rhb golden dragon fund
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RHB GOLDEN DRAGON FUND
INTERIM REPORT 2021
For the financial period ended 30 June 2021
1
GENERAL INFORMATION ABOUT THE FUND
Name, Category and Type
Fund Name - RHB Golden Dragon Fund
Fund Category - Mixed Asset Fund
Fund Type - Growth and Income Fund
Investment Objective, Policy and Strategy
Objective of the Fund
This Fund aims to maximise total returns through a combination of long term* growth
of capital and current income.
* Note: “long term” in this context refers to a period of between 5 – 7 years.
Strategy
The Fund seeks to achieve its investment objective through a diversified portfolio of
equities and equity-linked securities issued by companies whose businesses are in the
Greater China (i.e. the People’s Republic of China, Hong Kong SAR and Taiwan)
(“China Equities”) and Malaysian fixed income securities.
The asset allocation of the Fund will be as follows:-
30% - 70% of
Net Asset Value
- Investments in securities of and securities relating to
companies whose businesses are in the Greater China (i.e. the
People’s Republic of China, Hong Kong SAR and Taiwan)
and are listed on the Greater China markets and/or other
markets.
30% - 70% of
Net Asset Value
- Investments in Malaysian fixed income securities, money
market instruments, cash and deposits with financial
institutions.
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Performance Benchmark
The performance of the Fund is benchmarked against the Golden Dragon Index which
is a composite benchmark comprising 50% Morgan Stanley Capital International
(MSCI) Golden Dragon Index (MYR) and 50% RAM qs MGS 3-7 (Medium).
Permitted Investments
This Fund may invest in securities traded on the Bursa Malaysia Securities Berhad or
any other market considered as an eligible market, unlisted securities, collective
investment schemes, securities/instruments in foreign markets, financial derivatives,
structured products, liquid assets (including money market instruments and deposits
with any financial institutions), participate in the lending of securities, and any other
investments permitted by the Securities Commission Malaysia from time to time.
Distribution Policy
Consistent with the Fund’s objective to maximize total returns through a combination
of long term growth of capital and current income, the Fund will distribute a portion
of its returns to unitholders. Distributions, if any, after deduction of taxation and
expenses are generally declared annually.
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MANAGER’S REPORT
MARKET REVIEW
Morgan Stanley Capital International (“MSCI”) China edged out 1.20% returns in
Hong Kong Dollar (“HKD”) terms over the period under review. The year 2021
started on a strong footing but started to correct from February 2021. On 25 January
2021, People’s Bank of China (“PBOC”) advisor Jun Ma stressed concerns over
asset bubbles as seen in housing and the stock market, and suggested policy
adjustment accordingly. The selloff in February 2021 was driven by (i) the near-
record-high multiples of MSCI China and Growth cohort; (ii) Hong Kong’s stamp
duty hike for stock trades (0.10% to 0.13%); and (iii) an aggressive United States
(“US”) bond yield spike that undermined risk appetite, especially for Growth stocks.
In March 2021, the sell-off was mainly targeted at Growth big-caps and China
American Depository Receipts (“ADRs”) Growth big-caps and China ADRs, rather
than broad-based, evidenced by the resilient performance of median level stocks and
Small-Mid Capitalization (“SMID”). Key drivers for the targeted correction include:
i) expectations of monetary normalization, along with extreme positioning
dislocation; and ii) regulatory and geopolitical overhangs.
In the second quarter of year 2021(“2Q21”), the market was range bound as the
concerns below were on the minds of investors. The unwind in China internet was a
key drag for first half of May 2021, which resulted from heightened policy scrutiny
and controversial headlines on Meituan. Meantime, commodity-linked plays gained
further tractions on the back of commodity price surge and high inflation data.
Nevertheless, these trends have been reversed in second half of May 2021, as led by
the government’s crackdown on commodity and crypto currency speculations, as
well as sharp Chinese Yuan Renminbi (“CNY”) appreciation which in aggregate
drove excess liquidity into China equities (especially Internet and Electric Vehicle
(“EV”) battery). Communication Service and Consumer Discretionary were the key
laggards due to weakness of China internet in first half of May 2021.
For the first half of year 2021 (“1H21”) for Malaysia 10-year Malaysian
Government Securities (“MGS”) sold of 60 basis points (“bps”) from 2.65 to 3.25,
in a tale of 2Q21, where the first quarter of year 2021 (“1Q21”) saw a sharp rise in
10-year MGS yields briefly breaking 3.50% before the rally we saw in the 2Q21.
This was mainly premised on tracking of the global United States Treasury (“UST”)
yields which witnesses a sharp rise in 1Q21 before renewed waves of COVID-19
caused by more deadly strains resulted in further lockdowns and denting the overall
global growth recovery and reopening of economies.
ECONOMIC REVIEW AND OUTLOOK
The Authorities stepped-up public health measures during the Lunar New Year
(“LNY”) period, imposing individual mobility restrictions for cross-region travels,
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especially regarding travellers returning to rural areas (mainly involving migrant
workers) during the holiday. This would likely lead to a tentative dent in the ongoing
recovery of consumption and services during the LNY holiday period. Moving
forward, authorities ring fenced the COVID-19 situation well and the economy soon
headed back to normal for the rest of the 1H21.
National Bureau of Statistics (“NBS”) manufacturing Purchasing Managers Index
(“PMI”) in June 2021 eased to 50.90, dragged by the output component. Non-
manufacturing PMI have lost some momentum, falling to 52.90 in June 2021, due
mainly to infections uptick in Guangdong province. Caixin manufacturing PMI fell
0.70 points to 51.30 points, with contractions in output, new orders and export orders
components.
PBOC also kept the policy stance unchanged in the 2Q21 meeting of Monetary
Policy Committee (“MPC”), while new comments such as “preventing risk from
overseas” and “maintaining economic stability” may imply additional support
should challenges arise in second half of year 2021 (“2H21”).
In terms of monetary policy, Bank Negara Malaysia (“BNM”) at its fourth MPC
meeting of the year has decided to keep the Overnight Policy Rate (“OPR”)
unchanged at 1.75%. BNM did not changed their overall rhetoric on macroeconomic
conditions and expect the near-term growth should improve from second quarter
onwards as the increased pace of vaccine roll-out should lift sentiments. We believe
BNM will likely keep the OPR unchanged (1.75%) for the rest of the year 2021.
This is premised on the expectation of better economic growth in 2H21 and rising
inflation expectations. Furthermore, the US Federal Reserve (“Fed”)’s recent
hawkish shift is expected to put BNM on pause from any further monetary easing.
REVIEW OF FUND PERFORMANCE AND STRATEGY DURING THE
FINANCIAL PERIOD
The Fund has underperformed the benchmark by -6.68%. The Fund returned
-2.37%* against its benchmark 4.31%* during the financial period under review.
Despite the tougher regulatory and competitive pressures in major sectors in China
in year 2021, equities mitigated the drag from fixed income portion. Positive
attribution primarily came from our stock selection in the materials, communication
services and industrials. The overweight in Taiwan also added value.
* Source: Lipper Investment Management (“Lipper IM”), 6 July 2021
MARKET OUTLOOK AND STRATEGY GOING FORWARD
Year 2021 is the start of the 14th Five Year Plan (“FYP”) which is particularly
important for the Chinese economy, both politically and economically. Importantly,
it is also the 100th anniversary of the founding of the Chinese Communist Party. As
5
we enter into year 2021, we expect China earnings per share (“EPS”) growth to
continue. We like structural themes – providing efficient healthcare to the masses
and improving its healthcare capabilities, renewable energy push towards carbon
neutrality, domestic tourism support and consumption and technological upgrades.
We continue our focus on domestic-oriented sectors as external headwinds and
geopolitical tensions remains in discussion. Additionally, we are positioned in
sectors that could benefit from a more permanent change in consumer behaviour due
to growing prevalence of e-commerce and income upgrade. The continuous focus
on manufacturing upgrade and renovation of old communities and logistic systems.
We are also mindful of policy headwinds in the real estate sector.
6
PERFORMANCE DATA
31.12.2020-
30.06.2021
%
Annual Total Returns
Year Ended 31 December
2020
%
2019
%
2018
%
2017
%
2016
%
RHB Golden Dragon
Fund
- Capital Return (2.37) 22.81 8.09 (7.74) 13.68 (5.15)
- Income Return - - - - - 7.56
- Total Return (2.37) 22.81 8.09 (7.74) 13.68 2.02
Golden Dragon Index
(RM) 4.31 15.92 13.01 (6.09) 16.20 6.02
Average Annual Returns
1 Year
30.06.2020-
30.06.2021
%
3 Years
30.06.2018-
30.06.2021
%
5 Years
30.06.2016-
30.06.2021
%
10 Years
30.06.2011-
30.06.2021
%
RHB Golden Dragon
Fund 10.38 6.70 8.72 5.69
Golden Dragon Index
(RM) 15.50 9.06 10.17 7.35
7
Performance of RHB Golden Dragon Fund
for the period from 30 June 2011 to 30 June 2021
Cumulative Return Over The Period (%)
Source: Lipper IM, 6 July 2021
The abovementioned performance figures are indicative returns based on daily Net
Asset Value of a unit (as per Lipper Database) since inception.
The calculation of the above returns is based on computation methods of Lipper.
Note : Past performance is not necessarily indicative of future performance and
unit prices and investment returns may go down, as well as up.
The abovementioned performance computations have been adjusted to
reflect distribution payments and unit splits wherever applicable.
8
As at
30 June 2021
As at 31 December
Fund Size 2020 2019 2018
Net Asset Value (RM million) 29.08 29.44 23.74 30.90
Units In Circulation (million) 44.69 44.17 43.75 61.54
Net Asset Value Per Unit (RM) 0.6507 0.6665 0.5427 0.5021
01.01.2021-
Financial Year Ended
31 December
Historical Data 30.06.2021 2020 2019 2018
Unit Prices
NAV - Highest (RM) 0.7632 0.6665 0.5563 0.5679
- Lowest (RM) 0.6146 0.5153 0.4947 0.5009
Distribution and Unit Split - - - -
Others
Management Expense Ratio
(MER) (%)# 0.99 2.05 2.06 2.08
Portfolio Turnover Ratio
(PTR) (times)## 0.34 0.70 0.93 0.56
# The MER for the financial period was lower compared with the previous
financial period due to higher average net asset value for the financial period
under review.
## The PTR for the financial period was lower compared with the previous
financial period due to higher average net asset value for the financial period
under review.
DISTRIBUTION
For the financial period under review, no distribution has been proposed by the Fund.
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PORTFOLIO STRUCTURE
The asset allocations of the Fund as at reporting date were as follows:
As at 30 June As at 31 December
2021 2020 2019 2018
Sectors % % % %
Equities
Consumer Products &
Services 19.35 16.76 10.83 7.25
Energy 0.89 0.69 1.52 0.72
Financial Services 9.67 11.10 11.52 13.42
Health Care 3.20 3.66 0.55 -
Industrial Products & Services 4.40 3.84 0.52 1.75
Materials 3.46 1.74 1.38 -
Property - 0.98 5.28 7.02
Technology 12.62 13.28 10.58 9.35
Telecommunications &
Media 12.75 12.11 10.11 2.39
Trading/Services - - - 2.52
66.34 64.16 52.29 44.42
Collective investment
schemes - - - 3.04
Unquoted fixed income
securities 22.14 31.30 46.17 48.15
Liquid assets and other net
current assets 11.52 4.54 1.54
4.39
100.00 100.00 100.00 100.00
The asset allocations of the Fund’s reflect the Manager stance to risk manage the
portfolio in the volatile markets.
10
BREAKDOWN OF UNIT HOLDINGS BY SIZE
Account Holders No. Of Units Held*
Size of Holdings No. % (‘000) %
5,000 and below 177 29.26 488 1.09
5,001 to 10,000 112 18.51 781 1.75
10,001 to 50,000 246 40.66 5,361 12.00
50,001 to 500,000 62 10.25 7,789 17.43
500,001 and above 8 1.32 30,266 67.73
Total 605 100.00 44,685 100.00
*Excluding Manager’s stock
SOFT COMMISSION
The Fund Manager may only receive soft commission in the form of research and
advisory services that assist in the decision-making process relating to the Fund’s
investments.
During the financial period under review, the soft commission received from the
brokers had been retained by the Manager as the goods and services provided are of
demonstrable benefit to the unitholders.
11
RHB GOLDEN DRAGON FUND
UNAUDITED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
Note 30.06.2021 31.12.2020
RM RM
ASSETS
Bank balances 5 3,058,138 389,299
Deposits with licensed financial
institutions 5 242,888
1,003,768
Investments 6 25,731,738 28,100,028
Amount due from brokers 437,546 -
Dividend receivables 34,525 8,755
Other receivables - 54
TOTAL ASSETS 29,504,835 29,501,904
LIABILITIES
Amount due to brokers 281,404 -
Amount due to Manager 74,271 -
Amount due to Trustee 1,414 1,462
Accrued management fee 42,422 43,846
Other payables and accruals 24,675 21,209
TOTAL LIABILITIES 424,186 66,517
NET ASSET VALUE
29,080,649
29,435,387
EQUITY
Unitholders’ capital 93,461,228 92,953,305
Accumulated losses (64,380,579) (63,517,918)
29,080,649 29,435,387
UNITS IN CIRCULATION (UNITS) 7 44,690,000 44,167,000
NET ASSET VALUE PER UNIT (RM) 0.6507 0.6665
The accompanying notes are an integral part of the financial statements.
12
RHB GOLDEN DRAGON FUND
UNAUDITED STATEMENT OF INCOME AND EXPENSES
FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2021
Note
01.01.2021-
30.06.2021
01.01.2020-
30.06.2020
RM RM
(LOSS)/INCOME
Dividend income 93,833 125,760
Interest income from deposits with
licensed financial institutions 6,603 1,608
Interest income from investments 290,430 315,555
Net (loss)/gain on investments 6 (893,050) 1,741,995
Net foreign currency exchange gain 16,572 95,185
(485,612) 2,280,103
EXPENSES
Management fee 8 (269,708) (211,163)
Trustee’s fee 9 (8,991) (7,039)
Audit fee (3,352) (3,362)
Tax agent’s fee (6,906) (17,765)
Transaction cost (68,373) (52,546)
Other expenses (19,719) (20,958)
(377,049) (312,833)
Net (loss)/income before taxation (862,661) 1,967,270
Taxation 10 - -
Net (loss)/income after taxation (862,661) 1,967,270
Net (loss)/income after taxation made
up as follow:
Realised amount 2,597,930 1,613,659
Unrealised amount (3,460,591) 353,611
(862,661) 1,967,270
The accompanying notes are an integral part of the financial statements.
13
RHB GOLDEN DRAGON FUND
UNAUDITED STATEMENT OF CHANGES IN NET ASSET VALUE
FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2021
Unitholders’
capital
Accumulated
losses
Total net
asset value
RM RM RM
Balance as at 1 January 2020 92,554,717 (68,815,228) 23,739,489
Movement in net asset value:
Net income after taxation - 1,967,270 1,967,270
Creation of units arising
from applications 285,875
- 285,875
Cancellation of units (1,607,167) - (1,607,167)
Balance as at 30 June 2020 91,233,425 (66,847,958) 24,385,467
Balance as at 1 January 2021 92,953,305 (63,517,918) 29,435,387
Movement in net asset value:
Net loss after taxation - (862,661) (862,661)
Creation of units arising from
applications 6,831,650
- 6,831,650
Cancellation of units (6,323,727) - (6,323,727)
Balance as at 30 June 2021 93,461,228 (64,380,579) 29,080,649
The accompanying notes are an integral part of the financial statements.
14
RHB GOLDEN DRAGON FUND
UNAUDITED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2021
01.01.2021-
30.06.2021
01.01.2020-
30.06.2020
RM RM
CASH FLOWS FROM OPERATING
ACTIVITIES
Proceeds from redemption of investments 362,000 -
Proceeds from sale of investments 11,668,602 10,361,906
Purchase of investments (10,647,462) (8,843,844)
Interest received from unquoted fixed
income securities
152,597 313,457
Interest received from deposits with
financial institutions
6,603 1,608
Dividends received 59,135 79,210
Management fee paid (271,132) (211,602)
Trustee’s fee paid (9,039) (7,053)
Payment for other fees and expenses (17,571) (27,337)
Net cash generated from operating
activities
1,303,733 1,666,345
CASH FLOWS FROM FINANCING
ACTIVITIES
Cash proceeds from units created 6,831,650 285,875
Cash paid for units cancelled (6,249,456) (1,629,585)
Net cash generated from/(used in)
financing activities
582,194 (1,343,710)
Net increase in cash and cash equivalents 1,885,927 322,635
Foreign currency translation differences 22,032 91,624
Cash and cash equivalents at the
beginning of the financial period
1,393,067 515,192
Cash and cash equivalents at the end of
the financial period
3,301,026 929,451
The accompanying notes are an integral part of the financial statements.
15
RHB GOLDEN DRAGON FUND
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2021
1. THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES
The RHB Golden Dragon Fund (hereinafter referred to as “the Fund”) was
constituted pursuant to the execution of a master deed dated 27 April 2004 as
modified via its first supplemental master deed dated 8 June 2004, second
supplemental master deed dated 19 October 2005, third supplemental master deed
dated 8 December 2005, fourth supplemental master deed dated 28 February 2006,
fifth supplemental master deed dated 9 March 2006, sixth supplemental master deed
dated 22 September 2006, seventh supplemental master deed dated 15 December
2006, eighth supplemental master deed dated 30 January 2007, ninth supplemental
master deed dated 9 April 2007, tenth supplemental master deed dated 14 May 2007,
eleventh supplemental master deed dated 15 May 2007, twelfth supplemental master
deed dated 27 June 2007, thirteenth supplemental master deed dated 24 December
2007, fourteenth supplemental master deed dated 28 February 2013, fifteenth
supplemental master deed dated 4 September 2013, sixteenth supplemental master
deed dated 2 March 2015, seventeenth supplemental master deed dated 8 May 2015,
eighteenth supplemental master deed dated 25 May 2015 and nineteenth
supplemental master deed dated 3 June 2015 (hereinafter referred to as “the Deeds”)
between RHB Asset Management Sdn Bhd (“the Manager”) and HSBC (Malaysia)
Trustee Berhad (“the Trustee”).
The Fund was launched on 8 May 2007 and will continue its operations until
terminated according to the conditions provided in the Deeds.
The principal activity of the Fund is to invest in Permitted Investments as defined
under the Deeds.
All investments will be subject to the Securities Commission’s (“SC”) Malaysia
Guidelines on Unit Trust Funds, SC requirements, the Deeds, except where
exemptions or variations have been approved by the SC, internal policies and
procedures and objective of the Fund.
The main objective of the Fund is to maximise total returns through a combination
of long term (between 5 – 7 years) growth of capital and current income.
The Manager, a company incorporated in Malaysia, and is a wholly-owned
subsidiary of RHB Investment Bank Berhad, effective 6 January 2003. Its principal
activities include rendering of investment management services, management of unit
trust funds and private retirement schemes and provision of investment advisory
services.
These financial statements were authorised for issue by the Manager on 23 August
2021.
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of preparation of the financial statements
The financial statements have been prepared under the historical cost convention, as
modified by the revaluation of financial assets and financial liabilities (including
derivative instruments) at fair value through profit or loss, except those as disclosed
in the summary of significant accounting policies, and in accordance with Malaysian
Financial Reporting Standards (“MFRS”) and International Financial Reporting
Standards (“IFRS”).
The preparation of financial statements in conformity with MFRS and IFRS requires
the use of certain critical accounting estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of income
and expenses during the financial period. It also requires the Manager to exercise its
judgement in the process of applying the Fund’s accounting policies. Although these
estimates and judgement are based on the Manager’s best knowledge of current
events and actions, actual results may differ.
(a) The Fund has applied the following amendments and interpretations for the
first time for the financial period beginning on 1 January 2021:
The Conceptual Framework for Financial Reporting (“Framework”)
(effective 1 January 2020)
The Framework was revised with the primary purpose to assist the
International Accounting Standards Board (“IASB”) to develop IFRS
that are based on consistent concepts and enable preparers to develop
consistent accounting policies where an issue is not addressed by an
IFRS.
Key changes include:
- increasing the prominence of stewardship in the objective of
financial reporting
- reinstating prudence as a component of neutrality
- defining a reporting entity, which may be a legal entity, or a
portion of an entity
- revising the definitions of an asset and a liability
- removing the probability threshold for recognition and adding
guidance on derecognition
- adding guidance on different measurement basis, and
17
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.1 Basis of preparation of the financial statements (continued)
(a) The Fund has applied the following amendments and interpretations for the
first time for the financial period beginning on 1 January 2021: (continued)
The Conceptual Framework for Financial Reporting (“Framework”)
(effective 1 January 2020) (continued)
Key changes include: (continued)
- stating that profit or loss is the primary performance indicator and
that, in principle, income and expenses in other comprehensive
income should be recycled where this enhances the relevance or
faithful representation of the financial statements.
No changes are made to any of the current accounting standards.
However, entities that rely on the Framework in determining their
accounting policies for transactions, events or conditions that are not
otherwise dealt with under the accounting standards have to apply
the revised Framework from 1 January 2021.
Amendments to MFRS 101 and MFRS 108 ‘Definition of Material’
(effective 1 January 2020) clarify the definition of materiality and use
a consistent definition throughout MFRSs and the Conceptual
Framework for Financial Reporting.
The revised Framework and adoption of the amendments to published
standards did not have any impact on the current period or any prior period
and is not likely to affect future periods.
(b) A number of new standards, amendments to standards and interpretations are
effective for annual periods beginning after 1 January 2021, and have not been
early adopted in preparing these financial statements. None of these are
expected to have a material effect on the financial statements of the Fund.
18
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.2 Financial assets
Classification
The Fund classifies its financial assets in the following measurement categories:
those to be measured subsequently at fair value through profit or loss
(“FVTPL”), and
those to be measured at amortised cost.
The Fund classifies its investments based on both the Fund’s business model for
managing those financial assets and the contractual cash flow characteristics of the
financial assets. The portfolio of financial assets is managed and performance is
evaluated on a fair value basis. The Fund is primarily focused on fair value
information and uses that information to assess the assets’ performance and to make
decisions. The Fund has not taken the option to irrevocably designate any equity
securities as fair value through other comprehensive income. The contractual cash
flows of the Fund’s debt securities are solely principal and interest, however, these
securities are neither held for the purpose of collecting contractual cash flows nor
held both for collecting contractual cash flows and for sale. The collection of
contractual cash flows is only incidental to achieving the Fund’s business model’s
objective. Consequently, all investments are measured at fair value through profit or
loss.
The Fund classifies cash and cash equivalents, amount due from brokers, dividend
receivables and other receivables as financial assets measured at amortised cost as
these financial assets are held to collect contractual cash flows consisting of the
amount outstanding.
Recognition and measurement
Regular purchases and sales of financial assets are recognised on the trade date - the
date on which the Fund commits to purchase or sell the asset. Financial assets and
financial liabilities at fair value through profit or loss are initially recognised at fair
value. Transaction costs are expensed as incurred in the statement of income and
expenses.
Financial assets are derecognised when the rights to receive cash flows from the
investments have expired or the Fund has transferred substantially all risks and
rewards of ownership.
19
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.2 Financial assets (continued)
Recognition and measurement (continued)
Subsequent to initial recognition, all financial assets at fair value through profit or
loss are measured at fair value. Gains or losses arising from changes in the fair value
of the ‘financial assets at fair value through profit or loss’ category are presented in
statement of income and expenses within net gain or losses on investments in the
period in which they arise.
Dividend income from financial assets at fair value through profit or loss is
recognised in the statement of income and expenses within dividend income when
the Fund’s right to receive payments is established.
Interest on debt securities at fair value through profit or loss is recognised in the
statement of income and expenses.
Quoted investments are initially recognised at fair value and subsequently re-
measured at fair value based on the market price quoted on the relevant stock
exchanges at the close of the business on the valuation day, where the close price
falls within the bid-ask spread. In circumstances where the close price is not within
the bid-ask spread, the Manager will determine the point within the bid-ask spread
that is most representative of the fair value.
If a valuation based on the market price does not represent the fair value of the
securities, for example during abnormal market conditions or when no market price
is available, including in the event of a suspension in the quotation of the securities
for a period exceeding 14 days, or such shorter period as agreed by the Trustee, then
the securities are valued as determined in good faith by the Manager, based on the
methods or bases approved by the Trustee after appropriate technical consultation.
Unquoted fixed income securities denominated in Ringgit Malaysia are revalued on
a daily basis based on fair value prices quoted by a bond pricing agency (“BPA”)
registered with the SC as per the SC Malaysia Guidelines on Unit Trust Funds.
20
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.2 Financial assets (continued)
Recognition and measurement (continued)
Where such quotations are not available or where the Manager is of the view that
the price quoted by the BPA price for a specific unquoted fixed income security
differs from the market price by more than 20 basis points, the Manager may use the
market price, provided that the Manager:
(i) Records its basis for using a non-BPA price;
(ii) Obtains necessary internal approvals to use the non-BPA price; and
(iii) Keeps an audit trail of all decisions and basis for adopting the market price.
Deposits with licensed financial institutions are stated at cost plus accrued interest
calculated on the effective interest method over the period from the date of
placement to the date of the statement of financial position, which is a reasonable
estimate of fair value due to the short-term nature of the deposits.
Financial assets at amortised cost are subsequently carried at amortised cost using
the effective interest method.
Impairment of financial assets
The Fund measures credit risk and expected credit losses using probability of
default, exposure at default and loss given default. Management considers both
historical analysis and forward-looking information in determining any expected
credit loss. Management considers the probability of default to be close to zero as
these instruments have a low risk of default and the counterparties have a strong
capacity to meet their contractual obligations in the near term. As a result, no loss
allowance has been recognised based on the 12-month expected credit losses as any
such impairment would be wholly insignificant to the Fund.
Significant increase in credit risk
A significant increase in credit risk is defined by management as any contractual
payment which is more than 30 days past due or a counterparty credit rating which
has fallen below BBB/Baa.
21
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.2 Financial assets (continued)
Definition of default and credit-impaired financial assets
Any contractual payment which is more than 90 days past due is considered credit
impaired.
Write-off
The Fund writes off financial assets, in whole or in part, when it has exhausted all
practical recovery efforts and has concluded there is no reasonable expectation of
recovery. The assessment of no reasonable expectation of recovery is based on the
unavailability of debtor’s sources of income or assets to generate sufficient future
cash flows to repay the amount. The Fund may write off financial assets that are still
subject to enforcement activity. Subsequent recoveries of amounts previously
written off will result in impairment gains. There are no write-offs/recoveries during
the financial period.
2.3 Financial liabilities
Financial liabilities are classified according to the substance of the contractual
arrangements entered into and the definitions of a financial liability.
Financial liabilities, within the scope of MFRS 9, are recognised in the statement of
financial position when, and only when, the Fund becomes a party to the contractual
provisions of the financial instrument.
The Fund’s financial liabilities which include amount due to brokers, amount due to
Manager, amount due to Trustee, accrued management fee, and other payables and
accruals are recognised initially at fair value plus directly attributable transaction
cost and subsequently measured at amortised cost using the effective interest
method.
A financial liability is derecognised when the obligation under the liability is
extinguished. Gains and losses are recognised in statement of income and expenses
when the liabilities are derecognised, and through the amortisation process.
22
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.4 Unitholders’ capital
The unitholders’ contributions to the Fund meet the criteria of the definition of
puttable instruments to be classified as equity instruments under MFRS 132
“Financial Instruments: Presentation”. These criteria include:
the units entitle the holder to a proportionate share of the Fund’s net asset value;
the units are the most subordinated class and class features are identical;
there is no contractual obligation to deliver cash or another financial asset other
than the obligation on the Fund to repurchase; and
the total expected cash flows from the units over its life are based substantially
on the statement of income and expenses of the Fund.
The outstanding units are carried at the redemption amount that is payable at each
financial year if the unitholders exercise the right to put the units back to the Fund.
Units are created and cancelled at prices based on the Fund’s net asset value per unit
at the time of creation or cancellation. The Fund’s net asset value per unit is
calculated by dividing the net assets attributable to unitholders with the total number
of outstanding units.
2.5 Income recognition
Dividend income from quoted investments is recognised when the Fund’s right to
receive payment is established. Dividend income is received from financial assets
measured at FVTPL.
Interest income from deposits with licensed financial institutions and unquoted fixed
income securities are recognised on an accrual basis using the effective interest
method.
Interest income is calculated by applying the effective interest rate to the gross
carrying amount of a financial asset except for financial assets that subsequently
become credit-impaired. For credit-impaired financial assets, the effective interest
rate is applied to the net carrying amount of the financial assets (after deduction of
the loss allowance).
Realised gain or loss on sale of quoted investments is arrived at after accounting for
cost of investments, determined on the weighted average cost method.
23
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.5 Income recognition (continued)
Realised gain or loss on sale of unquoted fixed income securities are measured by
the difference between disposal proceeds and the carrying amount of investments
(adjusted for accretion of discount or amortisation of premium).
Net income or loss is the total of income less expenses.
2.6 Taxation
Current tax expense is determined according to Malaysian tax laws and includes all
taxes based upon the taxable income earned during the financial period.
Tax on dividend income from foreign quoted investments is based on the tax regime
of the respective countries that the Fund invests in.
2.7 Cash and cash equivalents
For the purpose of the statement of cash flows, cash and cash equivalents comprise
bank balances and deposits with licensed financial institutions which are subject to
an insignificant risk of changes in value.
2.8 Amount due from/to brokers
Amounts due from/to brokers represent receivables for securities sold and payables
for securities purchased that have been contracted for but not yet settled or delivered
on the date of the statement of financial position respectively. The amount due from
brokers balance is held for collection.
These amounts are recognised initially at fair value and subsequently measured at
amortised cost. At each reporting date, the Fund shall measure the loss allowance on
amounts due from brokers at an amount equal to the lifetime expected credit losses
if the credit risk has increased significantly since initial recognition. If, at the
reporting date, the credit risk has not increased significantly since initial recognition,
the Fund shall measure the loss allowance at an amount equal to 12-month expected
credit losses. Significant financial difficulties of the brokers, probability that the
brokers will enter bankruptcy or financial reorganisation, and default in payments
are all considered indicators that a loss allowance may be required.
24
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.9 Presentation and functional currency
Items included in the financial statements of the Fund are measured using the
currency of the primary economic environment in which the Fund operates (the
“functional currency”). The financial statements are presented in Ringgit Malaysia
(“RM”), which is the Fund’s presentation and functional currency.
Due to mixed factors in determining the functional currency of the Fund, the
Manager has used its judgement to determine the functional currency that most
faithfully represents the economic effects of the underlying transactions, events and
conditions and have determined the functional currency to be in RM primarily due
to the following factors:
Part of the Fund’s cash is denominated in RM for the purpose of making
settlement of the creation and cancellation.
The Fund’s units are denominated in RM.
The Fund’s significant expenses are denominated in RM.
2.10 Foreign currency translation
Foreign currency transactions in the Fund are accounted for at exchange rates
prevailing at the transaction dates. Foreign currency monetary assets and liabilities
are translated at exchange rates prevailing at the reporting date. Exchange
differences arising from the settlement of foreign currency transactions and from the
translation of foreign currency monetary assets and liabilities are recognised in
statement of income and expenses.
25
3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Fund is exposed to a variety of risks, which include market risk, price risk,
interest rate risk, currency risk, credit risk, liquidity risk and capital risk.
Financial risk management is carried out through internal control processes adopted
by the Manager and adherence to the investment restrictions as stipulated in the SC
Malaysia Guidelines on Unit Trust Funds.
Market risk
Securities may decline in value due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of a security
may decline due to general market conditions which are not specifically related to a
particular company, such as real or perceived adverse economic conditions, changes
in the general outlook for corporate earnings, changes in interest or currency rates
or adverse investors’ sentiment generally. They may also decline due to factors that
affect a particular industry or industries, such as labour shortages or increased
production costs and competitive conditions within an industry. Equity securities
generally have greater price volatility than fixed income securities. The market price
of securities owned by a unit trust fund might go down or up, sometimes rapidly or
unpredictably.
Price risk
Price risk is the risk that the fair value of the investments of the Fund will fluctuate
because of changes in market prices.
The Fund is exposed to equity securities (other than those arising from interest rate
risk) price risk for its investments of RM19,292,673 (31.12.2020: RM18,887,383)
in quoted investments.
The Fund is also exposed to price risk arising from interest rate risk in relation to its
investments of RM6,439,065 (31.12.2020: RM9,212,645) in unquoted fixed income
securities. The Fund’s exposure to price risk arising from interest rate risk and the
related sensitivity analysis are disclosed in “Interest rate risk” below.
The sensitivity analysis is based on the assumption that the price of the quoted
investments fluctuate by +/(-) 5% with all other variables held constant, the impact
on statement of income and expense and net asset value is +/(-) RM964,634
(31.12.2020: RM944,369).
26
3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
(CONTINUED)
Interest rate risk
In general, when interest rates rise, unquoted fixed income securities prices will tend
to fall and vice versa. Therefore, the net asset value of the Fund may also tend to fall
when interest rates rise or are expected to rise. In order to mitigate interest rates
exposure of the Fund, the Manager will manage the duration of the portfolio via
shorter or longer tenured assets depending on the view of the future interest rate
trend of the Manager, which is based on its continuous fundamental research and
analysis.
This risk is crucial since unquoted fixed income securities portfolio management
depends on forecasting interest rate movements. Prices of unquoted fixed income
securities move inversely to interest rate movements, therefore as interest rates rise,
the prices of unquoted fixed income securities decrease and vice versa. Furthermore,
unquoted fixed income securities with longer maturity and lower yield coupon rates
are more susceptible to interest rate movements.
The table below summarises the sensitivity of the Fund’s profit or loss and net asset
value as at reporting date to movements in prices of unquoted fixed income securities
held by the Fund as a result of movement in interest rate fluctuation by +/(-) 1% with
all other variables held constant.
% Change in
interest rate
Impact on profit
or loss and net asset value
30.06.2021 31.12.2020
RM RM
+1% (27,655) (36,805)
- 1% 28,110 37,108
The Fund’s exposure to interest rate risk arises from investment in money market
instruments is expected to be minimal as the Fund’s investments comprise mainly
short term deposits with approved licensed financial institutions.
27
3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
(CONTINUED)
Currency risk
Currency risk is associated with financial instruments that are quoted and/or priced
in foreign currency denomination. Malaysian based investor should be aware that if
the Ringgit Malaysia appreciates against the currencies in which the portfolio of the
investment is denominated, this will have an adverse effect on the net asset value of
the Fund and vice versa. The Fund did not have any significant financial liabilities
denominated in foreign currencies as at the financial period end date.
The Manager or its fund management delegate could utilise two pronged approaches
in order to mitigate the currency risk; firstly by spreading the investments across
different currencies (i.e. diversification) and secondly, by hedging the currencies
when it deemed necessary.
The analysis is based on the assumption that the foreign exchange rate fluctuates by
+/(-) 5%, with all other variables remain constants, the impact on statement of
income and expenses and net asset value is +/(-) RM1,124,642 (31.12.2020:
RM961,632).
The following table sets out the currency risk concentration of the Fund:
Investments
Cash and
cash
equivalents
Other
financial
assets/
(liabilities)*
Total
RM RM RM RM
30.06.2021
Chinese Yuan 1,674,422 15,354 1,395 1,691,171
Hong Kong Dollar 9,316,028 - 339,469 9,655,497
Taiwan Dollar 4,062,247 - 4,408 4,066,655
United States Dollar 4,239,976 2,994,154 (154,605) 7,079,525
19,292,673 3,009,508 190,667 22,492,848
31.12.2020
Chinese Yuan 1,271,910 14,024 - 1,285,934
Hong Kong Dollar 9,540,978 - - 9,540,978
Taiwan Dollar 3,346,707 - 8,809 3,355,516
United States Dollar 4,727,788 322,416 - 5,050,204
18,887,383 336,440 8,809 19,232,632
* Comprise of amount due from/(to) brokers, dividend receivables and other
receivables.
28
3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
(CONTINUED)
Credit risk
Credit risk refers to the possibility that the issuer of a particular investment will not
be able to make timely or full payments of principal or income due on that
investment. For investments in fixed income securities, risk is minimised by
spreading its maturity profile. The credit risk arising from cash and cash equivalents
is managed by ensuring that the Fund will only maintain cash balances and place
deposits with reputable licensed financial institutions. For amount due from brokers,
the settlement terms are governed by the relevant rules and regulations as prescribed
by the Bursa Malaysia Securities Berhad (“Bursa Malaysia”). The settlement terms
of the proceeds from the creation of units receivable from the Manager are governed
by the SC Malaysia Guidelines on Unit Trust Funds.
The following table sets out the credit risk concentration of the Fund:
Investments
Cash and
cash
equivalents
Other
financial
assets*
Total
RM RM RM RM
30.06.2021
AAA - 3,301,026 - 3,301,026
AA3 167,424 - - 167,424
BBB 4,054,432 - - 4,054,432
C3 699,238 - - 699,238
C 1,517,971 - - 1,517,971
Other - - 472,071 472,071
6,439,065 3,301,026 472,071 10,212,162
31.12.2020
AAA - 1,393,067 - 1,393,067
AA3 175,715 - - 175,715
AA- 4,555,321 - - 4,555,321
BBB 3,139,866 - - 3,139,866
BB1 1,341,743 - - 1,341,743
Other - - 8,809 8,809
9,212,645 1,393,067 8,809 10,614,521
* Comprise of amount due from brokers, dividend receivables and other receivables.
29
3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
(CONTINUED)
Liquidity risk
Liquidity risk is the risk that the Fund will encounter difficulty in meeting its
financial obligations.
Liquidity risk exists when particular investments are difficult to sell. As such, the
Fund may not be able to sell such illiquid investments at an advantageous time or
price to meet its liquidity requirements. Unit trust funds with principal investment
strategies that involve securities or securities with substantial market and/or credit
risk tend to have the greater exposure to liquidity risk. As part of its risk
management, the Manager will attempt to manage the liquidity of the Fund through
asset allocation and diversification strategies within the portfolio. The Manager will
also conduct constant fundamental research and analysis to forecast future liquidity
of its investments.
The table below summarises the Fund’s financial liabilities into relevant maturity
groupings based on the remaining period from the statement of financial position
date to the contractual maturity date. The amounts in the table are the contractual
undiscounted cash flows.
Less than
1 month
Between 1 month
to 1 year
RM RM
30.06.2021
Amount due to brokers 281,404 -
Amount due to Manager 74,271 -
Amount due to Trustee 1,414 -
Accrued management fee 42,422 -
Other payables and accruals - 24,675
399,511 24,675
31.12.2020
Amount due to Trustee 1,462 -
Accrued management fee 43,846 -
Other payables and accruals - 21,209
45,308 21,209
30
3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
(CONTINUED)
Capital risk
The capital of the Fund is represented by equity consisting of unitholders’ capital of
RM93,461,228 (31.12.2020: RM92,953,305) and accumulated losses of
RM64,380,579 (31.12.2020: RM63,517,918). The amount of equity can change
significantly on a daily basis as the Fund is subject to daily subscriptions and
redemptions at the discretion of unitholders. The Fund’s objective when managing
capital is to safeguard the Fund’s ability to continue as a going concern in order to
provide returns for unitholders and benefits for other stakeholders and to maintain a
strong capital base to support the development of the investment activities of the
Fund.
4. FAIR VALUE ESTIMATION
Fair value is defined as 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 (i.e. an exit price).
The fair value of financial assets and liabilities traded in an active market (such as
publicly traded derivatives and trading securities) are based on quoted market prices
at the close of trading on the financial period end date.
An active market is a market in which transactions for the assets or liabilities take
place with sufficient frequency and volume to provide pricing information on an
ongoing basis.
The fair value of financial assets and liabilities that are not traded in an active market
is determined by using valuation techniques. The Fund uses a variety of methods
and makes assumptions that are based on market conditions existing at each financial
period end date. Valuation techniques used for non-standardised financial
instruments such as options, currency swaps and other over-the-counter derivatives,
include the use of comparable recent transactions, reference to other instruments that
are substantially the same, discounted cash flow analysis, option pricing models and
other valuation techniques commonly used by market participants making the
maximum use of market inputs and relying as little as possible on entity-specific
inputs.
31
4. FAIR VALUE ESTIMATION (CONTINUED)
The fair values are based on the following methodologies and assumptions:
(i) For bank balances and deposits with licensed financial institutions with
maturities less than 1 year, the carrying value is a reasonable estimate of fair
value.
(ii) The carrying value of receivables and payables are assumed to approximate
their fair values due to their short term nature.
Fair value hierarchy
The Fund adopted MFRS 13 “Fair Value Measurement” in respect of disclosures
about the degree of reliability of fair value measurement. This requires the Fund to
classify fair value measurements using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. The fair value hierarchy
has the following levels:
Level 1: Quoted prices (unadjusted) in active market for identical assets or
liabilities
Level 2: Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices)
Level 3: Inputs for the asset and liability that are not based on observable market
data (that is, unobservable inputs)
The following table analyses within the fair value hierarchy the Fund’s financial
assets at fair value through profit or loss (by class) measured at fair value:
Level 1 Level 2 Level 3 Total
RM RM RM RM
30.06.2021
Investments:
- Quoted investments 19,292,673 - - 19,292,673
- Unquoted fixed income
securities - 6,439,065 - 6,439,065
Total 19,292,673 6,439,065 - 25,731,738
32
4. FAIR VALUE ESTIMATION (CONTINUED)
The following table analyses within the fair value hierarchy the Fund’s financial
assets at fair value through profit or loss (by class) measured at fair value:
(continued)
Level 1 Level 2 Level 3 Total
RM RM RM RM
31.12.2020
Investments:
- Quoted investments 18,887,383 - - 18,887,383
- Unquoted fixed income
securities - 9,212,645 - 9,212,645
Total 18,887,383 9,212,645 - 28,100,028
Investments in active listed equities, i.e. quoted investments whose value is based
on quoted market prices in active markets are classified within Level 1. The Fund
does not adjust the quoted prices for these instruments.
Financial instruments that trade in markets that are considered to be active but are
valued based on quoted market prices, dealer quotations or alternative pricing
sources supported by observable inputs are classified within Level 2. This includes
unquoted fixed income securities. As Level 2 instruments include positions that are
not traded in active markets and/or are subject to transfer restrictions, valuations may
be adjusted to reflect illiquidity and/or non-transferability, which are generally based
on available market information.
The Fund’s policies on valuation of these financial assets are stated in Note 2.2.
5. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise:
30.06.2021 31.12.2020
RM RM
Bank balances 3,058,138 389,299
Deposits with licensed financial institutions 242,888 1,003,768
3,301,026 1,393,067
33
6. INVESTMENTS
30.06.2021 31.12.2020
RM RM
Investments:
- Quoted investments - foreign 19,292,673 18,887,383
- Unquoted fixed income securities - local 6,439,065 9,212,645
25,731,738 28,100,028
01.01.2021-
30.06.2021
01.01.2020-
30.06.2020 RM RM
Net (loss)/gain on investments comprised:
- Net realised gain on disposal 2,589,712 1,480,007
- Net unrealised (loss)/gain on changes in fair
value (3,482,762) 261,988
(893,050) 1,741,995
Investments as at 30 June 2021 are as follows:
Name of Counter
Quantity
Cost
Fair Value
% of Net
Asset
Value
RM RM %
QUOTED INVESTMENTS –
FOREIGN
CHINA
Consumer Products &
Services
China Tourism Group Duty
Free Corporation Ltd 1,600 191,254 308,215 1.06
Industrial Products &
Services
Contemporary Amperex
Technology Co Ltd 1,200 121,620 411,946 1.42
Materials
Yunnan Energy New
Material Co Ltd 3,100 204,816 465,833 1.60
34
6. INVESTMENTS (CONTINUED)
Investments as at 30 June 2021 are as follows: (continued)
Name of Counter
Quantity
Cost
Fair Value
% of Net
Asset
Value
RM RM %
QUOTED INVESTMENTS –
FOREIGN (CONTINUED)
CHINA (CONTINUED)
Technology
GoerTek Inc 9,000 155,119 246,913 0.85
Maxscend Microelectronics
Co Ltd 700 185,373 241,515 0.83
340,492 488,428 1.68
TOTAL CHINA 858,182 1,674,422 5.76
HONG KONG
Consumer Products &
Services
Alibaba Group Holding Ltd 4,700 611,271 552,363 1.90
BYD Co Ltd 3,500 326,254 434,144 1.49
China Resources Beer
Holdings Co Ltd 6,000 207,408 223,563 0.77
Geely Automobile Holdings
Ltd 28,000 247,032 365,713 1.26
JD.com Inc 1,800 291,560 293,660 1.01
Meituan 4,100 374,318 701,747 2.41
2,057,843 2,571,190 8.84
Energy
CNOOC Ltd 55,000 267,089 259,434 0.89
35
6. INVESTMENTS (CONTINUED)
Investments as at 30 June 2021 are as follows: (continued)
Name of Counter
Quantity
Cost
Fair Value
% of Net
Asset
Value
RM RM %
QUOTED INVESTMENTS –
FOREIGN (CONTINUED)
HONG KONG (CONTINUED)
Financial Services
AIA Group Ltd 10,000 432,360 515,503 1.77
BOC Hong Kong Holdings Ltd 20,000 290,613 281,523 0.97
China Merchants Bank Co Ltd 19,500 631,949 690,120 2.38
Hong Kong Exchanges and
Clearing Ltd 2,100 355,548 519,178 1.78
Ping An Insurance Group Co
of China Ltd 5,500 149,825 223,443 0.77
1,860,295 2,229,767 7.67
Health Care
Hangzhou Tigermed
Consulting Co Ltd 3,700 293,820 359,730 1.24
Wuxi Biologics Cayman Inc 7,500 120,793 570,125 1.96
414,613 929,855 3.20
Industrial Products &
Services
Air China Ltd 88,000 280,182 268,425 0.92
Xinyi Glass Holdings Ltd 26,000 320,404 439,593 1.51
Zoomlion Heavy Industry
Science and Technology
Co Ltd 36,800 153,994 159,824 0.55
754,580 867,842 2.98
Materials
Angang Steel Co Ltd 112,000 298,663 294,365 1.01
Jiangxi Copper Co Ltd 29,000 142,962 246,320 0.85
441,625 540,685 1.86
36
6. INVESTMENTS (CONTINUED)
Investments as at 30 June 2021 are as follows: (continued)
Name of Counter
Quantity
Cost
Fair Value
% of Net
Asset
Value
RM RM %
QUOTED INVESTMENTS –
FOREIGN (CONTINUED)
HONG KONG (CONTINUED)
Technology
GDS Holdings Ltd 4,900 230,722 201,292 0.69
Telecommunications &
Media
Baidu Inc 2,050 224,672 218,365 0.75
Kuaishou Technology Co Ltd 1,800 298,950 187,312 0.64
Tencent Holdings Ltd 4,200 699,240 1,310,286 4.51
1,222,862 1,715,963 5.90
TOTAL HONG KONG 7,249,629 9,316,028 32.03
TAIWAN
Consumer Products &
Services
Eclat Textile Co Ltd 4,000 277,608 390,451 1.34
Makalot Industrial Co Ltd 10,375 270,149 423,001 1.46
547,757 813,452 2.80
Financial Services
Fubon Financial Holding Co
Ltd 26,000 277,942 285,904 0.98
Yuanta Financial Holding Co
Ltd 74,000 177,901 295,651 1.02
455,843 581,555 2.00
37
6. INVESTMENTS (CONTINUED)
Investments as at 30 June 2021 are as follows: (continued)
Name of Counter
Quantity
Cost
Fair Value
% of Net
Asset
Value
RM RM %
QUOTED INVESTMENTS –
FOREIGN (CONTINUED)
TAIWAN (CONTINUED)
Technology
ASUSTek Computer Inc 4,000 229,060 221,117 0.76
Hon Hai Precision Industry Co
Ltd 32,000 535,708 533,299 1.83
Mediatek Inc 2,000 178,040 286,291 0.98
Taiwan Semiconductor
Manufacturing Company
Ltd 15,000 515,053 1,328,040 4.57
Vanguard International
Semiconductor Corporation 17,000 287,158 298,493 1.03
1,745,019 2,667,240 9.17
TOTAL TAIWAN 2,748,619 4,062,247 13.97
UNITED STATES
Consumer Products &
Services
Alibaba Group Holding Ltd 921 511,797 866,349 2.98
JD.com Inc 704 187,675 233,055 0.80
NIO Inc 1,512 289,793 333,650 1.15
Trip.com Group Ltd 2,139 241,466 314,614 1.08
Vipshop Holdings Ltd 2,246 270,901 187,069 0.64
1,501,632 1,934,737 6.65
Technology
Daqo New Energy Corporation 1,167 443,030 314,736 1.08
38
6. INVESTMENTS (CONTINUED)
Investments as at 30 June 2021 are as follows: (continued)
Name of Counter
Quantity
Cost
Fair Value
% of Net
Asset
Value
RM RM %
QUOTED INVESTMENTS –
FOREIGN (CONTINUED)
UNITED STATES
(CONTINUED)
Telecommunications & Media
Baidu Inc 976 551,887 825,459 2.84
Bilibili Inc 871 157,783 440,186 1.51
NetEase Inc 802 234,326 383,392 1.32
Tencent Music Entertainment
Group 5,318 390,651 341,466 1.18
1,334,647 1,990,503 6.85
TOTAL UNITED STATES 3,279,309 4,239,976 14.58
TOTAL QUOTED INVESTMENTS –
FOREIGN 14,135,739 19,292,673 66.34
Name of Counter
Rating
Nominal
Value
Cost
Fair Value
% of Net
Asset
Value
RM RM RM %
UNQUOTED FIXED INCOME
SECURITIES – LOCAL
Alpha Circle Sdn Bhd –
5.45% (19/11/2021) BBB 890,000 895,617 896,293 3.08
Alpha Circle Sdn Bhd –
5.45% (23/02/2022) BBB 405,000 407,575 407,685 1.40
Alpha Circle Sdn Bhd –
5.60% (18/11/2022) BBB 243,000 244,564 243,661 0.84
Alpha Circle Sdn Bhd –
5.60% (18/11/2022) BBB 2,500,000 2,531,377 2,506,793 8.62
MEX I Capital Bhd –
2.50% (24/01/2030) C3* 1,500,000 1,240,845 439,145 1.51
39
6. INVESTMENTS (CONTINUED)
Investments as at 30 June 2021 are as follows: (continued)
Name of Counter
Rating
Nominal
Value
Cost
Fair Value
% of Net
Asset
Value
RM RM RM %
UNQUOTED FIXED INCOME
SECURITIES – LOCAL (CONTINUED)
MEX I Capital Bhd –
2.50% (22/01/2031) C3* 1,000,000 764,735 260,093 0.89
MEX II Sdn Bhd –
6.20% (29/04/2032) C** 4,300,000 4,713,191 1,517,971 5.22
Tanjung Bin Energy
Issuer Bhd – 6.20%
(16/03/2032) AA3 140,000 156,587 167,424 0.58
TOTAL UNQUOTED FIXED INCOME
SECURITIES – LOCAL 10,954,491 6,439,065 22.14
TOTAL INVESTMENTS 25,090,230 25,731,738 88.48
Investments as at 31 December 2020 are as follows:
Name of Counter
Quantity
Cost
Fair Value
% of Net
Asset
Value
RM RM %
QUOTED INVESTMENTS
– FOREIGN
CHINA
Consumer Products &
Services
China Tourism Group Duty
Free Corporation Ltd 1,600 191,254 279,513 0.95
40
6. INVESTMENTS (CONTINUED)
Investments as at 31 December 2020 are as follows: (continued)
Name of Counter Quantity
Cost
Fair Value
% of Net
Asset
Value
RM RM %
QUOTED INVESTMENTS –
FOREIGN (CONTINUED)
CHINA (CONTINUED)
Financial Services
Huatai Securities Company
Ltd 21,500 244,898 239,492 0.81
Industrial Products &
Services
Contemporary Amperex
Technology Co Ltd 1,200 121,620 260,594 0.89
Jiangsu Hengli Hydraulic Co
Ltd 3,400 139,007 237,628 0.81
260,627 498,222 1.70
Technology
Hundsun Technologies Inc 2,000 122,344 129,761 0.44
Luxshare Precision Industry
Co Ltd 3,599 83,347 124,922 0.42
205,691 254,683 0.86
TOTAL CHINA 902,470 1,271,910 4.32
HONG KONG
Consumer Products &
Services
Alibaba Group Holding Ltd 2,000 282,796 241,067 0.82
BYD Co Ltd 1,500 55,448 157,947 0.54
China Mengniu Dairy Co Ltd 14,000 285,992 339,525 1.15
China Resources Beer
Holdings Co Ltd 4,000 126,774 147,998 0.50
Geely Automobile Holdings
Ltd 28,000 247,032 384,504 1.31
41
6. INVESTMENTS (CONTINUED)
Investments as at 31 December 2020 are as follows: (continued)
Name of Counter
Quantity
Cost
Fair Value
% of Net
Asset
Value
RM RM %
QUOTED INVESTMENTS –
FOREIGN (CONTINUED)
HONG KONG (CONTINUED)
Consumer Products &
Services (Continued)
Meituan 4,100 374,318 625,913 2.12
1,372,360 1,896,954 6.44
Energy
CNOOC Ltd 55,000 267,089 204,637 0.69
Financial Services
AIA Group Ltd 10,000 432,360 492,290 1.67
China Construction Bank
Corporation 202,000 628,010 616,544 2.10
China Life Insurance Co Ltd 48,000 465,311 425,339 1.45
Hong Kong Exchanges and
Clearing Ltd 2,100 355,548 462,494 1.57
Industrial and Commercial
Bank of China Ltd 59,000 140,493 153,786 0.52
Ping An Insurance Group Co
of China Ltd 5,500 149,825 270,760 0.92
2,171,547 2,421,213 8.23
Health Care
Hangzhou Tigermed
Consulting Co Ltd 3,400 203,870 316,258 1.07
Innovent Biologics Inc 4,000 127,131 170,073 0.58
Pharmaron Beijing Co Ltd 2,800 138,662 190,076 0.65
Wuxi Biologics Cayman Inc 7,500 120,794 399,532 1.36
590,457 1,075,939 3.66
42
6. INVESTMENTS (CONTINUED)
Investments as at 31 December 2020 are as follows: (continued)
Name of Counter
Quantity
Cost
Fair Value
% of Net
Asset
Value
RM RM %
QUOTED INVESTMENTS –
FOREIGN (CONTINUED)
HONG KONG (CONTINUED)
Industrial Products &
Services
Air China Ltd 88,000 280,182 278,170 0.94
Zoomlion Heavy Industry
Science And Technology
Co Ltd 73,600 307,988 354,697 1.20
588,170 632,867 2.14
Materials
Angang Steel Co Ltd 70,000 112,642 114,626 0.39
Anhui Conch Cement Co Ltd 8,500 221,008 213,848 0.73
Jiangxi Copper Co Ltd 29,000 142,962 183,039 0.62
476,612 511,513 1.74
Property
China Resources Land Ltd 8,000 133,843 132,659 0.45
CIFI Holdings Group Co Ltd 46,000 141,155 156,610 0.53
274,998 289,269 0.98
Technology
Kingdee International
Software Group Ltd 23,000 263,692 376,628 1.28
Xiaomi Corporation 11,800 113,845 203,010 0.69
377,537 579,638 1.97
Telecommunications &
Media
Tencent Holdings Ltd 6,600 895,324 1,928,948 6.55
TOTAL HONG KONG 7,014,094 9,540,978 32.40
43
6. INVESTMENTS (CONTINUED)
Investments as at 31 December 2020 are as follows: (continued)
Name of Counter
Quantity
Cost
Fair Value
% of Net
Asset
Value
RM RM %
QUOTED INVESTMENTS –
FOREIGN (CONTINUED)
TAIWAN
Consumer Products &
Services
Makalot Industrial Co Ltd 5,000 103,884 136,922 0.46
Financial Services
Yuanta Financial Holding Co
Ltd 111,000 222,802 326,190 1.11
Technology
Mediatek Inc 5,000 445,099 534,105 1.82
Taiwan Semiconductor
Manufacturing Co Ltd 31,000 1,064,444 2,349,490 7.98
1,509,543 2,883,595 9.80
TOTAL TAIWAN 1,836,229 3,346,707 11.37
UNITED STATES
Consumer Products &
Services
Alibaba Group Holding Ltd 921 511,797 861,193 2.93
JD.com Inc 1,809 482,250 638,875 2.17
New Oriental Education and
Technology Group Inc 430 148,182 321,015 1.09
Pinduoduo Inc 716 255,829 511,111 1.74
Trip.com Group Ltd 2,139 241,466 289,878 0.98
1,639,524 2,622,072 8.91
Financial Services
Lufax Holding Ltd 4,897 253,276 279,387 0.95
Technology
Kingsoft Cloud Holdings Ltd 1,084 112,769 189,673 0.65
44
6. INVESTMENTS (CONTINUED)
Investments as at 31 December 2020 are as follows: (continued)
Name of Counter
Quantity
Cost
Fair Value
% of Net
Asset
Value
RM RM %
QUOTED INVESTMENTS –
FOREIGN (CONTINUED)
UNITED STATES (CONTINUED)
Telecommunications &
Media
Baidu Inc 976 551,887 847,957 2.88
Bilibili Inc 1,394 252,525 480,102 1.63
NetEase Inc 802 234,327 308,597 1.05
1,038,739 1,636,656 5.56
TOTAL UNITED STATES 3,044,308 4,727,788 16.07
TOTAL QUOTED INVESTMENTS –
FOREIGN 12,797,101 18,887,383 64.16
Name of Counter
Rating
Nominal
Value
Cost
Fair Value
% of Net
Asset
Value
RM RM RM %
UNQUOTED FIXED INCOME
SECURITIES – LOCAL
Alpha Circle Sdn Bhd –
5.30% (02/23/2021) AA- 362,000 364,249 365,303
1.24
Alpha Circle Sdn Bhd –
5.45% (02/23/2022) AA- 405,000 407,551 416,591
1.41
Alpha Circle Sdn Bhd –
5.45% (19/11/2021) AA- 890,000 895,574 911,361
3.10
Alpha Circle Sdn Bhd –
5.60% (18/11/2022) AA- 243,000 244,558 253,548
0.86
Alpha Circle Sdn Bhd –
5.60% (18/11/2022) AA- 2,500,000 2,536,524 2,608,518
8.86
45
6. INVESTMENTS (CONTINUED)
Investments as at 31 December 2020 are as follows: (continued)
Name of Counter
Rating
Nominal
Value
Cost
Fair Value
% of Net
Asset
Value
RM RM RM %
UNQUOTED FIXED INCOME
SECURITIES – LOCAL (CONTINUED)
MEX I Capital Bhd
(F.k.a. Bright Focus
Bhd) – 2.50%
(24/01/2030) BB1* 1,500,000 1,228,740 827,696
2.81
MEX I Capital Bhd
(f.k.a. Bright Focus
Bhd) – 2.50%
(22/01/2031) BB1* 1,000,000 755,623 514,047
1.75
MEX II Sdn Bhd –
6.20% (29/04/2032) BBB** 4,300,000 4,588,787 3,139,866
10.67
Tanjung Bin Energy
Issuer Bhd – 6.20%
(16/03/2032) AA3 140,000 157,051 175,715
0.60
TOTAL UNQUOTED FIXED INCOME
SECURITIES – LOCAL 11,178,657 9,212,645
31.30
TOTAL INVESTMENTS 23,975,758 28,100,028 95.46
* MEX I Capital Bhd formerly known as Bright Focus Bhd (“MEX I Capital”)
RM1.35 billion Sukuk Musharakah
On 23 April 2020, RAM lifted the Negative Rating Watch on MEX I Capital and reaffirmed
its BB1 rating with a Negative outlook. RAM had earlier downgraded MEX I Capital’s
rating to A1 from AA2 on 16 November 2018 and subsequently to BB1 on 3 June 2019
premised on the severe impairment in its debt-servicing metrics following unauthorized
intercompany advances amounting to RM97.7 million by Maju Expressway Sdn Bhd
(“MESB”) to Maju Holdings Sdn Bhd (“Maju Holdings”), in addition to a deterioration in
MESB’s projected annual cash flows.
46
6. INVESTMENTS (CONTINUED)
* MEX I Capital Bhd formerly known as Bright Focus Bhd (“MEX I Capital”)
RM1.35 billion Sukuk Musharakah (continued)
On 24 June 2020, the High Court dismissed the legal action commenced by the Trustee
for the Sukukholders against MESB, MEX I Capital and Maju Holdings to recover the
unauthorized intercompany advances made earlier by MESB to Maju Holdings, with
costs of RM10,000. The Judge found that the Trustee has no proprietary interest in the
intercompany advances from MESB to Maju Holdings hence, no grounds to compel
Maju Holdings to repay MESB. On 17 July 2020, Messrs. Lee Hishamuddin Allen &
Gledhill as legal counsel to the Trustee (acting for and behalf of the Sukukholders) filed
a Notice of Appeal. The Appeal is now fixed for case management on 19 August 2021
after the Court vacated the hearing of the Appeal originally scheduled for 24 June 2021
in light of the Movement Control Order. A final injunction was earlier granted by the
Court on 14 August 2019 restraining MESB from making any further advances to Maju
Holdings or any other party throughout the remaining tenure of the Sukuk. The longest
Sukuk tranche matures on 23 January 2031.
On 19 March 2021, RAM further downgraded the rating of MEX I Capital to
C3/Negative, from BB1/Negative, mainly premised on its persistent liquidity problems
and heightened default risk amid sharply lower traffic volumes along the Maju
Expressway due to COVID-19-led restrictions on mobility.
On 15 June 2021, MEX I Capital received a scheduled profit payment of RM8.5 million
on the Islamic Medium Term Notes (“IMTN”) issued by MESB under the existing
transaction structure notwithstanding MESB’s default on its IMTN principal repayment
of RM50 million to MEX I Capital on the same date. Sukukholders have allowed the
default at MESB to subsist until the proposed restructuring of the Sukuk. There is no
immediate credit impact on the Sukuk arising from MESB’s default on the IMTN
principal.
On 26 July 2021, MEX I Capital fulfilled its obligation on the Sukuk with full and timely
profit payment of RM25.9 million from monies previously ring-fenced for the sole
benefit of Sukukholders in a reserve account. Pursuant to the recent Sukuk profit
payment, MEX I Capital will need to top up the reserve account by 25 August to meet
the minimum required balance of RM95.9 million ahead of the next immediate principal
and profit payment due in January 2022.
The proposed restructuring was not approved by Sukukholders after failing to obtain the
minimum 75% vote from Sukukholders during the virtual Extraordinary General
Meeting on 19 July 2021. The Financial Adviser is expected to re-table the restructuring
proposal for Sukukholders’ approval by late September 2021, subject to meeting the
requirements of those Sukukholders requiring a different Shariah approach from that
which has been endorsed by the Shariah Adviser for the proposed restructuring.
47
6. INVESTMENTS (CONTINUED)
** MEX II Sdn Bhd (“MEX II”)
RM1.30 billion Sukuk Murabahah Programme
On 18 October 2019, MARC had downgraded the rating of MEX II RM1.3 billion
Sukuk Murabahah Programme from AA- to A whilst maintaining the rating on a
negative outlook premised on rising completion risk and increased uncertainty with
regard to completion and associated tolling date of the 16.8-km Lebuhraya KLIA
(MEX Extension) project. MARC further placed MEX II’s ratings on MARCWatch
Negative on 22 May 2020 due to the lack of construction progress at the Expressway.
On 30 October 2020, MEX II fulfilled its obligation on the Sukuk with a full and
timely profit payment of circa RM39 million from monies previously ring-fenced for
the sole benefit of Sukukholders in a reserve account.
On 18 November 2020, MARC downgraded MEX II’s ratings to BBB from A and
the rating remained on MARCWatch Negative following concerns on MEX II’s
timely ability to obtain additional financing to meet its debt obligations in April 2021
and complete a sukuk restructuring exercise.
On 9 February 2021, MARC further downgraded the rating to BB from BBB while
maintaining the rating on MARCWatch Negative due to escalating risk that MEX II
may not be able to obtain a liquidity line in time to meet Sukuk principal and profit
payments of RM68.7 million due on 29 April 2021.
On 26 March 2021, MARC downgraded MEX II’s rating to C from BB while
maintaining the rating on MARCWatch Negative due to mounting liquidity pressure
and the risk of missing the upcoming Sukuk payments on 29 April 2021, further
highlighting that MEX II’s viability rests on a successful Sukuk restructuring through
which additional funding will be available to complete the Expressway.
On 26 April 2021, Sukukholders holding in aggregate not less than 75% of the
nominal value of the Sukuk had consented to the deferment of Sukuk principal and
profit amounting to RM68.7 million originally due on (i) 28 April 2021 (i.e., principal
repayment of RM30 million and the profit payment in respect of this tranche only)
and (ii) 30 April 2021 (i.e., profit payments in respect of the other tranches) for 4
months until 27 August 2021.
48
6. INVESTMENTS (CONTINUED)
** MEX II Sdn Bhd (“MEX II”)
RM1.30 billion Sukuk Murabahah Programme (continued)
Overall construction of the Expressway stood at circa 86%. MEX II shall be seeking
a third extension of time (“EOT”) from Lembaga Lebuhraya Malaysia (“LLM”) as
completion will now be delayed beyond the earlier revised target of September 2021
pending the proposed restructuring/additional funding. MEX II received its second
EOT to 4 September 2021 from LLM after the expiry of the first EOT on 4 July 2020.
Construction of the remaining portion of the Expressway will take about 14-16
months once additional funding from the proposed restructuring is available.
The proposed restructuring of the Sukuk is currently ongoing but has been delayed
beyond the initial targeted completion date. Sukukholders will vote on a proposed
deferment of Sukuk obligations falling due on 27 August 2021 and 29 October 2021
to 31 December 2021 to buy more time for the proposed restructuring.
7. UNITS IN CIRCULATION
30.06.2021 31.12.2020
Units Units
At beginning of the financial period/year 44,167,000 43,746,000
Creation of units during the financial
period/year:
Arising from applications 9,202,000 6,531,000
Cancellation of units during the financial
period/year (8,679,000) (6,110,000)
At end of the financial period/year 44,690,000 44,167,000
8. MANAGEMENT FEE
In accordance with the Prospectus, the management fee provided in the financial
statements is 1.80% (01.01.2020-30.06.2020: 1.80%) per annum based on the net
asset value of the Fund, calculated on a daily basis for the financial period.
9. TRUSTEE’S FEE
In accordance with the Prospectus, the Trustee’s fee provided in the financial
statements is 0.06% (01.01.2020-30.06.2020: 0.06%) per annum based on the net
asset value of the Fund, calculated on a daily basis for the financial period.
49
10. TAXATION
(a) Tax charge for the financial period
01.01.2021-
30.06.2021
01.01.2020-
30.06.2020
RM RM
Current taxation - -
(b) Numerical reconciliation of income tax expense
The numerical reconciliation between the net (loss)/income before taxation
multiplied by the Malaysian statutory income tax rate and the tax expense of the
Fund is as follows:
01.01.2021-
30.06.2021
01.01.2020-
30.06.2020
RM RM
Net (loss)/income before taxation (862,661) 1,967,270
Tax calculated at a statutory income tax rate
of 24% (207,039) 472,145
Tax effects of:
- Loss not deductible for tax purpose/(Income
not subject to tax) 116,547 (547,225)
- Expenses not deductible for tax purpose 24,957 23,594
- Restriction on tax deductible expenses 65,535 51,486
Tax expense - -
11. MANAGEMENT EXPENSE RATIO (“MER”)
01.01.2021-
30.06.2021
%
01.01.2020-
30.06.2020
%
MER 0.99 1.04
The MER ratio is calculated based on total expenses excluding investment
transaction related costs of the Fund to the average net asset value of the Fund
calculated on a daily basis.
50
12. PORTFOLIO TURNOVER RATIO (“PTR”)
01.01.2021-
30.06.2021
01.01.2020-
30.06.2020
PTR (times) 0.34 0.38
The PTR ratio is calculated based on average of acquisition and disposals of the
Fund for the financial period to the average net asset value of the Fund calculated
on a daily basis.
13. UNITS HELD BY THE MANAGER AND PARTIES RELATED TO
THE MANAGER
The number of units held by the Manager and related party are as follows:
30.06.2021 31.12.2020
Units RM Units RM
The Manager
RHB Capital Nominees
(Tempatan) Sdn Bhd
5,149
1,566,551
3,350
1,019,355
5,220
1,638,098
3,479
1,091,792
The units are held beneficially by the Manager for booking purposes. The Manager
is of the opinion that all transactions with the related parties have been entered into
in the normal course of business at agreed terms between the related parties.
The units held by RHB Capital Nominees (Tempatan) Sdn Bhd, a wholly owned
subsidiary of ultimate holding company of the manager, are under nominees
structure.
Other than the above, there were no units held by the Directors or parties related to
the Manager.
The holding company and the ultimate holding company of the Manager is RHB
Investment Bank Berhad and RHB Bank Berhad respectively. The Manager treats
RHB Bank Berhad group of companies including RHB Investment Bank Berhad and
its subsidiaries as related parties.
51
14. TRANSACTIONS BY THE FUND
Details of transactions by the Fund for the financial period ended 30 June 2021 are
as follows:
* Included in transactions by the Fund are trades conducted with RHB Investment
Bank Bhd, the holding company of the Manager. The Manager is of the opinion
that all transactions with the related parties have been entered into in the normal
courses of business at agreed terms between the related parties.
Brokers/Financial
institutions
Value of
trades
Percentage
of total
trades
Brokerage
fees
Percentage
of total
brokerage
fees
RM % RM %
Credit Suisse (Taipei) 3,799,567 16.51 7,599 17.70
Citigroup Global Markets
Asia Ltd 3,252,031 14.13 6,504 15.15
Credit Suisse (Hong Kong)
Ltd 2,646,084 11.50 5,292 12.33
KAF Equities Sdn Bhd 2,373,162 10.31 3,932 9.16
J.P. Morgan Securities PLC 2,220,120 9.65 4,440 10.34
Macquarie Capital
(Australia) Ltd 2,085,175 9.06 3,174 7.39
China International Capital
Corporation Hong Kong
Securities Ltd 1,921,473 8.35 3,843 8.95
RHB Investment Bank
Bhd* 1,715,286 7.46 3,430 7.99
J.P. Morgan Securities LLC 805,914 3.50 942 2.19
Instinet Singapore Services
Pte Ltd 665,217 2.89 1,331 3.10
Others 1,527,376 6.64 2,447 5.70
23,011,405 100.00 42,934 100.00
52
14. TRANSACTIONS BY THE FUND (CONTINUED)
Details of transactions by the Fund for the financial year ended 31 December 2020
are as follows:
Brokers/Financial
institutions
Value of
trades
Percentage
of total
trades
Brokerage
fees
Percentage
of total
brokerage
fees
RM % RM %
China International Capital
Corporation Hong Kong
Securities Ltd 6,954,818 18.00
13,953 19.05
Credit Suisse (Hong Kong)
Ltd 5,923,701 15.33
11,847 16.17
Citigroup Global Markets
Asia Ltd 4,689,210 12.14
9,378 12.80
Macquarie Bank Ltd Hong
Kong 3,989,523 10.32
7,706 10.52
Credit Suisse (Taipei) 3,873,622 10.02 7,747 10.58
J.P. Morgan Securities PLC 3,338,524 8.64 6,844 9.34
J.P. Morgan Securities LLC 3,126,239 8.09 6,243 8.52
KAF Equities Sdn Bhd
(f.k.a. KAF Seagroatt &
Campbell Securities Sdn
Bhd) 1,857,296 4.81
3,715 5.07
AmBank (Malaysia) Bhd 1,127,750 2.92 - -
CLSA Ltd 1,007,390 2.61 2,015 2.75
Others 2,751,643 7.12 3,808 5.20
38,639,716 100.00 73,256 100.00
53
15. FINANCIAL INSTRUMENTS BY CATEGORIES
30.06.2021 31.12.2020
RM RM
Financial assets
Financial assets at fair value through
profit or loss (“FVTPL”)
• Quoted investments 19,292,673 18,887,383
• Unquoted fixed income investments 6,439,065 9,212,645
25,731,738 28,100,028
Financial assets at amortised cost
• Bank balances 3,058,138 389,299
• Deposits with licensed financial
institutions
242,888
1,003,768
• Amount due from brokers 437,546 -
• Dividend receivables 34,525 8,755
• Other receivables - 54
3,773,097 1,401,876
Financial liabilities
Financial liabilities at amortised cost • Amount due to brokers 281,404 -
• Amount due to Manager 74,271 -
• Amount due to Trustee 1,414 1,462
• Accrued management fee 42,422 43,846
• Other payables and accruals 24,675 21,209
424,186 66,517
16. SIGNIFICANT EVENT DURING THE FINANCIAL PERIOD
The worsening of the macro-economic outlook as a result of COVID-19, both
domestically and globally, has impacted the Fund’s performance during the financial
period.
The Manager is monitoring the situation closely and will be managing the portfolio
to achieve the Fund’s objective.
54
STATEMENT BY MANAGER
RHB GOLDEN DRAGON FUND
We, Dato’ Darawati Hussain and Datuk Seri Dr Govindan A/L Kunchamboo, two
of the Directors of RHB Asset Management Sdn Bhd, do hereby state that in the
opinion of the Directors of the Manager, the accompanying unaudited statement of
financial position, unaudited statement of income and expenses, unaudited statement
of changes in net asset value, unaudited statement of cash flows and the
accompanying notes, are drawn up in accordance with Malaysian Financial
Reporting Standards and International Financial Reporting Standards so as to give a
true and fair view of the financial position of the Fund as at 30 June 2021 and of its
financial performance and cash flows for the financial period then ended and comply
with the provisions of the Deeds.
On behalf of the Manager,
Dato’ Darawati Hussain Datuk Seri Dr Govindan A/L Kunchamboo
Director Director
23 August 2021
55
TRUSTEE’S REPORT
TO THE UNITHOLDERS OF RHB GOLDEN DRAGON FUND
We have acted as Trustee of RHB Golden Dragon Fund (“the Fund”) for the
financial period ended 30 June 2021. To the best of our knowledge, RHB Asset
Management Sdn Bhd (“the Management Company”), has operated and managed
the Fund in accordance with the following:-
a) limitations imposed on the investment powers of the Management Company
and the Trustee under the Deeds, the Securities Commission’s Guidelines on
Unit Trust Funds, the Capital Markets and Services Act 2007 and other
applicable laws;
b) valuation/pricing is carried out in accordance with the Deeds and any
regulatory requirements; and
c) creation and cancellation of units are carried out in accordance with the Deeds
and any regulatory requirements.
For HSBC (Malaysia) Trustee Berhad
Yap Lay Guat
Manager, Investment Compliance Monitoring
Kuala Lumpur
23 August 2021
56
CORPORATE INFORMATION
MANAGER
RHB Asset Management Sdn Bhd
REGISTERED OFFICE Level 10, Tower One, RHB Centre, Jalan Tun Razak, 50400 Kuala Lumpur
PRINCIPAL AND BUSINESS OFFICE
Level 8, Tower Two & Three, RHB Centre, Jalan Tun Razak, 50400 Kuala Lumpur
Email address: [email protected]
Tel: 03-9205 8000
Fax: 03-9205 8100
Website: www.rhbgroup.com
BOARD OF DIRECTORS
Mr Yap Chee Meng (Independent Non-Executive Chairman)
Mr Chin Yoong Kheong (Senior Independent Non-Executive Director)
Ms Ong Yin Suen (Managing Director / Chief Executive Officer)
YBhg Dato’ Darawati Hussain (Independent Non-Executive Director)
YBhg Datuk Seri Dr Govindan A/L Kunchamboo (Independent Non-Executive
Director)
Encik Mohd Rashid Bin Mohamad (Non-Independent Non-Executive Director)
(Appointed with effect from 11 August 2021)
INVESTMENT COMMITTEE MEMBERS Mr Yap Chee Meng (Independent Chairman)
YBhg Dato’ Darawati Hussain
Puan Sharifatu Laila Syed Ali
CHIEF EXECUTIVE OFFICER Ms Ong Yin Suen
SECRETARIES
Encik Azman Shah Md Yaman (LS No. 0006901)
Cik Hasnita Sulaiman (MAICSA No. 7060582)
57
BRANCH OFFICE Kuala Lumpur Office B-9-6, Megan Avenue 1
No. 189, Jalan Tun Razak
50400 Kuala Lumpur
Tel: 03-2171 2755/ 03-2166 7011
Fax: 03-2770 0022
Shah Alam Office B-3-1, 1st Floor
Jalan Serai Wangi G16/G, Alam Avenue
Persiaran Selangor, Section 16
40200 Shah Alam
Tel: 03-5523 1909 Fax: 03-5524 3471
Sri Petaling Office Level 1 & 2, No 53 Jalan Radin Tengah
Bandar Baru Seri Petaling
57000 Kuala Lumpur
Tel: 03-9054 2470 Fax: 03-9054 0934
Batu Pahat Office 53, 53-A and 53-B Jalan Sultanah
83000 Batu Pahat, Johor
Tel: 07-438 0271/ 07-438 0988
Fax: 07-438 0277
Ipoh Office No.7A, Persiaran Greentown 9
Pusat Perdagangan Greentown
30450 Ipoh, Perak
Tel: 05-242 4311 Fax: 05-242 4312
Johor Bahru Office No 34 Jalan Kebun Teh 1
Pusat Perdagangan Kebun Teh
80250 Johor Bahru, Johor
Tel: 07-221 0129 Fax: 07-221 0291
2nd Floor, 21 & 23
Jalan Molek 1/30, Taman Molek
81100 Johor Bahru, Johor
Tel: 07-358 3587 Fax: 07-358 3581
Kuantan Office 1st Floor, Lot 10, Jalan Putra Square 1
Putra Square
25300 Kuantan, Pahang
Tel: 09-517 3611/ 09-517 3612/ 09-531 6213
Fax: 09-517 3615
58
Kuching Office Lot 133, Section 20, Sublot 2 & 3
1st Floor, Jalan Tun Ahmad Zaidi Adruce
93200 Kuching, Sarawak
Tel: 082-550 838 Fax: 082-550 508
Yung Kong Abell, Units 1-10
2nd Floor Lot 365
Section 50 Jalan Abell
93100 Kuching, Sarawak
Tel: 082-245 611 Fax: 082-230 326
Kota Bharu Office Ground Floor, No 3486-G
Jalan Sultan Ibrahim
15050 Kota Bharu, Kelantan
Tel: 09-740 6891 Fax: 09-740 6890
Kota Kinabalu Office Lot No. C-02-04, 2nd Floor
Block C, Warisan Square
Jalan Tun Fuad Stephens
88000 Kota Kinabalu
Sabah
Tel: 088-528 686/ 088-528 692
Fax: 088-528 685
Melaka Office 581B, Taman Melaka Raya
75000 Melaka
Tel: 06-284 4211/ 06-281 4110
Fax: 06-292 2212
Miri Office Lot 1268 & 1269, Second Floor
Centre Point Commercial Centre
Jalan Melayu
98000 Miri, Sarawak
Tel: 085-422 788 Fax: 085- 415 243
Penang Office 3rd Floor, 44 Lebuh Pantai
10300 Georgetown, Penang
Tel: 04-264 5639 Fax: 04-264 5640
Prai Office No 38, First Floor
Jalan Todak 2
Seberang Jaya
13700 Perai, Penang
Tel: 04-386 6670 Fax: 04-386 6528
59
TRUSTEE HSBC (Malaysia) Trustee Berhad
BANKER RHB Bank Berhad
AUDITORS PricewaterhouseCoopers PLT
TAX ADVISER PricewaterhouseCoopers Taxation Services Sdn Bhd
DISTRIBUTORS RHB Asset Management Sdn Bhd
RHB Bank Bhd
RHB Investment Bank Bhd Affin Bank Bhd
Alliance Bank Malaysia Bhd
AmBank Bhd
AmInvestment Bank Bhd
Apex Investment Services Bhd
Areca Capital Sdn Bhd
CIMB Private Banking
CIMB Wealth Advisors Bhd
Genexus Advisory Sdn Bhd
Hong Leong Bank Bhd
HSBC Bank Malaysia Bhd
iFAST Capital Sdn Bhd
Kenanga Investors Bhd
Manulife Investment Management
Phillip Mutual Bhd
Standard Chartered Bank Malaysia Bhd
United Overseas Bank (Malaysia) Bhd
UOB Kay Hian Securities (M) Sdn Bhd
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