JF Funds. Unaudited Semi-Annual Report 31 March 2011

Transcription

1 JF Funds Unaudited Semi-Annual Report 31 March 2011

2 These reports do not constitute an offer of units in any funds forming the subject matter of this document. Subscriptions are only valid if made on the basis of the current explanary memoranda (or equivalent), supplemented by the most recent financial reports. Approved for issue in the UK Professional Invesrs only by JPMorgan Asset Management Marketing Limited, Registered in England No , Registered Office 125 London Wall, London EC2Y 5AJ, which is authorised and regulated by the Financial Services Authority. JPMorgan Asset Management Marketing Limited also provides information on JF Funds. UK Invesrs should note that these products are unregulated collective investment schemes within the meaning of the UK Financial Services and Markets Act The normal protections provided by the UK regulary system do not apply and compensation under the Financial Services Compensation Scheme is not available. There is no right cancel an agreement purchase units in the funds under the Rules of the Financial Services Authority. Although JPMorgan Asset Management (Europe) S.à r.l., under certain administrative services agreements, provides services the funds covered in this document, the funds are not subject the laws of Luxembourg nor are they subject supervision by any supervisory authority in Luxembourg.

3 CONTENTS Page Asia Pacific Regional Equity Funds JF ASEAN Fund... 1 JF Asia Domestic Opportunities Fund... 8 JF Asia New Frontiers Fund JF Asia Property Fund JF AsiaOne Fund JF Eastern Fund JF Eastern Smaller Companies Fund JF Five Elements Fund JF Greater China Smaller Companies Fund JF Pacific Securities Fund JF Pacific Smaller Companies Fund JF Pacific Technology Fund Asia Pacific Single Country Equity Funds JF Australia Fund JF China New Generation Fund JF China Pioneer A-Share Fund JF India Fund JF India Smaller Companies Fund JF Indonesia Fund JF Korea Fund JF Malaysia Fund JF Philippine Fund JF Thailand Fund JF Vietnam Opportunities Fund Japan Equity Funds JF Japan (Yen) Fund JF Japan OTC Fund JF Japan Smaller Company (Yen) Fund JF Japan Technology Fund Global Equity Funds JPM Evergreen Fund JPM Global Property Income Fund Bond and Currency Funds JF Asian Total Return Bond Fund JF Money Fund - HK$ JPM Global Bond and Currency Fund

4 JF ASEAN FUND Distribur Status The Fund has been certified by HMRC in the UK as a distributing fund in respect of the period from 1 January September 2009 (a final application has been made for distributing fund certification for the period from 1 Ocber September 2010). The principal effect of this certification is that for unitholders resident or ordinarily resident in the UK for taxation purposes any gains accruing on the sale, redemption or other disposal of units during the period will be taxed in the UK as a capital gain and not as income. This treatment will continue under the new UK reporting fund regime provided the Fund does not invest more than 5% of its assets in other offshore funds. There will be no need formally apply for reporting fund status as the Fund is transparent for UK tax purposes and therefore considered out of scope of the requirements of this new regime. As noted, the Fund is transparent for UK income tax purposes and UK invesrs are subject UK capital gains tax on disposal of their units. UK invesrs are subject tax on their share of income of the Fund on an arising basis. Information has been provided UK invesrs of the amount of their share of the underlying income, expenses and overseas tax suffered. Investment Portfolio As at 31 March 2011 (Unaudited) Listed/Quoted Investments (94.1%) Equities (94.1%) Holding Fair % of value net assets Indonesia (14.6%) Aneka Tambang 40,000,000 10,450, Astra Intl 3,974,000 25,968, Bank Danamon Indonesia 21,900,000 16,347, Bank Mandiri 77,024,113 59,708, Bank Negara Indonesia 91,092,161 41,322, Bank Rakyat Indonesia Persero 21,000,000 13,867, Charoen Pokphand Indonesia 30,000,000 6,890, Indika Energy 57,703,000 26,010, Indo Tambangraya Megah 7,138,500 37,875, Medco Energi Intl 58,016,000 18,988, Telekomunikasi Indonesia 'B' 25,476,000 21,211, United Tracrs 15,250,000 37,917, (Continued) Holding Fair % of value net assets Malaysia (16.0%) CIMB Group Hldgs 21,550,000 58,273, Gamuda Bhd (CDS) 17,600,000 22,430, Genting Bhd (CDS) 18,283,700 66,524, Genting Malaysia (CDS) 31,461,100 38,225, IJM Corp (CDS) 10,420,000 21,777, IOI Corp (CDS) 6,388,400 12,128, Kuala Lumpur Kepong (CDS) 3,400,000 23,731, Lafarge Malayan Cement (CDS) 2,561,900 6,242, Malayan Banking (CDS) 7,823,792 23,119, Petronas Chemicals Group 22,004,800 52,528, Tenaga Nasional (CDS) 285, , UEM Land Hldgs 22,797,200 21,301, Philippines (1.2%) Alliance Global Group 34,400,000 9,432, Banco de Oro Unibank 7,440,000 8,880, Megaworld Corp 160,000,000 7,741, Singapore (41.1%) Cache Logistics 28,038,000 20,908, CapitaLand Ltd 17,020,000 44,423, City Developments 3,470,000 31,603, DBS Group Hldgs (CDP) 5,949,491 68,911, Fibrechem Technologies 27,671, Fraser & Neave (CDP) 4,800,000 22,848, Genting Singapore 44,807,000 72,871, Guocoland Ltd (CDP) 7,653,000 14,753, Hotel Properties 4,600,000 9,050, Indofood Agri Resources 10,100,000 17,868, Keppel Corp (CDP) 10,710, ,828, Keppel Land 9,344,658 33,286, Mapletree Industrial Trust 12,753,000 10,623, Neptune Orient Lines (CDP) 15,781,000 24,288, Noble Group (CDP) 24,070,090 40,864, Oversea-Chinese Banking Corp (CDP) 10,035,290 76,110, Overseas Union Enterprise (CDP) 11,454,000 28,351, Sembcorp Industries (CDP) 2,500,000 10,313, Sembcorp Marine (CDP) 3,493,000 16,127, Singapore Airlines (CDP) 2,400,000 26,008, Singapore Exchange 2,238,000 13,919, Singapore Telecommunication (CDP) 31,400,000 75,230, Straits Asia Resources 5,500,000 10,908, United Overseas Bank (CDP) 5,864,175 87,369, Wilmar Intl 6,200,000 26,856,

5 JF ASEAN FUND Investment Portfolio (Continued) As at 31 March 2011 (Unaudited) Holding Fair % of value net assets Thailand (21.2%) Amata Corp (F) 7,607,600 3,873, Bangkok Bank NVDR 11,812,000 66,978, Banpu Public Co (F) 1,563,000 39,378, Charoen Pokphand Foods (F) 45,880,300 38,682, Indorama Ventures (F) 7,380,000 12,749, Kasikornbank Public Co NVDR 6,925,000 29,078, Krung Thai Bank (F) 72,100,000 43,624, PTT Aromatics & Refining (F) 19,610,000 24,151, PTT Chemical (F) 3,107,000 15,203, PTT Exploration & Production (F) 3,430,000 20,413, PTT Public Co (F) 3,992,600 46,599, Siam Cement (F) 400,500 5,005, Siam Cement NVDR 3,362,500 39,022, Somboon Advance Technology (F) 11,403,100 8,558, Sri Trang Agro-Industry (F) 7,276,000 6,735, Supalai Public Co (F) 33,000,000 12,547, Thai Airways Intl (F) 16,359,184 20,418, Thai Oil (F) 9,120,000 25,102, Statement of Movements in Portfolio Holdings For the (Unaudited) Listed/Quoted Investments Equities % holdings of net assets Singapore Thailand Malaysia Indonesia Philippines Total Listed/Quoted Investments Other net assets Net assets attributable holders of redeemable units Total Listed/Quoted Investments 2,034,932, Other net assets 126,655, Net assets attributable holders of redeemable units at 31 March ,161,588, Total investments, at cost 1,668,130,

6 JF ASEAN FUND Statement of Financial Position As at 31 March 2011 (Unaudited) Assets Cash at banks 18,802,710 15,673,226 Short term deposits 92,500,000 18,500,000 Amounts due from brokers 27,482,915 80,488,390 Amounts receivable on allotment 23,301,677 47,724,171 Investments 2,034,932,111 1,991,719,104 Dividend and other accounts receivable 8,209,613 11,377,918 Total assets 2,205,229,026 2,165,482,809 Liabilities Amounts due brokers 28,965,059 18,998,638 Amounts payable on redemption 11,921,000 24,702,303 Other accounts payable 2,754,879 2,946,165 Total liabilities 43,640,938 46,647,106 Net assets attributable holders of redeemable units [Note 3] 2,161,588,088 2,118,835,703 Equity 2,161,588,088 2,118,835,703 Statement of Comprehensive Income For the (Unaudited) Income Net gains on investments and derivatives [Note 4] 181,071, ,043,892 Dividend income 14,481,888 12,372,901 Interest on deposits 42,865 8,269 Net foreign currency exchange losses (1,659,852) (375,120) Other income - 3, ,936, ,053,867 Expenses Management fee 15,925,558 13,558,769 Transaction costs 5,293,312 4,470,576 Safe cusdy and bank charges 262, ,764 Registrar's fee 208, ,225 Trustee's fee 191, ,705 Printing and publication expenses 36,137 48,551 Audir's fee 20,095 19,148 Legal and professional expenses 4,751 1,233 Other operating expenses 389 3,708 21,941,515 18,648,679 Profit before taxation 171,994, ,405,188 Taxation (1,222,906) (616,809) Increase in net assets attributable holders of redeemable units and tal comprehensive income 170,771, ,788,379 The notes on pages 5 7 form part of these financial statements

7 JF ASEAN FUND Statement of Changes in Net Assets Attributable Holders of Redeemable Units For the (Unaudited) Statement of Cash Flows For the (Unaudited) Net assets attributable holders of redeemable units at the beginning of the period 2,118,835,703 1,775,364,448 Allotment of redeemable units 732,430, ,323,533 Redemption of redeemable units (860,449,799) (413,269,583) Net redemption (128,019,206) (105,946,050) 1,990,816,497 1,669,418,398 Increase in net assets attributable holders of redeemable units and tal comprehensive income 170,771, ,788,379 Net assets attributable holders of redeemable units at the end of the period 2,161,588,088 1,876,206,777 Operating activities Purchase of investments and derivatives (1,082,879,904) (793,485,276) Proceeds from disposal of investments and derivatives 1,284,491, ,097,948 Dividend received 17,068,946 11,016,623 Interest received 42,721 7,977 Trustee's fee paid (189,780) (158,243) Registrar's fee paid (375,048) (321,074) Tax paid (1,222,906) (616,809) Transaction costs paid (5,504,094) (4,194,214) Management fee paid (15,815,001) (13,187,007) Others (2,582,991) (763,619) Net cash inflow from operating activities 193,033,027 71,396,306 Financing activities Receipts on allotment of redeemable units 756,853, ,134,527 Payments on redemption of redeemable units (873,231,102) (407,103,091) Net cash outflow from financing activities (116,378,015) (96,968,564) Increase/(decrease) in cash and cash equivalents 76,655,012 (25,572,258) Cash and cash equivalents at the beginning of the period 34,173, ,121,298 Exchange gains on cash and cash equivalents 474, ,443 Cash and cash equivalents at the end of the period 111,302, ,651,483 Analysis of balances of cash and cash equivalents: Cash at banks 18,802,710 18,651,483 Short term deposits 92,500, ,000, ,302, ,651,483 The notes on pages 5 7 form part of these financial statements

8 JF ASEAN FUND Notes the Financial Statements 1 The Fund JF ASEAN Fund (the "Fund") was established under a Trust Deed dated 7 July 1983, as amended, and is governed by the laws of Hong Kong. The Fund is authorized by the Securities and Futures Commission of Hong Kong. The investment objective of the Fund is enable invesrs participate in a managed portfolio consisting primarily of securities with significant assets in, or significant earnings derived from one or more of the countries comprising the Association of South East Asian Nations. All unitholders' rights with regard the convening, voting or otherwise acting at any meeting of unitholders are the same. Refer Note 3. 2 Summary of principal accounting policies (a) Basis of preparation of interim financial statements The accounting policies and methods of computation used in the preparation of these unaudited condensed interim financial statements are consistent with those used in the annual financial statements for the year ended 30 September (b) Investments and derivatives Classification The Fund classifies its investments and derivatives as financial assets or financial liabilities at fair value through profit or loss. These financial assets or financial liabilities are held-for-trading as they are acquired or incurred principally for the purpose of selling or repurchasing in the near term or short-term profit taking. All derivatives are carried in assets when amounts are receivable by the Fund and in liabilities when amounts are payable by the Fund. The Fund makes short sales in which a borrowed security is sold in anticipation of a decline in the market value of that security, or it may use short sales for various arbitrage transactions. Short sales are classified as financial liabilities at fair value through profit or loss. Recognition, derecognition and measurement Purchases and sales of investments and derivatives are accounted for on the trade date basis. Investments and derivatives are initially recognized at fair value and are subsequently re-measured at fair value. Realized and unrealized gains and losses on investments and derivatives are recognized in the Statement of Comprehensive Income. Investments and derivatives are derecognized when the rights receive cash flows from the investments and derivatives have expired or the Fund has transferred substantially all risks and rewards of ownership. Fair value estimation Investments that are listed or traded on an exchange and investments with prices quoted in over-the-counter markets or by market makers, are fair valued based on quoted "bid" prices on long investments and quoted "ask" prices on investments sold short. When trading in the securities of an investee company is suspended, the investment is valued at the Manager's estimate of its fair value. Debt securities are fair valued based on quoted prices inclusive of accrued interest. Investments in collective investment schemes are stated at fair value based on the net asset value per unit of the respective funds as determined by the administrars of the relevant funds or stated at "bid" prices if the collective investment schemes are listed or traded on an exchange. Open futures and swap contracts are valued at "bid" prices for long positions and "ask" prices for short positions at the valuation date. The differences between the bid/ask prices and the contract prices are recognized in the Statement of Comprehensive Income. Open options contracts are valued at "bid" prices for long positions and "ask" prices for short positions at the valuation date. The differences between the bid/ask prices and the premium amounts/contract prices are recognized in the Statement of Comprehensive Income. Forward foreign exchange contracts are valued at the forward rates ruling at the valuation date. The differences between the forward rates and the contract rates are recognized in the Statement of Comprehensive Income

9 JF ASEAN FUND (c) Securities borrowing The Fund may enter in securities borrowing arrangements for short sale purposes. Short positions represent obligations deliver securities sold but not yet purchased, and are accounted for as investments and valued at their fair value. Securities borrowed during the period/year are off-balance sheet transactions and are therefore not included in the investment portfolio of the Fund. Collateral placed for the purpose of securities borrowed generally consist of cash collateral and are included in the Statement of Financial Position separately. (d) Foreign currency translation Functional and presentation currency The Fund has adopted United States dollar as its functional and presentation currency. Transactions and balances Foreign currency transactions are translated in the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of assets and liabilities denominated in foreign currencies at period/year end exchange rates are recognized in the Statement of Comprehensive Income. Foreign exchange gains and losses relating cash and cash equivalents are presented in the Statement of Comprehensive Income within "Net foreign currency exchange gains/losses". Foreign exchange gains and losses relating the financial assets and liabilities carried at fair value through profit or loss are presented in the Statement of Comprehensive Income within "Net gains/losses on investments and derivatives". (e) Proceeds and payments on allotment and redemption of units The net asset value per unit is computed for each dealing day. The price at which units are allotted or redeemed is calculated by reference the net asset value per unit as at the close of business on the relevant dealing day in accordance with the provisions of the Fund's Trust Deed dated 7 July 1983, as amended, which may be different from the accounting policies stated in the financial statements. 3 Number of units in issue and net assets attributable holders of redeemable units (per unit) Units Units Number of units in issue 21,022, ,329, Net assets attributable holders of redeemable units 2,161,588,088 2,118,835,703 Net assets attributable holders of redeemable units (per unit) Net gains on investments and derivatives Change in unrealized gains/losses in value of investments and derivatives (88,186,625) 80,382,834 Realized gains on sale of investments and derivatives 269,257, ,661, ,071, ,043,

10 JF ASEAN FUND 5 Soft commission arrangements The Investment Manager has entered in soft commission arrangements with brokers under which certain goods and services used support investment decision making are received by the Investment Manager. The Investment Manager does not make direct payment for these services but transacts an agreed amount of business with the brokers on behalf of the Fund. Commission is paid from the Fund on these transactions. The goods and services must be of demonstrable benefit the Fund and may include research and advisory services; economic and political analysis; portfolio analysis, including valuation and performance measurement; market analysis, data and quotation services, computer hardware and software incidental the above goods and services; clearing and cusdian services and investment-related publications. 6 Distribution No distribution was made during the period (31 March 2010: nil)

11 JF ASIA DOMESTIC OPPORTUNITIES FUND Investment Portfolio As at 31 March 2011 (Unaudited) (Continued) Holding Fair % of value net assets Holding Fair % of value net assets Listed/Quoted Investments (97.5%) Equities (97.5%) China (34.4%) Agile Property Hldgs 10,164,000 15,915, Anta Sports Products 4,138,000 6,415, BBMG Corp 'H' 6,729,000 10,986, Beijing Jingkelong Co 'H' 3,948,000 4,806, Belle Intl Hldgs 3,363,000 6,148, China Merchants Property Development 'B' 3,168,500 5,886, China National Bldg Material 'H' 4,474,000 16,393, China Resources Gas Group 4,994,000 6,818, China Shineway Pharmaceutical 4,034,000 9,656, China Vanke 'B' 13,307,109 17,450, China Yurun Food Group 4,542,000 15,240, Greatview Aseptic Packaging 13,966,000 8,941, Hengdeli Hldgs 18,260,000 9,554, Intime Department Sre (Group) 10,224,000 13,801, Intl Mining Machinery 13,976,500 12,218, Lianhua Supermarket Hldgs 'H' 3,021,000 11,884, Maoye Intl Hldgs 32,680,000 14,074, Sihuan Pharmaceutical Hldgs 10,027,000 6,084, Springland Intl Hldgs 11,797,000 8,902, Tencent Hldgs 426,300 10,353, Hong Kong (8.8%) Hang Lung Properties 2,831,000 12,356, Kerry Properties 1,910,000 9,490, Sands China 5,230,400 11,633, Wharf (Hldgs) 2,044,900 14,104, Wing Hang Bank 574,000 6,759, India (11.7%) Ambuja Cements (DEMAT) 2,300,000 7,555, Exide Industries (DEMAT) 2,500,000 8,013, Housing Development Finance (DEMAT) 600,000 9,381, Infrastructure Development Finance 3,000,000 10,400, Maruti Suzuki India (DEMAT) 350,000 9,965, Mundra Port & Special Economic Zone 5,000,000 15,304, Tata Mors (DEMAT) 400,000 11,156, Lotte Shopping 30,000 12,265, Samsung Engineering 85,000 16,156, Singapore (8.8%) Fraser & Neave (CDP) 2,300,000 10,948, Genting Singapore 8,000,000 13,010, Guocoland Ltd (CDP) 8,834,666 17,031, Midas Hldgs (SG Listing) 12,500,000 7,437, Ot Marine 30,562,000 5,940, Taiwan (11.5%) China Life Insurance 11,387,000 11,481, Formosa Chemicals & Fibre 1,828,000 6,900, Huaku Development 3,351,606 9,288, Hung Poo Real Estate Development 4,247,000 5,033, Polaris Securities 10,983,000 7,413, President Chain Sre 2,627,000 11,613, Taishin Financial Hldgs 17,366,142 9,803, Taiwan Cement 7,702,345 9,285, Thailand (5.5%) LPN Development NVDR 18,000,000 6,248, Siam Cement NVDR 1,185,000 13,752, Sri Trang Agro-Industry (F) 7,000,000 6,480, Thai Airways Intl NVDR 6,000,000 7,488, Total Listed/Quoted Investments 599,668, Other net assets 15,131, Net assets attributable holders of redeemable units at 31 March ,800, Total investments, at cost 509,065,220 Indonesia (5.1%) Astra Intl 1,500,000 9,801, Berlian Laju Tanker (SG Listing) 100,000,000 3,966, United Tracrs 7,000,000 17,404, Korea (11.7%) Amorepacific Corp 14,200 13,514, Daelim Industrial 75,000 7,281, Korea Kumho Petrochemical 51,196 6,977, Lock & Lock 444,620 15,483,

12 JF ASIA DOMESTIC OPPORTUNITIES FUND Statement of Movements in Portfolio Holdings For the (Unaudited) Listed/Quoted Investments Equities % holdings of net assets China India Korea Taiwan Singapore Hong Kong Thailand Indonesia Total Listed/Quoted Investments Other net assets/(liabilities) 2.5 (1.8) Net assets attributable holders of redeemable units

13 JF ASIA DOMESTIC OPPORTUNITIES FUND Statement of Financial Position As at 31 March 2011 (Unaudited) Assets Cash at banks 22,847, ,897 Amounts due from brokers 1,159,601 18,139,124 Amounts receivable on allotment 1,249,893 3,503,812 Investments 599,668, ,446,946 Dividend and other accounts receivable 2,690,074 2,341,844 Total assets 627,615, ,795,623 Liabilities Short term bank loans - unsecured - 5,300,000 Amounts due brokers 8,924,168 25,111,340 Amounts payable on redemption 2,833,790 4,187,883 Other accounts payable 1,057,195 3,635,236 Total liabilities 12,815,153 38,234,459 Net assets attributable holders of redeemable units [Note 3] 614,800, ,561,164 Equity 614,800, ,561,164 Statement of Comprehensive Income For the (Unaudited) Income Net (losses)/gains on investments and derivatives [Note 4] (14,979,547) 45,438,171 Dividend income 2,144,659 2,216,921 Interest on deposits Net foreign currency exchange losses (113,174) (495,588) Other income - 1,484 (12,948,012) 47,161,149 Expenses Management fee 5,168,630 5,559,603 Transaction costs 2,143,594 2,570,948 Trustee's fee 129, ,619 Safe cusdy and bank charges 116, ,298 Registrar's fee 70,811 67,110 Printing and publication expenses 20,685 23,001 Audir's fee 12,316 11,768 Legal and professional expenses 10,352 9,575 Valuation fee 8,820 8,680 Other operating expenses 3,264 10,735 7,684,723 8,512,337 Net operating (loss)/profit (20,632,735) 38,648,812 Finance costs Interest paid (110,992) (8,170) (Loss)/profit before taxation (20,743,727) 38,640,642 Taxation 1,929,803 1,338,329 (Decrease)/increase in net assets attributable holders of redeemable units and tal comprehensive (loss)/income (18,813,924) 39,978,971 The notes on pages form part of these financial statements

14 JF ASIA DOMESTIC OPPORTUNITIES FUND Statement of Changes in Net Assets Attributable Holders of Redeemable Units For the (Unaudited) Statement of Cash Flows For the (Unaudited) Net assets attributable holders of redeemable units at the beginning of the period 773,561, ,359,383 Allotment of redeemable units 33,692,741 31,120,317 Redemption of redeemable units (173,639,338) (68,391,836) Net redemption (139,946,597) (37,271,519) 633,614, ,087,864 (Decrease)/increase in net assets attributable holders of redeemable units and tal comprehensive (loss)/income (18,813,924) 39,978,971 Net assets attributable holders of redeemable units at the end of the period 614,800, ,066,835 Operating activities Purchase of investments and derivatives (287,800,599) (411,944,318) Proceeds from disposal of investments and derivatives 461,608, ,464,533 Dividend received 1,690,531 2,008,513 Interest received Registrar's fee paid (131,807) (128,660) Trustee's fee paid (132,658) (135,318) Tax paid (376,661) (668,939) Transaction costs paid (2,256,035) (2,513,340) Management fee paid (5,318,772) (5,466,354) Others (516,899) (868,147) Net cash inflow from operating activities 166,765,691 8,748,131 Financing activities Interest paid (111,114) (8,105) Receipts on allotment of redeemable units 35,946,660 31,468,315 Payments on redemption of redeemable units (174,993,431) (68,161,346) Net cash outflow from financing activities (139,157,885) (36,701,136) Increase/(decrease) in cash and cash equivalents 27,607,806 (27,953,005) Cash and cash equivalents at the beginning of the period (4,936,103) 28,066,402 Exchange gains on cash and cash equivalents 175, ,600 Cash and cash equivalents at the end of the period 22,847, ,997 Analysis of balances of cash and cash equivalents: Cash at banks 22,847,565 2,858,186 Short term bank loans - unsecured - (2,581,189) 22,847, ,997 The notes on pages form part of these financial statements

15 JF ASIA DOMESTIC OPPORTUNITIES FUND Notes the Financial Statements 1 The Fund JF Asia Domestic Opportunities Fund (the "Fund") was established under a Trust Deed dated 11 May 2007, as amended, and is governed by the laws of Hong Kong. The Fund is authorized by the Securities and Futures Commission of Hong Kong. The investment objective of the Fund is provide invesrs with long-term capital appreciation by investing primarily in securities of companies whose predominant business will benefit from, or is related, the domestic growth in Asian economies excluding Japan but including Australia and New Zealand. This may include, but is not limited, companies predominantly engaged in the production, distribution, marketing or retail sale of staple goods, such as food, beverages, household products, cosmetics, bacco, aumobiles, also companies primarily engaged in the development of properties and infrastructure projects including building materials, building services, property developers, ports/railways/roads builders and operars as well as insurance companies and financial companies. Units of the Fund are issued in classes and the first class of units in issue is Class A. Subsequent classes of units are created at the Manager's discretion. A merging of separate unit classes will normally occur where, as at a year-end date, a management performance fee becomes payable by each of such unit classes. For unit classes be merged, all units from respective unit classes will be redeemed and subsequently subscribed in a merged unit class. The tal value of any unitholders' units is not affected by the merger. On 4 Ocber 2010, there was no merging of unit classes in respect of the financial year ended 30 September All unitholders' rights with regard the convening, voting or otherwise acting at any meeting of unitholders are the same. Refer Note 3. 2 Summary of principal accounting policies (a) Basis of preparation of interim financial statements The accounting policies and methods of computation used in the preparation of these unaudited condensed interim financial statements are consistent with those used in the annual financial statements for the year ended 30 September (b) Investments and derivatives Classification The Fund classifies its investments and derivatives as financial assets or financial liabilities at fair value through profit or loss. These financial assets or financial liabilities are held-for-trading as they are acquired or incurred principally for the purpose of selling or repurchasing in the near term or short-term profit taking. All derivatives are carried in assets when amounts are receivable by the Fund and in liabilities when amounts are payable by the Fund. The Fund makes short sales in which a borrowed security is sold in anticipation of a decline in the market value of that security, or it may use short sales for various arbitrage transactions. Short sales are classified as financial liabilities at fair value through profit or loss. Recognition, derecognition and measurement Purchases and sales of investments and derivatives are accounted for on the trade date basis. Investments and derivatives are initially recognized at fair value and are subsequently re-measured at fair value. Realized and unrealized gains and losses on investments and derivatives are recognized in the Statement of Comprehensive Income. Investments and derivatives are derecognized when the rights receive cash flows from the investments and derivatives have expired or the Fund has transferred substantially all risks and rewards of ownership. Fair value estimation Investments that are listed or traded on an exchange and investments with prices quoted in over-the-counter markets or by market makers, are fair valued based on quoted "bid" prices on long investments and quoted "ask" prices on investments sold short. When trading in the securities of an investee company is suspended, the investment is valued at the Manager's estimate of its fair value. Debt securities are fair valued based on quoted prices inclusive of accrued interest. Investments in collective investment schemes are stated at fair value based on the net asset value per unit of the respective funds as determined by the administrars of the relevant funds or stated at "bid" prices if the collective investment schemes are listed or traded on an exchange. Open futures and swap contracts are valued at "bid" prices for long positions and "ask" prices for short positions at the valuation date. The differences between the bid/ask prices and the contract prices are recognized in the Statement of Comprehensive Income

16 JF ASIA DOMESTIC OPPORTUNITIES FUND Open options contracts are valued at "bid" prices for long positions and "ask" prices for short positions at the valuation date. The differences between the bid/ask prices and the premium amounts/contract prices are recognized in the Statement of Comprehensive Income. Forward foreign exchange contracts are valued at the forward rates ruling at the valuation date. The differences between the forward rates and the contract rates are recognized in the Statement of Comprehensive Income. (c) Securities borrowing The Fund may enter in securities borrowing arrangements for short sale purposes. Short positions represent obligations deliver securities sold but not yet purchased, and are accounted for as investments and valued at their fair value. Securities borrowed during the period/year are off-balance sheet transactions and are therefore not included in the investment portfolio of the Fund. Collateral placed for the purpose of securities borrowed generally consist of cash collateral and are included in the Statement of Financial Position separately. (d) Foreign currency translation Functional and presentation currency The Fund has adopted United States dollar as its functional and presentation currency. Transactions and balances Foreign currency transactions are translated in the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of assets and liabilities denominated in foreign currencies at period/year end exchange rates are recognized in the Statement of Comprehensive Income. Foreign exchange gains and losses relating cash and cash equivalents are presented in the Statement of Comprehensive Income within "Net foreign currency exchange gains/losses". Foreign exchange gains and losses relating the financial assets and liabilities carried at fair value through profit or loss are presented in the Statement of Comprehensive Income within "Net gains/losses on investments and derivatives". (e) Proceeds and payments on allotment and redemption of units The net asset value per unit is computed for each dealing day. The price at which units are allotted or redeemed is calculated by reference the net asset value per unit as at the close of business on the relevant dealing day in accordance with the provisions of the Fund's Trust Deed dated 11 May 2007, as amended, which may be different from the accounting policies stated in the financial statements. 3 Number of units in issue and net assets attributable holders of redeemable units (per unit) Class A Class A Units Units Number of units in issue 59,674, ,768, Net assets attributable holders of redeemable units 614,800, ,561,164 Net assets attributable holders of redeemable units (per unit)

17 JF ASIA DOMESTIC OPPORTUNITIES FUND 4 Net (losses)/gains on investments and derivatives Change in unrealized gains/losses in value of investments and derivatives (67,080,691) (14,911,557) Realized gains on sale of investments and derivatives 52,101,144 60,349,728 (14,979,547) 45,438,171 5 Soft commission arrangements The Investment Manager has entered in soft commission arrangements with brokers under which certain goods and services used support investment decision making are received by the Investment Manager. The Investment Manager does not make direct payment for these services but transacts an agreed amount of business with the brokers on behalf of the Fund. Commission is paid from the Fund on these transactions. The goods and services must be of demonstrable benefit the Fund and may include research and advisory services; economic and political analysis; portfolio analysis, including valuation and performance measurement; market analysis, data and quotation services, computer hardware and software incidental the above goods and services; clearing and cusdian services and investment-related publications. 6 Distribution No distribution was made during the period (31 March 2010: nil)

18 JF ASIA NEW FRONTIERS FUND Investment Portfolio As at 31 March 2011 (Unaudited) (Continued) Holding Fair % of value net assets Holding Fair % of value net assets Listed/Quoted Investments (101.2%) Equities (101.2%) Australia (9.4%) Boart Longyear 92, , Highlands Pacific 547, , Newcrest Mining 21, , Oil Search 45, , Canada (12.7%) Ivanhoe Mines (CA Listing) 32, , Niko Resources 4, , Tethys Petroleum 553, , Uranium One 100, , China (2.3%) Mongolian Mining 353, , Hong Kong (5.9%) NagaCorp Ltd 1,533, , SouthGobi Resources 59, , India (3.1%) Bharti Airtel 78, , Kazakhstan (15.5%) Chagala Group GDR-RegS 137, , Halyk Savings Bank GDR-RegS 65, , Kazkommertsbank GDR- Oct2006 RegS 27, , KazMunaiGas Exploration GDR 80,630 1,801, Korea (3.3%) Orion Corp , Youngone Corp 45, , Pakistan (5.3%) Engro Corp (CDC) 86, , Engro Corp Await Cert 29,210 70, Fauji Fertilizer (CDS) 131, , MCB Bank 171, , MCB Bank Await Cert 21,681 52, Oil & Gas Development 61,410 97, John Keells Hldgs (CDS) 122, , National Development Bank 160, , Sri Lanka Telecom 314, , Thailand (2.8%) PTT Public Co NVDR 25, , Siam Cement NVDR 23, , United Kingdom (9.6%) Dragon Oil 57, , Eurasian Natural Resources 60, , Max Petroleum 1,000, , Steppe Cement 288, , Vietnam (5.9%) HAGL Joint Sck 60, , Hoa Phat Group 109, , Masan Group 12,700 48, Petrovietnam Drilling & Well Serv 85, , Petrovietnam Fertilizer & Chemical 131, , Tan Tao Investment Industry 113,471 74, Tan Tien Plastic Packaging 56,380 67, Vietnam Export-Import Comm JS Bank 360, , Total Listed/Quoted Investments 20,209, Other net liabilities (237,837) (1.2) Net assets attributable holders of redeemable units at 31 March ,971, Total investments, at cost 18,413,983 Philippines (16.6%) Alliance Global Group 2,507, , Banco de Oro Unibank 170, , DMCI Hldgs 545, , Energy Development (PH Listing) 5,014, , Manila Water 542, , Megaworld Corp 12,131, , Security Bank 228, , Sri Lanka (8.8%) Aitken Spence & Co (CDS) 132, , Commercial Bank of Ceylon 193, , Commercial Bank of Ceylon-AC 1,244 2, Dialog Axiata 1,651, ,

19 JF ASIA NEW FRONTIERS FUND Statement of Movements in Portfolio Holdings For the (Unaudited) Listed/Quoted Investments Equities % holdings of net assets Philippines Kazakhstan Canada United Kingdom Australia Sri Lanka Hong Kong Vietnam Pakistan Korea India Thailand China Bangladesh Total Listed/Quoted Investments Other net (liabilities)/assets (1.2) 8.8 Net assets attributable holders of redeemable units

20 JF ASIA NEW FRONTIERS FUND Statement of Financial Position As at 31 March 2011 (Unaudited) Assets Cash at banks 858,229 1,879,408 Amounts due from brokers 13,788 - Amounts receivable on allotment 1, Investments 20,209,061 19,116,924 Dividend and other accounts receivable 207, ,321 Total assets 21,289,973 21,160,909 Liabilities Short term bank loans - unsecured 1,100,318 - Amounts payable on redemption 112,139 99,644 Performance fee payable 61,081 - Other accounts payable 45,211 98,859 Total liabilities 1,318, ,503 Net assets attributable holders of redeemable units [Note 3] 19,971,224 20,962,406 Equity 19,971,224 20,962,406 Statement of Comprehensive Income For the (Unaudited) Income Net gains on investments and derivatives [Note 4] 2,458,726 3,080,006 Dividend income 291,313 95,772 Net foreign currency exchange losses (51,702) (81,723) 2,698,337 3,094,055 Expenses Management fee 163, ,063 Performance fee 61,081 - Transaction costs 49,347 66,369 Trustee's fee 13,651 12,172 Legal and professional expenses 12, Safe cusdy and bank charges 11,902 11,818 Valuation fee 8,380 5,890 Registrar's fee 4,658 5,036 Audir's fee 4,637 4,438 Printing and publication expenses 999 3,892 Other operating expenses 3,451 1, , ,300 Net operating profit 2,363,646 2,835,755 Finance costs Interest paid (342) - Profit before taxation 2,363,304 2,835,755 Taxation (58,315) (12,049) Increase in net assets attributable holders of redeemable units and tal comprehensive income 2,304,989 2,823,706 The notes on pages form part of these financial statements

21 JF ASIA NEW FRONTIERS FUND Statement of Changes in Net Assets Attributable Holders of Redeemable Units For the (Unaudited) Statement of Cash Flows For the (Unaudited) Net assets attributable holders of redeemable units at the beginning of the period 20,962,406 18,060,492 Allotment of redeemable units 921, ,069 Redemption of redeemable units (4,217,834) (875,058) Net redemption (3,296,171) (189,989) 17,666,235 17,870,503 Increase in net assets attributable holders of redeemable units and tal comprehensive income 2,304,989 2,823,706 Net assets attributable holders of redeemable units at the end of the period 19,971,224 20,694,209 Operating activities Purchase of investments and derivatives (4,399,950) (5,030,469) Proceeds from disposal of investments and derivatives 5,747,094 7,147,823 Dividend received 253,470 88,583 Registrar's fee paid (8,842) (9,058) Trustee's fee paid (13,552) (11,809) Transaction costs paid (52,278) (67,848) Tax paid (96,045) (12,049) Management fee paid (162,628) (141,704) Others (95,119) (94,542) Net cash inflow from operating activities 1,172,150 1,868,927 Financing activities Interest paid (318) - Receipts on allotment of redeemable units 920, ,496 Payments on redemption of redeemable units (4,205,339) (834,459) Net cash outflow from financing activities (3,284,991) (9,963) (Decrease)/increase in cash and cash equivalents (2,112,841) 1,858,964 Cash and cash equivalents at the beginning of the period 1,879,408 1,849,794 Exchange losses on cash and cash equivalents (8,656) (27,418) Cash and cash equivalents at the end of the period (242,089) 3,681,340 Analysis of balances of cash and cash equivalents: Cash at banks 858,229 3,681,340 Short term bank loans - unsecured (1,100,318) - (242,089) 3,681,340 The notes on pages form part of these financial statements

22 JF ASIA NEW FRONTIERS FUND Notes the Financial Statements 1 The Fund JF Asia New Frontiers Fund (the "Fund") was established under a Trust Deed dated 9 August 2007, as amended, and is governed by the laws of Hong Kong. The Fund is authorized by the Securities and Futures Commission of Hong Kong. The investment objective of the Fund is provide invesrs with long-term capital growth by investing primarily in securities of companies (i) domiciled or listed on a sck exchange in developing countries in Asia ("Asia New Frontiers"), or (ii) with actual or prospective operations, assets or investments, direct or indirect, in Asia New Frontiers in an aggregate amount of not less than either 50 million or 10 per cent. Of the gross assets of the investing company (albeit such operations, assets or investments may at the time of investment be immaterial the financial results of such company), or (iii) whose performance is linked the economies of Asia New Frontiers. Units of the Fund are issued in classes and the first class of units in issue is Class A. Subsequent classes of units are created at the Manager's discretion. A merging of separate unit classes will normally occur where, as at a year-end date, a management performance fee becomes payable by each of such unit classes. For unit classes be merged, all units from respective unit classes will be redeemed and subsequently subscribed in a merged unit class. The tal value of any unitholders' units is not affected by the merger. On 4 Ocber 2010, there was no merging of unit classes in respect of the financial year ended 30 September All unitholders' rights with regard the convening, voting or otherwise acting at any meeting of unitholders are the same. Refer Note 3. 2 Summary of principal ipal accounting policies (a) Basis of preparation of interim financial statements The accounting policies and methods of computation used in the preparation of these unaudited condensed interim financial statements are consistent with those used in the annual financial statements for the year ended 30 September (b) Investments and derivatives Classification The Fund classifies its investments and derivatives as financial assets or financial liabilities at fair value through profit or loss. These financial assets or financial liabilities are held-for-trading as they are acquired or incurred principally for the purpose of selling or repurchasing in the near term or short-term profit taking. All derivatives are carried in assets when amounts are receivable by the Fund and in liabilities when amounts are payable by the Fund. The Fund makes short sales in which a borrowed security is sold in anticipation of a decline in the market value of that security, or it may use short sales for various arbitrage transactions. Short sales are classified as financial liabilities at fair value through profit or loss. Recognition, derecognition and measurement Purchases and sales of investments and derivatives are accounted for on the trade date basis. Investments and derivatives are initially recognized at fair value and are subsequently re-measured at fair value. Realized and unrealized gains and losses on investments and derivatives are recognized in the Statement of Comprehensive Income. Investments and derivatives are derecognized when the rights receive cash flows from the investments and derivatives have expired or the Fund has transferred substantially all risks and rewards of ownership. Fair value estimation Investments that are listed or traded on an exchange and investments with prices quoted in over-the-counter markets or by market makers, are fair valued based on quoted "bid" prices on long investments and quoted "ask" prices on investments sold short. When trading in the securities of an investee company is suspended, the investment is valued at the Manager's estimate of its fair value. Debt securities are fair valued based on quoted prices inclusive of accrued interest. Investments in collective investment schemes are stated at fair value based on the net asset value per unit of the respective funds as determined by the administrars of the relevant funds or stated at "bid" prices if the collective investment schemes are listed or traded on an exchange. Open futures and swap contracts are valued at "bid" prices for long positions and "ask" prices for short positions at the valuation date. The differences between the bid/ask prices and the contract prices are recognized in the Statement of Comprehensive Income

23 JF ASIA NEW FRONTIERS FUND Open options contracts are valued at "bid" prices for long positions and "ask" prices for short positions at the valuation date. The differences between the bid/ask prices and the premium amounts/contract prices are recognized in the Statement of Comprehensive Income. Forward foreign exchange contracts are valued at the forward rates ruling at the valuation date. The differences between the forward rates and the contract rates are recognized in the Statement of Comprehensive Income. (c) Securities borrowing The Fund may enter in securities borrowing arrangements for short sale purposes. Short positions represent obligations deliver securities sold but not yet purchased, and are accounted for as investments and valued at their fair value. Securities borrowed during the period/year are off-balance sheet transactions and are therefore not included in the investment portfolio of the Fund. Collateral placed for the purpose of securities borrowed generally consist of cash collateral and are included in the Statement of Financial Position separately. (d) Foreign currency translation Functional and presentation currency The Fund has adopted United States dollar as its functional and presentation currency. Transactions and balances Foreign currency transactions are translated in the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of assets and liabilities denominated in foreign currencies at period/year end exchange rates are recognized in the Statement of Comprehensive Income. Foreign exchange gains and losses relating cash and cash equivalents are presented in the Statement of Comprehensive Income within "Net foreign currency exchange gains/losses". Foreign exchange gains and losses relating the financial assets and liabilities carried at fair value through profit or loss are presented in the Statement of Comprehensive Income within "Net gains/losses on investments and derivatives". (e) Proceeds and payments on allotment and redemption of units The net asset value per unit is computed for each dealing day. The price at which units are allotted or redeemed is calculated by reference the net asset value per unit as at the close of business on the relevant dealing day in accordance with the provisions of the Fund's Trust Deed dated 9 August 2007, as amended, which may be different from the accounting policies stated in the financial statements. 3 Number of units in issue and net assets attributable holders of redeemable units u (per unit) Class A Class A Units Units Number of units in issue 1,968, ,301, Net assets attributable holders of redeemable units 19,971,224 20,962,406 Net assets attributable holders of redeemable units (per unit)

24 JF ASIA NEW FRONTIERS FUND 4 Net gains on investments and derivatives Change in unrealized gains/losses in value of investments and derivatives 1,667,476 2,525,752 Realized gains on sale of investments and derivatives 791, ,254 2,458,726 3,080,006 5 Soft commission arrangements The Investment Manager has entered in soft commission arrangements with brokers under which certain goods and services used support investment decision making are received by the Investment Manager. The Investment Manager does not make direct payment for these services but transacts an agreed amount of business with the brokers on behalf of the Fund. Commission is paid from the Fund on these transactions. The goods and services must be of demonstrable benefit the Fund and may include research and advisory services; economic and political analysis; portfolio analysis, including valuation and performance measurement; market analysis, data and quotation services, computer hardware and software incidental the above goods and services; clearing and cusdian services and investment-related publications. 6 Distribution No distribution was made during the period (31 March 2010: nil)