Aberdeen Asia Pacific Equity Fund

Transcription

1 Aberdeen Asia Pacific Equity Fund Annual Report January 1, 2017 to December 31, 2017 Please study product s features, conditions and relevant risks before making investment decision. Investment in a foreign investment fund (FIF) is subject to currency risk and may get a return lower than the amount initially invested. Currency is hedged upon the Fund Manager s discretion. Presently, no currency hedge is made by the Fund. Aberdeen Asset Management Company Limited - Certified by CAC/Under supervision by the parent company to comply with law. 581

2 About the Fund Investment Policy Mainly invest in units of a foreign fund (Singapore), Aberdeen Pacific Equity Fund (Master Fund), with net exposure at least 80% of its NAV, in average, in any accounting period. Aberdeen Pacific Equity Fund (Master Fund) is a diversified portfolio of Asia-Pacific equities excluding Japanese equities. Dividend Policy No dividend payout, income reinvested 582

3 Mutual Fund Supervisor Report To: Unit holders of the Aberdeen Asia Pacific Equity Fund Whereas Citibank, N.A. Bangkok, the Mutual Fund Supervisor of the Aberdeen Asia Pacific Equity Fund which is managed by Aberdeen Asset Management Company Limited, has performed duties as the Mutual Fund Supervisor for the period beginning 1 January 2017 to 31 December We have prepared this report base on given sources of information as of the date hereof and believed by us to be reliable, but we does not warrant the accuracy or completeness of the same and expressly disclaims liability for any error or omission (including any third party liability). There can be no assurance that future event or results will be consistent with any such report. Neither us nor any of its directors, employees or agents guarantees the repayment of capital, the performance or the distribution of the funds and be liable for any loss as any action or omission made in reliance of this report. In our opinion, Aberdeen Asset Management Company Limited has performed its duties in managing the Fund correctly and appropriately according to the objectives specified in the Fund management project, which was approved by the Office of the Securities and Exchange Commission and under the Securities Exchange Act B.E Citibank, N.A. - Bangkok (Kris Antakorn) (Joedjun Sunantapongsak) Citibank, N.A. Mutual Fund Supervisor Citibank, N.A Bangkok. 24 January

4 Fund Performance As of December 29, 2017 Net Asset Value 1,408,065, Baht NAV per unit Baht Period Return Benchmark Fund Standard Deviation Benchmark Standard Deviation Year to date 20.13% 25.01% 7.48% 19.01% 3 Months 4.20% 5.54% 0.42% 0.68% 6 Months 4.99% 9.83% 0.45% 1.62% 12 Months 20.13% 25.01% 7.48% 19.01% 3 Years 4.83% 9.91% 11.63% 11.93% 5 Years 3.90% 8.71% 10.35% 11.03% 10 Years 3.11% 3.61% 16.74% 19.21% Since Inception (25 Aug 05) 6.00% 7.12% 16.52% 18.99% Annualized return for the period from 1 year Benchmark - MSCI AC Asia Pacific ex Japan TR Source: Aberdeen Asset Management Company Limited Note: The MSCI AC Asia Pacific Ex Japan Index is a capitalisation weighted index designed by Morgan Stanley Capital International Inc. that monitors the performance of stocks from the Asia Pacific region excluding the country of Japan. Past performance/performance comparison relating to a capital market product is not a guarantee of future results. The fund performance document is prepared in accordance with AIMC standards. Please study product s features, conditions and relevant risks before making investment decision. Investment in a foreign investment fund (FIF) is subject to currency risk and may get a return lower than the amount initially invested. Currency is hedged upon the Fund Manager s discretion. Presently, no currency hedge is made by the Fund. 584

5 Fund s Direct Expenses For the period from January 1, 2017 to December 31, 2017 Fund's Direct Expenses Amount (Baht) % of Net Asset Value** Management Fee 25,189, Trustee Fee 431, Registrar Fee 1,583, Advisory Fee Other Expenses 299, Total* 27,503, * Excluding brokerage and other fees incurred from trading securities but inclusive of Value Added Tax. ** Average Net Asset Value 1,344,942, Baht. 585

6 Aberdeen Asia Pacific Equity Fund Investment Portfolio As of 31 December 2017 NO. OF UNITS FAIR VALUE % OF NAV UNIT TRUST Aberdeen Pacific Equity Fund 9,206, ,380,547, TOTAL UNIT TRUST 1,380,547, OPERATING DEPOSITS Citibank N.A. - Trustee Account 24,931, TOTAL OPERATING DEPOSITS 24,931, OTHER ASSETS 5,269, OTHER LIABILITIES (2,752,866.72) (0.20) TOTAL NET ASSET VALUE 1,407,995, Issuer Rating of Deposit Bank International Rating Local Rating Bangkok Bank PCL Baa1(Moody s)/ BBB+(S&P)/ BBB+(Fitch) AA+(Fitch) TISCO Bank PCL - A(Tris) The Siam Commercial Bank PCL Baa1(Moody s)/ BBB+(S&P)/ BBB+(Fitch) AA+(Fitch) Citibank, N.A. (U.S.) A1(Moody s)/ A+(S&P)/ A+(Fitch) - United Overseas Bank (Thai) PCL Baa1(Moody s)/ A-(Fitch) AAA(Fitch) As of December 31,

7 ABERDEEN ASIA PACIFIC EQUITY FUND FINANCIAL STATEMENTS AND AUDITOR S REPORT FOR EACH OF THE YEARS ENDED DECEMBER 31,

8 Auditor s Report To the Unitholders of Aberdeen Asia Pacific Equity Fund Opinion I have audited the financial statements of Aberdeen Asia Pacific Equity Fund ( the Fund ), which comprise the balance sheet and the details of investments as at December 31, 2017, and the statement of income, statement of changes in net assets, statement of cash flows and significant financial information for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In my opinion, the financial statements present fairly, in all material respects, the financial position of Aberdeen Asia Pacific Equity Fund as at December 31, 2017, and its financial performance, changes in its net assets, cash flows and significant financial information for the year then ended in accordance with Thai Financial Reporting Standards. Basis for Opinion I conducted my audit in accordance with Thai Standards on Auditing. My responsibilities under those standards are further described in the Auditor s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Fund in accordance with the Federation of Accounting Professions under the Royal Patronage of his Majesty the King s Code of Ethics for Professional Accountants together with the ethical requirements that are relevant to my audit of the financial statements, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Other Information Management is responsible for the other information. The other information comprises information including in annual report but does not include the financial statements and my auditor s report thereon, which is expected to be made available to me after that date. My opinion on the financial statements does not cover the other information and I do not and will not express any form of assurance conclusion thereon. In connection with my audit of the financial statements, my responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to materially misstated. When I read the annual report, if I conclude that there is a material misstatement therein, I am required to communicate the matter to management to make correction the misstatement. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Thai Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Fund s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so. Auditor s Responsibilities for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Thai 588

9 Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Thai Standards on Auditing, I exercise professional judgment and maintain professional skepticism throughout the audit. I also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor s report. However, future events or conditions may cause the Fund to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. I communicate with management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. The engagement partner responsible for the audit resulting in this auditor s report is Prawit Viwanthananut. Prawit Viwanthananut Certified Public Accountant Registration Number 4917 PV Audit Co., Ltd. Bangkok, 5 March

10 ABERDEEN ASIA PACIFIC EQUITY FUND BALANCE SHEET AS AT 31 DECEMBER 2017 ASSETS Investments at fair value (at cost : Baht 1,052,164, in 2017 and Baht 1,137,713, in 2016) Baht Note , 7, 9, 10 1,380,547, ,292,103, Cash at bank 6 24,931, ,945, Accounts receivable From interest 8, , From sales of investment units 3,504, Other receivable 9, 10 1,728, ,634, LIABILITIES Total Assets 1,410,721, ,322,692, Accounts payable from redemption of investment units 149, , Accrued expenses 9 2,511, ,336, Other liabilities 65, , Total Liabilities 2,726, ,553, NET ASSETS 1,407,995, ,320,139, NET ASSETS : Capital received from unitholders 685,844, ,059, Retained earnings (deficit) Equalization account (458,522,428.91) (384,447,018.36) Retained earnings from operations 4 1,180,673, ,526, Net Assets 1,407,995, ,320,139, Net asset value per unit Investment units sold at the end of the year (units) 68,584, ,205, The accompanying notes are an integral part of these financial statements. 590

11 ABERDEEN ASIA PACIFIC EQUITY FUND THE DETAILS OF INVESTMENTS AS AT 31 DECEMBER 2017 Percent of Security Name Units Fair Value Investments (Baht) Investments in Foreign Unit Trusts Unit Trusts Singapore Aberdeen Pacific Equity Fund* (SGD CLASS) 9,206, ,380,547, TOTAL INVESTMENTS (at cost : Baht 1,052,164,780.79) 1,380,547, * Aberdeen Pacific Equity Fund (SGD CLASS) has a policy to invest in Asia Pacific equities excluding Japan equities. The accompanying notes are an integral part of these financial statements. 591

12 ABERDEEN ASIA PACIFIC EQUITY FUND THE DETAILS OF INVESTMENTS AS AT DECEMBER 31, 2016 Percent of Security Name Units Fair Value Investments (Baht) Investments in Foreign Unit Trusts Unit Trusts Singapore Aberdeen Pacific Equity Fund* (SGD CLASS) 10,441, ,292,103, Total Investment in Unit Trusts 1,292,103, TOTAL INVESTMENTS (Cost at Baht 1,137,713,615.11) 1,292,103, * Aberdeen Pacific Equity Fund (SGD CLASS) has a policy to invest in Asia Pacific equities excluding Japan equities. The accompanying notes are an integral part of these financial statements. 592

13 ABERDEEN ASIA PACIFIC EQUITY FUND STATEMENT OF INCOME FOR THE YEAR ENDED 31 DECEMBER 2017 Baht Note INVESTMENT INCOME 3 Interest income 15, , Other income 8, 9 19,752, ,083, Total income 19,768, ,098, EXPENSES 3 Management fee 5, 9 25,189, ,389, Trustee fee 5 431, , Registrar fee 5, 9 1,583, ,533, Audit fee 61, , Other expenses 238, , Total expenses 27,503, ,551, Net loss from investments (7,735,650.19) (7,453,043.42) Net gain on investments 3 Net realized gain on investments 81,889, ,225, Net unrealized gain on investments 173,992, ,943, Total net realized and unrealized gain on investments 255,882, ,168, Increase in net assets resulting from operations 248,147, ,715, The accompanying notes are an integral part of these financial statements. 593

14 ABERDEEN ASIA PACIFIC EQUITY FUND STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 DECEMBER 2017 Baht Increase (decrease) in net assets from operations during the year Net loss from investments (7,735,650.19) (7,453,043.42) Net realized gain on investments 81,889, ,225, Net unrealized gain on investments 173,992, ,943, Net increase in net assets resulting from operations 248,147, ,715, Increase (decrease) in capital received from unitholders during the year Issuance of investment units during the year 464,386, ,945, Redemption of investment units during the year (624,677,584.93) (435,993,639.18) Net decrease in capital received from unitholders (160,291,191.69) (149,047,748.95) Increase (decrease) in net assets during the year 87,855, (126,332,014.08) Net assets at the beginning of the year 1,320,139, ,446,471, Net assets at the end of the year 1,407,995, ,320,139, Units Changes of investment units (at Baht 10 each) Investment units at the beginning of the year 77,205, ,989, Add : Investment units issued during the year 23,915, ,001, Less : Investment units redeemed during the year (32,537, ) (26,784, ) Investment units at the end of the year 68,584, ,205, The accompanying notes are an integral part of these financial statements. 594

15 ABERDEEN ASIA PACIFIC EQUITY FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2017 Cash flows from operating activities Baht Increase in net assets from operations 248,147, ,715, Adjustments to reconcile the increase in net assets from operations to net cash provided by (used in) operating activities Purchases of investments (228,637,307.73) (136,711,003.47) Sales of investments 396,076, ,252, Increase in accounts receivable from interest (33.30) (1,427.30) (Increase) decrease in accounts receivable from sales of investment units (3,504,999.60) 257, (Increase) decrease in other receivable (94,796.71) 165, Decrease in accounts payable from redemption of investment units (6,161.01) (5,450,792.80) Increase (decrease) in accrued expenses 175, (205,830.73) Increase (decrease) in other liabilities 4, (11,324.63) Net realized gain on investments (81,889,960.95) (19,225,509.82) Net unrealized gain on investments (173,992,772.89) (10,943,268.47) Net cash provided by operating activities 156,276, ,842, Cash flows from financing activities Proceed from issuance of investment units during the year 464,386, ,945, Redemption of investment units during the year (624,677,584.93) (435,993,639.18) Net cash used in financing activities (160,291,191.69) (149,047,748.95) Net increase (decrease) in cash at bank (4,014,823.14) 5,794, Cash at bank at the beginning of the year 28,945, ,151, Cash at bank at the end of the year 24,931, ,945, The accompanying notes are an integral part of these financial statements. 595

16 ABERDEEN ASIA PACIFIC EQUITY FUND SIGNIFICANT FINANCIAL INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2017 Baht Information on results from operations (per unit) Net asset value at the beginning of the year Income (loss) from investing activities Net loss from investments * (0.1112) (0.0951) (0.0980) (0.1014) (0.0883) (0.0781) Net realized gain on investments ** Net unrealized gain (loss) on investments ** (3.0305) (0.6583) (1.0173) Total income (loss) from investing activities (1.2911) Net asset value at the end of the year Ratio of net profit (loss) to average net asset value during the year (%) (5.94) Significant financial ratios and additional information Net asset value at the end of the year (Thousand Baht) 1,407,995 1,320,139 1,446,471 2,228,408 1,795,767 2,112,740 Ratio of total expenses to average net asset value during the year (%) Ratio of total investment income to average net asset value during the year (%) *** Ratio of weighted average investment turnover to average net asset value during the year (%) **** Supplementary information * Based on average investment units outstanding throughout year. ** The amounts reported may not accord with the change in aggregate gains and losses in securities during the year because of the timing of sales and purchases investment units in relation to fluctuating market values during the year. *** Income from investments consists of investment income and net realized gain (loss) from sales of investments. **** This is not included cash at bank and investment in promissory notes and trading investments should be the independent trading transactions which are not included repurchase agreements or resale agreements. The accompanying notes are an integral part of these financial statements. 596

17 ABERDEEN ASIA PACIFIC EQUITY FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER NATURE OF ABERDEEN ASIA PACIFIC EQUITY FUND Aberdeen Asia Pacific Equity Fund ( the Fund ) was registered with the Office of the Securities and Exchange Commission ( SEC ) on 25 August 2005 with the registered value of Baht 5,000 million (divided into 500 million investment units at Baht 10 each). Aberdeen Asset Management Company Limited ( the Management Company ) serves as the Fund s manager and Investment Unit Registrar and Citibank, N.A. Bangkok Branch serves as the Fund s Trustee. The Fund is an open-ended feeder fund with no project life. The Fund mainly invests in a foreign unit trust, Aberdeen Pacific Equity Fund managed by Aberdeen Asset Management Asia Limited, at least 80 percent of the Fund s net asset value. The Fund s policy is not to pay dividend to the unitholders. 2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS The financial statements of the Fund are prepared in accordance with Thai Financial Reporting Standards ( TFRS ) including related interpretations and accounting guidance promulgated by the Federation of Accounting Professions in accordance with generally accepted accounting principles in Thailand. In addition, the financial statements have been prepared in accordance with Thai Accounting Standard No. 106 Accounting for Investment Companies. The financial statements of the Fund have been prepared in the Thai language and expressed in Thai Baht. Such financial statements have been prepared for domestic reporting purposes. For the convenience of the readers not conversant with the Thai language, an English version of the financial statements has been provided by translating from the Thai version of the financial statements. Adoption of New and Revised Thai Financial Reporting Standards 1. Financial reporting standards that became effective in the current year During the year, the Fund has adopted the revised (revised 2016) and new Thai Accounting Standards, Thai Financial Reporting Standards, Thai Standard Interpretations, Thai Financial Reporting Interpretations and accounting guidance issued by the Federation of Accounting Professions which become effective for fiscal year beginning on or after 1 January These financial reporting standards were aimed at alignment with the corresponding International Financial Reporting Standards, with most of the changes directed towards revision of wording and terminology, and provision of interpretations and accounting guidance to users of standards. The adoption of these financial reporting standards does not have any significant impact on the Fund s financial statements. 2. Financial reporting standards that will become effective in the future During the year, the Federation of Accounting Professions issued a number of the revised (revised 2017) Thai Accounting Standards, Thai Financial Reporting Standards, Thai Standard Interpretations and Thai Financial Reporting Interpretations which are effective for fiscal year beginning on or after 1 January These financial reporting standards were aimed at alignment with the corresponding International Financial Reporting Standards with most of the changes directed towards revision of wording and terminology, and provision of interpretations and accounting guidance to users of standards. The management of the Fund has assessed the effects of these revised Thai Accounting Standards, Thai Financial Reporting Standards, Thai Standard Interpretations and Thai Financial Reporting Interpretations and believes that they will not have any significant impact on the financial statements for the year in which they are initially applied. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investment Measurement Investments are recognized as assets with the cost of investment at the date on which the Fund has the right on investments. The costs of investments are comprised with the purchase price and all direct expenses which the Fund paid to get those investments. - Investments in units of foreign mutual fund are stated at fair value by using the latest value of net assets per unit on the date of valuation. Net unrealized gains or losses arising from their revaluation of investments to be fair value are reflected in the statement of income on the measurement date. 597

18 The weighted average method is used to determine the cost of each security at the time of sales. Revenues and Expenses Recognition Interest income is recognized as interest accrues, based on the effective rate method. Other income and expenses are recognized on an accrual basis. Gain or loss on trading of securities is recorded as revenues or expenses on trading date. Accounts in Foreign Currencies Accounts in foreign currencies are converted into Baht at the rates of exchange on the transaction date. Assets and liabilities in foreign currencies at the balance sheet date are converted into Baht at the rates of exchange on that date. Gain or loss on conversion is included in the statements of income. Use of Accounting Judgments and Estimates Preparation of financial statements in conformity with generally accepted accounting principles requires management to make judgments and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities. Actual results may differ from those estimates. The judgments and estimates are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively. 4. RETAINED EARNINGS AT THE BEGINNING OF THE YEAR Accumulated net loss from investments Baht (accumulated since 25 August 2005) (119,038,846.81) (111,585,803.39) Accumulated net realized gain on investments (accumulated since 25 August 2005) 897,174, ,949, Accumulated net unrealized gain on investments (accumulated since 25 August 2005) 154,390, ,446, Retained earnings at the beginning of the year 932,526, ,810, MANAGEMENT, TRUSTEE AND REGISTRAR FEES Expenses Percentage Management fee Trustee fee Registrar fee Not more than 1.75 percent per annum to the Fund s net assets Not more than 0.05 percent per annum to the Fund s net assets Not more than 0.11 percent per annum to the Fund s net assets 6. CASH AT BANK Baht Interest Rate (%) Bank Citibank, N.A. Bangkok Branch 24,931, ,945, INVESTMENT TRADING INFORMATION The Fund had investment trading transactions for the year ended 31 December 2017 excluding investments in promissory notes, amounted of Baht million (Year 2016 : Baht million) which is the rate of percent (Year 2016 : percent) of the average net asset value during the year. 8. OTHER INCOME Other income includes the rebate in management fee of the Aberdeen Pacific Equity Fund to the Fund at the rate of 1.50 percent per annum of investment in Aberdeen Pacific Equity Fund. The rebate in management fee shall be invested into Aberdeen Pacific Equity Fund. 598

19 9. RELATED PARTY TRANSACTIONS During the year, the Fund had significant business transactions with the Management Company and other enterprise, which have the same shareholders and/or directors as the Management Company and the Fund. Such transactions for the years ended 31 December 2017 and 2016 were summarized belows: Aberdeen Asset Management Company Limited Baht Pricing Policy Management fee 25,189, ,389, The basis stated in the prospectus Registrar fee 1,583, ,533, The basis stated in the prospectus Aberdeen Asset Management Asia Limited Purchases of investments 228,637, ,711, Market price Sales of investments 396,076, ,252, Market price Other income 19,723, ,083, See Note 8 As at 31 December 2017 and 2016, the Fund had the significant outstanding balances with the related companies as follows: Aberdeen Pacific Equity Fund Investments 1,380,547, ,292,103, Aberdeen Asset Management Company Limited Accrued management fee 2,190, ,102, Accrued registrar fee 137, , Aberdeen Asset Management Asia Limited Other receivable 1,728, ,634, Baht 10. DISCLOSURE OF FINANCIAL INSTRUMENTS The Fund does not speculate in or engage in the trading of any derivative financial instruments. Fair Value As the majority of financial assets and financial liabilities are short-term, and most financial assets are marketable securities, which are presented at fair value based on their quoted market prices, the Fund believes that their carrying value does not materially differ from their fair value. Interest Rate Risk Interest rate risk represents the probability that debt instrument may increase or decrease in value due to the general fluctuation in interest rates in the market. Debt instrument will decrease in value when the market interest rate increases and will increase in value when the market interest rate decreases. The longer the life of debt instrument is, the more sensitive their prices to the interest rate fluctuation. Credit Risk The Fund is exposed to the risk of nonperformance of the financial instruments obligations by counterparties since the Fund has accounts receivable. However, such financial assets are due in the short-term, so the Fund does not anticipate material losses from its debt collection. 599

20 Foreign Currency Risk As at 31 December 2017 and 2016, the Fund had foreign currency accounts without hedging as follows: Market Risk Accounts Investments (fair value) 56,592, ,180, Other receivable 70, , The Fund is exposed to the risk from changes in market prices with respect its investments in foreign unit trust. The returns on investment fluctuate depending on the economic and political situation including the status of financial and capital markets. The mentioned situations may affect the operation of the financial instruments issuer in a positive or negative way depending on the kind of business of those issuers and how they relate with fluctuating market, which may arise to increase or decrease of the financial instruments market price. Risk Management The Fund manager of Aberdeen Pacific Equity Fund will analyze any factor which may affect price and the said fund has a policy to diversity its investments in Asia Pacific equities excluding Japan equities. 11. APPROVAL OF THE FINANCIAL STATEMENTS These financial statements have been approved for issue by the authorized persons of the Fund on 5 March SGD 600

21 List of Connected Person with transaction Aberdeen Asia Pacific Equity Fund Aberdeen Asset Management Asia Limited Period of January 1 to December 31, 2017 Report on holding exceeding one-third of retail fund Aberdeen Asia Pacific Equity Fund has no one group of person holding exceeding one-third of fund Data as of December 31, 2017 Portfolio Turnover Ratio (PTR) N/A Report on non-compliance of investment limit None Period of January 1 to December 31, 2017 For more information, investors can find out the list of connected person with transaction and report on holding exceeding one-third of retail fund directly with Aberdeen Asset Management Company Limited or through company s website at 601

22 Amendment of the Commitment between unitholders and the Asset Management Company Aberdeen Asset Management Co., Ltd. would like to inform you of the project amendments as made by fast track method and approved by the Office of the SEC on 16 January 2017 with effective as from 16 January 2017 onwards which can be summarized below. Summary of the amendments 1. Revising the fund investment criteria to be in accordance with the Notification of the Capital Market Supervisory Board No. Tor Nor 87/2558 Re: the investment of the fund The amendment is made to the project of all the above mentioned funds except the Aberdeen Long Term Equity Fund 70/30 2. Revising the wording regarding the management of the conflict of interest to be in accordance with the Notification of the Office of the SEC No. Sor Tor 14/2558 Re: the principle of the conflict of interest management. The amendment is made to the project of all the above mentioned funds. 3. Adding the wording regarding the reservation of right to revise the benchmark to be in accordance with the Notification of the Association of Investment Management Companies No. Sor Jor Kor Ror 1/2559 Re: the Standard of the Fund Benchmark Evaluation The amendment is made to the project of the Open Ended Aberdeen Growth Fund, Open Ended Aberdeen Cash Creation Fund, Open Ended Aberdeen Flexible Capital Fund, Open Ended Aberdeen Siam Leaders Fund, Open Ended Aberdeen Long Term Equity Fund, Open Ended Aberdeen Value Fund, Open Ended Aberdeen Thai Equity Dividend Fund, Open Ended Aberdeen Small Cap Fund, Open Ended Aberdeen Smart Income Retirement Mutual Fund, Open Ended Aberdeen Smart Capital Retirement Mutual Fund. 4. Revising the wording regarding the tax benefit conditions to be in accordance with the circulation letter of the Office of the SEC No Kor Lor Tor Kor Nor (Vor).16/2559 Re: Mutual Understanding of the Period Extension for the Long Term Investment Fund The amendment is made to the project of the Aberdeen Long Term Equity Fund. Aberdeen Asset Management Co., Ltd. would like to inform you of the project amendments as made by fast track method and approved by the Office of the SEC on May 19, 2017 with effective as from May 17, 2017 onwards which can be summarized below Summary of the amendments 1. Revising wording regarding the fund investment criteria, e.g. the definitions, the qualifications of Bill of Exchange, Promissory Note and CIS investment unit invested by the fund and revising wording in part of the investment limit to be in accordance with the Notification of the Capital Market Supervisory Board No. Tor Nor 14/2560 Re: the investment of the fund (No.4) The amendment is made to the project of all the above mentioned funds. 2. Adding the wording not for retail investors after the name of the fund to be in accordance with the Notification of the Capital Market Supervisory Board No. Tor Nor 35/2560 Re: The fund establishment for retail investor and non-retail investors and the execution of agreements for management of the private fund The amendment is made to the project of Aberdeen Euro High Yield Bond Fund. 3. Revising wording regarding the settlement period of redemption payment to unitholder which will not include the holiday of the foreign country to be in accordance with the Notification of the Capital Market Supervisory Board No. Tor Nor 87/2558 Re: the investment of the fund The amendment is made to the project of the Open Ended Aberdeen Asia Pacific Equity Fund, Open Ended Aberdeen China Gateway Fund, Open Ended Aberdeen American Growth Fund, Open Ended Aberdeen Euro High Yield Bond Fund, Open Ended Aberdeen World Opportunities Fund, Open Ended Aberdeen European Growth Fund, Open Ended Aberdeen Emerging Opportunities Bond, Open Ended Aberdeen Global Emerging Growth Fund, Open Ended Aberdeen Japan Opportunities Fund, Open Ended Aberdeen Asia Pacific Equity Retirement Mutual Fund, Open Ended Aberdeen India Growth Fund, Open Ended Aberdeen American Growth Smaller Companies Fund. 602

23 Schedule of Commitment Amendment to the Open-ended Aberdeen Asia Pacific Equity Fund Subject 14. Issuance and Delivery of Unitholder Certificates : Old Conditions for issuing unitholder certificates and delivery periods : 1. After the initial public offering, the Registrar will proceed to register the purchasers who have been allocated fund in the unitholders register book and to issue the unitholder certificates for delivery by post to the unitholders within 15 days from the end of the initial offering period. 2. In the case of the purchase of fund units are done after the first offering, the Registrar will register the purchasers as the unitholders in the register book and proceed to deliver unitholder certificates by post within 5 business days from the date of purchase. 3. If there is an error in the unitholder certificates, unitholders must file a complaint within 7 working days from the date of receiving the unitholder certificates. 4. The Management Company shall proceed to issue unitholder certificates to unitholder every time an order is made to purchase or redeem fund units. Therefore, the Management Company shall hold the remaining balance of fund units listed in the register book and in the unitholder certificates that sent to unitholders at present and accurate. 5. The Management Company, arranged by the Registrar will proceed to issue and deliver update transaction report at the last working day of every month to unitholders as listed in the fund register book on the last working day of every month. New Conditions for issuing unitholder certificates and delivery periods : 1. After the initial public offering, the Registrar will proceed to register the purchasers who have been allocated fund in the unitholders register book and to issue the unitholder certificates for delivery by post to the unitholders within 15 days from the end of the initial offering period. Reason To facilitate the unitholders. 2. In the case of the purchase of fund units are done after the first offering, the Registrar will register the purchasers as the unitholders in the register book and proceed to deliver unitholder certificates by post within 5 business days from the date of purchase. However, the Registrar may change the method of delivery of such documents by electronic mail to the electronic mail address provided by the unitholders, which shall be notified to the unitholders at least 5 days before proceeding unless specified by the unitholders to send by post or unitholders do not provide electronic mail address to the Management Company. 3. If there is an error in the unitholder certificates, unitholders must file a complaint within 7 working days from the date of receiving the unitholder certificates. 4. The Management Company shall proceed to issue unitholder certificates to unitholder every time an order is made to purchase or redeem fund units. Therefore, the Management Company shall hold the remaining balance of fund units listed in the register book and in the unitholder certificates that sent to unitholders at present and accurate. 5. The Management Company, arranged by the Registrar will proceed to issue and deliver update transaction report at the last working day of every month to unitholders as listed in the fund register book on the last working day of every month. Period of January 1, 2017 to December 31,

24 Mutual Fund Manager List of Aberdeen Asset Management Company Limited No. Name / Surname Responsibility Fund Remark Mr. Adithep Vanabriksha Mr. Orsen Karnburisudthi Mr. Pongtharin Sapayanon Ms. Thanya Mahawattanaungkoon Mr. Chalermrat Panjawatanakul** Mr. Pochara Thimasan* Mr. Ana Paepipatmongkol*** * Performing duty as a fund manager until 31 January 2017 ** Performing duty as a fund manager as from 28 March 2017 *** Performing duty as a fund manager as from 22 December 2017 Open-Ended Aberdeen Growth Fund Open-Ended Aberdeen Flexible Capital Fund Open-Ended Aberdeen Siam Leaders Fund Open-Ended Aberdeen Small Cap Fund Open-Ended Aberdeen Thai Equity Dividend Fund Open-Ended Aberdeen Smart Capital-Retirement Mutual Fund Open-Ended Aberdeen Smart Income-Retirement Mutual Fund Open-Ended Aberdeen Asia Pacific Equity -Retirement Mutual Fund Open-Ended Aberdeen Long Term Equity Fund Open-Ended Aberdeen Cash Creation Fund Open-Ended Aberdeen Value Fund Open-Ended Aberdeen Asia Pacific Equity Fund Open-Ended Aberdeen Emerging Opportunities Bond Fund Open-Ended Aberdeen European Growth Fund Open-Ended Aberdeen Global Emerging Growth Fund Open-Ended Aberdeen World Opportunities Fund Open-Ended Aberdeen China Gateway Fund Open-Ended Aberdeen American Growth Fund Open-Ended Aberdeen India Growth Fund Open-Ended Aberdeen Income Creation Fund Open-Ended Aberdeen Japan Opportunities Fund Open-Ended Aberdeen Euro High Yield Bond Fund not for retail investors Open-Ended Aberdeen American Growth Smaller Companies Fund Open-Ended Aberdeen Long Term Equity Fund 70/30 Information during January 1 December 31,

25 List of Soft Commission The Company does not use the research papers from brokerage houses to help with the investment decisions. Voting right and voting right exercising Investors should examine guidance on voting right and voting right exercising via Asset Management Website 605