Hong Leong Asia-Pacific Infrastructure Fund

Reaching out to you

Hong Leong Asia-Pacific Infrastructure FundInterim Report30 April 2018 Unaudited

2017/2018

1H O N G L E O N G A S I A - P A C I F I C I N F R A S T R U C T U R E F U N D

Hong Leong Asia-Pacific Infrastructure Fund

Contents

Page

Manager’s Review and Report 1-8

Statement by the Manager 9

Trustee’s Report 10

Condensed Statement of Comprehensive Income 11

Condensed Statement of Financial Position 12

Condensed Statement of Changes In Equity 13

Condensed Statement of Cash Flows 14

Notes To The Condensed Financial Statements 15-45

Performance Data 46-47

Corporate Information 48

Corporate Directory 49

2 H O N G L E O N G A S I A - P A C I F I C I N F R A S T R U C T U R E F U N D


I. FUND INFORMATION

Fund Name Hong Leong Asia-Pacific Infrastructure Fund

Fund Category Equity

Fund Type Growth

Investment Objective To achieve Medium-To-Long Term* capital growth by investing in

securities (equity or equity-related securities) through a portfolio of companies involved in infrastructure-related businesses in the Asia-Pacific region.

Benchmark MSCI AC Asia-Pac Ex-Japan+MSCI Japan (80:20)

Distribution Policy The Fund intends to provide potentially consistent Medium-To-Long

Term* capital growth. As such, distributions will be incidental to the overall capital growth and a substantial portion of the income returns from investments will be reinvested. The Fund may also declare distributions in the form of additional Units to its Unitholders.

Breakdown of Unitholdings By Size Size of Holdings No. of Accounts No. of Units Held 5,000 and below 46 129,412.59 5,001 to 10,000 46 356,892.56 10,001 to 50,000 45 1,097,318.35 50,001 to 500,000 21 2,933,413.39

500,001 and above 4 24,210,544.12

Note:* Medium-To-Long Term refers to a period of 3 to 5 years.

Manager’s Review and Report


II. FUND PERFORMANCE

Chart 1: Performance of the Fund versus the benchmark covering the last five-year financial period

Past performance is not necessarily indicative of future performance and unit prices and investment returns may go down, as well as up.

706050403020100

-10-20

30-0

4-20

13

30-0

4-20

14

30-0

4-20

15

30-0

4-20

16

30-0

4-20

17

30-0

4-20

18

Perc

enta

ge G

row

th

Hong Leong Asia-Pacific Infrastructure Fund (HLAPIF) 1.60

MSCI AC Asia-Pac Ex-Japan+MSCI Japan (80:20) 56.43

From 30/04/2013 To 30/04/2018

Source: Lipper For Investment Management, In Malaysian Ringgit terms, NAV Per Unit-to-NAV Per Unit basis with gross income (if any) from HLAPIF reinvested.


Performance Review

This Interim Report covers the six-month financial period from 1 November 2017 to 30 April 2018.

During the financial period under review, the Fund slid 4.06% while its benchmark the MSCI AC Asia Pacific ex Japan+MSCI Japan (80:20) Index declined 4.05% (in Malaysian Ringgit terms).

For the five-year financial period ended 30 April 2018, the Fund posted a return of 1.60% while its benchmark registered a return of 56.43%.

Table 1: Performance of the Fund for the following periods as at 30 April 2018 (Source: Lipper For Investment Management)

Table 2: Return of the Fund based on NAV Per Unit-to-NAV Per Unit basis for the period 31 October 2017 to 30 April 2018 (Source: Lipper For Investment Management)

HLAPIF (%)

Benchmark (%)

30/04/13–

30/04/18

5 Years

1.60

56.43

30/04/16–

30/04/18

2 Years

11.97

35.67

30/04/17–

30/04/18

1 Year

-0.74

5.85

31/10/17–

30/04/18

6 Months

-4.06

-4.05

31/01/18–

30/04/18

3 Months

-3.58

-5.18

06/07/07–

30/04/18

Since

Launch

-22.54

36.18

30/04/08–

30/04/18

10 Years

-11.07

48.88

30/04/15–

30/04/18

3 Years

4.87

24.31

NAV Per UnitBenchmarkvs Benchmark (%)

31-Oct-17

RM0.4037141.93

-

Return(%)

-4.06-4.05-0.01

30-Apr-18

RM0.3873136.18

-


Table 3: Financial Highlights

The Net Asset Value attributable to Unitholders is represented by:

Table 4: The Highest and Lowest NAV Per Unit, Total Return of the Fund and the breakdown into Capital Growth and Income Distribution for the financial period/years

Table 5: Average Total Return of the Fund

Change(%)

-2.11-0.58-19.86

-16.46

31-Oct-17(RM)

105,476,176(91,592,933)

13,883,243

34,387,698

30-Apr-18(RM)

103,253,910(92,127,584)

11,126,326

28,727,581

Unitholders’ CapitalAccumulated LossesNet Asset Value

Units in Circulation



Average Total Return (%)

30/04/15–30/04/18

3 Years1.62

30/04/13–30/04/18

5 Years0.32

30/04/17–30/04/18

1 Year-0.74

Financial Year31/10/14–31/10/15

0.38000.3267

7.26-

7.26


0.40610.3527

11.67-

11.67

Financial Year 31/10/15–31/10/16

0.36990.3260

-2.09-

-2.09

Financial Period31/10/17–30/04/18

0.40660.3765-4.06

--4.06

Highest NAV Per Unit (RM)Lowest NAV Per Unit (RM)Capital Growth (%)Income Distribution (%)Total Return (%)


Table 6: Annual Total Return of the Fund


Financial Year

Annual Total Return (%)

31/10/13–31/10/14

-2.69

31/10/14–31/10/15

7.26

31/10/15–31/10/16

-2.09

31/10/16–31/10/17

11.67

31/10/12–31/10/13

-3.18

III. INVESTMENT PORTFOLIO

Chart 2: Asset Allocation - November 2017 to April 2018

Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18

Equities

Chart 3: Sector Allocation as at 30 April 2018

Collective InvestmentSchemes8.46%

Financials5.70%

Transportation23.72%

Hotels8.94%

Industrial Products11.73%

Trading/Services3.60%

Integrated Oils4.39%

Properties0.60%

Utilities6.55%

Deposits & Cash Equivalents17.87%

Telecommunication Services8.44%

Collective Investment Schemes


Chart 4: Geographical Allocation as at 30 April 2018

Strategies employed during the period under review

The Fund took profit on the construction and building materials sectors and switched to into Hong Kong property sector on market weakness and continued accumulating stocks that we have identified earlier.

The Fund increased its equity exposure in Hong Kong on cheap valuation. The Fund reduced its exposure in construction and materials sectors after earnings showed continued signs of weakness.

As of 30 April 2018, the Fund’s top-three holdings are Shangri-La Hotels (Malaysia) Berhad–Malaysia (8.94%), China Mobile Limited–Hong Kong (8.44%) and MTR Corporation Limited–Hong Kong (7.75%).

Please be informed that the Goods and Services Tax (GST) on all fees and charges incurred by our products and services will be zero-rated effective 1 June 2018.

For the financial period under review, there were no significant changes in the state of affairs of the Fund or circumstances that would materially affect the interest of Unitholders up to the date of this Manager’s report.

Hong Kong58.33%

Malaysia13.14%

Thailand7.13%

Deposits & CashEquivalents

17.87%

Singapore3.53%


IV. MARKET REVIEW

During the financial period under review, the Federal Reserve (Fed) announced two hikes of 25 basis points (bps) each in December 2017 and March 2018 respectively, lifting the target range to 1.50%-1.75%, in line with market expectations. Back in Malaysia, Bank Negara Malaysia (BNM) also hiked the Overnight Policy Rate (OPR) by 25bps in January 2018, in line with consensus, albeit slightly earlier than expected, and kept an optimistic view on global growth and the domestic economy. In April, Prime Minister Najib Razak announced the dissolution of parliament early April, more than two months before the end of his five-year term. The next General Election would be held on May 9.

The Malaysian Ringgit (MYR) strengthened against US Dollar (USD) by 7.91% during the period under review to close at 3.92 amid fundamentals remain solid with local economy growth continuing to be strong. Crude oil prices also recovered thanks as inventories start to decline.

Global markets continued to march higher at the start of the period under reviewed but hit the peak in January 2018 and started seeing negative returns amid rising geopolitical tension, trade war risk as well as normalisation of interest rates.

Back in Asia, Bank of Japan (BoJ)’s Governor Kuroda reassured easing bias until end of 2019. The People’s Bank of China (PBoC) cuts its reserve requirement rate (RRR) by 1% after the statistics bureau reported softer-than-expected industrial output and investment growth for March, suggesting economic momentum may already be starting to slow.


V. FUTURE PROSPECTS AND PROPOSED STRATEGIES

Despite the concerns of US Fed may start the balance sheet reduction by early 2018, we remain positive on the global stock markets as we foresee better economic growth to be achieved through higher investment towards infrastructure by respective developing nations. On the other hand, turnaround in consumer sentiment will be another growth driver for the coming years which is supported by better jobs numbers and benign inflation rate.

On the strategy front, we continue to favour the ongoing reform policies in China which target to transform China from “old economy” to “new economy”. We believe that the ongoing reforms would help improve the supply-demand dynamics of old economy, namely building materials sector, and thus driving selling prices.

Our focus remains on taking a disciplined bottom-up approach to actively investing in Hong Kong/China and Malaysia markets while selecting good-quality businesses with strong earnings potential.

We still remain overweight on the infrastructure-related and building materials sectors with strong dividend policy and resilient earnings growth.

VI. SOFT COMMISSIONS

The Manager has received soft commissions from brokers/dealers in the form of goods and services such as research materials, data and quotation services incidental to investment management of the Fund and investment related publications. Such soft commissions received are of demonstrable benefit to Unitholders.


I, Hoo See Kheng, as the Director of Hong Leong Asset Management Bhd, do hereby state that, in the opinion of the Manager, the accompanying unaudited condensed financial statements set out on pages 11 to 45 are drawn up in accordance with the provision of the Deeds and give a true and fair view of the financial position of the Fund as at 30 April 2018 and of its financial performance, changes in equity and cash flows for the financial period ended 30 April 2018 in accordance with the Malaysian Financial Reporting Standards (“MFRS”) 134 “Interim Financial Reporting” and International Financial Reporting Standards (“IFRS”) 34 “Interim Financial Reporting”. For and on behalf of the Manager,Hong Leong Asset Management Bhd(Company No.: 318717-M)

HOO SEE KHENG Chief Executive Officer/Executive Director Kuala Lumpur 19 June 2018

STATEMENT BY THE MANAGER


I, Hoo See Kheng, as the Director of Hong Leong Asset Management Bhd, do hereby state that, in the opinion of the Manager, the accompanying unaudited condensed financial statements set out on pages 12 to 43 are drawn up in accordance with the provision of the Deeds and give a true and fair view of the financial position of the Fund as at 28 February 2017 and of its financial performance, changes in equity and cash flows for the financial period ended 28 February 2017 in accordance with the Malaysian Financial Reporting Standards (“MFRS”) 134 “Interim Financial Reporting” and International Financial Reporting Standards (“IFRS”) 34 “Interim Financial Reporting”. For and on behalf of the Manager, Hong Leong Asset Management Bhd(Company No.: 318717-M)

HOO SEE KHENG Chief Executive Officer/Executive Director Kuala Lumpur 17 April 2017

STATEMENT BY THE MANAGER

We have acted as the Trustee for Hong Leong Asia-Pacific Infrastructure

Fund (“the Fund”) for the financial period ended 30 April 2018. To the best

of our knowledge, for the financial period under review, Hong Leong Asset

Management Bhd (“the Manager”) has operated and managed the Fund

in accordance with the following: -

(a) limitations imposed on the investment powers of the Manager under

the Deed(s), the Securities Commission’s Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007 and other applicable laws;

(b) valuation and pricing for the Fund is carried out in accordance with the Deed(s) of the Fund and applicable regulatory requirements; and

(c) creation and cancellation of units for the Fund are carried out in accordance with the Deed(s) of the Fund and applicable regulatory requirements.

For Deutsche Trustees Malaysia Berhad

Soon Lai Ching Richard Lim Hock Seng Senior Manager, Chief Executive Officer Trustee Operations Kuala Lumpur

19 June 2018

TRUSTEE’S REPORT TO THE UNITHOLDERS OF HONG LEONG ASIA-PACIFIC INFRASTRUCTURE FUND


2018 2017 Note RM RM INVESTMENT (LOSS)/INCOME Interest income 4 11,340 25,543 Dividend income 86,218 141,065 Net (loss)/gain on financial assets at fair value through profit or loss (“FVTPL”) 9 (953,664) 1,261,972 Net gain/(loss) on derivatives 10 561,638 (9,842)Net foreign currency exchange (loss)/gain (48,328) 74,181 (342,796) 1,492,919 EXPENDITURE Management fee 5 (106,184) (138,984)Trustee’s fee 6 (4,856) (6,354)Auditors’ remuneration (4,414) (4,414)Tax agent’s fee (1,300) (2,009)Custodian fee (4,532) (11,187)Transaction costs (48,534) (70,488)Other expenses (17,947) (32,899) (187,767) (266,335) (LOSS)/PROFIT BEFORE TAXATION (530,563) 1,226,584 Taxation 7 (4,088) (2,296)(LOSS)/PROFIT AFTER TAXATION AND TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE FINANCIAL PERIOD (534,651) 1,224,288 (Loss)/profit after taxation is made up as follows: Realised amount 753,071 1,126,330 Unrealised amount (1,287,722) 97,958 (534,651) 1,224,288

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

FOR THE FINANCIAL PERIOD FROM 1 NOVEMBER 2017 TO 30 APRIL 2018

The accompanying notes to the financial statements form an integral part of these unaudited condensed financial statements.


30.04.2018 31.10.2017 Note RM RM ASSETS Cash and cash equivalents 8 2,050,789 1,331,997 Financial assets at fair value through profit or loss (“FVTPL”) 9 9,137,974 12,758,799 Dividends receivable 84 41,315 TOTAL ASSETS 11,188,847 14,132,111 LIABILITIES Amount due to brokers/dealers - 158,989 Amount due to the Manager -cancellation of units 8,973 34,149 Amount due to the Manager -management fee 15,931 21,396 Amount due to the Trustee 728 6,439 Derivatives 10 24,888 12,850 Amount due to the Manager-expenses 306 - Other payables and accruals 11,695 15,045 TOTAL LIABILITIES 62,521 248,868 NET ASSET VALUE OF THE FUND 11,126,326 13,883,243 EQUITY Unitholders’ capital 103,253,910 105,476,176 Accumulated losses (92,127,584) (91,592,933)NET ASSETS ATTRIBUTABLE TO UNITHOLDERS 11,126,326 13,883,243

UNITS IN CIRCULATION (UNITS) 11 28,727,581 34,387,698 NET ASSET VALUE PER UNIT (RM) 0.3873 0.4037

CONDENSED STATEMENT OF FINANCIAL POSITION (Unaudited)

AS AT 30 APRIL 2018




Unitholders’ Accumulated capital losses Total RM RM RM

Balance as at 1 November 2017 105,476,176 (91,592,933) 13,883,243 Movement in net asset value: Cancellation of units (2,222,266) - (2,222,266)Total comprehensive loss for the financial period - (534,651) (534,651)Balance as at 30 April 2018 103,253,910 (92,127,584) 11,126,326 Balance as at 1 November 2016 110,140,399 (93,345,101) 16,795,298 Movement in net asset value: Cancellation of units (2,151,467) - (2,151,467)Total comprehensive income for the financial period - 1,224,288 1,224,288 Balance as at 30 April 2017 107,988,932 (92,120,813) 15,868,119

CONDENSED STATEMENT OF CHANGES IN EQUITY (Unaudited)




2018 2017 RM RM

CASH FLOWS FROM OPERATING ACTIVITIES Proceeds from sales of financial assets at FVTPL 8,606,606 11,290,505 Purchase of financial assets at FVTPL (6,127,078) (9,608,977)Realised gain/(loss) on derivatives 573,676 (45,931)Realised foreign exchange differences arising from operating activities (4,443) 175,033 Interest received 11,340 25,543 Dividends received 103,865 143,921 Management fee paid (111,649) (141,305)Trustee’s fee paid (10,567) (8,542)Payment for other fees and expenses (31,237) (53,750)Net cash generated from operating activities 3,010,513 1,776,497 CASH FLOWS FROM FINANCING ACTIVITIES Payments for cancellation of units (2,247,442) (2,154,594)Net cash used in financing activities (2,247,442) (2,154,594)

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 763,071 (378,097)EFFECTS OF FOREIGN EXCHANGE RATE CHANGES (44,279) (100,708) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE FINANCIAL PERIOD 1,331,997 3,589,000 CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL PERIOD 2,050,789 3,110,195

CONDENSED STATEMENT OF CASH FLOWS (Unaudited)



1. THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES

Hong Leong Asia-Pacific Infrastructure Fund (“the Fund”) was constituted pursuant to the execution of a Deed dated 2 July 2007 and Supplemental Deeds dated 25 August 2008 and 30 April 2010 between the Manager, Hong Leong Asset Management Bhd, OSK Trustees Berhad and the registered unitholders of the Fund. OSK Trustees Berhad has been replaced with Deutsche Trustees Malaysia Berhad (“the Trustee”) effective 1 September 2012 and Supplemental Master Deeds were entered into between the Manager, the Trustee and the registered unitholders of the Fund on 27 July 2012 and 25 March 2015 to effect the change (“the Deeds”).

The Fund aims to achieve Medium-To-Long Term capital growth by

investing in securities (equity or equity-related securities) through a portfolio of companies involved in infrastructure-related businesses in the Asia-Pacific region.

The Fund will invest a minimum 70% of its NAV into equities and equity-related securities involved in the infrastructure-related businesses in the Asia-Pacific region. A maximum 30% of its NAV may be invested into fixed income instruments which include fixed income securities, money market instruments and deposits. The Fund commenced operations on 6 July 2007 and will continue its operations until terminated as provided under Part 12 of the Deed.

The Manager of the Fund is Hong Leong Asset Management Bhd, a company incorporated in Malaysia. The principal activity of the Manager is the management of unit trust funds and private investment mandates. Its holding company is Hong Leong Capital Berhad, a company incorporated in Malaysia and listed on the Main Market of Bursa Malaysia Securities Berhad.

The financial statements were authorised for issue by the Manager on 19 June 2018.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Unaudited)

FOR THE FINANCIAL PERIOD FROM 1 NOVEMBER 2017TO 30 APRIL 2018


2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements:

(a) Basis of preparation

The condensed financial statements are unaudited and have

been prepared in accordance with the provisions of the Malaysian Financial Reporting Standards (“MFRS”) 134 “Interim Financial Reporting” and International Financial Reporting Standards (“IFRS”) 34 “Interim Financial Reporting”.

The condensed financial statements should be read in conjuction with the audited financial statements of the Fund for the financial year ended 31 October 2017 which have been prepared in accordance with the provisions of the Malaysian Financial Reporting Standards (“MFRS”) and International Financial Reporting Standards (“IFRS”).

Financial assets are designated at fair value through profit or loss when their performance are managed and evaluated on a fair value basis. The Fund designates its investments in quoted equity securities, quoted collective investment schemes and quoted exchange traded fund as financial assets at fair value through profit or loss at inception.

(b) Financial assets and financial liabilities Classification

Derivatives are financial assets/liabilitites at fair value through profit or loss unless they are designated hedges (Note 2(k)).

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and have been included in assets. The Fund’s loans and receivables comprise cash and cash equivalents and dividends receivable.


Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability. The Fund classifies amount due to brokers/dealers, amount due to the Manager-cancellation of units, amount due to the Manager-management fee, amount due to the Trustee, amount due to the Manager-expenses and other payables and accruals (excludes GST reverse charge payable) as other financial liabilities.

Recognition and measurement

Regular purchases and sales of financial assets are recognised on the trade-date – the date on which the Fund commits to purchase or sell the asset. Investments are initially recognised at fair value. Transaction costs are expensed in the statement of comprehensive income.

Financial liabilities, within the scope of MFRS 139, are recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the financial instrument.

Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the Fund has transferred substantially all risks and rewards of ownership.

Financial liabilities are derecognised when it is extinguished, i.e. when the obligation specified in the contract is discharged or cancelled or expired.

Unrealised gains or losses arising from changes in the fair value of the financial assets at fair value through profit or loss including the effects of currency translation are presented in the statement of comprehensive income within net gain or loss on financial assets at fair value through profit or loss in the period which they arise.

Dividend income from financial assets at fair value through profit or loss is recognised in the statement of comprehensive income


as part of dividend income when the Fund’s right to receive payments is established.

Local quoted investments are valued at the last done market prices quoted on Bursa Malaysia Securities Berhad (“Bursa Securities”) at the date of the statement of financial position.

Foreign quoted investments are valued at the last traded market prices quoted on the respective foreign stock exchanges at the close of the business day of the respective foreign stock exchanges.

If a valuation based on the market price does not represent the fair value of the quoted investments, for example during abnormal market conditions or when no market price is available, including in the event of a suspension in the quotation of the quoted securities for a period exceeding 14 days, or such shorter period as agreed by the Trustee, then the quoted securities are valued as determined in good faith by the Manager, based on the methods or bases approved by the Trustee after appropriate technical consultation.

Deposits with licensed financial institutions are stated at cost plus accrued interest calculated on the effective interest method over the period from the date of placement to the date of maturity of the respective deposits, which is a close estimate of their fair value due to the short term nature of the deposits. Loans and receivables and other financial liabilities are subsequently carried at amortised cost using the effective interest method.


Impairment

For assets carried at amortised cost, the Fund assesses at the end of the reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

The amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognised in the statement of comprehensive income. If ‘loans and receivables’ has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

As a practical expedient, the Fund may measure impairment on the basis of an instrument’s fair value using an observable market price.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor’s credit rating), the reversal of the previously recognised impairment loss is recognised in the statement of comprehensive income.

When an asset is uncollectible, it is written off against the related allowance account. Such assets are written off after all the necessary procedures have been completed and the amount of the loss has been determined.


(c) Foreign currency Functional and presentation currency

Items included in the financial statements of the Fund

are measured using the currency of the primary economic environment in which the Fund operates (the “functional currency”). The financial statements are presented in Ringgit Malaysia (“RM”), which is the Fund’s functional and presentation currency.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss, except when deferred in other comprehensive income as qualifying cash flow hedges.

Translation differences on non-monetary financial assets and liabilities such as equities, collective investment schemes and exchange traded fund held at fair value through profit or loss are recognised in profit or loss as part of the fair value gain or loss.

(d) Income recognition

Dividend income is recognised on the ex-dividend date when the Fund’s right to receive payment is established.

Interest income from deposits with licensed financial institutions is recognised on the effective interest method on an accrual basis.

Realised gain or loss on disposal of quoted investments is accounted for as the difference between the net disposal proceeds and the carrying amount of quoted investments, determined on a weighted average cost basis.


(e) Cash and cash equivalents

For the purpose of statement of cash flows, cash and cash equivalents comprise cash at banks and deposits held in highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(f) Amount due from/to brokers/dealers Amount due from/to brokers/dealers represents receivables/payables for investments sold/purchased that have been contracted for but not yet settled or delivered on the statement of financial position date respectively.

These amounts are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment for amount due from brokers/dealers. A provision for impairment of amount due from a broker/dealer is established when there is objective evidence that the Fund will not be able to collect all amounts due from the relevant broker/dealer. Significant financial difficulties of the broker/dealer, probability that the broker/dealer will enter bankruptcy or financial reorganisation, and default in payments are considered indicators that the amount due from brokers/dealers is impaired. Once a financial asset or a group of similar financial assets has been written down as a result of an impairment loss, interest income is recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss.

(g) Taxation

Current tax expense is determined according to Malaysian tax laws at the prevailing tax rate based on the taxable profit earned during the financial period. Tax on investment income from foreign investments is based on the tax regime of the respective countries that the Fund invests in.


(h) Transaction costs Transaction costs are costs incurred to acquire or dispose financial assets or liabilities at fair value through profit or loss. They include fees and commissions paid to agents, advisors and brokers/dealers. Transaction costs, when incurred, are immediately recognised in the statement of comprehensive income as expenses.

(i) Unitholders’ capital

The unitholders’ contributions to the Fund meet the criteria to be classified as equity instruments under MFRS 132 “Financial Instruments: Presentation”. Those criteria include: • the units entitle the unitholder to a proportionate share of

the Fund’s net asset value; • the units are the most subordinated class and class features

are identical; • there is no contractual obligations to deliver cash or another

financial asset other than the obligation on the Fund to repurchase the units; and

• the total expected cash flows from the units over its life are based substantially on the profit or loss and change in the net asset value of the Fund.

The outstanding units are carried at the redemption amount that is payable at the date of the statement of financial position if unitholder exercises the right to put the unit back to the Fund. Units are created and cancelled at prices based on the Fund’s net asset value per unit at the time of creation and cancellation. The Fund’s net asset value per unit is calculated by dividing the net assets attributable to unitholders with the total number of outstanding units.


(j) Segmental information Operating segments are reported in a manner consistent with the internal reporting used by the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Investment Committee of the Fund’s manager that undertakes strategic decisions for the Fund.

(k) Derivatives

A derivative is any contract that gives rise to a financial asset/liability of the Fund and a financial liability/asset or equity instrument of another enterprise.

A financial asset is any asset that is cash, a contractual right to receive cash or another financial asset from another enterprise, a contractual right to exchange financial instruments with another enterprise under conditions that are potentially favorable, or an equity instrument of another enterprise.

A financial liability is any liability that is a contractual obligation to deliver cash or another financial asset to another enterprise, or to exchange financial instruments with another enterprise under conditions that are potentially unfavorable.

The Fund’s derivatives comprise unquoted forward currency contracts. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and is subsequently re-measured at their fair value.


(l) Fair value of financial instruments

Financial instruments comprise financial assets and financial liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The information presented herein represents the estimates of fair values as at the date of the statement of financial position. The Fund’s financial assets and financial liabilities are measured on an ongoing basis at either fair value or at amortised cost based on the respective classification.

The following table analyses the financial assets and financial liabilities of the Fund in the statement of financial position as at the reporting date:

Loans and Financial receivables/ assets other liabilities financial at FVTPL liabilities Total

RM RM RM

30.04.2018 Financial assets Cash and cash equivalents (Note 8) - 2,050,789 2,050,789

Financial assets at FVTPL (Note 9) 9,137,974 - 9,137,974 Dividends receivable - 84 84 9,137,974 2,050,873 11,188,847

Financial liabilities Amount due to the Manager -cancellation of units - 8,973 8,973

Amount due to the Manager -management fee - 15,931 15,931

Amount due to the Trustee - 728 728 Derivatives (Note 10) 24,888 - 24,888 Amount due to the Manager

-expenses - 306 306 Other payables and accruals* - 11,616 11,616

24,888 37,554 62,442

* Excludes GST reverse charge of RM79 during the period.


Loans and Financial receivables/ assets other liabilities financial at FVTPL liabilities Total

RM RM RM 31.10.2017

Financial assets Cash and cash equivalents (Note 8) - 1,331,997 1,331,997

Financial assets at FVTPL (Note 9) 12,758,799 - 12,758,799 Dividends receivable - 41,315 41,315 12,758,799 1,373,312 14,132,111

Financial liabilities

Amount due to the Manager -cancellation of units - 34,149 34,149

Amount due to the Manager -management fee - 21,396 21,396

Amount due to the Trustee - 6,439 6,439 Amount due to brokers/dealers - 158,989 158,989 Derivatives (Note 10) 12,850 - 12,850 Other payables and accruals* - 14,919 14,919 12,850 235,892 248,742

* Excludes GST reverse charge of RM126 during the period.

All liabilities are financial liabilities which are carried at amortised cost.


(m) Critical accounting estimates and judgments in applying accounting policies The Fund makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely equal the related actual results. To enhance the information content of the estimates, certain key variables that are anticipated to have material impact to the Funds’ results and financial position are tested for sensitivity to changes in the underlying parameters.

Estimates and judgments are continually evaluated by the Manager and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

In undertaking any of the Fund’s investment, the Manager will ensure that all assets of the Fund under management will be valued appropriately, that is at fair value and in compliance with the Securities Commission Malaysia’s Guidelines on Unit Trust Funds.

However, the Manager is of the opinion that there are no accounting policies which require significant judgment to be exercised.

3. FAIR VALUE ESTIMATION

The fair value of forward foreign exchange contracts is determined using forward exchange rates at the statement of financial position, with the resulting value discounted back to present value.

The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and the nature of the item being hedged. Derivatives that do not qualify for hedge accounting are classified as held for trading and accounted for in accordance with the accounting policy set out in Note 2(b).

The fair value of financial assets traded in active markets (such as publicly traded derivatives and trading securities) are based on quoted market prices at the close of trading on the reporting date. The Fund


utilises the last traded market price for financial assets where the last traded price falls within the bid-ask spread. In circumstances where the last traded price is not within the bid-ask spread, the Manager will determine the point within the bid-ask spread that is most representative of the fair value.

A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly availabe from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occuring market transactions on an arm’s length basis.

The fair value of financial assets that are not traded in an active market is determined by using valuation techniques. The Fund uses a variety of methods and makes assumptions that are based on market conditions existing at each period end date. Valuation techniques used for non-standardised financial instruments such as options, currency swaps and other over-the-counter derivatives, include the use of comparable recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity-specific inputs.

For instruments for which there is no active market, the Fund may use internally developed models, which are usually based on valuation methods and techniques generally recognised as standard within the industry. Valuation models are used primarily to value unlisted equity, debt securities and other debt instruments for which market were or have been inactive during the financial period. Some of the inputs to these models may not be market observable and are therefore estimated based on assumptions.

The output of a model is always an estimate or approximation of a value that cannot be determined with certainty, and valuation techniques employed may not fully reflect all factors relevant to the positions the Fund holds. Valuations are therefore adjusted, where appropriate, to allow for additional factors including model risk, liquidity risk and counter party risk.


An active market is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an on-going basis.

(i) Fair value hierarchy

The table below analyses financial instruments carried at fair value. The different levels have been defined as follows:

• Quoted prices (unadjusted) in active market for identical assets

or liabilities (Level 1); • Inputs other than quoted prices included within level 1 that are

observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2); and

• Inputs for the asset and liability that are not based on observable

market data (that is, unobservable inputs) (Level 3)

The level in the fair value hierarchy within which the fair value

measurement is categorised in its entirely is determined on the

basis of the lowest level input that is significant to the fair value

measurement in its entirely. For this purpose, the significance of

an input is assessed against the fair value measurement in its

entirely. If a fair value measurement uses observable inputs that

requires significant adjustment based on unobservable inputs,

that measurement is a Level 3 measurement. Assessing the

significance of a particular input to the fair value measurement

in its entirely requires judgment, considering factors specific to

the asset or liability.

The determination of what constitutes ‘observable’ requires significant judgment by the Fund. The Fund considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.


Level 1 Level 2 Level 3 Total RM RM RM RM 30.04.2018

Financial assets at FVTPL: - Quoted equity securities - local 1,461,541 - - 1,461,541

- Quoted equity securities - foreign 6,734,564 - - 6,734,564

- Quoted collective investment schemes - foreign 393,198 - - 393,198

- Quoted exchange traded fund - foreign 548,671 - - 548,671

9,137,974 - - 9,137,974 Financial liabilities:

- Derivatives - (24,888) - (24,888)

31.10.2017 Financial assets at FVTPL: - Quoted equity securities - local 3,522,325 - - 3,522,325

- Quoted equity securities - foreign 7,205,743 - - 7,205,743

- Quoted collective investment schemes - foreign 1,677,428 - - 1,677,428

- Quoted exchange traded fund - foreign 353,303 - - 353,303 12,758,799 - - 12,758,799 Financial liabilities:

- Derivatives - (12,850) - (12,850)

Investments whose values are based on quoted market prices in

active markets, and are therefore classified within Level 1, include

active listed equities, listed collective investment schemes and listed

exchange traded fund. The Fund does not adjust the quoted prices for

these instruments. The Fund’s policies on valuation of these financial

assets are stated in Note 2(b).

Financial instruments that trade in markets that are not considered

to be active but are valued based on quoted market prices, dealer

quotations or alternative pricing sources supported by observable

inputs are classified within Level 2. These include derivatives. As Level


2 instruments include positions that are not traded in active markets

and/or are subject to transfer restrictions, valuations may be adjusted to

reflect illiquidity and/or non-transferability, which are generally based

on available market information. The Fund’s policies on valuation of

these financial liabilities are stated in Note 2(b).

(ii) The carrying values of financial assets (other than financial assets at

FVTPL) and financial liabilities (other than derivatives) are a reasonable

approximation of their fair values due to their short term nature.

4. INTEREST INCOME

2018 2017 RM RM

Interest income from: - Deposits with licensed financial institutions 11,340 25,543

5. MANAGEMENT FEE

In accordance with Division 13.1 of the Deed, the Manager is entitled to a management fee of up to 2.50% per annum calculated daily based on the net asset value of the Fund.

For the financial period from 1 November 2017 to 30 April 2018,

the management fee is recognised at a rate of 1.75% (01.11.2016 to 30.04.2017: 1.75%) per annum.

There will be no further liability to the Manager in respect of management fee other than the amount recognised above.


6. TRUSTEE’S FEE

In accordance with Division 13.2 of the Deed, the Trustee is entitled to a fee not exceeding 1.00% subject to a minimum of RM18,000 per annum calculated daily based on the net asset value of the Fund.

For the financial period from 1 November 2017 to 30 April 2018, the trustee’s fee is recognised at a rate of 0.08% (01.11.2016 to 30.04.2017: 0.08%) per annum.

There will be no further liability to the Trustee in respect of trustee’s fee other than the amount recognised above.

7. TAXATION

2018 2017 RM RM Tax charge for the financial period:

Current taxation - foreign 4,088 2,296

The numerical reconciliation between (loss)/profit before taxation multiplied by the Malaysian statutory income tax rate and tax expense of the Fund is as follows: 2018 2017

RM RM

(Loss)/profit before taxation (530,563) 1,226,584

Taxation at Malaysian statutory rate of 24% (2017: 24%) (127,335) 294,380 Tax effects of:

Investment income subject to withholding tax 4,088 2,296 Investment loss not deductible for tax purposes/

(Investment income not subject to tax) 82,271 (358,301) Expenses not deductible for tax purposes 15,011 22,802 Restriction on tax deductible expenses for unit trust fund 30,053 41,119 Taxation 4,088 2,296


8. CASH AND CASH EQUIVALENTS

30.04.2018 31.10.2017 RM RM

Deposits with licensed financial institutions 359,032 1,092,216 Cash at banks 1,691,757 239,781

2,050,789 1,331,997 The weighted average effective interest rates per annum are as follows:

30.04.2018 31.10.2017 % %

Deposits with licensed financial institutions 3.20 3.60

Deposits with licensed financial institutions have an average maturity of 2 days

(31.10.2017: 1 day).

9. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (“FVTPL”)

30.04.2018 31.10.2017 RM RM

Financial assets at FVTPL: Quoted equity securities - local 1,461,541 3,522,325

Quoted equity securities - foreign 6,734,564 7,205,743 Quoted collective investment schemes - foreign 393,198 1,677,428 Quoted exchange traded fund - foreign 548,671 353,303 9,137,974 12,758,799

2018 2017 RM RM

Net (loss)/gain on financial assets at FVTPL: Realised gain on disposals 277,603 1,099,251 Changes in unrealised fair values (1,231,267) 162,721 (953,664) 1,261,972


Financial assets at FVTPL as at 30 April 2018 are as detailed below:

Percentage Aggregate Fair of net asset Quantity cost value value units RM RM % QUOTED EQUITY SECURITIES - LOCAL

Hotels Shangri-La Hotels (Malaysia)

Berhad 169,600 1,088,524 993,856 8.94 Trading/Services

Westports Holdings Berhad 120,000 475,515 400,800 3.60 Properties

Guocoland Berhad 73,500 94,264 66,885 0.60 TOTAL QUOTED EQUITY SECURITIES - LOCAL 363,100 1,658,303 1,461,541 13.14 QUOTED EQUITY SECURITIES - FOREIGN Hong Kong

Financials Sun Hung Kai Properties Limited 10,000 666,715 633,620 5.70

Industrials

China Merchants Port Holdings Company Limited 58,000 592,467 511,833 4.60

Intergrated Oils CLP Holdings Limited 12,000 478,425 488,707 4.39

Telecommunication Services China Mobile Limited 25,000 1,101,331 939,436 8.44

Transportation Jiangsu Expressway Company Limited* 120,000 639,926 647,611 5.82

Beijing Capital International Airport Company Limited* 38,000 210,321 204,317 1.84

MTR Corporation Limited 39,000 929,772 862,357 7.75 Shenzhen Expressway

Company Limited* 120,000 489,861 479,712 4.31 Zhejiang Expressway Co.

Ltd.* 110,000 489,198 444,683 4.00 427,000 2,759,078 2,638,680 23.72


Percentage Aggregate Fair of net asset Quantity cost value value units RM RM % Utilities

CK Hutchison Holdings Limited 3,000 148,890 139,566 1.25

Utilities Network CK Infrastructure Holdings Limited 19,000 642,252 589,596 5.30

Total Hong Kong 554,000 6,389,158 5,941,438 53.40

Thailand

Industrials Airports of Thailand Public Company Limited ̂ 36,000 268,699 318,534 2.86

BTS Group Holdings Public Company Limited ̂ 427,000 468,641 474,592 4.27

Total Thailand 463,000 737,340 793,126 7.13

TOTAL QUOTED EQUITY SECURITIES - FOREIGN 1,017,000 7,126,498 6,734,564 60.53

QUOTED COLLECTIVE INVESTMENT SCHEMES - FOREIGN

Singapore

Real Estate Investment Trust

Frasers Commercial Trust 2,234 9,616 9,255 0.08 Frasers Hospitality Trust 173,000 392,982 383,943 3.45

TOTAL QUOTED COLLECTIVE INVESTMENT SCHEMES -

FOREIGN 175,234 402,598 393,198 3.53


(Total acquisitions for the financial period + total disposals for the financial period)/2Average net asset value of the Fund for the financial period calculated on a daily basis

Percentage Aggregate Fair of net asset Quantity cost value value units RM RM % QUOTED EXCHANGE TRADED FUND - FOREIGN

Hong Kong

Vanguard FTSE Japan Index ETF 40,000 495,386 548,671 4.93

TOTAL QUOTED EXCHANGE TRADED

FUND - FOREIGN 40,000 495,386 548,671 4.93 TOTAL INVESTMENTS 1,595,334 9,682,785 9,137,974 82.13

UNREALISED LOSS ON FINANCIAL ASSETS AT FVTPL (544,811)

TOTAL FAIR VALUE OF FINANCIAL ASSETS AT FVTPL 9,137,974


Financial assets at FVTPL as at 31 October 2017 are as detailed below: Percentage Aggregate Fair of net asset Quantity cost value value units RM RM %

QUOTED EQUITY SECURITIES - LOCAL

Hotels Shangri-La Hotels (Malaysia) Berhad 233,000 1,495,436 1,211,600 8.73

Industrial Products

Hume Industries Berhad 167,000 519,794 417,500 3.01 Malaysia Steel Works (KL) Bhd 351,600 285,675 450,048 3.24 518,600 805,469 867,548 6.25 Properties

GuocoLand (Malaysia) Berhad 418,200 536,339 489,294 3.52

Trading/Services Engtex Group Berhad 529,900 644,818 619,983 4.47

Westports Holdings Berhad 90,000 375,223 333,900 2.41 619,900 1,020,041 953,883 6.88

TOTAL QUOTED EQUITY SECURITIES - LOCAL 1,789,700 3,857,285 3,522,325 25.38

QUOTED EQUITY SECURITIES - FOREIGN

Hong Kong

Energy China Shenhua Energy Company

Limited* 14,000 150,522 141,571 1.02 Industrial

Beijing Enterprises Holdings Limited 21,000 480,656 528,042 3.80

COSCO SHIPPING Ports Limited 132,000 635,740 647,354 4.66

CRRC Corporation Limited* 140,000 534,558 584,056 4.21 293,000 1,650,954 1,759,452 12.67 Telecommunication Services

China Mobile Limited 18,000 868,094 765,088 5.51


Percentage Aggregate Fair of net asset Quantity cost value value units RM RM %

Transportation Beijing Capital International

Airport Company Limited* 200,000 829,833 1,388,800 10.00 Jiangsu Expressway Company

Limited* 170,000 906,562 1,103,011 7.95 MTR Corporation Limited 20,000 483,537 490,420 3.53 Shenzhen Expressway Company

Limited* 120,000 489,861 519,498 3.74 Zhejiang Expressway Co., Ltd* 110,000 489,198 575,864 4.15 620,000 3,198,991 4,077,593 29.37 Total Hong Kong 945,000 5,868,561 6,743,704 48.57

Thailand

Industrials BTS Group Holdings Public Company Limited 427,000 468,641 462,039 3.33

Total Thailand 427,000 468,641 462,039 3.33

TOTAL QUOTED EQUITY SECURITIES - FOREIGN 1,372,000 6,337,202 7,205,743 51.90

QUOTED COLLECTIVE INVESTMENT SCHEMES - FOREIGN Singapore Real Estate Investment Trust Frasers Commercial Trust 142,483 594,606 613,112 4.42

Frasers Hospitality Trust 173,000 392,982 421,933 3.04 Hutchison Port Holdings Trust 158,000 273,301 287,488 2.07 Mapletree Industrial Trust 56,000 313,699 337,534 2.43 Mapletree Logistics Trust 4,400 15,825 17,361 0.12

TOTAL QUOTED COLLECTIVE INVESTMENT SCHEMES

- FOREIGN 533,883 1,590,413 1,677,428 12.08


Percentage Aggregate Fair of net asset Quantity cost value value units RM RM % QUOTED EXCHANGE TRADED FUND - FOREIGN

Hong Kong

Vanguard FTSE Japan Index ETF 25,000 287,443 353,303 2.54

TOTAL QUOTED EXCHANGE TRADED FUND - FOREIGN 25,000 287,443 353,303 2.54

TOTAL INVESTMENTS 3,720,583 12,072,343 12,758,799 91.90

UNREALISED GAIN ON

FINANCIAL ASSETS AT FVTPL 686,456

TOTAL FAIR VALUE OF FINANCIAL ASSETS AT FVTPL 12,758,799

* H Shares are shares of the company incorporated in the Chinese mainland that is listed on the Hong Kong Stock Exchange. These shares are denominated in

Hong Kong dollars and trade the same as other equities on the Hong Kong Stock Exchange.

^ NVDR, non-voting depository receipt, is a trading instrument issued by Thai NVDR Company Limited, a subsidiary wholly owned by the Stock Exchange

of Thailand (“SET”). It is a valid security as specified by the United States Securities and Exchange Commision (“SEC”) and is automatically regarded as a listed security by the SET. The underlying security listed is a listed security

in the SET.


10. DERIVATIVES

Derivatives comprise forward currency contracts. The negative fair value represents the unrealised loss on the revaluation of forward currency at the reporting date. The contract or underlying principal amount of the forward currency contracts and the corresponding gross negative fair value at the end of each reporting date is analysed below: 30.04.2018 31.10.2017

RM RM

Derivative liabilities: Forward currency contracts 24,888 12,850

2018 2017 RM RM

Net gain/(loss) on derivatives: Realised gain/(loss) on disposals 573,676 (45,931)

Changes in unrealised fair values (12,038) 36,089 561,638 (9,842)

Contract or underlying Maturity principal *Fair value date amounts RM

30.04.2018 Hong Kong Dollar within 1 month 7,034,000 (26,026) Singapore Dollar within 1 month 235,000 1,293 Thai Baht within 1 month 3,086,000 (93) United States Dollar within 1 month 2,000 (62) (24,888)

31.10.2017 Hong Kong Dollar within 1 month 6,581,000 (15,136) Singapore Dollar within 1 month 226,000 2,712 United States Dollar within 1 month 37,000 (426) (12,850)

* Being the difference between the contract price and the market forward price discounted at appropriate discount rates.

As the Fund has not adopted hedge accounting during the financial year, the change in the fair value of the forward currency contracts is recognised immediately in the statement of comprehensive income.


11. UNITS IN CIRCULATION

01.11.2017 01.11.2016 to 30.04.2018 to 31.10.2017 No. of units No. of units At the beginning of the financial period/year 34,387,698 46,464,686

Less: Cancellation of units during the financial period/year (5,660,117) (12,076,988)

At the end of the financial period/year 28,727,581 34,387,698

12. MANAGEMENT EXPENSE RATIO (“MER”)

2018 2017 % %

MER (annualised) 2.26 2.43

Management expense ratio includes management fee, trustee’s fee, auditors’ remuneration, tax agent’s fee, custodian fee and other expenses for the financial period divided by the Fund’s average net asset value calculated on a daily basis and is calculated as follows:

MER = (A+B+C+D+E+F)

G Where; A = Management fee B = Trustee’s fee C = Auditors’ remuneration D = Tax agent’s fee E = Custodian fee F = Other expenses excluding Goods and Services Tax (“GST”) on transaction costs

G = Average net asset value of the Fund

calculated on a daily basis

The average net asset value of the Fund for the financial period calculated on a daily basis is RM12,230,110 (01.11.2016 to 30.04.2017: RM16,014,619).


x 100


13. PORTFOLIO TURNOVER RATIO (“PTR”)

2018 2017 Times Times

PTR 0.58 0.63

PTR is derived from the following calculation:

Where:total acquisitions for the financial period = RM5,948,567 (01.11.2016 to 30.04.2017: RM9,579,081) total disposals for the financial period = RM8,357,483 (01.11.2016 to 30.04.2017: RM10,471,842)



14. UNITS HELD BY THE MANAGER AND RELATED PARTIES TRANSACTIONS AND BALANCES

The related parties and their relationships with the Fund are as follows:

Related parties Relationships Hong Leong Asset Management Bhd The Manager Hong Leong Capital Berhad Holding company of the Manager Hong Leong Financial Group Ultimate holding company of Berhad (“HLFG”) the ManagerSubsidiaries and associates of Subsidiaries and associate HLFG as disclosed in its companies of the ultimate financial statements holding company of the Manager

No units were held by the Manager and parties related to the Manager

as at 30 April 2018 and 31 October 2017. In addition to related party disclosures mentioned elsewhere in the financial statements, set out below are other related party transactions and balances. The Manager is of the opinion that all transactions with the related companies have been entered into at agreed terms between the related parties.

30.04.2018 31.10.2017 RM RM

Related party balances Cash at bank - Hong Leong Bank Berhad 19,589 19,844 Derivatives: - Hong Leong Bank Berhad (93) - - Hong Leong Investment Bank Berhad (24,795) (12,850) Interest receivable - Hong Leong Bank Berhad - 108 (5,299) 7,102


2018 2017 RM RM

Related party transactions Interest income from deposits

with licensed financial institutions: - Hong Leong Bank Berhad 581 - - Hong Leong Investment Bank Berhad 363 5,372 944 5,372 Purchase of quoted equity securities: - Hong Leong Investment Bank Berhad 1,042,152 355,477 Disposal of quoted equity securities: - Hong Leong Investment Bank Berhad 2,351,617 2,207,569 Purchase of quoted collective investment schemes: - Hong Leong Investment Bank Berhad - 128,841


15. TRANSACTIONS WITH BROKERS/DEALERS

Detail of transactions with brokers/dealers are as follows:

Percentage of total Value Percentage Brokerage Brokerage of trade of total trade fees fees RM % RM %

2018 CLSA Limited 3,782,593 25.95 9,457 27.85 Credit Suisse (Hong Kong)

Limited 3,602,601 24.72 7,205 21.22 Hong Leong Investment

Bank Berhad* 3,393,769 23.28 7,766 22.87 DBS Vickers Securities

(Singapore) Pte Ltd 2,520,946 17.30 6,309 18.58 Kenanga investment Bank

Berhad 549,414 3.77 1,376 4.05 Affin Hwang Investment Bank

Berhad 380,131 2.61 954 2.81 CIMB Investment Bank Berhad 319,733 2.19 798 2.35 Alliance Investment Bank

Berhad 19,681 0.14 49 0.15 Maybank Investment Bank

Berhad 6,360 0.04 40 0.12 14,575,228 100.00 33,954 100.00

2017 HDBS Vickers Securities

(Singapore) Pte Ltd 9,583,843 45.34 23,980 47.77 CLSA Limited 2,835,305 13.41 7,080 14.10 Hong Leong Investment

Bank Berhad* 2,691,887 12.73 6,532 13.01 CIMB Investment Bank Berhad 2,285,636 10.81 5,718 11.39 Daiwa Capital Markets Hong

Kong Limited 2,025,485 9.58 3,033 6.04 Maybank Investment Bank

Berhad 495,872 2.35 1,244 2.48 Shenwan Hongyuan

Securities (H.K.) Limited 335,515 1.59 669 1.33 RHB Investment Bank Berhad 325,850 1.54 344 0.69 Alliance Investment Bank

Berhad 188,155 0.89 472 0.94 China International Capital

Corporation Hong Kong Securities limited 179,508 0.85 358 0.71

Others 192,421 0.91 771 1.54 21,139,477 100.00 19,141 100.00

* Transactions with brokers/dealers related to the Manager.

The Manager is of the opinion that all transactions with the related companies have been entered into at agreed terms between the related parties.


16. SEGMENT INFORMATION

The internal reporting provided to the chief operating decision maker

for the Fund’s assets, liabilities and performance is prepared on a

consistent basis with the measurement and recognition principles of

MFRS and IFRS. The chief operating decision-maker is responsible for

the performance of the Fund and considers the business to have a

single operating segment. Asset allocation decisions are based on a

single, integrated investment strategy and the Fund’s performance is

evaluated on an overall basis.

The reportable operating segment derives its income by seeking

investments to achieve targeted returns consummate with an

acceptable level of risk within the portfolio. These returns consist of

interest income, dividend income and gains on the appreciation in

the value of investments and are derived in Malaysia, Hong Kong,

Singapore and Thailand.

There were no changes in reportable segment during the financial

period.


Performance Data

* Source: Lipper For Investment Management (Returns are calculated after adjusting for distributions and/or additional units, if any)

# The PTR decreased by 0.38 times (39.58%) as compared to 0.96 times for the financial year ended 31 October 2017 and 0.05 times (7.94%) as compared to 0.63 times for the financial period from 1 November 2016 to 30 April 2017 mainly due to lower level of rebalancing activities undertaken by the Fund.

A (i) Portfolio Compositions: By Sector: Industrial Products Construction Telecommunication Services Energy Utilities Financials Real Estate Materials Consumer Products Trading/Services Mining Infrastructure Project Companies Properties Hotels Integrated Oils Transportation Collective Investment Schemes Deposits & Cash Equivalents

By Country: Hong Kong Malaysia Singapore Australia South Korea Thailand Indonesia Deposits & Cash Equivalents

(ii) Total Net Asset Value

(iii) Net Asset Value Per Unit Units in Circulation

(iv) Highest/Lowest NAV Per Unit

(v) Total Return of the Fund* - Capital Growth - Income Distribution

(vi) Distribution Per Unit

(vii) Management Expense Ratio (MER) (viii) Portfolio Turnover Ratio (PTR) (times) B Average Total Return, NAV Per Unit-to-NAV Per Unit basis (as at 30/04/18)* (i) One year (ii) Two years (iii) Three years (iv) Five years (v) Ten Years

Financial Period31/10/17–30/04/18

%

11.73–

8.44–

6.555.70

–––

3.60––

0.608.944.39

23.72 8.4617.87

58.3313.143.53

––

7.13–

17.87

RM11,126,326

RM0.387328,727,581

RM0.4066RM0.3765

-4.06%-4.06%

–

––––

2.26%

0.58#

-0.74%5.99%1.62%0.32%-1.11%

Highest NAV Per UnitLowest NAV Per Unit

Additional UnitsDistribution (Gross)

Distribution (Net)Distribution Date



%

3.45–

9.87–––––

13.1627.48

––

6.596.54

––

11.5421.37

10.8758.928.84

––––

21.37

RM24,600,515

RM0.369266,633,738

RM0.3800RM0.3267

7.26%7.26%

–

––––

2.01%

2.54


%

29.242.5410.77

–5.79

–––

1.6115.26

–7.455.184.62

–––

17.54

30.2036.6612.523.08

–––

17.54

RM40,269,882

RM0.3442116,991,551

RM0.3639RM0.3313

-2.69%-2.69%

–

––––

2.07%

2.16


%

20.78–

2.5110.39

–12.872.2211.2413.909.351.41

–––––

2.3113.02

24.7811.614.15

15.523.999.4017.5313.02

RM69,510,589

RM0.3537196,858,108

RM0.4065RM0.3290

-3.18%-3.18%

–

––––

1.91%

1.00


%

20.402.125.86

–––––

14.4817.64

––

9.447.28

––

1.7721.01

28.0448.35

–––

2.60–

21.01

RM16,795,298

RM0.361546,464,686

RM0.3699RM0.3260

-2.09%-2.09%

–

––––

2.04%

1.25


%

22.25–

5.511.02

–––––

6.88–

29.373.528.73

––

14.628.10

51.1125.3812.08

––

3.33–

8.10

RM13,883,243

RM0.403734,387,698

RM0.4061RM0.3527

11.67%11.67%

–

––––

2.34%

0.96


Corporate Information

ManagerHong Leong Asset Management Bhd (318717-M)

Registered Office Level 30, Menara Hong LeongNo. 6, Jalan Damanlela, Bukit Damansara50490 Kuala Lumpur

Business OfficeLevel 18, Block B, HP TowersNo. 12, Jalan GelenggangBukit Damansara50490 Kuala Lumpur

Board of Directors Mr. Chew Seong AunMr. Hoo See KhengDato’ Abdul Majit Bin Ahmad KhanTunku Dato’ Mahmood Fawzy Bin Tunku Muhiyiddin

Executive Director / Chief Executive OfficerMr. Hoo See Kheng

Secretaries Ms. Christine Moh Suat Moi (MAICSA No. 7005095)Mr. Lee Tiong Jie (MAICSA No. 7060133)

Trustee Deutsche Trustees Malaysia Berhad (763590-H)

Banker Hong Leong Bank Berhad (97141-X)

Agents Hong Leong Bank Berhad (97141-X)United Overseas Bank (Malaysia) Berhad (271809-K)Registered Independent Tied Agents with FiMM


Corporate Directory

Head OfficeLevel 18, Block B, HP TowersNo. 12, Jalan GelenggangBukit Damansara50490 Kuala LumpurTel: 03-2081 8600Fax: 03-2081 8500Website: www.hlam.com.myE-mail: [email protected]

Pulau Pinang No. 441-1-3Pulau Tikus Plaza, Jalan Burmah10350 Pulau Tikus, Pulau PinangTel: 04-2288 112, 04-2289 112Fax: 04-2283 112 Ipoh2nd Floor, Lot 3, Persiaran Greentown 4Greentown Business Centre30450 Ipoh, PerakTel: 05-2558 388, 05-2559 388, 05-2534 388Fax: 05-2558 389


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Hong Leong Asset Management Bhd (318717-M) www.hlam.com.my

Hong Leong Asia-Pacific Infrastructure Fund

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