneanphnhhlaapfapaplgablfalfeagfybgbgseb:eyeys2y:s:s:02220t00otttoo2o52225w55wewwreeerrreeaepaaapppprppoprrvroooevvdveeeddbdybbbytyyhttehthheeBeBoBBaoooraadarrrddodfoooDfffDiDrDieirircreeteccocttrtoosorrrsossnooonnn
CP_JNe_C_PJhC_PJNtFPC_JNe_aNeh_Meh_itF_hrtraF_etaFM_emai_MeMrir_Mrir__rmra_mMMo_mMu_MnM_Mar_tao_uanou_rno_urtn_irat_surrt_ur_luir_asi_aF_sial_slu_l_F_Fn_Fu_u_du_n_n_sn_d_d_dLs__s_st_L_dL_L_t_.td_td__d._.__.____________________
CJD_N_CD_JaiJDC_NrF_DCJNr_Nae_iMya_riF_arricF_lrerFM_yret_MyeFc_Moylc_l_ectl_FtrMo_Futn_MoFe_Moer_tt_eurnu_orn_unt_tat_tnuot_tu_olu_oan_aF_nal_nlu_l_F_Fn_Fu_u_du_n_n_sn_d_d_dLs__s_st_L_dL_L_t_.td_td__d._.__.____________________

The notes on pages 24 to 26 are an integral part of the financial statements.
ThTeThnheoetnenosotteoesnsoponangppeaasgge2es4s2t24o4t2to6o2a26r6eaarareneaianntieingntrteaeglgrrpaalalrptpaaorrtftotohffetthfhieenfafinincaainanclcisiaatlalstsettamatteemnmtesen.nttss..

20

4

JNFM MUTUAL FUNDS LIMITED

SUMMARY FINANCIAL STATEMENTS
PREPARED FROM THE AUDITED FINANCIAL STATEMENTS OF EACH FUND

Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares
Period from December 15, 2016 to March 31, 2018 (except as otherwise indicated)

Global Global J$ Global Local Money Global US$ Global US
Diversified Market
Income Fund Equity Fixed Income Fund Money Market Dollar Fixed
Fund Fund ’000 Fund Income Fund*
’000 ’000 ’000 ’000 ’000
(Unaudited)

Investment and other income 1,623 352 9,328 44,122 188 2
Interest income - 261 - - - -
Dividend income
Realised (losses)/gains on sale of ( 70) 378 ( 1,789) 397 ( 16) ( 6)
financial assets 3,737 3,442 3,309 3,061 - -
Unrealised gains on financial assets
Unrealised foreign exchange translation ( 49) - 849 - ( 2) -
(loss)/gain 82 - 78 1 - -
Other income 4,433 11,775 170 ( 4)
5,323 47,581
Administrative expenses
Investment management fees 255 201 614 5,335 44 1
Administrative fees 100 79 275 3,301 21 1
Custodian fees 1,001 1,127 1,241 10 -
Irrecoverable General Consumption Tax 1,178 150 1,227 9-
Audit fees 76 86 1,282 1,705 14 -
Commission 719 - --
Miscellaneous 131 986 44 - --
27 420 3,492 107 98 2
Increase/(decrease) in net assets attributable to holders 2,309 27 12,916
of redeemable shares 2,977 8,283 72 ( 6)
3,014 34,665
1,456

* This fund covers the period March 5 (date of commencement of operations) to March 31, 2018.
The notes on pages 24 to 26 are an integral part of the financial statements.

21

5

JNFM MUTUAL FUNDS LIMITED

SUMMARY FINANCIAL STATEMENTS
PREPARED FROM THE AUDITED FINANCIAL STATEMENTS OF EACH FUND

Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares
Period from December 15, 2016 to March 31, 2018 (except as otherwise indicated)

Global Global J$ Local Money Global US$Global US$
Diversified Equity Market
Income Fund Fund Global Fund Money Market Dollar Fixed
Fixed Income ’000 Fund IncomeFund*
’000 ’000 ’000 ’000
Fund (Unaudited)
’000

Increase/ (decrease) in net assets attributable to holders 3,014 1,456 8,283 34,665 72 ( 6)
of redeemable shares
73,630 99,596 515,311 1,524,234 8,605 1,100
Contributions and redemptions by holders of ( 3,760) ( 1,900) ( 19,916) ( 174,157) (1,719) -
redeemable shares 69,870 97,696 495,395 1,350,077 6,886
Issue of shares during the period ( 22,219) ( 58) 1,100
Redemption of shares during the period - - - 6,900 -

Total contributions and redemptions by holders 72,884 99,152 503,678 1,362,523 1,094
of redeemable shares

Distributions
Net assets attributable to holders of redeemable

shares at March 31, 2018

* This fund covers the period March 5 (date of commencement of operations) to March 31, 2018.
The notes on pages 24 to 26 are an integral part of the financial statements.

22

6

JNFM MUTUAL FUNDS LIMITED

SUMMARY FINANCIAL STATEMENTS
PREPARED FROM THE AUDITED FINANCIAL STATEMENTS OF EACH FUND

Statements of Cash Flows
Period from December 15, 2016 to March 31, 2018 (except as otherwise indicated)

Global Global J$ Local Money Global US$
Diversified Equity Market Money Market
Income Fund Fund Global Fund Global US
’000 Fixed Income ’000 Fund Dollar Fixed
’000 ’000 Income Fund*
Fund
’000 ’000
(Unaudited)

Cash Flows from Operating Activities 3,014 1,456 8,283 34,665 72 ( 6)
Increase/(decrease) in net assets attributable to holders
( 3,737) ( 3,442) ( 3,309) ( 3,061) - -
of redeemable shares 49 2 -
Adjustments for: - ( 849) - ( 2)
( 1,623) ( 352) ( 9,328) ( 44,122) ( 188) -
Unrealised gains on financial assets - ( 261) - ( 8)
Unrealised foreign exchange translation ( 2,599) - - ( 771)
( 2,297) (98,195) ( 5,203) ( 12,518) ( 114) -
loss/(gain) ( 80,591) (463,250) (1,149,682) (5,970) ( 14)
Interest income 5,187 1,348
Dividend income 13,901 ( 193) - 29,353 ( 33) 1
( 12) ( 3,019) ( 12,300) ( 792)
Purchase of investments 1,383 22
Proceeds from sale of investments 990 (94,417) 1,608 7,253 (4,747) -
Receivables ( 68,009) (469,864) (1,137,894) -
Payables 351 130 ( 792)
1,394 256 1,175 34,069 -
Interest received - (93,810) - - (4,617)
Dividends received ( 66,615) (468,689) (1,103,825)
Cash used in operating activities

Cash Flows from Financing Activities 73,630 99,596 515,311 1,524,234 8,605 1,100
Proceeds from issue of redeemable shares ( 3,760) ( 1,900) ( 19,916) ( 174,157) (1,719) -
Payment on redemption of redeemable shares ( 22,219) ( 58) -
Distributions - - - 1,327,858 6,828
69,870 97,696 495,395 1,100
Cash provided by financing activities 2,211
3,255 3,886 26,706 224,033 308
Increase in cash and cash equivalents and
balance at end of period

* This fund covers the period March 5 (date of commencement of operations) to March 31, 2018.
The notes on pages 24 to 26 are an integral part of the financial statements.

23

7

JNFM MUTUAL FUNDS LIMITED

SUMMARY FINANCIAL STATEMENTS
PREPARED FROM THE AUDITED FINANCIAL STATEMENTS OF EACH FUND

Notes to the Financial Statements (Continued)
Period from December 15, 2016 to March 31, 2018 (except as otherwise indicated)

1. Identification

JNFM Mutual Funds Limited (“the Company”) is constituted as an open-ended umbrella type mutual fund company comprising
separate funds. The Company was incorporated under the Jamaican Companies Act on February 13, 2015, is registered with the
Financial Services Commission and is domiciled in Jamaica. Its registered office is at 2 Belmont Road, Kingston 5.
The Company has engaged JN Fund Managers Limited (JNFM) as investment manager and administrator and JCSD Trustee
Services Limited as custodian. JNFM has subscribed to a special share of the Company of $1.00 which can only be held by JNFM
or its nominee. It confers no rights to receive dividends or to otherwise participate in the profits of the Company.
All funds, except the Global US Dollar Fixed Income Fund (which commenced on March 6, 2018), commenced operations on
December15, 2016.
The Company comprises the following segregated funds:
Local Money Market Fund
Global Money Market Fund
Global Fixed Income Fund
Global Diversified Income Fund
Global Equity Fund
Global US Dollar Fixed Income Fund

Each fund’s assets are only available to meet liabilities to creditors of that fund and are not available to meet liabilities of
other segregated funds or to general creditors of the Company.
(a) Global Diversified Income Fund

The objective of this Fund is to achieve long term investment growth through exposure to a diversified range of asset
classes. The Fund invests in a wide range of asset classes including local and global equities, bonds, real estate and
money market instruments denominated in Jamaica Dollars (JMD), United States Dollars (USD) and other major
currencies, where the opportunity arises.
(b) Global Equity Fund
The objective of this fund is to achieve long term capital growth and risk diversification. The Fund invests in local and
regional companies with above average earnings and/or growth potential with a small exposure to medium term debt
* This fund covers the period March 5 (date of commencement of operations) to March 31, 2018.

The notes on pages 24 to 26 are an integral part of the financial statements.

24

8

JNFM MUTUAL FUNDS LIMITED

SUMMARY FINANCIAL STATEMENTS
PREPARED FROM THE AUDITED FINANCIAL STATEMENTS OF EACH FUND

Notes to the Financial Statements (Continued)
Period from December 15, 2016 to March 31, 2018 (except as otherwise indicated)

instruments denominated in Jamaica dollars (JMD), United States dollars (USD) and other major currencies, where
the opportunity arises.

(c) Global Fixed Income Fund
The objective of this Fund is to achieve an attractive total return through capital appreciation and income growth.
The fund invests in local and regional sovereign debt, local and international corporate bonds and repurchase
agreements.

(d) Global Money Market Fund
The objective of this Fund is to preserve capital whilst providing United States dollar (USD) money market returns.
The Fund invests in money market instruments denominated in USD, including short term treasury bills, Bank of
Jamaica certificates of deposit, Government of Jamaica debt instruments and repurchase agreements.

(e) Local Money Market Fund
The objective of this Fund is to preserve capital whilst providing Jamaica dollar money market returns. The fund
invests in local and global money market instruments denominated in Jamaica dollars (JMD), United States dollars
(USD) and other major currencies. Those instruments include short term treasury bills, certificates of deposit and
commercial paper.

(f) Global US Dollar Fixed Income Fund
The objective of this Fund is to achieve an attractive total return through capital appreciation and income growth.
The fund invests in local and regional sovereign debt, local and international corporate bonds and repurchase
agreements.
The Fund was launched on March 5, 2018.

2. Basis of preparation
(a) These summary financial statements comply with the provisions of the Practice Statement, Summary Financial

Statements. They do not include all the disclosures provided in the full financial statements of each fund and cannot
be expected to provide as complete an understanding as provided by the full financial statements of each fund.

* This fund covers the period March 5 (date of commencement of operations) to March 31, 2018.

The notes on pages 24 to 26 are an integral part of the financial statements.

25

9

JNFM MUTUAL FUNDS LIMITED

SUMMARY FINANCIAL STATEMENTS
PREPARED FROM THE AUDITED FINANCIAL STATEMENTS OF EACH FUND

Notes to the Financial Statements (Continued)
Period from December 15, 2016 to March 31, 2018 (except as otherwise indicated)

(b) With the exception of the Global US Dollar Fixed Income Fund, whose balances and transactions were verified but

for which an audit opinion was not issued, an unmodified audit opinion has been issued on the full financial statements
of each fund as at and for the period ended March 31, 2018, and that were authorised for issue by the directors on
July 31, 2018. These summary statements were extracted from the full financial statements.

(c) The full financial statements of the Funds have been prepared in accordance with International Financial Reporting

Standards (IFRS). They have been prepared on the historical cost basis, except for investments which are measured
at fair value.

* This fund covers the period March 5 (date of commencement of operations) to March 31, 2018.
The notes on pages 24 to 26 are an integral part of the financial statements.

26






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