annual report manulife advanced fund spc
TRANSCRIPT
Manulife Advanced Fund SPC
Audited Financial Statementsfor the year ended 30 June 2021
Annual Report
Manulife Advanced Fund SPC
Manulife Advanced Fund SPC
Table of Contents
Company Information 1
Directors’ Report for the year ended 30 June 2021 2
Investment Manager’s Report for the year ended 30 June 2021 3
Report of the Custodian 18
Independent Auditors' Report 19
Statement of Financial Position 22
Statement of Comprehensive Income 24
Statement of Changes in Net Assets Attributable to holders of Redeemable Participating Shares 26
Statement of Changes in Equity 26
Statement of Cash Flows 27
Statement of Distribution 30
Notes to Financial Statements 38
Portfolio of Investments
– China A Segregated Portfolio (the “China A Fund”) 95
– Renminbi Bond Segregated Portfolio (the “Bond Fund”) 97
– Asia Pacific Income and Growth Segregated Portfolio (the “Asia Pacific Income and Growth Fund”) 99
– U.S. Bank Equity Segregated Portfolio (the "U.S. Bank Equity Fund") 104
– Greater Bay Area Growth and Income Segregated Portfolio (the "Greater Bay Area Growth and Income Fund") 107
Statement of Movements in Investment Portfolios 111
Performance Table 114
Information on Exposure arising from Financial Derivative Instruments 121
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Company Information
Registered Office of the CompanyP.O. Box 309Ugland HouseGrand Cayman, KY1– 1104Cayman Islands
Principal Office of the CompanyC/o FirstCaribbean International Bank and Trust Company (Cayman) Limited (formerly known as CIBC Bank and Trust Company (Cayman) Limited) 25 Main Street, 4th FloorGeorge Town, P.O. Box 694Grand Cayman, KY1– 1107 Cayman Islands
General Adviser and Distributor of the CompanyManulife Investment Management (Hong Kong) Limited10th Floor, Lee Garden One33 Hysan AvenueCauseway BayHong Kong SAR
Investment Manager of the CompanyManulife Investment Management (Hong Kong) Limited10th Floor, Lee Garden One33 Hysan AvenueCauseway BayHong Kong SAR
Sub–Investment Manager of the U.S. BankEquity FundManulife Investment Management (US) LLC197 Clarendon Street, Boston, MA02116United States of America
Investment Adviser of the China A FundManulife TEDA Fund Management Co., Ltd.3rd Floor, South BuildingWinland International Finance Center7 Financial StreetXicheng District, Beijing 100033People's Republic of China
Auditors of the CompanyErnst & Young Ltd. Suite 6401, 62 Forum LaneCamana BayP.O. Box 510, Grand Cayman, KY1– 1106Cayman Islands
Legal Advisers to the Company(as to matters of Hong Kong law):Deacons5th Floor, Alexandra HouseChater Road, CentralHong Kong SAR
Legal Advisers to the Company(as to matters of Cayman Islands law):Maples and Calder (Hong Kong) LLP26th Floor, Central Plaza18 Harbour Road, WanchaiHong Kong SAR
Directors of the Company
Bruno Lee
Endre Pedersen
Shinichi Yamamoto (since 1 January 2021)
Leo Zerilli (until 30 December 2020)
Custodian and Paying Agent of the CompanyCitibank Europe plc, Luxembourg Branch31, Z.A. BourmichtL– 8070 BertrangeGrand Duchy of Luxembourg
Administrator of the CompanyFirstCaribbean International Bank and TrustCompany (Cayman) Limited (formerly known asCIBC Bank and Trust Company (Cayman) Limited)25 Main Street, 4th FloorGeorge Town, P.O. Box 694Grand Cayman, KY1– 1107Cayman Islands
Sub–Administrator, Registrar and Transfer Agent of the CompanyCitibank Europe plc, Luxembourg Branch31, Z.A. BourmichtL– 8070 BertrangeGrand Duchy of Luxembourg
Sub–Delegate of the Sub–Administrator, Registrar and Transfer Agent of the Company Citibank N.A., Hong Kong Branch50th Floor, Champion Tower3 Garden Road, CentralHong Kong SAR
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Directors' Report for the year ended 30 June 2021
Year in Review
The China A Fund has underperformed the benchmark over the past twelve-month period ending 30 June 2021. Asset allocation decisions added value while stock selection offset part of the gains. At the sector level, stock selection in industrials and materials contributed the most positively while consumer discretionary and healthcare hurt performance. The overweight to materials and industrials and the underweight to financials added value to performance. Partly offsetting the outperformance was the underweight to healthcare.
The Bond Fund’s overweight exposure to corporate bonds was a contributor to returns primarily due to higher carry, however, this was offset by the portfolio’s small exposure to Chinese yuan (offshore) which marginally underperformed Chinese yuan (onshore) over the period.
The Greater Bay Area Growth and Income Fund’s equity exposure increased alongside the broader Chinese and Hong Kong equity markets. Positive returns mainly came from almost all sectors led by industrials, financials, and communication services. Partly offsetting the gains was the utility sector.
The Asia Pacific Income and Growth Fund detracted on the back of stock selection and asset allocation decisions at the country and sector level.
The U.S. Bank Equity Fund has underperformed the benchmark during the period.
Outlook
Asian equities continue to trade at a reasonable discount to global markets and we anticipate strong double-digit earnings recovery in 2021. Although 10-year bond yields have risen since the start of the year, equity dividend yields continue to look attractive compared to bond yields. We see scope for further reductions in valuation dispersions between high price-earnings growth stocks and stocks that have attractive yields as we enter a period of global economic recovery as vaccinations take hold across the region and around the world.
If Asian growth continues to lag against the US growth-rate then the US dollar should continue to be supported with the US Federal Reserve Board embarking on a path to reduce its asset purchase programme as early as the end of 2021 and potential rate hikes starting in 2023. With respect to the Chinese yuan, it will likely remain supported by China’s relatively attractive interest rates and stable monetary policy while index inclusion and fund flows into Chinese assets will also help offset the factors driving US dollar strength.
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Investment Manager's Report for the year ended 30 June 2021
MAF China A Segregated Portfolio (the “China A Fund”)
Investment Objective
The objective of the China A Fund is to achieve long-term capital appreciation by investing primarily in mainland China’s capital markets. The China A Fund seeks to achieve its investment objective by mainly investing (i.e. not less than 70% of its net assets) in companies listed on the A-Share markets of the Shanghai Stock Exchange and/or the Shenzhen Stock Exchange.
Performance Review as of 30 June 2021*:
Share Class AA (From 1 July 2020 to 30 June 2021) 33.60%
Benchmark** (From 1 July 2020 to 30 June 2021) 37.35%
Source: Manulife Investment Management (Hong Kong) Limited
Portfolio Review
The sub-Fund has underperformed the benchmark over the past twelve-month period ending 30 June 2021. Asset allocation decisions added value while stock selection offset part of the gains. At the sector level, stock selection in industrials and materials contributed the most positively while consumer discretionary and healthcare hurt performance. The overweight to materials and industrials and the underweight to financials added value to performance. Partly offsetting the outperformance was the underweight to healthcare.
The sub-Fund’s exposure to the industrial sector was the main contributor to the performance. The sub-Fund’s holding in a leading industrial robot maker was a key contributor. The company reported a solid set of first quarter 2021 results with revenue and net profit growth over 77% and 95% year-on-year. The company has been gaining market share in both domestic and overseas markets thanks to its clear focus on high quality robotic products. Another contributor was the sub-Fund’s holding in a leading lithium battery separator manufacturer. The stock continued to enjoy re-rating after a robust set of first quarter 2021 results and the announcement of a management incentive programme.
On the detractor side, the sub-Fund’s holding in a pharmaceutical glass manufacturer faced profit-taking pressure. The company manufactures a variety of glass products for pharmaceutical uses such as testing tubes and injection bottles. The company reported a 20% growth in net profit for the first half of this year but had not seen further re-rating after the vaccination rollout. Another detractor was a leading domestic condiment manufacturer. Despite solid net income growth of over 40% in the second quarter, the stock retreated in the month after a strong run year-to-date. We remain positive on the company’s growth outlook and believe its product premiumisation strategy will continue to play out.
* The performance return is calculated in class base currency and includes dividends re-invested.** The return represents the performance of 70% CSI 300 Index + 30% MSCI Zhonghua Index until 9 February, 2011 and
thereafter CSI 300 Index.
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Portfolio Review (continued)
During the period, the sub-Fund has added more exposure to industrials and information technology in order to capture domestic driven growth in automation and manufacturing upgrades. The sub-Fund reduced exposure in consumer discretionary and healthcare given the limited valuation upside from further re-rating. At period-end, the industrials sector was the largest overweight with financials being the largest underweight.
Market Review
Chinese equities moved higher for the past year, amid high market volatility. In the second half of 2020, Chinese equities climbed on the back of the healthy economic rebound and positive corporate earnings. On the economic front, third-quarter gross domestic product (GDP) came in at 4.9% year-on-year. Monthly economic data releases in the lower half of the year also showed a broad-based rebound on both the demand and supply side. Industrial profits and manufacturing fixed asset investments continued to point to solid expansion of industrial and services activity.
Turning to 2021, Chinese equities moved marginally lower for the first quarter on the back of positive economic indicators. In the second quarter, Chinese equities rose on strong first-quarter earnings. Chinese equities rebounded further from mid-May and the effect of style rotation from growth to value seemed to diminish. Towards quarter-end, growth-related China A-shares represented by the ChiNext and STAR 50 indices regained momentum while offshore Chinese equities showed diverged performance across sectors.
Capital flow wise, the Northbound Stock Connect Programme continued to register net inflows for the month albeit at a slower pace. Foreign ownership in A-shares had risen to an all-time high of 4.5%, up from 3.6% at end of 2019, and tripled the 1.5% in 2014 when Stock Connect was inaugurated.
On the policy front, the government released the initial details of the 14th Five-Year Plan (2021-2025), which will focus on boosting domestic consumption and accelerating technological development in key industries. At the macro level, the market’s focus remained on the country’s Two Sessions (i.e. congress meetings) held in March 2021 where the GDP growth target was stated at above 6% for 2021. Key policy directives on growth and sustainability topics were released with an emphasis on carbon neutral ambitions by 2060.
Investment Manager's Report (continued) for the year ended 30 June 2021
MAF China A Segregated Portfolio (the “China A Fund”) (continued)
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Investment Manager's Report (continued) for the year ended 30 June 2021
MAF China A Segregated Portfolio (the “China A Fund”) (continued)
Outlook
In 2021, we expect the performance of China A-shares to be more balanced across sectors and styles. We expect market volatility may remain in the near-term. In the near-team, we are focusing on companies which have product differentiation and pricing power in order to pass on cost inflation.
With China having laid out a clear path towards a more internally-driven economy, we see opportunities in technology, industrial upgrades and the consumer sectors. On the technology front, we anticipate more home-grown innovation in areas like technology supply chains. These efforts will likely be bolstered by additional fiscal and policy support, such as tax incentives and low-cost funding to boost local research and development and reduce the reliance on imports. Electric vehicle (EV) development is another attractive theme, backed by both domestic demand and the local industry’s increasing presence in the global EV supply chain.
We continue to focus on under-researched ideas with solid growth outlooks and to tap into unique investment opportunities that do not exist in the offshore universe. We believe the index inclusion of mid cap stocks will continue to broaden and deepen global investor interest in this segment.
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* The performance return is calculated in class base currency and includes dividends re-invested.** The return represents the performance of 70% Shanghai T-bond Index + 30% short end cash rate until 23 February 2011.
From then until 31 December 2013, it represents Shanghai T-bond Index, from 1 January 2014 until 30 April 2016, it represents HSBC China Local Currency Government Bond (1-10 years) Index , from 1 May 2016 to 30 September 2020, it represents Markit iBoxx ALBI China Onshore 1-10 Index, and thereafter Markit iBoxx ALBI China Onshore Bond Index.
Investment Manager's Report (continued) for the year ended 30 June 2021
MAF Renminbi Bond Segregated Portfolio (the “Bond Fund”)
Investment Objective
The objective of the Bond Fund is to provide capital appreciation and income generation by investing primarily in RMB–denominated debt instruments issued and listed in Mainland China or traded in the Mainland China interbank bond market, in accordance with applicable QFII regulations. The Bond Fund invests primarily (i.e. not less than 70% and up to 100% of its of its net assets) in RMB–denominated debt instruments, including convertible bonds, that are listed or transferred on either the Shanghai Stock Exchangeor the Shenzhen Stock Exchange, or interbank bonds, and which are issued by the Mainland China Government as well as corporations in Mainland China.
Performance Review as of 30 June 2021*:
Share Class AA (USD) (From 1 July 2020 to 30 June 2021) 10.42%
Share Class I (USD) (From 1 July 2020 to 30 June 2021) 10.69%
Benchmark** (From 1 July 2020 to 30 June 2021) 12.48%
Source: Manulife Investment Management (Hong Kong) Limited
Portfolio Review
The portfolio detracted over the period. The portfolio’s overweight exposure to corporate bonds was a contributor to returns primarily due to higher carry, however, this was offset by the portfolio’s small exposure to Chinese yuan (offshore) which marginally underperformed Chinese yuan (onshore) over the period.
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Investment Manager's Report (continued) for the year ended 30 June 2021
MAF Renminbi Bond Segregated Portfolio (the “Bond Fund”) (continued)
Market Review
China’s first quarter 2021 gross domestic product (GDP) growth was marginally below expectations at 18.3% year-on-year, due to the favourable base effect, following 6.5% year-on-year growth in the fourth quarter of 2020. The Caixin Manufacturing Purchasing Managers’ Index (PMI) eased from 53 at the beginning of the year but generally remained stable and above 50, showing expansionary activity, and finished the period at 51.3 at the end of June. The lower PMI readings since the beginning of the year suggested that growth momentum in the domestic economy was moderating over the period as further waves of the Covid-19 virus and tighter pandemic control measures globally took effect on the economic recovery. June exports (US dollar terms) grew by 32.2% year-on-year and imports grew by 35.7% year-on-year. The trade balance was US$51.53 billion compared with US$46.42 billion at the beginning of the period. China’s export activity over the period has been resilient with the outlook for solid external demand remaining intact. May industrial production grew by 8.8% year-on-year while May retail sales grew by 12.4% year-on-year, with both indicators below market expectations. The weaker than expected consumption recovery so far can be attributable to a number of factors including higher mobility restrictions due to the pandemic and the recovery to household income lagging GDP growth. June consumer price index (CPI) inflation increased to 1.1% year-on-year, indicating that CPI was relatively contained as food prices continued to decline. On the other hand, June producer price index inflation accelerated to 8.8% year-on-year and continued to be impacted by the rally in commodity prices over the first half. Aggregate finance was 3.67 trillion Chinese yuan at the end of June while new yuan loans increased by 2.12 trillion Chinese yuan, both above expectations. China’s foreign reserves stood at US$3.214 trillion at the end of June.
China’s 2021 government work report, released during the first half, has set the 2021 growth target at “above 6%”, placing an emphasis on reform, innovation and high-quality growth. The fiscal deficit target has also been lowered to 3.2% of GDP from 3.6% in 2020 with the overall government bond issuance quota lowered to 7.22 trillion yuan. M2 and total social financing growth is expected to be kept consistent with GDP growth. The targets outlined in the government work report point to a normalisation of macroeconomic policy with an emphasis on stability and sustainability. In March, FTSE Russell confirmed the inclusion of Chinese government bonds in the widely followed WGBI index from October 2021. This should see continued demand for Chinese bonds from global investors and flows into the China bond market in the months ahead. Throughout this period, monetary policy has also remained stable with the People’s Bank of China (the "PBOC") leaving policy rates unchanged.
The 10-year Chinese government bond yield increased from 2.85% to 3.09% over the year. The Chinese yuan appreciated from 7.06 to 6.46 against the US dollar over the period. China’s onshore bonds continued to be supported by inflows from foreign investors over the period which has helped support the renminbi against the US dollar over the period. The Markit iBoxx ALBI China Onshore Total Return Index returned 12.48% in US dollar terms over the period.
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Investment Manager's Report (continued) for the year ended 30 June 2021
MAF Renminbi Bond Segregated Portfolio (the “Bond Fund”) (continued)
Outlook
The latest economic data from China in June remained mixed with market expectations gradually shifting to likely slower economic growth in the second half of this year. Monetary policy remains stable with the PBoC continuing to communicate its neutral policy stance while managing the market’s expectations that short-end rates remain the key tool in managing market liquidity. One of the key market risks is that the US dollar will continue to strengthen from current levels after the US dollar/Chines yuan has been trading higher after testing the 6.20 level. The next resistance level is 6.50 for the US dollar/Chinese yuan. So far, the currency has remained within this range. If Asian growth continues to lag against the US growth-rate then the US dollar should continue to be supported with the US Federal Reserve Board embarking on a path to reduce its asset purchase programme as early as the end of 2021 and potential rate hikes starting in 2023. With respect to the Chinese yuan, it will likely remain supported by China’s relatively attractive interest rates and stable monetary policy while index inclusion and fund flows into Chinese assets will also help offset the factors driving US dollar strength. Overall, the Chinese yuan is expected to remain stable and to continue within its trading range against other major currencies.
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Investment Manager's Report (continued) for the period ended 30 June 2021
MAF Asia Pacific Income and Growth Segregated Portfolio(the “Asia Pacific Income and Growth Fund”)
Investment Objective
The investment objective of the Asia Pacific Income and Growth Fund is to provide income and capital appreciation over the medium to longer term by investing primarily in equity and fixed income–related securities in the Asia Pacific ex–Japan region. The Asia Pacific Income and Growth Fund targets an asset allocation of 60% in equity securities and 40% in fixed income securities in that region. However the Asia Pacific Income and Growth Fund may hold between 25% and 75% in either equity securities or fixed income securities in that region in pursuance of its investment objective.
Performance Review as of 30 June 2021*:
Share Class AA (USD) Inc (From 1 July 2020 to 30 June 2021) 12.02%
Benchmark** (From 1 July 2020 to 30 June 2021) 24.32%
Source: Manulife Investment Management (Hong Kong) Limited
Portfolio Review
As the sub-Fund’s focus is on generating sustainable income, the market rally driven by the post Covid-19 economic recovery led to a detraction in the sub-Fund. During the reporting period, the sub-Fund detracted on the back of stock selection and asset allocation decisions at the country and sector level. Stock selection in China was the primary detractor to performance as growth-oriented Chinese companies in the technology and healthcare sector rallied. Partially offsetting the detraction was stock selection in South Korea and Taiwan and the overweight to Taiwan and underweight to China.
The primary performance detractors were telecommunication and defensive infrastructure names in Hong Kong and China. As expectation of cyclical growth picked-up in the second half of 2020, traditionally defensive and income-oriented sectors underperformed the broader market. The fundamental outlook of these companies remains unchanged, and we believe that the ability to pay a consistent dividend and grow the dividend remains intact.
Contributing strongly was the sub-Fund’s Taiwan technology exposure as the overweight added significant value. One of the world’s largest semiconductor foundries, this Taiwanese company performed well after reporting strong second quarter earnings and is also seen to be one of the primary beneficiaries of an outsourcing opportunity from one of the world’s largest semiconductor manufacturers due to a delay in the ramp up of production. Also contributing positively to performance was the sub-Fund’s holding in a South Korean memory and smartphone manufacturer on the back of improved outlook for memory pricing, market share gains, and the expectations of an improving shareholder return policy moving forward. The company’s operational performance continues to fire on all cylinders across multiple businesses, all of which provides the company with multiple earnings catalysts for 2021.
Over the period, the portfolio’s overall security selection contributed to performance with US dollar-denominated holdings of an Indian agrochemical manufacturer and a Chinese property developer being the outperformers. In addition was the underweight US dollar interest rate duration as US Treasury yields rose. There were no significant detractors.
* The performance return is calculated in class base currency and includes dividends re-invested.** The return represents the performance of 60% MSCI AC Asia Pacific ex Japan Index + 40% JP Morgan Asia Credit Index.
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Investment Manager's Report (continued) for the year ended 30 June 2021
MAF Asia Pacific Income and Growth Segregated Portfolio(the “Asia Pacific Income and Growth Fund”) (continued)
Market Review
Asia-Pacific ex Japan equity markets moved higher during the period which started with a raft of better-than-expected third quarter technology earnings in the US and Europe, as well as dovish monetary policy and robust fiscal stimulus. In late August, the US Federal Reserve Board (Fed) introduced a new policy framework that empowers the central bank to allow inflation above the current 2% target for a sustained period before increasing interest rates, which markets broadly interpreted as a signal of “lower for longer” interest rates that fuelled bullish sentiment. In September, many Asian markets followed developed markets lower on a cocktail of worries: rising US-China tensions, a potential contested US presidential election in November, and stalled fiscal stimulus in key markets. The US presidential election took centre stage in November with the election of Joe Biden and a split US Congress. The result triggered risk-on sentiment that spurred capital inflows to emerging markets and Asia, with many lagging ASEAN markets posting banner months. In December, markets rose on the back of numerous positive catalysts such as the beginning of the Covid-19 vaccination rollout in many countries, the US Congress passing a US$900 billion stimulus bill, and the United Kingdom reaching a last-minute Brexit deal with the European Union. To start the new year, in February and March, yields surged in the US as President Biden signed into law a US$1.9 billion fiscal package and proposed an additional US$3 billion in infrastructure spending. As a result, investors rotated into value names from growth as markets priced in a post-pandemic macroeconomic environment of increased economic growth and inflation. During the second quarter, global markets were influenced by two developments: 1) investor optimism over the economic reopening and improving vaccination rates in developed economies, while outbreaks continued in markets with lower vaccination rates; and 2) debate over whether above-trend inflationary pressures in some markets may be transitory in nature. In June, the Fed gave an unexpectedly hawkish statement, as a majority of the Federal Open Market Committee (FOMC) members believed two rate hikes would occur in 2023 – earlier than market consensus.
US Treasury yields rose over the period on the back of fiscal packages by the Biden administration, Covid-19 cases stabilising, the vaccine rollout and generally positive economic data. After passing a US$900 billion relief bill in December, the Biden administration passed a US$1.9 trillion fiscal package in March. On the economic data front, US gross domestic product (GDP) rebounded following a contraction in the second quarter of 2020 while first quarter 2021 GDP growth posted at 6.4% (first estimate, annualised, quarter-on-quarter), while the headline consumer price index rose by 5% year-on-year in May, hitting the highest monthly gains since 2008. At the June FOMC meeting, the Fed was generally viewed as hawkish as they hinted at a higher likelihood of rate hikes. Post-Fed meeting, Treasury yields retraced to lower levels after Fed officials eased inflation fears and expected inflationary pressure to be transitory. Over the period, the 10-year Treasury yield rose to 1.47% from 0.66%. Asian credit markets posted positive returns due to tightened credit spreads and positive carry, offsetting the higher US Treasury yields. The Asian high-yield corporate segment outperformed Asian investment grade credit over the period; the JP Morgan Asian Investment Grade Corporate Bond Index increased by 2.40%, while the JP Morgan Asian High Yield Corporate Bond Index increased by 7.85% in US dollar terms. The US administration expanded investment bans on Chinese companies and provided more clarity to investors in terms of coverage, though the new list was mostly in line with the previous one. In Malaysia, S&P affirmed its A- sovereign rating and maintained a negative outlook due to renewed Covid-19 cases, though it did not induce significant price action.
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Outlook
Despite global equity market valuations looking elevated relative to history, low absolute interest rates and somewhat depressed earnings need to be kept in mind with multiples looking far more reasonable several years out. Asian equities continue to trade at a reasonable discount to global markets and we anticipate
strong double-digit earnings recovery in 2021. Although 10-year bond yields have risen since the start of the year, equity dividend yields continue to look attractive compared to bond yields. We see scope for further reductions in valuation dispersions between high price-earnings growth stocks and stocks that have attractive yields as we enter a period of global economic recovery as vaccinations take hold across the region and around the world.
The strength in the anticipated economic recovery has led us to favour more cyclical yields such as within materials and ports for instance. The consumer spending recovery is also prompting us to increase our allocation towards the consumer discretionary sector particularly those who also have solid long-term growth prospects. Bond proxy equities are less favoured compared to last year given the recent steepening in the yield curve. Although real estate investment trusts can be considered as bond proxies, we maintain a strong allocation as a source of yield although we favour trusts that benefit from a reopening post-Covid lockdowns such as retail commercial trusts. We also continue to see strong value in many expressway companies which are seeing a dramatic increase in traffic post-Covid. Many companies we like that offer robust growth at a reasonable yield continue to be within the Taiwanese information technology sector which continues to benefit from ongoing chip shortages and ongoing structural growth profiles with solid cash flows and generous dividend payout ratios.
We continue to hold several exposures within the banking sector. The steepening yield curve together with our view that many regional property markets should see a recovery in activity should lead to stronger earnings fundamentals. In terms of growth sectors, we see some value emerging back into the Chinese e-commerce sector which has corrected due to the anti-monopoly campaign. Compared to a few months ago, there is a lot more clarity on what the earnings impact would be from fines and alterations to business practices. Overall, the earnings growth profile continues to look attractive at much lower valuations.
Given the growth recovery scenario and somewhat elevated inflation expectations, we prefer equities over fixed income at this point. Within fixed income, the focus remains on yield extraction through credit opportunities within the high-yield space while maintaining shorter duration profiles.
Investment Manager's Report (continued) for the year ended 30 June 2021
MAF Asia Pacific Income and Growth Segregated Portfolio(the “Asia Pacific Income and Growth Fund”) (continued)
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Investment Objective
The investment objective of the U.S. Bank Equity Fund is to achieve medium to long term growth of capital primarily through investing in equities and equity-related investments of U.S. banks. The U.S. Bank Equity Fund (i) shall invest at least 80% and up to 100% of its net assets in (a) equity securities of U.S. banks, such as publicly traded common, preferred and convertible preferred stocks; and (b) other U.S. banks focused equity-related investments such as American depositary receipts, European depositary receipts, global depositary receipts and ETFs; (ii) may invest up to 20% of its net assets in equity securities of other U.S. and foreign financial services companies and/or in cash, short term securities and money markets instruments such as bank deposits, certificates of deposits, discount notes, treasury and agency debt, or collateralised and/or securitised products; and (iii) may invest up to 5% of its net assets in equity securities of companies outside the financial services sector.
Performance Review as of 30 June 2021*:
Share Class AA (USD) Inc (From 1 July 2020 to 30 June 2021) 69.78%
Share Class AA (HKD) Inc (From 1 July 2020 to 30 June 2021) 70.13%
Benchmark** (From 1 July 2020 to 30 June 2021) 70.46%
Source: Manulife Investment Management (Hong Kong) Limited
Portfolio Review
The fund underperformed its benchmark during the period.
A Phoenix, Arizona headquartered was a relative outperformer as the bank’s stock price increased significantly as the economy rebounded from the lock downs in 2020. The bank’s hospitality loan portfolio recovered faster than expected and has experienced minimal credit losses. Additionally, the bank generated above peer loan growth which also bolstered its shares.
Another outperformer is a Santa Clara, California headquartered bank with a major presence to Silicon Valley. This bank’s technology focused customers thrived during the pandemic which led to exceptional deposit growth. Additionally, the bank realized warrant gains as several its customers tapped the equity markets bolstering its profitability.
A Louisville, Kentucky based bank was a laggard after holding up better going into the beginning of COVID-19 downturn in the first half of 2020. This regional bank is a conservative underwriter with a strong trust business and we continue to own its shares.
Likewise, a Novato, California based regional bank also underperformed. This bank is another historically conservative underwriter whose shares held up relatively well earlier in the pandemic and lagged over the course of the year. The bank also announced the acquisition of another California based bank, which is also a holding of the Fund. The accretive transaction is strategically compelling and we continue to hold both banks.
Investment Manager's Report (continued) for the year ended 30 June 2021
MAF U.S. Bank Equity Segregated Portfolio(the “U.S. Bank Equity Fund”)
* The performance return is calculated in class base currency and includes dividends re-invested.** The return represents the performance of S&P Composite 1500 Banks Index.
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Investment Manager's Report (continued) for the year ended 30 June 2021
MAF U.S. Bank Equity Segregated Portfolio(the “U.S. Bank Equity Fund”) (continued)
Market Review
U.S. stocks posted a stellar advance for the year ended June 30, 2021, as massive federal government stimulus and the rollout of highly effective COVID-19 vaccines boosted prospects for economic recovery. Added tailwinds came from healthy corporate earnings and the resolution of the November presidential election. As the period progressed, mounting optimism around the economy and the possibility Congress would pass a bipartisan infrastructure spending bill further encouraged investors. These tailwinds far outweighed volatility brought on by unrest at the Capitol last January, regional virus surges and, later in the period, the spread of the new more infectious Delta variant of COVID-19. Inflation fears also intermittently weighed on returns.
For the 12-month period, secularly driven growth stocks and economically sensitive value stocks delivered very similar returns across the broader market. Smaller-capitalization stocks, which tend to be more levered to the economy’s direction, outperformed their larger-capitalization peers, with small-cap value stocks delivering the strongest gain by far.
Within the broad-based S&P 500 Index, the financials sector posted the most notable advance, buoyed by the prospect that an economic recovery would boost loan demand and the possibility of higher interest rates. In addition, rising equity markets bolstered assets under management. The economically sensitive industrials, energy, and materials sectors also were very strong performers. Lastly, the communication services sector notched an outsized gain, as many of the products and services these companies offer remained in high demand. No sectors posted a decline for the period. The biggest laggard was the more-defensive utilities sector, which nevertheless posted an above-average return.
U.S. Bank stocks outperformed the broader market in this environment. The fund’s benchmark, the S&P Composite 1500 Banks Index, increased 75.92% for the period.
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Investment Manager's Report (continued) for the year ended 30 June 2021
MAF U.S. Bank Equity Segregated Portfolio(the “U.S. Bank Equity Fund”) (continued)
Outlook
Given the strength of the U.S. banking system today, we believe that U.S. banks will continue to provide support to the U.S. economy as businesses recover from the pandemic. This is drastically different from the Global Financial Crisis when banks were at the root of the economic problems. Today, U.S. banks are fundamentally strong, extremely well capitalized and have ample liquidity to support their customers.
As the economy continues its process of re-opening, we’ve seen a wind down of the loan payment deferrals that banks granted many customers―temporary relief known as forbearance. Additionally, the most recent stimulus packaged that was approved in late March should support the economy and reduce credit costs further.
Another major factor that will benefit banks heading into the second half of the year was the positive results from the latest Fed CCAR stress test. The Federal Reserve’s temporary restrictions on dividends and the amount of stock repurchases ended on June 30th allowing for additional capital return in the second half of the year.
Meanwhile, operating efficiency for banks continues to improve. As these trends continue, we expect U.S. banks’ 2021 earnings to rebound from 2020 levels where banks established significant credit reserves in the first half of the year.
U.S. banks remain undervalued relative to its history and relative to the overall market. They are fundamentally strong with historically high levels of capital and liquidity, which will allow them to provide support to their customers. M&A activity, which slowed during the pandemic as banks focus on their customers, has restarted with several notable transactions and we expect this will continue throughout 2021.
Manulife Advanced Fund SPC
15
Investment Manager's Report (continued) for the year ended 30 June 2021
MAF Greater Bay Area Growth and Income Segregated Portfolio (the “Greater Bay Area Growth and Income Fund”)
Investment Objective
The investment objective of the Greater Bay Area Growth and Income Fund is to achieve capital growth and income generation by investing primarily in a diversified portfolio of equity and equity-related securities and fixed income securities of issuers which are connected to the region comprising Hong Kong, Macau and the Guangdong Province of China (“Greater Bay Area”). The Greater Bay Area Growth and Income Fund shall invest at least 70% of its net assets in equity and equity-related securities (which are listed on any stock exchange) and fixed income securities of governments or corporate issuers established and/or with substantial business interests in the Greater Bay Area. Equity and equity-related securities include common stocks, preferred stocks, depositary receipts and real estate investment trusts.
Performance Review as of 30 June 2021*:
Share Class AA (USD) (From 1 July 2020 to 30 June 2021) 15.31%
Share Class AA (USD) Inc (From 1 July 2020 to 30 June 2021) 15.31%
Class AA (AUD) Inc Hedged (From 1 July 2020 to 30 June 2021) 14.22%
Class AA (HKD) Inc (From 1 July 2020 to 30 June 2021) 15.55%
Source: Manulife Investment Management (Hong Kong) Limited
Portfolio Review
During the reporting period ending 30 June 2021, the sub-Fund’s equity exposure increased alongside the broader Chinese and Hong Kong equity markets. Positive returns mainly came from almost all sectors led by industrials, financials, and communication services. Partly offsetting the gains was the utility sector.For the equity portion, within the sub-Fund’s key investment themes, the sub-Fund’s exposure in electric vehicle supply contributed the most to positive performance. The key contributor was a leading Chinese electric vehicle (EV) brand. The company reported an inline set of third quarter results with sequential uptrend for both revenue and attributable profits. Management further guided a positive earnings outlook for the coming quarter, thanks to the positive feedback from its own newly launched key EV model. Another contributor was a battery manufacturer focused on EV use. The company enjoyed robust demand from domestic and global EV brands and the stock continued to be re-rated for its growth potential.On the detractor side, the key detractor was a manufacturer for instant noodles and premium food. The stock retreat on concerns of margin pressure from rising palm oil prices and keen competition from domestic premium brands. We had switched out from the stock for better opportunities in the consumer staples sector. Another detractor was a medical services provider focused on assisted fertility treatments. The company’s overseas centre was adversely affected by the lockdown where patient traffic was down significantly.
* The performance return is calculated in class base currency and includes dividend re-invested. There is no representative benchmark for this sub-fund.
Manulife Advanced Fund SPC
16
Investment Manager's Report (continued) for the year ended 30 June 2021
MAF Greater Bay Area Growth and Income Segregated Portfolio (the “Greater Bay Area Growth and Income Fund”) (continued)
Portfolio Review (continued)
On the fixed income side, security selection and asset allocation were positive contributors to returns over the period. The portfolio’s overweight to corporate bonds helped performance due to positive returns from credit spreads declining over the period and from positive carry. Holdings that outperformed included a Chinese investment grade-rated property developer and a long-dated bond for a leading Hong Kong conglomerate.
Market Review
Chinese equities moved higher for the past year amid high market volatility. In the second half of 2020, Chinese equities got a boost on the back of the healthy economic rebound and positive corporate earnings. Turning to 2021, Chinese equities moved marginally lower for the first quarter on the back of positive economic indicators. In the second quarter, Chinese equities rose on strong first-quarter earnings. Chinese equities rebounded further from mid-May and the effect of style rotation from growth to value seemed to diminish. Towards quarter-end, growth-related China A-shares represented by ChiNext and STAR 50 indices regained momentum while offshore Chinese equities showed diverged performance across sectors. Hong Kong equities also moved higher during the year thanks to an improving economic outlook. Retail sales growth returned to positive territory towards period-end and the unemployment rate continued to decrease.
On the policy front, economic activity in the Greater Bay Area (GBA) region remain robust. The Chinese government released the initial details of the 14th Five-Year Plan (2021-2025), which focused on boosting domestic consumption and accelerating technological development in key industries. The key directives for the GBA following President Xi’s visit to Shenzhen in October 2020 was also released, with continued emphasis on cultivating innovation and enhancing interconnectivity in the region. In Hong Kong, the Annual Policy Address released in April 2021 emphasised deepening integration of the GBA and infrastructure spending to enhance the GBA’s connectivity including acquiring an additional stake in Zhuhai Airport, which was confirmed in the budget. Implementation details of the GBA’s pilot wealth connect programmes were released in May where qualified GBA residents will be allowed to buy eligible wealth management products on the other side. The policy tailwind fostering the GBA’s development continues to contrast with the tighter regulations on the national level in selective sectors such as the internet, e-commerce and education.
The JP Morgan China Investment Grade Total Return index increased by 1.19% in US dollar terms over the period. China’s investment grade corporate bonds posted positive returns over the year as credit spreads narrowed and offset the rise to US interest rates over the period. China’s credit spreads narrowed over the period to 3.48% from 3.89% based on the JP Morgan China blended spread index. As the global economic outlook improved since the fourth quarter of 2020, the US Treasury yield increased from 0.66% to 1.47% over the period. Chinese investment grade corporate bonds generally benefited from the improving economic outlook and improved global investor sentiment heading into the end of the first quarter. Since the end of March, investor sentiment around Chinese credit has deteriorated due to idiosyncratic issues on individual companies which impacted individual credits in China’s state-owned enterprise and property sectors. While Chinese investment grade credit remained relatively resilient, Chinese high-yield bonds faced greater pressure towards the end of the period amid market concerns over policy tightening measures directed at the property sector.
Manulife Advanced Fund SPC
17
Investment Manager's Report (continued) for the year ended 30 June 2021
MAF Greater Bay Area Growth and Income Segregated Portfolio (the “Greater Bay Area Growth and Income Fund”) (continued)
Outlook
Looking ahead, we believe the regional focus of the sub-Fund continues to provide differentiated exposure to investors, thanks to our niche investment universe that focuses on regional champions with their own growth dynamics which are not overshadowed by nationwide giants.
On the equity side, the sub-Fund’s four key investment themes remain intact. Sector-wise, we are looking to increase allocation to financials sectors which are the key beneficiaries of the upcoming GBA Wealth Connect Programme. We are also keen to add exposure in quality industrial companies that fit into the infrastructure and innovation investment themes of the sub-Fund. For the internet sector, we remain cautious of the regulatory headwinds on antitrust and cybersecurity issues and will have limited exposure on mega internet and e-commerce companies and await further clarity on the issues.
On the fixed income side, we continue to be invested across a diversified range of sectors to buffer against potential geopolitical risks even though Covid-19 risk appears to be gradually declining. In terms of sector tilt, we maintained exposure to the property sector which continues to provide better risk-reward opportunities in the GBA-related universe. We have also sought opportunities to selectively invest into rare, high-yield non-property sector names with strong fundamentals. We have maintained portfolio duration to around four years given the potential for interest rates to move higher. In view of the current spread levels which are getting closer to historical tights, we are more conservative in our exposure especially on high grade but continue to actively seek opportunities in GBA-related names with quality and attractive relative value.
The sub-Fund's strategy will continue our current stances of (1) keeping adequate portfolio diversification aiming at 70/30 split between equity/fixed income to capture both capital appreciation and stable dividend/interest income, (2) targeting specific stock opportunities within the key GBA investment themes within equities. The objective is to provide investors with a steady total return at low volatility, especially during times of market swings.
Manulife Advanced Fund SPC
18
Report of the Custodian
In our opinion, the Investment Manager, Manulife Investment Management (Hong Kong) Limited, has, in all material respects, managed the Manulife Advanced Fund SPC for the year ended 30 June 2021 in accordance with the provisions of the constitutive documents and the Memorandum and Articles of Association dated 14 July 2008, as amended.
For and on behalf of Citibank Europe plc, Luxembourg Branch
Date: 21 October 2021
Muriel ICARDVice President
Date: 21 October 2021
Pascal KOHLDirector
A member firm of Ernst & Young Global Limited
19
Independent Auditors’ Report
The Board of Directors Manulife Advanced Fund SPC Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Manulife Advanced Fund SPC and each of its segregated portfolios, comprising China A Segregated Portfolio, Renminbi Bond Segregated Portfolio, Asia Pacific Income and Growth Segregated Portfolio, U.S. Bank Equity Segregated Portfolio and Greater Bay Area Growth and Income Segregated Portfolio (collectively, the “Company”) which comprise the statement of financial position as at 30 June 2021, and the statement of comprehensive income, statement of changes in net assets attributable to holders of redeemable participating shares, statement of changes in equity, statement of distribution and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Manulife Advanced Fund SPC and each of its segregated portfolios, comprising China A Segregated Portfolio, Renminbi Bond Segregated Portfolio, Asia Pacific Income and Growth Segregated Portfolio, U.S. Bank Equity Segregated Portfolio and Greater Bay Area Growth and Income Segregated Portfolio as at 30 June 2021 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.
Report on Other Legal and Regulatory Disclosure Requirements
We report that the financial statements have been properly prepared in accordance with the relevant disclosure provisions of the Memorandum and Articles of Association of the Company and the disclosure requirements of Appendix E of the Code.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code) and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Ernst & Young Ltd. 62 Forum Lane Camana Bay P.O. Box 510 Grand Cayman KY1-1106 CAYMAN ISLANDS
Tel: +1 345 949 8444 Fax: +1 345 949 8529 ey.com
19
A member firm of Ernst & Young Global Limited
20
Other Information
Other information consists of the Company Information, Director’s Report, Investment Manager’s Report, Report of the Custodian, Portfolio of Investments, Statement of Movements in Investment Portfolios, Performance Table and Information on Exposure arising from Financial Derivative Instruments. Management is responsible for the other information.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and the Board of Directors for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, the relevant disclosure provisions of the Memorandum and Articles of Association of the Company and the relevant disclosure requirements set out in Appendix E to the Hong Kong Code on Unit Trusts and Mutual Funds of the Securities and Futures Commission of Hong Kong (the “Code”), and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Company’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our report is made solely to you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
20
A member firm of Ernst & Young Global Limited
21
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Manulife Advanced Fund SPC and each of its segregated portfolios, comprising China A Segregated Portfolio, Renminbi Bond Segregated Portfolio, Asia Pacific Income and Growth Segregated Portfolio, U.S. Bank Equity Segregated Portfolio and Greater Bay Area Growth and Income Segregated Portfolio ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
21 October 2021
21
Man
ulife
Adv
ance
d Fu
nd S
PC
22
Stat
emen
t of F
inan
cial
Pos
ition
As
at 3
0 Ju
ne 2
021
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
Notes
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Asse
tsFin
ancia
l asset
s at co
st34
,615,8
5834
,424,3
8439
,624,4
1330
,617,5
1515
,561,7
5314
,880,5
0625
,197,2
4226
,760,7
0329
,980,1
4510
,518,0
6214
4,979
,411
117,2
01,17
0Un
realise
d app
reciati
on/(d
eprec
iation
)10
,339,2
606,0
38,11
0 3,
142,0
79
(774
,117)
2,539
,669
381,8
90 3,
639,8
20
(8,44
9,868
)29
5,968
733,6
86 19
,956,7
96
(2,07
0,299
)Fin
ancia
l asset
s at fa
ir valu
e thro
ugh p
rofit o
r loss
3, 4
44,95
5,118
40,46
2,494
42,76
6,492
29,84
3,398
18,10
1,422
15,26
2,396
28,83
7,062
18,31
0,835
30,27
6,113
11,25
1,748
164,9
36,20
711
5,130
,871
Cash
and c
ash eq
uivale
nt5
184,4
2017
1,854
228,3
0513
3,007
66,31
465
3,268
652,5
8744
7,270
1,378
,491
345,8
192,5
10,11
71,7
51,21
8Re
ceivab
le on s
ubscr
iption
s18
3,070
14,08
0–
–24
,260
6,131
542,8
9362
7,142
51,21
8 37
,140
801,4
4168
4,493
Recei
vable o
n Man
agem
ent S
hare
Capita
l8
––
––
––
––
––
100
100
Other
receiv
ables
and p
repaym
ents
66,8
8395
759
4,769
398,7
9425
5,352
185,2
5049
,000
32,45
126
7,907
139,4
591,1
73,91
175
6,911
Due f
rom br
okers
2.2 (I)
––
161,6
20
– 40
6,415
4,
249
– 18
,555
210,2
9950
,240
778,3
3473
,044
Total
asse
ts45
,329,4
9140
,649,3
8543
,751,1
8630
,375,1
9918
,853,7
6316
,111,2
9430
,081,5
4219
,436,2
5332
,184,0
2811
,824,4
0617
0,200
,110
118,3
96,63
7Lia
bilitie
sFin
ancia
l liabili
ties at
fair v
alue t
hroug
h profi
t or lo
ss3,
4–
– 1,
071,9
77
–28
,908
6,55
0 –
–38
,231
1,314
1,139
,116
7,864
Accou
nts pa
yable a
nd ac
crued
expe
nses
719
1,873
170,2
6774
8,228
687,4
3311
7,959
47,32
577
,279
58,90
262
,250
70,42
91,1
97,58
91,0
34,35
6Pa
yable o
n red
emptio
ns1,0
31,50
532
4,717
58,49
421
3,924
178,3
0651
,269
928,0
9017
5,639
574,5
21
34,59
8 2,7
70,91
680
0,147
Due t
o brok
ers2.2
(I)–
––
– 20
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–
13,43
5 –
200,0
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413,4
3595
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Total
liabil
ities (
exclu
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et as
sets
attrib
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to
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Rede
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)1,2
23,37
849
4,984
1,878
,699
901,3
5752
5,173
105,1
441,0
18,80
423
4,541
875,0
0220
1,431
5,521
,056
1,937
,457
Equit
yMa
nage
ment
Share
Capita
l8
––
––
––
––
––
100
100
Total
equit
y–
––
––
––
––
–10
010
0To
tal lia
bilite
s and
equit
y1,2
23,37
849
4,984
1,878
,699
901,3
5752
5,173
105,1
441,0
18,80
423
4,541
875,0
0220
1,431
5,521
,156
1,937
,557
Net a
ssets
attrib
utable
to ho
lders
of Re
deem
able
Partic
ipatin
g Sha
res15
44,10
6,113
40,15
4,401
41,87
2,487
29,47
3,842
18,32
8,590
16,00
6,150
29,06
2,738
19,20
1,712
31,30
9,026
11,62
2,975
164,6
78,95
411
6,459
,080
The
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g no
tes
form
an
inte
gral
par
t of t
hese
fina
ncia
l sta
tem
ents
.
Man
ulife
Adv
ance
d Fu
nd S
PC
23
Stat
emen
t of F
inan
cial
Pos
ition
(con
tinue
d)
Num
ber o
f sha
res
in is
sue
China
A Fu
ndBo
nd Fu
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ia Pa
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ncom
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Gr
owth
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U.S. B
ank E
quity
Fund
Grea
ter Ba
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Grow
th an
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ome F
und
Mana
geme
nt Sh
are30
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
20
Mana
geme
nt Sh
are–
– –
– –
– –
– –
– 10
010
0Cl
ass A
A (US
D)2,7
16,66
43,2
99,66
832
6,104
853,3
02–
– –
– 52
3,010
52
2,816
–
– Cl
ass A
A (US
D) In
c–
– –
– 94
1,443
934,4
931,9
71,93
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63,45
6 1,
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53
262,3
11
– –
Clas
s I (U
SD)
– 4,0
5928
4,348
285,8
40–
– –
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– –
– Cl
ass I
3 (US
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– 2,
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9,663
–
– –
– –
– –
– Cl
ass A
A (AU
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– –
– –
203,7
4219
8,566
– –
437,8
16
66,52
5 –
– Cl
ass A
A (HK
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– –
– –
– –
– 1,
983
– –
– Cl
ass A
A (HK
D) In
c–
– –
– 46
6,906
477,5
8626
1,630
331,9
48 47
3,935
26
3,204
–
– Cl
ass A
A (CA
D) In
c Hed
ged
– –
– –
280,5
8825
9,344
– –
– –
– –
Net
ass
et v
alue
per
Sha
re
China
A Fu
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2021
30 Ju
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2030
June
2021
30 Ju
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2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
20
Mana
geme
nt Sh
areUS
D–
– –
– –
– –
– –
– 1.0
000
1.000
0Cl
ass A
A (US
D)US
D16
.2354
12.15
1913
.5894
12.30
72–
– –
– 11
.9492
10.33
64–
– Cl
ass A
A (US
D) In
cUS
D–
– –
– 9.6
274
8.594
712
.5940
7.415
410
.8504
9.690
1–
– Cl
ass I
(USD
)US
D–
14.05
2913
.9688
12.61
92–
– –
– –
– –
– Cl
ass I
3 (US
D)US
D–
– 11
.9326
10
.6727
– –
– –
– –
– –
Clas
s AA (
AUD)
Inc H
edge
dAU
D–
– –
– 9.1
807
8.277
7–
– 10
.3436
9.338
3–
– Cl
ass A
A (HK
D)HK
D–
– –
– –
– –
– 92
.5111
– –
– Cl
ass A
A (HK
D) In
cHK
D–
– –
– 96
.4782
85.94
8612
5.511
173
.7512
107.3
553
95.71
46–
– Cl
ass A
A (CA
D) In
c Hed
ged
CAD
– –
– –
9.089
68.1
686
– –
– –
– –
The
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form
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par
t of t
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fina
ncia
l sta
tem
ents
.
Man
ulife
Adv
ance
d Fu
nd S
PC
24
Stat
emen
t of C
ompr
ehen
sive
Inco
me
For t
he y
ear e
nded
30
June
202
1
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
Notes
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20US
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DInc
ome
Divide
nd inc
ome
958
4,166
533,5
93–
– 43
8,618
44
0,571
75
4,653
87
2,638
34
6,763
24
5,832
2,
124,2
00
2,09
2,634
Inte
rest in
come
1044
22,2
551,4
25,14
21,4
09,46
832
1,316
313,6
60–
– 21
2,365
34
5,017
1,
959,2
65
2,07
0,400
Oth
er inco
me10
54,86
736
,059
20,49
5 44
,971
74
– 21
–
231
– 75
,688
81,03
0 Ne
t gains
/ (loss
es) on
financ
ial ass
ets an
d liab
ilities a
t fair v
alue th
rough
profit o
r loss
312
,875,1
59 10
,068,8
53
2,86
0,948
(7
12,75
0) 2,
326,6
35
(1,00
6,853
) 12
,684,6
42
(5,35
2,646
) 1,
878,7
65
1,06
4,198
32
,626,1
49
4,06
0,802
Ne
t foreig
n exch
ange g
ains /
(losses
)2.2
(F)
9,22
7 (3
8,702
) (1
8,353
) (2
8,490
) 29
5,077
(1
17,23
4) (2
,143)
(12,3
45)
(61,8
90)
(123
,364)
221,9
18
(320
,135)
Total o
peratin
g incom
e 13
,523,8
61
10,60
2,058
4,
288,2
32
713,1
99
3,38
1,720
(3
69,85
6) 13
,437,1
73
(4,49
2,353
) 2,
376,2
34
1,53
1,683
37
,007,2
20
7,98
4,731
Expens
esMa
nagem
ent fee
s12.
1, 16
(732
,355)
(700
,226)
(104
,534)
(211
,686)
(266
,825)
(248
,257)
(394
,780)
(437
,468)
(253
,706)
(232
,359)
(1,75
2,200
) (1
,829,9
96)
Regis
trar an
d trans
fer age
nt fees
12.2
(40,2
84)
(61,0
04)
(20,3
01)
(36,2
28)
(22,0
89)
(32,3
35)
(27,7
25)
(48,4
58)
(19,4
86)
(24,3
34)
(129
,885)
(202
,359)
Custo
dian a
nd pay
ing ag
ent fee
s12.
2 (3
0,757
) (4
2,960
) (1
8,845
) (1
8,049
) (8
,544)
(7,95
0) (2
2,757
) (1
8,878
) (1
6,641
) (1
8,820
) (9
7,544
) (1
06,65
7)Ad
ministr
ation fe
e12.
2 (3
0,072
) (3
1,431
) (2
8,867
) (3
2,030
) (2
1,490
) (2
9,964
) (2
1,485
) (3
0,528
) (1
8,544
) (2
8,038
) (1
20,45
8) (1
51,99
1)Bro
kerage
fees
2.2 (J
) (3
16,33
6) (5
72,30
4) (3
,674)
(1,61
8) (8
,920)
(7,73
2) (5
9,475
) (3
1,136
) (1
95,33
4) (1
20,27
3) (5
83,73
9) (7
33,06
3)Au
ditors'
remune
ration
(33,7
83)
(34,6
48)
(31,5
33)
(32,2
63)
(17,1
12)
(16,3
34)
(18,2
63)
(7,16
4) (1
3,679
) (1
1,907
) (1
14,37
0) (1
02,31
6)Leg
al and
profes
sional
fees
(25,1
61)
(24,6
05)
(36,7
11)
(26,6
17)
(11,9
76)
(13,6
11)
(19,4
66)
(28,3
35)
(11,1
86)
(17,5
47)
(104
,500)
(110
,715)
Public
ation a
nd prin
ting fee
s (6
,615)
(11,1
15)
(6,05
2) (1
0,618
) (2
,661)
(4,57
5) (3
,680)
(9,15
0) (2
,926)
(4,40
2) (2
1,934
) (3
9,860
)Oth
er oper
ating e
xpense
s (2
3) (9
26)
(35)
(3,39
1) (1
,180)
(2,19
7) (6
2) (1
45)
(70)
(7,94
4) (1
,370)
(14,6
03)
The
acco
mpa
nyin
g no
tes
form
an
inte
gral
par
t of t
hese
fina
ncia
l sta
tem
ents
.
Man
ulife
Adv
ance
d Fu
nd S
PC
25
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
Notes
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20US
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DTot
al oper
ating e
xpense
s (1
,215,3
86)
(1,47
9,219
) (2
50,55
2) (3
72,50
0) (3
60,79
7) (3
62,95
5) (5
67,69
3) (6
11,26
2) (5
31,57
2) (4
65,62
4) (2
,926,0
00)
(3,29
1,560
)
Opera
ting pr
ofit / (l
oss) be
fore ta
x and
distrib
ution
12,30
8,475
9,
122,8
39
4,03
7,680
34
0,699
3,
020,9
23
(732
,811)
12,86
9,480
(5
,103,6
15)
1,84
4,662
1,
066,0
59
34,08
1,220
4,
693,1
71
Tax2.3
, 11 (5
8,594
) (5
3,359
) (4
,790)
(70,9
13)
(40,3
11)
(39,2
68)
(225
,856)
(261
,792)
(9,57
5) (8
,072)
(339
,126)
(433
,404)
Distrib
ution to
holde
rs of R
edeem
able
Partic
ipating
Share
s20
– –
– –
(806
,443)
(815
,084)
(124
)–
(324
,501)
(392
,188)
(1,13
1,068
) (1
,207,2
72)
Increa
se / (d
ecreas
e) in n
et asse
ts attrib
utable
to hol
ders o
f Rede
emabl
e Parti
cipatin
g Shar
es fro
m oper
ations–
being
total co
mpreh
ensive
inc
ome /
(loss)
12,24
9,881
9,
069,4
80
4,03
2,890
26
9,786
2,
174,1
69
(1,58
7,163
) 12
,643,5
00
(5,36
5,407
) 1,
510,5
86
665,7
99
32,61
1,026
3,
052,4
95
Stat
emen
t of C
ompr
ehen
sive
Inco
me
(con
tinue
d)
The
acco
mpa
nyin
g no
tes
form
an
inte
gral
par
t of t
hese
fina
ncia
l sta
tem
ents
.
Man
ulife
Adv
ance
d Fu
nd S
PC
26
Stat
emen
t of C
hang
es in
Net
Ass
ets
Attr
ibut
able
to h
olde
rs o
f Red
eem
able
Par
ticip
atin
g Sh
ares
For t
he y
ear e
nded
30
June
202
1
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
Notes
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20US
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DOp
ening
balanc
e 40
,154,4
01
42,23
3,925
29
,473,8
42
50,67
8,052
16
,006,1
50
16,79
2,485
19
,201,7
12
50,01
0,859
11
,622,9
75
21,21
1,884
11
6,459
,080
180,9
27,20
5 Inc
rease
/ (decr
ease)
in net a
ssets a
ttributa
ble to
holder
s of R
edeem
able P
articipa
ting Sh
ares–b
eing to
tal com
prehen
sive inc
ome /
(loss)
12,24
9,881
9,
069,4
80
4,03
2,890
26
9,786
2,
174,1
69
(1,58
7,163
) 12
,643,5
00
(5,36
5,407
) 1,
510,5
86
665,7
99
32,61
1,026
3,
052,4
95
Issue o
f Redee
mable
Partic
ipating
Share
s8
10,26
1,185
87
6,475
18
,190,4
46
23,26
0 6,
155,6
87
4,22
9,322
62
,304,4
01
11,11
3,586
24
,929,2
76
2,15
5,515
12
1,840
,995
18,39
8,158
Red
emptio
n of Re
deema
ble Pa
rticipa
ting Sh
ares
8(18
,559,3
54)
(12,02
5,479
)(9,
824,6
91)
(21,49
7,256
)(6,
007,4
16)
(3,42
8,494
)(65
,086,8
75)
(36,55
7,326
)(6,
753,8
11)
(12,41
0,223
)(10
6,232
,147)
(85,9
18,77
8)
Net as
sets a
ttribut
able to
holde
rs of R
edeem
able
Partici
pating
Share
s at en
d of ye
ar 44
,106,1
13
40,15
4,401
41
,872,4
87
29,47
3,842
18
,328,5
90
16,00
6,150
29
,062,7
38
19,20
1,712
31
,309,0
26
11,62
2,975
16
4,678
,954
116,4
59,08
0
Stat
emen
t of C
hang
es in
Equ
ityFo
r the
yea
r end
ed 3
0 Ju
ne 2
021
Comb
ined
Notes
For t
he ye
aren
ded 3
0 Jun
e 20
21
For t
he ye
aren
ded 3
0 Jun
e 20
20
USD
USD
Open
ing ba
lance
8 10
0 10
0 Iss
ue of
Man
agem
ent S
hares
– –
Clos
ing ba
lance
at en
d of y
ear
100
100
The
acco
mpa
nyin
g no
tes
form
an
inte
gral
par
t of t
hese
fina
ncia
l sta
tem
ents
.
Man
ulife
Adv
ance
d Fu
nd S
PC
27
Stat
emen
t of C
ash
Flow
s
For t
he y
ear e
nded
30
June
202
1
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
Notes
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20US
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DCa
sh flow
s from
opera
ting ac
tivities
Increa
se / (d
ecreas
e) in n
et asse
ts attrib
utable
to hol
ders o
f Rede
emabl
e Parti
cipatin
g Shar
es–dis
tributio
n excl
uded
12,24
9,881
9,
069,4
80
4,03
2,890
26
9,786
2,
980,6
12
(772
,079)
12,64
3,624
(5
,365,4
07)
1,83
5,087
1,
057,9
87
33,74
2,094
4,
259,7
67
Net ch
anges
in oper
ating a
ssets a
nd liab
ilities
Decre
ase / (i
ncreas
e) in fi
nancia
l asset
s and
liabilitie
s at fa
ir valu
e throu
gh pro
fit or lo
ss (4
,492,6
24)
1,68
4,588
(1
1,851
,117)
21,02
6,445
(2
,816,6
68)
840,9
67
(10,52
6,227
) 31
,921,1
20
(18,98
7,448
) 9,
546,2
98
(48,67
4,084
) 65
,019,4
18
Decre
ase / (i
ncreas
e) in o
ther re
ceivab
les an
d pre
payme
nts (5
,926)
(759
) (3
57,59
5) 39
6,389
(4
72,26
8) (1
6,931
) 2,
006
16,01
3 (2
88,50
7) 95
,838
(1,12
2,290
) 49
0,550
Inc
rease
/ (decr
ease) i
n acco
unts p
ayable
and
accrue
d expe
nses
21,60
6 22
,526
60,79
5 58
,618
270,6
34
6,35
2 31
,812
(47,7
33)
96,73
1 33
,534
481,5
78
73,29
7 Ne
t cash
provid
ed by
/ (used
in) op
erating
act
ivities
7,77
2,937
10
,775,8
35
(8,11
5,027
) 21
,751,2
38
(37,6
90)
58,30
9 2,
151,2
15
26,52
3,993
(17
,344,1
37)
10,73
3,657
(15
,572,7
02)
69,84
3,032
Cash
flows fr
om fin
ancing
activi
tiesIss
ue of R
edeem
able P
articip
ating S
hares
10,09
2,195
86
6,103
18
,190,4
46
23,26
0 6,1
37,55
8 4,
255,4
44
62,38
8,650
10
,493,4
33
24,91
5,198
2,
118,3
75
121,7
24,04
7 17
,756,6
15
Redem
ption o
f Rede
emabl
e Parti
cipatin
g Shar
es (1
7,852
,566)
(11,7
66,79
0) (9
,980,1
21)
(21,9
04,31
2) (5
,880,3
79)
(3,37
7,592
) (6
4,334
,424)
(36,7
14,68
2) (6
,213,8
88)
(12,3
75,62
5) (1
04,26
1,378
) (8
6,139
,001)
Distrib
utions
paid to
holde
rs of R
edeem
able
Partic
ipating
Share
s–
– –
– (8
06,44
3) (8
15,08
4) (1
24)
– (3
24,50
1) (3
92,18
8) (1
,131,0
68)
(1,20
7,272
)Ne
t cash
flow pr
ovided
by / (u
sed in)
financ
ing
activit
ies (7
,760,3
71)
(10,9
00,68
7) 8,
210,3
25
(21,88
1,052
) (5
49,26
4) 62
,768
(1,94
5,898
) (2
6,221
,249)
18,37
6,809
(10
,649,4
38)
16,33
1,601
(69
,589,6
58)
The
acco
mpa
nyin
g no
tes
form
an
inte
gral
par
t of t
hese
fina
ncia
l sta
tem
ents
.
Man
ulife
Adv
ance
d Fu
nd S
PC
28
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
Notes
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20US
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DNe
t incre
ase / (d
ecreas
e) in c
ash an
d cash
equ
ivalen
ts 12
,566
(124
,852)
95,29
8 (1
29,81
4) (5
86,95
4) 12
1,077
20
5,317
30
2,744
1,
032,6
72
84,21
9 75
8,899
25
3,374
Cash
and ca
sh equ
ivalen
t at be
ginnin
g of th
e yea
r 17
1,854
29
6,706
13
3,007
26
2,821
65
3,268
53
2,191
44
7,270
14
4,526
34
5,819
26
1,600
1,
751,2
18
1,49
7,844
Cash
and ca
sh equ
ivalen
t at en
d of th
e year
5 18
4,420
17
1,854
22
8,305
13
3,007
66
,314
653,2
68
652,5
87
447,2
70
1,37
8,491
34
5,819
2,
510,1
17
1,75
1,218
Stat
emen
t of C
ash
Flow
s (c
ontin
ued)
The
acco
mpa
nyin
g no
tes
form
an
inte
gral
par
t of t
hese
fina
ncia
l sta
tem
ents
.
Man
ulife
Adv
ance
d Fu
nd S
PC
29
Net
cas
h us
ed in
ope
ratin
g ac
tivite
s in
clud
es:
Stat
emen
t of C
ash
Flow
s (c
ontin
ued)
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
Notes
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20US
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DDi
viden
d inc
ome
579,5
4853
3,593
– –
410,7
60
460,2
40
744,0
07
907,6
49
235,3
15
285,5
61
1,969
,630
2,187
,043
Intere
st inc
ome
442
2,255
1,228
,721
1,804
,615
345,8
51
285,0
65
– –
162,8
17
399,7
85
1,737
,831
2,491
,720
Intere
st ex
pens
e (2
4) (9
25)
(34)
(652
) (1
,181)
(2,19
6) (6
1) (1
47)
(70)
(7,94
6) (1
,370)
(11,8
66)
With
holdi
ng ta
x on i
ncom
e (5
8,594
) (5
3,359
)–
– (4
0,311
) (3
9,268
) (2
25,85
6) (2
61,79
2) (9
,575)
(8,07
2) (3
34,33
6) (3
62,49
1)
Rec
onci
liatio
n of
mov
emen
ts o
f lia
bilit
ies
aris
ing
from
fina
ncin
g ac
tiviti
es:
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r
ende
d 30 J
une
2021
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20US
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
D
Payabl
e on r
edemp
tions a
t begin
ning o
f the y
ear32
4,717
66,02
821
3,924
620,9
8051
,269
367
175,6
39 33
2,995
34
,598
– 80
0,147
1,020
,370
Increa
se du
e to r
edem
ption
of R
edee
mable
Pa
rticipa
ting S
hares
18,55
9,354
12,02
5,479
9,824
,691
21,49
7,256
6,007
,416
3,428
,494
65,08
6,875
36,55
7,326
6,7
53,81
1 12
,410,2
23
106,2
32,14
785
,918,7
78De
creas
e due
to pa
ymen
ts on
rede
mptio
ns of
Re
deem
able
Partic
ipatin
g Sha
res (1
7,852
,566)
(11,7
66,79
0) (9
,980,1
21)
(21,9
04,31
2) (5
,880,3
79)
(3,37
7,592
) (6
4,334
,424)
(36,7
14,68
2) (6
,213,8
88)
(12,3
75,62
5) (1
04,26
1,378
) (8
6,139
,001)
Payabl
e on r
edemp
tions a
t end o
f the y
ear1,0
31,50
532
4,717
58,49
421
3,924
178,3
0651
,269
928,0
9017
5,639
574,5
21
34,59
8 2,7
70,91
680
0,147
The
acco
mpa
nyin
g no
tes
form
an
inte
gral
par
t of t
hese
fina
ncia
l sta
tem
ents
.
Manulife Advanced Fund SPC
30
Statement of Distribution
For the year ended 30 June 2021
CurrencyDistribution Per Share
Total Distribution
Distribution Date
Asia Pacific Income and Growth FundMonthly DividendClass AA (USD) Inc USD 0.0370 34,576.24 9-Jul-20
Class AA (USD) Inc USD 0.0370 34,809.52 10-Aug-20
Class AA (USD) Inc USD 0.0370 32,959.19 8-Sep-20
Class AA (USD) Inc USD 0.0350 31,214.87 12-Oct-20
Class AA (USD) Inc USD 0.0350 32,096.66 9-Nov-20
Class AA (USD) Inc USD 0.0350 32,132.43 8-Dec-20
Class AA (USD) Inc USD 0.0350 32,360.14 11-Jan-21
Class AA (USD) Inc USD 0.0350 33,634.13 8-Feb-21
Class AA (USD) Inc USD 0.0350 33,642.20 8-Mar-21
Class AA (USD) Inc USD 0.0350 36,095.51 13-Apr-21
Class AA (USD) Inc USD 0.0350 34,367.28 10-May-21
Class AA (USD) Inc USD 0.0350 33,063.22 8-Jun-21
400,951.39
Class AA (AUD) Inc Hedged AUD 0.0360 7,148.39 9-Jul-20
Class AA (AUD) Inc Hedged AUD 0.0360 7,173.20 10-Aug-20
Class AA (AUD) Inc Hedged AUD 0.0360 7,212.91 8-Sep-20
Class AA (AUD) Inc Hedged AUD 0.0337 6,765.46 12-Oct-20
Class AA (AUD) Inc Hedged AUD 0.0337 6,786.73 9-Nov-20
Class AA (AUD) Inc Hedged AUD 0.0337 6,793.79 8-Dec-20
Class AA (AUD) Inc Hedged AUD 0.0337 6,814.25 11-Jan-21
Class AA (AUD) Inc Hedged AUD 0.0337 6,771.83 8-Feb-21
Class AA (AUD) Inc Hedged AUD 0.0337 6,791.75 8-Mar-21
Class AA (AUD) Inc Hedged AUD 0.0337 6,823.98 13-Apr-21
Class AA (AUD) Inc Hedged AUD 0.0337 6,848.76 10-May-21
Class AA (AUD) Inc Hedged AUD 0.0337 6,873.48 8-Jun-21
82,804.53
Class AA (HKD) Inc HKD 0.3700 176,706.79 9-Jul-20
Class AA (HKD) Inc HKD 0.3700 176,878.06 10-Aug-20
Class AA (HKD) Inc HKD 0.3700 171,074.35 8-Sep-20
Class AA (HKD) Inc HKD 0.3501 162,491.21 12-Oct-20
The accompanying notes form an integral part of these financial statements.
Manulife Advanced Fund SPC
31
Statement of Distribution (continued)
For the year ended 30 June 2021
CurrencyDistribution Per Share
Total Distribution
Distribution Date
Asia Pacific Income and Growth Fund (continued)Monthly Dividend (continued)Class AA (HKD) Inc HKD 0.3501 161,826.97 9-Nov-20
Class AA (HKD) Inc HKD 0.3501 162,833.89 8-Dec-20
Class AA (HKD) Inc HKD 0.3501 162,928.69 11-Jan-21
Class AA (HKD) Inc HKD 0.3501 165,127.99 8-Feb-21
Class AA (HKD) Inc HKD 0.3501 165,826.00 8-Mar-21
Class AA (HKD) Inc HKD 0.3501 165,510.03 13-Apr-21
Class AA (HKD) Inc HKD 0.3501 165,914.60 10-May-21
Class AA (HKD) Inc HKD 0.3501 163,909.27 8-Jun-21
2,001,027.85
Class AA (CAD) Inc Hedged CAD 0.0360 9,336.39 9-Jul-20
Class AA (CAD) Inc Hedged CAD 0.0360 9,376.46 10-Aug-20
Class AA (CAD) Inc Hedged CAD 0.0360 9,416.33 8-Sep-20
Class AA (CAD) Inc Hedged CAD 0.0332 8,729.10 12-Oct-20
Class AA (CAD) Inc Hedged CAD 0.0332 9,154.54 9-Nov-20
Class AA (CAD) Inc Hedged CAD 0.0332 9,189.58 8-Dec-20
Class AA (CAD) Inc Hedged CAD 0.0332 9,190.34 11-Jan-21
Class AA (CAD) Inc Hedged CAD 0.0332 9,223.64 8-Feb-21
Class AA (CAD) Inc Hedged CAD 0.0332 9,223.34 8-Mar-21
Class AA (CAD) Inc Hedged CAD 0.0332 9,256.71 13-Apr-21
Class AA (CAD) Inc Hedged CAD 0.0332 9,290.28 10-May-21
Class AA (CAD) Inc Hedged CAD 0.0332 9,323.73 8-Jun-21
110,710.44
The accompanying notes form an integral part of these financial statements.
Manulife Advanced Fund SPC
32
Statement of Distribution (continued)
For the year ended 30 June 2021
CurrencyDistribution Per Share
Total Distribution
Distribution Date
U.S. Bank Equity FundSemi-Annual DividendClass AA (USD) Inc USD 0.000058 124.33 11-Jan-21
124.33
Greater Bay Area Growth and Income FundMonthly Dividend Class AA (USD) Inc USD 0.0280 7,344.71 9-Jul-20
Class AA (USD) Inc USD 0.0280 7,448.05 10-Aug-20
Class AA (USD) Inc USD 0.0280 6,401.46 8-Sep-20
Class AA (USD) Inc USD 0.0280 6,984.47 12-Oct-20
Class AA (USD) Inc USD 0.0280 8,447.29 9-Nov-20
Class AA (USD) Inc USD 0.0280 8,738.06 8-Dec-20
Class AA (USD) Inc USD 0.0280 8,863.81 11-Jan-21
Class AA (USD) Inc USD 0.0280 8,578.08 8-Feb-21
Class AA (USD) Inc USD 0.0280 14,110.88 8-Mar-21
Class AA (USD) Inc USD 0.0280 14,821.13 13-Apr-21
Class AA (USD) Inc USD 0.0280 22,312.23 10-May-21
Class AA (USD) Inc USD 0.0280 32,353.24 8-Jun-21
146,403.41
Class AA (AUD) Inc Hedged AUD 0.0280 1,862.70 9-Jul-20
Class AA (AUD) Inc Hedged AUD 0.0280 2,010.88 10-Aug-20
Class AA (AUD) Inc Hedged AUD 0.0280 2,799.58 8-Sep-20
Class AA (AUD) Inc Hedged AUD 0.0280 3,167.88 12-Oct-20
Class AA (AUD) Inc Hedged AUD 0.0280 3,908.42 9-Nov-20
Class AA (AUD) Inc Hedged AUD 0.0280 3,754.80 8-Dec-20
Class AA (AUD) Inc Hedged AUD 0.0280 3,485.45 11-Jan-21
Class AA (AUD) Inc Hedged AUD 0.0280 3,056.28 8-Feb-21
Class AA (AUD) Inc Hedged AUD 0.0280 4,503.58 8-Mar-21
Class AA (AUD) Inc Hedged AUD 0.0280 4,516.49 13-Apr-21
Class AA (AUD) Inc Hedged AUD 0.0280 5,313.79 10-May-21
Class AA (AUD) Inc Hedged AUD 0.0280 12,674.64 8-Jun-21
51,054.49The accompanying notes form an integral part of these financial statements.
Manulife Advanced Fund SPC
33
Statement of Distribution (continued)
For the year ended 30 June 2021
CurrencyDistribution Per Share
Total Distribution
Distribution Date
Greater Bay Area Growth and Income Fund (continued)Monthly Dividend (continued)Class AA (HKD) Inc HKD 0.2800 73,697.15 9-Jul-20
Class AA (HKD) Inc HKD 0.2800 64,814.69 10-Aug-20
Class AA (HKD) Inc HKD 0.2800 66,214.18 8-Sep-20
Class AA (HKD) Inc HKD 0.2800 66,948.40 12-Oct-20
Class AA (HKD) Inc HKD 0.2800 75,778.06 9-Nov-20
Class AA (HKD) Inc HKD 0.2800 78,684.71 8-Dec-20
Class AA (HKD) Inc HKD 0.2800 78,550.60 11-Jan-21
Class AA (HKD) Inc HKD 0.2800 100,714.45 8-Feb-21
Class AA (HKD) Inc HKD 0.2800 103,748.09 8-Mar-21
Class AA (HKD) Inc HKD 0.2800 114,835.35 13-Apr-21
Class AA (HKD) Inc HKD 0.2800 128,338.46 10-May-21
Class AA (HKD) Inc HKD 0.2800 130,708.84 8-Jun-21
1,083,032.98
The accompanying notes form an integral part of these financial statements.
Manulife Advanced Fund SPC
34
The accompanying notes form an integral part of these financial statements.
Statement of Distribution (continued)
For the year ended 30 June 2020
CurrencyDistribution Per Share
Total Distribution
Distribution Date
Asia Pacific Income and Growth FundMonthly DividendClass AA (USD) Inc USD 0.0370 31,099.72 10-Jul-19
Class AA (USD) Inc USD 0.0370 31,262.95 8-Aug-19
Class AA (USD) Inc USD 0.0370 31,357.46 9-Sep-19
Class AA (USD) Inc USD 0.0370 33,499.94 10-Oct-19
Class AA (USD) Inc USD 0.0370 32,358.95 8-Nov-19
Class AA (USD) Inc USD 0.0370 32,351.75 9-Dec-19
Class AA (USD) Inc USD 0.0370 33,722.92 9-Jan-20
Class AA (USD) Inc USD 0.0370 34,639.86 10-Feb-20
Class AA (USD) Inc USD 0.0370 34,293.22 9-Mar-20
Class AA (USD) Inc USD 0.0370 32,270.87 8-Apr-20
Class AA (USD) Inc USD 0.0370 31,857.43 11-May-20
Class AA (USD) Inc USD 0.0370 33,057.54 8-Jun-20
391,772.61
Class AA (AUD) Inc Hedged AUD 0.0360 6,923.45 10-Jul-19
Class AA (AUD) Inc Hedged AUD 0.0360 6,950.73 8-Aug-19
Class AA (AUD) Inc Hedged AUD 0.0360 6,856.52 9-Sep-19
Class AA (AUD) Inc Hedged AUD 0.0360 6,884.08 10-Oct-19
Class AA (AUD) Inc Hedged AUD 0.0360 6,912.00 8-Nov-19
Class AA (AUD) Inc Hedged AUD 0.0360 6,939.28 9-Dec-19
Class AA (AUD) Inc Hedged AUD 0.0360 6,966.99 9-Jan-20
Class AA (AUD) Inc Hedged AUD 0.0360 6,993.98 10-Feb-20
Class AA (AUD) Inc Hedged AUD 0.0360 7,060.03 9-Mar-20
Class AA (AUD) Inc Hedged AUD 0.0360 7,090.08 8-Apr-20
Class AA (AUD) Inc Hedged AUD 0.0360 7,123.91 11-May-20
Class AA (AUD) Inc Hedged AUD 0.0360 7,156.44 8-Jun-20
83,857.49
Class AA (HKD) Inc HKD 0.3700 184,186.62 10-Jul-19
Class AA (HKD) Inc HKD 0.3700 184,177.07 8-Aug-19
Class AA (HKD) Inc HKD 0.3700 184,823.44 9-Sep-19
Class AA (HKD) Inc HKD 0.3700 185,461.62 10-Oct-19
Manulife Advanced Fund SPC
35
The accompanying notes form an integral part of these financial statements.
CurrencyDistribution Per Share
Total Distribution
Distribution Date
Asia Pacific Income and Growth Fund (continued)Monthly Dividend (continued)Class AA (HKD) Inc HKD 0.3700 186,333.72 8-Nov-19
Class AA (HKD) Inc HKD 0.3700 184,338.68 9-Dec-19
Class AA (HKD) Inc HKD 0.3700 184,980.34 9-Jan-20
Class AA (HKD) Inc HKD 0.3700 185,409.37 10-Feb-20
Class AA (HKD) Inc HKD 0.3700 185,720.48 9-Mar-20
Class AA (HKD) Inc HKD 0.3700 186,373.80 8-Apr-20
Class AA (HKD) Inc HKD 0.3700 187,333.51 11-May-20
Class AA (HKD) Inc HKD 0.3700 187,989.44 8-Jun-20
2,227,128.09
Class AA (CAD) Inc Hedged CAD 0.0360 8,911.07 10-Jul-19
Class AA (CAD) Inc Hedged CAD 0.0360 8,946.95 8-Aug-19
Class AA (CAD) Inc Hedged CAD 0.0360 8,984.27 9-Sep-19
Class AA (CAD) Inc Hedged CAD 0.0360 9,021.13 10-Oct-19
Class AA (CAD) Inc Hedged CAD 0.0360 9,058.48 8-Nov-19
Class AA (CAD) Inc Hedged CAD 0.0360 9,094.96 9-Dec-19
Class AA (CAD) Inc Hedged CAD 0.0360 9,096.00 9-Jan-20
Class AA (CAD) Inc Hedged CAD 0.0360 9,131.92 10-Feb-20
Class AA (CAD) Inc Hedged CAD 0.0360 9,168.73 9-Mar-20
Class AA (CAD) Inc Hedged CAD 0.0360 9,208.46 8-Apr-20
Class AA (CAD) Inc Hedged CAD 0.0360 9,252.99 11-May-20
Class AA (CAD) Inc Hedged CAD 0.0360 9,295.82 8-Jun-20
109,170.78
Statement of Distribution (continued)
For the year ended 30 June 2020
Manulife Advanced Fund SPC
36
The accompanying notes form an integral part of these financial statements.
CurrencyDistribution Per Share
Total Distribution
Distribution Date
Greater Bay Area Growth and Income FundMonthly Dividend Class AA (USD) Inc USD 0.0280 20,598.67 10-Jul-19
Class AA (USD) Inc USD 0.0280 16,745.55 8-Aug-19
Class AA (USD) Inc USD 0.0280 16,328.62 9-Sep-19
Class AA (USD) Inc USD 0.0280 15,321.95 10-Oct-19
Class AA (USD) Inc USD 0.0280 15,064.26 8-Nov-19
Class AA (USD) Inc USD 0.0280 15,126.66 9-Dec-19
Class AA (USD) Inc USD 0.0280 13,731.95 9-Jan-20
Class AA (USD) Inc USD 0.0280 9,932.65 10-Feb-20
Class AA (USD) Inc USD 0.0280 9,135.49 9-Mar-20
Class AA (USD) Inc USD 0.0280 7,822.75 8-Apr-20
Class AA (USD) Inc USD 0.0280 7,825.92 11-May-20
Class AA (USD) Inc USD 0.0280 7,595.58 8-Jun-20
155,230.05
Class AA (AUD) Inc Hedged AUD 0.0280 11,930.47 10-Jul-19
Class AA (AUD) Inc Hedged AUD 0.0280 11,670.71 8-Aug-19
Class AA (AUD) Inc Hedged AUD 0.0280 10,798.80 9-Sep-19
Class AA (AUD) Inc Hedged AUD 0.0280 7,823.63 10-Oct-19
Class AA (AUD) Inc Hedged AUD 0.0280 4,035.66 8-Nov-19
Class AA (AUD) Inc Hedged AUD 0.0280 3,127.24 9-Dec-19
Class AA (AUD) Inc Hedged AUD 0.0280 3,008.45 9-Jan-20
Class AA (AUD) Inc Hedged AUD 0.0280 1,868.93 10-Feb-20
Class AA (AUD) Inc Hedged AUD 0.0280 1,868.93 9-Mar-20
Class AA (AUD) Inc Hedged AUD 0.0280 1,622.08 8-Apr-20
Class AA (AUD) Inc Hedged AUD 0.0280 1,622.08 11-May-20
Class AA (AUD) Inc Hedged AUD 0.0280 1,622.08 8-Jun-20
60,999.06
Statement of Distribution (continued)
For the year ended 30 June 2020
Manulife Advanced Fund SPC
37
The accompanying notes form an integral part of these financial statements.
CurrencyDistribution Per Share
Total Distribution
Distribution Date
Greater Bay Area Growth and Income Fund (continued)Monthly Dividend (continued)Class AA (HKD) Inc HKD 0.2800 161,525.05 10-Jul-19
Class AA (HKD) Inc HKD 0.2800 169,810.53 8-Aug-19
Class AA (HKD) Inc HKD 0.2800 162,916.05 9-Sep-19
Class AA (HKD) Inc HKD 0.2800 156,535.40 10-Oct-19
Class AA (HKD) Inc HKD 0.2800 158,138.21 8-Nov-19
Class AA (HKD) Inc HKD 0.2800 149,537.02 9-Dec-19
Class AA (HKD) Inc HKD 0.2800 144,588.87 9-Jan-20
Class AA (HKD) Inc HKD 0.2800 92,959.11 10-Feb-20
Class AA (HKD) Inc HKD 0.2800 92,851.28 9-Mar-20
Class AA (HKD) Inc HKD 0.2800 80,603.15 8-Apr-20
Class AA (HKD) Inc HKD 0.2800 80,088.37 11-May-20
Class AA (HKD) Inc HKD 0.2800 75,971.76 8-Jun-20
1,525,524.80
Statement of Distribution (continued)
For the year ended 30 June 2020
Notes to Financial Statements
For the year ended 30 June 2021
38
1. Corporate information
Manulife Advanced Fund SPC (the “Company”) is an exempted segregated portfolio company with limited liability incorporated on 14 July 2008 in the Cayman Islands under the Companies Act (as revised) of the Cayman Islands. The Company is incorporated and established for an unlimited duration. The Company commenced operations on 21 September 2010. The Company’s registered office is at Ugland House (P.O. Box 309), Grand Cayman, Cayman Islands.
The Company is registered under the Mutual Funds Act of the Cayman Islands, governed by the laws of the Cayman Islands and regulated by the Cayman Islands Monetary Authority (“CIMA”). In connection with all Class AA Shares of the Company available for offer to the public in Hong Kong, the Company is authorized by the Securities and Futures Commission of Hong Kong (“SFC”) and is required to comply with the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and the Code on Unit Trusts and Mutual Funds established by the SFC (the “Code”). Authorizations have been given by the Monetary Authority of Macao to the Company to market selected Segregated Portfolios in Macau. Notifications have been made to the Monetary Authority of Singapore for the Company to offer selected Segregated Portfolios as restricted foreign schemes in Singapore.
The investment activities of the Company are managed by Manulife Investment Management (Hong Kong) Limited.
The Company may establish and maintain one or more funds (“Segregated Portfolios”) in order to segregate the assets and liabilities of the Company held within or on behalf of a Segregated Portfolio from the assets and liabilities of the Company held within or on behalf of any other Segregated Portfolio or from the assets and liabilities of the Company which are not held within or on behalf of any Segregated Portfolio (those being the “General Assets” of the Company and “General Liabilities” of the Company, respectively). As a matter of Cayman Islands law, assets within a Segregated Portfolio are only available and can only be used to meet liabilities to the creditors in respect of that particular Segregated Portfolio and are not available to meet liabilities to creditors in respect of other Segregated Portfolios or to the “General Creditors” of the Company. Notwithstanding the foregoing, the Company is a single legal entity and none of the Segregated Portfolios constitutes a legal entity separate from the Company.
As at 30 June 2021, the Company has five active Segregated Portfolios:
– China A Segregated Portfolio (this fund is presented in United States Dollars) (the “China A Fund”)
– Renminbi Bond Segregated Portfolio (this fund is presented in United States Dollars only and not in Renminbi) (the “Bond Fund”)
– Asia Pacific Income and Growth Segregated Portfolio (this fund is presented in United States Dollars) (the “Asia Pacific Income and Growth Fund”)
– U.S. Bank Equity Segregated Portfolio (this fund is presented in United States Dollars) (the "U.S. Bank Equity Fund")
– Greater Bay Area Growth and Income Segregated Portfolio (this fund is presented in United States Dollars) (the "Greater Bay Area Growth and Income Fund")
Notes to Financial Statements
For the year ended 30 June 2021
39
1. Corporate information (continued)
The objective of the China A Fund is to achieve long term capital appreciation by investing primarily in Mainland China (People’s Republic of China, excluding Hong Kong, Macau and Taiwan) capital markets. The objective of the Bond Fund is to provide capital appreciation and income generation by investing primarily in Renminbi (RMB)-denominated debt instruments issued and listed in Mainland China or traded in the Mainland China interbank bond market in accordance with applicable regulations. The objective of the Asia Pacific Income and Growth Fund is to provide investors with income and capital appreciation over the medium to longer term by investing primarily in equity and fixed income-related securities in the Asia Pacific ex-Japan region. The objective of the U.S. Bank Equity Fund is to achieve medium to long term growth of capital primarily through investing in equities (such as common, preferred and convertible preferred stocks) and equity-related investments (such as depositary receipts and exchange traded funds) of U.S. banks (including regional banks, commercial banks, industrial banks, savings and loan associations and bank holding companies incorporated in the United States of America and/or its territories). The objective of the Greater Bay Area Growth and Income Fund is to achieve capital growth and income generation by investing primarily in a diversified portfolio of equity and equity-related securities and fixed income securities of issuers which are connected to the region comprising Hong Kong, Macau and the Guangdong Province of China (“Greater Bay Area”).
The Company may establish other Segregated Portfolios.
Note: Capitalized words and phrases used in these financial statements of the Company shall, unless otherwise defined, have the same meanings as are ascribed to them in the prospectus of the Company (as may be amended and supplemented from time to time).
2. Significant accounting policies
2.1 Basis of preparation and Statement of Compliance
The financial statements of the Company and of each of its funds, comprising China A Segregated Portfolio, Renminbi Bond Segregated Portfolio, Asia Pacific Income and Growth Segregated Portfolio, U.S. Bank Equity Segregated Portfolio and Greater Bay Area Growth and Income Segregated Portfolio have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IASB”), the relevant disclosure provisions of the Memorandum and Articles of Association of the Company and the relevant disclosure requirements set out in Appendix E to the “Code on Unit Trusts and Mutual Funds (Hong Kong)”.
The financial statements have been prepared on a historical cost basis, except for financial assets and financial liabilities held at fair value through profit or loss, which have been measured at fair value.
The financial statements of the China A Fund, the Bond Fund, the Asia Pacific Income and Growth Fund, U.S. Bank Equity Fund and the Greater Bay Area Growth and Income Fund are presented in US dollars (“USD”), which is the functional currency of the funds. The combined financial statements of the Company are presented in USD.
Notes to Financial Statements
For the year ended 30 June 2021
40
2. Significant accounting policies (continued)
2.2 Summary of significant accounting policies
(A) Financial instruments
(i) Classification
The Company classifies its financial assets and financial liabilities into the categories below in accordance with IFRS 9.
To determine their classification and measurement category, IFRS 9 requires all financial assets, except equity instruments and derivatives, to be assessed based on a combination of the entity’s business model for managing the assets and the instruments’ contractual cash flow characteristics.
Financial assets and liabilities at fair value through profit or loss
This category represents financial assets and liabilities that are measured at fair value through the profit or loss. These assets and liabilities are acquired principally for the purpose of generating a profit from short-term fluctuation in price.
The Company includes in this category equity securities, investments in managed funds, debt instruments and derivatives.
Financial assets at amortized cost
This category includes loans and receivables which are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. The Company includes in this category amounts relating to other receivables.
Other financial liabilities
This category includes all financial liabilities, other than those classified as at fair value through profit or loss. The Company includes in this category amounts relating to accounts payable and accrued expenses, and consists in particular of Chinese tax, management fees and redemptions payables.
The Company accounting policy regarding the Redeemable Participating Shares is described in section (G) below.
(ii) Recognition
The Company recognizes a financial asset or a financial liability only when it becomes a party to the contractual provisions of the instrument.
Purchases or sales of financial assets that require delivery of assets within the time frame generally established by regulation or convention in the market place are recognized on the trade date, i.e., the date that the Company purchases or sells the asset.
Notes to Financial Statements
For the year ended 30 June 2021
41
2. Significant accounting policies (continued)
2.2 Summary of significant accounting policies (continued)
(A) Financial instruments (continued)
(iii) Initial measurement
Financial assets and financial liabilities at fair value through profit or loss are recorded in the Statement of Financial Position at fair value. All transaction costs for such instruments are recognized directly in the statement of comprehensive income as brokerage fees.
Financial assets at amortized cost and financial liabilities (other than those classified as at fair value through profit or loss) are measured initially at their fair value plus any directly attributable incremental costs of acquisition or issue.
(iv) Subsequent measurement
After initial measurement, the Company measures financial instruments which are classified as at fair value through profit or loss at fair value (see (B) below). Subsequent changes in the fair value of those financial instruments are recorded in “Net gains / (losses) on financial assets and liabilities at fair value through profit or loss”. Interest earned and dividend revenue elements of such instruments are recorded separately in “Interest income” and “Dividend income”, respectively.
Financial assets at amortized cost are carried at amortized cost using the effective interest method less any allowance for impairment. Gains and losses are recognized in profit or loss when the assets are derecognized or impaired, as well as through the amortization process.
Financial liabilities, other than those classified as at fair value through profit or loss, are measured at amortized cost using the effective interest method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the amortization process.
The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability and of allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate, the Company estimates cash flows considering all contractual terms of the financial instruments but does not consider future credit losses. The calculation includes all fees paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts.
Notes to Financial Statements
For the year ended 30 June 2021
42
2. Significant accounting policies (continued)
2.2 Summary of significant accounting policies (continued)
(A) Financial instruments (continued)
(v) Derecognition
A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognized where:
– The rights to receive cash flows from the asset have expired; or
– The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “passthrough” arrangement; and
– Either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the Company’s continuing involvement in the asset.
The Company derecognizes a financial liability when the obligation under the liability is discharged, cancelled or expires.
(B) Determination of fair value
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 fair value for financial instruments traded in active markets at the reporting date is based on their closing quoted price or binding dealer price quotations, without any deduction for transaction costs.
For all other financial instruments not traded in an active market, the fair value is determined by using appropriate valuation techniques. Valuation techniques include: using recent arm’s length market transactions; reference to the current market value of another instrument that is substantially the same; discounted cash flow analysis and option pricing models making as much use of available and supportable market data as possible.
An analysis of fair values of financial instruments and further details as to how they are measured are provided in Note 4.
Notes to Financial Statements
For the year ended 30 June 2021
43
2. Significant accounting policies (continued)
2.2 Summary of significant accounting policies (continued)
(C) Impairmentoffinancialassets
The Company’s impairment policy has been updated to align with the requirements of the IFRS 9 expected credit loss model. At each reporting date, the Company shall measure the loss allowance, on all amounts reported at amortised cost, at an amount equal to the lifetime expected credit losses, if the credit risk has increased significantly since initial recognition. If at reporting date, the credit risk has not increased significantly since initial recognition, the Company shall measure the loss allowance at an amount equal to 12-month expected credit losses.
The Company measures credit risk and expected credit losses using probability of default, exposure at default and loss given default. The Company considers both historical analysis and forward looking information in determining any expected credit losses.
The Company holds only trade receivables with no financing component and which have maturities of less than 12 months at amortised cost and, as such, has chosen to apply an approach similar to the simplified approach for expected credit losses (ECL) under IFRS 9 to all its trade receivables.
(D) Offsettingfinancialinstruments
Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously. This is generally not the case with master-netting agreements, and the related assets and liabilities are presented gross in the statement of financial position.
(E) Functional and presentation currencies
Liquidity of Company is managed on a day-to-day basis in USD for the China A Fund, the Bond Fund, the Asia Pacific Income and Growth Fund, the U.S. Bank Equity Fund and the Greater Bay Area Growth and Income Fund in order to handle the issuance and redemptions of each segregated portfolios’ redeemable preference shares. This currency is also used to evaluate the segregated portfolios’ performance. Management therefore considers USD as the currency that most faithfully represent the economic effects of the underlying transactions, events and conditions.
(F) Foreign currency translations
Transactions during the year, including purchases and sales of securities, income and expenses, are translated at the rate of exchange prevailing on the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the end of each reporting period.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.
Notes to Financial Statements
For the year ended 30 June 2021
44
2. Significant accounting policies (continued)
2.2 Summary of significant accounting policies (continued)
(F) Foreign currency translations (continued)
Foreign currency transaction gains and losses on financial instruments classified as at fair value through profit or loss are included in the statement of comprehensive income as part of the “Net gains / (losses)on financial assets and liabilities at fair value through profit or loss”. Foreign exchange differences on other financial instruments are included in the statement of comprehensive income as “Net foreign exchange gains/ (losses)”.
(G) Management and Redeemable Participating Shares
Management Shares are non-participating and issued for the purpose of enabling all the Participating Shares to be redeemed without liquidating the Company. They are, by definition, not redeemable at the shareholders’ option and are classified as Equity. Redeemable Participating Shares are redeemable at the shareholders’ option and are classified as financial liabilities. The Company continuously assesses the classification of Shares.
Redeemable Participating Shares are measured at their redemption amounts.
No distribution of dividend or capital has been made since the inception of the China A Fund and the Bond Fund up to 30 June 2021. It is not the intention of the Company to make any distribution out of the China A Fund and the Bond Fund, although this policy may change in the future with prior written notice to Shareholders of the Company. For the Asia Pacific Income and Growth Fund, it is currently intended that dividends are declared after the end of each month and which, subject to applicable law, may be paid out of capital or gross income of the relevant Class of the Segregated Portfolio while charging/paying all or part of the Classes fees and expenses to/out of the capital of the relevant Class of the Segregated Portfolio and (unless otherwise determined by the Company) are in the respective currency of denomination of the relevant Class of the Segregated Portfolio. The dividends declared (if any) are paid within three weeks of such declaration. For the U.S. Bank Equity Fund, it is currently intended that dividends are declared on a semi-annual basis and which, subject to applicable law, may be paid out of gross income of the relevant Class of the Segregated Portfolio while charging/paying all or part of the Classes fees and expenses to/out of the capital of the relevant Class of the Segregated Portfolio and (unless otherwise determined by the Company) are in the respective currency of denomination of the relevant Class of the Segregated Portfolio. The dividends declared (if any) are paid within three weeks of such declaration. For the Greater Bay Area Growth and Income Fund, in respect of Class AA (USD) Inc, Class AA (HKD) Inc, Class AA (AUD) Inc Hedged, it is currently intended that dividends are declared on a monthly basis and which, subject to applicable law, may be paid out of capital or gross income of the relevant Class of the Segregated Portfolio while charging/paying all or part of the Classes fees and expenses to/out of the capital of the relevant Class of the Segregated Portfolio and (unless otherwise determined by the Company) are in the respective currency of denomination of the relevant Class of the Segregated Portfolio. The dividends declared (if any) are paid within three weeks of such declaration. In respect of Class AA, it is not the intention of the Company to make any distributions in respect of such Classes (which are accumulation Classes) of the Greater Bay Area Growth and Income Fund, although this policy may change with prior written notice to Shareholders.
(H) Cash and cash equivalents
Cash and cash equivalents in the statement of financial position consist of cash balances on deposit with international financial institutions with original maturities of three months or less.
Notes to Financial Statements
For the year ended 30 June 2021
45
2. Significant accounting policies (continued)
2.2 Summary of significant accounting policies (continued)
(I) Due from / due to brokers
Due from brokers and due to brokers in the statement of financial position respectively include the receivable resulting from sales of financial instruments and the payable resulting from purchases of financial instruments.
(J) Transaction costs
Transaction costs consist of brokerage fees, dealing fees and stamp duty tax (if applicable) and are recognized in the statement of comprehensive income as brokerage fees.
(K) Interest income and expense
Interest income and expense are recognized in the statement of comprehensive income for all interest bearing financial instruments on an accrual basis.
(L) Dividend income
Dividend income is accounted for on an ex-dividend basis gross of any irrecoverable withholding taxes, which are disclosed separately in the statement of comprehensive income.
(M) Netgains/(losses)onfinancialassetsandliabilitiesatfairvaluethroughprofitorloss
This item includes changes in the fair value of financial assets and liabilities held for trading or designated upon initial recognition as “at fair value through profit or loss” and excludes interest and dividend income and expense.
Unrealized gains and losses comprise changes in the fair value of financial instruments for the year.
Realized gains and losses on disposals of financial instruments classified as “at fair value through profit or loss” are determined on the basis of the weighted average cost method. They represent the difference between an instrument’s initial carrying amount and disposal amount, or cash payments or receipts made on derivative contracts (excluding payments or receipts on collateral margin accounts for such instruments).
(N) Income taxes
There is currently no taxation imposed on income or capital gains by the Government of the Cayman Islands. The only taxes payable by the Company are withholding taxes of other countries applicable to certain investment income and capital gain taxes when the Company trades securities in other countries where applicable.
Further details on taxation are provided in Note 11.
Notes to Financial Statements
For the year ended 30 June 2021
46
2. Significant accounting policies (continued)
2.2 Summary of significant accounting policies (continued)
(O) Formation expenses
The costs of establishing the China A Fund and applying for the authorization of the Class AA Shares in Hong Kong by the SFC and the authorization of the Class I Shares and Class P Shares in the Cayman Islands by the CIMA amounted to approximately USD 345,000 in aggregate and was borne by the China A Fund and deducted from its assets for the account of each of the relevant Class and/or Series (as the case may be) in proportion to their respective Net Asset Values (“NAV”).
The costs of establishing the Bond Fund and applying for the authorization of the Class AA Shares in Hong Kong by the SFC and the authorization of the Class I Shares by the CIMA amounted to approximately USD 220,000 in aggregate and was borne by the Bond Fund and deducted from its assets for the account of each of the relevant Class and/or Series (as the case may be) in proportion to their respective Net Asset Values.
The costs of establishing the Asia Pacific Income and Growth Fund and the authorization of the Class AA (including the USD, AUD, HKD and CAD denominated Share classes), Class C, Class D and Class I Shares in the Cayman Islands by CIMA and with the SFC in Hong Kong amounted to approximately USD 50,000 in aggregate and was borne by the Asia Pacific Income and Growth Fund and deducted from its assets for the account of each of the relevant Class and/or Series (as the case may be) in proportion to their respective Net Asset Values.
The costs of establishing the U.S. Bank Equity Fund and related formalities with the CIMA in the Cayman Islands and with the SFC in Hong Kong amounted to approximately USD 188,000 (subsequently reduced to USD 140,000) in aggregate and was borne by the U.S. Bank Equity Fund and deducted from its assets for the account of each of the relevant Class and/or Series (as the case may be) in proportion to their respective Net Asset Values.
The costs of establishing the Greater Bay Area Growth and Income Fund and related formalities with the CIMA in the Cayman Islands and with the SFC in Hong Kong amounted to approximately USD 70,000 in aggregate and was borne by the Greater Bay Area Growth and Income Fund and deducted from its assets for the account of each of the relevant Class and/or Series (as the case may be) in proportion to their respective Net Asset Values.
In accordance with the Prospectus, the above mentioned expenses are amortised over the first five financial years of the Company commencing from the first business day following the inception date of the respective Segregated Portfolio. However, the accounting policy of the Segregated Portfolios for reporting purpose is to record the costs incurred in the formation of the Segregated Portfolios in the statement of comprehensive income in the period in which they arise.
The effect of the adjustment on expensing previously capitalized formation expenses to the published NAV is detailed in Note 15.
2.3 Significant accounting judgments, estimates and assumptions
The preparation of the Company’s financial statements requires management to make judgments, estimates and assumptions that affect the amounts recognized in the financial statements. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future.
Notes to Financial Statements
For the year ended 30 June 2021
47
2. Significant accounting policies (continued)
2.3 Significant accounting judgments, estimates and assumptions (continued)
Judgments
In the process of applying the Company’s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the financial statements:
Going Concern
The Company’s management has made an assessment of the Company’s ability to continue as a going concern and is satisfied that the Company has the resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast significant doubt upon the Company’s ability to continue as a going concern. Therefore, the combined financial statements are prepared on the going concern basis.
Functional currency
Liquidity of Company is managed on a day-to-day basis in USD for the China A Fund, the Bond Fund, the Asia Pacific Income and Growth Fund, the U.S. Bank Equity Fund and the Greater Bay Area Growth and Income Fund in order to handle the issuance and redemptions of each segregated portfolios’ Redeemable Participating shares. This currency is also used to evaluate the segregated portfolios’ performance. Management therefore considers USD as the currency that most faithfully represent the economic effects of the underlying transactions, events and conditions.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below. The Company based its assumptions and estimates on parameters available when the combined financial statements were prepared. However, existing circumstances and assumptions about future developments may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
Fair value of financial instruments
When the fair value of financial assets and liabilities recorded in the statement of financial position cannot be derived from active markets, their fair value is determined using a variety of valuation techniques that include the use of pricing models. The inputs to these models are taken from observable markets where possible, but where this is not feasible, estimation is required in establishing fair values. The estimates include considerations of liquidity and model inputs such as credit risk (both own and the counterparty’s), correlation and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments in the statement of financial position and the level where the instruments are disclosed in the fair value hierarchy. The models are calibrated regularly and tested for validity using prices from any observable current market transactions in the same instrument (without modification or repackaging) or based on any available observable market data.
Notes to Financial Statements
For the year ended 30 June 2021
48
2. Significant accounting policies (continued)
2.3 Significant accounting judgments, estimates and assumptions (continued)
Taxes
Enterprise Income tax (“EIT”) on capital gains arising from the trading of securities in the PRC
Prior to 17 November 2014, PRC EIT on the gross capital gains derived from trading PRC securities was unclear as to: (a) whether the PRC would enforce EIT on gains derived from the trading of PRC securities by a QFII; and (b) if the PRC were to enforce EIT, it is uncertain from which date EIT would be calculated and payable. Given the above uncertainty, the Investment Manager made a 10% withholding tax provision on realized and unrealized gains derived from the trading of PRC securities.
Pursuant to the issuance of the Circular CaiShui [2014] No. 79, which were jointly issued by the Ministry of Finance (“MOF”), China Securities Regulatory Commission and the State Administration of Taxation of PRC (“SAT”) on 17 November 2014, the Investment Manager ceased to provide 10% withholding tax provision on realized and unrealized gains derived from the trading of A-shares.
The Investment Manager will generally continue to provide for the 10% withholding tax on capital gains arising from the trading of PRC non-equity investments assets, including fixed income investments. The Investment Manager may consider the applicability of relevant double tax agreements to reduce the withholding tax rate as appropriate.
Further details on taxation are provided in Note 11.
2.4 Standards adopted during the year with no material effect on the Financial Statements
The accounting policies adopted are consistent with those of the previous year, except that the Company has adopted the following new and revised accounting standards (for the avoidance of doubt, only the new standards and amendments to standards which may have an effect on the Company’s accounts are mentioned below):
Amendments to references to the Conceptual Framework in IFRS Standards
This amendment revise the definitions of an asset and a liability and provide a new guidance on measurement and derecognition, presentation and disclosure. It is effective for periods beginning on or after 1 January 2020.
Amendments to IAS 1 and IAS 8 : Definition of Material
These amendments clarify the definition of “material” and align the definition used in the Conceptual Framework and the standards themselves. They are effective for periods beginning on or after 1 January 2020.
Notes to Financial Statements
For the year ended 30 June 2021
49
2. Significant accounting policies (continued)
2.5 Standards, interpretations and amendments issued but not yet effective
Standards issued but not yet effective at the date of issuance of the Company’s financial statements are listed below.
Improvements to IFRS
The International Accounting Standards Board (IASB) issued annual improvements to IFRS, incorporating amendments to the following International Financial Reporting Standards:
– Amendments to IFRS 3 Business Combinations
– Amendments to IAS 16 Property, Plant and Equipment
– Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets
These amendments are effective for annual periods beginning on or after 1 January 2022. The Company expects no impact from the adoption of the amendments on its financial position or performance.
Amendments to IAS 1 : Classification of Liabilities as Current or Non-current
This amendment provide a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. It only affects the presentation of liabilities in the statement of financial position. It is effective for periods beginning on or after 1 January 2023 and is not expected to have impact on the Company’s financial position or performance.
Amendments to IFRS 9, IFRS 7, IFRS 4, IFRS 16 and IAS 39: Interest Rate Benchmark Reform – Phase 2
These amendments address issues that might affect financial reporting after the reform of an interest rate benchmark, including its replacement with alternative benchmark rates. They are effective for periods beginning on or after 1 January 2021 and are not expected to have impact on the Company’s financial position or performance.
IRFS 17: Insurance Contracts
This standard establishes the principles for recognition, measurement, presentation and disclosure of insurance contracts. The objective is to ensure that an entity provides relevant information that faithfully represents those contracts. It is effective for periods beginning on or after 1 January 2023 and is not expected to have impact on the Company’s financial position or performance.
All the standards and amendments mentioned in this section have not been adopted by the Company as at 30 June 2021.
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ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Reali
zed
8,57
4,009
5,
828,3
04
16,73
0 (1
,304,2
45)
191,2
14
(475
,568)
594,9
55
(2,95
1,030
) 2,
353,4
00
921,5
32
11,73
0,308
2,
018,9
93
Unrea
lized
4,30
1,150
4,
240,5
49
2,84
4,218
59
1,495
2,
135,4
21
(531
,285)
12,08
9,687
(2
,401,6
16)
(474
,635)
142,6
66
20,89
5,841
2,
041,8
09
Net g
ains /
(loss
es) o
n fina
ncial
asse
ts at
fair v
alue t
hrou
gh pr
ofit o
r loss
12,87
5,159
10
,068,8
53
2,86
0,948
(7
12,75
0) 2,
326,6
35
(1,00
6,853
) 12
,684,6
42
(5,35
2,646
) 1,
878,7
65
1,06
4,198
32
,626,1
49
4,06
0,802
Notes to Financial Statements
For the year ended 30 June 2021
51
4. Fair value of financial instruments
The following table shows financial instruments recognised at fair value, analysed between those whose fair value is based on:
– Quoted prices in active markets for identical assets or liabilities (Level 1);
– Those involving inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and
– Those with inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
Fair value hierarchy
As at 30 June 2021 Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss
China A Fund (in USD) 44,955,118 – – 44,955,118 Equities 44,955,118 – – 44,955,118
Bond Fund (in USD) 28,515,110 14,251,382 – 42,766,492 Bonds – 13,347,307 – 13,347,307 Supranationals, Governments and Local Public Authorities, Debt Instruments 28,515,110 – – 28,515,110 Forward currency contracts – 904,075 – 904,075
Asia Pacific Income and Growth Fund (in USD) 11,889,461 6,211,961 – 18,101,422 Equities 11,269,337 – – 11,269,337 Bonds 203,489 5,863,071 – 6,066,560 Supranationals, Governments and Local Public Authorities, Debt Instruments 255,591 348,890 – 604,481 Funds 161,044 – – 161,044
U.S. Bank Equity Fund (in USD) 28,837,062 – – 28,837,062 Equities 28,837,062 – – 28,837,062
Greater Bay Area Growth and Income Fund (in USD) 22,502,252 7,773,861 – 30,276,113 Equities 22,298,763 – – 22,298,763 Bonds 203,489 7,773,861 – 7,977,350
Total financial assets at fair value through profit or loss (in USD) 136,699,003 28,237,204 – 164,936,207
Financial liabilities at fair value through profit or loss
Bond Fund (in USD) – (1,071,977) – (1,071,977)Forward currency contracts – (1,071,977) – (1,071,977)
Asia Pacific Income and Growth Fund (in USD) – (28,908) – (28,908)Forward currency contracts – (28,908) – (28,908)
Greater Bay Area Growth and Income Fund (in USD) – (38,231) – (38,231)Forward currency contracts – (38,231) – (38,231)
Total financial liabilities at fair value through profit or loss (in USD) – (1,139,116) – (1,139,116)
Notes to Financial Statements
For the year ended 30 June 2021
52
4. Fair value of financial instruments (continued)
Fair value hierarchy (continued)
As at 30 June 2020 Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss
China A Fund (in USD) 40,462,494 – – 40,462,494 Equities 40,462,494 – – 40,462,494
Bond Fund (in USD) 12,001,231 17,842,167 – 29,843,398 Bonds – 14,861,026 – 14,861,026 Supranationals, Governments and Local Public Authorities, Debt Instruments 12,001,231 2,981,141 – 14,982,372
Asia Pacific Income and Growth Fund (in USD) 10,255,450 5,006,946 – 15,262,396 Equities 8,923,361 4,155 – 8,927,516 Bonds 958,403 4,668,892 – 5,627,295 Supranationals, Governments and Local Public Authorities, Debt Instruments 267,806 333,899 – 601,705 Funds 105,880 – – 105,880
U.S. Bank Equity Fund (in USD) 18,310,835 – – 18,310,835 Equities 18,310,835 – – 18,310,835
Greater Bay Area Growth and Income Fund (in USD) 6,490,201 4,761,547 – 11,251,748 Equities 6,490,201 – – 6,490,201 Bonds – 4,761,483 – 4,761,483 Forward currency contracts – 64 – 64
Total financial assets at fair value through profit or loss (in USD) 87,520,211 27,610,660 – 115,130,871
Financial liabilities at fair value through profit or loss
Asia Pacific Income and Growth Fund (in USD) – (6,550) – (6,550)Forward currency contracts – (6,550) – (6,550)
Greater Bay Area Growth and Income Fund (in USD) – (1,314) – (1,314)Forward currency contracts – (1,314) – (1,314)
Total financial liabilities at fair value through profit or loss (in USD) – (7,864) – (7,864)
Notes to Financial Statements
For the year ended 30 June 2021
53
4. Fair value of financial instruments (continued)
Fair value hierarchy (continued)
Level 1 financial assets at fair value through profit or loss are marketable securities. Equities and bonds are valued at stock exchange last traded prices and quoted mid prices at the close of business on 30 June 2021 respectively. Level 2 financial assets at fair value through profit or loss are securities that are brokers’ quoted prices or those not actively traded at the close of business on 30 June 2021 which are valued at the last traded price for the identical instruments.
The financial liabilities at fair value through profit or loss are forward currency contracts and are valued by using valuation techniques and models. More precisely, the fair values of forward foreign exchange contracts are calculated by reference to current exchange rates for contracts with similar maturity and risk profiles and so involved valuation techniques where all the model inputs are observable (either directly or indirectly) in the market. It corresponds to level 2 of the IFRS 7 fair value hierarchy.
The following table presents the transfer between levels for the year ended 30 June 2021.
As at 30 June 2021 Level 1 Level 2 Level 3
Asia Pacific Income and Growth Fund USD USD USDTransfer between levels 1 and 2 (989,843) 989,843 –
The securities transferred in Level 1 relate to positions whose trading was inactive as at 30 June 2020 but was actively traded on 30 June 2021. The securities transferred in Level 2 relate to positions whose trading was active as at 30 June 2020 but was inactively traded on 30 June 2021.
The following table presents the transfer between levels for the year ended 30 June 2020.
As at 30 June 2020 Level 1 Level 2 Level 3
Bond Fund USD USD USDTransfer between levels 1 and 2 (16,057,884) 16,057,884 –
Asia Pacific Income and Growth Fund USD USD USDTransfer between levels 1 and 2 (2,658,194) 2,658,194 –
Greater Bay Area Growth and Income Fund USD USD USDTransfer between levels 1 and 2 (2,496,148) 2,496,148 –
The securities transferred in Level 2 relate to positions whose trading was active as at 30 June 2019 but was inactively traded on 30 June 2020.
Notes to Financial Statements
For the year ended 30 June 2021
54
4. Fair value of financial instruments (continued)
Fair value hierarchy (continued)
Other than the above, there were no other transfers between levels for the years ended 30 June 2021 and 2020.
All fair value measurements disclosed are recurring fair value measurements.
For assets and liabilities carried at amortized cost, their carrying values are a reasonable approximation of fair value due to their short-term nature.
5. Cash and cash equivalents
Cash and cash equivalents as at 30 June 2021 represent cash held at banks. As at 30 June 2021 and 30 June 2020, there were no bank overdrafts and no cash equivalents were given or received as collateral.
Man
ulife
Adv
ance
d Fu
nd S
PCN
otes
to F
inan
cial
Sta
tem
ents
For t
he y
ear e
nded
30
June
202
1
55
6.
Oth
er re
ceiv
able
s an
d pr
epay
men
ts
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Divid
end r
eceiv
able
4,61
8 –
– –
95,86
8 68
,010
42,65
4 32
,008
151,1
41
39,69
3 29
4,281
13
9,711
Int
erest
receiv
able
– –
594,5
94
398,1
73
88,84
6 11
3,381
–
– 11
3,512
63
,964
796,9
52
575,5
18
Othe
r rec
eivab
les 2,
265
957
175
621
70,63
8 3,
859
6,34
6 44
3 3,
254
35,80
2 82
,678
41,68
2 6,
883
957
594,7
69
398,7
94
255,3
52
185,2
50
49,00
0 32
,451
267,9
07
139,4
59
1,17
3,911
75
6,911
7.
Acc
ount
s pa
yabl
e an
d ac
crue
d ex
pens
es
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Chine
se ta
x pay
able
(Note
s 2.3,
11)
– –
640,9
38
587,9
95
– –
– –
– –
640,9
38
587,9
95
Mana
geme
nt fee
s pay
able
62,41
4 55
,813
7,95
6 13
,850
23,01
8 20
,136
38,07
3 22
,473
37,72
8 14
,155
169,1
89
126,4
27
Othe
r pay
ables
129,4
59
114,4
54
99,33
4 85
,588
94,94
1 27
,189
39,20
6 36
,429
24,52
2 56
,274
387,4
62
319,9
34
191,8
73
170,2
67
748,2
28
687,4
33
117,9
59
47,32
5 77
,279
58,90
2 62
,250
70,42
9 1,
197,5
89
1,03
4,356
The
othe
r pa
yabl
es in
clud
e ac
crue
d co
mpl
ianc
e fe
e, s
hare
cla
ss fe
e, p
ublic
atio
n an
d pr
intin
g fe
e, a
dmin
istra
tion
fee,
acc
ount
ing
fee,
tran
sfer
age
nt fe
e,
cust
ody
fee,
sup
ervi
sory
and
fidu
ciar
y fe
e an
d au
dit f
ee.
Notes to Financial Statements
For the year ended 30 June 2021
56
8. Share Capital
Authorized and issued capital
The authorized share capital of the Company is USD 1,000,000 divided into 100 Management Shares of USD 1 par value each and 999,900,000 Participating Shares of USD 0.001 par value each.
Management Shares are non–participating and may only be issued to a member of the Manulife Group, and are issued for the purpose of enabling all the Participating Shares to be redeemed without liquidating the Company. All Management Shares have been issued to Manulife Investment Management (Hong Kong) Limited (“MIMHK”), the Investment Manager.
Participating Shares and Management Shares carry equal voting rights. The holder of a Management Share has the right to receive notice of, attend at and vote as a Shareholder at any general meeting of the Company. The holder of a Participating Share has the right to receive notice of, attend at or vote as a Shareholder at any general meeting of the Company and may vote at a separate Class meeting.
As at 30 June 2021, the below Classes of Participating Shares are available for subscription in each Segregated Portfolio:
China A Fund– Class AA, for investment by retail investors
– Class I, for investment by institutional investors only
– Class P, for investment by institutional investors only
Bond Fund– Class AA, for investment by retail investors
– Class I, for investment by institutional investors only
– Class I3, for investment by any collective investment scheme or mutual fund managed by a Manulife entity; or institutional investors who at the time of receipt of subscription have entered into an agreement with a Manulife entity in relation to fees; and, who meet the requirements as determined or waived by the General Adviser and Distributor at its sole discretion.
– Class P, for investment by institutional investors only
Asia Pacific Income and Growth Fund– Class AA (USD) Inc, for investment by retail investors
– Class AA (AUD) Inc Hedged, for investment by retail investors
– Class AA (CAD) Inc Hedged, for investment by retail investors
– Class AA (HKD) Inc, for investment by retail investors
– Class C (USD) Inc, for investment by non–retail investors who meet the minimum investment amounts required for this Class only
– Class D (USD) Inc, for investment by non–retail investors who meet the minimum investment amounts required for this Class only
– Class I (USD) Inc, for investment by institutional investors only
– Class T (USD) Inc, for investment by institutional investors only
Notes to Financial Statements
For the year ended 30 June 2021
57
8. Share Capital (continued)
Authorized and issued capital (continued)
U.S. Bank Equity Fund– Class AA (USD) Inc, for investment by retail investors
– Class AA (HKD) Inc, for investment by retail investors
– Class I2 (RMB) Hedged, for investment by institutional investors only
– Class I3 (USD), for investment by any collective investment scheme or mutual fund managed by a Manulife entity; or institutional investors who at the time of receipt of subscription have entered into an agreement with a Manulife entity in relation to fees; and, who meet the requirements as determined or waived by the General Adviser and Distributor at its sole discretion.
Greater Bay Area Growth and Income Fund
– Class AA (USD) Inc, for investment by retail investors
– Class AA (HKD) Inc, for investment by retail investors
– Class AA, for investment by retail investors
– Class AA (HKD), for investment by retail investors
– Class AA (AUD) Hedged, for investment by retail investors
– Class AA (AUD) Inc Hedged, for investment by retail investors
The proceeds from the issue of each Class of Participating Shares are applied to the Segregated Portfolio to which that Class relates. The proceeds from the issue of the Management Shares shall be applied to the General Assets of the Company.
Man
ulife
Adv
ance
d Fu
nd S
PCN
otes
to F
inan
cial
Sta
tem
ents
For t
he y
ear e
nded
30
June
202
1
58
8.
Shar
e C
apita
l (co
ntin
ued)
Aut
horiz
ed a
nd is
sued
cap
ital (
cont
inue
d)
Dur
ing
the
year
s en
ded
30 J
une
2021
and
30
June
202
0, th
e nu
mbe
r of R
edee
mab
le P
artic
ipat
ing
Sha
res
issu
ed, r
edee
med
and
out
stan
ding
was
as
follo
ws:
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Grow
th Fu
ndU.S
. Ban
k Equ
ity Fu
ndGr
eater
Bay A
rea Gr
owth
and I
ncom
e Fun
d
Mana
geme
ntSh
areCla
ss AA
(USD)
Class
I(US
D)Cla
ss AA
(USD)
Class
I(US
D)Cla
ss I3
(USD)
Class
AA
(USD) Inc
Class
AA
(AUD) Inc
He
dged
Class
AA
(HKD) Inc
Class
AA
(CAD) Inc
He
dged
Class
AA
(USD) Inc
Class
AA
(HKD) Inc
Class
I2
(RMB)
Hedg
edCla
ss AA
(US
D)Cla
ss AA
(US
D) Inc
Class
AA
(AUD) Inc
He
dged
Class
AA
(HKD)
Class
AA
(HKD) Inc
Balan
ce as
at 30
June
2019
4,357,
8514,0
592,0
55,930
345,16
8 2,0
51,602
840
,533
192,31
8497
,802
247,53
0 3,5
22,900
98
0,683
29,61
0 50
0,000
735,6
67 42
6,088
– 57
6,875
100
Issue
of R
edee
mable
Pa
rticipa
ting S
hares
of th
e yea
r 81
,421
– 1,9
11 –
– 42
6,311
10,73
2 23
,723
12,81
4 1,2
67,508
45
,428
– 30
,311
66,15
2 17
,604
– 94
,175
–
Rede
mptio
n of R
edee
mable
Pa
rticipa
ting S
hares
of th
e ye
ar
(1,139
,604)
–
(1,204
,539)
(59,3
28) (6
11,939
) (3
32,351
) (4
,484)
(43,9
39) (1
,000)
(2,
626,95
2) (6
94,163
) (2
9,610)
(7,49
5) (5
39,508
) (3
77,167
)–
(407,
846)
–
Balan
ce as
at 30
June
2020
3,299,
6684,0
59853
,302
285,84
0 1,4
39,663
934
,493
198,56
6477
,586
259,34
42,1
63,456
331,94
8–
522,8
16 26
2,311
66,52
5 –
263,2
04 100
Issue
of R
edee
mable
Pa
rticipa
ting S
hares
of th
e ye
ar 67
3,645
– 14
,295
– 1,6
40,571
59
2,364
8,701
28,50
7 24
,244
5,318,
954
382,5
84 –
39,25
3 1,3
88,491
50
8,096
1,983
389,4
03 –
Rede
mptio
n of R
edee
mable
Pa
rticipa
ting S
hares
of th
e ye
ar
(1,256
,649)
(4,05
9) (5
41,493
) (1
,492)
(275,
399)
(585,
414)
(3,52
5) (3
9,187)
(3,00
0)
(5,510
,476)
(452,
902)
– (3
9,059)
(260,
349)
(136,
805)
– (1
78,672
)–
Balan
ce as
at 30
June
2021
2,716,
664–
326,10
4284
,348
2,804,
835941
,443
203,74
2466
,906
280,58
81,9
71,934
261,63
0–
523,01
01,3
90,453
437,81
61,9
83473
,935
100
The
Man
agem
ent S
hare
s of
the
Com
pany
wer
e is
sued
on
14 J
uly
2008
.
Notes to Financial Statements
For the year ended 30 June 2021
59
8. Share Capital (continued)
Authorized and issued capital (continued)
No distribution of dividend or capital has been made since the inception of the China A Fund and the Bond Fund up to 30 June 2021. It is not the intention of the Company to make any distribution out of the China A Fund and the Bond Fund, although this policy may change in the future with prior written notice to Shareholders of the Company. For the Asia Pacific Income and Growth Fund, it is currently intended that dividends are declared after the end of each month and which, subject to applicable law, may be paid out of capital or gross income of the relevant Class of the Segregated Portfolio while charging/paying all or part of the Classes fees and expenses to/out of the capital of the relevant Class of the Segregated Portfolio and (unless otherwise determined by the Company) are in the respective currency of denomination of the relevant Class of the Segregated Portfolio. The dividends declared (if any) are paid within three weeks of such declaration. For the U.S. Bank Equity Fund, it is currently intended that dividends are declared on a semi-annual basis and which, subject to applicable law, may be paid out of capital or gross income of the relevant Class of the Segregated Portfolio while charging/paying all or part of the Classes fees and expenses to/out of the capital of the relevant Class of the Segregated Portfolio and (unless otherwise determined by the Company) are in the respective currency of denomination of the relevant Class of the Segregated Portfolio. The dividends declared (if any) are paid within three weeks of such declaration. For the Greater Bay Area Growth and Income Fund, in respect of Class AA (USD) Inc, Class AA (HKD) Inc, Class AA (AUD) Inc Hedged, it is currently intended that dividends are declared on a monthly basis and which, subject to applicable law, may be paid out of capital or gross income of the relevant Class of the Segregated Portfolio while charging/paying all or part of the Classes fees and expenses to/out of the capital of the relevant Class of the Segregated Portfolio and (unless otherwise determined by the Company) are in the respective currency of denomination of the relevant Class of the Segregated Portfolio. The dividends declared (if any) are paid within three weeks of such declaration. In respect of Class AA, it is not the intention of the Company to make any distributions in respect of such Classes (which are accumulation Classes) of the Greater Bay Area Growth and Income Fund, although this policy may change with prior written notice to Shareholders.
For further details on dividend distribution, please refer to the Statement of Distribution on pages 30–37.
Capital Management
As a result of the ability to issue and redeem shares, the capital of the Company can vary depending on the demand for subscriptions and redemptions to the Company. The Company is not subject to externally imposed capital requirements and has no legal restrictions on the issue or redemption of Participating Shares beyond those included in the Company’s constitution.
With a view to protecting the interests of Shareholders, the Company may limit the number of Participating Shares of any Class and/or Series which are redeemed on any Dealing Day to 10% in aggregate of the total number of Participating Shares in issue of the relevant Class and/or Series. Such limitation is applied pro rata to all Shareholders who have requested such redemption. If the redemption requests received on such Dealing Day are in excess of this limit, the Company is entitled (but not obliged) to carry out only sufficient redemptions which, in aggregate, amount to 10% of the Participating Shares in issue of the relevant Class and/or Series at the relevant time. Redemption requests for Participating Shares which are not redeemed but which would otherwise have been redeemed are deferred until the next Dealing Day and are dealt with (subject to further deferral if the deferred requests themselves exceed 10% of the Participating Shares in issue of the relevant Class and/or Series) in priority to later redemption requests. Where there is more than one Class and/or Series of Participating Shares in relation to a Segregated Portfolio, the same restriction applies to all such Classes and Series of Participating Shares.
Notes to Financial Statements
For the year ended 30 June 2021
60
8. Share Capital (continued)
Capital Management (continued)
For the China A Fund, the Bond Fund, the Asia Pacific Income and Growth Fund, the U.S. Bank Equity Fund and the Greater Bay Area Growth and Income Fund subscriptions and redemptions to the Participating Shares are dealt on each Business Day.
Man
ulife
Adv
ance
d Fu
nd S
PCN
otes
to F
inan
cial
Sta
tem
ents
For t
he y
ear e
nded
30
June
202
1
61
9.
Div
iden
d in
com
e
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20US
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
D
Equit
y sec
uritie
s des
ignate
d at fa
ir valu
e thr
ough
profi
t or lo
ss 58
4,166
53
3,593
–
– 43
8,350
44
0,571
75
4,653
87
2,638
34
6,763
24
5,832
2,
123,9
32
2,09
2,634
Fu
nds d
esign
ated a
t fair v
alue t
hroug
h profi
t or
loss
– –
– –
268
– –
– –
– 26
8 –
584,1
66
533,5
93
– –
438,6
18
440,5
71
754,6
53
872,6
38
346,7
63
245,8
32
2,12
4,200
2,
092,6
34
10.
Inte
rest
and
oth
er in
com
e
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
Intere
st inc
ome
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20US
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
D
Cash
442
2,25
5 1,
483
5,28
9 97
5 13
–
– –
– 2,
900
7,55
7 De
bt se
curiti
es de
signa
ted at
fair v
alue
throu
gh pr
ofit o
r loss
– –
1,42
3,659
1,
404,1
79
320,3
41
313,6
47
– –
212,3
65
345,0
17
1,95
6,365
2,
062,8
43
442
2,25
5 1,
425,1
42
1,40
9,468
32
1,316
31
3,660
–
– 21
2,365
34
5,017
1,
959,2
65
2,07
0,400
Man
ulife
Adv
ance
d Fu
nd S
PCN
otes
to F
inan
cial
Sta
tem
ents
For t
he y
ear e
nded
30
June
202
1
62
10.
Inte
rest
and
oth
er in
com
e (c
ontin
ued)
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
Othe
r inco
me
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20US
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
D
Comm
ission
on su
bscri
ption
s / re
demp
tions
54,86
7 36
,059
20,49
5 44
,971
74
– 21
–
231
– 75
,688
81,03
0 54
,867
36,05
9 20
,495
44,97
1 74
–
21
– 23
1 –
75,68
8 81
,030
11.
Taxa
tion
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20
For th
e yea
r en
ded 3
0 Jun
e 20
21
For th
e yea
r en
ded 3
0 Jun
e 20
20US
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
D
With
holdi
ng ta
xes
(58,5
94)
(53,3
59)
– –
(40,3
11)
(39,2
68)
(225
,856)
(261
,792)
(9,57
5) (8
,072)
(334
,336)
(362
,491)
PRC
tax on
capit
al ga
ins–
– (4
,790)
(70,9
13)
– –
– –
– –
(4,79
0) (7
0,913
) (5
8,594
) (5
3,359
) (4
,790)
(70,9
13)
(40,3
11)
(39,2
68)
(225
,856)
(261
,792)
(9,57
5) (8
,072)
(339
,126)
(433
,404)
Notes to Financial Statements
For the year ended 30 June 2021
63
11. Taxation (continued)
Cayman Islands
The Government of the Cayman Islands does not, under existing legislation, impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax upon the Company or the Shareholders. The Cayman Islands are not party to a double tax treaty with any country that is applicable to any payments made to or by the Company.
Hong Kong
No provision for Hong Kong profits tax has been made as the Company was authorized as a collective investment scheme under section 104 of the Hong Kong Securities and Futures Ordinance and is therefore exempt from Hong Kong profits tax under Section 26A(1A) of the Hong Kong Inland Revenue Ordinance.
Mainland China
PRC EIT of 10% is charged on PRC sourced dividends and interest on a withholding basis, subject to Caishui [2018] No. 108, according to which foreign institutional investors are exempt from EIT on bond interest income derived November 7, 2018 to November 6, 2021. In addition, the withholding tax rate may be reduced subject to the applicability of relevant double tax agreements.
On 17 November 2014, Mainland China issued the Circular CaiShui [2014] No. 79 (“Circular 79”) which clarified the PRC withholding tax treatment with respect to realized gains derived by QFIIs and RQFIIs from the trading of shares in PRC resident enterprises. QFIIs and RQFIIs are temporarily exempt from withholding tax in respect of capital gains derived from the trading of equity investments assets (including shares) starting from 17 November 2014. Realized capital gains derived prior to 17 November 2014 would be subject to withholding tax and are required to be reported to the State Taxation Bureaus in Beijing or Shanghai.
In view of the issuance of Circular 79 on 14 November 2014, the China A Fund has ceased to make provision for 10% withholding tax on realized gains derived from the trading of A-shares with effect from 17 November 2014.
The Investment Manager will continue to provide for the 10% withholding tax on capital gains arising from the trading of PRC non-equity investments assets, including fixed income investments.
As at 30 June 2021, the withholding tax provision on gross unrealized gains is USD 71,888 for the Bond Fund (30 June 2020: USD 87,585).
As at 30 June 2021, the Bond Fund’s withholding tax provision on gross realized gains is USD 569,050 (30 June 2020: USD 500,410).
Notes to Financial Statements
For the year ended 30 June 2021
64
11. Taxation (continued)
The tax law and regulations of Mainland China are constantly changing, and they may be changed with retrospective effect to the advantage or disadvantage of shareholders. The interpretation and applicability of the tax law and regulations by tax authorities may not be consistent and transparent; and may vary from region to region. It should also be noted that any provision for taxation made by the Investment Manager may be excessive or inadequate to meet final Mainland China tax liabilities. Consequently, shareholders may be advantaged or disadvantaged depending upon the final tax liabilities.
United States
A United States withholding tax of 30% is charged on United States sourced dividends. The withholding tax rate may be reduced subject to the applicability of relevant double tax agreements.
12. Fees and Charges
12.1 Management fees
MIMHK, the General Adviser and Distributor and the Investment Manager, is entitled to receive management fees at the percentage specified below per annum on the NAV of the relevant class of Participating Shares in the relevant Segregated Portfolio, accrued and calculated monthly and payable monthly in arrears.
China A Fund Bond Fund Asia Pacific Income and Growth Fund U.S. Bank Equity Fund
Greater Bay Area Growth and Income
Fund
Class AA Class I Class AA Class I Class I3
Class AA Inc(USD, AUD, HKD &
CAD)
Class AA Inc(USD & HKD)
Class I2(RMB)
Class AA (USD & HKD) & Class AA Inc (USD, AUD & HKD)
1.75% Up to 1.5% 1.25% Up to 1%
Separately agreed with the relevant Manulife
entity.
1.50% 1.50% 0.43% 1.50%
Manulife TEDA Fund Management Co. Ltd. (the “Investment Adviser”) has been appointed by the Investment Manager to provide non–binding investment advice in connection with the China A Fund’s investments through conducting market research, gathering data, making of recommendations and provision of other related advisory services.
The day–to–day investment management activities of the China A Fund have not been delegated to the Investment Adviser and the Investment Manager has sole overall responsibility for ensuring that the investment objectives, strategies, guidelines and restrictions of the China A Fund are observed and complied with in all aspects.
12.2 Custodian and Paying Agent, Administration, Registrar and Transfer Agent fees
Citibank Europe plc, Luxembourg Branch, in relation to its duties as the custodian and paying agent (including as the sub–administrator, registrar and transfer agent), is entitled to a maximum fee of 0.50% per annum of the NAV of the Segregated Portfolios, accrued and calculated on each valuation day of the Segregated Portfolios and payable monthly in arrears.
Notes to Financial Statements
For the year ended 30 June 2021
65
12. Fees and Charges (continued)
12.2 Custodian and Paying Agent, Administration, Registrar and Transfer Agent fees (continued)
FirstCaribbean International Bank and Trust Company (Cayman) Limited (formerly known as CIBC Bank and Trust Company (Cayman) Limited), in relation to its duties as the administrator and principal office, is entitled to an annual fee of 0.004% of the NAV of each Segregated Portfolio (subject to an annual minimum fee of USD 8,000 per Segregated Portfolio).
12.3 Initial, Redemption, Administrative and Switching Charges
(a) Initial Charge
The Company may, at its absolute discretion, impose an initial charge (and subsequently, at its absolute discretion, in relation to different investors increase, reduce or waive in whole or in part such initial charge) of up to the below defined maximums of the NAV per Participating Share on an investor subscribing for Participating Shares of the relevant Segregated Portfolio. Subscriptions of the units of the Segregated Portfolios are recorded net of initial charge.
China A Fund Bond Fund Asia Pacific Income and Growth Fund U.S. Bank Equity Fund
Greater Bay Area Growth and
Income Fund
Class AA Class I Class AA Class I Class I3 Class AA Inc
(USD, AUD, HKD & CAD)
Class AA Inc
(USD & HKD)
Class I2(RMB)
Class AA (USD & HKD) & Class AA Inc (USD, AUD &
HKD)
Currently up to 5% of the
NAV. The Directors
reserve the right to charge
up to 6% of the NAV per Participating
Share.
Currently up to 5% of the
NAV. The Directors
reserve the right to charge
up to 6% of the NAV per Participating
Share.
Currently up to 5% of the
NAV. The Directors
reserve the right to charge
up to 6% of the NAV per Participating
Share.
Up to 6% of the NAV per Participating
Share.
not applicable
Currently up to 5% of the NAV. The Directors
reserve the right to charge up to 6% of the NAV per Participating
Share.
Currently up to 5% of the
NAV. The Directors reserve
the right to charge up
to 6% of the NAV per
ParticipatingShare.
not applicable
Currently up to 5% of the NAV per Share.
(b) Redemption Charge (inclusive of Administrative Charge)
The Company may, at its absolute discretion, impose a redemption charge (and subsequently, at its absolute discretion, in relation to different investors increase, reduce or waive in whole or in part such redemption charge) of up to a maximum of 7% (inclusive of the administrative charge set out below) of the relevant redemption proceeds on a Shareholder applying to redeem all or any of his/her Participating Shares of the relevant Segregated Portfolio.
The administrative charge is intended to cover all or part of the dealing and transaction costs (including any requisite governmental tax, stamp duty, registration fee, fiscal or currency repatriation charges, marketspreads) relating to the liquidation or disposal of the underlying investments. All redemption charges are retained in the relevant Segregated Portfolio for the benefit of continuing Shareholders as it seeks to preserve the value of the underlying assets of the relevant Segregated Portfolio against the effects of liquidation or disposal caused by redeeming Shareholders. There is no redemption charge for the Asia Pacific Income and Growth Fund, the U.S. Bank Equity Fund and the Greater Bay Area Growth and Income Fund.
Notes to Financial Statements
For the year ended 30 June 2021
66
12. Fees and Charges (continued)
(b) Redemption Charge (inclusive of Administrative Charge) (continued)
The redemption charge applicable to the China A Fund and the Bond Fund for the shares AA, I and P was 5.3% of the redemption proceeds during the lock–up period which expired on 9 February 2011 and 23 February 2011 respectively. It is reduced to 0.3% for the share AA after the lock–up period.
(c) Switching Charge (if any)
The Company may also impose a switching charge of up to 1% of NAV per Participating Share on switching requests (if any).
13. Financial risk and management objectives and policies
Introduction
The Company’s objective in managing risk is to achieve the investment objectives of each of the Segregated Portfolios. Risk is inherent in the activities of the Company, but it is managed through a process of ongoing identification, measurement and monitoring, subject to risk limits and other controls. The Company is exposed to market risk (which includes price risk, interest rate risk and foreign currency risk), credit risk and liquidity risk.
The Company monitors and manages the risks of each of the Segregated Portfolios separately.
China A Fund
The objective of the China A Fund is to achieve long term capital appreciation by investing primarily in Mainland China capital markets. The China A Fund seeks to achieve its investment objective by investing primarily (i.e. not less than 70% of its net assets) in companies listed on the A–Share markets of the Shanghai Stock Exchange and/or the Shenzhen Stock Exchange.
Bond Fund
The objective of the Bond Fund is to provide capital appreciation and income generation by investing primarily in RMB–denominated debt instruments issued and listed in Mainland China or traded in the Mainland China interbank bond market, in accordance with applicable regulations. The Bond Fund invests primarily (i.e. not less than 70% and up to 100% of its net assets) in RMB–denominated debt instruments, including convertible bonds that are listed or transferred on either the Shanghai Stock Exchange or the Shenzhen Stock Exchange, or interbank bonds traded in the China Interbank Bond Market, and which are issued by the Mainland China Government as well as corporations in Mainland China.
Asia Pacific Income and Growth Fund
The investment objective of the Asia Pacific Income and Growth Fund is to provide income and capital appreciation over the medium to longer term by investing primarily in equity and fixed income–related securities in the Asia Pacific ex–Japan region. The Asia Pacific Income and Growth Fund targets an asset allocation of 60% in equity securities and 40% in fixed income securities in that region. However the Asia Pacific Income and Growth Fund may hold between 25% and 75% in either equity securities or fixed income securities in that region in pursuance of its investment objective.
Notes to Financial Statements
For the year ended 30 June 2021
67
13. Financial risk and management objectives and policies (continued)
Introduction (continued)
U.S. Bank Equity Fund
The investment objective of the U.S. Bank Equity Fund is to achieve medium to long term growth of capital primarily through investing in equities (such as common, preferred and convertible preferred stocks) and equity-related investments (such as depositary receipts and exchange traded funds (“ETF”)) of U.S. banks (including regional banks, commercial banks, industrial banks, savings and loan associations and bank holding companies incorporated in the United States of America and/or its territories, collectively “U.S. Banks”). The U.S. Bank Equity Fund (i) shall invest at least 80% and up to 100% of its net assets in (a) equity securities of U.S. Banks, such as publicly traded common, preferred and convertible preferred stocks; and (b) other U.S. Banks focused equity-related investments such as American depositary receipts, European depositary receipts, global depositary receipts and ETFs; (ii) may invest up to 20% of its net assets in equity securities of other U.S. and foreign financial services companies and/or in cash, short term securities and money markets instruments such as bank deposits, certificates of deposits, discount notes, treasury and agency debt, or collateralised and/or securitised products (such as asset backed commercial paper); and (iii) may invest up to 5% of its net assets in equity securities of companies outside the financial services sector. Due to the nature of the U.S. Banks equity securities markets, it is expected that under normal market conditions, investment in equities of small- and mid-capitalisation companies would typically comprise between 30% and 75% of the U.S. Bank Equity Fund’s net assets.
Greater Bay Area Growth and Income Fund
The investment objective of the Greater Bay Area Growth and Income Fund is to achieve capital growth and income generation by investing primarily in a diversified portfolio of equity and equity-related securities and fixed income securities of issuers which are connected to the region comprising Hong Kong, Macau and the Guangdong Province of China (“Greater Bay Area”). The Greater Bay Area Growth and Income Fund will invest at least 70% of its net assets in equity and equity-related securities (which are listed on any stock exchange) and fixed income securities of governments or corporate issuers established and/or with substantial business interests in the Greater Bay Area. Equity and equity-related securities include common stocks, preferred stocks, depositary receipts and real estate investment trusts.
(a) Market risk
Market risk is the risk that changes in market variables, such as in interest rates, equity prices, and foreign currency rates will affect the fair value or future cash flows of financial instruments of the Segregated Portfolios of the Company. The market risk arising from changes in foreign currency rates is discussed in a separate section. The primary market variable to which each portfolio is exposed is the benchmark index for that portfolio. The Investment Manager manages market risk relative to that benchmark by closely monitoring all portfolio holdings of each Segregated Portfolio of the Company and attempting to maintain a high degree of diversification.
China A Fund
The Investment Manager of the China A Fund monitors its Tracking Error and Beta on an ex–post (realized) and ex–ante basis. Tracking Error is a measure of how closely a portfolio follows the index to which it is benchmarked. Beta is a number that describes the relation of portfolio returns with those of the benchmark index returns. The Investment Manager uses the Shanghai Shenzhen CSI 300 Index (“CSI 300”) as its Benchmark for both Tracking Error and Beta. As at 30 June 2021, the portfolio of the China A Fund had an ex–post Tracking Error of 7.38% (30 June 2020: 9.66%) and an ex–post Beta of 1.09 (30 June 2020: 1.03).
As at 30 June 2021, it is estimated using an industry standard risk model with ex–post Beta that had the CSI 300 increased by 5% with all other variables held constant, net assets attributable to holders of redeemable participating shares and profit would have increased by USD 2,450,455 (30 June 2020: USD 2,087,679).
Notes to Financial Statements
For the year ended 30 June 2021
68
13. Financial risk and management objectives and policies (continued)
(a) Market risk (continued)
Bond Fund
The Bond Fund is exposed to market risk from changes in interest rates and foreign currency rates. The Bond Fund does not have direct market risk exposure from changes in equity prices. The market risk arising from changes in foreign currency rates is discussed in a separate section.
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments. The majority of the direct interest rate exposure of the Bond Fund arises from investments in debt securities denominated in RMB. As at 30 June 2021, most of the investments of the Bond Fund carry fixed interest rates and have an average maturity of 8.00 years (30 June 2020: 5.16 years).
The following table analyses the interest rate exposure of the Bond Fund, with assets and liabilities shown at their carrying value and categorized by the earlier of contractual re–pricing or maturity dates:
As at 30 June 2021Less than
1 year1 to 5 years
5 to 10 years
Over 10 years
Non–interest bearing Total
USD USD USD USD USD USDFinancial assets at fair value through profit or loss – 13,996,992 22,765,195 5,100,230 904,075 42,766,492 Cash and cash equivalent 228,305 – – – – 228,305 Other receivables and prepayments – – – – 594,769 594,769 Due from broker – – – – 161,620 161,620 Financial liabilities at fair value through profit or
loss – – – – (1,071,977) (1,071,977)
Accounts payable and accrued expenses – – – – (748,228) (748,228)Payable on redemptions – – – – (58,494) (58,494)
228,305 13,996,992 22,765,195 5,100,230 (218,235) 41,872,487
As at 30 June 2020Less than
1 year1 to 5 years
5 to 10 years
Over 10 years
Non–interest bearing Total
USD USD USD USD USD USDFinancial assets at fair value through profit or loss – 11,804,997 18,038,401 – – 29,843,398 Cash and cash equivalent 133,007 – – – – 133,007 Other receivables and prepayments – – – – 398,794 398,794 Accounts payable and accrued expenses – – – – (687,433) (687,433)Payable on redemptions – – – – (213,924) (213,924)
133,007 11,804,997 18,038,401 – (502,563) 29,473,842
As at 30 June 2021, an increase of the interest rate on RMB–denominated assets by 100 bps, with all other variables held constant, would have resulted to a decrease in net assets attributable to holders of Redeemable Participating Shares of USD 2,634,653 (30 June 2020: USD 1,444,361). A decrease of the interest rates on RMB denominated assets by 100 bps would have an equal but opposite effect. This arises substantially from the increase in the fair value of fixed interest securities.
Asia Pacific Income and Growth Fund
The Asia Pacific Income and Growth Fund is exposed to market risk from changes in interest rates, foreign currency rates and equity prices. The market risk arising from changes in foreign currency rates is discussed in a separate section.
Notes to Financial Statements
For the year ended 30 June 2021
69
13. Financial risk and management objectives and policies (continued)
(a) Market risk (continued)
Asia Pacific Income and Growth Fund (Equity securities)
Regarding the market risk from changes in equity prices, the Investment Manager of the Asia Pacific Income and Growth Fund monitors its Tracking Error and Beta on an ex–post (realized) and ex–ante basis. Tracking Error is a measure of how closely a portfolio follows the index to which it is benchmarked. Beta is a number that describes the relation of portfolio returns with those of the benchmark index returns. The Investment Manager uses the MSCI AC Asia Pacific ex Japan index (“MSCI AC Asia Pacific ex Japan”) as its Benchmark for both Tracking Error and Beta. As at 30 June 2021, the portfolio of the Asia Pacific Income and Growth Fund had an ex–post Tracking Error of 2.77% (30 June 2020: 2.98%) and an ex–post Beta of 0.83 (30 June 2020: 1.05).
As at 30 June 2021, it is estimated with an industry standard risk model with ex–post beta that had the MSCI AC Asia Pacific ex Japan increased by 5% with all other variables held constant, net assets attributable to holders of redeemable participating shares and profit would have increased by USD 468,959 (30 June 2020: USD 474,253).
Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent.
Asia Pacific Income and Growth Fund (Debt securities)
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments. The majority of the direct interest rate exposure of the Asia Pacific Income and Growth Fund arises from investments in debt securities denominated in USD. As at 30 June 2021, most of the investments of the Asia Pacific Income and Growth Fund carry fixed interest rates and have an average maturity of 3.85 years (30 June 2020: 3.59 years).
The following table analyses the interest rate exposure of the Asia Pacific Income and Growth Fund, with assets and liabilities shown at their carrying value and categorized by the earlier of contractual re–pricing or maturity dates:
Notes to Financial Statements
For the year ended 30 June 2021
70
13. Financial risk and management objectives and policies (continued)
(a) Market risk (continued)
Asia Pacific Income and Growth Fund (Debt securities) (continued)
As at 30 June 2021Less than
1 year1 to 5 years
5 to 10 years
Over 10 years
Non–interest bearing Total
USD USD USD USD USD USDFinancial assets at fair value through profit or loss 459,378 2,362,774 2,607,148 1,241,741 11,430,381 18,101,422 Cash and cash equivalent 66,314 – – – – 66,314 Receivable on subscriptions – – – – 24,260 24,260 Other receivables and prepayments – – – – 255,352 255,352 Due from broker – – – – 406,415 406,415 Financial liabilities at fair value through profit or
loss – – – – (28,908) (28,908)
Accounts payable and accrued expenses – – – – (117,959) (117,959)Payable on redemptions – – – – (178,306) (178,306)Due to broker – – – – (200,000) (200,000)
525,692 2,362,774 2,607,148 1,241,741 11,591,235 18,328,590
As at 30 June 2020Less than
1 year1 to 5 years
5 to 10 years
Over 10 years
Non–interest bearing Total
USD USD USD USD USD USDFinancial assets at fair value through profit or loss 201,038 2,921,527 1,821,499 1,284,936 9,033,396 15,262,396 Cash and cash equivalent 653,268 – – – – 653,268 Receivable on subscriptions – – – – 6,131 6,131 Other receivables and prepayments – – – – 185,250 185,250 Due from broker – – – – 4,249 4,249 Financial liabilities at fair value through profit or loss (6,550) – – – – (6,550)Accounts payable and accrued expenses – – – – (47,325) (47,325)Payable on redemptions – – – – (51,269) (51,269)
847,756 2,921,527 1,821,499 1,284,936 9,130,432 16,006,150
As at 30 June 2021, an increase of the interest rate on USD–denominated assets by 100 bps, with all other variables held constant, would have resulted to a decrease in net assets attributable to holders of Redeemable Participating Shares of USD 229,370 (30 June 2020: USD 205,314). A decrease of the interest rates on USD denominated assets by 100 bps would have an equal but opposite effect. This arises substantially from the increase in the fair value of fixed interest securities.
U.S. Bank Equity Fund
The Investment Manager of the U.S. Bank Equity Fund monitors its Tracking Error and Beta on an ex–post (realized) and ex–ante basis. Tracking Error is a measure of how closely a portfolio follows the index to which it is benchmarked. Beta is a number that describes the relation of portfolio returns with those of the benchmark index returns. The Investment Manager uses the Standard & Poor’s Composite 1500 Banks index (“S&P Composite 1500 Banks”) as its Benchmark for both Tracking Error and Beta. As at 30 June 2021, the portfolio of the U.S. Bank Equity Fund had an ex–post Tracking Error of 10.51% (30 June 2020: 4.20%) and an ex–post Beta of 0.97 (30 June 2020: 1.02).
Notes to Financial Statements
For the year ended 30 June 2021
71
13. Financial risk and management objectives and policies (continued)
(a) Market risk (continued)
U.S. Bank Equity Fund (continued)
As at 30 June 2021, it is estimated using an industry standard risk model with ex–post Beta that had the S&P Composite 1500 Banks increased by 5% with all other variables held constant, net assets attributable to holders of redeemable participating shares and profit would have increased by USD 1,397,443 (30 June 2020: USD 936,309).
Greater Bay Area Growth and Income Fund (Equity securities)
Regarding the market risk from changes in equity prices, the Investment Manager of the Greater Bay Area Growth and Income Fund monitors its Tracking Error and Beta on an ex–post (realized) and ex–ante basis. Tracking Error is a measure of how closely a portfolio follows the index to which it is benchmarked. Beta is a number that describes the relation of portfolio returns with those of the benchmark index returns. The Investment Manager uses 50% Hang Seng index and 50% CSI 300 index as its Benchmark for both Tracking Error and Beta. As at 30 June 2021, the portfolio of the Greater Bay Area Growth and Income Fund had an ex–post Tracking Error of 5.66% (30 June 2020: 4.95%) and an ex–post Beta of 0.94 (30 June 2020: 0.91).
As at 30 June 2021, it is estimated using an industry standard risk model with ex–post Beta that had the Hang Seng index and the CSI 300 index increased by 5% with all other variables held constant, net assets attributable to holders of redeemable participating shares and profit would have increased by USD 1,048,042 (30 June 2020: USD 295,304).
Greater Bay Area Growth and Income Fund (Debt securities)
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments. The majority of the direct interest rate exposure of the Greater Bay Area Growth and Income Fund arises from investments in debt securities denominated in USD. As at 30 June 2021, most of the investments of the Greater Bay Area Growth and Income Fund carry fixed interest rates and have an average maturity of 3.85 years (30 June 2020: 4.59 years).
The following table analyses the interest rate exposure of the Greater Bay Area Growth and Income Fund, with assets and liabilities shown at their carrying value and categorized by the earlier of contractual re–pricing or maturity dates:
As at 30 June 2021Less than
1 year1 to 5 years
5 to 10 years
Over 10 years
Non–interest bearing Total
USD USD USD USD USD USDFinancial assets at fair value through profit or loss 201,459 3,165,705 2,708,608 1,901,578 22,298,763 30,276,113 Cash and cash equivalent 1,378,491 – – – – 1,378,491 Receivable on subscriptions – – – – 51,218 51,218 Other receivables and prepayments – – – – 267,907 267,907 Due from broker – – – – 210,299 210,299 Financial liabilities at fair value through profit or
loss – – – – (38,231) (38,231)
Accounts payable and accrued expenses – – – – (62,250) (62,250)Payable on redemptions – – – – (574,521) (574,521)Due to broker – – – – (200,000) (200,000)
1,579,950 3,165,705 2,708,608 1,901,578 21,953,185 31,309,026
Notes to Financial Statements
For the year ended 30 June 2021
72
13. Financial risk and management objectives and policies (continued)
(a) Market risk (continued)
Greater Bay Area Growth and Income Fund (Debt securities) (continued)
As at 30 June 2020Less than
1 year1 to 5 years
5 to 10 years
Over 10 years
Non–interest bearing Total
USD USD USD USD USD USDFinancial assets at fair value through profit or loss 442,195 1,952,208 1,338,910 1,028,170 6,490,265 11,251,748 Cash and cash equivalent 345,819 – – – – 345,819 Receivable on subscriptions – – – – 37,140 37,140 Other receivables and prepayments – – – – 139,459 139,459 Due from broker – – – – 50,240 50,240 Financial liabilities at fair value through profit or
loss (1,314) – – – – (1,314)
Accounts payable and accrued expenses – – – – (70,429) (70,429)Payable on redemptions – – – – (34,598) (34,598)Due to broker – – – – (95,090) (95,090)
786,700 1,952,208 1,338,910 1,028,170 6,516,987 11,622,975
As at 30 June 2021, an increase of the interest rate on USD–denominated assets by 100 bps, with all other variables held constant, would have resulted to a decrease in net assets attributable to holders of Redeemable Participating Shares of USD 305,197 (30 June 2020: USD 183,260). A decrease of the interest rates on USD denominated assets by 100 bps would have an equal but opposite effect. This arises substantially from the increase in the fair value of fixed interest securities.
(b) Credit risk
Credit risk is the risk that a counterparty to a financial instrument will cause a financial loss for a Segregated Portfolio by failing to discharge an obligation. The Investment Manager of the Segregated Portfolios has a process in place to confirm that counterparties to financial instruments, including brokers, are reputable. The creditworthiness of counterparties is reviewed on an annual basis.
None of the Segregated Portfolio hold financial assets which are past due or which are considered to be impaired.
The maximum credit risk exposure of the Company and of each Segregated Portfolios as at 30 June 2021 and 30 June 2020 is represented by the respective carrying amounts of the relevant financial assets in the statement of financial position.
The cash and cash equivalents of the Company and each of its Segregated Portfolios are held mainly with Citibank Europe plc, Luxembourg Branch and Citibank N.A. (Hong Kong Branch), both wholly owned indirect subsidiaries of Citigroup Inc. which had credit rating of A3 from Moody’s and BBB+ from Standard & Poor’s for long term and a rating of P-2 and A-2 respectively, for short term debt from those agencies.
China A Fund and U.S. Bank Equity Fund
The China A Fund and the U.S. Bank Equity Fund do not have investment in debt securities which exposes them to credit risk.
The cash and cash equivalents of the China A Fund and the U.S. Bank Equity Fund are held mainly with Citibank Europe plc, Luxembourg Branch.
Notes to Financial Statements
For the year ended 30 June 2021
73
13. Financial risk and management objectives and policies (continued)
(b) Credit risk (continued)
Bond Fund
The investment strategy of the Bond Fund requires that at least 85% of its investment to be in bonds issued by the Mainland China Government or by international corporations in Mainland China that carry a rating of at least BBB-/Baa3. The Bond Fund is exposed to credit risk arising from its investments in debt securities. 68.12% of the portfolio of the Bond Fund comprise of sovereign debt issued by the Mainland China Government, which are rated A by S&P, Moody’s and Fitch as at 30 June 2021 (30 June 2020: 50.20%).
As at 30 June 2021 and 30 June 2020, the Bond Fund invested in debt securities with the following credit quality, as per S&P, Moody’s and Fitch:
Credit Rating – Bond Fund 30 June 2021 30 June 2020USD USD
A 33,220,667 23,634,058
BBB 2,296,520 1,432,361
BB – 316,432
Unrated 6,345,230 4,460,547
Total Debt Security 41,862,417 29,843,398
Due to the investment objectives and strategy of the Bond Fund, it has concentration of credit risk by geographical distribution, with 98.86% of its investment in debt securities issued by an issuer domiciled in Mainland China as at 30 June 2021 (30 June 2020: 98.94%).
The following table analyses the concentration of credit risk of the investments in debt securities of Bond Fund by industrial distribution:
Concentration of credit risk – Bond Fund 30 June 2021 30 June 2020USD USD
Government 28,515,110 14,982,372
Corporate 13,347,307 14,861,026
Total Debt Security 41,862,417 29,843,398
Except for debt securities issued by the Mainland China Government, which accounted for 68.10% of the net assets attributable to holders of Redeemable Participating Shares of the Bond Fund as at 30 June 2021 (30 June 2020: 50.83%), there were no significant concentrations in the portfolio of credit risk to any individual issuer or group of issuers.
Asia Pacific Income and Growth Fund (Debt securities)
The Asia Pacific Income and Growth Fund is exposed to credit risk arising from its investments in debt securities. As at 30 June 2021 and 30 June 2020, the Asia Pacific Income and Growth Fund invested in debt securities with the following credit quality, as per S&P, Moody’s and Fitch:
Notes to Financial Statements
For the year ended 30 June 2021
74
13. Financial risk and management objectives and policies (continued)
(b) Credit risk (continued)
Asia Pacific Income and Growth Fund (Debt securities) (continued)
Credit Rating – Asia Pacific Income and Growth Fund 30 June 2021 30 June 2020USD USD
AAA 166,258 164,239
AA 182,632 169,660
A 1,019,398 865,231
BBB 1,777,853 2,008,712
BB 1,991,455 1,288,388
B 399,593 808,318
Unrated 1,133,852 924,452
Total Debt Security 6,671,041 6,229,000
The following table analyses the concentration of credit risk of the investments in debt securities of Asia Pacific Income and Growth Fund by industrial distribution:
Concentration of credit risk – Asia Pacific Income and Growth Fund 30 June 2021 30 June 2020USD USD
Government 604,481 601,705
Corporate 6,066,560 5,627,295
Total Debt Security 6,671,041 6,229,000
As at 30 June 2021 and 30 June 2020, there were no significant concentrations in the portfolio of credit risk to any individual issuer or group of issuers.
Notes to Financial Statements
For the year ended 30 June 2021
75
13. Financial risk and management objectives and policies (continued)
(b) Credit risk (continued)
Greater Bay Area Growth and Income Fund (Debt securities)
The Greater Bay Area Growth and Income Fund is exposed to credit risk arising from its investments in debt securities. As at 30 June 2021 and 30 June 2020, the Greater Bay Area Growth and Income Fund invested in debt securities with the following credit quality, as per S&P, Moody’s and Fitch:
Credit Rating –Greater Bay Area Growth and Income Fund 30 June 2021 30 June 2020USD USD
AA 200,194 –
A 1,232,995 1,532,471
BBB 2,146,485 844,308
BB 2,335,589 1,119,804
B 965,561 600,930
Unrated 1,096,526 663,970
Total Debt Security 7,977,350 4,761,483
Due to the investment objectives and strategy of the Greater Bay Area Growth and Income Fund, it has concentration of credit risk by geographical distribution, with 22.01% of its investment in debt securities issued by an issuer domiciled in Greater Bay Area as at 30 June 2021 (30 June 2020: 18.31%).
The following table analyses the concentration of credit risk of the investments in debt securities of the Greater Bay Area Growth and Income Fund by industrial distribution:
Concentration of credit risk –Greater Bay Area Growth and Income Fund 30 June 2021 30 June 2020USD USD
Corporate 7,977,350 4,761,483
Total Debt Security 7,977,350 4,761,483
Except for debt securities issued by an issuer domiciled in Greater Bay Area, which accounted for 5.61% of the net assets attributable to holders of Redeemable Participating Shares of the Greater Bay Area Growth and Income Fund as at 30 June 2021 (30 June 2020: 7.50%), there were no significant concentrations in the portfolio of credit risk to any individual issuer or group of issuers.
Notes to Financial Statements
For the year ended 30 June 2021
76
13. Financial risk and management objectives and policies (continued)
(c) Liquidity risk
Liquidity risk is defined as the risk that the Segregated Portfolios will encounter difficulties in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.
Each Segregated Portfolio is exposed to the liquidity risk of meeting shareholder redemptions at each dealing date.
With a view of protecting the interest of shareholders, the Company is not bound to redeem more than 10% in aggregate of the total number of participating shares in issue of each share class of each of the Segregated Portfolios.
China A Fund
The China A Fund monitors the liquidity of its investments in equity securities through the number of Days Trade for individual equity instruments. Days Trade represents the number of days it would require to sell the entire position in an equity instrument, based on historical trading volumes and market liquidity of the equity instrument. Calculations are based on the assumption of trading 10% of average daily volume of a security in order not to impact the market price. The following table below lists the liquidity of the portfolio of the China A Fund as at 30 June 2021 and 30 June 2020:
Days Trade% of total portfolio of investments
30 June 2021 30 June 20201 Day 98.45% 99.57%2 Days 98.45% 99.57%5 Days 98.45% 99.57%
The cash and cash equivalents of the China A Fund as at 30 June 2021 constituted 0.42% of the fund (30 June 2020: 0.43%).
The maturity profile of the China A Fund’s financial liabilities as at the balance sheet date, based on the contracted undiscounted payments, was as follows:
As at 30 June 2021 On demandLess than
1 year 1 to 5 years Over 5 years TotalUSD USD USD USD USD
Accounts payable and accrued expenses – 191,873 – – 191,873
Payable on redemptions – 1,031,505 – – 1,031,505
Redeemable Participating Shares 44,106,113 – – – 44,106,113
As at 30 June 2020 On demandLess than
1 year 1 to 5 years Over 5 years TotalUSD USD USD USD USD
Accounts payable and accrued expenses – 170,267 – – 170,267
Payable on redemptions – 324,717 – – 324,717
Redeemable Participating Shares 40,154,401 – – – 40,154,401
Notes to Financial Statements
For the year ended 30 June 2021
77
13. Financial risk and management objectives and policies (continued)
(c) Liquidity risk (continued)
Bond Fund
Due to legal restrictions, the Bond Fund may only invest in bonds listed on an exchange in Mainland China. There may not be a liquid or active market for the trading of bonds in the exchanges in Mainland China. The Investment Manager is aware of the liquidity risk associated with the investments of the Bond Fund.
The maturity profile of the Bond Fund’s financial liabilities as at the balance sheet date, based on the contracted undiscounted payments, was as follows:
As at 30 June 2021 On demandLess than
1 year 1 to 5 years Over 5 years TotalUSD USD USD USD USD
Financial liabilities at fair value through profit or loss – 1,071,977 – – 1,071,977
Accounts payable and accrued expenses – 748,228 – – 748,228
Payable on redemptions – 58,494 – – 58,494
Redeemable Participating Shares 41,872,487 – – – 41,872,487
As at 30 June 2020 On demandLess than
1 year 1 to 5 years Over 5 years TotalUSD USD USD USD USD
Accounts payable and accrued expenses – 687,433 – – 687,433
Payable on redemptions – 213,924 – – 213,924
Redeemable Participating Shares 29,473,842 – – – 29,473,842
Asia Pacific Income and Growth Fund
The Asia Pacific Income and Growth Fund monitors the liquidity of its investments in equity securities through the number of Days Trade for individual equity instruments. Days Trade represents the number of days it would require to sell the entire position in an equity instrument, based on historical trading volumes and market liquidity of the equity instrument. Calculations are based on the assumption of trading 10% of average daily volume of a security in order not to impact the market price. The following table below lists the liquidity of the portfolio of the Asia Pacific Income and Growth Fund as at 30 June 2021 and 30 June 2020.
The cash and cash equivalents of the Asia Pacific Income and Growth Fund as at 30 June 2021 constituted 0.36% of the fund (30 June 2020: 4.08%).
Days Trade% of portfolio of investments
30 June 2021 30 June 20201 Day 98.16% 96.92%2 Days 98.47% 96.96%5 Days 99.40% 97.06%
The maturity profile of the Asia Pacific Income and Growth Fund’s financial liabilities as at the balance sheet date, based on the contracted undiscounted payments, was as follows:
Notes to Financial Statements
For the year ended 30 June 2021
78
13. Financial risk and management objectives and policies (continued)
(c) Liquidity risk (continued)
Asia Pacific Income and Growth Fund (continued)
As at 30 June 2021 On demand Less than 1 year 1 to 5 years Over 5 years TotalUSD USD USD USD USD
Financial liabilities at fair value through profit or loss – 28,908 – – 28,908
Accounts payable and accrued expenses – 117,959 – – 117,959
Payable on redemptions – 178,306 – – 178,306
Due to broker – 200,000 – – 200,000
Redeemable Participating Shares 18,328,590 – – – 18,328,590
As at 30 June 2020 On demand Less than 1 year 1 to 5 years Over 5 years TotalUSD USD USD USD USD
Financial liabilities at fair value through profit or loss – 6,550 – – 6,550
Accounts payable and accrued expenses – 47,325 – – 47,325
Payable on redemptions – 51,269 – – 51,269
Redeemable Participating Shares 16,006,150 – – – 16,006,150
U.S. Bank Equity Fund
The U.S. Bank Equity Fund monitors the liquidity of its investments in equity securities through the number of Days Trade for individual equity instruments. Days Trade represents the number of days it would require to sell the entire position in an equity instrument, based on historical trading volumes and market liquidity of the equity instrument. Calculations are based on the assumption of trading 10% of average daily volume of a security in order not to impact the market price. The following table below lists the liquidity of the portfolio of the U.S. Bank Equity Fund as at 30 June 2021 and 30 June 2020.
The cash and cash equivalents of the U.S. Bank Equity Fund as at 30 June 2021 constituted 2.25% of the fund (30 June 2020: 2.33%).
Days Trade% of portfolio of investments
30 June 2021 30 June 20201 Day 98.21% 94.56%2 Days 98.46% 95.22%5 Days 99.22% 97.19%
The maturity profile of the U.S Bank Equity Fund’s financial liabilities as at the balance sheet date, based on the contracted undiscounted payments, was as follows:
As at 30 June 2021 On demand Less than 1 year 1 to 5 years Over 5 years TotalUSD USD USD USD USD
Accounts payable and accrued expenses – 77,279 – – 77,279
Payable on redemptions – 928,090 – – 928,090
Due to broker – 13,435 – – 13,435
Redeemable Participating Shares 29,062,738 – – – 29,062,738
Notes to Financial Statements
For the year ended 30 June 2021
79
13. Financial risk and management objectives and policies (continued)
(c) Liquidity risk (continued)
U.S. Bank Equity Fund (continued)
As at 30 June 2020 On demand Less than 1 year 1 to 5 years Over 5 years TotalUSD USD USD USD USD
Accounts payable and accrued expenses – 58,902 – – 58,902
Payable on redemptions – 175,639 – – 175,639
Redeemable Participating Shares 19,201,712 – – – 19,201,712
Greater Bay Area Growth and Income Fund
The Greater Bay Area Growth and Income Fund monitors the liquidity of its investments in equity securities through the number of Days Trade for individual equity instruments. Days Trade represents the number of days it would require to sell the entire position in an equity instrument, based on historical trading volumes and market liquidity of the equity instrument. Calculations are based on the assumption of trading 10% of average daily volume of a security in order not to impact the market price. The following table below lists the liquidity of the portfolio of the Greater Bay Area Growth and Income Fund as at 30 June 2021 and 30 June 2020.
The cash and cash equivalents of the Greater Bay Area Growth and Income Fund as at 30 June 2021 constituted 4.40% of the fund (30 June 2020: 2.98%)
Days Trade% of portfolio of investments
30 June 2021 30 June 20201 Day 97.23% 94.72%2 Days 97.35% 95.01%5 Days 97.69% 95.86%
The Greater Bay Area Growth and Income Fund may invest in RMB denominated instruments and in Mainland China A-Share securities which may not be listed on an exchange or for which trading may not be conducted on a regular basis. There is also no guarantee that market making arrangements will be in place to make a market and quote a price available for this type of instruments. In the absence of an active secondary market, the Greater Bay Area Growth and Income Fund may need to hold some instruments until their maturity date. The investment Manager is aware of the liquidity risk associated with the investments of the Greater Bay Area Growth and Income Fund.
The maturity profile of Greater Bay Area Growth and Income Fund’s financial liabilities as at the balance sheet date, based on the contracted undiscounted payments, was as follows:
As at 30 June 2021 On demandLess than
1 year 1 to 5 years Over 5 years TotalUSD USD USD USD USD
Financial liabilities at fair value through profit or loss – 38,231 – – 38,231
Accounts payable and accrued expenses – 62,250 – – 62,250
Payable on redemptions – 574,521 – – 574,521
Due to broker – 200,000 – – 200,000
Redeemable Participating Shares 31,309,026 – – – 31,309,026
Notes to Financial Statements
For the year ended 30 June 2021
80
13. Financial risk and management objectives and policies (continued)
(c) Liquidity risk (continued)
Greater Bay Area Growth and Income Fund (continued)
As at 30 June 2020 On demandLess than
1 year 1 to 5 years Over 5 years TotalUSD USD USD USD USD
Financial liabilities at fair value through profit or loss – 1,314 – – 1,314
Accounts payable and accrued expenses – 70,429 – – 70,429
Payable on redemptions – 34,598 – – 34,598
Due to broker – 95,090 – – 95,090
Redeemable Participating Shares 11,622,975 – – – 11,622,975
(d) Currency risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.
The China A Fund, the Bond Fund and the Greater Bay Area Growth and Income Fund use a USD QFII Quota to invest primarily in the equity and debt instruments issued and listed in Mainland China. The functional currency of these Segregated Portfolios is the USD, while the investments of each of these both Segregated Portfolios are primarily denominated in other currencies, primarily RMB and HKD. The RMB is not, as yet, a freely convertible currency and is subject to exchange controls and restrictions. Consequently, the Company is exposed to the risk that the exchange rate of USD relative to other foreign currencies may change in a manner that has an adverse effect on the fair value or future cash flows of financial assets and liabilities denominated in currencies other than the USD.
The functional currency of the Asia Pacific Income and Growth Fund is the USD, while the investments of this Segregated Portfolio are primarily denominated in other currencies than USD. Consequently, the Company is exposed to the risk that the exchange rate of USD relative to other foreign currencies may change in a manner that has an adverse effect on the fair value or future cash flows of financial assets and liabilities denominated in currencies other than the USD.
The functional currency of U.S. Bank Equity Fund is USD and it invests primarily in USD denominated equity securities. Any devaluation of the USD could affect the value of the U.S. Bank Equity Fund’s investments. Investors whose investment in the U.S. Bank Equity Fund is via a class that is not denominated in USD may be affected by changes in the exchange rates of the USD.
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Notes to Financial Statements
For the year ended 30 June 2021
82
14. Derivatives contracts
Forwards
Forward contracts are contractual agreements to buy or sell a specified financial instrument at a specific price and date in the future. Forwards are customized contracts transacted in the OTC market. The Company has credit exposure to the counterparties of forward contracts.
The following tables set out the fair value and the notional amount of forward contracts held by the Company as at 30 June 2021 and 30 June 2020:
As at 30 June 2021
Purchased Amount Currency Sold Amount Currency Maturity Date Counterparty
Financial assets/(liabilities) at fair
value through profit or loss Notional
USD USDBond Fund
35,785,000 RMB 5,000,000 USD 09-Jul-21 Australia New Zealand Bank 536,154 5,538,051
34,697,500 RMB 5,000,000 USD 09-Jul-21 Australia New Zealand Bank 367,912 5,369,750
10,000,000 USD 71,565,260 RMB 09-Jul-21 Australia New Zealand Bank (1,071,977) 11,075,368
60,000 USD 387,641 RMB 02-Jul-21 Australia New Zealand Bank 9 59,991
(167,902) 22,043,160
Asia Pacific Income and Growth Fund1,862,263 AUD 1,413,025 USD 30-Jul-21 Citibank London (15,639) 1,397,163
15,497 AUD 11,756 USD 30-Jul-21 Citibank London (127) 11,627
21,213 CAD 17,249 USD 30-Jul-21 Citibank London (103) 17,145
2,539,043 CAD 2,065,161 USD 30-Jul-21 Citibank London (13,028) 2,052,166
19,591 USD 152,230 HKD 06-Jul-21 Citibank London (11) 19,601
(28,908) 3,497,702
Greater Bay Area Growth and Income Fund4,516,284 AUD 3,426,812 USD 30-Jul-21 Citibank London (37,928) 3,388,342
36,221 AUD 27,476 USD 30-Jul-21 Citibank London (297) 27,175
13,299 USD 17,731 AUD 30-Jul-21 Citibank London (6) 13,303
(38,231) 3,428,820
Notes to Financial Statements
For the year ended 30 June 2021
83
14. Derivatives contracts (continued)
Forwards (continued)
As at 30 June 2020
Purchased Amount Currency Sold Amount Currency Maturity Date Counterparty
Financial assets/(liabilities) at fair
value through profit or loss Notional
USD USDAsia Pacific Income and Growth Fund1,643,211 AUD 1,132,160 USD 31-Jul-20 Citibank London (3,582) 1,128,393
2,118,075 CAD 1,552,370 USD 31-Jul-20 Citibank London (2,968) 1,549,264
(6,550) 2,677,657
Greater Bay Area Growth and Income Fund15,263 AUD 10,497 USD 31-Jul-20 Citibank London (14) 10,481
556,192 AUD 383,212 USD 31-Jul-20 Citibank London (1,212) 381,937
52,228 AUD 35,807 USD 31-Jul-20 Citibank London 64 35,865
244,094 HKD 31,514 USD 02-Jul-20 Citibank London (19) 31,494
492,888 HKD 63,636 USD 03-Jul-20 Citibank London (41) 63,595
50,211 USD 389,378 HKD 03-Jul-20 Citibank London (28) 50,240
(1,250) 573,612
Man
ulife
Adv
ance
d Fu
nd S
PCN
otes
to F
inan
cial
Sta
tem
ents
For t
he y
ear e
nded
30
June
202
1
84
15.
Rec
onci
liatio
n of
Net
Ass
ets
and
Net
Ass
et V
alue
per
Sha
re
The
effe
ct o
f adj
ustm
ent t
o ot
her
rece
ivab
les
and
prep
aym
ents
afte
r ex
pens
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prev
ious
ly c
apita
lized
form
atio
n ex
pens
es a
nd o
ther
adj
ustm
ents
to th
e pu
blis
hed
NAV
is s
et o
ut in
the
follo
win
g ta
bles
:
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S.
Bank
Equit
y Fun
dGr
eater
Bay
Area
Gro
wth a
nd
Incom
e Fun
dCo
mbine
d30
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
20US
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DPu
blish
ed N
AV 44
,349,6
65
40,16
0,328
41
,872,4
87
29,47
3,842
18
,328,6
54
16,03
2,374
29
,160,8
10
19,06
6,960
31
,334,0
46
11,66
1,988
16
5,045
,662
116,3
95,49
2 Ad
justm
ent fo
r form
ation
expe
nses
– –
– –
– –
65,46
4 37
,464
(25,0
20)
(39,0
13)
40,44
4 (1
,549)
Adjus
tmen
t for s
ubsc
riptio
ns/re
demp
tion
with
trade
date
at ye
ar-en
d (2
43,55
2) (5
,927)
– –
(64)
(26,2
24)
(163
,536)
97,28
8 –
– (4
07,15
2) 65
,137
NAV a
s per
finan
cial re
porti
ng 44
,106,1
13
40,15
4,401
41
,872,4
87
29,47
3,842
18
,328,5
90
16,00
6,150
29
,062,7
38
19,20
1,712
31
,309,0
26
11,62
2,975
16
4,678
,954
116,4
59,08
0 Th
e im
pact
on
the
NAV
per
sha
re a
t 30
June
202
1 an
d 30
Jun
e 20
20 is
as
follo
ws:
Net a
sset
value
per S
hare
in ac
corda
nce w
ith IF
RSCh
ina A
Fund
Bond
Fund
Asia
Pacifi
c Inc
ome a
nd
Grow
th Fu
ndU.
S. Ba
nk Eq
uity F
und
Grea
ter B
ay A
rea G
rowt
h and
Inc
ome F
und
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
Clas
s AA
(USD
)Pu
blish
ed N
AV pe
r Sha
re16
.2354
12.15
1913
.5894
12.30
72–
– –
– 11
.9588
10.37
11Ad
justm
ents
– –
– –
– –
– –
(0.00
96)
(0.03
47)
NAV p
er sh
are as
per fi
nanc
ial re
porti
ng16
.2354
12.15
1913
.5894
12.30
72–
– –
– 11
.9492
10.33
64Cl
ass A
A (U
SD) In
cPu
blish
ed N
AV pe
r Sha
re–
– –
– 9.6
274
8.594
712
.5656
7.40
10
10.85
919.7
227
Adjus
tmen
ts–
– –
– –
– 0.0
284
0.014
4 (0.
0087
)(0.
0326
)NA
V per
share
as pe
r fina
ncial
repo
rting
– –
– –
9.627
48.5
947
12.59
40
7.41
54
10.85
049.6
901
Clas
s I (U
SD)
Publi
shed
NAV
per S
hare
– 14
.0529
13.96
8812
.6192
– –
– –
– –
Adjus
tmen
ts–
– –
– –
– –
– –
– NA
V per
share
as pe
r fina
ncial
repo
rting
– 14
.0529
13.96
8812
.6192
– –
– –
– –
Man
ulife
Adv
ance
d Fu
nd S
PCN
otes
to F
inan
cial
Sta
tem
ents
For t
he y
ear e
nded
30
June
202
1
85
15.
Rec
onci
liatio
n of
Net
Ass
ets
and
Net
Ass
et V
alue
per
Sha
re (c
ontin
ued)
Net a
sset
value
per S
hare
in ac
corda
nce w
ith IF
RSCh
ina A
Fund
Bond
Fund
Asia
Pacifi
c Inc
ome a
nd
Grow
th Fu
ndU.
S. Ba
nk Eq
uity F
und
Grea
ter B
ay A
rea G
rowt
h and
Inc
ome F
und
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
Clas
s I3 (
USD)
Publi
shed
NAV
per S
hare
– –
11.93
2610
.6727
– –
– –
– –
Adjus
tmen
ts–
– –
– –
– –
– –
– NA
V per
share
as pe
r fina
ncial
repo
rting
– –
11.93
2610
.6727
– –
– –
– –
Clas
s AA
(AUD
) Inc H
edge
dPu
blish
ed N
AV pe
r Sha
re–
– –
– 9.1
807
8.27
77
– –
10.35
19 9.
3697
Ad
justm
ents
– –
– –
– –
– –
(0.00
83)
(0.03
14)
NAV p
er sh
are as
per fi
nanc
ial re
porti
ng–
– –
– 9.
1807
8.
2777
–
– 10
.3436
9.
3383
Cl
ass A
A (H
KD)
Publi
shed
NAV
per S
hare
– –
– –
– –
– –
92.58
50–
Adjus
tmen
ts–
– –
– –
– –
– (0
.0739
)–
NAV p
er sh
are as
per fi
nanc
ial re
porti
ng–
– –
– –
– –
– 92
.5111
– Cl
ass A
A (H
KD) In
cPu
blish
ed N
AV pe
r Sha
re–
– –
– 96
.4782
85.94
86
125.2
300
73.60
68
107.4
411
96.03
59
Adjus
tmen
ts–
– –
– –
– 0.
2811
0.1
444
(0.08
58)
(0.32
13)
NAV p
er sh
are as
per fi
nanc
ial re
porti
ng–
– –
– 96
.4782
85
.9486
12
5.511
1 73
.7512
10
7.355
3 95
.7146
Cl
ass A
A (C
AD) In
c Hed
ged
Publi
shed
NAV
per S
hare
– –
– –
9.089
6 8.
1686
–
– –
– Ad
justm
ents
– –
– –
– –
– –
– –
NAV p
er sh
are as
per fi
nanc
ial re
porti
ng–
– –
– 9.
0896
8.
1686
–
– –
–
Notes to Financial Statements
For the year ended 30 June 2021
86
16. Related party disclosures
The following is a summary of significant related party transactions entered into during the years between the Company and the Board of Directors, the General Adviser and Distributor, Investment Managers or any entities in which those parties or their Connected Persons have a material interest. Connected persons of the Investment Manager are those as defined in the Code on Unit Trust and Mutual Funds established by SFC. All such transactions were entered into in the ordinary course of business and under normal commercial terms.
For the years ended 30 June 2021 and 30 June 2020, the major related party to the Company is MIMHK in its capacities as the General Adviser and Distributor cum the Investment Manager.
The General Adviser and Distributor, any distributor, Investment Manager and investment adviser may be members of the Manulife Group.
(a) Subscription and redemption of units of the Segregated Portfolios
As at 30 June 2021 and 30 June 2020, no Director held share of the Company.
Investment transactions with the Investment Manager and its Connected Persons are set out below:
Number of shares
Opening Balance Subscription Redemption Balance as at
year end
2021China A FundClass AA (USD) 1,141,542 251,150 (314,971) 1,077,721
Bond FundClass AA (USD) 269,204 9,234 (86,375) 192,063
Asia Pacific Income and Growth FundClass AA (USD) Inc 135,628 100,893 (64,329) 172,192
U.S. Bank Equity FundClass AA (USD) Inc 407,992 1,273,329 (1,057,993) 623,328
2020China A FundClass AA (USD) 1,476,654 42,803 (377,915) 1,141,542
Bond FundClass AA (USD) 315,939 1,710 (48,445) 269,204
Asia Pacific Income and Growth FundClass AA (USD) Inc 148,767 74,534 (87,673) 135,628
U.S. Bank Equity FundClass AA (USD) Inc 455,844 395,732 (443,584) 407,992
Apart from the above, there were no other subscriptions and redemptions of Shares of the Segregated Portfolios by the Directors, the General Adviser and Distributor, the Investment Manager, or other Connected Persons during the years ended 30 June 2021 and 2020.
Notes to Financial Statements
For the year ended 30 June 2021
87
16. Related party disclosures (continued)
(b) Directors’ remuneration
The Directors are entitled to such remuneration (if any) as may be voted at the general meeting. Each Director may be paid reasonable travel, hotel and other out–of–pocket expenses reasonably and properly incurred in the performance of his/her duties. The Directors may by resolution approve additional remuneration to any Director for any services other than such Director’s ordinary routine work as a Director. Any fees that may be paid to a Director who is also counsel to the Company, or otherwise serves it in a professional capacity, shall be in addition to such Director’s remuneration as a Director.
Notwithstanding the above, there are no existing or proposed service contracts between any of the Directors and the Company. No Director received any remuneration from the Company during the year ended 30 June 2021 (2020: Nil).
Man
ulife
Adv
ance
d Fu
nd S
PCN
otes
to F
inan
cial
Sta
tem
ents
For t
he y
ear e
nded
30
June
202
1
88
(c)
Fees
cha
rged
by
the
Gen
eral
Adv
iser
and
Dis
trib
utor
cum
the
Inve
stm
ent M
anag
er
The
Gen
eral
Adv
iser
and
Dis
tribu
tor r
ecei
ved
man
agem
ent f
ees
(as
set o
ut in
Not
e 12
), ou
t of w
hich
the
amou
nts
due
to it
self
as th
e In
vest
men
t Man
ager
as
at b
alan
ce s
heet
dat
e ar
e se
t out
bel
ow:
China
A Fu
ndBo
nd Fu
ndAs
ia-Pa
cific I
ncom
e and
Gr
owth
Fund
U.S.
Bank
Equit
y Fun
dGr
eater
Bay
Area
Gro
wth a
nd
Incom
e Fun
d
Total
ma
nage
ment
fee
charg
ed du
ring
the ye
ar
Amou
nt du
e to
itself
as th
e Inv
estm
ent
Mana
ger a
s at
year
end
Total
ma
nage
ment
fee
charg
ed du
ring
the ye
ar
Amou
nt du
e to
itself
as th
e Inv
estm
ent
Mana
ger a
s at
year
end
Total
ma
nage
ment
fee
charg
ed du
ring
the ye
ar
Amou
nt du
e to
itself
as th
e Inv
estm
ent
Mana
ger a
s at
year
end
Total
ma
nage
ment
fee
charg
ed du
ring
the ye
ar
Amou
nt du
e to
itself
as th
e Inv
estm
ent
Mana
ger a
s at
year
end
Total
ma
nage
ment
fee
charg
ed du
ring
the ye
ar
Amou
nt du
e to
itself
as th
e Inv
estm
ent
Mana
ger a
s at
year
end
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
For th
e yea
r end
ed 30
June
2021
732,3
55
62,41
4 10
4,534
7,
956
266,8
25
23,01
8 39
4,780
38
,073
253,7
06
37,72
8 Fo
r the y
ear e
nded
30 Ju
ne 20
20 70
0,226
55
,813
211,6
86
13,85
0 24
8,257
20
,136
437,4
68
22,47
3 23
2,359
14
,155
16.
Rel
ated
par
ty d
iscl
osur
es (c
ontin
ued)
Notes to Financial Statements
For the year ended 30 June 2021
89
17. Soft commission arrangements
MIMHK when acting as the Investment Manager of any Segregated Portfolio, has a fiduciary role in that it has an overriding duty to put the interests of its clients (including the Company, whose ultimate beneficiaries are the Shareholders) above its own corporate interests and personal interests in every transaction conducted.
MIMHK and Manulife Investment Management (US) LLC will not engage in any investment practice where its interests may be in conflict with the portfolios under their management. During the year covered by this financial report, no soft commission arrangements were entered into in respect of the Company’s transactions with brokers, except that of Manulife Investment Management (US) LLC, as stated below:
Investment Manager(s)/Sub-Investment Manager(s)/Investment Adviser(s) Name of the sub-funds
For the year ended 30 June 2021
For the year ended 30 June 2020
USD USD
Manulife Investment Management (US) LLC U.S. Bank Equity Fund 15 1,070
These soft commission arrangements include research and analysis related items.
18. Financial instruments by category
As at 30 June 2021
Assets/Liabilities
at fair value through
profit or loss CashLoans and
receivablesOther financial
liabilities Total
China A Fund (in USD)AssetsFinancial assets at fair value through profit or loss 44,955,118 – – – 44,955,118 Cash – 184,420 – – 184,420 Receivable on subscriptions – – 183,070 – 183,070 Other receivables and prepayments – – 6,883 – 6,883 LiabilitiesAccounts payable and accrued expenses – – – (191,873) (191,873)Payable on redemptions – – – (1,031,505) (1,031,505)
Total 44,955,118 184,420 189,953 (1,223,378) 44,106,113
Bond Fund (in USD)AssetsFinancial assets at fair value through profit or loss 42,766,492 – – – 42,766,492 Cash – 228,305 – – 228,305 Other receivables and prepayments – – 594,769 – 594,769 Due from broker – – 161,620 – 161,620 LiabilitiesFinancial liabilities at fair value through profit or loss (1,071,977) – – – (1,071,977)Accounts payable and accrued expenses – – – (748,228) (748,228)Payable on redemptions – – – (58,494) (58,494)
Total 41,694,515 228,305 756,389 (806,722) 41,872,487
Notes to Financial Statements
For the year ended 30 June 2021
90
As at 30 June 2021
Assets/Liabilities
at fair value through
profit or loss CashLoans and
receivablesOther financial
liabilities Total
Asia Pacific Income and Growth Fund (in USD)AssetsFinancial assets at fair value through profit or loss 18,101,422 – – – 18,101,422 Cash – 66,314 – – 66,314 Receivable on subscriptions – – 24,260 – 24,260 Other receivables and prepayments – – 255,352 – 255,352 Due from broker – – 406,415 – 406,415 LiabilitiesFinancial liabilities at fair value through profit or loss (28,908) – – – (28,908)Accounts payable and accrued expenses – – – (117,959) (117,959)Payable on redemptions – – – (178,306) (178,306)Due to broker – – – (200,000) (200,000)
Total 18,072,514 66,314 686,027 (496,265) 18,328,590
U.S. Bank Equity Fund (in USD)AssetsFinancial assets at fair value through profit or loss 28,837,062 – – – 28,837,062 Cash – 652,587 – – 652,587 Receivable on subscriptions – – 542,893 – 542,893 Other receivables and prepayments – – 49,000 – 49,000 LiabilitiesAccounts payable and accrued expenses – – – (77,279) (77,279)Payable on redemptions – – – (928,090) (928,090)Due to broker – – – (13,435) (13,435)
Total 28,837,062 652,587 591,893 (1,018,804) 29,062,738
Greater Bay Area Growth and Income Fund (in USD)AssetsFinancial assets at fair value through profit or loss 30,276,113 – – – 30,276,113 Cash – 1,378,491 – – 1,378,491 Receivable on subscriptions – – 51,218 – 51,218 Other receivables and prepayments – – 267,907 – 267,907 Due from broker – – 210,299 – 210,299 LiabilitiesFinancial liabilities at fair value through profit or loss (38,231) – – – (38,231)Accounts payable and accrued expenses – – – (62,250) (62,250)Payable on redemptions – – – (574,521) (574,521)Due to broker – – – (200,000) (200,000)
Total 30,237,882 1,378,491 529,424 (836,771) 31,309,026
18. Financial instruments by category (continued)
Notes to Financial Statements
For the year ended 30 June 2021
91
As at 30 June 2020
Assets/Liabilities
at fair value through
profit or loss CashLoans and
receivablesOther financial
liabilities Total
China A Fund (in USD)AssetsFinancial assets at fair value through profit or loss 40,462,494 – – – 40,462,494 Cash – 171,854 – – 171,854 Receivable on subscriptions – – 14,080 – 14,080 Other receivables and prepayments – – 957 – 957 LiabilitiesAccounts payable and accrued expenses – – – (170,267) (170,267)Payable on redemptions – – – (324,717) (324,717)
Total 40,462,494 171,854 15,037 (494,984) 40,154,401
Bond Fund (in USD)AssetsFinancial assets at fair value through profit or loss 29,843,398 – – – 29,843,398 Cash – 133,007 – – 133,007 Other receivables and prepayments – – 398,794 – 398,794 LiabilitiesAccounts payable and accrued expenses – – – (687,433) (687,433)Payable on redemptions – – – (213,924) (213,924)
Total 29,843,398 133,007 398,794 (901,357) 29,473,842
Asia Pacific Income and Growth Fund (in USD)AssetsFinancial assets at fair value through profit or loss 15,262,396 – – – 15,262,396 Cash – 653,268 – – 653,268 Receivable on subscriptions – – 6,131 – 6,131 Other receivables and prepayments – – 185,250 – 185,250 Due from broker – – 4,249 – 4,249 LiabilitiesFinancial liabilities at fair value through profit or loss (6,550) – – – (6,550)Accounts payable and accrued expenses – – – (47,325) (47,325)Payable on redemptions – – – (51,269) (51,269)
Total 15,255,846 653,268 195,630 (98,594) 16,006,150
18. Financial instruments by category (continued)
Notes to Financial Statements
For the year ended 30 June 2021
92
As at 30 June 2020
Assets/Liabilities
at fair value through
profit or loss CashLoans and
receivablesOther financial
liabilities Total
U.S. Bank Equity Fund (in USD)AssetsFinancial assets at fair value through profit or loss 18,310,835 – – – 18,310,835 Cash – 447,270 – – 447,270 Receivable on subscriptions – – 627,142 – 627,142 Other receivables and prepayments – – 32,451 – 32,451 Due from broker – – 18,555 – 18,555 LiabilitiesAccounts payable and accrued expenses – – – (58,902) (58,902)Payable on redemptions – – – (175,639) (175,639)
Total 18,310,835 447,270 678,148 (234,541) 19,201,712
Greater Bay Area Growth and Income Fund (in USD)AssetsFinancial assets at fair value through profit or loss 11,251,748 – – – 11,251,748 Cash – 345,819 – – 345,819 Receivable on subscriptions – – 37,140 – 37,140 Other receivables and prepayments – – 139,459 – 139,459 Due from broker – – 50,240 – 50,240 LiabilitiesFinancial liabilities at fair value through profit or loss (1,314) – – – (1,314)Accounts payable and accrued expenses – – – (70,429) (70,429)Payable on redemptions – – – (34,598) (34,598)Due to broker – – – (95,090) (95,090)
Total 11,250,434 345,819 226,839 (200,117) 11,622,975
18. Financial instruments by category (continued)
Notes to Financial Statements
For the year ended 30 June 2021
93
19. Important events
The class AA (HKD) of the Greater Bay Area Growth and Income Fund was launched in February 2021.
The Company and the Segregated Portfolios are closely monitoring and responding to developments concerning the outbreak of COVID-19. The Investment Managers and Sub-Investment Managers, the Administrator, the Custodian and Paying Agent have all deployed business continuity arrangements to minimise interruption to business in respect of the COVID-19 pandemic.
At the time of signing this annual report there remains uncertainty regarding the full impact of COVID-19. The Board, the Investment Managers and Sub-Investment Managers and the other key service providers will continue to monitor developments and respond as appropriate.
20. Subsequent events
Subsequent to year end, the Company resolved to declare the dividend distributions of the Asia Pacific Income and the Growth Fund and the Greater Bay Area Growth and Income Fund. Please refer to below for details:
CurrencyDistribution per Share
Total Distribution
Distribution Date
Asia Pacific Income and Growth FundClass AA (USD) Inc USD 0.0350 32,958.06 9-Jul-21Class AA (USD) Inc USD 0.0350 32,209.68 9-Aug-21Class AA (USD) Inc USD 0.0350 32,016.10 8-Sep-21Class AA (USD) Inc USD 0.0350 32,062.82 11-Oct-21Class AA (AUD) Inc Hedged AUD 0.0337 6,856.30 9-Jul-21Class AA (AUD) Inc Hedged AUD 0.0337 6,881.92 9-Aug-21Class AA (AUD) Inc Hedged AUD 0.0337 6,859.53 8-Sep-21Class AA (AUD) Inc Hedged AUD 0.0337 6,885.06 11-Oct-21Class AA (HKD) Inc HKD 0.3501 163,449.79 9-Jul-21Class AA (HKD) Inc HKD 0.3501 164,024.22 9-Aug-21Class AA (HKD) Inc HKD 0.3501 164,604.93 8-Sep-21Class AA (HKD) Inc HKD 0.3501 165,182.71 11-Oct-21Class AA (CAD) Inc Hedged CAD 0.0332 9,324.19 9-Jul-21Class AA (CAD) Inc Hedged CAD 0.0332 9,358.93 9-Aug-21Class AA (CAD) Inc Hedged CAD 0.0332 9,377.62 8-Sep-21Class AA (CAD) Inc Hedged CAD 0.0332 9,412.83 11-Oct-21
Greater Bay Area Growth and Income FundClass AA (USD) Inc USD 0.0280 38,932.68 9-Jul-21Class AA (USD) Inc USD 0.0280 39,651.37 9-Aug-21Class AA (USD) Inc USD 0.0280 43,680.62 8-Sep-21Class AA (USD) Inc USD 0.0280 14,005.83 11-Oct-21Class AA (AUD) Inc Hedged AUD 0.0280 12,258.85 9-Jul-21Class AA (AUD) Inc Hedged AUD 0.0280 13,483.71 9-Aug-21Class AA (AUD) Inc Hedged AUD 0.0280 13,870.66 8-Sep-21Class AA (AUD) Inc Hedged AUD 0.0280 44,810.67 11-Oct-21Class AA (HKD) Inc HKD 0.2800 132,701.79 9-Jul-21Class AA (HKD) Inc HKD 0.2800 132,173.39 9-Aug-21Class AA (HKD) Inc HKD 0.2800 128,121.90 8-Sep-21Class AA (HKD) Inc HKD 0.2800 134,787.90 11-Oct-21
Notes to Financial Statements
For the year ended 30 June 2021
94
21. Approval of the combined financial statements
The financial statements of the Company for the year ended 30 June 2021 were authorized for issue in accordance with a resolution of the Board of Directors on 21 October 2021.
Manulife Advanced Fund SPC
95
China A Segregated Portfolio
Portfolio of Investments As at 30 June 2021
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed Equities
China53,400 Amlogic Shanghai Company Limited – A 578,643 927,265 2.10
248,100 Anhui Anke Biotechnology Company Limited – A 630,620 572,115 1.30 59,530 Anhui Kouzi Distillery Company Limited – A 616,679 623,635 1.41 98,600 Beijing Shunxin Agriculture Company Limited – A 797,343 643,655 1.46
1,122,000 Boe Technology Group Company Limited – A 927,392 1,083,546 2.46 1,708,400 China Everbright Bank Company Limited – A 1,029,317 999,428 2.27
462,229 China Jushi Company Limited – A 474,430 1,109,530 2.52 175,400 China Life Insurance Company Limited – A 820,597 919,965 2.09
86,000 China Merchants Bank Company Limited–A 778,621 721,253 1.64 37,800 Chongqing Brewery Company Limited – A 310,432 1,158,023 2.63 74,300 Double Medical Technology Inc. – A 762,271 838,160 1.90
246,618 East Money Information Company Limited – A 767,513 1,251,515 2.84 172,500 Estun Automation Company Limited – A 225,969 1,042,509 2.36 492,900 Fangda Carbon New Material Technology Company Limited – A 691,338 567,547 1.29 148,000 Foryou Corp. – A 429,288 723,342 1.64
27,160 Gigadevice Semiconductor (Beijing) Inc. – A 635,326 789,817 1.79 181,724 Gree Electric Appliances Inc. – A 1,453,921 1,465,278 3.32 139,200 Guangdong Fenghua Advanced Technology Holding Company
Limited – A736,841 651,034 1.48
416,000 Haitong Securities Company Limited – A 787,512 740,391 1.68 84,400 Hefei Meiya Optoelectronic Technology Inc. – A 734,614 728,342 1.65
377,130 Hengyi Petrochemical Company Limited – A 628,634 697,475 1.58 125,100 Hongfa Technology Company Limited – A 535,791 1,213,933 2.75
85,850 Hualan Biological Engineering Inc. – A 525,468 487,348 1.10 297,600 Huatai Securities Company Limited – A 833,680 727,713 1.65 467,600 Industrial Bank Company Limited – A 1,254,118 1,487,155 3.36 176,100 Inner Mongolia Yili Industrial Group Company Limited – A 865,167 1,003,762 2.28
77,670 Jiangsu Hengli Hydraulic Company Limited – A 87,052 1,032,803 2.34 67,920 Jiangsu Hengrui Medicine Company Limited – A 794,644 714,471 1.62 26,800 Jiangsu Yanghe Brewery JSC Limited – A 713,652 859,398 1.95 77,661 Jonjee High-Tech Industrial and Commercial Group – A 486,870 505,044 1.15
2,500 Kweichow Moutai Company Limited–A 859,193 795,758 1.80 33,000 Leader Harmonious Drive System Company Limited – A 652,025 716,491 1.62
308,500 Meinian Onehealth Healthcare Holdings Company Limited – A 601,910 434,954 0.99 28,500 Naura Technology Group Company Limited – A 655,662 1,223,460 2.77 92,600 New China Life Insurance Company Limited – A 791,877 657,943 1.49
170,200 Ningbo Joyson Electronic Corp. – A 759,577 672,218 1.52 98,222 Ping an Insurance Group Company of China Limited – A 620,206 977,135 2.22
105,400 Shandong Pharmaceutical Glass Company Limited – A 632,778 553,797 1.26 232,568 Shenzhen Senior Technology Material Company Limited – A 545,786 1,489,037 3.37
Manulife Advanced Fund SPC
96
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed Equities (continued)China (continued)
214,700 Sunwoda Electronics Company Limited – A 672,358 1,081,898 2.45 190,600 Shenzhen Sunlord Electronics Company Limited – A 632,859 1,143,638 2.59 178,000 Tongwei Company Limited – A 627,072 1,192,002 2.70
62,800 Tsingtao Brewery Company Limited – A 786,588 1,124,023 2.55 93,700 Walvax Biotechnology Company Limited – A 410,504 894,736 2.03 22,900 Will Semiconductor Company Limited – A 623,966 1,141,199 2.59 42,700 Wingtech Technology Company Limited – A 688,954 640,356 1.45
352,300 Wolong Electric Drive Group Company Limited – A 852,044 725,161 1.64 753,900 XCMG Construction Machinery Company Limited – A 480,870 743,230 1.69 144,100 Yantai Jereh Oilfiel Services Group Company Limited – A 721,464 996,877 2.26 347,100 Yunnan Tin Company Limited – A 789,538 861,109 1.95 210,500 Zhuzhou Kibing Group Company Limited – A 296,884 604,644 1.37
34,615,858 44,955,118 101.92
Listed Equities Total 34,615,858 44,955,118 101.92 Portfolio of Investments 34,615,858 44,955,118 101.92Other Net Liabilities (849,005) (1.92)Net Assets 44,106,113 100.00
China A Segregated Portfolio (continued)
Portfolio of Investments (continued) As at 30 June 2021
Manulife Advanced Fund SPC
97
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed Supranationals, Governments and Local Public Authorities, Debt Instruments
China5,000,000* Agricultural Development Bank of China 2.250% 22/Apr/2025 699,958 748,552 1.79 5,000,000* Agricultural Development Bank of China 2.960% 17/Apr/2030 687,608 742,261 1.77
10,000,000* Agricultural Development Bank of China 3.450% 23/Sep20/25 1,532,186 1,561,059 3.73 10,000,000* Agricultural Development Bank of China 4.650% 11/May/2028 1,543,178 1,658,383 3.96 10,000,000* China (Govt of) 2.680% 21/May/2030 1,422,063 1,490,724 3.56 10,000,000* China (Govt of) 3.120% 5/Dec/2026 1,479,179 1,557,589 3.72 10,000,000* China (Govt of) 3.130% 21/Nov/2029 1,476,464 1,552,656 3.71 10,000,000* China (Govt of) 3.220% 6/Dec/2025 1,464,777 1,567,883 3.74 20,000,000* China (Govt of) 3.250% 22/Nov/2028 3,006,090 3,128,301 7.47 22,000,000* China (Govt of) 3.810% 14/Sep/2050 3,240,792 3,508,877 8.38 10,000,000* China Development Bank 3.070% 24/Mar/2024 1,537,990 1,551,649 3.71 10,000,000* China Development Bank 3.090% 18/Jun/2030 1,408,092 1,498,094 3.58 20,000,000* China Development Bank 3.430% 14/Jan/2027 2,939,052 3,109,128 7.42 10,000,000* China Development Bank 3.700% 20/Oct/2030 1,532,404 1,570,715 3.75 10,000,000* China Development Bank 3.900% 3/Aug/2040 1,469,997 1,591,353 3.80 10,000,000* Export-Import Bank of China 4.890% 26/Mar/2028 1,569,549 1,677,886 4.01
27,009,379 28,515,110 68.10 Listed Supranationals, Governments and Local Public Authorities, Debt Instruments Total 27,009,379 28,515,110 68.10
Listed Bonds
China10,000,000* Central Huijin Investment 4.230% 23/Aug/2023 1,465,890 1,581,107 3.78 10,000,000* China Life Insurance 4.280% 22/Mar/2029 1,491,200 1,563,535 3.73
2,000,000* China National Chemical Corp. 3.240% 20/Apr/2020 288,952 302,747 0.72 10,000,000* China National Chemical Corp. 3.290% 9/Apr/2025 1,419,243 1,517,198 3.63 10,000,000* China Railway Corp. 4.530% 23/Aug/2028 1,464,424 1,640,495 3.92 10,000,000* China Southern Power 3.750% 14/Jan/2024 1,479,730 1,566,594 3.74 10,000,000* Chongqing Longhu Development 3.95% 7/Jan/2026 1,546,070 1,565,762 3.74 10,000,000* Country Garden Real Estate Group 4.200 1/Apr/2025 1,499,185 1,557,868 3.72 10,000,000* ICBC 4.260% 25/Mar/2029 1,491,200 1,575,427 3.76
12,145,894 12,870,733 30.74
Renminbi Bond Segregated Portfolio
Portfolio of Investments As at 30 June 2021
* Par value is in RMB.
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98
Renminbi Bond Segregated Portfolio (continued)
Portfolio of Investments (continued) As at 30 June 2021
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Hong Kong 3,000,000* Far East Horizon Limited 4.700% 9/Feb/2024 469,140 476,574 1.14
469,140 476,574 1.14
Listed Bonds Total 12,615,034 13,347,307 31.88
Portfolio of Investments 39,624,413 41,862,417 99.98
Forward contracts#
RMB/USD 536,154 1.28 RMB/USD 367,912 0.88 USD/RMB 9 0.00 USD/RMB (1,071,977) (2.56) Forward contracts Total (167,902) (0.40)
Other Net Assets 177,972 0.42Net Assets 41,872,487 100.00
* Par value is in RMB.# Counterparty is Australia New Zealand Bank.
Manulife Advanced Fund SPC
99
Asia Pacific Income and Growth Segregated Portfolio
Portfolio of Investments As at 30 June 2021
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed Supranationals, Governments and Local Public Authorities, Debt Instruments
Indonesia3,700,000,000* Indonesia Treasury Bond 8.250% 15/Jul/2021 293,010 255,591 1.39
293,010 255,591 1.39 Republic of Korea (South)
2,500,000,000* Export-Import Bank of Korea 7.250% 7/Dec/2024 195,771 182,632 1.00 195,771 182,632 1.00
Supranational12,000,000** International Finance Corp. 6.300% 25/Nov/2024 189,768 166,258 0.91
189,768 166,258 0.91
Listed Supranationals, Governments and Local Public Authorities, Debt Instruments Total
678,549 604,481 3.30
Listed BondsBermuda
200,000 China Oil & Gas Group Limited 4.700% 30/Jun/2026 200,000 204,133 1.12 200,000 Hopson Development Holdings 7.500% 27/Jun/2022 201,000 203,787 1.11
401,000 407,920 2.23 Cayman Islands
200,000 China Hongqiao Group 6.250% 8/Jun/2024 200,000 204,450 1.12 200,000 Country Garden Holdings Company Limited 3.875%
22/Oct/2030199,490 197,290 1.08
250,000 Geely Automobile 4.000% perp. 205,000 258,913 1.41 200,000 Honghua Group Limited 6.375% 1/Aug/2022 202,500 195,806 1.07 200,000 Sunac China Holdings Limited 7.500% 1/Feb/2024 198,116 205,333 1.12 200,000 Yuzhou Properties Company 5.380% perp. 199,700 170,690 0.93
1,204,806 1,232,482 6.73China
200,000 China Minmetals 3.750% perp. 200,000 204,287 1.12 200,000 Guangxi Financial Investment Group 3.600% 18/Nov/2023 196,500 186,000 1.01
396,500 390,287 2.13 Hong Kong
200,000 AIA Group Limited 2.700% perp. 200,000 203,489 1.11 300,000 CNAC (HK) Finbridge Company Limited 4.125% 19/Jul/2027 300,039 325,704 1.78 200,000 Lenovo Group Limited 3.421% 2/Nov/2030 200,000 208,924 1.14 200,000 Nanyang Commercial Bank Limited 5.000% 2/Dec/2022 196,400 201,378 1.10 200,000 Weichai International Hong Kong Energy Group 3.750% perp. 186,160 204,050 1.11
1,082,599 1,143,545 6.24* Par value is in IDR.** Par value is in INR.
Manulife Advanced Fund SPC
100
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed Bonds (continued) India
200,000 Adani Ports & Special Economic Zone Limited 4.380% 3/Jul/2029
197,542 207,929 1.13
197,542 207,929 1.13 Indonesia
200,000 Bank Mandiri Pt 4.750% 13/May/25 198,510 223,466 1.22 200,000 Indonesia Asahan Aluminium Pt 5.450% 15/May/30 195,484 232,743 1.27 200,000 Pakuwon Jati Tbk Pt 4.880% 29/Apr/2028 200,000 208,833 1.14
593,994 665,042 3.63Jersey–Channel Islands
200,000 West China Cement Limited 4.950% 8/Jul/2026 200,000 200,000 1.09 200,000 200,000 1.09
Malaysia200,000 Genm Capital Labuan Limited 3.880% 19/Apr/2031 200,000 199,847 1.09
200,000 199,847 1.09 Republic of Korea (South)
200,000 Busan Bank 3.625% 25/Jul/2026 199,170 211,588 1.15 199,170 211,588 1.15
Singapore200,000 BOC Aviation FRN 21/May/2025 201,588 201,353 1.10 200,000 TBLA International Pte Limited 7.000% 24/Jan/2023 201,490 193,167 1.05
403,078 394,520 2.15United States
200,000 Resorts World Las Vegas 4.625% 16/Apr/2029 209,058 207,501 1.13 209,058 207,501 1.13
Virgin Islands (British)200,000 Coastal Emerald Limited 4.300% perp. 200,600 200,313 1.09 200,000 Easy Tactic Limited 11.750% 2/Aug/2023 200,000 196,750 1.07 200,000 JMH Company Limited 2.500% 9/Apr/2031 196,160 202,655 1.11 200,000 Yingde Gases Investment 6.250% 19/Jan/2023 201,480 206,181 1.13
798,240 805,899 4.40
Listed Bonds Total 5,885,987 6,066,560 33.10
Asia Pacific Income and Growth Segregated Portfolio (continued)
Portfolio of Investments (continued) As at 30 June 2021
Manulife Advanced Fund SPC
101
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed Equities Australia
19,061 Amcor Limited 178,072 216,367 1.18 6,227 BHP Billiton Limited 165,663 226,910 1.24 9,068 Brambles Limited 56,536 77,829 0.42
27,173 Capital Industrial REIT 63,100 75,838 0.41 4,147 Endeavour Group Limited 14,543 19,570 0.11 9,944 IPH Limited 43,724 58,192 0.32 3,074 JB Hi-Fi Limited 64,429 116,651 0.64 1,609 Macquarie Group Limited 117,705 188,835 1.03
16,359 National Australia Bank Limited 408,772 321,807 1.76 2,698 Rio Tinto Limited 148,377 256,341 1.40
39,397 Scentre Group 55,227 80,988 0.44 20,679 Transurban Group Limited 186,354 220,770 1.20
113,756 Waypoint REIT 200,636 223,606 1.22 7,815 Westpac Banking Corp. 206,507 151,329 0.83 3,532 Woodside Petroleum Limited 79,730 58,854 0.32 4,147 Woolworths Group Limited 82,134 118,633 0.65
2,071,509 2,412,520 13.17Cayman Islands
2,335 Alibaba Group Holding Limited 382,779 529,438 2.89 88,000 China Resources Cement Holdings Limited 119,016 83,623 0.46
557 Full Truck Alliance Company Limited 10,583 9,296 0.05 139,000 HKBN Limited 170,190 168,239 0.92 128,000 HKT Limited 161,629 174,373 0.95
80,000 KWG Property Holdings Limited 52,399 107,129 0.58 37,600 KWG Living Group 10,339 48,221 0.26
8,200 Tencent Holdings Limited 220,757 616,610 3.37 1,127,692 1,736,929 9.48
China294,000 Anhui Expressway Company Limited – H 227,678 191,171 1.04 374,000 China Construction Bank Corp. 298,774 294,237 1.61 351,000 Industrial & Commercial Bank of China 237,446 206,090 1.12
2,833 JD.com Inc. 239,907 222,589 1.21 15,000 Ping an Insurance 154,162 146,884 0.80 41,700 SAIC Motor Corporation Limited – A 186,598 141,782 0.77
294,000 Shenzhen Expressway Company Limited 287,554 283,918 1.56 36,841 Venustech Group Inc. – A 195,395 165,400 0.90
1,827,514 1,652,071 9.01
Asia Pacific Income and Growth Segregated Portfolio (continued)
Portfolio of Investments (continued) As at 30 June 2021
Manulife Advanced Fund SPC
102
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed Equities (continued) Hong Kong
38,500 BOC Hong Kong Holdings Limited 125,782 130,625 0.71 205,000 China Merchants Commercial REIT 89,554 73,381 0.40
92,000 China Merchants Port Holdings 121,530 134,334 0.73 635,000 CITIC Telecom International Holdings Limited 213,002 210,132 1.15
96,000 Guangdong Investment Limited 118,472 137,949 0.75 404,000 Yuexiu Transport Infrastructure Limited 270,973 234,088 1.28
14,000 Link REIT 120,373 135,650 0.74 1,059,686 1,056,159 5.76
Indonesia487,000 Telekomunikasi Indonesia Tbk Pt 108,101 105,803 0.58
26,800 United Tractors Tbk Pt 51,001 37,430 0.20 159,102 143,233 0.78
Malaysia47,700 Malayan Banking Bhd 103,310 93,183 0.51
103,310 93,183 0.51 New Zealand
9,662 Contact Energy Limited Npv 37,637 55,845 0.30 17,731 Genesis Energy Limited Npv 30,868 42,082 0.23
68,505 97,927 0.53Republic of Korea (South)
31,261 Lotte Company Limited REIT 130,902 165,444 0.90 1,599 S-1 Corp. 110,601 116,288 0.63 9,396 Samsung Electronics Company Limited Pfd 283,994 614,913 3.36
525,497 896,645 4.89Singapore
119,000 AIMS AMP Capital Industrial REIT 130,150 130,117 0.71 21,777 Ascendas REIT 40,389 47,785 0.26
200,599 Frasers Logistics & Industrial Trust REIT 159,742 214,864 1.18 78,254 Keppel DC REIT 74,831 144,936 0.79 35,900 Mapletree Commercial Trust REIT 40,224 57,679 0.31
129,000 Mapletree Greater China Commercial Trust REIT 96,395 99,792 0.54 4,900 United Overseas Bank Limited 96,542 94,107 0.51 9,300 Venture Corp. Limited 118,398 132,887 0.73
756,671 922,167 5.03
Asia Pacific Income and Growth Segregated Portfolio (continued)
Portfolio of Investments (continued) As at 30 June 2021
Manulife Advanced Fund SPC
103
Asia Pacific Income and Growth Segregated Portfolio (continued)
Portfolio of Investments (continued) As at 30 June 2021
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed Equities (continued) Taiwan
17,000 Chicony Electronics Company Limited 49,283 49,056 0.27 10,000 Chroma ATE Inc. 70,471 68,731 0.37 25,000 Formosa Plastics Corp. 80,346 92,419 0.50
4,000 GlobalWafers Company Limited 50,743 131,935 0.72 24,000 Hon Hai Precision Industry Company Limited 97,159 96,475 0.53
173,000 Inventec Company Limited 138,975 162,990 0.89 38,000 Micro-Star International Company Limited 116,166 214,808 1.17 51,000 Taiwan Semiconductor Manufacturing Company Limited 256,033 1,089,113 5.94
3,000 Wiwynn Corp. 70,989 107,350 0.59 930,165 2,012,877 10.98
Thailand443,700 Land & Houses pcl nvdr 134,524 110,059 0.60 110,700 PTT pcl nvdr 125,167 135,567 0.74
259,691 245,626 1.34
Listed Equities Total 8,889,342 11,269,337 61.48
Listed FundsUnited States
3,646 iShares MSCI India ETF 107,875 161,044 0.88 107,875 161,044 0.88
Listed Funds Total 107,875 161,044 0.88 Portfolio of Investments 15,561,753 18,101,422 98.76
Forward contracts#
AUD/USD (15,639) (0.09) AUD/USD (127) (0.00)CAD/USD (103) (0.00)CAD/USD (13,028) (0.07) USD/HKD (11) (0.00)Forward contracts Total (28,908) (0.16)
Other Net Assets 256,076 1.40Net Assets 18,328,590 100.00
# Counterparty is Citibank London.
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104
U.S. Bank Equity Segregated Portfolio
Portfolio of Investments As at 30 June 2021
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed EquitiesPuerto Rico
3,697 Popular Inc. 250,418 277,460 0.95 250,418 277,460 0.95
United States3,040 1st Source Corp. 136,534 140,022 0.48
23,294 5th Third Bancorp. 699,213 891,693 3.07 3,690 American Business Bank 130,475 155,903 0.54 5,100 American River Bankshares 69,412 91,800 0.32 8,155 Ameris Bancorp. 356,760 413,622 1.42 8,133 Atlantic Capital Bancshares Inc. 154,959 205,196 0.71 8,863 Atlantic Union Bankshares Corp. 305,438 321,904 1.11
19,686 Bank of America Corp. 625,932 807,717 2.78 9,148 Bank of Commerce Holdings 98,296 136,488 0.47 3,373 Bank of Marin Bancorp. 123,968 105,744 0.36 5,626 Bar Harbor Bankshares 152,625 158,541 0.55 6,304 BayCom Corp. 112,699 112,905 0.39 9,322 Berkshire Hills Bancorp. Inc. 227,197 257,008 0.88 6,597 Bryn Mawr Bank Corp. 260,808 278,393 0.96 5,289 Business First Bancshares 115,656 121,647 0.42
496 C&F Financial Corp. 25,280 25,425 0.09 14,043 Cadence Bancorp. 270,828 295,043 1.02
5,185 California Bancorp. Inc. 93,129 99,034 0.34 3,217 Cambridge Bancorp. 243,113 267,043 0.92 2,847 Camden National Corp. 120,013 135,745 0.47 4,554 Central Valley Community Bancorp. 71,426 91,535 0.31 6,986 Citizens Community Bancorp. Inc. 80,789 94,590 0.33
20,151 Citizens Financial Group 760,634 926,743 3.18 1,363 City Holding Company 100,242 102,907 0.35 7,010 Civista Bancshares Inc. 142,562 155,131 0.53 7,511 Coastal Financial Corp. 156,903 209,557 0.72
580 Codorus Valley Bancorp. Inc. 11,278 11,681 0.04 5,750 Columbia Banking System Inc. 227,568 221,548 0.76 9,748 Comerica Inc. 626,385 692,693 2.38 3,763 Community Financial Corp. (The) 115,809 132,269 0.46 3,889 County Bancorp. Inc. 95,808 133,043 0.46 3,488 Cullen Frost Bankers Inc. 346,082 390,272 1.34 4,663 Eagle Bancorp. Montana Inc. 99,161 107,715 0.37 5,737 East West Bancorp. 349,918 412,892 1.42 5,956 Equity Bancshares Inc. – Class A 164,311 183,921 0.63
989 Essa Bancorp Inc. 15,932 16,338 0.06 2,723 Evans Bancorp. Inc. 92,482 102,085 0.35
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105
U.S. Bank Equity Segregated Portfolio (continued)
Portfolio of Investments (continued) As at 30 June 2021
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed Equities (continued)United States (continued)
3,630 Farmers & Merchants Bancorp. Inc. 79,694 79,025 0.27 3,253 Farmers National Banc Corp. 53,931 50,324 0.17 3,273 First Bancorp. Inc. 88,018 97,274 0.33 4,503 First Bancshares Inc. 140,529 167,331 0.58 4,934 First Business Financial Services Inc. 110,297 136,425 0.47 5,015 First Community Corp. 108,055 103,911 0.36
12,841 First Financial Bancorp.. 278,694 305,102 1.05 23,518 First Horizon National Corp. 357,450 406,156 1.40
6,875 First Merchants Corp. 278,680 287,444 0.99 2,378 First Mid-Illinois Bancshares 87,704 96,214 0.33 1,923 First Northwest Bancorp. 33,922 33,845 0.12
21,402 FNB Corp. 244,503 264,315 0.91 3,350 German American Bancorp. 126,682 124,017 0.43 3,093 Glacier Bancorp. Inc. 146,407 170,826 0.59 2,092 Great Southern Bancorp. Inc. 107,804 113,868 0.39 6,462 Great Western Bancorp. Inc. 188,335 212,988 0.73
11,049 Hancock Holding Company 418,029 490,355 1.69 7,849 HBT Financial 123,165 137,201 0.47
24,751 Heritage Commerce Corp. 265,169 277,954 0.96 4,307 Heritage Financial Corp. 115,558 108,493 0.37
15,697 Horizon Bancorp. Indiana 260,722 277,209 0.95 7,893 Howard Bancorp. Inc. 120,925 128,261 0.44
67,104 Huntington Bancshares Inc. 934,401 957,909 3.30 1,688 Independent Bank Massachussetts Corp. 130,648 126,938 0.44 5,205 Independent Bank Michigan Corp. 108,202 113,833 0.39 5,008 JP Morgan Chase 632,270 775,940 2.67
42,496 Keycorp 757,112 876,267 3.02 438 Landmark Bancorp. Inc. 11,803 11,857 0.04
4,627 Level One Bancorp. Inc. 108,828 125,623 0.43 487 Limestone Bancorp. Inc. 7,957 8,045 0.03
3,363 Live Oak Bancshares Inc. 132,186 196,130 0.67 4,268 M&T Bank Corp. 605,169 624,067 2.15 8,754 Mackinac Financial Corp. 123,313 174,730 0.60 2,869 Meridian Bancorp. Inc. 59,913 58,700 0.20 5,309 Metrocity Bankshares Inc. 76,854 92,854 0.32 2,406 Mid Penn Bancorp. Inc. 60,290 65,828 0.23 3,751 Midwestone Financial Group 107,907 108,441 0.37 2,447 NBT Bancorp. Inc. 89,326 87,872 0.30 1,916 Nicolet Bankshares Inc. 130,519 135,768 0.47 3,022 Northrim Bancorp. Inc. 110,937 129,916 0.45
Manulife Advanced Fund SPC
106
U.S. Bank Equity Segregated Portfolio (continued)
Portfolio of Investments (continued) As at 30 June 2021
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed Equities (continued)United States (continued)
628 Ohio Valley Banc Corp. 14,674 15,530 0.05 11,419 Old National Bancorp. 208,673 201,660 0.69 11,763 Old Second Bancorp. Inc. 140,875 147,038 0.51 10,833 Open Bank Bancorp. 101,307 110,605 0.38 10,631 Pacific Premier Bancorp. Inc. 372,830 448,203 1.54
6,616 Pacwest Bancorp. 241,532 271,190 0.93 9,132 Pinnacle Financial Partners 631,178 804,438 2.77 2,125 Plumas Bancorp. 61,619 68,064 0.23 4,278 PNC Financial Services Group 631,810 817,867 2.81
13,654 Premier Financial Corp. 369,303 392,553 1.35 5,749 Provident Financial Holdings 94,604 99,803 0.34 3,672 QCR Holdings Inc. 151,072 177,945 0.61 1,201 Red River Bancshares Inc. 60,061 60,711 0.21
42,035 Regions Financial Corp. 727,845 845,323 2.91 6,695 Renasant Corp. 252,505 267,131 0.92
316 Riverview Bancorp. Inc. 2,041 2,272 0.01 2,056 Sandy Spring Bancorp. Inc. 82,679 90,957 0.31 2,926 SB Financial Group Inc. 52,401 54,921 0.19 6,884 Shore Bancshares Inc. 106,318 115,720 0.40 2,222 Sierra Bancorp. 59,509 56,439 0.19 1,379 South State Corp. 104,674 112,389 0.39 3,556 Southern First Bancshares Inc. 145,635 182,672 0.63 3,631 Southern Missouri Bancorp. 126,165 165,537 0.57 4,461 Stock Yards Bancorp. Inc. 195,403 227,511 0.78 1,309 SVB Financial Group 482,559 730,985 2.52
10,656 Synovus Financial Corp. 421,240 468,757 1.61 3,650 Timberland Bancorp. Inc. 100,040 103,222 0.36 7,020 Trico Bancshares 279,907 299,333 1.03
14,107 Truist Financial Corp. 710,926 785,337 2.70 13,417 US Bancorp. 664,975 762,891 2.62
3,122 Washington Trust Bancorp. 149,928 159,222 0.55 7,705 Western Alliance Bancorp. 533,262 714,562 2.46 6,766 Wells Fargo & Company 303,136 316,513 1.09
13,979 Zions Bancorp. 664,605 737,252 2.54 24,946,824 28,559,602 98.27
Listed Equities Total 25,197,242 28,837,062 99.22Portfolio of Investments 25,197,242 28,837,062 99.22Other Net Assets 225,676 0.78Net Assets 29,062,738 100.00
Manulife Advanced Fund SPC
107
Greater Bay Area Growth and Income Segregated Portfolio
Portfolio of Investments As at 30 June 2021
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed BondsBermuda
200,000 China Oil & Gas Group Limited 4.700% 30/Jun/2026 200,000 204,133 0.65 200,000 204,133 0.65
Cayman Islands200,000 21Vianet Group Inc. 7.875% 15/Oct/2021 202,600 201,459 0.64 250,000 Agile Group Holdings Limited 7.875% perp. 255,250 255,813 0.82 200,000 CDBL Funding 2 2.000% 4/Mar/2026 198,572 199,031 0.64 300,000 China Aoyuan Group 5.880% 1/Mar/2027 286,350 247,500 0.79 200,000 China Hongqiao Group 6.250% 8/Jun/2024 200,000 204,450 0.65 300,000 Country Garden Holdings 3.300% 12/Jan/2031 282,900 283,031 0.90 200,000 Geely Automobile 4.000% perp. 207,400 207,130 0.66 200,000 Health and Happiness 5.625% 24/Oct/2024 200,000 207,056 0.66 200,000 KWG Group Holdings Limited 7.400% 13/Jan/2027 199,480 200,750 0.64 200,000 Shimao Group Holdings Limited 3.450% 11/Jan/2031 189,750 186,862 0.60 200,000 Sunac China Holdings 6.500% 26/Jan/2026 190,500 193,167 0.62 200,000 Times China Holdings Limited 5.750% 14/Jan/2027 203,400 191,250 0.61 200,000 Weibo Corp. 3.375% 8/Jul/2030 201,214 205,597 0.66 200,000 Zhenro Properties Group Limited 6.700% 4/Aug/2026 198,680 179,142 0.57
3,016,096 2,962,238 9.46China
200,000 Guangzhou Development District 2.600% 15/Dec/2023 200,544 201,511 0.64 200,000 Zhongan Online P&C Insurance 3.125% 16/Jul/2025 200,000 200,672 0.64
400,544 402,183 1.28Hong Kong
200,000 AIA Group Limited 2.700% perp. 200,000 203,488 0.65 200,000 Airport Authority Hong Kong 2.400% perp. 200,000 200,194 0.64 200,000 Bank of China (Hong Kong) 5.900% perp. 199,500 215,926 0.69 200,000 Far East Horizon Limited 4.350% perp. 202,700 200,682 0.64 200,000 Hbis Group Hong Kong Company Limited 3.750% 18/Dec/2022 187,000 197,000 0.63 200,000 Lenovo Group Limited 5.875% 24/Apr/2025 227,718 227,368 0.73 200,000 Vanke Real Estate (Hong Kong) 3.500% 12/Nov/2029 198,682 207,185 0.66 300,000 Westwood Group Holdings Limited 2.800% 20/Jan/2026 303,153 304,350 0.97
1,718,753 1,756,193 5.61Jersey – Channel Islands
200,000 West China Cement Limited 4.950% 8/Jul/2026 200,000 200,000 0.64 200,000 200,000 0.64
Manulife Advanced Fund SPC
108
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed Bonds (continued)Virgin Islands (British)
200,000 Champion Path Holding 4.850% 27/Jan/2028 200,000 209,438 0.67 300,000 Chinalco Capital Holdings Limited 2.125% 3/Jun/2026 297,906 298,806 0.95 200,000 Coastal Emerald Limited 4.300% perp. 199,400 200,313 0.64 200,000 Easy Tactic Limited 11.750% 2/Aug/2023 200,000 196,750 0.63 200,000 Elect Global Investments Limited 4.100% perp. 203,000 205,128 0.66 200,000 GZ Metro Investment Finance BVI 2.310% 17/Sep/2030 198,566 191,065 0.61 200,000 JMH Company Limited 2.500% 9/Apr/2031 196,160 202,655 0.65 200,000 NWS Holdings 5.750% perp. 200,000 212,904 0.68 200,000 Road King Infrastructure 5.900% 5/Mar/2025 206,600 208,111 0.66 200,000 Shenzhen Investment Holdings Company 4.350% 26/Sep/2023 198,926 211,581 0.68 300,000 Studio City Finance 6.000% 15/Jul/2025 314,850 315,852 1.01
2,415,408 2,452,603 7.84
Listed Bonds Total 7,950,801 7,977,350 25.48
Listed EquitiesCayman Islands
30,000 AKESO Inc. 225,910 242,006 0.77 240,000 China Education Group Holdings Limited 552,371 535,234 1.71 200,000 China Lesso Group Holdings Limited 438,767 493,412 1.58
90,000 China Meidong Auto Holdings Limited 454,437 490,773 1.57 60,000 China Resources Land Limited 273,370 242,972 0.78 50,000 China Resources Mixc Lifesty Services Limited 308,152 342,182 1.09 50,000 EC Healthcare 56,948 90,004 0.29 31,041 Iclick Interactive Asia Group 300,891 335,553 1.07
150,000 Jinxin Fertility Group Limited 389,981 378,557 1.21 104,000 Jiumaojiu International Holdings Limited 433,297 425,169 1.36 400,000 KWG Living Group 406,087 512,984 1.64 300,000 KWG Property Holdings Limited 468,226 401,734 1.28
10,000 LexinFintech Holdings Limited 89,391 123,600 0.39 104,000 SITC International Holdings Company Limited 404,112 434,543 1.39
6,000 Tencent Holdings Limited 486,634 451,179 1.44 270,000 WEIMOB Inc. 583,192 595,185 1.91
40,000 Wharf Real Estate Investment Company Limited 236,762 232,542 0.74 297,000 Xin Point Holdings Limited 152,072 142,260 0.45
50,000 Yeahka Limited 353,716 314,499 1.00 6,614,316 6,784,388 21.67
Greater Bay Area Growth and Income Segregated Portfolio (continued)
Portfolio of Investments (continued) As at 30 June 2021
Manulife Advanced Fund SPC
109
Greater Bay Area Growth and Income Segregated Portfolio (continued)
Portfolio of Investments (continued) As at 30 June 2021
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed Equities (continued)China
60,000 A-Living Services Company Limited 249,506 298,597 0.95 18,000 BYD Company Limited 503,677 538,169 1.72 80,000 China Merchants Bank Company Limited – H 663,555 682,434 2.19 60,000 China Merchants Securities Company Limited – A 201,059 176,611 0.56
150,000 China Merchants Securities Company Limited – H 226,609 208,593 0.67 75,000 China Merchants Shekou Industrial Company Limited – A 143,194 127,096 0.41 78,000 Country Garden Services Holdings Company Limited 790,270 842,637 2.70 50,000 Da An Gene Company Limited – A 167,174 164,354 0.52 15,000 Eve Energy Company Limited – A 249,239 241,262 0.77 60,000 Foryou Corp. – A 284,052 293,237 0.94 25,000 Ganfeng Lithium Company Limited 346,925 373,407 1.19 99,923 Guangdong Hybribio Biotech Company Limited 490,417 510,466 1.63 35,000 Guangzhou KDT Machinery Company Limited – A 218,642 209,892 0.67 20,000 Guangzhou Tinci Materials Technology Company Limited 303,756 329,884 1.05 20,000 Huizhou Desay SV Automotive Company Limited – A 341,893 340,717 1.09 59,992 Keshun Waterproof Technology Company Limited – A 338,765 291,898 0.93
138,000 Kingfa Sci & Tech Company Limited 468,931 445,502 1.42 138,000 Ming Yang Smart Energy Group Limited 331,679 345,766 1.10
90,000 Ninestar Corp. – A 398,232 448,492 1.43 180,976 Ping an Bank Company Limited 623,164 633,534 2.02
40,000 Ping an Insurance 455,389 391,691 1.25 300,000 Shenzhen Expressway Company Limited 311,880 289,712 0.93
20,000 Shenzhen Inovance Technology Company Limited – A 205,455 229,848 0.73 22,000 Shenzhen S.C New Energy Technology Corp. – A 393,730 394,979 1.26
159,939 Shenzhen Sunline Tech Company Limited – A 459,476 452,962 1.45 40,000 Shenzhen Sunlord Electronics Company Limited – A 230,991 240,000 0.77
100,000 Shenzhen Topband Company Limited 231,866 278,412 0.89 9,629,526 9,780,152 31.24
Manulife Advanced Fund SPC
110
Greater Bay Area Growth and Income Segregated Portfolio (continued)
Portfolio of Investments (continued) As at 30 June 2021
Quantity / Par Value Description
Cost USD
Market Value USD
% of Net Assets
Listed Equities (continued)Hong Kong
65,000 AIA Group Limited 802,977 807,653 2.58 40,000 ASM Pacific Techology 527,957 541,826 1.73
100,000 BOC Hong Kong Holdings Limited 347,364 339,285 1.08 300,000 China Merchants Port Holdings 493,550 438,045 1.40 450,000 Guangdong Investment Limited 699,889 646,638 2.07
20,000 Hang Seng Bank 413,551 399,417 1.28 12,000 Hong Kong Exchanges & Clearing Limited 660,985 715,086 2.28 50,000 Link REIT 477,888 484,463 1.55 15,000 Sun Hung Kai Properties Limited 228,574 223,465 0.71 30,000 Techtronic Industries Company Limited 499,102 523,800 1.67
5,151,837 5,119,678 16.35United Kingdom
70,000 HSBC Holdings plc 436,283 404,245 1.29 436,283 404,245 1.29
United States2,000 ACM Research Inc. 197,382 210,300 0.67
197,382 210,300 0.67
Listed Equities Total 22,029,344 22,298,763 71.22Portfolio of Investments 29,980,145 30,276,113 96.70
Forward contracts#
AUD/USD (37,928) (0.12) AUD/USD (297) (0.00)USD/AUD (6) (0.00)Forward contracts Total (38,231) (0.12)
Other Net Assets 1,071,144 3.42Net Assets 31,309,026 100.00
# Counterparty is Citibank London.
Man
ulife
Adv
ance
d Fu
nd S
PC
111
Stat
emen
t of M
ovem
ents
in In
vest
men
t Por
tfolio
s
For t
he y
ear e
nded
30
June
202
1
Finan
cial a
ssets
at fa
ir valu
e thro
ugh p
rofit
or los
sCh
ina A
Fund
Bond
Fund
Asia
Pacifi
c Inc
ome a
nd
Grow
th Fu
ndU.S
. Ban
k Equ
ity Fu
ndGr
eater
Bay A
rea Gr
owth
and
Incom
e Fun
dCo
mbine
d30
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
20US
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DFin
ancia
l asset
sEq
uities
44,95
5,118
40
,462,4
94
– –
11,26
9,337
8,
927,5
16
28,83
7,062
18
,310,8
35
22,29
8,763
6,
490,2
01
107,3
60,28
0 74
,191,0
46
Austr
alia–
– –
– 2,
412,5
20
1,99
1,218
–
– –
– 2,
412,5
20
1,99
1,218
Be
rmud
a–
– –
– –
24,02
5 –
– –
– –
24,02
5 Ca
yman
Islan
ds–
– –
– 1,
736,9
29
1,53
2,979
–
– 6,
784,3
88
2,29
1,651
8,
521,3
17
3,82
4,630
Ch
ina 44
,955,1
18
40,46
2,494
–
– 1,
652,0
71
1,04
3,234
–
– 9,
780,1
52
2,67
8,288
56
,387,3
41
44,18
4,016
Ho
ng Ko
ng–
– –
– 1,
056,1
59
856,1
23
– –
5,11
9,678
1,
520,2
62
6,17
5,837
2,
376,3
85
Indon
esia
– –
– –
143,2
33
185,5
66
– –
– –
143,2
33
185,5
66
Luxem
bourg
– –
– –
– 30
,796
– –
– –
30,79
6 Ma
laysia
– –
– –
93,18
3 13
0,395
–
– –
– 93
,183
130,3
95
New Z
ealan
d–
– –
– 97
,927
297,6
26
– –
– –
97,92
7 29
7,626
Pu
erto R
ico–
– –
– –
– 27
7,460
–
– –
277,4
60
– Re
public
of Ko
rea (S
outh)
– –
– –
896,6
45
605,2
99
– –
– –
896,6
45
605,2
99
Singa
pore
– –
– –
922,1
67
809,2
02
– –
– –
922,1
67
809,2
02
Taiwa
n–
– –
– 2,
012,8
77
1,17
6,738
–
– –
– 2,
012,8
77
1,17
6,738
Th
ailand
– –
– –
245,6
26
244,3
15
– –
– –
245,6
26
244,3
15
United
King
dom
– –
– –
– –
– –
404,2
45
– 40
4,245
–
United
State
s–
– –
– –
– 28
,559,6
02
18,31
0,835
21
0,300
–
28,76
9,902
18
,310,8
35
Bond
s–
– 13
,347,3
07
14,86
1,026
6,
066,5
60
5,62
7,295
–
– 7,
977,3
50
4,76
1,483
27
,391,2
17
25,24
9,804
Be
rmud
a–
– –
– 40
7,920
20
0,888
–
– 20
4,133
59
1,676
61
2,053
79
2,564
Ca
yman
Islan
ds–
– –
316,4
32
1,23
2,482
1,
227,9
25
– –
2,96
2,238
1,
138,7
14
4,19
4,720
2,
683,0
71
China
– –
12,87
0,733
14
,544,5
94
390,2
87
202,0
32
– –
402,1
83
200,0
73
13,66
3,203
14
,946,6
99
Hong
Kong
– –
476,5
74
– 1,
143,5
45
985,0
90
– –
1,75
6,193
87
1,852
3,
376,3
12
1,85
6,942
Man
ulife
Adv
ance
d Fu
nd S
PC
112
Finan
cial a
ssets
at fa
ir valu
e thro
ugh p
rofit
or los
sCh
ina A
Fund
Bond
Fund
Asia
Pacifi
c Inc
ome a
nd
Grow
th Fu
ndU.S
. Ban
k Equ
ity Fu
ndGr
eater
Bay A
rea Gr
owth
and
Incom
e Fun
dCo
mbine
d30
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
2030
June
2021
30 Ju
ne 20
20US
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DBo
nds (
conti
nued
)Ind
ia–
– –
– 20
7,929
19
6,611
–
– –
– 20
7,929
19
6,611
Ind
onesi
a–
– –
– 66
5,042
57
0,084
–
– –
– 66
5,042
57
0,084
Jer
sey–C
hann
el Isla
nds
– –
– –
200,0
00
– –
– 20
0,000
–
400,0
00
– Ma
laysia
– –
– –
199,8
47
– –
– –
– 19
9,847
–
Mauri
tius–
– –
– –
450,2
71
– –
– –
– 45
0,271
Re
public
of Ko
rea (S
outh)
– –
– –
211,5
88
210,2
44
– –
– –
211,5
88
210,2
44
Singa
pore
– –
– –
394,5
20
573,9
15
– –
– –
394,5
20
573,9
15
United
State
s–
– –
– 20
7,501
19
5,973
–
– –
– 20
7,501
19
5,973
Vir
gin Isl
ands
(Britis
h)–
– –
– 80
5,899
81
4,262
–
– 2,
452,6
03
1,95
9,168
3,
258,5
02
2,77
3,430
Supra
natio
nals,
Gove
rnmen
ts an
d Loc
al Pu
blic A
uthori
ties,
Debt
Instru
ments
– –
28,51
5,110
14
,982,3
72
604,4
81
601,7
05
– –
– –
29,11
9,591
15
,584,0
77
China
– –
28,51
5,110
14
,982,3
72
– –
– –
– –
28,51
5,110
14
,982,3
72
Indon
esia
– –
– –
255,5
91
267,8
06
– –
– –
255,5
91
267,8
06
Repu
blic of
Korea
(Sou
th)–
– –
– 18
2,632
16
9,660
–
– –
– 18
2,632
16
9,660
Su
prana
tional
– –
– –
166,2
58
164,2
39
– –
– –
166,2
58
164,2
39
Fund
s–
– –
– 16
1,044
10
5,880
–
– –
– 16
1,044
10
5,880
Un
ited St
ates
– –
– –
161,0
44
105,8
80
– –
– –
161,0
44
105,8
80
Deriv
ative
s–
– 90
4,075
–
– –
– –
– 64
90
4,075
64
Fo
rward
curren
cy con
tracts
– –
904,0
75
– –
– –
– –
64
904,0
75
64
Total
finan
cial a
ssets
at fa
ir valu
e thro
ugh
profit
or los
s 44
,955,1
18
40,46
2,494
42
,766,4
92
29,84
3,398
18
,101,4
22
15,26
2,396
28
,837,0
62
18,31
0,835
30
,276,1
13
11,25
1,748
16
4,936
,207
115,1
30,87
1
Stat
emen
t of M
ovem
ents
in In
vest
men
t Por
tfolio
s (c
ontin
ued)
For t
he y
ear e
nded
30
June
202
1 (c
ontin
ued)
Man
ulife
Adv
ance
d Fu
nd S
PC
113
Stat
emen
t of M
ovem
ents
in In
vest
men
t Por
tfolio
s (c
ontin
ued)
For t
he y
ear e
nded
30
June
202
1 (c
ontin
ued)
Finan
cial li
abilit
ies at
fair v
alue t
hroug
h pro
fit or
loss
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S. B
ank E
quity
Fund
Grea
ter Ba
y Area
Grow
th an
d Inc
ome F
und
Comb
ined
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
30 Ju
ne 20
2130
June
2020
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Finan
cial li
abilit
ies
Deriv
ative
s–
– (1
,071,9
77)
– (2
8,908
) (6
,550)
– –
(38,2
31)
(1,31
4) (1
,139,1
16)
(7,86
4)Fo
rward
curre
ncy c
ontra
cts–
– (1
,071,9
77)
– (2
8,908
) (6
,550)
– –
(38,2
31)
(1,31
4) (1
,139,1
16)
(7,86
4)To
tal fin
ancia
l liab
ilities
at fa
ir valu
e thr
ough
profi
t or lo
ss–
– (1
,071,9
77)
– (2
8,908
) (6
,550)
– –
(38,2
31)
(1,31
4) (1
,139,1
16)
(7,86
4)
Man
ulife
Adv
ance
d Fu
nd S
PC
114
Perf
orm
ance
Tab
le
As
at 3
0 Ju
ne 2
021
and
30 J
une
2020
(Per
form
ance
reco
rd s
ince
ince
ptio
n)
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S.Ba
nk
Equit
y Fun
dGr
eater
Bay A
rea G
rowth
and
Incom
e Fun
d
Class
Class
AA
Class
ICla
ss P
Class
AA
Class
ICla
ss I3
Class
AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Inc
Class
AA
IncCla
ss I2
He
dged
Cla
ss AA
Cla
ss AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Class
AA
IncUS
DUS
DUS
DUS
DUS
DUS
DUS
DAU
DHK
DCA
DUS
DHK
DRM
BUS
DUS
DAU
DHK
DHK
DAs
at 30
June
2021
Total
Net
Asse
t Valu
e44
,106,1
13–
– 4,4
31,57
33,9
71,98
833
,468,9
269,0
63,69
21,8
70,48
945
,046,2
562,5
50,42
124
,834,5
5232
,837,4
73–
6,249
,551
15,08
6,989
4,528
,604
183,4
0850
,879,4
23
Net A
sset
Value
per S
hare
16.23
54–
– 13
.5894
13.96
8811.
9326
9.627
49.1
807
96.47
829.0
896
12.59
4012
5.5111
– 11.
9492
10.85
0410
.3436
92.51
1110
7.355
3
As at
30 Ju
ne 20
20To
tal N
et As
set V
alue
40,09
7,366
57,03
5–
10,50
1,718
3,607
,067
15,36
5,057
8,031
,638
1,643
,670
41,04
7,847
2,118
,485
16,04
2,952
24,48
1,580
– 5,4
04,06
32,5
41,82
862
1,231
– 25
,192,4
82
Net A
sset
Value
per S
hare
12.15
1914
.0529
– 12
.3072
12.61
9210
.6727
8.594
78.2
777
85.94
868.1
686
7.415
473
.7512
– 10
.3364
9.690
19.3
383
– 95
.7146
As at
30 Ju
ne 20
19To
tal N
et As
set V
alue
42,18
8,601
45,32
4–
25,01
3,911
4,294
,116
21,37
0,024
7,853
,360
1,768
,520
46,84
3,852
2,225
,765
36,51
0,568
101,83
2,859
3,147
,207
4,784
,567
6,842
,832
3,913
,948
– 53
,406,3
95
Net A
sset
Value
per S
hare
9.6811
11.16
73–
12.16
6712
.4406
10.41
639.3
433
9.195
894
.1014
8.991
910
.3638
103.8
387
106.2
890
9.569
19.3
015
9.185
8–
92.57
88
As at
30 Ju
ne 20
18To
tal N
et As
set V
alue
49,03
7,881
2,274
,612
– 26
,347,4
074,9
15,53
1–
7,724
,383
1,932
,378
44,23
2,215
2,056
,479
50,36
8,754
130,22
0,258
– 4,7
78,28
83,9
40,10
035
8,321
– 18
,046,4
45
Net A
sset
Value
per S
hare
10.01
7111.
5263
– 12
.1408
12.38
32–
9.281
09.2
289
93.90
039.0
507
11.77
41118
.5458
– 9.5
566
9.554
39.5
385
– 95
.5612
As at
30 Ju
ne 20
17To
tal N
et As
set V
alue
63,39
6,864
2,221
,498
– 29
,179,5
224,8
12,55
3–
5,220
,568
1,720
,393
40,28
9,559
2,130
,603
2,738
,585
22,55
2,402
– –
– –
– –
Net A
sset
Value
per S
hare
9.6911
11.12
35–
11.55
3311.
7542
– 9.3
434
9.342
294
.0450
9.212
210
.5190
105.3
851
– –
– –
– –
Man
ulife
Adv
ance
d Fu
nd S
PC
115
Perf
orm
ance
Tab
le (c
ontin
ued)
As
at 3
0 Ju
ne 2
021
and
30 J
une
2020
(Per
form
ance
reco
rd s
ince
ince
ptio
n) (c
ontin
ued)
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S.Ba
nk
Equit
y Fun
dGr
eater
Bay A
rea G
rowth
and
Incom
e Fun
d
Class
Class
AA
Class
ICla
ss P
Class
AA
Class
ICla
ss I3
Class
AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Inc
Class
AA
IncCla
ss I2
He
dged
Cla
ss AA
Cla
ss AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Class
AA
IncUS
DUS
DUS
DUS
DUS
DUS
DUS
DAU
DHK
DCA
DUS
DHK
DRM
BUS
DUS
DAU
DHK
DHK
DAs
at 30
June
2016
Total
Net
Asse
t Valu
e88,
152,85
61,9
86,55
7–
36,36
7,956
6,137
,784
– 4,7
92,07
21,3
58,93
936
,841,8
731,7
53,07
2–
– –
– –
– –
–
Net A
sset
Value
per S
hare
8.687
89.9
471
– 11.
8319
12.00
76–
8.754
88.7
81187
.6050
8.709
4–
– –
– –
– –
–
As at
30 Ju
ne 20
15To
tal N
et As
set V
alue
149,99
3,132
3,900
,421
– 42
,725,1
9510
,436,2
80–
5,233
,113
1,367
,893
39,95
7,130
1,994
,472
– –
– –
– –
– –
Net A
sset
Value
per S
hare
12.31
3614
.0613
– 12
.0495
12.19
64–
9.704
39.7
690
97.02
839.7
204
– –
– –
– –
– –
As at
30 Ju
ne 20
14To
tal N
et As
set V
alue
96,989
,445
9,606
,420
– 51
,241,4
4414
,246,4
64–
4,379
,533
1,058
,496
575,5
4897
8,123
– –
– –
– –
– –
Net A
sset
Value
per S
hare
6.622
87.5
438
– 11.
3180
11.42
53–
10.12
8210
.1423
101.2
458
10.12
93–
– –
– –
– –
–
As at
30 Ju
ne 20
13To
tal N
et As
set V
alue
110,96
9,464
9,740
,060
31,90
5,003
61,28
0,837
36,86
8,938
– –
– –
– –
– –
– –
– –
–
Net A
sset
Value
per S
hare
6.720
07.6
349
7.976
311.
4435
11.51
62–
– –
– –
– –
– –
– –
– –
As at
30 Ju
ne 20
12To
tal N
et As
set V
alue
79,874
,341
212,6
9635
,069,4
2828
,785,4
4050
,241,1
02–
– –
– –
– –
– –
– –
– –
Net A
sset
Value
per S
hare
7.516
58.5
187
8.767
410
.9262
10.97
33–
– –
– –
– –
– –
– –
– –
Man
ulife
Adv
ance
d Fu
nd S
PC
116
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S.Ba
nk
Equit
y Fun
dGr
eater
Bay A
rea G
rowth
and
Incom
e Fun
d
Class
Class
AA
Class
ICla
ss P
Class
AA
Class
ICla
ss I3
Class
AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Inc
Class
AA
IncCla
ss I2
He
dged
Cla
ss AA
Cla
ss AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Class
AA
IncUS
DUS
DUS
DUS
DUS
DUS
DUS
DAU
DHK
DCA
DUS
DHK
DRM
BUS
DUS
DAU
DHK
DHK
DAs
at 30
June
2011
Total
Net
Asse
t Valu
e100
,861,1
972,4
29,83
241
,872,2
8426
,834,7
9441
,053,3
02–
– –
– –
– –
– –
– –
– –
Net A
sset
Value
per S
hare
9.129
010
.3203
10.46
8110
.2728
10.28
76–
– –
– –
– –
– –
– –
– –
Perf
orm
ance
Tab
le (c
ontin
ued)
As
at 3
0 Ju
ne 2
021
and
30 J
une
2020
(Per
form
ance
reco
rd s
ince
ince
ptio
n) (c
ontin
ued)
(1)
No
trans
actio
n du
ring
the
year
/per
iod
Man
ulife
Adv
ance
d Fu
nd S
PC
117
Perf
orm
ance
Tab
le (c
ontin
ued)
As
at 3
0 Ju
ne 2
021
and
30 J
une
2020
(Per
form
ance
reco
rd s
ince
ince
ptio
n) (c
ontin
ued)
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S.Ba
nk
Equit
y Fun
dGr
eater
Bay A
rea G
rowth
and
Incom
e Fun
d
Class
Class
AA
Class
ICla
ss P
Class
AA
Class
ICla
ss I3
Class
AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Inc
Class
AA
IncCla
ss I2
He
dged
Cla
ss AA
Cla
ss AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Class
AA
IncUS
DUS
DUS
DUS
DUS
DUS
DUS
DAU
DHK
DCA
DUS
DHK
DRM
BUS
DUS
DAU
DHK
DHK
DFo
r the y
ear e
nded
30
June
2021
Highe
st iss
ue pr
ice pe
r sh
are17
.6039
n/a (1)
– 13
.8175
n/a (1)
11.45
199.9
786
9.4116
98.37
679.3
043
13.71
5313
5.822
7–
12.74
7812
.1967
11.19
4610
0.000
012
0.913
7
Lowe
st red
empti
on pr
ice
per s
hare
12.51
3616
.3648
– 12
.2952
12.88
0410
.8933
8.691
78.8
159
87.62
098.9
504
6.759
768
.3944
– 10
.7389
9.766
89.5
768
n/a (1)
96.91
67
For th
e yea
r end
ed 30
Ju
ne 20
20Hig
hest
issue
price
per
share
12.23
75n/a
(1)–
12.43
94n/a
(1)n/a
(1)9.6
479
9.290
895
.3926
9.115
911.
6631
115.87
17n/a
(1)10
.3432
9.809
39.3
321
– 97
.7160
Lowe
st red
empti
on pr
ice
per s
hare
8.920
2n/a
(1)–
11.75
1912
.4766
10.57
777.1
404
8.043
477
.2043
8.808
75.8
952
58.67
30116
.3403
9.674
68.2
288
8.204
3–
81.27
15
For th
e yea
r end
ed 30
Ju
ne 20
19Hig
hest
issue
price
per
share
11.06
48n/a
(1)–
12.41
61n/a
(1)10
.5962
9.389
29.2
157
94.22
299.0
353
12.23
2412
3.216
110
0.000
0n/a
(1)9.5
836
9.490
9–
95.94
53
Lowe
st red
empti
on pr
ice
per s
hare
7.864
79.8
282
– 11.
7138
11.98
01n/a
(1)8.4
596
8.539
686
.3896
8.349
38.7
776
88.24
57n/a
(1)n/a
(1)8.3
556
8.436
9–
82.28
42
(1)
No
trans
actio
n du
ring
the
year
/per
iod
Man
ulife
Adv
ance
d Fu
nd S
PC
118
Perf
orm
ance
Tab
le (c
ontin
ued)
As
at 3
0 Ju
ne 2
021
and
30 J
une
2020
(Per
form
ance
reco
rd s
ince
ince
ptio
n) (c
ontin
ued)
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S.Ba
nk
Equit
y Fun
dGr
eater
Bay A
rea G
rowth
and
Incom
e Fun
d
Class
Class
AA
Class
ICla
ss P
Class
AA
Class
ICla
ss I3
Class
AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Inc
Class
AA
IncCla
ss I2
He
dged
Cla
ss AA
Cla
ss AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Class
AA
IncUS
DUS
DUS
DUS
DUS
DUS
DUS
DAU
DHK
DCA
DUS
DHK
DRM
BUS
DUS
DAU
DHK
DHK
DFo
r the y
ear e
nded
30
June
2018
Highe
st iss
ue pr
ice pe
r sh
are12
.1382
n/a (1)
– 12
.7771
n/a (1)
– 10
.3492
10.02
4710
1.280
59.8
498
12.37
1712
4.557
0–
10.00
0010
.0000
10.00
00–
100.0
312
Lowe
st red
empti
on pr
ice
per s
hare
9.632
512
.6521
– 11.
5145
11.73
54–
9.219
99.3
889
97.06
009.1
924
10.55
7410
8.318
7–
n/a (1)
n/a (1)
n/a (1)
– n/a
(1)
For th
e yea
r end
ed 30
Ju
ne 20
17Hig
hest
issue
price
per
share
9.6911
n/a (1)
– 11.
8504
n/a (1)
– 9.4
041
9.370
694
.1913
9.245
310
.5245
102.5
134
– –
– –
– –
Lowe
st red
empti
on pr
ice
per s
hare
8.377
4n/a
(1)–
11.22
8611.
5958
– 8.5
663
n/a (1)
86.96
23n/a
(1)n/a
(1)n/a
(1)–
– –
– –
–
For th
e yea
r end
ed 30
Ju
ne 20
16Hig
hest
issue
price
per
share
11.91
64n/a
(1)–
12.15
31n/a
(1)–
9.715
39.4
869
95.67
709.4
389
– –
– –
– –
– –
Lowe
st red
empti
on pr
ice
per s
hare
7.877
812
.1149
– 11.
7872
11.98
82–
7.985
28.7
877
85.76
278.6
301
– –
– –
– –
– –
(1)
No
trans
actio
n du
ring
the
year
/per
iod
Man
ulife
Adv
ance
d Fu
nd S
PC
119
Perf
orm
ance
Tab
le (c
ontin
ued)
As
at 3
0 Ju
ne 2
021
and
30 J
une
2020
(Per
form
ance
reco
rd s
ince
ince
ptio
n) (c
ontin
ued)
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S.Ba
nk
Equit
y Fun
dGr
eater
Bay A
rea G
rowth
and
Incom
e Fun
d
Class
Class
AA
Class
ICla
ss P
Class
AA
Class
ICla
ss I3
Class
AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Inc
Class
AA
IncCla
ss I2
He
dged
Cla
ss AA
Cla
ss AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Class
AA
IncUS
DUS
DUS
DUS
DUS
DUS
DUS
DAU
DHK
DCA
DUS
DHK
DRM
BUS
DUS
DAU
DHK
DHK
DFo
r the y
ear e
nded
30
June
2015
Highe
st iss
ue pr
ice pe
r sh
are15
.5476
16.80
15–
12.04
84n/a
(1)–
10.44
3510
.4100
104.0
800
10.44
00–
– –
– –
– –
–
Lowe
st red
empti
on pr
ice
per s
hare
6.390
07.5
416
– 11.
3521
11.46
32–
9.457
88.6
121
99.78
469.7
269
– –
– –
– –
– –
For th
e yea
r end
ed 30
Ju
ne 20
14Hig
hest
issue
price
per
share
7.520
4n/a
(1)n/a
(1)11.
4220
n/a (1)
– 10
.1520
10.14
0010
1.210
010
.1300
– –
– –
– –
– –
Lowe
st red
empti
on pr
ice
per s
hare
6.196
47.3
168
7.847
811.
0666
11.16
79–
10.08
51n/a
(1)n/a
(1)9.0
692
– –
– –
– –
– –
For th
e yea
r end
ed 30
Ju
ne 20
13Hig
hest
issue
price
per
share
7.949
68.8
191
n/a (1)
11.53
0911.
2301
– –
– –
– –
– –
– –
– –
–
Lowe
st red
empti
on pr
ice
per s
hare
6.419
78.3
735
n/a (1)
10.97
4411.
0259
– –
– –
– –
– –
– –
– –
–
(1)
No
trans
actio
n du
ring
the
year
/per
iod
Man
ulife
Adv
ance
d Fu
nd S
PC
120
Perf
orm
ance
Tab
le (c
ontin
ued)
As
at 3
0 Ju
ne 2
021
and
30 J
une
2020
(Per
form
ance
reco
rd s
ince
ince
ptio
n) (c
ontin
ued)
China
A Fu
ndBo
nd Fu
ndAs
ia Pa
cific I
ncom
e and
Gr
owth
Fund
U.S.Ba
nk
Equit
y Fun
dGr
eater
Bay A
rea G
rowth
and
Incom
e Fun
d
Class
Class
AA
Class
ICla
ss P
Class
AA
Class
ICla
ss I3
Class
AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Inc
Class
AA
IncCla
ss I2
He
dged
Cla
ss AA
Cla
ss AA
Inc
Class
AA
Inc
Hedg
edCla
ss AA
Class
AA
IncUS
DUS
DUS
DUS
DUS
DUS
DUS
DAU
DHK
DCA
DUS
DHK
DRM
BUS
DUS
DAU
DHK
DHK
DFo
r the y
ear e
nded
30
June
2012
Highe
st iss
ue pr
ice pe
r sh
are8.0
061
n/a (1)
n/a (1)
10.90
1810
.9334
– –
– –
– –
– –
– –
– –
–
Lowe
st red
empti
on pr
ice
per s
hare
7.498
59.7
336
n/a (1)
10.29
5610
.3131
– –
– –
– –
– –
– –
– –
–
"For
the Pe
riod f
rom 21
Se
ptemb
er 20
10(D
ate of
Comm
ence
ment)
to
30 Ju
ne 20
11"
Highe
st iss
ue pr
ice pe
r sh
are10
.0000
10.65
7410
.0000
10.31
0010
.3570
– –
– –
– –
– –
– –
– –
–
Lowe
st red
empti
on pr
ice
per s
hare
8.904
710
.0640
n/a (1)
10.04
8310
.1923
– –
– –
– –
– –
– –
– –
–
(1)
No
trans
actio
n du
ring
the
year
/per
iod
Man
ulife
Adv
ance
d Fu
nd S
PC
121
Info
rmat
ion
on E
xpos
ure
aris
ing
from
Fin
anci
al D
eriv
ativ
e In
stru
men
ts (U
naud
ited)
The
gros
s an
d ne
t exp
osur
es a
risin
g fro
m th
e us
e of
fina
ncia
l der
ivat
ive
inst
rum
ents
(as
a p
ropo
rtion
to th
e S
egre
gate
d P
ortfo
lio’s
tota
l net
ass
et v
alue
) du
ring
the
year
s en
ded
30 J
une
2021
and
30
June
202
0 w
ere
as fo
llow
:
Year
end
ed 3
0 Ju
ne 2
021
Gros
s exp
osur
eNe
t exp
osur
e
Chin
a A F
und
Bond
Fun
d
Asia
Pacifi
c In
com
e and
Gr
owth
Fun
dU.
S. B
ank
Equi
ty F
und
Grea
ter B
ay
Area
Gro
wth
and
Inco
me F
und
Chin
a A F
und
Bond
Fun
d
Asia
Pacifi
c In
com
e and
Gr
owth
Fun
dU.
S. B
ank
Equi
ty F
und
Grea
ter B
ay
Area
Gro
wth
and
Inco
me F
und
Max
0.00%
29.12
%39
.05%
0.00%
22.95
%0.0
0%15
.49%
19.87
%0.0
0%12
.04%
Min
0.00%
0.00%
16.60
%0.0
0%3.5
8%0.0
0%0.0
0%0.0
0%0.0
0%0.0
0%Av
erag
e0.0
0%22
.38%
20.62
%0.0
0%8.1
5%0.0
0%10
.62%
2.34%
0.00%
1.33%
Year
end
ed 3
0 Ju
ne 2
020
Gros
s exp
osur
eNe
t exp
osur
e
Chin
a A F
und
Bond
Fun
d
Asia
Pacifi
c In
com
e and
Gr
owth
Fun
dU.
S. B
ank
Equi
ty F
und
Grea
ter B
ay
Area
Gro
wth
and
Inco
me F
und
Chin
a A F
und
Bond
Fun
d
Asia
Pacifi
c In
com
e and
Gr
owth
Fun
dU.
S. B
ank
Equi
ty F
und
Grea
ter B
ay
Area
Gro
wth
and
Inco
me F
und
Max
0.00%
0.00%
36.35
%3.1
9%26
.75%
0.00%
0.00%
20.38
%0.0
0%16
.57%
Min
0.00%
0.00%
15.64
%0.0
0%2.8
4%0.0
0%0.0
0%0.0
0%0.0
0%0.0
0%Av
erag
e0.0
0%0.0
0%19
.00%
0.66%
7.68%
0.00%
0.00%
2.31%
0.00%
1.56%
Manulife Advanced Fund SPC
Audited Financial Statementsfor the year ended 30 June 2021
Annual Report
Manulife Advanced Fund SPC