Eastspring Investments Asian High Yield Bond MY Fund

EASTSPRING INVESTMENTS
ASIAN HIGH YIELD BOND
MY FUND

QUARTERLY REPORT

FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019
TO 31 DECEMBER 2019



Dear Valued Investor,

Greetings from Eastspring Investments Berhad!
First and foremost, we would like to take this opportunity to thank you for
choosing to invest with Eastspring Investments Berhad.
We are pleased to enclose a copy of the Annual/Interim/Quarterly Fund
Reports of Eastspring Investments Berhad’s fund(s) for the reporting
period ended 31 December 2019.
You may also download these reports from our website at
www.eastspring.com/my
Should you require any assistance, please do not hesitate to contact our
Client Services at 03-2778 1000.

Yours sincerely,

Raymond Tang Chee Kin
Non-Independent, Executive Director and Chief Executive Officer

TABLE OF CONTENTS 1
5
Fund Information 8
Key Performance Data 13
Manager’s Report 13
Market Review 16
Rebates and Soft Commissions 17
Condensed Statement of Comprehensive Income 19
Condensed Statement of Financial Position 20
Condensed Statement of Changes in Net Assets Attributable to Unit Holders 21
Condensed Statement of Cash Flows 31
Notes to the Condensed Financial Statements
Corporate Directory

Quarterly Report

FUND INFORMATION

Name of Fund Eastspring Investments Asian High Yield Bond MY Fund
(the “Fund“)

Fund Category/ Wholesale (feeder fund)/income and growth
Type

Fund Objective The Fund aims to maximise income* and capital appreciation by
investing in the Eastspring Investments - Asian High Yield Bond
Performance Fund, which invests primarily^ in Asian high yield bonds.
Benchmark
* Income distributed will be reinvested into additional Units in
each Class unless Unit Holder opts for the distribution to be
paid out.

^ primarily means at least 66% of the Target Fund’s net asset
value.

J.P Morgan Asia Credit Index (“JACI”) Non-Investment Grade

Source: Eastspring Investments (Singapore) Limited and
Bloomberg.

Fund Income Subject to the availability of income, income distribution will be

Distribution Policy declared at least on a quarterly basis.

Client Services : 03-2778 1000 1

Eastspring Investments Asian High Yield Bond MY Fund

FUND INFORMATION (CONTINUED)

Breakdown of Unit As at 31 December 2019, the size of Eastspring Investments
Holdings by Size Asian High Yield Bond MY Fund for USD Class stood at 176,538
units, for AUD Hedged-class stood at 2,219,622 units and for
RM Hedged-class stood at 52,826,829 units.

Fund Size - USD Class
250

200

Units (’000) 150

100

50

0 Nov Dec
Oct 2019 2019
2019

Breakdown of Unit Holdings

Unit Holdings No. of No of %
Unit Units*
% (‘000)
Holders

5,000 units and below -- --
5,001 to 10,000 units -- --
10,001 to 50,000 units 1 33.33 31 18.69
50,001 to 500,000 units 2 66.67 133 81.31
500,001 units and above -- --
Total 3 100.00 164 100.00

* excludes units held by the Manager.

2 Client Services : 03-2778 1000

Quarterly Report

FUND INFORMATION (CONTINUED)

Breakdown of Unit Fund Size - AUD Hedged-class
Holdings by Size
(continued) 2,500
2,000
Units (’000) 1,500
1,000

500
0

Oct Nov Dec
2019 2019 2019

Breakdown of Unit Holdings

Unit Holdings No. of No of %
Unit Units*
% (‘000)
Holders

5,000 units and below -- - -
5,001 to 10,000 units -- - -
10,001 to 50,000 units 1 12.50 11 0.51
50,001 to 500,000 units 4 50.00 252 11.43
500,001 units and above 3 37.50 1,944 88.06
Total 8 100.00 2,207 100.00

* excludes units held by the Manager.

Client Services : 03-2778 1000 3

Eastspring Investments Asian High Yield Bond MY Fund

FUND INFORMATION (CONTINUED)

Breakdown of Unit Fund Size - RM Hedged-class
Holdings by Size
(continued) 60,000
50,000
Units (’000) 40,000
30,000
20,000
10,000

0

Oct Nov Dec
2019 2019 2019

Breakdown of Unit Holdings

Unit Holdings No. of No of %
Unit Units*
% (‘000)
Holders

5,000 units and below -- - -
5,001 to 10,000 units -- - -
10,001 to 50,000 units 2 22.22 32 0.06
50,001 to 500,000 units 2 22.22 219 0.41
500,001 units and above 5 55.56 52,573 99.53
Total 9 100.00 52,824 100.00

* excludes units held by the Manager.

4 Client Services : 03-2778 1000

Quarterly Report

KEY PERFORMANCE DATA

FOR THE FINANCIAL PERIOD ENDED

Category Third quarter Second quarter First quarter
from 1.10.2019 from 1.7.2019 from 1.4.2019
to 30.9.2019
to 31.12.2019 to 30.6.2019
(%)
(%) (%)

Collective investment scheme-Foreign 97.71 97.61 97.55
Derivatives 1.29 0.06 1.04
Cash and other assets 1.00 2.33 1.41
Total
100.00 100.00 100.00
Net Asset Value (NAV) (USD'000)
USD Class 81 98 135
AUD Hedged-class 751 488 513
RM Hedged-class 6,471 6,043 5,489

Units In Circulation (Units '000) 177 215 290
USD Class 2,220 1,529 1,535
AUD Hedged-class 52,827 50,713 45,124
RM Hedged-class
0.4615 0.4587 0.4668
Net Asset Value Per Unit (USD) 0.3382 0.3189 0.3340
USD Class 0.1225 0.1192 0.1217
AUD Hedged-class
RM Hedged-class 0.4615 0.4587 0.4668
0.4812 0.4730 0.4761
Net Asset Value Per Unit in 0.5008 0.4987 0.5024
respective currencies#
USD Class 0.4615 0.4590 0.4668
AUD Hedged-class 0.4812 0.4799 0.4770
RM Hedged-class 0.5008 0.4989 0.5024

Highest Net Asset Value Per Unit 0.4609 0.4587 0.4668
in respective currencies# 0.4724 0.4692 0.4302
USD Class 0.5003 0.4987 0.5024
AUD Hedged-class
RM Hedged-class

Lowest Net Asset Value Per Unit
in respective currencies#
USD Class
AUD Hedged-class
RM Hedged-class

Client Services : 03-2778 1000 5

Eastspring Investments Asian High Yield Bond MY Fund

KEY PERFORMANCE DATA (CONTINUED)

Third quarter Second quarter First quarter
from 1.4.2019
Category from 1.10.2019 from 1.7.2019
to 30.6.2019
Capital Growth (%) to 31.12.2019 to 30.9.2019
USD Class
AUD Hedged-class 0.61 (1.74) (0.15)
RM Hedged-class
1.73 (0.65) 1.00
Income Distribution (%)
USD Class 0.42 (0.74) 0.82
AUD Hedged-class
RM Hedged-class 1.02 1.02 0.01

Total Return (%) 1.00 1.00 -
USD Class
AUD Hedged-class 1.02 1.01 -
RM Hedged-class
2.14 (0.24) 1.35
Gross Distribution Per Unit in 1.73 (0.65) 1.00
respective currencies 1.95 (0.24) 1.32
USD Class
AUD Hedged-class 0.0070 0.0070 0.0070
RM Hedged-class - - -

Net Distribution Per Unit in 0.0076 0.0025 0.0025
respective currencies
USD Class 0.0070 0.0070 0.0070
AUD Hedged-class - - -
RM Hedged-class
0.0076 0.0025 0.0025
Management Expense Ratio
(MER) (%) - - -

Portfolio Turnover Ratio - - -
(PTR) (times)

# Figures shown as ex-distribution.

6 Client Services : 03-2778 1000

Quarterly Report

KEY PERFORMANCE DATA (CONTINUED)

1 year 3 years Since launch
1.1.2019 to 1.1.2017 to 16.6.2015 to
31.12.2019 31.12.2019
31.12.2019
(%) (%)
(%)

Average total return 11.41 3.66 4.03
USD Class 9.89 2.93 4.07
AUD Hedged-class 3.83 4.95
RM Hedged-class 11.07

Year ended 1.4.2018 to 1.4.2017 to 1.4.2016 to Since launch
31.3.2019 31.3.2018 31.3.2017 16.6.2015 to
Annual total return
USD Class (%) (%) (%) 31.3.2016
AUD Hedged-class
RM Hedged-class (%)

4.85 (0.05) 9.36 0.90
2.50
3.99 (0.27) 10.26 2.94

4.85 0.49 11.14

Source: The above total return of the Fund was sourced from Lipper for Investment Management.

Bases of calculation and assumptions made in calculating returns:

Percentage growth = NAVt -1
NAV0

NAVt = NAV at the end of the period
NAV0 = NAV at the beginning of the period
Performance annualised = (1 + Percentage Growth)1/n - 1

Adjusted for unit split and distribution paid out
for the period

n = Number of years

Past performance is not necessarily indicative of future performance and unit
prices and investment returns may go down, as well as up.

Client Services : 03-2778 1000 7

Eastspring Investments Asian High Yield Bond MY Fund

MANAGER’S REPORT

Fund Performance USD Class

Since inception, the Fund recorded a return of 19.43%,
underperforming the benchmark return of 30.27% by 10.84%.

During the period under review, the Fund registered a return of

2.14%, underperforming the benchmark return of 2.43% by

0.29%. Eastspring Investments Asian High Yield Bond MY Fund - USD Class
- Since Inception (SI) Return Vs Benchmark

40% 40%

30% 30%

SI % Change 20% 20%

10% 10%

0% 0%

-10% Oct Feb Jun Oct Feb Jun Oct Jan May Sep Jan May Sep -10%
2015 2016 2016 2016 2017 2017 2017 2018 2018 2018 2019 2019 2019
Jul Dec
2015 2019

Eastspring Investments Asian High Yield Bond MY Fund - USD Class Benchmark

AUD Hedged-class

Since inception, the Fund recorded a return of 19.64%,
underperforming the benchmark return of 31.77% by 12.13%.

During the period under review, the Fund registered a return of
1.73%, underperforming the benchmark return of 2.12% by
0.39%.

Eastspring Investments Asian High Yield Bond MY Fund - AUD Hedged-class 40%
-Since Inception (SI) Return Vs Benchmark

40%

30% 30%

SI % Change 20% 20%

10% 10%

0% 0%

-10% Nov Mar Jul Nov Mar Jul Dec Apr Aug Dec Apr Aug -10%
2015 2016 2016 2016 2017 2017 2017 2018 2018 2018 2019 2019
Jul Dec
2015 2019

Eastspring Investments Asian High Yield Bond MY Fund - AUD Hedged-class Benchmark

8 Client Services : 03-2778 1000

Quarterly Report

MANAGER’S REPORT (CONTINUED)

Fund Performance RM Hedged-class
(continued)
Since inception, the Fund recorded a return of 24.21%,
underperforming the benchmark return of 38.87% by 14.66%.

During the period under review, the Fund registered a return of
1.95%, underperforming the benchmark return of 2.57% by 0.62%.

Eastspring Investments Asian High Yield Bond MY Fund - RM Hedged-class
-Since Inception (SI) Return Vs Benchmark

50% 50%

40% 40%

SI % Change 30% 30%

20% 20%

10% 10%

0% 0%

-10% Nov Mar Jul Nov Mar Jul Dec Apr Aug Dec Apr Aug -10%
2015 2016 2016 2016 2017 2017 2017 2018 2018 2018 2019 2019
Jul Dec
2015 2019

Eastspring Investments Asian High Yield Bond MY Fund - RM Hedged-class Benchmark

Gross of fees, the Fund outperformed the benchmark moderately. The
Fund’s credit positioning contributed positively to relative returns, with
its overweight in China real estate sector being a key contributor. Also
adding to gains were positive credit selection in the China diversified
and consumer sectors. Non-benchmark allocations to Asian local
currencies, as well as selected emerging markets, also contributed
positively. Conversely, the Fund’s duration positioning via US Treasuries
detracted from relative performance, given the rise in longer-term
US interest rates. The underweight to Hong Kong financials and
Malaysian quasi-sovereigns also hampered the Fund’s performance, as
did the overweight to the Indonesian metals & mining sector.

The performance is calculated on NAV-to-NAV basis with
gross income or dividend reinvested.

Benchmark: J.P Morgan Asia Credit Index (“JACI”)
Non-Investment Grade

Source: Lipper for Investment Management, Eastspring
Investments (Singapore) Limited and Bloomberg, as at
31 December 2019.

Past performance of the Fund is not necessarily indicative of
its future performance.

Client Services : 03-2778 1000 9

Eastspring Investments Asian High Yield Bond MY Fund

MANAGER’S REPORT (CONTINUED)

Analysis of Fund For the financial period ended 31 December 2019:
Performance
Total
Currency Income Capital Total Return of
Class Return Return* Return Benchmark

(%) (%) (%) (%)

USD Class 1.02 0.61 2.14 2.43
AUD Hedged-class 1.00 1.73 1.73 2.12
RM Hedged-class 1.02 0.42 1.95 2.57

* Capital return components (NAV per unit to NAV per unit).

Distribution/ USD Class AUD- RM-
Unit Split 27-Dec-19 Hedged Hedged

Ex-Date (USD) class class
Distribution Per Unit 27-Dec-19 27-Dec-19

(AUD) (RM)

Gross 0.0070 0.0000 0.0076
Net 0.0070 0.0000 0.0076
Unit split
Nil Nil Nil

Impact on NAV arising from distribution for the financial period
ended 31 December 2019.

Ex-Date USD Class AUD- RM-
27-Dec-19 Hedged Hedged

(USD class class
per Unit) 27-Dec-19 27-Dec-19

(AUD (RM
per Unit) per Unit)

Net Asset Value 0.4679 0.0000 0.5082
before distribution (0.0070) 0.0000 (0.0076)

Less: distribution 0.4609 0.0000 0.5006
Net Asset Value

after distribution

No unit split were declared for the financial period ended
31 December 2019.

10 Client Services : 03-2778 1000

Quarterly Report

MANAGER’S REPORT (CONTINUED)

Investment In the near term, risk appetite is expected to remain supported.
Strategy During Trade concerns have eased following the announcement of a
the Period Under Phase 1 trade deal between the US and China, while the global
Review economy appears to be seeing green shoots of recovery. Despite
signs of a bottoming in economic data, monetary policies are
likely to remain accommodative given the still-soft growth
momentum and benign inflation.

The more positive macroeconomic backdrop has fuelled a chase
for yield as corroborated by the strong bid for new issuances in
the Asian credit market. Nevertheless, we continue to emphasise
the importance of credit selection in this environment. The fragile
growth conditions and divergent funding access can still result
in idiosyncratic stresses going forward. The Chinese authorities’
drive to rein in excessive leverage through tighter financial
regulations could thus still impact weaker companies’ ability to
refinance.

That said, we see the broad fundamentals of Asian USD credit
issuers to be largely intact and a global growth stabilisation
should prevent an excessive deterioration of fundamentals from
here. In addition, we expect the market to provide a good source
of carry, especially with interest rates likely to remain range-
bound.

Client Services : 03-2778 1000 11

Eastspring Investments Asian High Yield Bond MY Fund

MANAGER’S REPORT (CONTINUED)

Asset Allocation 31-Dec 30-Sep
2019 2019
Asset Allocation Changes
(%) (%) (%)

Collective Investment 97.71 97.61 0.10
Scheme-Foreign
1.29 0.06 1.23
Derivatives 1.00 2.33 (1.33)
Cash and other assets

Asset Allocation as at 31 December 2019

Derivatives Collective Investment
1.29% Scheme-Foreign
97.71%
Cash and other assets
1.00%

State of Affairs of There were no significant changes in asset allocation of the Fund
the Fund for the period under review.

There have been neither significant change to the state of affairs
of the Fund nor any circumstances that materially affect any
interests of the unit holders during the period under review.

12 Client Services : 03-2778 1000

Quarterly Report

MARKET REVIEW

The Asian USD-denominated high-yield bond market strengthened over the fourth quarter,
with the JPMorgan Asia Credit – Non-Investment Grade Index posting a return of 2.43%
as tighter credit spreads and accrual income compensated for mixed performance in US
risk-free rates. This rounded up a year of strong returns for Asian high-yield markets, with
the index rising by 12.76% in 2019.

Over the quarter, core government bond yields ended mostly higher. While doubts over a
trade deal had persisted at first, progress in trade talks eased such worries and lifted risk
appetite as the quarter progressed. Concurrently, US economic data remained healthy,
which supported the Federal Reserve‘s decision (“Fed”) to stay its hand following a well-
telegraphed rate cut in October. By the quarter-end, Fed officials sounded increasingly
less dovish and prepped markets for a pause in the rate-cut cycle in 2020. The UST 10-
year yield rose 25 bps to 1.9% over the quarter. Across the Atlantic, risk sentiment also
improved as a Brexit deal appeared a distinct possibility after Prime Minister Boris Johnson
and the ruling Conservative Party won the UK parliamentary elections.

In Asia, credit markets were further lifted by green shoots of economic recovery and good
investor demand for bonds that led to tighter credit spreads. Given the improvement
in risk sentiment, high-yield credits outperformed investment-grade ones significantly,
especially high-yield sovereigns and corporates. Among high-yield sovereigns, Pakistan was
a notable outperformer but Sri Lanka underperformed.

Among high-yield corporates, Chinese real estate credits outperformed amid resilient
property sales growth. Paring gains towards the year-end, however, were idiosyncratic
news of defaults of certain Chinese local government-owned entities. Weaker
performance was also seen among Thai and Indonesian corporates.

REBATES AND SOFT COMMISSIONS

During the period under review, the Manager and its delegates (if any) did not receive any
soft commissions from stockbrokers.

Client Services : 03-2778 1000 13

Eastspring Investments Asian High Yield Bond MY Fund
This page is intentionally left blank

14 Client Services : 03-2778 1000

Quarterly Report

EASTSPRING INVESTMENTS
ASIAN HIGH YIELD BOND MY FUND

CONDENSED FINANCIAL STATEMENTS

FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019

Client Services : 03-2778 1000 15

Eastspring Investments Asian High Yield Bond MY Fund

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019

Note Financial Financial
period from period from
1.10.2019 to 1.10.2018 to

31.12.2019 31.12.2018
USD
USD
89,158
INVESTMENT INCOME/(LOSS) 3 124,208
Dividend income (118,774)
Net gain/(loss) on financial assets at fair value 30,329 (13,428)
161,043 373
through profit or loss (42,671)
Net gain/(loss) on forward foreign currency contracts 281
Net foreign currency exchange gain 315,861 (621)
(1,202)
EXPENSES 1 (4,746)
Management fee 2 (1,198) (504)
Trustee fee (252)
Audit fee (502) (2,682)
Tax agent fee (251) (5,261)
Other expenses (2,776)
(9,473)

PROFIT/(LOSS) BEFORE TAXATION 306,388 (47,932)

TAXATION --

PROFIT/(LOSS) AFTER TAXATION AND 306,388 (47,932)
TOTAL COMPREHENSIVE PROFIT/(LOSS)

Profit/(loss) after taxation is made up of the 184,195 (20,182)
followings: 122,193 (27,750)
Realised amount
Unrealised amount 306,388 (47,932)

The accompanying notes form an integral part of the condensed financial statements. 
16 Client Services : 03-2778 1000

Quarterly Report

CONDENSED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2019

Note 31.12.2019 31.3.2019
USD USD

ASSETS 3 7,135,350 5,695,215
Financial assets at fair value through
4 94,526 1,256
profit or loss
Forward foreign currency contracts 111,828 47,980
Amount due from Manager
Cash and cash equivalents 5 105,449 138,453
TOTAL ASSETS
7,447,153 5,882,904
LIABILITIES
Amount due to Manager 35,626 36,178
Accrued management fee 1,607 185
Amount due to Trustee 404 405
Other payables and accruals 9,846
Distribution payable 6,634
Forward foreign currency contracts 97,083 3,285
- 13,788

TOTAL LIABILITIES (EXCLUDING NET ASSETS 144,566 60,475
ATTRIBUTABLE TO UNIT HOLDERS)

NET ASSET VALUE OF THE FUND 7,302,587 5,822,429

NET ASSETS ATTRIBUTABLE TO UNIT 7,302,587 5,822,429
HOLDERS

REPRESENTED BY: 81,467 87,281
FAIR VALUE OF OUTSTANDING UNITS 750,611 544,983
6,470,509 5,190,165
USD Class
AUD Hedged-class
RM Hedged-class

NUMBER OF UNITS IN CIRCULATION 6 176,538 186,709
(UNITS)
USD Class 6 2,219,622 1,628,301
AUD Hedged-class
RM Hedged-class 6 52,826,829 42,496,888

Client Services : 03-2778 1000 17

Eastspring Investments Asian High Yield Bond MY Fund

CONDENSED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2019 (CONTINUED)

Note 31.12.2019 31.3.2019
USD USD

NET ASSET VALUE PER UNIT IN USD 0.4615 0.4675
(EX-DISTRIBUTION) 0.3382 0.3347
USD Class 0.1225 0.1221
AUD Hedged-class
RM Hedged-class

NET ASSET VALUE PER UNIT IN 0.4615 0.4675
RESPECTIVE CURRENCIES 0.4812 0.4713
(EX-DISTRIBUTION) 0.5008 0.4983
USD Class
AUD Hedged-class
RM Hedged-class

The accompanying notes form an integral part of the condensed financial statements.
18 Client Services : 03-2778 1000

Quarterly Report

CONDENSED STATEMENT OF CHANGES
IN NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS

FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019

Note 31.12.2019 31.12.2018
USD USD

Balance as at beginning of the financial period 6,629,388 5,215,901

Movement in unit holders’ contribution: 41,285 -
Creation of units from applications 243,579 74,695
USD Class 282,017 563,707
AUD Hedged-class
RM Hedged-class

Creation of units from distribution 1,307 1,202
USD Class 92,228 -
RM Hedged-class

Cancellation of units (60,289) (75,983)
USD Class
AUD Hedged-class (17,144) (190,416)
RM Hedged-class (119,089) (322,456)

Increase in net assets attributable to 7,093,282 5,266,650
unit holders during the financial period

Total comprehensive income/(loss) 306,388 (47,932)
for the financial period

Distribution for the financial period: 9 (1,307) (1,202)
USD Class (Gross/Net: 0.0070 sen)
RM Hedged-class (Gross/Net: 0.0076 sen) 9 (95,776) -

NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS 7,302,587 5,217,516
AS AT THE END OF THE FINANCIAL PERIOD

The accompanying notes form an integral part of the condensed financial statements.
Client Services : 03-2778 1000 19

Eastspring Investments Asian High Yield Bond MY Fund

CONDENSED STATEMENT OF CASH FLOWS

FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019

Note Financial Financial
period from period from
1.10.2019 to 1.10.2018 to

31.12.2019 31.12.2018

USD USD

CASH FLOWS FROM OPERATING ACTIVITIES - 206,466
Proceeds from sale of investments
Realised gain on forward foreign currency 69,460 -
(634,208) (384,158)
contracts
Purchase of investments 124,208 89,158
Dividend income received (4,602) (607)
Management fee paid (1,184)
Trustee fee paid (2,278) (1,189)
Payment for other fees and expenses (2,363)
Net cash used in operating activities (448,604) (92,693)

CASH FLOWS FROM FINANCING ACTIVITIES 575,733 632,820
Proceeds from units created (177,265) (569,033)
Payments for cancellation of units
Distribution paid (1,098) (1,587)
Net cash generated from financing activities 397,370 62,200

NET DECREASE IN CASH (51,234) (30,493)
AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS AT THE 156,683 219,480
BEGINNING OF THE FINANCIAL PERIOD

CASH AND CASH EQUIVALENTS AT THE

END OF THE FINANCIAL PERIOD 5 105,449 188,987

The accompanying notes form an integral part of the condensed financial statements.
20 Client Services : 03-2778 1000

Quarterly Report

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2019 TO 31 DECEMBER 2019

1. MANAGEMENT FEE

In accordance with the Deed, the Manager is entitled to a management fee at a rate
of not exceeding 3.00% 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 1.25% per annum of the net asset value of the Fund, calculated on daily basis.

As the Fund invests in collective investment scheme, any management fee charged by
Eastspring Investments Asian High Yield Bond Fund-Class ADM will be fully refunded.
The rebate of management fees amounting to USD17,161 (31.12.2018: USD16,610)
is calculated on the net asset value of the Target Fund on a daily basis. In accordance
with the SC Guidelines in Unlisted Capital Market Products under the Lodge and Launch
Framework, there is no double charging of management fee to the Fund.

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

2. 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 or its equivalent in the base currency (excluding foreign
custodian fees and charges, if applicable).

For the financial period ended 31 December 2019, the Trustee fee is recognised at a
rate of 0.06% per annum on the net asset value of the Fund, subject to minimum of
RM18,000 per annum or its equivalent in the base currency (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 21

Eastspring Investments Asian High Yield Bond MY Fund

3. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

2019 2018
USD USD

Designated at fair value through profit or loss: 7,135,350 4,977,368
Collective investment scheme

Net gain/(loss) on financial assets at fair value through - (31,973)
profit or loss: 30,329 (86,801)
Realised loss on disposals
30,329 (118,774)
Change in unrealised fair value gain/(loss)

Quantity Aggregate Fair value Percentage
Units cost as at of net

USD 31.12.2019 asset value
of the
USD Fund

%

Eastspring Investments- 792,025 7,433,880 7,135,350 97.71
Asian High Yield
Bond Fund - (298,530)
Class ADM 7,135,350

ACCUMULATED
UNREALISED LOSS
ON FINANCIAL ASSETS
AT FAIR VALUE
THROUGH PROFIT OR
LOSS

FAIR VALUE OF
FINANCIAL ASSETS AT
FAIR VALUE THROUGH
PROFIT OR LOSS

22 Client Services : 03-2778 1000

Quarterly Report

Quantity Aggregate Fair value Percentage
Units cost as at of net

USD 31.12.2018 asset value
of the
USD Fund

%

Eastspring Investments- 577,622 5,512,158 4,977,368 95.40
Asian High Yield
Bond Fund -
Class ADM

ACCUMULATED (534,790)
UNREALISED LOSS
ON FINANCIAL ASSETS
AT FAIR VALUE
THROUGH PROFIT OR
LOSS

FAIR VALUE OF 4,977,368
FINANCIAL ASSETS AT
FAIR VALUE THROUGH
PROFIT OR LOSS

The investment objective of Eastspring Investments-Asian High Yield Bond Fund (“Target
Fund”) is to invests in a diversified portfolio consisting primarily of high yield fixed
income or debt securities issued by Asian entities or their subsidiaries. This Target Fund’s
portfolio primarily consists of securities denominated in US dollars as well as the various
Asian currencies and aims to maximise total returns through investing primarily in fixed
income or debt securities rated below BBB-.

A minimum of 95% of its net asset value will be invested in the Target Fund. However,
the asset allocation may be reduced due to creation of units at the point of reporting
date. The ratio will be adjusted back to the minimum level after the reporting period.

Client Services : 03-2778 1000 23

Eastspring Investments Asian High Yield Bond MY Fund

4. FORWARD FOREIGN CURRENCY CONTRACTS

As at the date of statement of financial position, there are 3 (31.12.2018: 2) forward
foreign currency contracts outstanding. The notional principal amount of the
outstanding forward foreign currency contracts amounted to USD94,526 (receivable)
(31.12.2018: USD40,914 (receivable)). The forward foreign currency contracts entered
into during the financial period were for hedging against the currency exposure arising
from the creation and cancellation of units denominated in AUD and MYR. As the
Fund has not adopted hedge accounting during the financial period, the change in
the fair value of the forward foreign currency contract is recognised immediately in the
statement of comprehensive income.

5. CASH AND CASH EQUIVALENTS 2019 2018
Bank balances USD USD
188,987
105,449
2018
The currency exposure profile of cash and cash equivalents is as follows: USD
3,264
MYR 2019 185,723
USD USD

3,023
102,426

24 Client Services : 03-2778 1000

Quarterly Report

6. UNITS IN CIRCULATION

USD Class AUD RM 2019
No. of units Hedged- Hedged-
Total
214,640 class class No. of units

88,606 No. of units No. of units

At the beginning 2,837 1,529,256 50,712,860 52,456,756
of the financial (129,545)
period 176,538 742,669 2,337,434 3,168,709

Creation of units - 762,918 765,755
from applications
during the financial (52,303) (986,383) (1,168,231)
period 2,219,622 52,826,829 55,222,989

Creation of units
from distribution
during the financial
period

Cancellation of units
during the
financial period

At the end of the
financial period

Client Services : 03-2778 1000 25

Eastspring Investments Asian High Yield Bond MY Fund

USD Class AUD RM 2018
No. of units Hedged- Hedged-
Total
348,528 class class No. of units

- No. of units No. of units

At the beginning 2,708 2,239,608 38,021,330 40,609,466
of the financial (169,047)
period 182,189 238,505 5,002,880 5,241,385

Creation of units - - 2,708
from applications
during the financial (607,183) (2,879,300) (3,655,530)
period 1,870,930 40,144,910 42,198,029

Creation of units
from distribution
during the financial
period

Cancellation of units
during the
financial period

At the end of the
financial period

26 Client Services : 03-2778 1000

Quarterly Report

7. TRANSACTIONS WITH ISSUER

Details of transactions with the Issuer of Eastspring Investments-Asian High Yield Bond
Fund are as follows:

Value Percentage
of trades of total trades

USD %

1.10.2019 to 31.12.2019 634,208 100.00
Eastspring Investments (Singapore) Limited#

1.10.2018 to 31.12.2018 662,729 100.00
Eastspring Investments (Singapore) Limited#

# Included in transactions by the Fund are trades conducted on normal terms in the
investment management and stockbroking industry with Eastspring Investments
(Singapore) Limited, a related company to the Manager. The Manager is of the
opinion that all transactions with the related company have been entered into in the
normal course of business at agreed terms between the related parties.

Client Services : 03-2778 1000 27

Eastspring Investments Asian High Yield Bond MY Fund

8. 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) Limited
Related company of the Manager
Eastspring Investments-Asian High Yield
Bond Fund (Class ADM) Collective investment scheme
managed by Eastspring Investments
(Singapore) Limited

31.12.2019

No. USD No. AUD No. RM
of units Class of units Hedged- of units Hedged-

class class

Eastspring 12,939 5,972* 12,431 5,982* 2,480 1,242*
Investments
Berhad

31.12.2018

No. USD No. AUD No. RM
of units Class of units Hedged- of units Hedged-

class class

Eastspring 12,069 5,360* 12,431 5,444* 2,384 1,118*
Investments
Berhad

* In respective currencies

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 Unlisted Capital Market Products under the Lodge and Launch
Framework. Other than the above, there were no units held by the Directors or parties
related to the Manager.

28 Client Services : 03-2778 1000

Quarterly Report

Significant related party transactions

Purchase of collective investment scheme 2019 2018
managed by Eastspring Investments USD USD
(Singapore) Limited
634,208 384,158
Sales of collective investment scheme
managed by Eastspring Investments - 278,571
(Singapore) Limited

All transactions with the related company have been entered into in the normal course
of business at agreed terms between the related party.

Client Services : 03-2778 1000 29

Eastspring Investments Asian High Yield Bond MY Fund

9. DISTRIBUTION

3-months 3-months
financial financial
period ended period ended
31.12.2019 31.12.2018

USD USD

Distribution to unit holders is from the 105,641 1,284
following sources: (8,558) (82)
Prior years’ income 97,083
Non-taxable income 1,202
Less: Expenses
0.0070 0.0067
Gross/net distributions per unit in 0.0076 -
respective currencies
USD Class (USD) 27 December 2019 28 December 2018
RM Hedged-class (RM)

Ex-date

Gross distribution is derived using total income less total expenses. Gross distribution per
unit is derived from gross realised income less expenses divided by the number of units
in circulation, while net distribution for unit is derived from gross realised income less
expenses and taxation divided by the number of units in circulation.

30 Client Services : 03-2778 1000

CORPORATE DIRECTORY Quarterly 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 31

Eastspring Investments Asian High Yield Bond MY 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

32 Client Services : 03-2778 1000



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