Hong Leong Global Bond Fund 2012/2013
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Hong Leong Global Bond Fund
Annual Report 2012/2013
28 February 2013 Audited
Hong Leong Asset Management Bhd (318717-M)
Level 8, Menara HLA, No. 3, Jalan Kia Peng, 50450 Kuala LumpurHong Leong Global Bond Fund
Audited Annual Report and Financial
Statements for the Financial Year Ended 28
February 2013
Contents
Pages
Manager’s Review and Report 1-13
经 理 人 回 顾 与 报 告 14-25
Statement Of Comprehensive Income 26
Statement Of Financial Position 27
Statement Of Changes In Net Asset Value 28
Statement Of Cash Flows 29
Notes to the Financial Statements 30-68
Trustee’s Report 69
Statement by the Manager 70
Statutory Declaration 71
Independent Auditors’ Report 72-73
Performance Data 74-75
Corporate Information / 企 业 资 讯 76
Corporate Directory / 地 址 手 册 77
H o n g L e o n g Gl o b a l B o n d F u n d 1Manager’s Review and Report
I. Fund information
Fund Name
Hong Leong Global Bond Fund
Fund Category
Fixed Income
Fund Type
Income
Investment Objective
The Fund seeks to provide regular income* and to maximise total
investment return whilst at the same time aims to offer stability
of capital** with minimum risk.
Performance Benchmark
The Fund will invest into a portfolio containing a mixture of fixed
income securities and options. The performance of the total
return swap transaction/structured product/option is linked to
global fixed income investments. Thus, the Manager views that
the JP Morgan Global GBI is an appropriate benchmark for the
Fund. Information on the JP Morgan Global GBI can be obtained
from www.lipperweb.com and is available on a subscription basis.
Distribution Policy
The Fund intends to provide regular income* on a half-yearly basis
as well as Long-Term*** capital growth. As such, income returns
will be declared on a best effort basis, depending on interest rates,
market conditions and the performance of the Fund.
Swap Counterparty
J.P. Morgan Chase Bank Berhad
Notes:
* Income may be distributed in the form of cash and/or units.
** Please take note that this Fund is not a capital guaranteed fund or a
capital protect fund and the returns are not guaranteed.
*** Long-Term refers to a period of above 5 years.
H o n g L e o n g Gl o b a l B o n d F u n d 1Breakdown Of Unitholdings By Size
Size of Holdings No. of Accounts No. Units Held
5,000 and below 30 73,795.61
5,001 to 10,000 16 124,144.28
10,001 to 50,000 40 928,658.03
50,001 to 500,000 15 2,135,153.09
500,001 and above 4 49,588,991.94
II. Fund Performance
Chart 1 : C o m p a r i s o n b e t w e e n t h e F u n d ’ s
performance during the financial year and
the performance of the benchmark disclosed
in the prospectus on since launch basis
50.00
40.00
30.00
20.00
10.00
0.00
-10.00
-20.00
18/4/2008
31/12/2008
31/12/2009
31/12/2010
31/12/2011
31/12/2012
28/2/2013
From 18/04/2008 To 28/02/2013
Hong Leong JP Morgan Global
Glabal Bond Fund GBI 18.90
(HLGBF) 40.82
Source: Lipper, Based on Malaysian Ringgit, 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 H on g L e on g Glo b al Bond F u ndPerformance Review
This Annual Report covers the twelve-month financial year from
1 March 2012 to 28 February 2013.
Over the past one year, the Fund garnered a total return of 9.03%
while its benchmark, the JP Morgan Global GBI index gained
1.66% for the same period under review.
On since launch basis, the Fund was up 40.82% while its
benchmark returned 18.90% for the same period. To date, the
Fund has distributed a total net income distribution of 9 sen per
unit. The reason for conducting the income distribution was to
distribute regular income to Unitholders. Unitholders should
note that income distribution does not affect the value of their
investment and is not in any way to forecast the future or likely
performance of the Fund.
As such, the Manager concluded that the Fund has met its
objective of providing income distribution and maximizing total
investment return while maintaining stability of the invested
capital throughout the period.
Table 1 : Total Return of the Fund for the following periods
as at 28 February 2013 (Source: Lipper)
30/11/12 - 31/08/12 - 29/02/12 - 28/02/11 - 28/02/10 - 18/04/08 -
28/02/13 28/02/13 28/02/13 28/02/13 28/02/13 28/02/13
3 Months 6 Months 1 Year 2 Years 3 Years Since Launch
HLGBF (%) 2.99 8.66 9.03 15.19 24.60 40.82
Benchmark (%) -1.95 -4.40 1.66 6.93 1.44 18.90
H o n g L e o n g Gl o b a l B o n d F u n d 3Table 2: Performance of HLGBF on NAV Per Unit-to-NAV
Per Unit basis for the period 29 February 2012
to 28 February 2013 (Source : Lipper)
29-Feb-12 28-Feb-13 Returns
(%)
NAV Per Unit RM0.5524 RM0.6023 9.03
Benchmark 520.13 512.51 1.66
Vs Benchmark (%) - - 7.37
Table 3 : Financial Highlights
The Net Asset Value attributable to Unitholders is represented by:
Unitholders’ Fund 28-Feb-2013 29-Feb-2012 Change
(RM) (RM) (%)
Unitholders’ Capital 24,823,821 38,194,866 -35.01
Distribution Equalisation 560,866 2,206,991 -74.59
Retained Earnings
- Unrealised Gain 229,634 5,150,462 -95.54
- Undistributed Income/(Loss) 6,222,484 (1,488,393) 518.07
6,452,118 3,662,069 76.19
Net Asset Value 31,836,805 44,063,926 -27.75
Units in Circulation 52,855,743 79,770,529 -33.74
4 H on g L e on g Glo b al Bond F u ndTable 4: The Highest & 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
29/02/12- 28/02/11- 28/02/10 -
28/02/13 29/02/12 28/02/11
Highest NAV Per Unit (RM) 0.6040 0.5995 0.5991
Lowest NAV Per Unit (RM) 0.5071 0.5069 0.5122
Capital Growth (%) 9.03 -4.00 1.82
Income Distribution (%) - 9.65 6.34
Total Return (%) 9.03 5.65 8.16
Source: Lipper, Based on Malaysian Ringgit, ex-distribution, NAV Per Unit-
to-NAV Per Unit basis with income distributions reinvested, if any.
Table 5: Average Total Return of the Fund
29/02/12 - 28/02/10 -
28/02/13 28/02/13
1 Year 3 Years
Average Total Return (%) 9.03 8.20
Source: Lipper, Based on Malaysian Ringgit, ex-distribution, NAV Per Unit-
to-NAV Per Unit basis with income distributions reinvested, if any.
Table 6: Annual Total Return of the Fund
29/02/12- 28/02/11- 28/02/10- 28/02/09- 18/04/08-
28/02/13 29/02/12 28/02/11 28/02/10 28/02/09
Annual
Total
Return (%) 9.03 5.65 8.16 25.05 -9.62
Source: Lipper, Based on Malaysian Ringgit, ex-distribution, NAV Per Unit-
to-NAV Per Unit basis with income distributions reinvested, if any.
H o n g L e o n g Gl o b a l B o n d F u n d 5III. INVESTMENT PORTFOLIO
Chart 2: Asset Allocation from March 2012 to
February 2013
Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
12 12 12 12 12 12 12 12 12 12 13 13
Fixed Income Securities Templeton Global Bond Swap
Collective Investment Schemes
Chart 3: Sector Allocation of HLGBF as at 28 February
2013
Templeton
Global Bond
Deposits, Receivables Swap
and others 9.62%
27.61%
Corporate Bonds
22.21%
Collective Investment
Schemes
9.42%
Corporate Bonds-
Malaysia Govertment Foreign
Securities 15.50%
15.64%
6 H on g L e on g Glo b al Bond F u ndChart 4: Asset Allocation Of The Underlying Fund
Templeton Global Bond Fund as at 28
February 2013
Deposits, Receivables
Derivatives and others
-0.80% 15.21%
Municipal
0.13%
Supranational
1.44%
Sovereign Bonds
11.07%
International
Government
Agency Bonds
72.95%
Chart 5: Geographical Allocation Of The Underlying
Fund Templeton Global Bond Fund as at 28
February 2013
Deposits, Receivables
and others
United States (U.S)
15.21%
1.33%
Supranational
1.44% Non-Japan Asia
32.44%
European
Monetary Union
(EMU)
8.59%
Non-U.S. America
9.08%
Non-EMU
Europe/Africa
31.91%
H o n g L e o n g Gl o b a l B o n d F u n d 7On the local fixed income front, the Fund continues to pursue
an active participation in the markets, in line with our dynamic
portfolio strategy to maximize gains while helping the Fund to
strategically position for outperformance over the medium-to-
long term angle.
Strategy-wise, the Fund has remained defensive against
“election-related” risk events, and will likely to maintain a
strategy of being in good credit names and relatively shorter
duration. Currently, the Fund’s duration stands at 3.03 years, in
line with our strategy to ensure capital stability.
For the Underlying Fund, the FTIF Templeton Global Bond Fund
has continued to position itself to seek to manage the interest-
rate risks that it expects from the combination of historically low
interest rates and easy monetary policy in the G-3 countries.
Thus, the Underlying Fund has generally maintained an extremely
short duration during the review period while seeking to take
advantage of what it deems to be the relative attractiveness of
currencies of countries whose fundamentals are likely to support
medium-term growth.
As of 28 February 2013, the top-three holdings of the Fund
are CIMB Bank Berhad - Unlisted Bond (15.78%), DanaInfra
Nasional Berhad-Malaysia Government Securities (15.64%) and
Genting Singapore PLC – Unlisted Bond (15.50%) .
For the financial year, 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.
8 H on g L e on g Glo b al Bond F u ndIV. MARKET REVIEW
Local Fixed Income Markets
The local fixed income market has been griped with uncertainty
due to the election risk in the next few months. As a result, we
have seen more demand in short dated PDS.
We have also seen over the last year how foreigners have been
positioning heavily in the extreme short end of the MGS curve,
and an exit from foreign holders of MGS has yet to be seen.
On the economic front, the Malaysian economy performed
exceptionally well in 2012 amidst the global slowdown with
growth seen at 5.6%. This was mainly due to fiscal pump-priming
as government continued to roll out the ETP-related projects. A
series of populist measures e.g. civil servants wage increases,
cash payouts to the lower income group helped to lift domestic
growth momentum as well.
Throughout the review period, BNM left OPR unchanged at 3%
even though other regional central banks were lowering rates.
The tone of the policy statement signals an extended rate pause
to ensure a stronger domestic economic recovery as external risks
are still very much present and it would be premature to raise
interest rates. Inflation, on the other hand, remained benign at
1.5% in February and is expected to be well contained this year.
We believe OPR should remain stable at 3.00% for at least the
first half of 2013.
Global Fixed Income Markets
The ebb and flow of concerns about a potential Chinese hard
landing, sluggish US growth, contagion from Greece spreading to
Italy and Spain, and the possibility of a eurozone breakup, drove
broad market sentiment for much of 2012. However, we believe
that much of the global economy has made notable progress.
While economic data continued to be softer in most economies,
there were some signs of stabilization.
While European economic activity has continued to stagnate,
investors have become increasingly aware that a challenging
growth environment in the eurozone is not likely to automatically
H o n g L e o n g Gl o b a l B o n d F u n d 9lead the monetary union to break apart. As these fears eased, we
have seen continued compression in credit spreads as investors
continued to seek relatively higher yields globally. Nevertheless,
we do not believe that Europe’s problems have been resolved.
While positive developments have continued, particularly toward
resolution of Spanish banking issues along with the beginnings
of a blueprint for a deeper fiscal union, much work remains to be
done.
In China, evidence has continued to affirm our view that
the country is not facing a “hard landing.” Many high-
frequency indicators have seen several consecutive months of
improvement. Additionally, there have been further indications
that policymakers are likely to be responsive and pursue easing in
the face of any potential economic slowdown. Following China’s
historic transition of power, we expect a continuation of policies
aimed at achieving a higher quality of growth, albeit at a lower
level than the past decade.
The fourth quarter of 2012 saw continued negotiation over
a series of scheduled tax-rate increases and spending cuts in
the US that would have taken place barring further action by
policymakers. These negotiations over the so-called “fiscal cliff”
did not show signs of concluding in a grand fiscal bargain to
address long-term fiscal problems in the US.
Overall, financial markets going into 2013 remained fairly stable.
Many investors had feared the “fiscal cliff,” a series of scheduled
tax rate increases and spending cuts in the US that would have
taken place barring action by policymakers. Though the brunt of
the impact of this retrenchment was avoided, the hard work of
addressing the long-term fiscal problems of the US was mostly
delayed.
At the tail end of the financial year, investors also saw a
slight pickup in interest rates on US Treasuries and continued
weakening of the Japanese yen. We have frequently noted that
in the widespread search for yield, many investors have taken
little protection from the risk of rising interest rates. Large
fiscal deficits, unprecedentedly loose monetary policies, and
inflationary pressures from rising Chinese wages could all push
interest rates structurally higher across many economies. While
this theme may take some time to fully play out, we can see from
10 H on g L e on g Glo b al Bond F u ndthis small move in rates that it is difficult to precisely time when
a selloff in longer-duration assets will occur.
We view an upward shift in interest rates as largely a matter
of timing. The world’s major central banks are continuing to
provide unprecedented amounts of liquidity to the financial
system, and many emerging markets have continued to display
strong fundamentals and resiliency. We believe capital flows
are likely to be directed toward the countries with the strongest
fundamentals.
V. FUTURE PROSPECTS AND PROPOSED STRATEGIES
Local Fixed Income Markets
In 2013, we expect more long dated supply of government
guaranteed bonds to fund national infrastructure projects.
To mitigate this supply pressure and near term political risk,
the Fund plans to shorten duration whenever possible, by
participating in primary issuances of short dated issues.
The Underlying Fund - Templeton Global Bond Fund
While we believe that concerns over the three issues that we
have continually revisited over the course of the past year—the
possibility of Europe breaking apart, a “hard landing” in China,
and a second recession in the US—will continue to periodically
resurface in one form or another. Policymakers have acted
appropriately to avert a potential “Armageddon” scenario in the
short term. While there are still many long-term issues for Europe
to solve, we think that the worst-case scenario is now behind us.
This being said, we think there is still a hard road ahead for Europe.
Progress on the long-term structural issues will be tough and is
unlikely to follow a straight trajectory.
Turning to China, we expect China’s GDP to be on pace to grow at
around 8% during 2013. It is difficult for us to characterize growth
of 8% as a hard landing, and we would view it as a welcome and
expected transition toward a lower growth path. The country’s
recent political transition has been reasonably smooth, and we
believe that current policymakers have remained fairly vigilant in
H o n g L e o n g Gl o b a l B o n d F u n d 11seeking to maintain stability and limit the risks of excessive credit
expansion. They continue to maintain controls on the real estate
market to help prevent asset price bubbles.
Additionally, another issue specific to China that we have
repeatedly touched upon—the tightening of labor markets—has
become increasingly important. Labor shortages have begun to
boost domestic demand through increasing domestic wages.
Growth in China is increasingly a domestic demand story rather
than an external sector-led story. We think this story will continue
to play out for several years.
In the US, growth has stabilized, albeit at a subtrend and fairly
anemic level. While not particularly inspiring, this is better than
the alternative of a second recession that many had feared.
While policymakers ultimately avoided the full impact of the
combination of spending cuts and tax hikes popularly termed the
“fiscal cliff,” they ultimately punted on the long-term fiscal issues
facing the US. While the deep structural fiscal issues may not
be immediately pressing, they will clearly have to be addressed
eventually.
Perhaps the most significant risk factor for the US is what we view
as an environment of almost inevitable increases in interest rates.
Rates on US Treasuries have been suppressed by the periods of
risk aversion characterizing the past few years, as well as by an
unprecedented level of monetary easing. Normalization of either
of these factors would likely result in rising rates.
The current low levels of interest rates and the likelihood of facing
a rising rate environment are central to our near-term outlook.
We have positioned ourselves very defensively with respect to
duration risk. We do not believe that the current low levels of
rates represent good value, nor do we think moving further out
along the yield curve appropriately compensates investors for
the risk of rising rates.
We expect many emerging markets to benefit from solid
fundamentals as well as ongoing capital inflows from worldwide
quantitative easing. We remain encouraged about the growth
prospects and low indebtedness of many emerging markets.
Outside China, the rest of Asia ex-Japan looks reasonably strong
to us, as do select economies in Latin America and Europe. We
12 H on g L e on g Glo b al Bond F u ndbelieve credit conditions have remained favorable in these regions
given their low levels of debt and relatively stronger growth rates.
Many countries in these regions also have offered higher short-
term interest rates and had undervalued currencies. We favor
those countries with policymakers who have stayed ahead of
the curve regarding fiscal, monetary and financial policy.
We have continued to anchor our long-term views on
fundamental analysis, and we continue to seek to take advantage
of opportunities as they arise. We see the unorthodox policies
being followed in some major advanced countries as having
potentially serious long-term consequences, including asset price
bubbles and upward surges in commodity prices.
We have continued to position ourselves to seek to manage
the interest-rate risks that we expect from the combination of
historically low interest rates and easy monetary policy in the
G-3 (i.e., the US, the eurozone and Japan), rising price pressures
emanating from China and global demand that we believe is far
from collapsing. Thus, we generally maintained an extremely
short duration within our strategies recently, while seeking to
take advantage of what we deem as the relative attractiveness
of currencies of countries with fundamentals likely to support
medium-term growth.
VI. 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.
H o n g L e o n g Gl o b a l B o n d F u n d 13经理人回顾与报告
I. 基金资讯
基金名称
丰隆环球债券基金
基金类别
固定收益
基金类型
收益
投资目标
本基金寻求提供定期收益 * 和最高的投资总回酬，同时在最
低的风险水平下稳定其资本 **。
表现基准
本基金将投资一个由固定收益证券和期权组成的投资组合。掉
期交易/结构型产品/期权的总回酬表现与全球固定收益投资连
接。因此，经理认为，摩根大通环球政府债券指数是本基金
的适当基准指标。摩根大通环球政府债券指数相关资料，可从
www.lipperweb.com网站寻获，并以订阅的形式提供。
分派政策
本基金旨在提供每半年一次的定期收益 * ，以及长期 *** 资本
成长。同样的，我们将在竭尽所能的基础上分派收益回酬，
而收益分派将胥视利率、市况和基金表现而定。
掉期交易伙伴
摩根大通银行有限公司(J.P. Morgan Chase Bank Berhad)
注：
* 收益能以现金及/或单位的形式分派。
** 敬请注意，本基金并非一项资本保证基金或一项资本保障基金，
而且回酬并不获保证。
***长期是指为期5年以上。
14 H on g L e on g Glo b al Bond F u nd单位持有详情
单位规模 户口数量 持有的单位数量
5,000及以下 30 73,795.61
5,001至10,000 16 124,144.28
10001至50000 40 928,658.03
50,001至500,000 15 2,135,153.09
500,001及以上 4 49,588,991.94
II. 基金表现
图1: 本基金与招股说明书中披露的基准指标自推介
以来的表现对比
50.00
40.00
30.00
20.00
10.00
0.00
-10.00
-20.00
18/4/2008
31/12/2008
31/12/2009
31/12/2010
31/12/2011
31/12/2012
28/2/2013
从18/04/2008至28/02/2013
丰隆环球债券基金 摩根大通环球政府
40.82 债券指数 18.90
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
资产值的基础，收益分派（若有）将被再投资。
投资者必须注意，基金过往的表现不可作为未来
表现的指标。单位价值会扬升，亦会走低。
H o n g L e o n g Gl o b a l B o n d F u n d 15表现检讨
此年度报告涵盖从2012年3月1日至2013年2月28日的12个
月财政年。
在 过 去 一 年 内 ， 本 基 金 取 得 9.03% 的 总 回 酬 ， 而 其 基 准 指
标--摩根大通环球政府债券指数在同一检讨期中则取得
1.66%回酬。
自推介以来，本基金已上涨40.82%，而基准指标同期则取
得18.90%回酬。迄今，本基金已分派每单位9仙净收入总分
派额。本基金展开收益分派行动的目的在于分派定期收益给
单位持有人。投资者需知道，收益分派行动并不会影响他们
投资的价值，不过也并非是预测或预估本基金未来表现的任
何方法。
因此，经理的结论是，本基金在期间已达到其目标，即在保
持投资资本的稳定性之际，也提供收益分派和尽量获得最高
的投资总回酬。
表1: 本基金截至2013年2月28日止下述期间的总回酬率
(资料来源：Lipper)
30/11/12- 31/08/12- 29/02/12- 28/02/11- 28/02/10- 18/04/08 -
28/02/13 28/02/13 28/02/13 28/02/13 28/02/13 28/02/13
3 个月 6个月 1年 2年 3 年 自推介以来
丰隆环球债券基金（%） 2.99 8.66 9.03 15.19 24.60 40.82
基准指标（%） -1.95 -4.40 1.66 6.93 1.44 18.90
16 H on g L e on g Glo b al Bond F u nd表2: 丰隆环球债券基金在2012年2月29日至2013年2月
28日以每单位净资产值对每单位净资产值基础的表
现（资料来源：Lipper）
2012年2月29日 2013年2月28日 回酬
(%)
每单位净资产值 RM0.5524 RM0.6023 9.03
基准指标 520.13 512.51 1.66
对比基准指标表现(%) - - 7.37
表3: 财务摘要
单位持有人的应占资产净值，如下所示：
单位持有人的基金 2013年2月28日 2012年2月29日 变动
(RM) (RM) (%)
单位持有人的基金 24,823,821 38,194,866 -35.01
分派调整 560,866 2,206,991 -74.59
保留盈余
－未实现盈利 229,634 5,150,462 -95.54
－未分派收益／（亏损） 6,222,484 (1,488,393) 518.07
6,452,118 3,662,069 76.19
净资产值 31,836,805 44,063,926 -27.75
流通单位 52,855,743 79,770,529 -33.74
H o n g L e o n g Gl o b a l B o n d F u n d 17表4: 本基金截至财政年的每单位最高和最低资产净值、
总回酬率及资本成长和收益分派细分表
财政年从 财政年从 财政年从
29/02/12- 28/02/11- 28/02/10 -
28/02/13 29/02/12 28/02/11
每单位最高净资产值（令吉） 0.6040 0.5995 0.5991
每单位最低净资产值（令吉） 0.5071 0.5069 0.5122
资本成长(%) 9.03 -4.00 1.82
收益分派(%) - 9.65 6.34
总回酬 (%) 9.03 5.65 8.16
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
资产值的基础，收益分派（若有）将被再投资。
表5： 本基金的平均总回酬
29/02/12 - 28/02/10 -
28/02/13 28/02/13
1年 3年
平均总回酬 (%) 9.03 8.20
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
资产值的基础，收益分派（若有）将被再投资。
表6： 本基金的年度总回酬
29/02/12- 28/02/11- 28/02/10- 28/02/09- 18/04/08 -
28/02/13 29/02/12 28/02/11 28/02/10 28/02/09
年度总回酬 (%) 9.03 5.65 8.16 25.05 -9.62
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
资产值的基础，收益分派（若有）将被再投资。
18 H on g L e on g Glo b al Bond F u ndIII.投资组合
图2: 本基金从2012年3月至2013年2月止的资产配置
Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
12 12 12 12 12 12 12 12 12 12 13 13
固定收益债券 邓普顿环球债券掉期
集合投资计划
图3: 丰隆环球债券基金截至2013年2月28日止的按
领域资产配置
ֳߓ؟ᅖלఀ
հংç႒൳ংརࠪఊ 9.62%
27.61%
ఙ၃ᅖ
22.21%
ࠩލሮࡀߊ
9.42%
ఙ၃ᅖ – ݚບ
છদ།ᆦڰᅖ 15.50%
15.64%
H o n g L e o n g Gl o b a l B o n d F u n d 19图4: 基础基金邓普顿环球债券基金截至2013年2月
28日的资产配置
հংç႒൳ংརࠪఊ
ဌഺ 15.21%
-0.80%
൮ᆦڰ
0.13%
ࡄݚቍᆵ
1.44%
ᇽಊᅖ
11.07%
ࡄݚᆦڰ/ࠖܙᅖ
72.95%
图5: 基础基金邓普顿环球债券基金截至2013年2月
28日的地理配置
ૌݚ հংç႒൳ংརࠪఊ
1.33% 15.21%
ࡄݚቍᆵ
1.44%
ᇤƓಷЮԩບƔ
ᇤࠑт৺ݚ
32.44%
8.59%
ૌᇤƓૌݚԩບƔ
9.08%
٫ᇤࠑт৺ݚԩບ
31.91%
20 H on g L e on g Glo b al Bond F u nd在国内固定收益方面，配合我们充满活力的投资组合策略，以
提升回酬至最高水平，同时有助于本基金在中至长期内取得出
色表现的策略性部署，本基金将继续积极地参与市场。
策略方面而言，本基金对“大选相关”风险事件仍保持防御
性立场，并将保持投资优质信贷公司和相对短的期限策略。
目前，配合本基金确保资本稳定的策略，本基金的期限企于
3.03年。
至于基础基金，即FTIF邓普顿环球债券基金已继续部署，试图
管理处于历史低水平的利率和3大工业国的宽松货币政策环境
预料所衍生的利率风险。
因此，在受检讨的期间，基础基金普遍上已保持一个非常短的
期限，并伺机从那些基本因素面被认为应足以支持中期成长，
而且相当具吸引力的国家货币中获利。
截 至 2013年 2月 28日 止 ， 本 基 金 的 首 3大 持 有 投 资 分 别 为
CIMB银行–未挂牌债券（15.78%），DanaInfra Nasional有
限公司–马来西亚政府债券（15.64%）以及新加坡云顶–未挂
牌债券（15.50%）。
在财政年内，本基金截至此经理报告日的营运状况或情况并未
出现任何重大改变，以致明显影响单位持有人的利益。
IV. 本基金投资期间的市场走势回顾
国内固定收益市场
由于未来数个月的大选风险，国内固定收益市场充斥着不确定
因素。结果，短期私人债务证券的需求较高。
去年，外国投资者也大量部署购置非常短期的大马政府债券
曲线，而大马政府债券的外国持有人退场的迹象迄今仍尚未
可见。
经济方面，在全球经济放慢之际，大马经济2012年表现出奇
地好，成长达到5.6%。这主要归功于政府开支方面的财政注
资，因为政府继续展开经济转型计划相关工程。一系列的民粹
H o n g L e o n g Gl o b a l B o n d F u n d 21主义措施如公务员调薪、发放现金给低收入群，也有助于提国
内成长动力。
在检讨期间，尽管其它区域中央银行降低利率，大马国家银行
仍保持隔夜政策利率不变于3%。政策声明的语调暗示，由于
外围风险仍存在，升息仍言之过早，我国继续暂停升息，以确
保国内经济出现较有力的复苏。另一方面，2月通膨仍保持在
1.5%的温和水平，并估计今年将继续受到良好的控制。我们相
信，隔夜政策利率将保持于3.00%稳定水平，至少到2013年上
半年。
环球固定收益市场
中国经济衰退并可能硬着陆的隐忧、美国成长乏力、希腊问题
蔓延至意大利和西班牙，以及欧元区可能瓦解，牵引着2012
年大多数时间的大市情绪。不过，我们相信全球经济很大程度
上已取得不错的进展。在大多数经济体的经济数据继续走软之
际，一些则出现稳定的迹象。
虽然欧洲经济活动仍继续停滞不前，不过投资者已逐渐意识到
欧元区具挑战性的成长环境并不可能自动地导致该货币联盟解
散。随着这些畏惧减退，信贷价差继续收窄，因为投资者在全
球继续追求相对高的周息率。尽管如此，我们不认为欧洲问题
已解决。虽然正面发展仍不断传开，特别是针对西班牙银行课
题和较深入的财政联盟蓝图都已开始，不过未来仍有需要工作
有待完成。
在中国，证据一再地证实我们的观点，即该国并未面对“硬着
陆”。许多高频率指标出现连续多个月的改善走势。此外，
进一步的暗示也透露，若面对任何经济放慢的情况，决策者将
采取行动并展开宽松政策。随着中国完成历史性的政权交替工
作，我们预测政策将继续锁定高质量的成长，纵使成长水平比
上个十年来得低。
2012年第四季，美国将继续针对一系列将落实的预定增税和
削减开支政策进行谈判，除非决策者采取进一步的行动。这些
针对被称为“财政悬崖”的谈判并未有总结出任何足以解决美
国长期财政问题的大型财政行动的迹象。
22 H on g L e on g Glo b al Bond F u nd整体上，步入2013年，金融市场走势保持相当稳定。许多投
资者担忧“财政悬崖”，美国将落实一系列预定的增税和削
减开支政策，除非决策者采取进一步的行动。尽管这股裁员
浪潮的冲击已避过，解决美国长期财政问题的大部分繁重工
作仍被延误。
在财政年末，美国国库利率稍微上涨，日元则持续走弱。我们
经常意识到，在收益率的广泛搜寻下，利率上升风险给投资者
的保障十分微小。庞大的财政赤字、空前的宽松货币政策以及
中国工资上升造成的通膨压力，全都可能推动许多经济体的利
率出现结构性上升的走势。尽管这个题材可能需要一段时间才
全面消化，不过凭着利率稍微走高的情况，我们实在难以准确
估计较长期资产的抛售行动何时会出现。
我们认为，利率往上走的情况在很大程度上是时间的问题。全
球大型央行继续向金融市场投入空前数额的游资，而许多新兴
市场仍持续展现强稳的基本面和韧性。我们深信。资金流可能
将流向拥有最强基本面的国家。
V. 未来展望与策略建议
国内固定收益市场
2013年，我们预测长期政府担保债券会有更多的供应量，以
便融资国家基建计划。
为了减轻这股供应压力和近期的政治风险，本基金计划通过参
与短期债券的初级发行活动，尽可能缩短期限。
基础基金- 邓普顿环球债券基金
虽然我们相信我们去年不断讨论的三项课题 – 欧洲可能解
体、中国“硬着陆”和美国可能出现二度衰退的隐忧 – 将继
续定期以某种形式浮现，决策者已采取适当的行动，避免“世
界末日”情景在短期内出现。尽管欧洲仍有许多长期课题待解
决，我们认为如今最糟糕的情况已成为过去。综上所述，我们
认为欧洲未来的道路仍崎岖难走。长期结构课题的进展会是困
难的，并不可能一就而成。
H o n g L e o n g Gl o b a l B o n d F u n d 23中国方面，我们预期中国2013年国内生产总值成长率料大概
为8%。我们难以将8%成长归纳为硬着陆，而我们视之为迎接和
预期转换成为较低成长轨道的前序。该国近期的政治交替工作
相当顺畅，我们相信现有决策者将继续追求稳定性，并抑制信
贷过度扩张的风险。他们继续控制房地产市场，将有助于遏止
资产价格产生泡沫。
此外，我们一再重申的另一中国相关课题是–劳力市场紧缩
–变得日益重要。劳工短缺促使国内工资增加，已开始推动内
需。中国的成长已变成为内需所推动，而非是海外领域所带
动。我们认为，这个情况将继续延续多年。
在美国，成长步伐已走稳，纵使非处于基本趋势和相当苍白的
水平。虽然表现不令人感到振奋，不过仍比令许多人闻风丧胆
的二度衰退来得好。虽然决策者基本上避免了普遍上被称为“
财政悬崖”的开支削减和增税的全面效应，但他们最终却赌上
了美国所面对的长期财政问题。重大的结构性财政问题可能未
即时被重视，但他们最终却仍需解决。
我们认为美国最明显的风险因素就是利率几乎无可避免上升的
环境。在过去数年内，美国国库利率已被风险规避因素，以及
空前的货币宽松水平所压抑。一旦这些因素之一正常化将导致
利率上升。
现有偏低的利率水平和未来将面对利率上升的环境是我们近
期展望的主轴。我们对期限风险拥有非常防御性的立场。我
们不认为现有的偏低利率水平会带来好价值，我们也不认为
在收益曲线上更向前移动足以适当地补偿投资者面对利率上
升的风险。
我们预测，许多新兴市场将受惠于稳健的基本面，以及全球量
化宽松持续流入的资本。我们对于许多新兴市场的低负债和成
长前景仍十分乐观。对我们而言，在中国外头，日本以外的亚
洲国家，以及一些拉丁美洲和欧洲经济体都相当强稳，有鉴于
债务水平偏低和成长率相对有力，我们认为这些区域国家的信
贷情况仍十分良好。这些地区的许多国家也提供较高的短期利
率和被低估的货币。我们偏好那些决策者跑在财政、货币曲线
和金融政策的国家。
24 H on g L e on g Glo b al Bond F u nd我们预测，许多新兴市场将从稳健的基本面和全球量化宽松政
策持续带来的资本流入中受惠。对于许多新兴市场的成长前景
和低债务状况，我们都仍感到鼓舞。我们认为，在中国之外，
日本以外的其他亚洲国家都拥有相当强稳的基本因素，一些来
自拉丁美洲和欧洲经济体的状况也一样。有鉴于债务偏低和成
长率相对强稳，我们相信这些地区的信贷情况仍有利。这些区
域的许多国家也都拥有较高的短期利率和被低估的货币。我们
偏好那些其政策制定者跑在财政、货币和金融政策曲线前头的
国家。
我们继续拥护我们建立在基本面分析上的长期看法，并继续试
图从浮现的机会中获利。我们认为一些采取不正统政策的大型
先进国家已开始浮现严重的潜在长期后果，包括资产价格泡沫
和商品价格向上飙涨。
我们继续定位要管理利率处于历史性低水平和3大工业国（即
美国、欧元区和日本）宽松货币政策料引起的利率风险、中国
衍生的价格上升压力和我们不认为会崩溃的全球需求。因此，
我们近期策略普遍上将保持非常短的期限，同时伺机投资我们
认为相对具吸引力，即国家基本面足以支持中期成长的货币。
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。
H o n g L e o n g Gl o b a l B o n d F u n d 25STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2013
2013 2012
Note RM RM
INVESTMENT INCOME
Interest income 964,413 1,428,602
Tax exempt distribution income 38,790 767,752
Amortisation of premium, net of
accretion of discount (2,767) (41,951)
Net gain on financial instruments at
fair value through profit or loss
(“FVTPL”) 8 2,311,478 87,313
Net (loss)/gain on foreign exchange (24) 370
3,311,890 2,242,086
EXPENDITURE
Management fee, net of rebates 5 (439,333) (622,099)
Trustee’s fee 6 (28,424) (47,399)
Auditors’ remuneration (8,000) (8,000)
Tax agent’s fee (2,950) (2,950)
Custodian fee (18,717) -
Administration expenses (24,417) (38,077)
(521,841) (718,525)
Net income before taxation 2,790,049 1,523,561
Taxation 7 - -
Net income after taxation,
representing total comprehensive
income for the year 2,790,049 1,523,561
Net income after taxation is made up of:
Realised income/(loss) 7,710,877 (4,137,958)
Unrealised (loss)/gain (4,920,828) 5,661,519
2,790,049 1,523,561
The accompanying notes form an integral part of the financial statements.
26 H on g L e on g Glo b al Bond F u ndSTATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2013
28 February 29 February 1 March
2013 2012 2011
Note RM RM RM
ASSETS
Financial assets at FVTPL 8 23,046,091 19,160,833 12,573,459
Deposits with financial
institutions 9 8,911,000 14,204,000 7,518,000
Amount due from the
Manager 10 - 12,602,400 -
Interest receivable 184,108 123,837 48,110
Distribution income receivable 6,450 - 3,283
Cash at banks 11 40,631 23,181 37,228
TOTAL ASSETS 32,188,280 46,114,251 20,180,080
LIABILITIES
Amount due to the
Manager, net 12 326,807 440,025 127,323
Amount due to the Trustee 1,947 3,653 4,149
Unquoted derivative
instrument13 8,400 - -
Cash distribution payable - 1,595,411 -
Other payables and accruals 14,321 11,236 11,236
TOTAL LIABILITIES 351,475 2,050,325 142,708
EQUITY/NET ASSET VALUE
Unitholders’ capital 14(a) 24,823,821 38,194,866 17,409,850
Distribution equalisation 560,866 2,206,991 (728,305)
Retained earnings 6,452,118 3,662,069 3,355,827
TOTAL EQUITY 14 31,836,805 44,063,926 20,037,372
TOTAL LIABILITIES AND EQUITY 32,188,280 46,114,251 20,180,080
UNITS IN CIRCULATION 14(a) 52,855,743 79,770,529 34,822,438
NET ASSET VALUE (“NAV”)
PER UNIT (EX-DISTRIBUTION) 0.6023 0.5524 0.5754
The accompanying notes form an integral part of the financial statements.
H o n g L e o n g Gl o b a l B o n d F u n d 27STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2013 Unitholders’ Distribution Retained capital equalisation earnings Total equity Note RM RM RM RM As at 1 March 2011 17,409,850 (728,305) 3,355,827 20,037,372 Net income after taxation, representing total comprehensive income for the year - - 1,523,561 1,523,561 Cash distribution for the year 15 - (1,595,421) (1,217,319) (2,812,740) Creation of units 65,847,373 - - 65,847,373 Cancellation of units (40,531,640) - - (40,531,640) Distribution equalisation (4,530,717) 4,530,717 - - As at 29 February 2012 38,194,866 2,206,991 3,662,069 44,063,926 As at 1 March 2012 38,194,866 2,206,991 3,662,069 44,063,926 Net income after taxation, representing total comprehensive income for the year - - 2,790,049 2,790,049 Creation of units 7,522,912 - - 7,522,912 Cancellation of units (22,540,082) - - (22,540,082) Distribution equalisation 1,646,125 (1,646,125) - - As at 28 February 2013 24,823,821 560,866 6,452,118 31,836,805 The accompanying notes form an integral part of the financial statements. 28 H on g L e on g Glo b al Bond F u nd
STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2013
2013 2012
Note RM RM
CASH FLOWS FROM OPERATING AND
INVESTING ACTIVITIES
Proceeds from sale of financial assets
at FVTPL 60,238,084 107,205,640
Proceeds from bond maturity 5,000,000 3,000,000
Purchase of financial assets at FVTPL (54,185,736) (123,347,189)
Realised foreign exchange differences
arising from operating and investing
activities (18,042) (6,002,440)
Interest received 904,142 1,352,875
Distributions income received 32,340 771,035
Management fee paid, net of
rebates received (458,133) (590,850)
Trustee’s fee paid (30,130) (47,895)
Other expenses paid (51,449) (48,577)
Net cash generated from/(used in)
operating and investing activities 11,431,076 (17,707,401)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts from creation of units 7,518,652 65,847,373
Payments for cancellation of units (22,629,790) (40,250,637)
Cash distributions paid (1,595,411) (1,217,329)
Net cash (used in)/generated from
financing activities (16,706,549) 24,379,407
NET (DECREASE)/INCREASE IN CASH
AND CASH EQUIVALENTS (5,275,473) 6,672,006
EFFECT OF FOREIGN EXCHANGE
RATE CHANGES (77) (53)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF FINANCIAL YEAR 14,227,181 7,555,228
CASH AND CASH EQUIVALENTS AT END
OF FINANCIAL YEAR 8,951,631 14,227,181
Cash and cash equivalents comprise:
Cash at banks 11 40,631 23,181
Deposits with financial institutions 9 8,911,000 14,204,000
8,951,631 14,227,181
The accompanying notes form an integral part of the financial statements.
H o n g L e o n g Gl o b a l B o n d F u n d 29NOTES TO THE FINANCIAL STATEMENTS
- 28 FEBRUARY 2013
1. THE FUND, THE MANAGER AND THEIR PRINCIPAL
ACTIVITIES
Hong Leong Global Bond Fund (hereinafter referred to as “the
Fund”) was constituted pursuant to the execution of a Deed
dated 11 December 2007 and the Supplemental Deed dated
30 April 2010 (“the Deed”) between the Manager, Hong
Leong Asset Management Bhd., the Trustee, CIMB Commerce
Trustee Berhad and the registered unitholders of the Fund.
The investment criteria of the Fund is to invest in permitted
investments as defined under the Deed, which include investing
in fixed income securities and structured derivatives or options
that invest primarily in a portfolio of fixed or floating rate debt
securities and debt obligations of government, government-
related or corporate issuers worldwide. The Fund commenced
operations on 18 April 2008 and will continue its operations until
terminated as provided under Division 12.3 of the Deed.
The primary objective of the Fund is to provide regular income
and to maximise total investment return whilst at the same
time aims to offer stability of capital with minimum risk.
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.
30 H on g L e on g Glo b al Bond F u nd2. SIGNIFICANT ACCOUNTING POLICIES
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 has 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.
H o n g L e o n g Gl o b a l B o n d F u n d 313. 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
statements of financial position of the Fund as at 1 March
2011 (the transition date to MFRSs Framework), unless
otherwise stated.
3.2 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 fixed income securities, collective
investment schemes and derivatives.
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,
distribution income and amortisation of premium/
accretion of discount are recorded separately in
32 H on g L e on g Glo b al Bond F u nd‘Interest income’, ‘Tax exempt distribution income’ and
‘Amortisation of premium, net of accretion of 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 unquoted fixed income securities is
valued by reference to indicative prices published by
Bond Pricing Agency Malaysia and Bloomberg on a
daily basis.
The fair value of unquoted collective investment
schemes is valued at last published net asset value as
at the last business day of the financial year end.
The fair value negotiable instrument of deposits is
marked-to-market with rates obtained from its issuer
on a daily basis.
The fair value of foreign exchange forward contract is
calculated by reference to prevailing forward exchange
rates for contacts with similar maturity profit in the
market. Derivatives are carried as assets when the fair
value is positive and as liabilities when the fair value is
negative.
The fair value of swap contracts are determined using
valuation prices provided by the swap provider, JP
Morgan Chase Bank Berhad.
(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 financial 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
H o n g L e o n g Gl o b a l B o n d F u n d 33the statement of comprehensive income when the
loans and receivables are derecognised or impaired,
and through the amortisation process. The Fund does
not have any loan 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 method. 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 receivables, 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.
34 H on g L e on g Glo b al Bond F u nd(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 of 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.
Distribution income from unquoted collective investment
schemes is recognised when the Fund’s right to receive
payment is established.
H o n g L e o n g Gl o b a l B o n d F u n d 35(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 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 or receipts made
on derivative contracts.
(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) Foreign Currencies Transaction
Transactions in currencies other than the Fund’s functional
currency which is Ringgit Malaysia (foreign currencies) are
recorded in the functional currency using exchange rates
prevailing at the transaction dates. At each reporting date,
foreign currency monetary items are translated into Ringgit
Malaysia at exchange rates ruling at the last business
day of the financial year. All exchange gains or losses are
recognised in the statement of comprehensive income.
36 H on g L e on g Glo b al Bond F u nd(h) 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.
(i) 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 Securities Commission
Malaysia’s Guidelines on Unit Trust Funds in Malaysia
In preparing the Fund’s opening MRFSs statement of
financial position as at 1 March 2011 (which is also the date
of transition), the Fund has adjusted the amounts previously
reported in financial statements prepared in accordance with
FRS in Malaysia. The transition from FRS to MRFSs has not
had a material impact on the Fund’s financial position, financial
performance and cash flows.
H o n g L e o n g Gl o b a l B o n d F u n d 373.4 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 March 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)
Amendments to MFRS 132 Financial Instruments:
Presentation (Annual Improvement2009-2011
Cycle)
Amendments to MFRS 134 Interim Financial
Reporting (Annual Improvements 2009-2011
Cycle)
38 H on g L e on g Glo b al Bond F u ndAmendments 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 March 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 March 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 MFRS 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.
H o n g L e o n g Gl o b a l B o n d F u n d 39(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 uncertanity at the reporting date that have a
significant risk of causing a material adjustment to the carrrying
amounts of the financial assets and financial liabilities within
the next financial year.
40 H on g L e on g Glo b al Bond F u nd5. MANAGEMENT FEE, NET OF REBATES
2013 2012
RM RM
Management fee 444,123 740,603
Rebates of management fee (4,790) (118,504)
Net management fee 439,333 622,099
The management fee is 1.25% per annum calculated on the net
asset value of the Fund on a daily basis as provided under Division
13.1 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 (2012: Hong Leong Bond Fund and
Hong Leong Institutional Bond Fund respectively). The rebates
is 0.30% (2012: 1.00% and 0.50% respectively) per annum
calculated on net asset value of Hong Leong Islamic Institutional
Income Management Fund (2012: Hong Leong Bond Fund and
Hong Leong Institutional Bond Fund respectively) 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
of RM18,000 per annum (excluding foreign custodian fee and
charges) as provided under Division 13.2 of the Deed.
H o n g L e o n g Gl o b a l B o n d F u n d 417. TAXATION
Interest income, tax exempt distribution income, amortisation
of premium, net of accretion of discount and realised gain on
sale of investments derived by the Fund are tax exempted under
the relevant provisions of the Income Tax Act 1967. Hence, there
is no tax expense for the Fund for the current financial year.
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 2,790,049 1,523,561
Taxation at Malaysian statutory rate of 25% 697,512 380,890
Income not subject to tax (828,671) (571,010)
Net loss not deductible for tax purposes 698 10,488
Expenses not deductible for tax purposes 14,224 14,961
Restriction on tax deductible expenses for
unit trust fund 104,613 148,204
Permitted expenses not used and not
available for future years 11,624 16,467
Tax expense for the financial year - -
42 H on g L e on g Glo b al Bond F u nd8. FINANCIAL ASSETS AT FVTPL
28 February 29 February 1 March
2013 2012 2011
RM RM RM
Financial assets held for trading:
Unquoted call option outside Malaysia - - 2,740,693
Unquoted fixed income securities
in Malaysia 12,048,900 4,072,367 3,018,300
Unquoted fixed income securities
outside Malaysia 4,934,081 - -
Unquoted derivatives in Malaysia - 3,001,650 -
Unquoted derivatives outside Malaysia 3,062,810 12,086,816 -
Unquoted collective investment schemes
in Malaysia 3,000,300 - 4,822,466
Negotiable instruments of deposit
in Malaysia - - 1,992,000
23,046,091 19,160,833 12,573,459
2013 2012
RM RM
Net gain on financial instruments at FVTPL comprised:
Realised gain/(loss) on disposals 7,232,282 (5,573,836)
Unrealised changes in fair values of
- Investments 113,252 11,697
- Unquoted derivative instruments (5,034,056) 5,649,452
(4,920,804) 5,661,149
2,311,478 87,313
H o n g L e o n g Gl o b a l B o n d F u n d 43Financial assets held for trading as at 28 February 2013 are as
detailed below:
Percentage of
fair value
over net
Nominal Adjusted asset value
value cost Fair value of the Fund
RM RM RM %
Unquoted Fixed Income Securities
in Malaysia
- Malaysian Government
Securities
3.74% Danainfra IMTN
(GG) 20/07/2022 5,000,000 4,988,081 4,980,500 15.64
- Private Debt Securities
5.05% Prominic (Series 1)
(AA3) 05/05/2016 * 2,000,000 2,000,000 2,046,400 6.43
4.15% CIMB Bank
(Issue No.3)
(AA1) 08/08/2016 ** 5,000,000 5,020,500 5,022,000 15.78
7,000,000 7,020,500 7,068,400 22.21
TOTAL UNQUOTED FIXED
INCOME SECURITIES IN
MALAYSIA 12,000,000 12,008,581 12,048,900 37.85
Percentage of
fair value
over net
Nominal Adjusted asset value
value cost Fair value of the Fund
RM RM RM %
Unquoted Fixed Income Securities
outside Malaysia
Singapore
5.125% Genting Singapore
(BBB3) 12/09/2017 2,000,000 4,799,400 4,934,081 15.50
Unquoted Derivatives outside Malaysia
Templeton Global Bond
Swap 30,000,000 3,000,000 3,062,810 9.62
44 H on g L e on g Glo b al Bond F u ndUnquoted Collective Investment
Schemes in Malaysia
Hong Leong Islamic Institutional
Income Management
Fund 3,000,000 3,000,000 3,000,300 9.42
TOTAL FINANCIAL ASSETS
AT FVTPL 22,807,981 23,046,091 72.39
EXCESS OF FAIR VALUE OVER COST 238,110
* Representing call date, which is earlier than the maturity date on 05
May 2061.
** Representing call date, which is earlier than the maturity date on 06
August 2021.
Effective yield of the unquoted fixed income securities as at 28
February 2013 was 4.17% (2012: 3.92%) 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 28 February 2013, the fair value of the Fund’s investments are
determined based on level 2 hierarchy as described above.
H o n g L e o n g Gl o b a l B o n d F u n d 459. DEPOSITS WITH FINANCIAL INSTITUTIONS
28 February 29 February 1 March
2013 2012 2011
RM RM RM
A licensed bank related to
the Manager 4,911,000 204,000 1,518,000
Other licensed banks 4,000,000 14,000,000 6,000,000
8,911,000 14,204,000 7,518,000
10. AMOUNT DUE FROM THE MANAGER
This amount relates to sale of unquoted collective investment
schemes, managed by the Manager, of which settlement has yet
to be made at year end.
11. CASH AT BANKS
28 February 29 February 1 March
2013 2012 2011
RM RM RM
A licensed bank related to the
Manager 20,220 20,701 21,001
Other licensed banks in Malaysia 1,865 950 980
Foreign currency in a licensed bank
related to the Manager in Malaysia 23 87 15,247
Foreign currencies in a licensed banks
outside Malaysia 18,523 1,443 -
40,631 23,181 37,228
46 H on g L e on g Glo b al Bond F u ndThe foreign currencies held by the Fund comprise bank balances held in the following currencies:
28 February 2013 29 February 2012 1 March 2011
Foreign RM Foreign RM Foreign RM
Currencies Equivalent Currencies Equivalent Currencies Equivalent
Foreign Currencies
Singapore Dollar 7,407 18,523 - - - -
United States Dollar 7 23 511 1,530 5,003 15,247
18,546 1,530 15,247
H o n g L e o n g Gl o b a l B o n d F u n d
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