Eastspring Investments Asia Select Income Fund

Interim Report

valuations may be adjusted to reflect illiquidity and/or non-transferability, which
are generally based on available market information. The Fund’s policies on
valuation of these financial assets are stated in Note F to the financial statements.

ii. The carrying value of cash and cash equivalents, amount due from Manager and
all liabilities are a reasonable approximation of their fair values due to their short
term nature.

3. MANAGEMENT FEE
In accordance with the Deed, the Manager is entitled to a management fee at a rate

not exceeding 2.00% per annum of the net asset value of the Fund accrued and
calculated on daily basis.

For the financial period ended 31 December 2019, the management fee is recognised
at a rate of 1.50% (2018: 1.50%) per annum of the net asset value of the Fund,
calculated on daily basis.

There will be no further liability to the Manager in respect of the management fee
other than the amounts recognised above.

4. TRUSTEE FEE
In accordance with the Deed, the Trustee is entitled to an annual fee at a rate not

exceeding 0.20% per annum of the net asset value of the Fund, subject to a minimum
fee of RM18,000 per annum and a maximum fee of RM350,000 per annum.

For the financial period ended 31 December 2019, the Trustee’s fee is recognised at a
rate of 0.07% (2018: 0.07%) per annum of the net asset value of the Fund, subject
to a minimum fee of RM18,000 per annum and a maximum fee of RM350,000 per
annum (excluding foreign custodian fees and charges), calculated on daily basis.

There will be no further liability to the Trustee in respect of the trustee fee other than
the amounts recognised above.

Client Services : 03-2778 1000 47

Eastspring Investments Asia Select Income Fund

5. TAXATION 6-months 6-months
financial financial
Tax charged for the financial period: period ended period ended
Current taxation - local 31.12.2019 31.12.2018

RM RM

--

The numerical reconciliation between profit/(loss) before taxation multiplied by the
Malaysian statutory tax rate and tax expense of the Fund is as follows:

6-months 6-months
financial financial
period ended period ended
31.12.2019 31.12.2018

RM RM

Profit/(loss) before taxation 1,140,578 (813,796)

Tax at Malaysian statutory rate of 24% 273,739 (195,311)
(2018: 24%)

Tax effects of: (447,227) 13,068
(Investment income exempt from tax)/ 10,276 11,992
investment loss not deductible for tax purpose
Expenses not deductible for tax purposes 163,212 170,251
Restriction on tax deductible expenses for
Unit Trust Funds

Taxation --

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Interim Report

6. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

2019 2018
RM RM

Designated at fair value through profit or loss: 33,298,378 33,184,072
Collective investment scheme (Note 6 (i)) 47,785,107 52,533,345
Unquoted fixed income securities (Note 6 (ii)) 81,083,485 85,717,417

Net gain/(loss) on financial assets at fair value 1,849,515 7,920
through profit or loss: (1,167,473) (1,440,085)
Realised gain on disposals (1,432,165)
Change in unrealised fair value loss 682,042

i. Collective investment scheme

Name of counter Quantity Aggregate Fair value Percentage
Units cost as at of net asset
Unit Trust Fund
Eastspring Investments RM 31.12.2019 value of
the Fund
- Dragon Peacock Fund RM
%
ACCUMULATED
UNREALISED GAIN ON 181,988 21,987,261 33,298,378 39.74
FINANCIAL ASSETS AT
FAIR VALUE THROUGH 11,311,117
PROFIT OR LOSS
33,298,378
FAIR VALUE OF Client Services : 03-2778 1000 49
FINANCIAL ASSETS AT
FAIR VALUE THROUGH
PROFIT OR LOSS

Eastspring Investments Asia Select Income Fund

i. Collective investment scheme

Name of counter Quantity Aggregate Fair value Percentage
Units cost as at of net asset
Eastspring Investments
- Dragon Peacock Fund RM 31.12.2018 value of
the Fund
RM
%

207,459 24,744,459 33,184,072 36.55

ACCUMULATED 8,439,613
UNREALISED GAIN ON
FINANCIAL ASSETS AT
FAIR VALUE THROUGH
PROFIT OR LOSS

FAIR VALUE OF 33,184,072
FINANCIAL ASSETS AT
FAIR VALUE THROUGH
PROFIT OR LOSS


The Fund primarily invests in the Eastspring Investments-Dragon Peacock Fund,

which is one of the sub-funds of the Eastspring Investments Funds (the “SICAV”, an
abbreviation Société d’ Investissement á Capital Variable) domiciled in Luxembourg.
The SICAV is an open-ended investment company registered on the official list of
collective investment undertakings pursuant to Part I of the Luxembourg law of 30
March 1988 on collective investment undertakings. The investment manager of the
Target fund is Eastspring Investments (Singapore) Limited. Eastspring Investments
(Singapore) Limited is a wholly owned subsidiary of Prudential Plc.

The investment objective of Eastspring Investments-Dragon Peacock Fund is to
maximise long-term total return by investing primarily in equity and equity-related
securities of corporations which are incorporated in, or listed in, or operating
principally from, or carrying on significant business in, or derive substantial revenue
from, or whose subsidiaries, related or associated corporations derive substantial
revenue from the People’s Republic of China (“PRC”) and the Republic of India.

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ii. Unquoted fixed income securities

Name of issuer Nominal Aggregate Fair Percentage
value cost value as at of net asset
5.45% Affin Bank Berhad 31.12.2019
07.02.2022 (A1) RM RM value of
RM the Fund
5.03% Affin Bank Berhad
20.09.2022 (A1) %

5.20% Ambank Islamic 4,000,000 4,116,675 4,223,877 5.04
Berhad 15.03.2022 (AA3) 2,000,000 2,028,388 2,087,528 2.49
1,000,000 1,015,101 1,047,641 1.25
4.62% Benih Restu Berhad 1,000,000 1,033,847 1,040,658 1.24
05.06.2025 (AA2 (S))
1,800,000 1,832,670 1,918,601 2.29
4.92% BGSM 1,000,000 1,018,310 1,029,600 1.23
Management Sdn Berhad
28.08.2025 (AA3) 5,000,000 5,073,534 5,297,584 6.32
1,000,000 1,011,418 1,084,958 1.29
4.10% Bumitama Agri Ltd
22.07.2024 (AA3) 2,000,000 2,012,960 2,018,500 2.41
1,000,000 1,088,978 1,152,252 1.38
4.88% CIMB Group
Holdings Berhad 100,000 109,758 111,505 0.13
13.09.2024 (AA)

4.53% Danainfra Nasional
Berhad 01.04.2037 (NR)

4.38% Genting RMTN
Berhad 08.11.2034
(AAA (S))

4.895% Government of
Malaysia 08.05.2047 (NR)

9.30% Jimah Energy
Ventures Sdn Berhad
12.11.2021 (AA3)

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Eastspring Investments Asia Select Income Fund

ii. Unquoted fixed income securities (continued)

Name of issuer Nominal Aggregate Fair Percentage
value cost value as at of net asset
9.05% Jimah Energy 31.12.2019
Ventures Sdn Berhad RM RM value of
12.11.2020 (AA3) RM the Fund

5.10% Krung Thai Bank %
Public Company Limited
06.07.2020 (AA2) 2,500,000 2,619,069 2,649,728 3.16
3.69
5.24% Lebuhraya Duke 3,000,000 3,074,195 3,092,525 5.41
Fasa 3 Sdn Berhad 2.71
23.8.2027 (AA- IS) 4,200,000 4,397,178 4,529,854 1.35
2.46
4.90% Perbadanan 2,000,00 2,048,472 2,268,184 2.74
Tabung Pendidikan Tinggi 1.30
Nasional 21.01.2033 (NR) 1,000,000 1,019,271 1,132,464 0.61
4.10
4.93% Perbadanan 2,000,000 2,030,844 2,056,960
Tabung Pendidikan Tinggi 2,000,000 2,016,491 2,294,071
Nasional 17.08.2032 (NR)
1,000,000 1,008,646 1,092,896
5.11% Quantum Solar
Park (Semenanjung) Sdn 500,000 509,410 512,809
Berhad 06.04.2022 (A+ IS)
3,200,000 3,259,199 3,431,751
5.32% Sarawak Energy
Berhad 03.12.2032 (AAA)

5.09% Southern Power
Generation Sdn Berhad
30.04.2029 (AA- IS)

5.02% Tanjung Bin Energy
Issuer Berhad 15.09.2020
(AA3)

4.58% Telekom Malaysia
Berhad 03.09.2027 (AAA)

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ii. Unquoted fixed income securities (continued)

Name of issuer Nominal Aggregate Fair Percentage
value cost value as at of net asset
4.65% Toyota Capital 31.12.2019
Malaysia Sdn Berhad RM RM value of
24.01.2023 (AAA (S)) RM the Fund

5.05% YTL Power %
International Berhad
03.05.2027 (AA1) 1,500,000 1,532,237 1,575,631 1.88
2,000,000 2,113,328 2,135,530 2.55
TOTAL UNQUOTED
FIXED INCOME 44,800,000 45,969,979 47,785,107 57.03
SECURITIES

ACCUMULATED 1,815,128
UNREALISED GAIN ON
FINANCIAL ASSETS AT
FAIR VALUE THROUGH
PROFIT OR LOSS

FAIR VALUE OF 47,785,107
FINANCIAL ASSETS AT
FAIR VALUE THROUGH
PROFIT OR LOSS

Client Services : 03-2778 1000 53

Eastspring Investments Asia Select Income Fund

ii. Unquoted fixed income securities

Name of issuer Nominal Aggregate Fair Percentage
value cost value as at of net asset
5.45% Affin Bank Berhad 31.12.2018
07.02.2022 (A1) RM RM value of
RM the Fund
5.03% Affin Bank Berhad
20.09.2022 (A1) %

5.20% Ambank Islamic 4,000,000 4,129,454 4,163,837 4.59
Berhad 15.03.2022 (AA3) 2,000,000 2,028,388 2,040,888 2.25
1,000,000 1,014,959 1,031,539 1.14
4.92% BGSM
Management Sdn Berhad 1,800,000 1,833,039 1,858,823 2.05
29.08.2025 (AA3)
800,000 811,614 814,316 0.90
5.25% BGSM 500,000 507,899 508,596 0.56
Management Sdn Berhad
24.12.2020 (AA3) 5,000,000 5,073,534 5,111,234 5.63

5.25% Bumitama Agri Ltd 2,000,000 2,028,992 2,035,247 2.24
18.03.2019 (AA3) 3,500,000 3,500,351 3,509,892 3.87

4.88% CIMB Group 100,000 114,028 114,392 0.13
Holdings Berhad
13.09.2029 (AA) 2,500,000 2,716,610 2,741,503 3.02

4.50% Hong Leong
Assurance Berhad
07.02.2020 (AA3)

4.50% Hong Leong Bank
Berhad 24.06.2019 (AA1)

9.30% Jimah Energy
Ventures Sdn Berhad
12.11.2021 (AA3)

9.05% Jimah Energy
Ventures Sdn Berhad
12.11.2020 (AA3)

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ii. Unquoted fixed income securities (continued)

Name of issuer Nominal Aggregate Fair Percentage
value cost value as at of net asset
5.10% Krung Thai Bank 31.12.2018
Public Company Limited RM RM value of
06.07.2020 (AA2) RM the Fund

5.24% Lebuhraya Duke %
Fasa 3 Sdn Berhad
23.08.2027 (AA-IS) 3,000,000 3,075,033 3,095,703 3.41
4,200,000 4,409,728 4,386,046 4.83
8.20% Mukah Power 1,300,000 1,336,581 1,351,527 1.49
Generation Sdn Berhad 2,000,000 2,037,842 2,057,334 2.27
27.12.2019 (AA2 (S)) 1,000,000 1,019,601 1,050,254 1.16
2,000,000 2,048,461 2,097,936 2.31
4.75% Northern Gateway 2,000,000 2,033,385 2,029,700 2.24
Infrastructure Sdn Berhad 2,000,000 2,014,055 2,025,295 2.23
29.08.2022 (AA1) 2,000,000 2,048,575 2,056,503 2.27
2,000,000 2,016,951 2,098,411 2.31
4.93% Perbadanan
Tabung Pendidikan Tinggi
Nasional 17.08.2032 (NR)

4.90% Perbadanan
Tabung Pendidikan Tinggi
Nasional 21.01.2033 (NR)

5.11% Quantum Solar
Park (Semenanjung) Sdn
Bhd 06.04.2022 (AA-IS)

4.75% RHB Bank Berhad
08.05.2020 (AA3)

4.99% RHB Bank Berhad
08.07.2019 (AA3)

5.32% Sarawak Energy
Berhad 03.12.2032 (AA1)

Client Services : 03-2778 1000 55

Eastspring Investments Asia Select Income Fund

ii. Unquoted fixed income securities (continued)

Name of issuer Nominal Aggregate Fair Percentage
value cost value as at of net asset
5.09% Southern Power 31.12.2018
Generation Sdn Bhd RM RM value of
30.04.2029 (AA-IS) RM the Fund

5.02% Tanjung Bin Energy %
Issuer Berhad 15.09.2020
(AA3) 1,000,000 1,008,646 1,043,756 1.15
0.56
4.58% Telekom Malaysia 500,000 512,265 512,691 3.59
Berhad 03.09.2027 1.69
(AAA) 3,200,000 3,260,438 3,259,655

4.65% Toyota Capital 1,500,000 1,532,687 1,538,267
Malaysia Sdn Berhad
24.01.2023 (AAA (S))

TOTAL UNQUOTED 50,900,000 52,113,116 52,533,345 57.89
FIXED INCOME
SECURITIES

ACCUMULATED 420,229
UNREALISED GAIN ON
FINANCIAL ASSETS AT
FAIR VALUE THROUGH
PROFIT OR LOSS

FAIR VALUE OF 52,533,345
FINANCIAL ASSETS AT
FAIR VALUE THROUGH
PROFIT OR LOSS

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Interim Report

The effective weighted average interest rate of unquoted fixed income securities per
annum as at the date of the statement of financial position are as follows:

Unquoted fixed income securities 2019 2018
% %

3.97 4.70

7. CASH AND CASH EQUIVALENTS 2019 2018
RM RM
Bank balance with a licensed bank
Deposit with a licensed financial institution 636,622 41,717
3,380,282 5,270,491
4,016,904 5,312,208

The effective weighted average interest rate of short-term deposit with a licensed
financial institution per annum as at the date of the statement of financial position are
as follows:

Deposit with a licensed financial institution 2019 2018
% %

3.05 3.40

The deposit has an average maturity of 2 days (2018: 2 days).

Client Services : 03-2778 1000 57

Eastspring Investments Asia Select Income Fund

8. UNITS IN CIRCULATION 2019 2018
No. of units No. of units
At beginning of the financial period
Creation of units arising from applications 122,632,979 130,142,655

during the financial period 12,733,884 8,684,527
Cancellation of units during the financial period (28,015,882) (12,997,230)
At the end of the financial period 107,350,981 125,829,952

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Interim Report

9. TRANSACTIONS WITH BROKERS/DEALERS

Details of transactions with the brokers and dealers for the financial period ended
31 December are as follows:

Name of brokers/dealers Value of Percentage
trades of total
2019 trades
Eastspring Investments (Singapore) Limited# RM
Hong Leong Bank Berhad %
KAF Investment Bank Berhad
CIMB Bank Berhad 6,587,382 33.59
United Overseas Bank (Malaysia) Berhad 6,070,000 30.96
Malayan Banking Berhad 2,102,600 10.72
Maybank Islamic Berhad 2,000,000 10.20
1,032,600
1,000,000 5.27
5.10
815,600 4.16
19,608,182 100.00

2018 5,000,000 62.45
1,996,926 24.94
CIMB Bank Berhad 1,009,000 12.61
Eastspring Investments (Singapore) Limited# 8,005,926 100.00
Hong Leong Bank Berhad

# Included in transactions by the Fund are trades conducted with Eastspring
Investments (Singapore) Limited, a related party of the Manager amounting to
RM6,587,382 (2018: RM1,996,926).

There are no brokerage fees charged by the brokers/dealers.

Client Services : 03-2778 1000 59

Eastspring Investments Asia Select Income Fund

10. UNITS HELD BY THE MANAGER AND PARTIES RELATED TO THE MANAGER

The related parties of and their relationship with the Fund are as follows:

Related parties Relationship

Eastspring Investments Berhad The Manager
Eastspring Investments (Singapore) Related company of the Manager

Limited Collective investment scheme managed
by Eastspring Investments (Singapore)
Eastspring Investments-Dragon Peacock Limited
- Class D

Eastspring Investments Berhad 2019 2018
No. of units RM No. of units RM

1,243 970 1,243 897

The above units were transacted at the prevailing market price.

The units are held legally by the Manager and are within the prescribed limit allowed
by SC’s Guidelines on Unit Trust Funds. Other than the above, there were no units
held by the Directors or parties related to the Manager.

In addition to related party disclosures mentioned elsewhere in the financial
statements, set out below are other significant related party transactions. The
Manager is of the opinion that all transactions with the related party have been
entered into in the normal course of business at agreed terms between the related
parties.

60 Client Services : 03-2778 1000

Interim Report

Significant related parties transactions 2019 2018
RM RM
Purchase of units in collective investment scheme
managed by Eastspring Investments (Singapore) 1,028,927 1,996,926
Limited
5,558,455 -
Sale of units in collective investment scheme
managed by Eastspring Investments (Singapore)
Limited

11. MANAGEMENT EXPENSE RATIO (“MER”) 2019 2018
MER % %

0.81 0.81

MER is derived from the following calculation:

MER = (A + B + C + D + E) X 100
F

A = Management fee

B = Trustee fee

C = Audit fee

D = Tax agent fee

E = Other expenses

F = Average net asset value of the Fund calculated on a daily basis

The average net asset value of the Fund for the financial period calculated on a daily
basis is RM89,703,499 (2018: RM93,335,775).

Client Services : 03-2778 1000 61

Eastspring Investments Asia Select Income Fund

12. PORTFOLIO TURNOVER RATIO (“PTR”) 2019 2018
PTR (times) 0.11 0.05

PTR is derived from the following calculation:

(Total acquisitions for the financial period + total disposals for the financial period) ÷ 2
Average net asset value of the Fund for the financial period calculated on a daily basis

where:
total acquisitions for the financial period = RM7,164,127 (2018: RM7,996,926)
total disposals for the financial period = RM12,444,055 (2018: RM2,009,000)

13. APPROVAL OF FINANCIAL STATEMENTS

The financial statements have been approved for issue by the Manager on
17 February 2020.

62 Client Services : 03-2778 1000

CORPORATE DIRECTORY Interim Report

THE MANAGER TRUSTEE
NAME NAME
EASTSPRING INVESTMENTS BERHAD DEUTSCHE TRUSTEES MALAYSIA BERHAD

COMPANY NO. COMPANY NO.
200001028634 (531241-U) 763590-H

REGISTERED OFFICE REGISTERED OFFICE & BUSINESS OFFICE
Level 25, Menara Hong Leong Level 20, Menara IMC
No. 6, Jalan Damanlela No. 8, Jalan Sultan Ismail
Bukit Damansara 50250 Kuala Lumpur
50490 Kuala Lumpur
TELEPHONE NO.
BUSINESS OFFICE 603-2053 7522
Level 22, Menara Prudential
Persiaran TRX Barat FAX NO.
55188 Tun Razak Exchange 603-2053 7526
Kuala Lumpur
SALE & PURCHASE OF UNITS
TELEPHONE NO. Eastspring Investments Berhad
603-2778 3888 Level 22, Menara Prudential
Persiaran TRX Barat
FAX NO. 55188 Tun Razak Exchange
603-2789 7220 Kuala Lumpur

EMAIL TELEPHONE NO.
[email protected] 603-2778 1000

WEBSITE
www.eastspring.com/my

Client Services : 03-2778 1000 63

Eastspring Investments Asia Select Income Fund

BRANCHES
Petaling Jaya
Eastspring Investments Berhad
A-17-P1 & M
Block A, Jaya One
72A, Jalan Universiti
46200 Petaling Jaya, Selangor
TELEPHONE NO.
603-7948 1288
Kota Kinabalu
Eastspring Investments Berhad
Suite E3, 9th Floor
CPS Tower, Centre Point Sabah
No. 1, Jalan Centre Point
88000 Kota Kinabalu, Sabah
TELEPHONE NO.
6088-238 613
ENQUIRIES
CLIENT SERVICES
603-2778 1000

64 Client Services : 03-2778 1000



Eastspring Investments Asia Select Income Fund

Eastspring Investments Berhad 200001028634 (531241-U) Client Services
Level 22, Menara Prudential, Persiaran TRX Barat T: (603) 2778 1000
55188 Tun Razak Exchange, Kuala Lumpur [email protected]
T: (603) 2778 3888 F: (603) 2789 7220
eastspring.com/my

68 Client Services : 03-2778 1000