1349 Ｅ－ＳＳＧＡ－ＳＩＮ 2021-09-24 17:30:00
令和3年6月期 アジア国債・公債ＥＴＦ（正式名称：ＡＢＦ汎アジア債券インデックス・ファンド）決算短信 [pdf]
令和 3 年 6 月期 決算短信（令和 2 年 7 月 1 日～令和 3 年 6 月 30 日）
令和 3 年 9 月 24 日
フ ABF 汎アジア債券インデックス・ファンド
ァ ン ド 名 上場取引所 東京証券取引所
コ ー ド 番 号
1349
連 動対象指標Markit iBoxx® ABF パン・アジア指数
主 要投資資産有価証券
売 買 単 位
1口
管 理 会 社
ステート・ストリート・グローバル・アドバイザーズ・シンガポール・リミテッド
URL http://www.abf-paif.com/
代 表 者 （役職名）ディレクター （氏名）ケーン・シャン・ウン
問合せ先責任者 （役職名）代理人（氏名）伊東 啓 (TEL) (03)6250－6200
有価証券報告書提出予定日 令和 3 年 12 月 17 日
Ⅰファンドの運用状況
１．2021 年 6 月期の運用状況（令和 2 年 7 月 1 日～令和 3 年 6 月 30 日）
(1)資産内訳 （百万円未満切捨て）
主要投資資産 現金・預金・その他の資産 合計（純資産）
（負債控除後）
金額 構成比 金額 構成比 金額 構成比
百万円 ％ 百万円 ％ 百万円 ％
2021 年 6 月期 410,375（100） (670)（0） 409,704（100）
2020 年 6 月期 397,945（100） 251（0） 398,197（100）
(2)設定・交換実績 (千口未満四捨五入)
前計算期間末 当計算期間末
発行済口数(①) 設定口数(②) 交換口数(③) 発行済口数
（①+②-③）
千口 千口 千口 千口
2021 年 6 月期 30,315 841 490 30,666
2020 年 6 月期 31,636 1,129 2,450 30,315
(3)基準価額 （百万円未満切捨て）
総資産 負債 純資産 1 口当たり基準価額
（①） （②） （③(①－②)） （③/当計算期間末発行済口数×1 口）
百万円 百万円 百万円 円
2021 年 6 月期 417,604 7,900 409,704 13,359
2020 年 6 月期 405,472 7,275 398,197 13,135
(4)分 配 金
１口当たり分配金
＊ ＊円 (米ドル)
2021 年 6 月期 2021 年 7 月 22 日 150 (1.37)
2020 年 12 月期 2021 年 1 月 22 日 139 (1.27)
2020 年 6 月期 2020 年 7 月 22 日 134 (1.23)
2019 年 12 月期 2020 年 1 月 22 日 155 (1.42)
＊ 各期間における分配のための基準日を記載しております。
＊ 日本円への換算は下記(注)記載の換算率で計算されており(円位未満切捨て)、 実際に受益者に分配される金
額とは異なることがあります。
(注) 日本円への換算は、1 米ドル＝109.57 円の換算率(2021 年 9 月 21 日に株式会社三菱 UFJ 銀行が発表した対
顧客電信売・買相場の仲値)により計算されています。
２．会計方針の変更
① 会計基準等の改正に伴う会計方針の変更 有・無
② ①以外の会計方針の変更 有・無
1
CONTENTS
Page
Statement of Net Assets 11
Statement of Comprehensive Income 12
Statement of Changes in Net Assets Attributable to
Unitholders 13
Statement of Cash Flows 14
Notes to the Financial Statements 16
ABF Pan Asia Bond Index Fund
Annual Report 2021
STATEMENT OF NET ASSETS
As at 30th June 2021
30.06.2021 30.06.2020
Notes US$ US$
Assets
Current assets
Investments 8(f),
10(b)&(c) 3,745,325,374 3,631,886,293
Amounts due from brokers 36,614,428 59,839,372
Other receivables 118,973 22,809
Cash at banks 8(e) 29,247,055 8,828,282
Total assets 3,811,305,830 3,700,576,756
Liabilities
Current liabilities
Amounts payable on redemption of units 32,939,703 –
Amounts due to brokers 30,596,646 58,639,086
Audit fee payable 62,630 65,163
Trustee fee payable 8(d) 155,835 158,657
Management fee payable 8(c) 1,036,114 675,608
Index license fee payable 9(a) 208,472 208,473
Other payables 7,104,935 6,649,248
Liabilities (excluding net assets attributable
to unitholders) 72,104,335 66,396,235
Net assets attributable to unitholders 3 3,739,201,495 3,634,180,521
HSBC Institutional Trust State Street Global Advisors
Services (Singapore) Limited Singapore Limited
The notes on pages 16 to 53 form part of these financial statements.
11
ABF Pan Asia Bond Index Fund
Annual Report 2021
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30th June 2021
For the For the
year ended year ended
30.06.2021 30.06.2020
Notes US$ US$
Income
Interest income on bank deposits 8(e) 13,631 58,703
Net gains on investments 6 155,332,293 195,219,332
Net foreign exchange losses (666,590) (1,636,139)
Security lending income 5, 8(g) 295,972 216,370
Other income 5 2,432 248,186
Total investment income 154,977,738 194,106,452
Expenses
Management fee 8(c) 4,297,391 4,203,379
Trustee fee 8(d) 1,888,113 1,834,195
Index license fee 9(a) 349,999 352,876
Publication and printing expenses 8(i) 20,475 44,852
Audit fee 72,307 72,901
Processing agent fee 9(b) 13,021 14,373
Safe custody and bank charges 8(i) 1,291 2,741
Transaction handling fee 8(i) 11,975 14,970
Legal and professional fees 8(i) 239,302 329,692
Annual insurance premium 32,368 29,425
Other operating expenses 8(i) 13,276 13,376
Total operating expenses 6,939,518 6,912,780
Operating profit 148,038,220 187,193,672
Finance costs
Distributions to unitholders 12 (76,308,442) (95,672,992)
Interest expense 8(e) (8,392) (15,564)
(76,316,834) (95,688,556)
Profit after distributions and before tax 71,721,386 91,505,116
Taxation 7 (10,082,237) (8,978,949)
Profit after distributions and tax/
increase in net assets attributable to
unitholders from operations 61,639,149 82,526,167
The notes on pages 16 to 53 form part of these financial statements.
12
ABF Pan Asia Bond Index Fund
Annual Report 2021
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS
For the year ended 30th June 2021
For the For the
year ended year ended
30.06.2021 30.06.2020
US$ US$
Balance at beginning of the year 3,634,180,521 3,706,932,424
Issuance of units 103,711,991 132,497,438
Redemption of units (60,330,166) (287,775,508)
Net issuance/(redemption) of units 43,381,825 (155,278,070)
Increase in net assets attributable to unitholders 61,639,149 82,526,167
Balance at the end of the year 3,739,201,495 3,634,180,521
NUMBER OF UNITS IN ISSUE
For the For the
year ended year ended
30.06.2021 30.06.2020
Units Units
Units in issue at the beginning of the year 30,314,614 31,635,774
Issuance of units 841,390 1,128,840
Redemption of units (490,000) (2,450,000)
Units in issue at the end of the year 30,666,004 30,314,614
The notes on pages 16 to 53 form part of these financial statements.
13
ABF Pan Asia Bond Index Fund
Annual Report 2021
STATEMENT OF CASH FLOWS
For the year ended 30th June 2021
For the For the
year ended year ended
30.06.2021 30.06.2020
US$ US$
Cash flows from operating activities
Increase in net assets attributable to unitholders 61,639,149 82,526,167
Adjustment for:
Interest income on bank deposits (13,631) (58,703)
Interest expense 8,392 15,564
Distributions to unitholders 76,308,442 95,672,992
Taxation 10,082,237 8,978,949
Revaluation loss in foreign exchange 120,688 1,830,207
Operating profit before working capital changes 148,145,277 188,965,176
Net (increase)/decrease in investments (113,439,081) 71,228,743
Net decrease/(increase) in amounts due from brokers 23,224,944 (12,880,964)
Net increase in other receivables (96,164) (15,622)
Net (decrease)/increase in amounts due to brokers (28,042,440) 8,637,756
Net increase/(decrease) in accounts payable and accrued
expenses 207,759 (197,320)
Cash generated from operations 30,000,295 255,737,769
Interest income on bank deposits received 13,631 58,703
Taxes paid (9,479,159) (8,806,418)
Net cash generated from operating activities 20,534,767 246,990,054
Cash flows from financing activities
Distributions paid to unitholders (76,308,442) (95,672,992)
Interest expense paid (8,392) (15,564)
Issuance of units 103,711,991 136,012,040
Redemption of units (27,390,463) (288,942,833)
Net cash generated from/(used in) financing activities 4,694 (248,619,349)
Net increase/(decrease) in cash and cash equivalents 20,539,461 (1,629,295)
Effect of currency translation (120,688) (1,830,207)
Cash and cash equivalents at the beginning of the year 8,828,282 12,287,784
Cash and cash equivalents at the end of the year 29,247,055 8,828,282
Analysis of balance of cash and cash equivalents:
Cash at banks 29,247,055 8,828,282
The notes on pages 16 to 53 form part of these financial statements.
14
ABF Pan Asia Bond Index Fund
Annual Report 2021
STATEMENT OF CASH FLOWS (Continued)
For the year ended 30th June 2021
Reconciliation of liabilities arising from financing activities
For the For the
year ended year ended
30.06.2021 30.06.2020
US$ US$
At 1st July – 1,167,325
Changes from financing cash flows
Redemptions paid (27,390,463) (288,942,833)
Other changes
Redemption of units 60,330,166 287,775,508
At 30th June 32,939,703 –
The notes on pages 16 to 53 form part of these financial statements.
15
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
1. GENERAL INFORMATION
ABF Pan Asia Bond Index Fund (the “Fund”) is a Singapore unit trust authorised under Section
286 of the Securities and Futures Act (Cap. 289) of Singapore and Section 104 of the Securities
and Futures Ordinance (Cap. 571) of Hong Kong. The Fund was constituted by a trust deed dated
21st June 2005 between State Street Global Advisors Singapore Limited and HSBC Institutional
Trust Services (Singapore) Limited (the “Trust Deed”). The Trust Deed was amended and restated
by an Amending and Restating Deed on 28th June 2006, a Second Amending and Restating
Deed dated 28th June 2007, a supplemental deed dated 27th June 2008, a Third Amending and
Restating Deed dated 24th June 2011, a Fourth Amending and Restating Deed dated 10th July
2018, a Fifth Amending and Restating Deed dated 27th December 2019 and a Sixth Amending and
Restating deed dated 17th August 2020. The Trust Deed and all supplemental deeds are governed
in accordance with the laws of Singapore. The Fund is also listed on The Stock Exchange of Hong
Kong Limited and Tokyo Stock Exchange. The date of commencement of operation of the Fund was
29th June 2005.
The investment objective of the Fund is to seek to provide investment results that correspond
closely to the total return of the Markit iBoxx ABF Pan-Asia Index (the “Underlying Index”), before
fees and expenses. The Underlying Index is determined and composed by Markit Indices GmbH (the
“Index Provider”). The Underlying Index is an indicator of investment returns of debt obligations
denominated in China Renminbi, Hong Kong Dollar, Indonesian Rupiah, Korean Won, Malaysian
Ringgit, Philippine Peso, Singapore Dollar or Thai Baht (each an “Asian Currency”) issued or
guaranteed by government, quasi-government organizations or supranational financial institutions,
in each case as determined by the Index Provider and which are for the time being constituent
securities of the Underlying Index.
16
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise
stated.
(a) Basis of preparation
The financial statements of the Fund have been prepared in accordance with International
Financial Reporting Standards (“IFRSs”). The financial statements have been prepared under
the historical cost convention, as modified by the revaluation of financial assets and liabilities
(including derivative financial instruments) held at fair value through profit or loss.
The preparation of financial statements in conformity with IFRSs requires the use of certain
critical accounting estimates. It also requires the Manager to exercise their judgment in the
process of applying the Fund’s accounting policies. The areas involving a higher degree of
judgment or complexity, or areas where assumptions and estimates are significant to the
financial statements are disclosed in note 4.
Standards and amendments to existing standards effective 1st July 2020
There are no standards, amendments to standards or interpretations that are effective for
annual periods beginning on 1st July 2020 that have a material effect on the financial
statements of the Fund.
New standards, amendments and interpretations effective after 1st July 2020 and have not
been early adopted
A number of new standards, amendments to standards and interpretations are effective for
annual periods beginning after 1st July 2020, 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.
17
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(b) Investments
Classification
Assets
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 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.
As such, the Fund classifies all of its investment portfolio as financial assets at fair value
through profit or loss.
Recognition, derecognition and measurement
Purchases and sales of investments are accounted for on the trade date basis – the date on
which the Fund commits to purchase or sell the investment. Investments are initially recognised
at fair value, excluding transaction costs which are expensed as incurred, and are subsequently
re-measured at fair value. Realised and unrealised gains and losses on investments are included
in the statement of comprehensive income in the year in which they arise. Investments 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.
Subsequent to initial recognition, all financial assets and financial liabilities at fair value through
profit or loss are measured at fair value. Gains and losses arising from changes in the fair value
of the “financial assets or financial liabilities at fair value through profit or loss” category are
presented in the statement of comprehensive income within net gains/(losses) on investments
in the period in which they arise.
18
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(b) Investments (Continued)
Fair value estimation
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 and participants at the measurement date. The fair value of
financial assets and liabilities traded in active markets are based on quoted market prices at the
close of trading on the reporting date.
Investments that are listed or traded on an exchange are fair valued based on quoted bid prices.
Investments which are not listed on an exchange are valued by using quotes from brokers. The
investments are fair valued based on quoted bid prices inclusive of accrued interest.
Transfers between levels of the fair value hierarchy
Transfers between levels of the fair value hierarchy are deemed to have occurred at the
beginning of the reporting period.
(c) Income
Interest income on bank deposits is recognised on a time-proportionate basis using the effective
interest method. Interest income on investments is accounted for as part of net gains/losses
on investments in the Statement of Comprehensive Income. Security lending income and other
income are accounted for in the Statement of Comprehensive Income on an accrual basis.
(d) Expenses
Expenses are accounted for in the Statement of Comprehensive Income on an accrual basis.
(e) Taxation
No provision for Hong Kong profits tax has been made as the Fund was authorised as a
collective investment scheme under Section 104 of the Hong Kong Securities and Futures
Ordinance and is therefore exempted from profits tax under Section 26A(1A) of the Hong Kong
Inland Revenue Ordinance.
The Fund may potentially be liable to pay PRC withholding income tax on the PRC sourced
capital gains and interest income, unless reduced or exempted under relevant tax treaty.
Withholding taxes are disclosed separately in the Statement of Comprehensive Income.
19
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(f) Cash and cash equivalents
Cash and cash equivalents include cash in hand and demand deposits with original maturities
of three months or less.
(g) Amounts due from and to brokers
Amounts due from and 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
Statement of Net Assets date respectively. The amounts 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 known financial difficulties
of the broker, probability that the broker will enter bankruptcy or financial reorganisation, and
default in payments are all considered indicators that a loss allowance may be required. If the
credit risk increases to the point that it is considered to be credit impaired, interest income
will be calculated based on the gross carrying amount adjusted for the loss allowance. For the
purposes of measurement for presentation in the financial statements, a significant increase in
credit risk is defined as any contractual payment which is more than 30 days past due, and any
contractual payment which is more than 90 days past due is considered credit impaired. The
Manager has measures in place to monitor exposures and increase in credit risk.
20
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(h) Securities lending
Securities on loan are included in the investment portfolio of the Fund as the Fund is entitled
to the interest income from the fixed income securities on loan and retain substantially all
the risks and rewards. Relevant securities lending income received by the Fund is included in
security lending income in the Statement of Comprehensive Income.
Collateral received for the purpose of securities on loan generally consists of fixed income
securities collateral. Fixed income securities collateral received is treated as an off-balance sheet
transaction and is therefore not included in the Statement of Net Assets because the Fund is
not entitled to the interest income from the fixed income securities collateral and do not retain
substantially all the risks and rewards. Interest received from fixed income securities collateral is
paid to the counterparty that provides the collateral to the Fund.
(i) Translation of foreign currencies
Functional and presentation currency
The Fund’s subscription and redemption of units are denominated in United States Dollar
(“US$”). The performance of the Fund is measured and reported to the investors in the United
States Dollar, which is the Fund’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions. Foreign currency assets and liabilities are
translated into the functional currency using the exchange rate prevailing at the year-end date.
Foreign exchange gains and losses arising from translation are included in the Statement of
Comprehensive Income.
Foreign exchange gains and losses relating to cash and cash equivalents are presented in the
Statement of Comprehensive Income within ‘net foreign exchange gains/(losses)’.
21
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(j) Redeemable units
The Fund issues redeemable units, which are redeemable at the unitholder’s option and are
classified as financial liabilities. Redeemable units can be put back to the Fund for cash equal
to a proportionate share of the Fund’s net asset value. The redeemable unit is carried at the
redemption amount that is payable at the date of redemption if the unitholder exercises the
right to put the unit back to the Fund.
Redeemable units are issued and redeemed at the unitholder’s option at prices based on the
Fund’s net asset value per unit at the time of issue or redemption. The Fund’s net asset value
per unit is calculated by dividing the net assets attributable to the unitholders with the total
number of outstanding redeemable units.
(k) Segmental information
Operating segments are reported in a manner consistent with the internal reporting used by the
chief operating decision-maker. The Manager, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the chief operating
decision-maker that makes strategic decisions.
(l) Distributions
Proposed distributions to unitholders are recognised in the Statement of Comprehensive Income
when they are appropriately authorised. The distribution on redeemable units is recognised as a
finance cost in the Statement of Comprehensive Income.
(m) Changes to presentation and comparative information
When the presentation or classification items in the financial statements is amended,
comparative amounts have been updated to conform with the current year’s presentation or
classification.
22
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
3. NET ASSETS ATTRIBUTABLE TO UNITHOLDERS AND NUMBER OF UNITS IN ISSUE
Net assets attributable to unitholders
The Fund’s capital is represented by the units in the Fund, and is shown as net assets attributable to
unitholders in the Statement of Net Assets. In accordance with the Fund’s Trust Deed, redeemable
units are generally only issued and redeemed in blocks of 10,000 units with effect from 20th June
2013 or in whole multiples thereof. Subscriptions and redemptions of units during the year are
shown in the Statement of Changes in Net Assets Attributable to Unitholders. In order to achieve
the investment objectives, the Fund endeavors to invest its capital in accordance with the defined
investment policies, whilst maintaining sufficient liquidity to meet redemption requests.
Net assets attributable to unitholders represent a liability in the Statement of Net Assets, carried
at the redemption amount that would be payable at the Statement of Net Assets date if the
unitholders exercised the right to redeem units in the Fund.
Number of units in issue
30.06.2021 30.06.2020
units units
Units in issue at the beginning of the year 30,314,614 31,635,774
Issuance of units 841,390 1,128,840
Redemption of units (490,000) (2,450,000)
Units in issue at the end of the year 30,666,004 30,314,614
2021 2020
US$ US$
Net assets attributable to unitholders 3,739,201,495 3,634,180,521
Net assets attributable to unitholders (per unit) 121.93 119.88
Net asset value per Creation unit
(1 Creation unit is equivalent to 10,000 units) 1,219,331 1,198,821
23
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
4. CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS
The Manager makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. Estimates are continually
evaluated and are based on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances.
The Manager is of the opinion that the Fund has no critical accounting estimates and assumptions
during the financial year.
5. SECURITY LENDING INCOME AND OTHER INCOME
Security lending income is calculated daily, determined on the closing value of loaned securities at
the agreed lending fee rate.
“Other income” in the Statement of Comprehensive Income primarily includes transaction fees
received by the Fund.
For each application for the subscription or redemption of units, the Fund is entitled to receive a
transaction fee of HK$1,000 (approximately US$128) per application and 0.23% for creation of
units and 0.29% (Prior to 8th April 2020: 0.125%) for redemption of units dilution charges from
authorised participants.
6. NET GAINS ON INVESTMENTS
2021 2020
US$ US$
Change in unrealised gains/losses in value of investments 35,531,163 104,324,399
Realised gains on sale of investments 119,801,130 90,894,933
155,332,293 195,219,332
24
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
7. TAXATION
Hong Kong tax
No provision for Hong Kong profits tax has been made as the Fund is authorised as a collective
investment scheme under Section 104 of the Hong Kong Securities and Futures Ordinance and
is therefore exempted from profits tax under Section 26A(1A) of the Hong Kong Inland Revenue
Ordinance.
Singapore tax
The Fund is also a designated unit trust in Singapore and therefore, the following income is
exempted from tax in accordance with sections 35(12) and (12A) of the Income Tax Act (Cap 134):
(a) gains or profits derived from Singapore or elsewhere from the disposal of securities;
(b) interest (other than interest for which tax has been deducted under section 45 of the Income
Tax Act);
(c) dividends derived from outside Singapore and received in Singapore;
(d) gains or profits derived from foreign exchange transactions, transactions in future contracts,
transactions in interest rate or currency forwards, swaps or option contracts and transactions in
forwards, swaps or option contracts relating to any securities of financial index; and
(e) distributions from foreign unit trusts derived from outside Singapore and received in Singapore.
Unless otherwise exempt from tax, any income or gains that do not fall within the above list
of specified income (i.e. non-specified income) will generally be subject to tax at the prevailing
corporate tax rate.
25
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
7. TAXATION (Continued)
People’s Republic of China tax
The Fund invests in debt securities in People’s Republic of China (“PRC”) and therefore subject to
a) withholding income tax on capital gains derived from disposal of debt securities, b) withholding
income tax on interest income received from its debt securities and c) value-added tax on capital
gains and interest income received from its debt securities.
(a) Withholding income tax on capital gains on debt securities in PRC
Under the general tax provision of PRC Corporate Income Tax Law (“PRC CIT Law”), the non-
PRC residents with no place of effective management, establishment or place of business in
the PRC may be subject to 10% PRC withholding income tax (“WIT”) on the capital gain
derived from disposal of securities, unless exempt or reduced under current PRC tax laws and
regulations or relevant tax treaties.
The Fund invests in RMB denominated bonds (“RMB bonds”) in the China Interbank Bond
Market (“CIBM”) in the PRC. Under the prevailing PRC tax regulations, there are no specific
rules or regulations governing the taxation of the disposal of RMB bonds by foreign institutional
investors. Under the general taxing provision of the Corporate Income Tax Law, the Fund may
potentially be liable to pay PRC withholding income tax on the PRC sourced capital gains at
the rate of 10%, unless reduced or exempted under relevant tax treaty. Based on the current
verbal interpretation of the PRC State Taxation Administration (“STA”) and the local PRC tax
authorities, the authorities are with the view that capital gains derived by foreign institutional
investors from disposal of PRC debt securities should not be treated as PRC sourced income
and thus should not be subject to PRC withholding income tax. However, there are no written
tax regulations issued by the PRC tax authorities to confirm this interpretation. As a matter
of practice, PRC withholding income tax on capital gains realised by non-PRC tax resident
enterprises from the trading of debt securities has not been strictly enforced by the PRC tax
authorities.
The Manager has assessed the likelihood of such exposure and believes that there is no material
tax exposure on the basis that no collection has been made by the China tax authority since the
commencement of operations of the Fund. As such, no provision was made for taxation from
such gains in the financial statements.
However, there is a possibility that the PRC tax authorities may change their current
interpretation or issue specific regulation to clarify the tax treatment on bond trading gains.
The Manager continues to monitor the position and will make an appropriate adjustment if and
when it is considered that there are sufficient grounds to do so.
26
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
7. TAXATION (Continued)
People’s Republic of China tax (Continued)
(b) Withholding income tax on interest income on debt securities in PRC
The non-PRC residents with interest income derived from the debt securities will be subject
to 10% WIT. Pursuant to the PRC CIT Law, debt securities issuers in the PRC are obligated
to withhold the 10% PRC WIT on interest income for those foreign debt securities holders.
However, interest income derived from government bonds issued by the State Council’s finance
departments and/or local government bonds approved by the State Council is exempt from PRC
WIT under the PRC CIT Law.
On 7th November 2018, the Ministry of Finance and the PRC STA jointly issued a notice
Caishui [2018] No.108 (“Circular 108”) which stipulates that foreign institutional investors are
temporarily exempted from PRC withholding tax and Value Added Tax (“VAT”) in respect of
bond interest income received from 7th November 2018 to 6th November 2021. The Manager
continues to monitor the position and will make an appropriate adjustment if necessary.
Pursuant to the letter to the unitholders of the Fund dated 28th February 2020 the Manager
and the Trustee have decided to change the tax provision policy of the Fund and ceased to
make provisions for PRC withholding tax on the interest income received from PRC non-
government bonds from 7th November 2018 to 6th November 2021.The Manager will retain
the PRC withholding tax provision in respect of bond interest income received before 7th
November 2018 until new developments and interpretation of the relevant regulations are
available.
As at 30th June 2021, the provision for 10% withholding tax on interest income from PRC non-
government securities received up to 6th November 2018 amounts to US$4,227,636 (equivalent
to RMB27,285,160) (2020: US$3,845,812, equivalent to RMB27,285,160). Movement of the
provision was due to the exchange difference arising from translation. The amount is included
in “Other payables” in the Statement of Net Assets.
During the year ended 30th June 2020, as a result of the change of the PRC withholding tax
provision policy the Fund has reversed the withholding income tax provision of US$802,784 for
the period from 7th November 2018 to 31st December 2019.
27
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
7. TAXATION (Continued)
People’s Republic of China tax (Continued)
(c) Value added tax on capital gains and interest income on debt securities in PRC
According to the notice Caishui [2016] No. 36 (“Circular 36”), VAT at 6% shall be levied
on the difference between the selling and buying prices of those marketable securities
effective from 1st May 2016. In addition, if VAT is applicable, local surtaxes including Urban
Maintenance and Construction Tax (currently at the rate ranging from 1% to 7%), Education
Surcharge (currently at the rate of 3%) and Local Education Surcharge (currently at the rate of
2%) are imposed based on the VAT liabilities (the “VAT related taxes”). However, the gains
derived from trading of RMB denominated debt securities by the foreign institutional investors
recognised by People’s Bank of China in CIBM are exempted from VAT in the PRC under
Circular 36 and Caishui [2016] No. 70.
According to Circular 36, interest received from government bonds and local government bonds
are exempted from VAT. As mentioned above, according to Circular 108, foreign institutional
investors are temporarily exempted from VAT in respect of bond interest income received from
7th November 2018 to 6th November 2021. However, the prevailing VAT regulations do not
specifically exempt VAT on interest received by foreign institutional investors for the period
from 1st May 2016 to 6th November 2018. Hence, interest income derived during the period
from 1st May 2016 to 6th November 2018 on non-government bonds (including corporate
bonds) would be subject to 6.72% VAT and VAT related taxes. The Manager continues to
monitor the position and will make an appropriate adjustment if necessary.
Pursuant to the letter to the unitholders of the Fund dated 28th February 2020, the Manager
has considered the current PRC tax provisioning policy of the Trust and after consultation
with an independent and professional tax advisor. As at 30th June 2021, the VAT provision
for the bond interest income received from the Fund’s investments in PRC non-government
bonds during the period between 1st May 2016 and 6th November 2018 was US$1,138,672
(equivalent to RMB7,348,992) (as at 30th June 2020: US$1,052,306 equivalent to
RMB7,348,992). Movement of the provision was due to the exchange difference arising from
translation. The amount is included in “Other payables” in the Statement of Net Assets.
Other taxes
The Fund invests in debt securities in Philippines and Indonesia and therefore is subject to
withholding income tax on interest income.
28
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
7. TAXATION (Continued)
Overall tax exposure
The Fund had incurred taxes of US$10,082,237 (2020: US$8,978,949) during the year ended 30th
June 2021. The amount includes withholding taxes from China, Philippines and Indonesia totalling
US$10,005,104 (2020: US$7,911,443), PRC VAT provision in respect of bond interest income of
Nil (2020: US$1,052,306), and the remaining portion of US$77,133 (2020: US$15,200) relates to
payments of Singapore corporate income tax and other taxes.
During the years ended 30th June 2021 and 2020, the movement in current tax liabilities for the
Fund are as follows:
2021 2020
US$ US$
Current tax liabilities
At 1st July 6,416,425 6,243,894
Charged to the Statement of Comprehensive Income 10,082,237 9,781,733
Reversal on provision of PRC withholding tax – (802,784)
Tax paid (9,479,159) (8,806,418)
At 30th June 7,019,503 6,416,425
As at 30th June 2021, the tax liabilities for the Fund were US$5,880,831 (2020: US$5,364,119)
and US$1,138,672 (2020: US$1,052,306) in relation to withholding taxes and PRC VAT provision
respectively.
8. TRANSACTIONS AND BALANCES WITH RELATED PARTIES INCLUDING THE MANAGER,
TRUSTEE AND THEIR CONNECTED PERSONS
Connected Persons of the Manager or Trustee are those as defined in the Code on Unit Trusts
and Mutual Funds established by the Securities and Futures Commission of Hong Kong (the “SFC
Code”). The Manager and the Trustee of the Fund are State Street Global Advisors Singapore
Limited and HSBC Institutional Trust Services (Singapore) Limited respectively. State Street Global
Advisors Singapore Limited is a subsidiary of State Street Corporation. HSBC Institutional Trust
Services (Singapore) Limited is a subsidiary of HSBC Holdings Plc. All transactions entered into
during the year between the Fund and the related parties including the Manager, Trustee and their
Connected Persons were carried out in the ordinary course of business and on normal commercial
terms. To the best of the Manager and Trustee’s knowledge, the Fund does not have any other
transactions with the Connected Persons of the Manager or Trustee except for those disclosed
below.
29
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
8. TRANSACTIONS AND BALANCES WITH RELATED PARTIES INCLUDING THE MANAGER,
TRUSTEE AND THEIR CONNECTED PERSONS (Continued)
(a) Foreign currency transactions with connected persons of the Manager and the Trustee
During the year ended 30th June 2021, the Manager transacted in foreign currency transactions
totalling US$588,216,725 (2020: US$969,581,418) through its affiliated party, State Street
Global Markets, LLC and the Trustee’s affiliated parties, The Hongkong and Shanghai Banking
Corporation Limited and The Hongkong and Shanghai Banking Corporation Limited Sydney
Branch, for the Fund’s investments and settlement purposes. The amount represents 100%
(2020: 100%) of the Fund’s foreign currency transactions during the year ended 30th June
2021.
Aggregate value % of total foreign
of foreign currency currency
Name of company transactions transactions
US$ %
2021
State Street Global Markets, LLC 66,271,155 11.27
The Hongkong and Shanghai Banking
Corporation Limited 127,085,508 21.60
The Hongkong and Shanghai Banking
Corporation Limited, Sydney Branch 394,860,062 67.13
2020
State Street Global Markets, LLC 54,700,000 5.64
The Hongkong and Shanghai Banking
Corporation Limited 249,056,833 25.69
The Hongkong and Shanghai Banking
Corporation Limited, Sydney Branch 665,824,585 68.67
During the years ended 30th June 2021 and 2020, the Connected Persons of the Manager
and the Trustee as listed above had included normal bid-offer spreads for the foreign currency
transactions entered with the Fund, which were carried out in the ordinary course of business
and on normal commercial terms. There were no direct commissions paid to Connected Persons
of the Manager or the Trustee during the years ended 30th June 2021 and 2020.
30
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
8. TRANSACTIONS AND BALANCES WITH RELATED PARTIES INCLUDING THE MANAGER,
TRUSTEE AND THEIR CONNECTED PERSONS (Continued)
(b) Holdings of units
As at 30th June 2021, the directors and officers of the Manager did not hold any units in the
Fund (2020: Nil). The Hong Kong and Shanghai Banking Corporation Limited, a related party
of the Trustee, held 28,593,095 units (2020: 28,083,247 units) of the Fund as a nominee on
behalf of its clients, representing 93.24% (2020: 92.64%) of the Fund’s net assets.
(c) Management fee
The Fund pays the Manager a management fee*, monthly in arrears and accrued daily,
determined on the average daily net assets of the Fund at the rate as follows:
For first US$1 billion 0.13%
For next US$250 million 0.12%
For next US$250 million 0.11%
Thereafter 0.10%
* This fee may be increased to a maximum of 0.25% per annum upon three months’ notice in writing to
unitholders.
(d) Trustee fee
The Fund pays the Trustee a trustee fee*, monthly in arrears and accrued daily, of 0.05% per
annum of the average daily net assets of the Fund.
* This fee may be increased to a maximum of 0.15% per annum upon three months’ notice in writing to
unitholders.
31
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
8. TRANSACTIONS AND BALANCES WITH RELATED PARTIES INCLUDING THE MANAGER,
TRUSTEE AND THEIR CONNECTED PERSONS (Continued)
(e) Bank balances
The bank balances of the Fund are held with a related party of the Trustee, (i.e. The Hongkong
Shanghai Banking Corporation Limited). The details of such transactions are as follows:
As at As at
30.06.2021 30.06.2020
US$ US$
Bank balances 29,247,055 8,828,282
During the years ended 30th June 2021 and 2020, the below income and expenses related
to the bank balance of the Fund stated in Statement of Comprehensive Income was earned/
paid from/to a related party of the Trustee, (i.e. The Hongkong Shanghai Banking Corporation
Limited).
For the year ended For the year ended
30.06.2021 30.06.2020
US$ US$
Interest income 13,631 58,703
Interest expenses 8,392 15,564
(f) Investments
As at 30th June 2021 and 2020, the Fund placed investments with a related party of the
Trustee, (i.e. HSBC Institutional Trust Services (Asia) Limited). The details of such investments
are as follows:
As at As at
30.06.2021 30.06.2020
US$ US$
Investments 3,745,325,374 3,631,886,293
32
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
8. TRANSACTIONS AND BALANCES WITH RELATED PARTIES INCLUDING THE MANAGER,
TRUSTEE AND THEIR CONNECTED PERSONS (Continued)
(g) Security lending arrangement
During the years ended 30th June 2021 and 2020, the Fund put in place a securities lending
arrangement with a related party of the Trustee (i.e. HSBC Bank Plc) as a security lending
agent. The details of such transactions are as follows:
For the year ended For the year ended
30.06.2021 30.06.2020
US$ US$
Collateral held by HSBC Bank Plc in
segregated accounts 110,211,589 92,691,825
Aggregate securities lending transactions
through HSBC Bank Plc 485,468,588 626,350,260
(h) Bond transactions with connected persons of the Manager and the Trustee
(i) During the years ended 30th June 2021 and 2020, the Fund transacted in bond trades
through Trustee’s affiliated party as buyers or sellers as follows:
Aggregate value Aggregate value
of purchase of sale
Name of company transactions transactions
US$ US$
2021
HSBC Bank (China) Company Limited 32,453,018 37,816,917
The Hongkong and Shanghai Banking
Corporation Limited 20,652,317 –
The Hongkong and Shanghai Banking
Corporation Limited, Seoul Branch 4,425,923 –
The Hongkong and Shanghai Banking
Corporation Limited, Singapore 52,008,930 21,423,036
2020
HSBC Bank (China) Company Limited 47,353,499 66,168,745
The Hongkong and Shanghai Banking
Corporation Limited 47,118,681 13,852,972
The Hongkong and Shanghai Banking
Corporation Limited, Singapore 139,132,276 97,045,142
33
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
8. TRANSACTIONS AND BALANCES WITH RELATED PARTIES INCLUDING THE MANAGER,
TRUSTEE AND THEIR CONNECTED PERSONS (Continued)
(h) Bond transactions with connected persons of the Manager and the Trustee (Continued)
(ii) During the years ended 30th June 2021 and 2020, the Fund transacted in bond trades
through Trustee’s affiliated party as delivering or receiving agents as follows:
Aggregate value Aggregate value
of transactions of transactions
Name of company 30.06.2021 30.06.2020
US$ US$
HSBC Bank (China) Company Limited 77,128,217 113,522,244
HSBC Bank Malaysia Berhad 13,892,756 55,739,887
PT Bank HSBC Indonesia 29,273,078 52,769,162
The Hongkong and Shanghai Banking
Corporation Limited 23,256,591 67,375,046
The Hongkong and Shanghai Banking
Corporation Limited, Bangkok 35,569,276 50,524,759
The Hongkong and Shanghai Banking
Corporation Limited, Seoul Branch 21,429,748 48,020,913
The Hongkong and Shanghai Banking
Corporation Limited, Singapore 50,380,033 45,040,885
The Hongkong and Shanghai Banking
Corporation Ltd – Philippine Branch 13,270,197 33,582,724
34
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
8. TRANSACTIONS AND BALANCES WITH RELATED PARTIES INCLUDING THE MANAGER,
TRUSTEE AND THEIR CONNECTED PERSONS (Continued)
(i) Other respective amounts paid to the Trustee or Manager and their connected persons
(i) During the years ended 30th June 2021 and 2020, other than trustee fee paid to the
Trustee or its Connected Persons, other respective amounts paid to the Trustee or its
Connected Persons were as follows:
For the year ended For the year ended
30.06.2021 30.06.2020
US$ US$
Publication and printing expenses 76 83
Safe custody and bank charges 662 623
Transaction handling fee* 11,975 14,970
Legal and professional fees 2,250 5,000
Other operating expenses 12,501 12,603
* Transaction handling fee is charged on purchases and sales of investments.
(ii) During the year ended 30th June 2021 and 2020, other than management fee paid to the
Manager no other respective amounts were paid to the Manager or its Connected Persons.
9. OTHER EXPENSES
(a) Index license fee
The index license fee is paid to the Index Provider of the Underlying Index. The index license
fee is calculated at a scale rate with a maximum of 0.0175% per annum (2020: 0.0175% per
annum) on the daily average net asset value of the Fund, subject to a minimum of US$184,000
per annum (2020: US$184,000 per annum). The index license fee is accrued daily and is
payable quarterly in arrears.
(b) Processing agent fee
The processing agent fee is paid to Hong Kong Conversion Agency Services Limited. The
processing agent performs, through Hong Kong Securities Clearing Company Limited, certain
of its services in connection with the subscription and redemption of Units by authorised
participants including facilitating the deposit of units into Central Clearing and Settlement
System (“CCASS”) upon creation of units and the withdrawal of units from CCASS upon
redemption.
A monthly retainer fee of HK$5,000 is also charged to the Fund.
35
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT
(a) Strategy in using financial instruments
The investment objective of the Fund is to seek to provide investment results that correspond
closely to the total return of the Underlying Index, before fees and expenses. The Underlying
Index is determined and composed by the Index Provider. The Underlying Index is an indicator
of investment returns of Asian Currency denominated debt obligations issued or guaranteed
by an Asian government, quasi Asian government organisations or supranational financial
institutions, in each case as determined by the Index Provider and which are for the time being
constituent securities of the Underlying Index.
The Fund is exposed to risks including market price risk, interest rate risk, credit risk, liquidity
risk, currency risk and emerging market risk.
These risks, and the respective risk management policies employed by the Fund to manage
these risks, are discussed below.
(b) Market price risk
Market price risk is the risk that the value of a financial instrument will fluctuate as a result
of changes in market prices, whether those changes are caused by factors specific to the
individual instrument or factors affecting all instruments in the market.
The Fund is designated to track the performance of the Markit iBoxx ABF Pan-Asia Index,
therefore the exposures to market risk in the Fund will be substantially the same as the tracked
index. The Manager manages the Fund’s exposures to market risk by ensuring that the key
characteristics of the portfolio, are closely aligned with the characteristics of the tracked index.
As at year-end, the overall market exposures were as follows:
2021 2020
Fair value Cost % of Fair value Cost % of
US$ US$ net assets US$ US$ net assets
Investments
– Debt securities 3,745,325,374 3,657,902,336 100.16 3,631,886,293 3,579,994,418 99.94
3,745,325,374 3,657,902,336 100.16 3,631,886,293 3,579,994,418 99.94
36
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT (Continued)
(b) Market price risk (Continued)
Market exposures
The following table shows the market exposure the Fund has to various markets, incorporating
the underlying market risk through all financial assets held by the Fund.
2021 2020
US$ equivalent US$ equivalent
Markets exposed to
China 938,277,802 912,466,936
Hong Kong 310,815,034 308,998,779
Indonesia 294,156,346 282,523,479
Malaysia 432,695,041 417,782,801
Philippines 241,005,536 213,102,425
Singapore 588,301,708 570,539,673
South Korea 576,266,702 570,973,705
Thailand 363,807,205 355,498,495
3,745,325,374 3,631,886,293
There were investments issued by a single issuer with market value exceeding 10% of the
Fund’s net asset value at 30th June 2021 or 2020, as follows:
2021 2020
% %
China Government 18.47 18.32
Korea Treasury 10.24 12.15
Singapore Government 13.98 13.68
During the year ended 30th June 2021, the Underlying Index increased by 4.38% (1 year return
as of 30th June 2020: increased by 5.57%), while the returns of the Fund including dividends
increased by 3.80% (1 year return as of 30th June 2020: increased by 5.01%).
37
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT (Continued)
(b) Market price risk (Continued)
Market exposures (Continued)
The table below summarises the impact on net assets attributable to unitholders as a result
of increases/decreases of the Underlying Index to which the Fund is exposed. The analysis is
based on the assumption that the Underlying Index had increased/decreased by the respective
percentage with all other variables held constant and the Fund’s investments moved according
to the historical correlation with the Underlying Index.
2021 2020
Change in Change in
market index Impact market index Impact
% US$ % US$
+/- +/- +/- +/-
Markit iBoxx ABF Pan-Asia
Index in US$ 5.00 187,266,269 5.00 181,594,315
Assumption: The change is based on the annualised return of the Underlying Index since
inception and takes into consideration the Fund’s historical correlation with the Underlying
Index, which would be revised when there is evidence that the Underlying Index have become
significantly more volatile.
The Manager has used their view of what would be a “reasonable shift” in each key market to
estimate the change for use in the market sensitivity analysis above.
Disclosures above are shown in absolute terms, changes and impacts could be positive or
negative. Changes in market index % are revised annually depending on management’s current
view of market volatility and other relevant factors.
(c) Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes
in market interest rates. Interest rate risk is generally lower for shorter-term investments and
higher for longer-term investments.
The majority of the Fund’s financial assets are interest bearing; as a result, the Fund is subject
to significant amounts of risk due to fluctuations in the prevailing levels of market interest
rates. Any excess cash and cash equivalents are invested at short-term market interest rates.
38
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT (Continued)
(c) Interest rate risk (Continued)
The Manager manages the investment portfolio by ensuring that the Fund replicates the
Underlying Index movements effectively based on market exposures as well as duration risks
across the yield curve.
The table below summarises the Fund’s exposure to interest rate risk. It includes the Fund’s
assets and liabilities at fair values, categorised by the earlier of contractual repricing or maturity
dates.
As at 30.06.2021
Non-interest
Up to 1 year 1-5 years Over 5 years bearing Total
US$ US$ US$ US$ US$
Assets
Investments 140,141,223 1,371,360,314 2,233,823,837 – 3,745,325,374
Amounts due from brokers – – – 36,614,428 36,614,428
Other receivables 95,135 – – 23,838 118,973
Cash at banks 29,247,055 – – – 29,247,055
Total assets 169,483,413 1,371,360,314 2,233,823,837 36,638,266 3,811,305,830
Liabilities
Amounts payable on
redemption of units – – – (32,939,703) (32,939,703)
Amounts due to brokers – – – (30,596,646) (30,596,646)
Audit fee payable – – – (62,630) (62,630)
Trustee fee payable – – – (155,835) (155,835)
Management fee payable – – – (1,036,114) (1,036,114)
Index license fee payable – – – (208,472) (208,472)
Other payables – – – (7,104,935) (7,104,935)
Net assets attributable to
unitholders – – – (3,739,201,495) (3,739,201,495)
Total liabilities – – – (3,811,305,830) (3,811,305,830)
Total interest
sensitivity gap 169,483,413 1,371,360,314 2,233,823,837
39
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT (Continued)
(c) Interest rate risk (Continued)
As at 30.06.2020
Non-interest
Up to 1 year 1-5 years Over 5 years bearing Total
US$ US$ US$ US$ US$
Assets
Investments 95,203,521 1,372,483,329 2,164,199,443 – 3,631,886,293
Amounts due from brokers – – – 59,839,372 59,839,372
Other receivables – – – 22,809 22,809
Cash at banks 8,828,282 – – – 8,828,282
Total assets 104,031,803 1,372,483,329 2,164,199,443 59,862,181 3,700,576,756
Liabilities
Amounts due to brokers – – – (58,639,086) (58,639,086)
Audit fee payable – – – (65,163) (65,163)
Trustee fee payable – – – (158,657) (158,657)
Management fee payable – – – (675,608) (675,608)
Index license fee payable – – – (208,473) (208,473)
Other payables – – – (6,649,248) (6,649,248)
Net assets attributable to
unitholders – – – (3,634,180,521) (3,634,180,521)
Total liabilities – – – (3,700,576,756) (3,700,576,756)
Total interest
sensitivity gap 104,031,803 1,372,483,329 2,164,199,443
At 30th June 2021, should interest rates have lowered/risen by 50 basis points (2020: 50
basis points) with all other variables remaining constant, the increase/decrease in net assets
attributable to unitholders for the year would amount to approximately US$142,243,095
and US$132,324,919 respectively (2020: US$138,862,038 and US$128,759,016), arising
substantially from the increase/decrease in market values of debt securities.
Assumption: The change is based on the historical interest rate fluctuations and would be
revised when there is evidence that interest rates have become significantly more volatile.
40
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT (Continued)
(d) Credit and counterparty risk
Credit and counterparty risk is the risk that an issuer or counterparty will be unable or unwilling
to pay amounts in full when due.
All transactions in securities are settled/paid for upon delivery using approved brokers. The risk
of default from transactions is considered minimal, as delivery of securities sold is only made
when the broker has received payment. Payment is made on a purchase when the securities
have been received by the broker. The trade will fail if either party fails to meet its obligation.
The Fund ’ s financial assets which are potentially subject to concentration of counterparty
risk consist principally of bank deposits, assets held and collateral securities held with the
custodians.
The table below summarises the assets placed with banks, custodians and custodians of
collateral securities at 30th June 2021 and 2020:
As at 30.06.2021
Source of
US$ Credit rating credit rating
Custodians and Banks
The Hongkong & Shanghai
Banking Corporation Limited 3,774,572,429 Aa3 Moody’s
Custodians of collateral securities
HSBC Bank Plc 110,211,589 Aa3 Moody’s
JP Morgan Bank Luxembourg S.A.1 288,449,854 Aa1 Moody’s
As at 30.06.2020
Source of
US$ Credit rating credit rating
Custodians and Banks
The Hongkong & Shanghai
Banking Corporation Limited 3,640,714,575 Aa3 Moody’s
Custodian of collateral securities
HSBC Bank Plc 92,691,825 Aa3 Moody’s
JP Morgan Bank Luxembourg S.A.1 262,828,451 Aa1 Moody’s
1
JP Morgan Bank Luxembourg S.A. is a tri-party collateral manager to whom the Securities Lending Agent,
HSBC Bank Plc, delegates certain of its collateral management, margining and custodial functions.
41
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT (Continued)
(d) Credit and counterparty risk (Continued)
The table below categorised the investment portfolio by credit rating sourced from Standard &
Poor’s or iBoxx.
Portfolio by rating category
Rating (Markit iBoxx) 2021 2020
% of Investment % of Investment
AAA 15 14
AA 22 24
A 36 38
BBB 20 18
Non-rated 7 6
Total 100 100
During the years ended 30th June 2021 and 2020, the Fund put in place a securities lending
arrangement. Any securities lending activities for the Fund would be carried out for the sole
purpose of efficient portfolio management, which aims to generate additional income for
the scheme with minimal increase in risk. At the time that any securities are lent or proposed
to be lent, the amount of securities of that issue being lent must not be more than 50% of
the aggregate market holding of securities. The Fund will only lend securities to a borrower
approved by the Trustee. Borrowers will be restricted to persons who satisfy the criteria for
a counterparty to a securities lending agreement as required under all applicable laws and
regulations. At present, borrowers of security lending transactions are required to have a
minimum long-term rating of ‘A’ by Moody’s, ‘A’ by Standard and Poor’s or ‘A’ by Fitch. For
more details, please refer to the Details of Security Lending Arrangements (Unaudited).
As part of its securities lending transactions, the Fund will receive collateral, the value of
which, during the duration of the securities lending agreement, will exceed 100% of the
global valuation of the securities lent, marked to market on a daily basis. The collateral that
is to be acquired in respect of securities lending shall comprise securities of the underlying
index, non-index securities and/or other high quality cash equivalent investments approved
by the Trustee and permitted under the Trust Deed. For non-cash collateral, eligible collateral
includes government debt or supranational debt with a minimum long-term rating of ‘A’ by
Moody’s, ‘A’ by Standard and Poor’s or ‘A’ by Fitch. The Fund will only accept cash collateral
in circumstances where collateral is accepted through the Euroclear SA collateral management
system, and the collateral substitution process for the system requires the interstitial acceptance
of cash collateral. No interest would be paid on such cash collateral, which would be held by
HSBC Bank Plc as banker. The Fund will not reinvest collateral received in connection with its
securities lending.
42
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT (Continued)
(d) Credit and counterparty risk (Continued)
The table below categorised the securities on loan by credit rating of the collateral provider
sourced from Moody’s Rating Services.
As at 30.06.2021
Credit rating of the Fair value
Collateral provider collateral provider2 of collateral Securities on loan
US$ US$
BNP Paribas London Aa3 31,226,799 29,699,652
Credit Suisse AG Singapore
Branch A1 257,223,055 245,288,001
Nomura International PLC Baa1 110,211,589 104,495,854
398,661,443 379,483,507
As at 30.06.2020
Credit rating of the Fair value
Collateral provider collateral provider2 of collateral Securities on loan
US$ US$
BNP Paribas London Aa3 13,872,021 13,193,294
Credit Suisse Securities
(Europe) Limited A1 248,956,430 236,920,207
Nomura International PLC Baa1 92,691,825 88,046,787
355,520,276 338,160,288
2
Credit ratings of long term counterparty risk by Moody’s Rating Services
43
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT (Continued)
(d) Credit and counterparty risk (Continued)
The maximum exposure to credit and counterparty risk as at 30th June 2021 and 2020 is the
carrying amount of the financial assets as set out below:
2021 2020
US$ US$
Investments 3,745,325,374 3,631,886,293
Amounts due from brokers 36,614,428 59,839,372
Other receivable 118,973 22,809
Cash at banks 29,247,055 8,828,282
3,811,305,830 3,700,576,756
The Manager limits the Fund’s exposure to counterparty risk by transacting the majority of
its securities and contractual commitment activities with broker-dealers, banks and regulated
exchanges with high credit ratings and that the Manager considers to be well established.
The Fund measures credit risk and expected credit losses using probability of default, exposure
at default and loss given default. At 30th June 2021 and 2020, other receivables, amounts
due from brokers, amount receivable on subscription of units, cash at banks are due to be
settled within 1 month. 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 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 12-month expected credit losses as any such impairment would be wholly insignificant
to the Fund.
(e) Liquidity risk
Liquidity risk is the risk that the Fund will encounter difficulty or incur higher costs in settling a
liability, including a redemption request.
The Fund is exposed to daily redemptions of units in the Fund. The Manager invests the
majority of the Fund’s assets in investments that are traded in active markets and which can be
readily disposed of. During the years ended 30th June 2021 and 2020, the Fund entered into
securities lending transactions. As at 30th June 2021, investments of US$379,483,507 (2020:
US$338,160,288) were lent to the borrowers and were recallable on demand.
44
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT (Continued)
(e) Liquidity risk (Continued)
The table below analyses the Fund’s non-derivative financial liabilities into relevant maturity
groupings based on the remaining period at the year-end date to the contractual maturity date.
The amounts in the table are the contractual undiscounted cash flows. Balances due within 12
months equal their carrying balances, as the impact of discounting is not significant.
Less than 1 month to less Over
1 month than 3 months 3 months
US$ US$ US$
As at 30.06.2021
Amounts payable on
redemption of units 32,939,703 – –
Amounts due to brokers 30,596,646 – –
Audit fee payable – 62,630 –
Trustee fee payable – 155,835 –
Management fee payable – 1,036,114 –
Index license fee payable – 208,472 –
Other payables 3,198 82,234 7,019,503
Net assets attributable to unitholders 3,739,201,495 – –
Contractual cash outflows 3,802,741,042 1,545,285 7,019,503
As at 30.06.2020
Amounts due to brokers 58,639,086 – –
Audit fee payable – 65,163 –
Trustee fee payable – 158,657 –
Management fee payable – 675,608 –
Index license fee payable – 208,473 –
Other payables 176,196 56,627 6,416,425
Net assets attributable to unitholders 3,634,180,521 – –
Contractual cash outflows 3,692,995,803 1,164,528 6,416,425
45
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT (Continued)
(e) Liquidity risk (Continued)
Units are redeemed on demand at the unitholder’s option. However, the Trustee and the
Manager do not envisage that the contractual maturity disclosed in the tables above will be
representative of the actual cash outflows, as the unitholders typically retain their units for the
medium to long term. At 30th June 2021, there was 1 unitholder (2020: 1), which were the
nominee account unitholders of the Fund holding more than 10% of the Fund’s units. Please
refer to note 13 for details.
The Fund manages its liquidity risk by investing in investments that it expects to be able to
liquidate within one month or less. The following table illustrates the expected liquidity of
assets held:
Less than 1 month 1 to 12 months
US$ US$
As at 30.06.2021
Total assets 3,811,305,830 –
Less than 1 month 1 to 12 months
US$ US$
As at 30.06.2020
Total assets 3,700,576,756 –
(f) Currency risk
Currency risk is the risk that the value of financial instruments will fluctuate due to changes in
foreign exchange rates.
The Fund has assets and liabilities denominated in currencies other than US$, the functional
currency. The Fund is therefore exposed to currency risk, as the value of the assets and liabilities
denominated in other currencies will fluctuate due to changes in exchange rates. Although
the Fund has not actively engaged in hedging activities, the Manager may enter into spot and
forward foreign exchange contracts from time to time to hedge against the fluctuations in
exchange rates in relation to the settlement of subscription and redemption of units, and other
operational uses such as covering the Fund’s exposure to currency risk from re-balancing the
portfolios prior to market closure due to holidays.
46
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT (Continued)
(f) Currency risk (Continued)
The table below summarises the Fund’s monetary exposure to currency risks:
2021 2020
US$ US$
equivalents equivalents
Hong Kong Dollar 311,626,538 310,408,976
Indonesian Rupiah 293,682,429 284,486,170
Malaysian Ringgit 433,088,934 416,589,366
Philippine Peso 240,327,117 212,642,078
Renminbi 933,189,719 910,195,461
Singapore Dollar 588,506,803 573,248,181
South Korean Won 575,873,582 570,934,316
Thai Baht 363,846,997 356,009,041
The table below summarises the impact on net assets attributable to unitholders as a result of
increases/decreases of key exchange rates on the exposures tabled above, to which the Fund
is exposed. The analysis is based on the assumption that the exchange rates had increased/
decreased by the respective percentage (based on historical currency fluctuations and would be
revised when the currency have become significantly more volatile) with all other variables held
constant.
2021 2020
Change Impact Change Impact
% US$ % US$
+/- +/- +/- +/-
Hong Kong Dollar 1 3,116,265 1 3,104,090
Indonesian Rupiah 12 35,241,891 12 34,138,340
Malaysian Ringgit 12 51,970,672 12 49,990,724
Philippine Peso 12 28,839,254 12 25,517,049
Renminbi 11 102,650,869 11 100,121,501
Singapore Dollar 8 47,080,544 8 45,859,854
South Korean Won 12 69,104,830 12 68,512,118
Thai Baht 12 43,661,640 12 42,721,085
47
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT (Continued)
(g) Emerging market risk
The Fund invests in certain Asian bond markets that are considered to be emerging markets.
These markets are subject to special risks associated with foreign investment in these emerging
markets including, but not limited to: generally less efficient securities markets; generally
greater price volatility; exchange rate fluctuations and exchange controls; imposition of
restrictions on the expatriation of funds or other assets; less publicly available information
about issuers; the imposition of taxes; higher transaction and custody costs; settlement delays
and risk of loss; difficulties in enforcing contracts; lesser regulation of securities markets;
smaller market capitalization; different accounting and disclosure standards; governmental
interference; greater risk of market shutdown; the risk of expropriation of assets; higher
inflation; and social, economic and political uncertainties.
The Fund is designed to track the performance of the Underlying Index, a broad Asian local
currency bond index; therefore the exposure to emerging market risk in the Fund will be
substantially the same as the Underlying Index. As an index fund, the Manager manages
the Fund’s exposure to emerging market risk by ensuring that the key characteristics of the
Fund, such as market weights and duration, are closely aligned to the characteristics of the
Underlying Index.
(h) Capital risk management
The Fund’s capital is represented by the net assets attributable to unitholders. The amount of
net assets attributable to unitholders can change significantly on a daily basis as the Fund is
subject to daily subscriptions and redemptions at the discretion of the unitholders. The Fund’s
objectives when managing capital are to safeguard the Fund’s ability to continue as a going
concern in order to provide returns for the unitholders and benefits for other stakeholders and
to maintain a strong capital base to support the development of the investment activities of the
Fund.
In order to maintain or adjust the capital structure, the Fund ’ s policy is to perform the
following:
– monitor the level of daily subscriptions and redemptions relative to the liquid assets; and
– redeem and issue units in accordance with the Trust Deed and supplemental deeds.
The Trustee and Manager monitor capital on the basis of the value of net assets attributable to
unitholders.
48
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT (Continued)
(i) Fair value estimation
The fair value of financial assets and liabilities traded in active markets are based on quoted
market prices at the close of trading on the year end date. The quoted market price used for
financial assets held by the Fund is the current bid price.
A financial instrument is regarded as quoted in an active market if quoted prices are readily
and regularly available from an exchange, dealer, broker, industry group, pricing service, or
regulatory agency, and those prices represent actual and regularly occurring market transactions
on an arm’s length basis.
The carrying value less impairment provision of other receivables and payables are assumed
to approximate their fair values. The fair value of financial liabilities for disclosure purposes is
estimated by discounting the future contractual cash flows at the current market interest rate
that is available to the Fund for similar financial instruments.
IFRS 13, 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 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at measurement date;
– Level 2 inputs are inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly or indirectly; and
– Level 3 inputs are unobservable inputs for the asset or liability.
The level in the fair value hierarchy within which the fair value measurement is categorised in
its entirety is determined on the basis of the lowest level input that is significant to the fair
value measurement in its entirety. For this purpose, the significance of an input is assessed
against the fair value measurement in its entirety. If a fair value measurement uses observable
inputs that require significant adjustment based on unobservable inputs, that measurement
is a Level 3 measurement. Assessing the significance of a particular input to the fair value
measurement in its entirety requires judgment, considering factors specific to the asset or
liability.
The determination of what constitutes “observable” requires significant judgment by the Fund.
The Fund considers observable data to be that market data that is readily available, regularly
distributed or updated, reliable and verifiable, not proprietary, and provided by independent
sources that are actively involved in the relevant market.
49
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10. FINANCIAL RISK MANAGEMENT (Continued)
(i) Fair value estimation (Continued)
The following table analyses within the fair value hierarchy the Fund’s investments measured at
fair value at 30th June 2021 and 2020:
As at 30.06.2021 Level 1 Level 2 Level 3 Total
US$ US$ US$ US$
Investments
– Debt securities – 3,745,325,374 – 3,745,325,374
– 3,745,325,374 – 3,745,325,374
As at 30.06.2020 Level 1 Level 2 Level 3 Total
US$ US$ US$ US$
Investments
– Debt securities – 3,631,886,293 – 3,631,886,293
– 3,631,886,293 – 3,631,886,293
Investments whose values are based on quoted market prices in active markets are classified
within Level 1. As of 30th June 2021 and 2020, the Fund did not hold any investments
classified in Level 1.
Financial instruments that trade in markets that are valued based on quoted market prices,
dealer quotations or alternative pricing sources supported by observable inputs are classified
within Level 2. As of 30th June 2021 and 2020, the Fund held investments in debt securities
which were classified in Level 2.
Investments classified within Level 3 have significant unobservable inputs, as they trade
infrequently. As of 30th June 2021 and 2020, the Fund did not hold any investments classified
in Level 3.
There was no transfer between levels for the years ended 30th June 2021 and 2020.
The assets and liabilities included in the Statement of Net Assets, except for investments, are
carried at amortised cost; their carrying values are a reasonable approximation of fair value.
50
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
11. SOFT DOLLAR PRACTICES
The Manager may effect transactions, provided that any such transactions are consistent with
standards of “best execution”, by or through the agency of another person for the account of the
Fund with whom the Manager or any of its Connected Persons have an arrangement under which
that party will from time to time provide to or procure for the Manager or any of its Connected
Persons goods, services or other benefits (such as research and advisory services, computer
hardware associated with specialised software or research services and performance measures) the
nature of which is such that their provision can reasonably be expected to benefit the Fund as a
whole and may contribute to an improvement in the performance of the Fund. For the avoidance
of doubt, such goods and services may not include travel, accommodation, entertainment,
general administrative goods or services, general office equipment or premises, membership fees,
employees’ salaries or direct money payments.
The Manager has not participated in any soft dollar arrangements in respect of any transactions for
the account of the Fund during the years ended 30th June 2021 and 2020.
12. DISTRIBUTIONS
2021 2020
US$ US$
Undistributed income brought forward
at the beginning of the year – –
Net income for the year 137,947,591 178,199,159
Interim distribution
– US$1.27 on 30,686,824 units paid
on 3rd February 2021 (38,972,267) –
– US$1.42 on 30,861,354 units paid
on 5th February 2020 – (43,823,123)
Final distribution
– US$1.23 on 30,354,614 units paid
on 3rd August 2020 (37,336,175) –
– US$1.64 on 31,615,774 units paid
on 1st August 2019 – (51,849,869)
Undistributed income transferred to net assets
attributable to unitholders for the year (61,639,149) (82,526,167)
Undistributed income carried forward
at the end of the year – –
51
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
13. SEGMENT INFORMATION
The Manager makes the strategic resource allocations on behalf of the Fund. The Fund has
determined the operating segments based on the reports reviewed by the Manager, which are used
to make strategic decisions.
The Manager is responsible for the Fund’s entire portfolio and considers the business to have a
single operating segment. The Manager ’s asset allocation decisions are based on a single, integrated
investment strategy and the Fund’s performance is evaluated on an overall basis.
The investment objective of the Fund is to seek to provide investment results that correspond to the
total return of the Markit iBoxx ABF Pan-Asia Index, before fees and expenses.
The internal reporting provided to the Manager for the Fund’s assets, liabilities and performance is
prepared on a consistent basis with the measurement and recognition principles of IFRSs.
There were no changes in the reportable segments during the years ended 30th June 2021 and
2020.
All activities of the Fund are in a single business of investment activities conducted mainly in the
Asia Pacific region. The Fund’s income is from investments in debt securities issued by organisations
in the Asia Pacific region.
The Fund has no assets classified as non-current assets. The Fund has a diversified portfolio of
investments. Please refer to Note 10(b) for investment holdings issued by a single issuer that
account for more than 10% of the Fund’s net assets.
The underlying index of the Fund namely Markit iBoxx ABF Pan-Asia Index, did not have any
constituent stock that accounted for more than 10% of the index as at 30th June 2021 (2020: Nil).
The Fund also has a diversified unitholder population. As at 30th June 2021, there was one (2020:
one) unitholder, which was the nominee account unitholder of the Fund holding more than 10% of
the Fund’s units. The nominee account unitholder holds 93% (2020: 93%) of the Fund’s units as at
30th June 2021.
52
ABF Pan Asia Bond Index Fund
Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS (Continued)
14. SUPPLEMENTAL RATIOS
2021 2020
Expense ratio 3 0.18% 0.19%
Turnover ratio 4 14.59% 24.32%
3
The expense ratio has been computed based on the guidelines laid down by the Investment Management
Association of Singapore (“IMAS”). The calculation of the expense ratio at financial year end was based on
total operating expenses of US$6,939,518 (2020: US$6,912,780) divided by the average net asset value of
US$3,775,766,745 (2020: US$3,638,494,333) for the year. The total operating expenses do not include (where
applicable) brokerage and other transactions costs, performance fee, interest expense, distribution paid out to
unitholders, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other
funds and tax deducted at source or arising out of income received. The Fund does not pay any performance
fee. The average net asset value is based on the daily balances.
4
The portfolio turnover ratio is calculated in accordance with the formula stated in the Code on Collective
Investment Schemes. The calculation of the portfolio turnover ratio was based on the lower of the total value
of purchases or sales, being sales of US$550,936,073 (2020: purchases of US$884,984,816) of the underlying
investments, divided by the average daily net asset value of US$3,775,766,745 (2020: US$3,638,494,333). In
line with Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” (“RAP 7”)
issued by the Institute of Singapore Chartered Accountants, total value of purchases or sales for the current
year do not include brokerage and other transaction costs.
15. EVENT OCCURRING AFTER YEAR-END DATE
Subsequent to the year end, the Fund announced a dividend distribution of US$1.37 per unit on 7th
July 2021. The dividend was paid on 3rd August 2021. The net assets attributable to unitholders as
at 30th June 2021 has not accrued the dividend distribution payable as mentioned above.
16. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved by the Trustee and the Manager on 23rd September 2021.
53