CIMB S&P Ethical Asia Pacific Dividend ETF

Transcription

1 Semi-Annual Report (Unaudited) For the six months ended 31 December

2 General Information Manager CIMB-Principal Asset Management (S) Pte. Ltd. 50 Raffles Place #22-03A Singapore Land Tower Singapore Directors of the Manager Tang Chee Kin Goh Zee Wei Ken Trustee/Registrar Citicorp Trustee (Singapore) Limited 8 Marina View #21-00 Asia Square Tower 1 Singapore Custodian Citibank N.A., Singapore Branch 8 Marina View #21-00 Asia Square Tower 1 Singapore Auditors Ernst & Young LLP Contents Page Manager s Investment Report 2 Statement by the Manager 9 Financial Statements Statement of Total Return 10 Statement of Financial Position 11 Statement of Movements of Unitholders Funds 12 Statement of Portfolio 13

3 Manager s Investment Report About (the Fund ) is an exchange traded fund, designed to track the performance of the S&P Ethical Pan-Asia Select Dividend Opportunities Index. Shares of have been listed and traded on SGX-ST since 8 March Details Fund Currency US dollar () Trading Currencies, Singapore dollar (SGD) Listing Date of US dollar counter on SGX-ST 8 March 2012 Listing Date of Singapore dollar counter on SGX-ST 15 June 2012 Stock Codes on SGX-ST P5P ( counter), QR9 (SGD counter) Board Lot 100 units Number of units as at 31 Dec 17,500,000 NAV per unit as at 31 Dec Management Fee 0.65% of NAV per annum Performance Cumulative Performance (%) as at 31 December From Fund's Performance Index's Performance 1 Year 31/12/ /12/ -1.18% -3.84% Since Inception 06/03/ 31/12/ 5.66% 1.13% The Fund s performance is calculated on a NAV-to-NAV basis on the assumption that all dividend distributions made by the Fund are re-invested. The Fund aims to mirror the performance of S&P Ethical Pan-Asia Select Dividend Opportunities Index (the Index ), using full replication strategy, that involves investing in all index securities in substantially the same proportion or weighting as the Index. The Index represents the top 40 high yielding stocks in the Asia Pacific region which meet the criteria for inclusion into the tracked index and is subject to rigorous ground rules such as free float adjustment and liquidity screening to ensure that these stocks are highly investable. The focus of the Index is on both capital growth and dividend income characteristics, thus providing yield and stability. The transparent and freely available index rules are governed and maintained by an independent committee of leading market professionals. From 28 June to 31 December, the Fund s Net Asset Value ( NAV ) increased by 2.54%, while the Index increased by 1.53%. The top 10 holdings of the Fund as of 31 December represented US$9,259,801, approximately 52.54% of the Fund s NAV. Asian markets generally fared better from July to December after a difficult first half of. In general, the markets started to discount the effects of the US Federal Reserve tapering and differentiated between markets that were highly reliant on external funding and buoyant liquidity (like Indonesia, India, Thailand) versus those that were self funding and had less domestic credit expansion (like Korea and Taiwan). Manager s Investment Report (continued) - 2 -

4 Performance (continued) In July, Asian markets rose after US Federal Reserve Chairman Ben Bernanke downplayed tapering expectations. The People s Bank of China announced the removal of lending rate controls. China s securities regulator increased the overall quota for the Qualified Foreign Institution Investor program by US$70 billion to US$150 billion. It was part of a number of steps taken by the Chinese authorities to open the country s markets to more foreign fund flows. In India, the Reserve Bank of India (RBI) also announced changes to bring stability to the foreign exchange market. In August, Indian markets stabilized somewhat after the new RBI governor Raghuram Rajan announced a series of measures to attract higher foreign fund flows through Foreign Currency Non-Resident (Bank) deposits and external debt for banks and also detailed banking sector reforms to be implemented. Also, Indonesia announced measures to counter the problems of current account deficit and a depreciating currency. Regional markets rose smartly in September & October, recouping almost all the lost ground since mid-may. In September, the US Federal Reserve left the US$85 billion monthly asset purchases program intact. Ben Bernanke outlined three reasons for not tapering a desire to see how more economic data turns out, the effects of tighter policies on the real economy and more clarity on the fiscal situation. Countries with current account deficits continued to benefit from the lack of tapering with countries like India and Indonesia outperforming other Asian markets in October. The India stock market gained about 10% in October driven by monetary policy normalization as the RBI cut the Marginal Standing Facility rate by 75 basis points and hiked the repo (repurchase agreement) rate by 25 basis points to 7.75%. The uptrend in the Asian equities flattened out in November. But markets in Greater China did well as investors became more positive on reform measures announced in the 3rd Plenum Reform Plan. These measures, if implemented properly, are positive for the long term economic growth of China. However, the South Asian markets did not fare as well. Markets were beginning to price in that the US Federal Reserve would likely announce Quantitative Easing tapering in its December Federal Open Market Committee meeting. Political uncertainty in Thailand as the Pheu Thai party pressed ahead to table the amnesty bill put further pressure on the Thai market. Asian markets had a muted reaction to the US Federal Reserve s tapering announcement in December. However, markets in the Philippines and Thailand were particularly weak due to concerns about the Public-Private Partnership program and expensive valuations in the former and political unrest in the latter

5 Manager s Investment Report (continued) Investments at market value and as a percentage of NAV as at 31 December classified by: Market Value i) Country % of NAV ii) iii) China 3,898, Australia 3,600, Singapore 3,089, Hong Kong 2,470, Malaysia 1,924, Korea 1,767, Indonesia 647, Thailand 93, ======= ======= Industry Financials 4,733, Telecommunication 4,281, Oil and gas services 3,547, Utilities 2,167, Basic materials 1,148, Consumer services 833, Industrials 780, ======= ======= Asset Class Equities 17,491, Other net assets 133, ======= ======= - 4 -

6 Manager s Investment Report (continued) Details of Top 10 Holdings of the Fund: As at 31 December Cost Market Value % of total Net Assets China Shenhua Energy 1,005,784 1,037, China Petroleum & Chemical 924,078 1,012, Westpac Banking Corp 875, , S-Oil Corporation 1,129, , Telstra Corporation 789, , Keppel Corporation 869, , Maxis Bhd 883, , Bank Of China 892, , Axiata Group Berhad 867, , CLP Holdings Ltd 907, , ,145,458 9,259, ======== ======== ========= As at 31 December 2012 Cost Market Value % of total Net Assets China Petroleum & Chemical 867,574 1,042, Corporation Perusahaan Gas Negara Persero 822, , Telstra Corporation 759, , Power Assets Holdings 863, , Bendigo And Adelaide Bank 855, , Advanced Info Service 712, , China Merchants Holdings International 846, , Singapore Press Holdings 792, , PTT PCL 813, , Telekomunikasi Indonesia Persero 748, , ,080,649 8,913, ======== ======== ========= - 5 -

7 Manager s Investment Report (continued) Exposure to derivatives The Fund had no exposure to derivatives for the period from 1 July to 31 December. Index constituent s weights As at Constituent Name 31 Dec 13 Constituent Name 31 Dec 12 % % China Shenhua Energy 5.89 China Petroleum & Chemical Corp 5.93 China Petroleum & Chemical 5.74 Perusahaan Gas Negara Persero Tbk 5.37 Westpac Banking Corp 5.39 Telstra Corp Ltd 5.32 S-Oil Corporation 5.37 Power Assets Holdings Ltd 5.20 Telstra Corporation Ltd 5.27 Bendigo And Adelaide Bank 5.14 Keppel Corporation Ltd 5.17 Advanced Info Service PCL 4.80 Maxis Bhd 5.12 China Merchants Hldgs Intl 4.78 Bank Of China Ltd 4.94 Singapore Press Holdings Ltd 4.77 Axiata Group Berhad 4.88 PTT PCL 4.72 CLP Holdings Ltd 4.78 Telekomunikasi Indonesia Persero Tbk 4.71 Singapore Press Holdings Ltd 4.73 CLP Holdings Ltd 4.57 KT Corporation 4.66 Singapore Telecom Ltd 4.52 Power Assets Holdings Ltd 4.44 Westpac Banking Corp 4.42 Hutchison Port Holdings 4.43 Sembcorp Marine Ltd 4.40 APA Group 3.85 China Mobile Ltd 4.24 Perusahaan Gas Negara 3.08 Vtech Holdings Ltd 4.20 Singapore Telecommunications Ltd 2.45 Keppel Corp Ltd 3.28 National Australia Bank Ltd 1.13 Ind & Comm Bk Of China 1.00 China Merchants Bank 1.03 Capitacommercial Trust 0.98 Agricultural Bank Of China 0.96 China Construction Bank 0.95 China Citic Bank Corporation Ltd 0.94 China Citic Bank Corp Ltd 0.92 Bank Of East Asia 0.94 Bank Of China Ltd 0.91 Malayan Banking Bhd 0.92 New World Development 0.91 Country Garden Holdings 0.90 Mirvac Group 0.88 Bendigo And Adelaide Bank 0.87 Commonwealth Bank Of Australia 0.87 Australia And New Zealand Banking 0.87 China Shenhua Energy Co 0.87 Group China Construction Bank 0.86 Shimao Property Holdings Ltd 0.87 Industrial & Commercial Bank Of China 0.86 Link REIT 0.87 Commonwealth Bank Of Australia 0.85 Aust And Nz Banking Group 0.84 BOC Hong Kong (Holdings) Ltd 0.82 Bank Of Queensland Ltd 0.84 Mirvac Group 0.8 Sino Land Co 0.82 China Mobile Ltd 0.79 Bank Of East Asia 0.82 CFS Retail Property Trust 0.78 Cnooc Ltd 0.81 Sino Land Co 0.78 Malayan Banking Bhd 0.80 Link REIT 0.77 National Australia Bank Ltd 0.79 Capitamall Trust 0.75 Swire Pacific Ltd 0.77 New World Development 0.7 Boc Hong Kong Holdings Ltd 0.77 Iluka Resources Limited 0.63 Sembcorp Industries Ltd 0.76 Telekomunikasi Indonesia 0.59 CFS Retail Property Trust Group 0.75 Advanced Info Service 0.53 QBE Insurance Group Ltd As at

8 Manager s Investment Report (continued) Subscriptions/redemption for the six months ended 31 December There were no subscriptions during the reporting period while total redemptions amounted to US$1,548,000 (1,500,000 units). Other information During the reporting period, the Fund had no exposure to other unit trusts, mutual funds and collective investment schemes and had no borrowings. There is no other material information that will adversely impact the valuation of the Fund. Expense Ratio 0.51% ========= Turnover Ratio 30.05% ========= 1 The expense ratio is computed in accordance with the revised IMAS' guidelines on disclosure of expense ratios dated 25 May Refer to Note 11 for details. 2 The portfolio turnover ratio is calculated in accordance with the formula stated in the "Code on Collective Investment Schemes". Change in investment personnel There were no changes in investment personnel during the reporting period. Soft dollar commissions During the reporting period, no soft dollar commissions were received from brokers

9 Manager s Investment Report (continued) Directors of the Manager Tang Chee Kin Mr Tang has been a Director of the Manager since 18 May He joined CIMB-Principal Asset Management Berhad on 1 October 2004 as the Chief Investment Officer. He has over 20 years of experience in the asset management business. Prior to joining the CIMB- Principal Asset Management Berhad, he was the Chief Investment Officer/Executive Director of CMS Dresdner Asset Management from 1996 to 2004 and was jointly responsible in making regional asset allocation decisions within Asia Pacific ex-japan. He began his career as an investment officer in Rashid Hussain Asset Management in 1987 for 4 years before moving on to CIMB Securities Sdn. Bhd. as an investment executive for 1 year. In 1992, he joined SBB Asset Management as a fund manager until Mr Tang has won numerous awards from Lipper and Standard & Poor s for the funds that he managed. He is the chairman of the Malaysian Association of Asset Managers, a committee member of the FTSE Bursa Malaysia Index Advisory Committee, as well as an invitee in the Executive Committee of the Malaysia International Islamic Financial Centre (MIFC). Mr Tang is a Fellow of the Chartered Institute of Management Accountants (CIMA) United Kingdom. He obtained his Fund Manager s representative s license in Goh Zee Wei Ken Mr Goh joined the Manager as Head, International Investment. Besides this functional role, he is also the CEO and a Director of CIMB-Principal Asset Management (S) Pte Ltd. Before his current appointment, Mr Goh was Director of Investment at APS Asset Management. Mr Goh has also served as Head, Investment Advisory, Asia for MeesPierson as well as Chief Investment Officer, Singapore for Allianz Dresdner Asset Management. Prior to joining Allianz Dresdner Asset Management in 2001, Mr Goh was the Executive Director of Phillip Capital Management during its start-up phase. From 1994 to 2000, Mr Goh served as an Investment Manager with the Government of Singapore Investment Corporation. Mr Goh graduated from the National University of Singapore with a Bachelor of Business Administration (1 st Class Honours). He is a Chartered Financial Analyst (CFA) charter-holder since Appointed Portfolio Managers of the Fund The appointed individuals/ portfolio managers of the Fund who will be primarily performing the investment management functions for the Fund are Mr Goh Zee Wei Ken and Mr Vivek Singh Jamwal. Mr Vivek joined CIMB-Principal Asset Management (S) Pte Ltd as an assistant fund manager in July Prior to joining CIMB Principal Asset Management (S) Pte Ltd, Vivek was working as an analyst with a long-short equity hedge fund in Singapore where he was involved with financial modelling and equity research. He has 6 years of experience in the asset management industry and 7 years of experience in technology consulting for big multinationals. He holds a Masters of Business Administration from INSEAD and a Masters of Science in applied finance from the Singapore Management University

10 Statement by the Manager In the opinion of the directors of CIMB-Principal Asset Management (S) Pte. Ltd, the accompanying financial statements set out on pages 10 to 17, comprising the Statement of Total Return, Statement of Financial Position, Statement of Movements of Unitholders Funds and Statement of Portfolio are drawn up so as to present fairly, in all material respects, the financial position of the Fund as at 31 December and the total return and changes in unitholders funds for the financial period then ended, in accordance with the recommendations of Statement of Recommended Accounting Practice 7 Reporting Framework for Unit Trusts issued by the Institute of Certified Public Accountants of Singapore. At the date of this statement, there are reasonable grounds to believe that the Fund will be able to meet its financial obligations as and when they materialise. For and on behalf of the Directors of CIMB-Principal Asset Management (S) Pte. Ltd., Goh Zee Wei Ken Director/Chief Executive Officer 24 February

11 Statement of Total Return For the six months ended 31 December (unaudited) Investment income Six months ended 31 December (unaudited) Six months ended 31 December 2012 (unaudited) Dividends 357, ,146 Interest Other income 10,165 Total income 367, ,300 Expenses Management fee (63,363) (44,373) Administration fee (9,075) (9,075) Custodian fee (8,434) (6,730) Audit fee Other operating expenses (37,726) (73,263) Total expenses (118,598) (133,441) Net investment income 249, ,859 Net gain/(loss) on value of investments Net realised loss on investments sold (126,610) (571,506) Net change in fair value on investments 484,310 1,581,075 Net foreign exchange loss (8,323) (37,550) 349, ,019 Total return for the period before income tax 598,582 1,137,878 Less: Income tax (10,040) (6,754) Total return for the period after income tax 588,542 1,131,124 ========= ========

12 Statement of Financial Position As at 31 December (unaudited) As at 31 December (unaudited) As at 30 June (audited) Assets Portfolio of investments 17,491,919 19,272,874 Other receivables 46, ,344 Prepaid operating expenses Cash and cash equivalents 135,995 49,778 Total assets 17,674,359 19,526,996 ========= ========= Liabilities Payables and accrued expenses 49,104 49,283 Total liabilities 49,104 49,283 ========= ========= Equity Net assets attributable to unitholders 17,625,255 19,477,713 ========= =========

13 Statement of Movements of Unitholders Funds As at 31 December (unaudited) As at 31 December (unaudited) As at 30 June (audited) Net asset attributable to unitholders at the beginning of financial period/year Operations 19,477,713 10,719,273 Change in net assets attributable to unitholders resulting from operations 588, ,940 Unitholders contributions/(withdrawals) Creation of units 9,613,500 Cancellation of units (1,548,000) (1,096,000) Change in net assets attributable to unitholders resulting from net creation and cancellation of units (1,548,000) 8,517,500 Distributions (893,000) Total (decrease)/increase in net assets attributable to unitholders (1,852,458) 8,758,440 Net asset attributable to unitholders at the end of financial period/year 17,625,255 19,477,713 ========= =========

14 Statement of Portfolio As at 31 December (unaudited) Primary By Geography Equities Quoted Holdings at 31 December Fair value at 31 December Percentage of total net assets attributable to unitholders at 31 December % Australia APA Group 126, , Australia & New Zealand Banking Group 5, , Bendigo and Adelaide Bank 14, , CFS Retail Property Trust Group 79, , Commonwealth Bank Of Australia 2, , Iluka Resources Limited 14, , Mirvac Group 94, , National Australia Bank 6, , Telstra Corporation 198, , Westpac Banking Corporation 32, , Total Australia 3,600, China Agricultural Bank of China 346, , Bank Of China 1,892, , China Citic Bank 305, , China Construction Bank 200, , China Merchants Bank 85, , China Petroleum & Chemical 1,240,000 1,012, China Shenhua Energy 329,000 1,037, Country Garden Holdings 264, , Industrial & Commercial Bank of China 223, , Total China 3,898,

15 Statement of Portfolio (continued) As at 31 December (unaudited) Primary By Geography Equities Quoted Holdings at 31 December Fair value at 31 December Percentage of total net assets attributable to unitholders at 31 December % Hong Kong Bank of East Asia 39, , BOC Hong Kong (Holdings) 45, , China Mobile Limited 13, , CLP Holdings 106, , Link REIT 28, , New World Development 98, , Power Assets Holdings 98, , Sino Land 100, , Total Hong Kong 2,470, Indonesia Perusahaan Gas Negara 1,474, , Telekomunikasi Indonesia 592, , Total Indonesia 647, Singapore Capitamall Trust 88, , Hutchison Port Holdings Trust 1,156, , Keppel Corp 103, , Singapore Press Holdings 256, , Singapore Telecommunications 149, , Total Singapore 3,089, Malaysia Axiata Group Berhad 408, , Malayan Banking Berhad 53, , Maxis Bhd 406, , Total Malaysia 1,924,

16 Statement of Portfolio (continued) As at 31 December (unaudited) Primary By Geography Equities Quoted Holdings at 31 December Fair value at 31 December Percentage of total net assets attributable to unitholders at 31 December % Korea KT Corporation 27, , S-Oil Corporation 13, , Total Korea 1,767, Thailand Advanced Info Service 15,300 93, Total Thailand 93, Portfolio of investments 17,491, Other net assets 133, Net assets attributable to unitholders 17,625,

17 Statement of Portfolio (continued) As at 31 December (unaudited) Primary (continued) Percentage of total net Percentage assets of total net attributable assets to unitholders attributable at to unitholders 31 December at 30 June % % By Geography (Summary) Quoted equities Australia China Hong Kong Indonesia Singapore Malaysia Korea Thailand Portfolio of investments Other net assets Net assets attributable to unitholders

18 Statement of Portfolio (continued) As at 31 December (unaudited) Secondary Fair value at 31 December Percentage of total net Percentage assets of total net attributable assets to unitholders attributable at to unitholders 31 December at 30 June % % By industry Basic materials 1,148, Consumer services 833, Financials 4,733, Industrials 780, Oil and gas services 3,547, Telecommunication 4,281, Utilities 2,167, Portfolio of investments 17,491, Other net assets 133, Net assets attributable to unitholders 17,625,