Hong Leong Balanced Fund 2012/2013 - Hong Leong Asset Management
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Reaching out to you
Hong Leong Balanced Fund
Annual Report 2012/2013
30 June 2013 Audited
Hong Leong Asset Management Bhd (318717-M)
Level 8, Menara HLA, No. 3, Jalan Kia Peng, 50450 Kuala LumpurHong Leong Balanced Fund
Audited Annual Report and Financial
Statements for the Financial Year From 1 July
2012 to 30 June 2013
Contents
Pages
Manager's Review and Report 1-12
经理人回顾与报告 13-20
Statement of Comprehensive Income 21
Statement of Financial Position 22
Statement of Changes in Net Asset Value 23
Statement of Cash Flows 24
Notes to the Financial Statements 25-60
Trustee’s Report 61
Statement by the Manager 62
Independent Auditors' Report 63-65
Performance Data 66-67
Corporate Information / 企业资讯 68
Corporate Directory / 地址手册 69Manager’s Review and Report
I. FUND INFORMATION
Fund Name
Hong Leong Balanced Fund
Fund Category
Balanced
Fund Type
Growth & Income
Investment Objective
To achieve regular income* and consistent capital
growth over the Medium-To-Long Term** by investing
in a diversified investment portfolio containing a
balanced mixture of equities and fixed income
securities.
Performance Benchmark
3 Months KLIBOR rate (40% weightage) and the
FTSE Bursa Malaysia KLCI (60% weightage).
Distribution Policy
The Fund intends to provide regular income* and
consistent Long-Term*** capital growth. As such,
regular income returns will be declared on a best effort
basis, depending on interest rates, market conditions
and the performance of the Fund.
Notes:
* The Fund’s main focus is on income and to a lesser extent, capital
growth.
** Medium-To-Long Term refers to a period of 3 to 5 years
*** Long-Term refers to a period of above 5 years.
HONG LEONG BALANCED FUND 1BREAKDOWN OF UNITHOLDINGS BY SIZE
Size of Holdings No. of Accounts No. of Units Held
5,000 and below 428 1,127,116.42
5,001 to 10,000 189 1,401,685.79
10,001 to 50,000 450 9,636,917.52
50,001 to 500,000 92 8,187,366.50
500,001 and above 5 28,984,844.17
II. FUND PERFORMANCE
Chart 1: Comparison between the Fund’s
performance and the performance of the
benchmark disclosed in the prospectus
covering the last five financial years
60
50
40
Percentage Growth
30
20
10
0
-10
-20
-30
30/06/2008
31/12/2008
31/12/2009
31/12/2010
31/12/2011
31/12/2012
30/06/2013
From 30/06/2008 to 30/06/2013
Hong Leong Balanced Fund (HLBF) 48.23
FTSE BM KLCI + 3 Months KLIBOR Rate
Index (60:40) 36.73
Source: Lipper, In Malaysian Ringgit terms, ex-distribution, NAV Per Unit-
to-NAV Per Unit basis with income distributions reinvested, if any.
Investors are advised that past performance of
the Fund is not an indication of its future
performance. The value of your units may go
down as well as up.
2 HONG L E O N G B A L A N C E D F U N DPERFORMANCE REVIEW
This Annual Report covers the twelve-month financial
year from 1 July 2012 to 30 June 2013.
Over the past one year, the Fund garnered a total
return of 11.05% while its benchmark, the FTSE Bursa
Malaysia KLCI +3 Months KLIBOR Rate (60:40)
posted a gain of 7.88%. During the review period, the
Fund has distributed an income distribution of 1.75
sen per unit on 29 March 2013. Prior to the income
distribution, the cum-distribution net asset value
(NAV) per unit of the Fund was RM0.5208 while the
ex-distribution NAV per unit immediately after the
distribution was RM0.5054. Investors should note
that income distributions do not affect the value of
their investment and are not in any way to forecast
the future or likely performance of the Fund.
For the period 1 July 2008 to 30 June 2013, the Fund
was up 48.23% compared to the benchmark return of
36.73% while distributing a total gross income of
16.25 sen per unit. As such, the Manager concluded
that the Fund has met its investment objective of
providing regular income and medium-to-long term
capital growth for its Unitholders.
Looking forward, the Fund will continue to pursue an
active participation in the markets, in line with our
dynamic portfolio strategy to maximize gains.
This strategy will help the Fund to optimize returns
and strategically position for outperformance over the
medium-to-long term angle.
HONG LEONG BALANCED FUND 3Table 1: Total Return of the Fund for the following
periods as at 30 June 2013 (Source: Lipper)
29/04/02-
31/03/13 - 31/12/12 - 30/06/12 - 30/06/11 - 30/06/10 - 30/06/08- 30/06/03 - 30/06/13
30/06/13 30/06/13 30/06/13 30/06/13 30/06/13 30/06/13 30/06/13 Since
3 Months 6 Months 1 Year 2 Years 3 Years 5 Years 10 Years Launch
HLBF
Return (%) 6.29 9.82 11.05 14.07 33.92 48.23 131.42 144.03
Benchmark (%) 3.96 3.67 7.88 10.36 24.80 36.73 103.74 91.57
Table 2 : Performance of HLBF on NAV Per Unit-to-
NAV Per Unit basis for the period 30 June
2012 to 30 June 2013 (Source : Lipper)
30-Jun-12 30-Jun-13 Returns
(%)
NAV Per Unit RM0.5005^ RM0.5372^ 11.05#
Benchmark* 251.40 271.21 7.88
Vs Benchmark (%) - - 3.17
# Percentage change is calculated after adjusting for an income
distribution of 1.75 sen on 29/03/2013.
^ In accordance with MFRS 139, quoted financial assets have been
valued at the bid prices at the close of business. Nonetheless,
quoted financial assets have been valued at the closing market
prices for the purpose of calculating net asset value (“NAV”) per
unit attributable to Unitholders for issuance and redemption of
units. Hence, the NAV per unit disclosed above is different from the
NAV per unit disclosed in the financial statements.
Table 3: Financial Highlights
The Net Asset Value attributable to Unitholders is
represented by:
Unitholders’ Fund 30-Jun-13 30-Jun-12 Change
(RM) (RM) (%)
Unitholders’ Capital 15,764,460 14,085,373 11.92
Distribution Equalisation (493,229) (9,286,874) 94.69
Retained Earnings
- Unrealised Gain 2,398,006 2,097,463 14.33
- Undistributed Income 8,744,394 15,565,130 -43.82
11,142,400 17,662,593 -36.92
Net Asset Value 26,413,631 22,461,092 17.60
Units in Circulation 49,342,930 45,007,467 9.63
4 HONG L E O N G B A L A N C E D F U N DTable 4: The Highest and Lowest NAV Per Unit, Total
Return of the Fund, and the breakdown into
Capital Growth and Income Distribution for
the financial years
Financial Financial Financial
Year From Year From Year From
30/06/12- 30/06/11- 30/06/10-
30/06/13 30/06/12 30/06/11
Highest NAV Per Unit (RM) 0.5476 0.5243 0.5225
Lowest NAV Per Unit (RM) 0.4992 0.4716 0.4564
Capital Growth (%) 7.33 -4.21 9.06
Income Distribution (%) 3.72 6.93 8.34
Total Return (%) 11.05 2.72 17.40
Source: Lipper, In Malaysian Ringgit terms, ex-distribution, NAV Per
Unit-to-NAV Per Unit basis with income distributions reinvested, if any.
Table 5: Average Total Return of the Fund
30/06/12 - 30/06/10 - 30/06/08-
30/06/13 30/06/13 30/06/13
1 Year 3 Years 5 Years
Average Total Return (%) 11.05 11.31 9.65
Source: Lipper, In Malaysian Ringgit terms, ex-distribution, NAV Per
Unit-to-NAV Per Unit basis with income distributions reinvested, if any.
Table 6: Annual Total Return of the Fund
Financial Year 30/06/12- 30/06/11- 30/06/10- 30/06/09- 30/06/08-
30/06/13 30/06/12 30/06/11 30/06/10 30/06/09
Annual Total
Return (%) 11.05 2.72 17.40 16.80 -5.23
Source: Lipper, In Malaysian Ringgit terms, ex-distribution, NAV Per
Unit-to-NAV Per Unit basis with income distributions reinvested, if any.
HONG LEONG BALANCED FUND 5III. INVESTMENT PORTFOLIO
Chart 2: Asset Allocation from July 2012 to June 2013
100%
80%
60%
40%
20%
0%
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec -12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Equities Fixed Income Securities
Collective Investment Schemes
Chart 3: Asset Allocation as at 30 June 2013
Deposits, Malaysian
Plantation Receivables Government
1.81% and others Securities
Construction 12.49% 19.10% Corporate
2.62% Bonds
15.14%
Properties
2.90%
Trading/
Infrastructure Services
Project Company 13.81%
2.98% Industrial Consumer,
Collective Finance Products
Products Investment 9.06%
3.13% 9.89%
Schemes
7.07%
In the first half of the financial year, the portfolio
composition remained relatively unchanged, with the
exception of Property sector which the Fund raised
equity weighting marginally. We had taken profits of
certain Consumer names in Trading/Services sector
as these Consumer stocks appeared reaching their
peak in valuation terms.
We positioned the Fund defensively in the second half
of the financial year by selling government-linked
stocks and increased cash holdings ahead of the May
6 HONG L E O N G B A L A N C E D F U N D5th General Election. We bought back the stocks after
the political uncertainty was removed.
On the fixed income front, the Fund actively reduced
duration, as periods of volatility have necessitated us
to position the Fund defensively. The Fund has also
switched out from higher grade names into AA3
credits to benefit from higher carry and relative value
afforded by this credit segment. Currently, the Fund’s
duration stands at 5.11 years.
As of 30 June 2013, the Fund’s top-three equity
holdings are Malayan Banking Berhad (3.29%),
Power Root Berhad (3.26%) and Lingkaran Trans
Kota Holdings Berhad (2.98%), while top-three fixed
income holdings are Pengurusan Air SPV Berhad-
MGS (15.33%), TNB Northern Energy
Berhad-Unlisted Bond (11.35%) and Quill Retail Malls
Sendirian Berhad-Unlisted Bond (3.79%).
For the financial year under review, there were no
significant changes to the state of affairs of the Fund
or circumstances that would materially affect the
interest of the Unitholders up to the date of this
manager’s report.
IV. MARKET REVIEW
Equity
Bursa Malaysia kicked off the financial year on a
strong note, as a slew of positive newsflow on the
Economic Transformation Programme (ETP) lifted
market sentiment. Appetite for risk assets also grew
increasingly stronger on the back of aggressive
interest rate cuts by global central banks, and the
Fed’s third round of quantitative easing (QE3) by
buying USD40 billion mortgage debts on monthly
HONG LEONG BALANCED FUND 7basis for unlimited periods to battle its stubbornly
high unemployment rate. This strong dosage of
monetary easing fuelled liquidity optimism across the
financial markets and lifted equity prices higher.
US fiscal cliff worries and a number of elections and
leadership handovers in Asia and US grabbed market
headlines and drove investors into risk-on/risk-off
mode in the fourth quarter of 2012. Despite
significant headwinds, equity markets extended their
rally in response to the election outcomes/smooth
leadership transitions that came as a relief to global
financial markets. Market sentiment was also
underpinned by a string of positive economic data
from both developed and major emerging economies
that eased fears of economic hard landing in China
and fanned hopes for a firmer global recovery in 2013.
The regional equity rally spilled over to the first
quarter of 2013, as improved global growth outlook
continued to serve as a strong catalyst while BoJ’s
aggressive monetary expansion to jumpstart the
country’s economic growth further lifted market
sentiment. But, Bursa Malaysia lagged its regional
peers as election jitters dominated market sentiment
and kept investors on the sidelines.
Malaysia fared better than the rest of the regional
stock markets in the second quarter of 2013. The
catch-up rally post General Election sent the FTSE BM
KLCI to all-time highs as investors interpreted Barisan
Nasional’s victory as a confirmation of continuity in
government’s policies and development agendas, a
requisite for sustainable economic growth and
financial market stability.
The post-election euphoria, however, receded at the
tail end of the financial year as heavy selloffs hit risk
8 HONG L E O N G B A L A N C E D F U N Dassets and emerging markets indiscriminately in May
and June. Cautious mood generally dominated market
sentiment on Fed’s tapering talks, triggering foreign
funds exiting their emerging market positions.
Renewed worries about global recovery slowdown
added to market pessimism after China’s GDP (Q1
2013:7.7%) and manufacturing data surprised
investors on the downside.
Fixed income
The review period was dominated by two themes,
namely the Malaysian General Election (“GE13”) and
Federal Reserve’s intent to taper its quantitative
easing programme. Prior to GE13, Malaysian
government securities (MGS) were well supported
but moves lacked conviction.
Post GE13, MGS rallied as investors saw the
incumbent retaining its power as positive for capital
markets and economic growth. However, sentiments
turned for the worse as investors began to price in the
possibility that the US Federal Reserve might taper its
quantitative easing programme.
This was duly confirmed in June’s FOMC meeting
which resulted in the recent increase in volatility
experience by MGS across the curve, taking its cue
from US Treasuries.
The private debt securities market has remained
relatively resilient despite the MGS volatility as
investors remained net buyers throughout the period.
However, primary issuances suffered as a period of
uncertainty prior to GE13 and volatility in May and
June kept both investors and issuers sidelined.
Nevertheless, some notable issuances were seen by
HONG LEONG BALANCED FUND 9strong credits which included WCT Bhd, YTL
Corporation Bhd, TNB Northern Energy Bhd, Batu
Kawan Bhd and Etiqa Bhd.
V. FUTURE PROSPECTS AND PROPOSED STRATEGIES
Equity
Market is likely to be volatile in the short term in view
of Fed tapering talk and China credit crunch. Recent
inflow of foreign funds and higher foreign holdings
could be a drag but “dooms day” scenario unlikely.
With abundant liquidity among domestic institution
investors to support the market, Bursa Malaysia is
likely to stay as a low beta market, thus more resilient
compared with its regional peers.
We continue to focus on stocks with growth visibility.
The rise in government bond yields makes yield
strategy unattractive given the inherent equity risk
and narrowing yield gap. The Fund still prefers Oil &
Gas, Construction and Consumer sectors, and
selective banks.
Fixed income
In line with market expectations, Malaysia’s overnight
policy rate (OPR) remained stable at 3% for the first
half of 2013. Bank Negara in its latest guidance is
biased towards keeping the OPR stable for the
remainder of the year, to support domestic growth in
an environment where developed economies are still
experiencing modest recovery.
During June’s FOMC meeting, Ben Bernanke
confirmed investors’ fears that the central bank will
start tapering its quantitative easing program later
this year and may stop entirely by mid-2014 if the US
10 HONG L E O N G B A L A N C E D F U N Deconomy continues to improve and unemployment
rate fall to 7%. With this, market started to reprice
risks and unwound long positions on US Treasuries
from May to June.
Correspondingly, the MGS markets suffered with
selling pressure seen from both local and foreign
investors. However, the selloff was somewhat
contained as there was strong support from local
investors.
Given the selloff seen over the last two months, local
rates are perceived to be oversold and provide the
opportunity to rebuild positions at more attractive
levels. However, inflation worries could provide food
for thought for local investors in 2014 when subsidy
rationalisation is expected to happen. Even though
inflation has remained benign, it has slowly increased
since the turn of the year, from 1.3% to 1.8% in the
latest reading.
In the corporate space, we still expect net buying
interest from real money given new supply has been
very limited. We expect more primary corporate
issuances in the pipeline after a quiet June where new
issuances were held back due to recent volatility in the
bond market.
As a result of the significant correction seen over the
last two months, we will continue to maintain a
defensive stance by keeping duration neutral, but look
to build positions on dips. We continue to be selective
on the PDS front as local corporate bonds have been
relatively resilient compared to sovereigns.
HONG LEONG BALANCED FUND 11VI. STOCKBROKING REBATES AND SOFT
COMMISSIONS
The Manager received soft commissions from
stockbrokers in the form of goods and services such
as research materials, data and quotation services,
computer software incidental to investment
management of the Fund and investment related
publications. Such soft commissions received are of
demonstrable benefit to the Unitholders.
12 HONG L E O N G B A L A N C E D F U N D经理人回顾与报告
I. 基金资料
基金名称
丰隆平衡基金
基金类别
平衡
基金类型
成长及收益
投资目标
本基金透过投资一项多元化的投资组合，即涵盖股
票和固定收益证券的平衡组合，以便在中长期 ** 取得
固定收益 * 与持续资本增值。
基准指标
3个月吉隆坡同业拆息率(占40%比重）＋富时大马综
合指数（占60% 比重）。
分派政策
本基金致力于提供固定收益 * 与持续的长期 *** 资本增
值。因而，本基金将尽全力派发固定收益回酬，惟
将视利率、市况和基金表现而定。
单位持有详情
单位规模 户口数量 单位持有量
5,000及以下 428 1,127,116.42
5,001至10,000 189 1,401,685.79
10,001至50,000 450 9,636,917.52
50,001至500,000 92 8,187,366.50
500,001及以上 5 28,984,844.17
注：
*
本基金主要专注于争取收益及较小程度的资本增值。
**
中长期是指为期3至5年。
***
长期是指为期超过5年。
HONG LEONG BALANCED FUND 13II.基金表现
图表1: 本基金与基金招股说明书中披露的基准指标
在过去五个财政年的表现对比
60
50
40
30
20
10
0
-10
-20
-30
30/06/2008
31/12/2008
31/12/2009
31/12/2010
31/12/2011
31/12/2012
30/06/2013
由 30/06/2008 至 30/06/2013
丰隆平衡基金 48.23
富 时 大 马 综 合 指 数 ＋3个 月 吉 隆 坡 同
业拆息率（60:40） 36.73
资料来源：Lipper，以令吉为基础，分派后，每单位净资产值对每单位
净资产值，收益分派（若有）将被再投资。
投资者必须注意，基金过往的表现并不代表未
来的表现。单位价值会走低，也会扬升。
表现回顾
本常年报告涵盖2012年7月1日至2013年6月30日的12个
月财政年。
在过去1年，本基金走高11.05%，而基准指标富时大马
综合指数＋3个月吉隆坡同业拆息率(60:40) 指数则录
得7.88%涨幅。在检讨年度，本基金于2013年3月29日
派发每单位1.75仙的收益分配。在收益分派前，本基
金含毛收益分配的净资产值为RM0.5208，除权后的净
资产值则为RM0.5054。投资者须注意，收益分派将不
会影响投资价值，也不代表未来或可能表现的预测。
在2008年7月1日至2013年6月30日期间，本基金扬挺
48.23%，而基准指标则是涨升36.73%；本基金也派发
14 HONG L E O N G B A L A N C E D F U N D每单位16.25仙的毛总收益。因而，经理人总结，本基
金达致为单位持有人提供固定收益与中长期资本增值
的目标。
放眼未来，配合争取最大赚益的动力组合策略，本基
金将继续积极参与市场。
这项策略将助使本基金争取最出色回酬，而策略部署
也将使本基金中长期跑赢大市。
表1: 本基金截至2013年6月30日止下述期限的总回
酬（资料来源:Lipper）
29/04/02-
31/03/13 - 31/12/12 - 30/06/12 - 30/06/11 - 30/06/10 - 30/06/08- 30/06/03 - 30/06/13
30/06/13 30/06/13 30/06/13 30/06/13 30/06/13 30/06/13 30/06/13 自推介
3个月 6 个月 1 年 2 年 3 年 5 年 10 年 以来
丰隆平衡基金
回酬 (%) 6.29 9.82 11.05 14.07 33.92 48.23 131.42 144.03
基准指标（%） 3.96 3.67 7.88 10.36 24.80 36.73 103.74 91.57
表2: 丰隆平衡基金在2012年6月30日至2013年6月30
日以每单位净资产值对每单位净资产值的表现
（资料来源：Lipper）
2012年6月30日 2013年6月30日 回酬
(%)
每单位净资产值 RM0.5005^ RM0.5372^ 11.05#
基准指标 251.40 271.21 7.88
与基准指标比较(%) - - 3.17
# 回酬是经调整2013年3月29日派发1.75仙收益后而计算
^ 按照大马第139财务报告准则，挂牌金融资产须根据闭市时的买价进
行估值。尽管如此，为了计算单位持有人的应占每单位净资产值以供
作单位发行和赎回用途，挂牌金融资产乃以闭市价格进行估值。因此
，以上所披露的每单位净资产值有别于财务报表中所披露的每单位净
资产值。
表3: 财务焦点
本基金净资产值，以单位持有人的基金呈现如下︰
单位持有人的基金 2013年6月30日 2012年6月30日 变动
(令吉) (令吉) (%)
单位持有人资本 15,764,460 14,085,373 11.92
分派调整 (493,229) (9,286,874) 94.69
保留盈余
-未实现赚利 2,398,006 2,097,463 14.33
-未分派收益 8,744,394 15,565,130 -43.82
11,142,400 17,662,593 -36.92
净资产值 26,413,631 22,461,092 17.60
流通单位 49,342,930 45,007,467 9.63
HONG LEONG BALANCED FUND 15表4: 本基金截至财政年的每单位最高与最低净资产
值、基金总回酬及资本增值与收益分派详情
财政年 财政年从 财政年从 财政年从
30/06/12- 30/06/11- 30/06/10-
30/06/13 30/06/12 30/06/11
每单位最高净资产值(令吉) 0.5476 0.5243 0.5225
每单位最低净资产值(令吉) 0.4992 0.4716 0.4564
资本增值(%) 7.33 -4.21 9.06
收入分派(%) 3.72 6.93 8.34
总回酬(%) 11.05 2.72 17.40
资料来源：Lipper，以令吉为基础，分派后，每单位净资产值对每单
位净资产值，收益分派（若有）将被再投资。
表5: 本基金的平均总回酬
存款、应收款
种植 及其它
大马政府债券
建筑 12.49%
1.81% 30/06/12- 30/06/10-
19.10% 30/06/08-
2.62% 企业债券
30/06/13 30/06/13 30/06/13
15.14%
产业
2.90% 1 年 3 年 5 年
贸易/ 服务
13.81%
平均总回酬 (%) 基建计划
消费产品
11.05 11.31 9.65
2.98%
金融 9.89% 工业产品
集合投资计划
9.06% 3.13%
资料来源：Lipper，以令吉为基础，分派后，每单位净资产值对每单
7.07%
位净资产值，收益分派（若有）将被再投资。
表6: 本基金的年度总回酬
30/06/12- 30/06/11- 30/06/10- 30/06/09- 30/06/08-
财政年 30/06/13 30/06/12 30/06/11 30/06/10 30/06/09
年度总回酬(%) 11.05 2.72 17.40 16.80 -5.23
资料来源：Lipper，以令吉为基础，分派后，每单位净资产值对每单
位净资产值，收益分派（若有）将被再投资。
III. 投资组合
图表2：2012年7月至2013年6月的资产配置
100%
80%
60%
40%
20%
0%
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec -12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
㛑⾘ പᇊ᭦⳺٪ࡨ
䳶ਸᣅ䍴䇑ࡂ
HONG LEONG BALANCED FUND 16图表3：截至2013年6月30日止的资产配置
存款、应收款
种植 及其它
大马政府债券
建筑 1.81% 12.49%
19.10%
2.62% 企业债券
15.14%
产业
2.90% 贸易/ 服务
13.81%
基建计划
2.98% 消费产品
工业产品 金融 9.89%
集合投资计划
3.13% 9.06%
7.07%
在本财政年的上半年，本基金的投资组合变动不大
，只除了微幅调高产业领域。我们对贸易／服务领
域中的特定消费公司进行套利行动，因有关消费股
的估值似已攀达顶峰。
到了下半年，我们在5月5日全国大选来临之前，采
取抗跌防御的立场，即脱售政府相关股项和增持现
金部位。随着政治不明朗消除后，我们购回股项。
至于固定收益，本基金积极降低投资期限，这段剧
烈震荡的期间令我们必须采取抗跌防御立场。本基
金也撤出高评级债券，而投入AA3评级债券，以便汲
取这个领域的高利差和相对价值的利惠。目前，本
基金的投资期限企于5.11年。
截至2013年6月30日止，本基金的首三大持股是马银
行 (3.29%)、 Power Root(3.26%)及 环 城 大 道
(2.98%);而首三大固定收益部位则是大马政府债券-
0%
Pengurusan Air SPV(15.33%)、非上市债券-TNB
Northern Energy(11.35%)及 非 上 市 债 券 Quill
0% Retail Malls(3.79%)。
0%
在本财政年，本基金营运状况并没有太大改变，且
0%
至本经理人报告出炉止，也没有任何重大的环境改
变影响单位持有人的利益。
0%
0% IV.市场回顾
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec -12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
股票市场
㛑⾘ പᇊ᭦⳺٪ࡨ
䳶ਸᣅ䍴䇑ࡂ
受到经济转型计划系列利好消息激励，市场投资情
绪高昂，大马股市以强势步伐展开本财政年的交易
17 HONG L E O N G B A L A N C E D F U N D。全球中央银行激进地减息，加上联邦储备局推出
第三量化宽松政策(QE3)，即无限期的每月买入总值
400亿美元的抵押债务，以抗衡居高不下的失业率，
大幅提高市场对风险资产的投资胃纳。这股货币宽
松的强心剂点燃金融市场的游资乐观期待，进而一
举推高股票价格。
到了2012年第四季，美国财政悬崖担忧，以及亚洲
与美国的大选与领导层交接，不但成为市场焦点，
更驱使投资者于在风险追逐与风险规避的立场中摇
摆不定。尽管面对重大政治逆风，全球股市延续了
上扬动力，主要是大选结果出炉／领导层顺利交接
，令全球金融市场松一口气。由于先进与主要新兴
经济体公布系列利好的经济数据，消除了市场对中
国经济硬着陆的隐忧，也助长投资者对2013年全球
经济稳健复苏的期待，市场情绪进一步升温。
区域股市牛气延入2013年首季；全球成长前景改善
，继续成为强力催化剂，而日本央行采取激进的宽
松政策，以激活该国经济成长，进一步推升市场情
绪。不过，大马股市表现落后区域同侪，主要是全
国大选阴影不散，主导了市场情绪，也令投资者保
持场外旁观。
2013年第二季，大马股市比其它区域股市更为“安
然无恙”。全国大选后的补涨行情，一举推升富时
大马综合指数攀上历来新高纪录，因投资者诠释，
国阵的重新执政意味着政府政策与发展进程将继续
推行，而这是保持经济持续成长与金融市场稳定的
必要因素。
然而，选后激情于财政年杪消褪；在5月和6月间，
高风险资产面对沉重抛压，而新兴市场无一幸免。
随着美国联储局发表可能缩减量化宽松计划的言论
后，市场普遍弥漫着谨慎的情绪，而外国基金则纷
纷撤出新兴市场部位。此外，中国公布的国内生产
总值（2013年首季成长7.7%)和制造业数据出乎意外
的低迷后，再度点燃全球经济复苏放缓的忧虑，令
市场益加悲观。
固定收益市场
在检讨期间，市场主要是由两大主题所引导，即大
马全国大选和联储局有意缩减量化宽松政策。在全
国大选结束前，大马政府债券获得良好扶持，惟后
市欠缺明朗。
HONG LEONG BALANCED FUND 18全国大选后，大马政府债券牛气冲天，因投资者认为
当权者重新执掌政权，对资金市场和经济成长均是利
好因素。然而，随着投资者开始考量美国联储局可能
缩减量化宽松计划后，市场情绪开始转为恶劣。
美国联邦公开市场委员会于6月份会议中证实此事，
导致大马政府债券追随美国国库债券的步伐，全面
陷入剧烈震荡格局。
尽管大马政府债券震荡不靖，私人债券市场则显得
相对具有韧力，因投资者在这段期间仍是净买家。
然而，初级发行却受到冲击，主要是全国大选前面
对不明朗因素，加上5月和6月间涌现的震荡格局，
令投资者和发行者均退场旁观。
无论如何，市场仍有一些优质发行计划受到注目，
当中包括WCT有限公司、杨忠礼机构（YTL Corp）、
国能北方电力（TNB Northern Energy）、峇都加湾
（Batu Kawan）和Etiqa有限公司。
V. 市场展望与策略
股票市场
短期内，联储局缩减量化宽松论调和中国信贷紧张
局势，料拖累市场继续处于动荡格局。近期外资的
流入和高水平的外资持有部位，可能会拖累步伐，
但料不至于出现“灾难日”。鉴于本地机构投资者
握有充沛游资足以扶持股市，大马股市可望因“低
贝他”市场而站稳步履，因而，也比区域股市同侪
更具韧力。
我们依然专注于成长能见度清淅的股项。鉴于固有
股市风险与回酬差幅收窄，政府债券回酬的扬升令
回酬策略不具吸引力。本基金依然看好石油天然气
、建筑、消费领域及特定银行类股。
固定收益市场
一如市场预期，大马隔夜政策利率于2013年上半年
保持3%水平。国家银行最新一次的指引是，在今年
接下来的日子会保持隔夜政策利率的稳定，以便在
先进经济体温和复苏之际扶持国内成长动力。
19 HONG L E O N G B A L A N C E D F U N D在6月份的美国联邦公开市场委员会议息会议后，伯
南克“证实”了投资者的焦虑，即假若美国经济继
续复苏且失业率下跌至7%以下水平，联储局将在今
年开始逐步减少购买资产行动，并于2014年中终止
整个计划。有鉴于此，市场开始在5月和6月间重估
风险资产，并卸下美国国库债券购入部位。
相同的，大马政府债券也面对本地与外资的抛售压
力。然而，卖压在某程度上受到抑制，因本地投资
者也强力扶持。
经过过去两个月的强烈卖压后，本地利率已被视为
“超卖”，使投资者得以更具吸引力的水平重组投
资组合。然而，通货膨胀隐忧可能会让投资者深入
思考， 2014年津贴合理化政策落实的问题。尽管通
货膨胀目前仍低落，但今年来已缓慢升温，由1.3%
走高至最新的1.8%。
至于企业债券，由于新发行有限，预料实质资金仍
将成为净买盘。我们预期，经过淡静的6月后，更多
主要企业债券发行排队出炉，而有关新发行早前是
因债券市场近期剧烈动荡而按兵不动。
随着过去两个月出现重大调整，我们将保持抗跌防
御立场，维持投资期限于中和水平，但也将趁低部
署投资。我们也将精挑细选私人债券，因本地企业
债券比主权债券具有相对韧力。
VI. 股票经纪回扣和非金钱利益
经理人从股票经纪获得非金钱利益产品和服务，例
如研究资料，数据及报价服务，基金投资管理相关
电脑软件和投资相关刊物。这些所取得的非金钱利
益都让基金单位持有人受惠。
此年度报告是从英文版所翻译，如有任何差别，
一切将以英文版为准。
HONG LEONG BALANCED FUND 20Statement of Comprehensive Income
for the financial year ended 30 June 2013
2013 2012
Note RM RM
INVESTMENT INCOME
Interest income 344,088 345,014
Gross dividend and
distribution income 551,681 585,240
Accretion of discount, net of
amortisation of premium/
(Amortisation of premium, net
of accretion of discount) 1,004 (7,714)
Net gain on financial instruments
at fair value through profit
or loss ("FVTPL") 8 2,251,553 88,429
3,148,326 1,010,969
EXPENDITURE
Management fee,
net of rebates 5 (403,781) (340,613)
Trustee's fee 6 (21,802) (18,776)
Auditors' remuneration (6,600) (6,200)
Tax agent's fee (3,750) (2,950)
Brokerage and transaction fee (140,089) (122,422)
Administration expenses (29,695) (36,595)
(605,717) (527,556)
Net income before taxation 2,542,609 483,413
Taxation 7 47,572 (18,100)
Net income after taxation,
representing total
comprehensive income
for the year 2,590,181 465,313
Net income after taxation
is made up of:
Realised income 2,289,638 672,286
Unrealised gain/(loss) 300,543 (206,973)
2,590,181 465,313
The accompanying notes form an integral part of the financial statements.
HONG LEONG BALANCED FUND 21Statement of Financial Position
as at 30 June 2013
30 June 2013 30 June 2012 1 July 2012
Note RM RM RM
ASSETS
Financial assets at FVTPL 8 23,114,380 12,657,303 22,947,338
Deposits with financial institutions 9 4,000,000 9,778,000 2,655,000
Amount due from the Manager, net 10 - - 41,121
Amount due from the
stockbrokers and dealers 11 298,162 - 1,003,445
Interest income receivable 19,337 1,796 111,798
Dividend income receivable 44,147 69,420 28,912
Tax recoverable 30,912 31,670 22,260
Cash at banks 12 30,953 21,820 22,602
TOTAL ASSETS 27,537,891 22,560,009 26,832,476
LIABILITIES
Amount due to the Manager, net 10 112,260 88,115 -
Amount due to the Trustee 1,790 1,474 1,695
Amount due to the
stockbrokers and dealers 11 996,500 - 1,176,507
Distribution payable 3,958 - -
Other payables and accruals 9,752 9,328 9,328
TOTAL LIABILITIES 1,124,260 98,917 1,187,530
EQUITY
Unitholders' capital 13(a) 15,764,460 14,085,373 15,536,585
Distribution equalisation (493,229) (9,286,874) (8,612,341)
Retained earnings 11,142,400 17,662,593 18,720,702
TOTAL EQUITY 13 26,413,631 22,461,092 25,644,946
TOTAL LIABILITIES AND EQUITY 27,537,891 22,560,009 26,832,476
UNITS IN CIRCULATION 13(a) 49,342,930 45,007,467 49,189,594
NET ASSET VALUE ("NAV")
PER UNIT 0.5353 0.4991 0.5213
The accompanying notes form an integral part of the financial statements.
22 HONG L E O N G B A L A N C E D F U N DStatement of Changes in Net Asset Value
for the financial year ended 30 June 2013
Unitholders’ Distribution Retained Total
capital equalisation earnings equity
Note RM RM RM RM
As at 1 July 2011 15,536,585 (8,612,341) 18,720,702 25,644,946
Net income after taxation,
representing total
comprehensive income
for the year - - 465,313 465,313
Cash distribution for the year 14 - - (1,523,422) (1,523,422)
Creation of units 2,056,316 - - 2,056,316
Cancellation of units (4,182,061) - - (4,182,061)
Distribution equalisation 674,533 (674,533) - -
As at 30 June 2012 14,085,373 (9,286,874) 17,662,593 22,461,092
As at 1 July 2012 14,085,373 (9,286,874) 17,662,593 22,461,092
Net income after taxation,
representing total
comprehensive income
for the year - - 2,590,181 2,590,181
Cash distribution for the year 14 - 8,304,967 (9,110,374) (805,407)
Creation of units 9,190,449 - - 9,190,449
Cancellation of units (7,022,684) - - (7,022,684)
Distribution equalisation (488,678) 488,678 - -
As at 30 June 2013 15,764,460 (493,229) 11,142,400 26,413,631
The accompanying notes form an integral part of the financial statements.
HONG LEONG BALANCED FUND 23Statement of Cash Flows
for the financial year ended 30 June 2013
2013 2012
Note RM RM
CASH FLOWS FROM OPERATING
AND INVESTING ACTIVITIES
Proceeds from sale of financial assets
at FVTPL 31,880,800 32,387,396
Proceeds from maturity of financial
assets at FVTPL 6,000,000 2,250,000
Purchase of financial assets at FVTPL (45,527,071) (24,562,130)
Interest income received 326,547 455,016
Dividend and distributions
income received 550,417 517,222
Management fee paid,
net of rebates received (397,975) (344,312)
Trustee’s fee paid (21,486) (18,997)
Other expenses paid (38,937) (45,745)
Cash (used in)/generated from
operating and investing activities (7,227,705) 10,638,450
Tax refund 74,867 -
Net cash (used in)/generated from
operating and investing activities (7,152,838) 10,638,450
CASH FLOWS FROM
FINANCING ACTIVITIES
Receipts from creation of units 9,190,391 2,165,153
Payments for cancellation of units (7,004,971) (4,157,963)
Cash distributions paid (801,449) (1,523,422)
Net cash generated from/(used in)
financing activities 1,383,971 (3,516,232)
NET (DECREASE)/INCREASE IN
CASH AND CASH EQUIVALENTS (5,768,867) 7,122,218
CASH AND CASH EQUIVALENTS AT
BEGINNING OF FINANCIAL YEAR 9,799,820 2,677,602
CASH AND CASH EQUIVALENTS
AT END OF FINANCIAL YEAR 4,030,953 9,799,820
Cash and cash equivalents comprise:
Cash at banks 12 30,953 21,820
Deposits with financial institutions 9 4,000,000 9,778,000
4,030,953 9,799,820
The accompanying notes form an integral part of the financial statements.
24 HONG L E O N G B A L A N C E D F U N DNotes to the Financial Statements
30 June 2013
1. THE FUND, THE MANAGER AND THEIR PRINCIPAL
ACTIVITIES
Hong Leong Balanced Fund (hereinafter referred to as
"the Fund") was constituted pursuant to the execution
of a Deed dated 18 March 2002 and the
Supplemental Deeds dated 6 August 2002 and 30
April 2010 ("the Deed" collectively) between the
Manager, Hong Leong Asset Management Bhd., the
Trustee, Universal Trustee (Malaysia) Berhad and the
registered unitholders of the Fund.
The Fund's primary objective is to achieve regular
income and consistent capital growth over the
Medium-To-Long Term by investing into a diversified
investment portfolio containing a balanced mixture
of equities and fixed income securities.
The Fund will invest in equity securities of companies
operating in Malaysia. Generally, companies that
have low shareholders' risk, strong balance sheets
with strong operating cash flows and sustainable
earnings, and low relative valuations represented by
reasonable price earnings ratio (PER) or price-to-book
ratios (P/B) are selected. Low shareholders' risk refers
to shareholders or management with good business
acumen, strong business performance track record
and good corporate governance. The Fund
commenced operations on 29 April 2002 and will
continue its operations until terminated as provided
under Part 13.1 of the Deed.
The Manager of the Fund is Hong Leong Asset
Management Bhd., a company incorporated in
Malaysia. The principal activity of the Manager is the
management of unit trust funds and private
investment mandates. Its holding company is Hong
Leong Capital Berhad, a company incorporated in
Malaysia and listed on the Main Market of Bursa
Malaysia Securities Berhad.
HONG LEONG BALANCED FUND 252. BASIS OF PREPARATION
The financial statements of the Fund have been
prepared under the historical cost convention, unless
otherwise stated in the accounting policies.
2.1 Statement of Compliance
The financial statements of the Fund have been
prepared in accordance with Malaysian Financial
Reporting Standards ("MFRSs") and
International Financial Reporting Standards.
These are the Fund's first annual financial
statements prepared in accordance with MFRSs
and MFRS 1 First-Time Adoption of Malaysian
Financial Reporting Standards ("MFRS 1") has
been applied.
In previous financial years, the financial
statements of the Fund were prepared in
accordance with Financial Reporting Standards
("FRS") and the Securities Commission
Malaysia's Guidelines on Unit Trust Funds in
Malaysia. There have been no significant
financial impact arising from the transition to
MFRSs.
2.2 Functional and Presentation Currency
The financial statements are presented in Ringgit
Malaysia ("RM"), which is the Fund's functional
currency, except otherwise indicated.
3. SUMMARY OF ACCOUNTING POLICIES
3.1 Significant Accounting Policies
The accounting policies set out below have been
applied consistently to the financial years
presented in these financial statements and in
preparing the opening MFRSs statement of
financial position of the Fund as at 1 July 2011
(the transition date to MFRSs Framework),
unless otherwise stated.
26 HONG L E O N G B A L A N C E D F U N D3.2 Summary of Significant Accounting Policies
(a) Financial Assets
Financial assets 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.
When financial assets are recognised initially,
they are measured at fair value, plus, in the case
of financial assets not at FVTPL, directly
attributable transaction costs.
The Fund determines the classification of its
financial assets at initial recognition, and the
categories include financial assets at FVTPL and
loans and receivables.
(i) Financial Assets at FVTPL
Financial assets are classified as financial
assets at FVTPL if they are held for trading
or are designated as such upon initial
recognition. Financial assets held for trading
include equity securities, derivatives,
collective investment schemes, fixed income
securities and negotiable instrument of
deposits.
Subsequent to initial recognition, financial
assets at FVTPL are measured at fair value.
Changes in the fair value of the financial
instruments are recorded in 'Net gain or loss
on financial instruments at FVTPL' in the
statement of comprehensive income.
Interest earned, gross dividend and
distribution income and amortisation of
premium/accretion of discount are recorded
separately in 'Interest income', 'Gross
dividend and distribution income' and
'Amortisation of premiums, net of accretion
HONG LEONG BALANCED FUND 27of discount'. The exchange differences on
financial assets at FVTPL are not recognised
separately in the statement of
comprehensive income but are included in
net gain or net loss on changes in fair value
of financial instruments at FVTPL.
The fair value of quoted equity securities,
quoted derivatives and quoted collective
investment schemes are determined by
reference to closing bid prices quoted on
Bursa Malaysia Securities Berhad at the last
business day of the financial year.
The fair value of unquoted collective
investment scheme is valued at last
published net asset value as at the last
business day of the financial year.
The fair value of unquoted fixed income
securities is valued by reference to indicative
prices published by Bond Pricing Agency
Malaysia on a daily basis.
The fair value of negotiable instrument of
deposits is marked-to-market with rates
obtained from its issuer on a daily basis. The
discount recognised in the statement of
comprehensive income is accreted based on
the effective yield basis over the remaining
terms of maturity from the date of
acquisition.
(ii) Loans and receivables
Financial assets with fixed or determinable
payments that are not quoted in an active
market are classified as loans and
receivables. The Fund includes deposits with
28 HONG L E O N G B A L A N C E D F U N Dfinancial institutions, cash at banks and
short term receivables in this classification.
Subsequent to initial recognition, loans and
receivables are measured at amortised cost
using the effective interest method. Gains
and losses are recognised in the statement
of comprehensive income when the loans
and receivables are derecognised or
impaired, and through the amortisation
process. The Fund does not have any loans
and receivables as at reporting date.
(b) Impairment of Financial Assets
The Fund assesses at each reporting date
whether there is any objective evidence that a
financial asset classified as loans and receivables
is impaired.
To determine whether there is objective evidence
that an impairment loss on financial assets has
been incurred, the Fund considers factors such as
the probability of insolvency or significant
financial difficulties of the debtor and default or
significant delay in payments.
If any such evidence exists, the amount of
impairment loss is measured as the difference
between the asset’s carrying amount and the
present value of estimated future cash flows
discounted at the financial asset’s original
effective interest rate. The impairment loss is
recognised in the statement of comprehensive
income.
The carrying amount of the financial asset is
reduced by the impairment loss directly for all
financial assets with the exception of trade
HONG LEONG BALANCED FUND 29receivables, where the carrying amount is
reduced through the use of an allowance
account. When a trade receivable becomes
uncollectible, it is written off against the
allowance account.
If in a subsequent year, the amount of the
impairment loss decreases and the decrease can
be related objectively to an event occurring after
the impairment was recognised, the previously
recognised impairment loss is reversed to the
extent that the carrying amount of the asset
does not exceed its amortised cost at the reversal
date. The amount of reversal is recognised in the
statement of comprehensive income.
(c) 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 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 other financial liabilities which
include trade and other payables are recognised
initially at fair value plus directly attributable
transaction costs 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 the statement
30 HONG L E O N G B A L A N C E D F U N Dof comprehensive income when the liabilities are
derecognised, and through the amortisation
process.
(d) Income Recognition
Income is recognised to the extent that it is
probable that the economic benefits will flow to
the Fund and the income can be reliably
measured. Income is measured at the fair value
of consideration received or receivable.
Interest income, amortisation of premium and
accretion of discount are recognised using the
effective interest method.
Dividend income from quoted equity securities
and distribution income from quoted and
unquoted collective investment schemes are
recognised when the Fund's right to receive
payment is established.
(e) Classification of Realised and Unrealised Gains
and Losses
Unrealised gains and losses comprise changes in
the fair value of financial instruments for the
year and from reversal of prior financial year’s
unrealised gains and losses for financial
instruments which were realised (i.e. sold,
redeemed or matured) during the financial year.
Realised gains and losses on disposal of financial
instruments classified as part of 'at FVTPL' are
calculated using the weighted average method.
They represent the difference between an
instrument's carrying amount based on the
weighted average method and the disposal
amount of investments or cash payments.
HONG LEONG BALANCED FUND 31(f) Income Tax
Current tax assets and liabilities are measured at
the amount expected to be recovered from or
paid to the tax authorities. The tax rates and tax
laws used to compute the amount are those that
are enacted or substantively enacted by the
reporting date.
Current taxes are recognised in the statement of
comprehensive income. No deferred tax is
recognised as there are no material temporary
differences.
(g) Cash and Cash Equivalents
Cash and cash equivalents represent cash at
banks and deposits with financial institutions
which are readily convertible to cash on hand
with insignificant risk of changes in value.
(h) Unitholders’ Capital
The unitholders' capital of the Fund meets the
definition of puttable instruments classified as
the Fund's own equity instruments under MFRS
132. Distributions to unitholders are recorded in
equity when declared.
Distribution equalisation represents the average
distributable amount included in the creation
and cancellation prices of units. This amount is
either refunded to unitholders by way of
distribution and/or adjusted accordingly when
units are cancelled.
3.3 Transition to MFRSs and application of MFRS 1
These are the Fund's first annual financial
statements prepared in accordance with MFRSs.
In previous financial years, the financial
statements of the Fund were prepared in
accordance with FRS in Malaysia and the
32 HONG L E O N G B A L A N C E D F U N DSecurities Commission Malaysia's Guidelines on
Unit Trust Funds in Malaysia. The transition from
FRS to MFRSs has not had a material impact on
the Fund's financial position, financial
performance and cash flows.
3.4 Standards issued but not yet effective
The Fund has not adopted the following MFRSs,
Amendments to MFRSs and Issues Committee
("IC") Interpretations that have been issued but
are not yet effective:
(a) Effective for the financial years beginning
on or after 1 July 2013
MFRS 10 Consolidated Financial Statements
MFRS 11 Joint Arrangements
MFRS 12 Disclosure of Interest in Other Entities
MFRS 13 Fair Value Measurement
MFRS 119 Employee Benefits (Revised)
MFRS 127 Consolidated and Separate
Financial Statements (Revised)
MFRS 128 Investments in Associates (Revised)
Amendments to MFRS 7 Financial
Instruments:Disclosures - Offsetting
Financial Assets and Financial Liabilities
Amendments to MFRS 1 First-Time Adoption
of Malaysian Financial Reporting Standards
- Government Loans
Amendments to MFRS 1 First-Time Adoption
of Malaysian Financial Reporting Standards
(Annual Improvements 2009-2011 Cycle)
Amendments to MFRS 101 Presentation of
Financial Statements (Annual Improvement
2009-2011 Cycle)
Amendments to MFRS 116 Property, Plant
and Equipment (Annual Improvements
2009-2011 Cycle)
HONG LEONG BALANCED FUND 33Amendments to MFRS 132 Financial
Instruments: Presentation (Annual
Improvement 2009-2011 Cycle)
Amendments to MFRS 134 Interim Financial
Reporting (Annual Improvements
2009-2011 Cycle)
Amendments to MFRS 10 Consolidated
Financial Statements: Transition Guidance
Amendments to MFRS 11 Joint
Arrangements: Transition Guidance
Amendments to MFRS 12 Disclosure of
Interest in Other Entities: Transition Guidance
(b) Effective for the financial years beginning
on or after 1 July 2014
Amendment to MFRS 132 Financial
Instruments: Presentation - Offsetting
Financial Assets and Financial Liabilities
(c) Effective for the financial years beginning
on or after 1 July 2015
MFRS 9 Financial Instruments
Amendments to MFRS 7 Financial
Instruments: Disclosures - Mandatory Date
of MFRS 9 and Transition Disclosures
The Fund plans to adopt the above
pronouncements when they become effective in
the respective financial years. These
pronouncements are expected to have no
significant impact to the financial statements of
the Fund upon their initial application except as
described below:
(a) MFRS 9 Financial Instruments
MFRS 9, as issued, reflects the first phase of
the International Accounting Standards
Board's ("IASB") work on the replacement of
34 HONG L E O N G B A L A N C E D F U N DMFRS 139 Financial Instruments:
Recognition and Measurement ("MFRS
139") and applies to classification and
measurement of financial assets and
financial liabilities as defined in MFRS 139
and replaces the guidance in MFRS 139.
(b) MFRS 13 Fair Value Measurement
MFRS 13 establishes a single source of
guidance under MFRSs for all fair value
measurements. MFRS 13 does not change
when an entity is required to use fair value
but rather provides guidance on how to
measure fair value under MFRSs when fair
value is required or permitted. The Manager
is currently assessing the impact that MFRS
13 will have on the financial position and
performance of the Fund but based on
preliminary analyses, no material impact is
expected.
4. SIGNIFICANT ACCOUNTING ESTIMATES AND
JUDGEMENTS
The preparation of the financial statements requires
the use of certain accounting judgements, estimates
and assumptions that are continually evaluated and
based on the past experience, reasonable
expectations of future events and other factors.
Uncertainty about these assumptions and estimates
could result in outcomes that could require material
adjustment to the carrying amount of the assets or
liabilities affected in future.
No major estimations have been made by the
Manager in applying the Fund's accounting policies.
There are no key assumptions concerning the future
and other key sources of estimation uncertainty at the
HONG LEONG BALANCED FUND 35reporting date that have a significant risk of causing a
material adjustment to the carrying amounts of the
financial assets and financial liabilities within the next
financial year.
5. MANAGEMENT FEE, NET OF REBATES
2013 2012
RM RM
Management fee 408,787 352,050
Rebates of management fee (5,006) (11,437)
Net management fee 403,781 340,613
The management fee is 1.50% per annum calculated
on the net asset value of the Fund on a daily basis as
allowed under Part 14.1 of the Deed.
Rebates of management fee relate to the rebates
received from the Manager for investing in Hong
Leong Islamic Institutional Income Management
Fund and Hong Leong Islamic Institutional Income
Management Fund II (2012: Hong Leong Institutional
Bond Fund). The rebates are 0.30% (2012: 0.50%)
per annum calculated on the net asset value of Hong
Leong Islamic Institutional Income Management
Fund and Hong Leong Islamic Institutional Income
Management Fund II (2012: Hong Leong Institutional
Bond Fund) on a daily basis.
6. TRUSTEE’S FEE
The Trustee’s fee is 0.08% per annum calculated on
the net asset value of the Fund on a daily basis,
subject to a minimum fee of RM18,000 per annum as
allowed under Part 14.2 of the Deed.
36 HONG L E O N G B A L A N C E D F U N D7. TAXATION
2013 2012
RM RM
Malaysian corporate tax 11,199 14,618
Withholding tax of 10% for
real estate investment trust scheme 4,519 3,482
Over provision of tax in prior years (63,290) -
(47,572) 18,100
Domestic income tax is calculated at the Malaysian
statutory tax rate of 25% of the estimated assessable
profit for the financial year.
The taxation charged for the financial year is on
taxable dividend and distribution income after
deducting tax allowable expenses.
A reconciliation of income tax expense applicable to
net income before taxation at the Malaysian
statutory income tax rate to income tax expense at
the effective income tax rate of the Fund is as follows:
2013 2012
RM RM
Net income before taxation 2,542,609 483,413
Taxation at Malaysian statutory rate of 25% 635,652 120,853
Different tax rates for distribution income
from real estate investment trust (6,779) (5,224)
Income not subject to tax (753,765) (273,681)
Net loss not deductible for tax purposes - 53,672
Expenses not deductible for tax purposes 43,239 37,797
Restriction on tax deductible expenses
for unit trust fund 97,371 84,683
Over provision of tax in prior years (63,290) -
Tax expense for the financial year (47,572) 18,100
HONG LEONG BALANCED FUND 378. FINANCIAL ASSETS AT FVTPL
30 June 2013 30 June 2012 1 July 2011
RM RM RM
Financial assets held for trading:
Quoted equity securities 12,204,494 11,681,738 14,465,505
Quoted derivatives - 18,496 9,608
Quoted collective
investment schemes 1,363,549 957,069 490,000
Unquoted collective
investment scheme 503,261 - -
Unquoted fixed
income securities 9,043,076 - 4,944,125
Negotiable instrument
of deposits - - 3,038,100
23,114,380 12,657,303 22,947,338
2013 2012
RM RM
Net gain on financial instruments
at FVTPL comprised:
Realised gain on disposals 1,951,010 295,402
Unrealised changes in fair values
of investments 300,543 (206,973)
2,251,553 88,429
Financial assets held for trading as at 30 June 2013 are
as detailed below:
Percentage
of fair value
over net
Number of Aggregate Fair asset value
shares held cost value of the Fund
units RM RM %
Quoted Equity
Securities
Main Market
Construction
Gamuda Berhad 75,000 334,200 351,000 1.33
IJM Corporation Berhad 60,800 299,286 341,088 1.29
135,800 633,486 692,088 2.62
38 HONG L E O N G B A L A N C E D F U N DPercentage
of fair value
over net
Number of Aggregate Fair asset value
shares held cost value of the Fund
units RM RM %
Consumer Products
Padini Holdings Berhad 250,000 561,980 472,500 1.79
Panasonic Manufacturing
Malaysia Berhad 30,000 335,057 753,600 2.85
Power Root Berhad 400,000 422,760 860,000 3.26
Tan Chong Motor
Holdings Berhad 80,000 418,552 524,800 1.99
760,000 1,738,349 2,610,900 9.89
Finance
CIMB Group
Holdings Berhad 62,000 514,833 512,740 1.94
Malayan Banking Berhad 83,769 761,897 867,847 3.29
Public Bank Berhad 40,062 225,446 678,650 2.57
Tune Ins Holdings Berhad 180,000 248,400 333,000 1.26
365,831 1,750,576 2,392,237 9.06
Industrial Products
Kian Joo Can
Factory Berhad 150,000 419,235 420,000 1.59
Lafarge Malayan
Cement Berhad 40,000 439,548 407,200 1.54
190,000 858,783 827,200 3.13
Infrastructure Project
Company
Lingkaran Trans Kota
Holdings Berhad 180,000 563,208 788,400 2.98
Plantation
TSH Resources Berhad 200,000 508,557 478,000 1.81
Properties
Glomac Berhad 330,000 429,000 396,000 1.50
UEM Sunrise Berhad 120,000 334,164 370,800 1.40
450,000 763,164 766,800 2.90
Trading/Services
Air Asia Berhad 160,000 497,612 504,000 1.91
Berjaya Food Berhad 315,700 330,088 527,219 2.00
Bintulu Port
Holdings Berhad 80,000 393,076 574,400 2.17
KPJ Healthcare Berhad 75,000 439,500 488,250 1.85
Masterskill Education
Group Berhad 300,000 367,506 144,000 0.54
HONG LEONG BALANCED FUND 39Percentage
of fair value
over net
Number of Aggregate Fair asset value
shares held cost value of the Fund
units RM RM %
Petra Perdana Berhad 250,000 464,550 472,500 1.79
SapuraKencana
Petroleum Berhad 130,000 434,400 526,500 1.99
Tenaga Nasional
Berhad 50,000 414,665 412,000 1.56
1,360,700 3,341,397 3,648,869 13.81
TOTAL QUOTED
EQUITY SECURITIES 10,157,520 12,204,494 46.20
Percentage
of fair value
over net
Number of Aggregate Fair asset value
units held cost value of the Fund
units RM RM %
Quoted Collective
Investment Schemes
Main Market
Axis Real Estate
Investment Trust 137,449 272,990 501,689 1.90
IGB Real Estate
Investment Trust 280,000 389,200 369,600 1.40
Pavillion Real Estate
Investment Trust 326,000 322,027 492,260 1.86
743,449 984,217 1,363,549 5.16
TOTAL QUOTED
COLLECTIVE
INVESTMENT SCHEMES 984,217 1,363,549 5.16
40 HONG L E O N G B A L A N C E D F U N DUnquoted Collective Investment Scheme
Percentage
of fair value
over net
Number of Aggregate Fair asset value
units held cost value of the Fund
units RM RM %
Hong Leong Islamic
Institutional Income
Management Fund II 503,211 503,362 503,261 1.91
TOTAL UNQUOTED
COLLECTIVE
INVESTMENT SCHEME 503,362 503,261 1.91
Unquoted fixed income securities
Percentage
of fair value
over net
Nominal Adjusted Fair asset value
value cost value of the Fund
RM RM %
Private Debt Securities
3.90% QRMSB MTN
1369D (Series A2)
(AAA) 31/03/2017 1,000,000 996,500 1,000,000 3.79
4.385% TNB NE
(AAA) 29/11/2029 3,000,000 3,000,000 2,998,200 11.35
4,000,000 3,996,500 3,998,200 15.14
Securities Issued/ Guaranted
by Government of Malaysia
4.04% PASB IMTN Issue
No. 10 (GG) 16/06/2018 4,000,000 4,081,049 4,050,000 15.33
3.58% Profit-Based GII
(GG) 15/05/2020 1,000,000 993,726 994,876 3.77
5,000,000 5,074,775 5,044,876 19.10
TOTAL UNQUOTED
FIXED INCOME SECURITIES 9,071,275 9,043,076 34.24
TOTAL FINANCIAL
ASSETS AT FVTPL 20,716,374 23,114,380 87.51
EXCESS OF FAIR VALUE
OVER COST 2,398,006
HONG LEONG BALANCED FUND 41Effective yield of the unquoted fixed income securities
as at 30 June 2013 was 3.98% per annum.
The Fund uses the following hierarchy for determining
and disclosing the fair value of financial instruments by
valuation techniques.
Level 1: quoted prices (unadjusted) in active markets
for identical assets or liabilities;
Level 2: inputs other than quoted prices included
within Level 1 that are observable for the
assets or liabilities, either directly (i.e. as
price) or indirectly (i.e. derived from prices);
Level 3: inputs for the asset or liability that are not
based on observable market data
(unobservable inputs).
As at 30 June 2013, the fair value of the Fund's
investments are determined based on level 1
hierarchy as described above.
9. DEPOSITS WITH FINANCIAL INSTITUTIONS
30 June 30 June 1 July
2013 2012 2011
RM RM RM
Licensed banks related to the Manager 1,000,000 778,000 2,655,000
Other licensed banks 3,000,000 9,000,000 -
4,000,000 9,778,000 2,655,000
42 HONG L E O N G B A L A N C E D F U N D10. AMOUNT DUE TO/FROM THE MANAGER, NET
30 June 30 June 1 July
2013 2012 2011
RM RM RM
Due to/(from) Manager:
- payable for units cancelled 77,742 60,029 35,931
- receivable for units created (58) - (108,837)
- management fee and expenses 34,700 28,086 31,785
- rebates receivable (124) - -
112,260 88,115 (41,121)
Management fee is payable monthly and the credit
period for the amount payable/(receivable) for units
cancelled/(created) is three (3) business days from the
transaction date.
Rebates receivable is calculated in accordance with the
basis as disclosed in Note 5, and is receivable from the
Manager within seven (7) business days.
11. AMOUNT DUE FROM/TO THE STOCKBROKERS
AND DEALERS
These amounts relate to sale/purchase of quoted
equity securities and unquoted fixed income securities
by the Fund which were receivable/payable within
three (3) market days from the date of sale/purchase.
12. CASH AT BANKS
30 June 30 June 1 July
2013 2012 2011
RM RM RM
Licensed banks related to the Manager 26,161 20,956 21,698
Other licensed banks 4,792 864 904
30,953 21,820 22,602
HONG LEONG BALANCED FUND 4313. TOTAL EQUITY
30 June 2013 30 June 2012 1 July 2011
Note RM RM RM
Unitholders' capital 13(a) 15,764,460 14,085,373 15,536,585
Distribution equalisation (493,229) (9,286,874) (8,612,341)
Retained earnings
- Unrealised gain 2,398,006 2,097,463 2,304,436
- Undistributed income 8,744,394 15,565,130 16,416,266
11,142,400 17,662,593 18,720,702
Total equity 26,413,631 22,461,092 25,644,946
44 HONG L E O N G B A L A N C E D F U N D(a) Unitholders' capital
30 June 2013 30 June 2012 1 July 2011
Units RM Units RM Units RM
In circulation
At beginning of the financial year 45,007,467 14,085,373 49,189,594 15,536,585 52,712,714 16,835,889
Creation of units 17,900,037 9,190,449 4,194,745 2,056,316 7,081,545 3,417,971
Cancellation of units (13,564,574) (7,022,684) (8,376,872) (4,182,061) (10,604,665) (5,232,997)
Distribution equalisation (488,678) - 674,533 - 515,722
At end of the financial year 49,342,930 15,764,460 45,007,467 14,085,373 49,189,594 15,536,585
HONG LEONG BALANCED FUND
4514. SOURCES OF DISTRIBUTIONS
Cash distributions for the financial year ended 30 June
2013 declared on 29 March 2013 (2012: 31 January
2012) were derived from the following:
2013 2012
RM RM
Previous years' net realised (loss)/income 7,903,304 1,523,422
Net gain on financial instruments at FVTPL 1,584,456 -
9,487,760 1,523,422
Less: Distribution equalisation (8,304,967) -
Less: Expenses (377,386) -
Net cash distributions 805,407 1,523,422
Gross distribution per unit (sen) 1.7500 3.5000
Net distribution per unit (sen) 1.5412 3.3222
The above distribution has been proposed before taking
into account the unrealised gain for the year of
RM300,543 (2012 unrealised loss of RM206,973)
which is carried forward to the next financial year.
15. UNITS HELD BY THE MANAGER AND RELATED
PARTIES
The related parties and thier relationships with the Fund
are as follows:
Related parties Relationship
Hong Leong Asset The Manager
Management Bhd.
Hong Leong Capital Berhad Holding company of the Manager
Hong Leong Financial Ultimate holding company
Group Berhad ("HLFG") of the Manager
Subsidiaries and associates Subsidiaries and associate
of HLFG as disclosed in its companies of the ultimate
financial statements holding company of the Manager
30 June 2013 30 June 2012 1 July 2011
Units RM Units RM Units RM
Manager 5,000 2,677 5,000 2,496 5,000 2,607
46 HONG L E O N G B A L A N C E D F U N DYou can also read
