EASTSPRING INVESTMENTS ASIAN HIGH YIELD BOND MY FUND QUARTERLY REPORT

Transcription

1 EASTSPRING INVESTMENTS ASIAN HIGH YIELD BOND MY FUND QUARTERLY REPORT FOR THE FINANCIAL PERIOD FROM 1 APRIL TO 30 JUNE

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3 Dear Valued Investor, Greetings from Eastspring Investments Berhad! First and foremost, we would like to take this opportunity to thank you for choosing to invest with Eastspring Investments Berhad. We are pleased to enclose a copy of the Annual/Interim/Quarterly Fund Reports of Eastspring Investments Berhad s fund(s) for the reporting period ended 30 June. You may also download these reports from our website at Should you require any assistance, please do not hesitate to contact our Client Services at Yours sincerely, Raymond Tang Chee Kin Non-Independent, Executive Director and Chief Executive Officer

4 TABLE OF CONTENTS Fund Information 1 Key Performance Data 5 Manager s Report 8 Market Review 13 Rebates and Soft Commissions 14 Condensed Statement of Comprehensive Income 16 Condensed Statement of Financial Position 17 Condensed Statement of Changes in Net Assets Attributable to Unit Holders 19 Condensed Statement of Cash Flows 20 Notes to the Condensed Financial Statements 21 Corporate Directory 31

5 FUND INFORMATION Quarterly Report Name of Fund Fund Category/ Type Fund Objective Eastspring Investments Asian High Yield Bond MY Fund (the Fund ) Wholesale (feeder fund)/income and growth The Fund aims to maximise income* and capital appreciation by investing in the Eastspring Investments - Asian High Yield Bond Fund, which invests primarily^ in Asian high yield bonds. * Income distributed will be reinvested into additional Units in each Class unless Unit Holder opts for the distribution to be paid out. ^ primarily means at least 66% of the Target Fund s net asset value. Performance Benchmark Fund Income Distribution Policy J.P Morgan Asia Credit Index ( JACI ) Non-Investment Grade Source: Eastspring Investments (Singapore) Limited and Bloomberg. Subject to the availability of income, income distribution will be declared at least on a quarterly basis. 1

6 Eastspring Investments Asian High Yield Bond MY Fund FUND INFORMATION (CONTINUED) Breakdown of Unit Holdings by Size As at 30 June, the size of Eastspring Investments Asian High Yield Bond MY Fund for Class stood at 371,280 units, for AUD Hedged-class stood at 2,466,315 units, and for RM Hedged-class stood at 38,741,734 units. Fund Size - Class Units ( 000) Apr May Jun Breakdown of Unit Holdings Unit Holdings No. of Unit Holders % No of Units* ( 000) % 5,000 units and below ,001 to 10,000 units ,001 to 50,000 units ,001 to 500,000 units ,001 units and above Total * excludes units held by the Manager. 2

7 FUND INFORMATION (CONTINUED) Quarterly Report Breakdown of Unit Holdings by Size (continued) 3,000 Fund Size - AUD Hedged-class 2,500 Units ( 000) 2,000 1,500 1, Apr May Jun Breakdown of Unit Holdings Unit Holdings No. of Unit Holders % No of Units* ( 000) % 5,000 units and below ,001 to 10,000 units ,001 to 50,000 units ,001 to 500,000 units ,001 units and above , Total , * excludes units held by the Manager. 3

8 Eastspring Investments Asian High Yield Bond MY Fund FUND INFORMATION (CONTINUED) Breakdown of Unit Holdings by Size (continued) Units ( 000) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Fund Size - RM Hedged-class Apr May Jun Breakdown of Unit Holdings Unit Holdings No. of Unit Holders % No of Units* ( 000) % 5,000 units and below ,001 to 10,000 units ,001 to 50,000 units ,001 to 500,000 units ,001 units and above , Total , * excludes units held by the Manager. 4

9 KEY PERFORMANCE DATA FOR THE FINANCIAL PERIOD ENDED Category Quarterly Report First quarter from 1.4. to (%) (%) Collective investment scheme-foreign Derivatives (0.91) 0.95 Cash and other assets Total Net Asset Value (NAV) ('000) Class AUD Hedged-class RM Hedged-class 4,462 4,612 Units In Circulation (Units '000) Class AUD Hedged-class 2,466 2,547 RM Hedged-class 38,742 36,368 Net Asset Value Per Unit () Class AUD Hedged-class RM Hedged-class Net Asset Value Per Unit in respective currencies Class AUD Hedged-class RM Hedged-class Highest Net Asset Value Per Unit in respective currencies # Class AUD Hedged-class RM Hedged-class Lowest Net Asset Value Per Unit in respective currencies # Class AUD Hedged-class RM Hedged-class

10 Eastspring Investments Asian High Yield Bond MY Fund KEY PERFORMANCE DATA (CONTINUED) Category First quarter from 1.4. to Capital Growth (%) Class (5.13) (9.72) AUD Hedged-class (3.82) (13.38) RM Hedged-class (5.04) (9.30) Income Distribution (%) Class AUD Hedged-class RM Hedged-class Total Return (%) Class (3.66) (0.05) AUD Hedged-class (3.84) (0.27) RM Hedged-class (3.55) 0.49 Gross Distribution Per Unit in respective currencies Class AUD Hedged-class RM Hedged-class Net Distribution Per Unit in respective currencies Class AUD Hedged-class RM Hedged-class Management Expense Ratio (MER) (%)* Portfolio Turnover Ratio (PTR) (times)^ # Figures shown as ex-distribution. * There were no significant changes to the MER during the period under review. ^ There were no significant changes to the PTR during the period under review. 6

11 KEY PERFORMANCE DATA (CONTINUED) Quarterly Report 1 year to Since launch to (%) (%) Average total return Class (2.80) 2.05 AUD Hedged-class (3.33) 2.73 RM Hedged-class (2.28) 3.52 Period ended to to Since launch to (%) (%) (%) Annual total return Class (0.05) AUD Hedged-class (0.27) RM Hedged-class Source: The above total return of the Fund was sourced from Lipper for Investment Management. Bases of calculation and assumptions made in calculating returns: Percentage growth = NAV t -1 NAV 0 NAV t = NAV at the end of the period NAV 0 = NAV at the beginning of the period Performance annualised = (1 + Percentage Growth) 1/n - 1 n Adjusted for unit split and distribution paid out for the period = Number of years Past performance is not necessarily indicative of future performance and unit prices and investment returns may go down, as well as up. 7

12 Eastspring Investments Asian High Yield Bond MY Fund MANAGER S REPORT Fund Performance Class Since inception, the Fund recorded a positive return of 6.26%, underperforming the benchmark return of 13.90% by -7.64%. For the period under review, the Fund registered a return of -3.66%, underperforming the benchmark return of -3.58% by -0.08%. Eastspring Investments Asian High Yield Bond MY- Class - Since Inception (SI) Return Vs Benchmark 30% 25% 20% 15% 30% 25% 20% 15% SI % Change 10% 5% 0% -5% 10% 5% 0% -5% -10% -15% -10% -15% -20% Jul 2015 Sep 2015 Nov 2015 Jan 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Mar 2017 May 2017 Jul 2017 Sep 2017 Dec 2017 Feb Apr Jun -20% Eastspring Investments Asian High Yield Bond MY - Class Benchmark AUD Hedged-class Since inception, the Fund recorded a positive return of 8.38%, underperforming the benchmark return of 16.56% by -8.18%. For the period under review, the Fund registered a positive return of -3.84%, underperforming the benchmark return of -3.66% by -0.18%. Eastspring Investments Asian High Yield Bond MY-AUD Hedged Class -Since Inception (SI) Return Vs Benchmark 30% 30% 25% 25% 20% 20% SI % Change 15% 10% 5% 0% 15% 10% 5% 0% -5% -5% -10% -10% Jul Sep Nov 2015 Jan 2016 Apr 2016 Jun Aug Oct Dec Mar May Jul Sep Dec 2017 Feb Apr Jun Eastspring Investments Asian High Yield Bond MY -AUD Hedged Class Benchmark 8

13 MANAGER S REPORT (CONTINUED) Quarterly Report Fund Performance (continued) RM Hedged-class Since inception, the Fund recorded a positive return of 10.88%, underperforming the benchmark return of 20.29% by -9.41%. For the period under review, the Fund registered a return of -3.55%, underperforming the benchmark return of -3.34% by -0.21%. Eastspring Investments Asian High Yield Bond MY-RM Hedged Class -Since Inception (SI) Return Vs Benchmark 30% 30% 25% 25% 20% 20% SI % Change 15% 10% 5% 0% 15% 10% 5% 0% -5% -5% -10% Jul Sep Nov 2015 Jan 2016 Apr 2016 Jun Aug Oct Dec Mar May Jul Sep Dec 2017 Feb Apr -10% Jun Eastspring Investments Asian High Yield Bond MY -RM Hedged Class Benchmark Over the quarter, positive credit selection effects in China contributed positively to relative returns, although this was offset partially by negative selection effects in Indonesia. The underweight to higher-yielding sovereign bonds added value, as did the underweight to high yield quasi-sovereign bonds which underperformed over the quarter. Currency effects were a drag on relative performance, as the portfolio s off-benchmark IDR, INR and CNY positioning detracted. The performance is calculated on NAV-to-NAV basis with gross income or dividend reinvested. Benchmark: JACI Non-Investment Grade Source: Lipper for Investment Management, Eastspring Investments (Singapore) Limited and Bloomberg, as at 30 June. Past performance of the Fund is not necessarily indicative of its future performance. 9

14 Eastspring Investments Asian High Yield Bond MY Fund MANAGER S REPORT (CONTINUED) Analysis of Fund Performance For the financial period ended 30 June : Currency Class Income Return Capital Return* Total Return Total Return of Benchmark (%) (%) (%) (%) Class 1.02 (5.13) (3.66) (3.58) AUD Hedged-class 0.00 (3.82) (3.84) (3.66) RM Hedged-class 1.02 (5.04) (3.55) (3.34) * Capital return components (NAV per unit to NAV per unit). Distribution/ Unit Split Ex-Date Class 29-Jun-18 AUD- Hedged class 29-Jun-18 RM- Hedged class 29-Jun-18 Distribution Per Unit () (AUD) (RM) Gross Net Unit split Nil Nil Nil Impact on NAV arising from distribution for the financial period ended 30 June. Ex-Date Class 29-Jun-18 AUD- Hedged class 29-Jun-18 RM- Hedged class 29-Jun-18 ( per Unit) (AUD per Unit) (RM per Unit) Net Asset Value before distribution Less: distribution (0.0070) (0.0072) Net Asset Value after distribution No unit split were declared for the financial period ended 30 June. 10

15 MANAGER S REPORT (CONTINUED) Quarterly Report Investment Strategy During The Period Under Review The outlook for global growth remains positive, while inflation remains benign on muted wage increases in the developed economies, which continues to point towards a gradual monetary tightening cycle. Asian economic growth remains on a positive trajectory, while corporate fundamentals continue to improve as evidenced by the strength in corporate earnings, which is a positive for the region s debt-servicing ability. Asian high yield credit spreads have been underperforming investment grade in recent times as a result of weakness in Emerging Market risk sentiment. We see improved valuations in selected segments like Indonesian High Yield corporate bonds and may take the opportunity to add some risk where we feel we are sufficiently compensated. Investors have also priced in more of the Federal Reserve s rate hike guidance, with longer-dated yields adjusting higher to reflect expectations of higher inflation going forward. Key overweights remain in the China HY property segment with a focus on selected shorter-dated opportunities, as well as in offbenchmark India and Indonesia local currency bonds. The Fund is also overweight Indonesia hard currency bonds, and is modestly underweight the higher-yielding sovereign markets of Pakistan, Mongolia and Sri Lanka. 11

16 Eastspring Investments Asian High Yield Bond MY Fund MANAGER S REPORT (CONTINUED) Asset Allocation Asset Allocation 30-Jun 31-Mar Changes (%) (%) (%) Collective Investment Scheme-Foreign Derivatives (0.91) 0.95 (1.86) Cash and other assets (0.26) Asset Allocation as at 30 June Derivatives (0.91%) Cash and other assets 2.69% Collective Investment Scheme-Foreign 98.22% During the period under review, as the Fund employs hedging, the negative derivative position was due to the mark to market effect of the Fund s derivative holdings. State of Affairs of the Fund There have been neither significant change to the state of affairs of the Fund nor any circumstances that materially affect any interests of the unit holders during the period under review. 12

17 MARKET REVIEW Quarterly Report The quarter was marked by a general rise in bond yields, driven by a continuation of monetary policy normalisation in the United States ( US ), while the global economy continued on its path of growth, although pockets of growth moderation were seen in selected economies. Rising financial market volatility underscored the concerns over US- China trade tensions, which weighed on investor appetite over the quarter. Amidst the uncertainty on the global trade policy front, 1Q US GDP growth came in at a still-decent 2% (quarter-on-quarter annualised), although the figure revised lower over the course of the quarter. Asian bellwether China registered growth rates of 6.8% and 6.7% in 1Q and 2Q (advance estimate) respectively, modestly off the highs in 2017 (6.9% in 1Q and 2Q 2017). While decelerating from the previous quarter, Euro-area GDP (EU28) still registered a decent 2.4% year-on-year growth rate in 1Q (from 2.7% in 4Q 2017), while Japan logged a worse-than-expected quarterly contraction in 1Q with an annualised quarterly growth rate of -0.6%, marking a break in trend following a streak of eight consecutive quarterly expansions. On the back of a fairly positive growth outlook, central banks deemed it fit to embark on a tightening of monetary policy. The US Federal Reserve delivered another rate hike in June, the seventh hike in the current tightening cycle. Across the Atlantic, the European Central Bank ( ECB ) guided for a tapering of asset purchases to 15 billion (from the current 30 billion monthly pace) from October, before ending purchases in December. Tighter monetary policy was also the order of the day in Asia, as India, the Philippines, Indonesia and Singapore all tightened policy. With tighter US monetary policy, the 10-year US Treasury yield touched a multi-year high of 3.11% (the highest level reached since 2011) in May as investors fretted over a possible return of inflation and a quicker pace of monetary policy tightening, while a reignition of US-China trade tensions saw the 10-year yield easing lower to close the quarter at 2.86%. The rise in US Treasury yields hurt Asian bond markets, although Asian high yield bonds underperformed following the sizable credit spread widening observed over the course of the quarter credit spreads on Asian non-investment grade dollar bonds (as represented by the JPMorgan Asia Credit Index Non Investment Grade Index) widened by 100 bps in 2Q. Weighing on the performance of Asian high yield bonds was the weakness in higher-yielding sovereign markets like Pakistan and Sri Lanka, while quasisovereign high yield was a notable underperformer on weakness in selected China Local Government Financing Vehicle ( LGFV ) bonds. 13

18 Eastspring Investments Asian High Yield Bond MY Fund REBATES AND SOFT COMMISSIONS During the period under review, the Manager and its delegates (if any) did not receive any soft commissions from stockbrokers. 14

19 Quarterly Report EASTSPRING INVESTMENTS ASIAN HIGH YIELD BOND MY FUND CONDENSED FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 1 APRIL TO 30 JUNE 15

20 Eastspring Investments Asian High Yield Bond MY Fund CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL PERIOD FROM 1 APRIL TO 30 JUNE Note Financial period from 1.4. to Financial period from to INVESTMENT (LOSS)/INCOME Dividend income 87,237 94,442 Net foreign currency exchange (loss)/gain (1,264) 606 Net (loss)/gain on forward currency contracts (236,618) 136,237 Net loss on financial assets at fair value through profit or loss 3 (287,578) (150,112) (438,223) 81,173 EXPENSES Management fee 1 (596) (883) Trustee fee 2 (1,188) (1,189) Audit fee (499) (393) Tax agent fee (249) (191) Other expenses (3,775) (1,168) GST charges (147) (124) (6,454) (3,948) (LOSS)/PROFIT BEFORE TAXATION (444,677) 77,225 TAXATION - - (LOSS)/PROFIT AFTER TAXATION AND TOTAL COMPREHENSIVE (LOSS)/INCOME (444,677) 77,225 (Loss)/profit after taxation is made up of the followings: Realised amount (67,024) 220,686 Unrealised amount (377,653) (143,461) (444,677) 77,225 The accompanying notes form an integral part of the condensed financial statements. 16

21 CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE Note Quarterly Report ASSETS Cash and cash equivalents 5 175, ,497 Forward foreign currency contracts 4-60,803 Amount due from brokers - 46,470 Amount due from Manager 90,332 6,725 Financial assets at fair value through profit or loss 3 5,327,816 5,453,135 TOTAL ASSETS 5,593,563 5,787,630 LIABILITIES Amount due to Manager 43,101 48,365 Accrued management fee Amount due to Trustee Other payables and accruals 5,873 4,379 Distribution payable 70,535 53,097 GST charges payable - 39 Forward foreign currency contracts 4 49,360 6,921 TOTAL LIABILITIES (EXCLUDING NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS) 169, ,448 NET ASSET VALUE OF THE FUND 5,424,147 5,674,182 NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS 5,424,147 5,674,182 REPRESENTED BY: FAIR VALUE OF OUTSTANDING UNITS Class 167, ,962 AUD Hedged-class 794, ,018 RM Hedged-class 4,462,398 4,612,202 NUMBER OF UNITS IN CIRCULATION (UNITS) Class 6 371, ,610 AUD Hedged-class 6 2,466,315 2,547,218 RM Hedged-class 6 38,741,734 36,368,444 17

22 Eastspring Investments Asian High Yield Bond MY Fund CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE (CONTINUED) Note NET ASSET VALUE PER UNIT IN (EX-DISTRIBUTION) Class AUD Hedged-class RM Hedged-class NET ASSET VALUE PER UNIT IN RESPECTIVE CURRENCIES (EX-DISTRIBUTION) Class AUD Hedged-class RM Hedged-class The accompanying notes form an integral part of the condensed financial statements. 18

23 CONDENSED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS FOR THE FINANCIAL PERIOD FROM 1 APRIL TO 30 JUNE Note Balance as at beginning of the financial period/year 5,674,182 6,273,296 Movement in unit holders contribution: Creation of units from applications - Class - 58,088 - AUD Hedged-class 28, ,206 - RM Hedged-class 436,346 2,104,207 Creation of units from distributions - Class 2,559 38,264 - AUD Hedged-class - 132,359 - RM Hedged-class 58, ,595 Cancellation of units - Class - (467,273) - AUD Hedged-class (55,008) (1,232,129) - RM Hedged-class (206,516) (1,947,882) 5,939,359 5,683,731 (Decrease)/increase in net assets attributable to unit holders during the financial period/year: Quarterly Report Total comprehensive (loss)/income for the financial period/year (444,677) 655,504 Distributions for the financial period/year: - Class (Gross/Net: sen) (2,559) (38,264) - AUD Hedged-class (2017:Gross/ Net: sen) - (170,864) - RM Hedged-class (Gross/Net: sen) (67,976) (455,925) NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS AS AT THE END OF THE FINANCIAL PERIOD/YEAR 5,424,147 5,674,182 The accompanying notes form an integral part of the condensed financial statements. 19

24 Eastspring Investments Asian High Yield Bond MY Fund CONDENSED STATEMENT OF CASH FLOWS FOR THE FINANCIAL PERIOD FROM 1 APRIL TO 30 JUNE Note Financial period from 1.4. to Financial period from to CASH FLOWS FROM OPERATING ACTIVITIES Proceeds from sale of investments 96, ,433 Purchase of investments (347,236) (754,442) Dividend income 87,237 94,442 Management fee paid (682) (937) Trustee fee paid (1,201) (1,202) Payment for other fees and expenses (3,109) (1,123) Net foreign currency exchange gain Net cash used in operating activities (168,226) (202,752) CASH FLOWS FROM FINANCING ACTIVITIES Cash proceeds from units created 443, ,057 Payments for cancellation of units (266,851) (806,402) Distribution paid (53,097) (9,968) Net cash generated from financing activities 123, ,687 NET DECREASE IN CASH AND CASH EQUIVALENTS (45,082) (35,065) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FINANCIAL PERIOD 220, ,958 CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL PERIOD 5 175, ,893 The accompanying notes form an integral part of the condensed financial statements. 20

25 NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 1 APRIL TO 30 JUNE 1. MANAGEMENT FEE Quarterly Report In accordance with the Deed, the Manager is entitled to a management fee at a rate of not exceeding 3.00% per annum of the net asset value of the Fund accrued and calculated on daily basis. For the financial period ended 30 June, the management fee is recognised at a rate of 1.25% per annum of the net asset value of the Fund, calculated on daily basis. As the Fund invests in collective investment scheme, any management fee charged by Eastspring Investments Asian High Yield Bond Fund-Class ADM will be fully refunded. The rebate of management fees amounting to 16,942 (2017: 18,853) is calculated on the net asset value of the Target Fund on a daily basis. In accordance with the SC Guidelines in Unlisted Capital Market Products under the Lodge and Launch Framework, there is no double charging of management fee to the Fund. There will be no further liability to the Manager in respect of the management fee other than the amounts recognised above. 2. TRUSTEE FEE In accordance with the Deed, the Trustee is entitled to an annual fee at a rate not exceeding 0.20% per annum of the net asset value of the Fund, subject to a minimum fee of RM18,000 per annum or its equivalent in the base currency (excluding foreign custodian fees and charges, if applicable). For the financial period ended 30 June, the Trustee fee is recognised at a rate of 0.06% per annum on the net asset value of the Fund, subject to minimum of RM18,000 per annum or its equivalent in the base currency (excluding foreign custodian fees and charges), calculated on daily basis. There will be no further liability to the Trustee in respect of the trustee fee other than the amounts recognised above. 21

26 Eastspring Investments Asian High Yield Bond MY Fund 3. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 2017 Designated at fair value through profit or loss: Collective investment scheme 5,327,816 6,090,943 Net loss on financial assets at fair value through profit or loss: Realised (loss)/gain on disposals (12,796) 3,537 Change in unrealised fair value loss (274,782) (153,649) (287,578) (150,112) Quantity Aggregate cost Fair value as at Percentage of net asset value of the Fund Units % Eastspring Investments- Asian High Yield Bond Fund - Class ADM 603,445 5,826,200 5,327, ACCUMULATED UNREALISED LOSS ON FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (498,384) FAIR VALUE OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 5,327,816 22

27 Quarterly Report Quantity Aggregate cost Fair value as at Percentage of net asset value of the Fund Units % Eastspring Investments- Asian High Yield Bond Fund - Class ADM 631,382 6,131,880 6,090, ACCUMULATED UNREALISED LOSS ON FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (40,937) FAIR VALUE OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 6,090,943 The investment objective of Eastspring Investments-Asian High Yield Bond Fund ( Target Fund ) is to invests in a diversified portfolio consisting primarily of high yield fixed income or debt securities issued by Asian entities or their subsidiaries. This Target Fund s portfolio primarily consists of securities denominated in US dollars as well as the various Asian currencies and aims to maximise total returns through investing primarily in fixed income or debt securities rated below BBB-. A minimum of 95% of its net asset value will be invested in the Target Fund. However, the asset allocation may be reduced due to creation of units at the point of reporting date. The ratio will be adjusted back to the minimum level after the reporting period. 23

28 Eastspring Investments Asian High Yield Bond MY Fund 4. FORWARD FOREIGN CURRENCY CONTRACTS As at the date of statement of financial position, there are 3 (2017: 2) forward currency contracts outstanding. The notional principal amount of the outstanding forward currency contracts amounted to 49,360 payable (2017: 13,250 (receivable)). The forward currency contracts entered into during the financial period were for hedging against the currency exposure arising from the creation and cancellation of units denominated in AUD and MYR. As the Fund has not adopted hedge accounting during the financial period, the change in the fair value of the forward currency contract is recognised immediately in the statement of comprehensive income. 5. CASH AND CASH EQUIVALENTS 2017 Bank balances 175, ,893 The currency exposure profile of cash and cash equivalents is as follows: 2017 MYR 1,023 1, , ,165 24

29 Quarterly Report 6. UNITS IN CIRCULATION Class AUD Hedgedclass RM Hedgedclass Total No. of units No. of units No. of units No. of units At the beginning of the financial period 365,610 2,547,218 36,368,444 39,281,272 Creation of units from applications during the financial period 5,670 86,687 4,076,191 4,168,548 Cancellation of units during the financial period - (167,590) (1,702,901) (1,870,491) At the end of the financial period 371,280 2,466,315 38,741,734 41,579,329 25

30 Eastspring Investments Asian High Yield Bond MY Fund Class AUD Hedgedclass RM Hedgedclass 2017 Total No. of units No. of units No. of units No. of units At the beginning of the financial period 1,099,098 4,468,852 32,032,448 37,600,398 Creation of units from applications during the financial period 38, ,810 5,989,415 6,346,551 Cancellation of units during the financial period (133,574) (447,201) (4,539,893) (5,120,668) At the end of the financial period 1,003,850 4,340,461 33,481,970 38,826,281 26

31 Quarterly Report 7. TRANSACTIONS WITH ISSUER Details of transactions with the Issuer of Eastspring Investments-Asian High Yield Bond Fund are as follows: Value of trades Percentage of total trades % 1.4. to Eastspring Investments (Singapore) Limited # 532, to Eastspring Investments (Singapore) Limited # 1,038, # Included in transactions by the Fund are trades conducted on normal terms in the investment management and stockbroking industry with Eastspring Investments (Singapore) Limited. 27

32 Eastspring Investments Asian High Yield Bond MY Fund 8. UNITS HELD BY THE MANAGER AND PARTIES RELATED TO THE MANAGER The related parties of and their relationship with the Fund are as follows: Related parties Eastspring Investments Berhad Eastspring Investments (Singapore) Limited Eastspring Investments-Asian High Yield Bond Fund (Class ADM) Relationship The Manager Related company of the Manager Collective investment scheme managed by Eastspring Investments (Singapore) Limited No. of units Class No. of units AUD Hedgedclass No. of units RM Hedgedclass Eastspring Investments Berhad 11,770 5,313* 12,431 5,419* 2,384 1,109* 2017 No. of units Class No. of units AUD Hedgedclass No. of units RM Hedgedclass Eastspring Investments Berhad 10,741 5,466* 11,137 5,605* 2,119 1,135* * In respective currencies The above units were transacted at the prevailing market price. The units are held legally by the Manager and are within the prescribed limit allowed by Securities Commission s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework. Other than the above, there were no units held by the Directors or parties related to the Manager. 28

33 Quarterly Report Significant related party transactions 2017 Purchase of collective investment scheme managed by Eastspring Investments (Singapore) Limited 347, ,442 Sales of collective investment scheme managed by Eastspring Investments (Singapore) Limited 184, ,776 All transactions with the related company have been entered into in the normal course of business at agreed terms between the related party. 29

34 Eastspring Investments Asian High Yield Bond MY Fund 9. DISTRIBUTION 3-months financial period ended months financial period ended Distribution to unit holders is from the following sources: Prior years income Non-taxable income 73,086 68,704 Less: Expenses (2,551) (3,428) 70,535 65,276 Gross/net distributions per unit in respective currencies - class () AUD Hedged-class (AUD) MYR Hedged-class (MYR) Ex-date 29 June 29 May 2017 Gross distribution is derived using total income less total expenses. Gross distribution per unit is derived from gross realised income less expenses divided by the number of units in circulation, while net distribution for unit is derived from gross realised income less expenses and taxation divided by the number of units in circulation. 30

35 CORPORATE DIRECTORY Quarterly Report THE MANAGER NAME EASTSPRING INVESTMENTS BERHAD COMPANY NO U REGISTERED OFFICE 16 th Floor, Wisma Sime Darby Jalan Raja Laut Kuala Lumpur BUSINESS OFFICE Level 12, Menara Prudential No. 10, Jalan Sultan Ismail Kuala Lumpur TELEPHONE NO FAX NO WEBSITE TRUSTEE NAME DEUTSCHE TRUSTEES MALAYSIA BERHAD COMPANY NO H REGISTERED OFFICE & BUSINESS OFFICE Level 20, Menara IMC No. 8, Jalan Sultan Ismail Kuala Lumpur TELEPHONE NO FAX NO SALE & PURCHASE OF UNITS Eastspring Investments Berhad Level 12, Menara Prudential No. 10, Jalan Sultan Ismail Kuala Lumpur TELEPHONE NO FAX NO

36 Eastspring Investments Asian High Yield Bond MY Fund BRANCHES Petaling Jaya Eastspring Investments Berhad A-17-P1 & M Block A, Jaya One 72A, Jalan Universiti Petaling Jaya, Selangor TELEPHONE NO Kota Kinabalu Eastspring Investments Berhad Suite E3, 9 th Floor CPS Tower, Centre Point Sabah No. 1, Jalan Centre Point Kota Kinabalu, Sabah TELEPHONE NO ENQUIRIES CLIENT SERVICES

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39 Eastspring Investments Berhad ( U) Level 12, Menara Prudential No. 10, Jalan Sultan Ismail, Kuala Lumpur T: (603) F: (603) eastspringinvestments.com.my Client Services T: (603) F: (603)