AFFIN HWANG BOND FUND€¦ · AFFIN HWANG BOND FUND Interim Report and Unaudited Financial Statements For the 6 Months Financial Period Ended 31 October 2018 ... Size of holdings

1

AFFIN HWANG BOND FUND Interim Report and Unaudited Financial Statements For the 6 Months Financial Period Ended 31 October 2018

Contents Page

FUND INFORMATION .................................................................................................................... 2

FUND PERFORMANCE DATA ....................................................................................................... 3

MANAGER’S REPORT ................................................................................................................... 5

TRUSTEE’S REPORT .................................................................................................................... 9

STATEMENT OF COMPREHENSIVE INCOME ........................................................................... 10

STATEMENT OF FINANCIAL POSITION ..................................................................................... 11

STATEMENT OF CHANGES IN EQUITY ..................................................................................... 12

STATEMENT OF CASH FLOWS .................................................................................................. 13

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ............................................................ 14

NOTES TO THE FINANCIAL STATEMENTS ............................................................................... 21

STATEMENT BY THE MANAGER ............................................................................................... 45

DIRECTORY OF SALES OFFICE ................................................................................................ 46

2

FUND INFORMATION

Fund Name Affin Hwang Bond Fund

Fund Type Income & Growth

Fund Category Bond

Investment Objective To achieve steady capital growth at a rate better than the average deposit rates over a long-term period by investing in a wide portfolio of authorized securities and other investments

Benchmark 12-month fixed deposit rate quoted by Maybank

Distribution Policy Distribution (if any) is on annual basis and will be subject to the availability of income

BREAKDOWN OF UNITHOLDERS BY SIZE RM CLASS AS AT 31 OCTOBER 2018

Size of holdings (units)

No. of unitholders No. of units held * (‘000)

5,000 and below 13,761 14,994

5,001 to 10,000 1,681 11,656

10,001 to 50,000 77 1,284

50,001 to 500,000 27 3,137

500,001 and above 17 195,878

Total 15,563 226,949

* Note: Excluding Manager’s stock

3

FUND PERFORMANCE DATA

Category As at

31 Oct 2018 (%)

As at 31 Oct 2017

(%)

As at 31 Oct 2016

(%)

Portfolio composition

Unquoted fixed income securities – local - Bonds 75.27 91.79 94.41 Cash & cash equivalent 24.73 8.21 5.59

Total 100.00 100.00 100.00

Total NAV (RM’million) 131.795 51.907 38.612 NAV per Unit (RM) 0.5806 0.5830 0.5935 Unit in Circulation (million) 226.982 89.030 65.059 Highest NAV 0.5820 0.5875 0.5949 Lowest NAV 0.5702 0.5807 0.5737 Return of the Fund (%)

iii 2.97 1.78 3.27

- Capital Growth (%)i 1.20 0.05 3.27

- Income Distribution (%)ii 1.75 1.73 Nil

Gross Distribution per Unit (sen) 1.00 1.00 Nil Net Distribution per Unit (sen) 1.00 1.00 Nil Management Expense Ratio (%)

1 0.54 0.60 0.61

Portfolio Turnover Ratio (times)2

0.72 0.31 0.93 Basis of calculation and assumption made in calculating the returns:- The performance figures are a comparison of the growth/decline in NAV for the stipulated period taking into account all the distribution payable (if any) during the stipulated period. An illustration of the above would be as follow:- Capital return = NAV per Unit end / NAV per Unit begin – 1 Income return = Income distribution per Unit / NAV per Unit ex-date Total return = (1+Capital return) x (1+Income return) – 1 Capital Return

i = (NAV per Unit @ 31/10/18 ÷ NAV per Unit @ 30/4/18* - 1) x 100

= (0.5806 ÷ 0.5737 – 1) x 100 = 1.20% Income Return @ ex-date = {Income distribution per Unit ÷ NAV per Unit on ex- date} + 1 = {0.0050 ÷ 0.5702 @ 13/06/18} + 1 = 1.0088 = {0.0050 ÷ 0.5771 @ 18/09/18} + 1 = 1.0087 Total Income Return

ii = {Income distribution per Unit ÷ NAV per Unit on ex-date} x 100

= {1.0088 x 1.0087} – 1 x 100 = 1.75%

Return of the Fund

iii = [{(1 + Capital Return) x (1 + Income Return)} – 1] x 100

= [{(1 + 1.20%) x (1 + 1.75%)} – 1] x 100 = 2.97% *Source: AmanahRaya Trustees Berhad

1The Fund’s MER was slightly lower due to higher average net asset value of the Fund for the financial period. 2 The Fund’s PTR increased over the period under review due to higher average sum of total acquisition and disposal for the financial period.

4

Table 1: Performance of the Fund

6 Months (1/5/18 - 31/10/18)

1 Year (1/11/17 - 31/10/18)

3 Years (1/11/15 - 31/10/18)

5 Years (1/11/13 - 31/10/18)

Since Commencement

(14/12/01 - 31/10/18)

Fund 2.97% 4.90% 15.20% 21.63% 91.56%

Benchmark 1.67% 3.29% 9.95% 17.21% 75.05%

Outperformance / (Underperformance) 1.30% 1.61% 5.25% 4.42% 16.51%

Source of Benchmark: Maybank

Table 2: Average Total Return

1 Year (1/11/17 - 31/10/18)

3 Years (1/11/15 - 31/10/18)

5 Years (1/11/13 - 31/10/18)

Since Commencement

(14/12/01 - 31/10/18)

Fund 4.90% 4.82% 3.99% 3.92%

Benchmark 3.29% 3.21% 3.22% 3.37%

Outperformance / (Underperformance) 1.61% 1.61% 0.77% 0.55%


Table 3: Annual Total Return

FYE 2018 (01/5/17 - 30/4/18)

FYE 2017 (01/5/14 - 30/4/15)

FYE 2016 (01/5/14 - 30/4/15)

FYE 2015 (01/5/14 - 30/4/15)

FYE 2014 (01/5/13 - 30/4/14)

Fund 3.69% 5.04% 3.54% 4.19% 1.18%

Benchmark 3.16% 3.14% 3.31% 3.27% 3.15%

Outperformance / (Underperformance) 0.52% 1.90% 0.23% 0.92% (1.97%)


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

5

MANAGER’S REPORT Performance Review For the period 1 May 2018 to 31 October 2018 the Fund registered a 2.97% return. The Net Asset Value (NAV) per unit of the Fund as at 31 October 2018 was RM0.5806 while the NAV per unit as at 30 April 2018 was RM0.5737. The benchmark return for the period under review was 1.67%. The Fund thus outperformed the Benchmark by 1.30%. (See Table 1 for performance of the Fund and Figure 1 for movement of the Fund versus the Benchmark respectively). Figure 1: Movement of the Fund versus the Benchmark

“This information is prepared by Affin Hwang Asset Management Berhad (AFFINHWANGAM) for information purposes only. Past earnings or the fund’s distribution record is not a guarantee or reflection of the fund’s future earnings/future distributions. Investors are advised that unit prices, distributions payable and investment returns may go down as well as up.” Benchmark: 12-month fixed deposit rate quoted by Maybank Income Distribution / Unit Split Affin Hwang Asset Management Berhad recently declared a gross distribution of RM0.0100 per Unit for investors of the Affin Hwang Bond Fund over the period under review. The Net Asset Value per unit prior and subsequent to the distribution was as follows:-

Cum Date Ex-Date Cum-distribution (RM)

Distribution per Unit (RM)

Ex-distribution (RM)

12 Jun 2018 13 Jun 2018 0.5751 0.0050 0.5702

18 Sep 2018 19 Sep 2018 0.5820 0.0050 0.5771

No unit splits were declared for the financial period ended 31 October 2018.

0

10

20

30

40

50

60

70

80

90

100

Dec-01 Aug-03 Apr-05 Dec-06 Sep-08 May-10 Jan-12 Sep-13 May-15 Jan-17 Oct-18

Benchmark

Affin Hwang Bond

Fund

6

Asset Allocation For a snapshot of the Fund’s asset mix during the period under review, please refer to Figure 2. Figure 2: Asset allocation of the Fund 31 Oct 2018 31 Oct 2017 31 Oct 2016

(%) (%) (%)

Unquoted fixed income securities – local 75.27 91.79 94.41

Cash & cash equivalent 24.73 8.21 5.59

Total 100.00 100.00 100.00

As at 31 October 2018, the Fund’s exposure into the fixed income securities stood at 75.27% of the Fund’s NAV while the balance was held in cash and cash equivalent. During the period under review, the manager had raised cash substantially and reduced its local bonds’ allocation to 75.27%, 16.52 percentage point lower than a year ago. Strategies Employed The Manager maintained a relatively short portfolio duration – at approximately 3.9 years – in light of tighter

liquidity conditions due to the US Federal Reserve’s rate-hiking bias, as well as the gradual normalisation of

monetary policy by other major central banks. Emphasis was placed on Investment Grade names, while

cash level of the Fund was kept at a high level to better navigate through heightening market volatility.

Market Review In what has been a rather uninspiring year, the period ending October 2018 provided little to no comfort as

global financial markets continued to endure the bumpy path laid out. Geopolitical tension – in particular the

ongoing trade duel between US and China – remained on centre stage; inflicting further uncertainty and

volatility across markets.

Despite initially hinting at possible trade negotiations, positive developments took a sudden swerve and

escalated into an outright confrontation. Markets witnessed a fresh round of tariffs kicked-in on 24

September 2018, where the Trump administration imposed a 10.0% duty on US$200 billion worth of Chinese

imports. Washington had initially toyed with the idea of imposing a 25.0% tariff rate, but that was

subsequently postponed to 2019. China swiftly retaliated by imposing tariffs of their own on US$60 billion

worth of US goods ranging between 5.0-10.0%. Prior to this, the two global powerhouses have already

slapped tariffs on US$50 billion worth of goods.

Amid the trade dispute, the US Federal Reserve followed the script to deliver its third 25-basis-point rate hike

for the year in end-September 2018; effectively bringing up the US benchmark interest rate to a new range of

2.00-2.25%. Interestingly, the central bank ceased usage of the word “accommodative” in its policy statement, therefore suggesting that its monetary policy is reaching a more neutral rate. Despite so, the

central bank continued to emphasise on its optimism regarding the US economy, and retained its guidance

for another rate hike in 2018 and 3 more in 2019. Federal Reserve officials see the long-run fund rate at

2.90% after peaking at 3.40% in 2020.

While initially having under-priced the Federal Reserve’s guided rate-hike trajectory, markets swiftly

recalibrated expectations in the following month – which saw yields for the 10-year Treasury benchmark

surged to a high of 3.23% in early October; its highest level since 2011. The erratic spike came in the wake

of a couple of upbeat reports on (1) US private sector payrolls and (2) services sector, coupled with rosy

remarks by Federal Reserve Chairman Jerome Powell. Yields for the 10-year benchmark stood at 3.14% as

of end-October.

On the Asia front, uncertainties on global trade still dictated sentiment across Asia, as a sharp depreciation

of the Chinese RMB exerted a further drag on regional currencies. In addition, Asian credits also had a softer

7

showing amid the spike in US Treasury yields, as well as prevailing uncertainties revolving global trade and

Brexit that have dampened sentiment across the region. HY names, particularly in the Chinese property

space, bore the brunt of the sell-off. The cautious sentiment was also reflected in the secondary market,

where credit spreads have widened markedly. And given the heavy supplies expected to roll into the market,

most managers and investors have opted to stay side-lined awaiting for yields to correct further for better

entry.

Back home, the 14th General Election (“GE14”) concluded with jaw-dropping results that stunned political

pundits and pollsters. In a watershed election, the Pakatan Harapan coalition won GE14 by wrestling

traditionally held strongholds by taking over states such as Johor, Kedah, and Melaka. Markets were well-

behaved in the initial stages of the power transition, though it soon suffered a jolt in volatility following a

swathe of reforms and deleveraging efforts including spending cuts to pare down the country’s debts which exceeded MYR1 trillion according to Finance Minister YB Lim Guan Eng. Nevertheless, the nation’s healthy current account surplus have somewhat shielded the local scene as well as the currency – which closed the

period under review at MYR4.18 against the greenback.

Despite consecutive months of fatigue in foreign fund flows behind: (1) position trimming activities after

GE14, as well as the (2) broader EM weakness, the MGS and GII space saw collectively inflow of MYR5

billion for the month of October 2018; as foreign share for MGS+GII rose to 25.0% from the 24.1% seen in

September 2018. In addition, healthy domestic liquidity has provided much support for the local bond scene.

Yields for the 10-year MGS benchmark held steady at around the 4.15% range as of end-October. On the

other hand, the corporate segment has remained quite strong as well; buoyed by the lack of supply as well

as domestic pick-up.

Investment Outlook Caution remains a key theme for markets in this final quarter of 2018. Emerging economies – including those

in Asia – will likely remain challenged by: (1) the ongoing trade dispute between US and China, as well as (2)

increasing policy divergence between US and the rest of the world. These factors, if prolonged, could further

derail buying activities and currencies in the region; especially for nations with twin deficits and high external

debts.

Domestically, markets will look to further clarity from the new government on policy direction of its fiscal and

debt management. This includes covering a revenue shortfall from GST collection that has been replaced by

the narrower SST in September 2018. Nonetheless, proactive measures taken thus far to cut operating

expenditure including salary deduction for ministers, plugging of leakages and revamps across ministries

could stem the bleeding. While change appears to be painful for the short-term, we are optimistic that a solid

framework of governance, coupled with forthcoming clarity on policies, should eventually bring foreign

interest back to the local scene. On monetary policy, Bank Negara Malaysia is expected to keep rates steady

for the rest of 2018 given the relatively subdued inflation.

In the wake of rising volatility, the Manager will be employing a more cautious stance, and will continue to hold onto high cash levels to better navigate the roads ahead. The Fund will be maintaining a relatively shorter duration in light of the current rate-hiking cycle by the US Federal Reserve; with preference towards Investment Grade issuances. Nevertheless, the Manager intends to remain nimble in response to market developments.

8

State of Affairs of the Fund There is neither any significant change to the state affairs of the Fund nor any circumstances that materially affect any interests of the unit holders during the period under review. Soft Commissions received from Brokers As per the requirements of the Securities Commission’s Guidelines on Unit Trust Funds and Guidelines on Compliance Function for Fund Management Companies, soft commissions received from brokers/dealers may be retained by the management company only if the :– (i) goods and services provided are of demonstrable benefit to Unit holders of the Fund; and (ii) goods and services are in the form of research and advisory services that assists in the decision making process. During the financial period under review, the management company had received on behalf of the Fund, soft commissions in the form of research materials, data and quotation services, investment-related publications, market data feed and industry benchmarking agencies which are of demonstrable benefit to Unitholders of the Fund.

9

TRUSTEE’S REPORT For the Six Months Financial Period Ended 31 October 2018.

To the Unit Holders of AFFIN HWANG BOND FUND We, AMANAHRAYA TRUSTEES BERHAD, have acted as Trustee of AFFIN HWANG BOND FUND for the six months financial period ended 31 October 2018. In our opinion, AFFIN HWANG ASSET MANAGEMENT BERHAD, the Manager, has operated and managed AFFIN HWANG BOND FUND in accordance with the limitations imposed on the investment powers of the management company under the Deed, securities laws and the applicable Guidelines on Unit Trust Funds for the six month financial period ended 31 October 2018. We are of the opinion that: (a) Valuation and pricing is carried out in accordance with the Deed and any regulatory requirement;

and (b) Creation and cancellation of units are carried out in accordance with the Deed and other regulatory

requirement; and

(c) The distribution of returns made by AFFIN HWANG BOND FUND as declared by the Manager is in accordance with the investment objective of AFFIN HWANG BOND FUND.

Yours faithfully AMANAHRAYA TRUSTEES BERHAD ZAINUDIN BIN SUHAIMI General Manager Kuala Lumpur, Malaysia 13 December 2018

10

STATEMENT OF COMPREHENSIVE INCOME FOR THE 6 MONTHS FINANCIAL PERIOD ENDED 31 OCTOBER 2018 6 months 6 months financial financial period ended period ended Note 31.10.2018 31.10.2017 RM RM INVESTMENT INCOME Interest income 4 2,536,145 1,241,074 Net gain/(loss) on financial assets at fair value through profit or loss 9 1,220,504 (9,374) ───────── ───────── 3,756,649 1,231,700 ───────── ───────── EXPENSES Management fee 5 (493,962) (258,482) Trustee fee 6 (41,892) (20,903) Auditors' remuneration (4,033) (5,077) Tax agent's fee (3,166) (3,166) Other expenses (17,490) (25,934) ───────── ───────── (560,543) (313,562) ───────── ───────── NET PROFIT BEFORE TAXATION 3,196,106 918,138 TAXATION 7 - - ───────── ───────── NET PROFIT AFTER TAXATION AND TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL PERIOD 3,196,106 918,138 ═════════ ═════════ Net profit after taxation is made up of the following: Realised amount 2,435,642 1,019,308 Unrealised amount 760,464 (101,170) ───────── ───────── 3,196,106 918,138 ═════════ ═════════ The accompanying summary of significant accounting policies and notes to the financial statements form an integral part of these financial statements.

11

STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2018 Note 2018 2017 RM RM ASSETS Financial assets at fair value through profit or loss 9 99,209,316 47,646,415 Cash and cash equivalents 10 31,064,680 2,352,144 Amount due from dealer 1,522,372 1,925,049 Amount due from Manager - creation of units 128,828 61,225 ───────── ───────── TOTAL ASSETS 131,925,196 51,984,833 ───────── ───────── LIABILITIES Amount due to Manager - management fee 104,295 44,427 - cancellation of units - - Amount due to Trustee 8,344 3,554 Auditors’ remuneration 5,623 15,147 Tax agent’s fee 12,046 11,346 Other payable and accruals 328 3,529 ───────── ───────── TOTAL LIABILITIES 130,636 78,003 ───────── ───────── NET ASSET VALUE OF THE FUND 131,794,560 51,906,830 ═════════ ═════════ EQUITY Unitholders’ capital 125,087,239 45,785,405 Retained earnings 6,707,321 6,121,425 ───────── ───────── NET ASSETS ATTRIBUTABLE TO UNITHOLDERS 131,794,560 51,906,830 ═════════ ═════════ NUMBER OF UNITS IN CIRCULATION 11 226,982,000 89,030,000 ═════════ ═════════ NET ASSET VALUE PER UNIT (RM) 0.5806 0.5830 ═════════ ═════════ The accompanying summary of significant accounting policies and notes to the financial statements form an integral part of these financial statements.

12

STATEMENT OF CHANGES IN EQUITY FOR THE 6 MONTHS FINANCIAL PERIOD ENDED 31 OCTOBER 2018 Unitholders’ Retained capital earnings Total RM RM RM Balance as at 1 May 2018 59,485,835 5,283,380 64,769,215 Total comprehensive income for the financial period - 3,196,106 3,196,106 Distribution (Note 8) - (1,772,165) (1,772,165) Movement in unitholders’ capital: Creation of units arising from applications 68,658,952 - 68,658,952 Creation of units arising from distributions 1,772,165 - 1,772,165 Cancellation of units (4,829,713) - (4,829,713) ───────── ───────── ───────── Balance as at 31 October 2018 125,087,239 6,707,321 131,794,560 ═════════ ═════════ ═════════ Balance as at 1 May 2017 45,368,025 6,086,367 51,454,392 Total comprehensive income for the financial period - 918,138 918,138 Distribution (Note 8) - (883,080) (883,080) Movement in unitholders’ capital: Creation of units arising from applications 5,934,650 - 5,934,650 Creation of units arising from distributions 883,080 - 883,080 Cancellation of units (6,400,350) - (6,400,350) ───────── ───────── ───────── Balance as at 31 October 2018 45,785,405 6,121,425 51,906,830 ═════════ ═════════ ═════════ The accompanying summary of significant accounting policies and notes to the financial statements form an integral part of these financial statements.

13

STATEMENT OF CASH FLOWS FOR THE 6 MONTHS FINANCIAL PERIOD ENDED 31 OCTOBER 2018 6 months 6 months financial financial period ended period ended Note 31.10.2018 31.10.2017 RM RM CASH FLOWS FROM OPERATING ACTIVITIES Proceeds from sale of investments 55,233,978 14,147,702 Purchase of investments (94,000,120) (18,481,700) Interest received 2,260,499 1,118,703 Management fee paid (442,756) (256,282) Trustee’s fee paid (37,795) (20,727) Payment for other fees and expenses (28,707) (25,531) ───────── ───────── Net cash used in operating activities (37,014,901) (3,517,835) ───────── ───────── CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from creation of units 68,765,773 5,880,988 Payments for cancellation of units (4,906,508) (6,400,350) ───────── ───────── Net cash generated from/ (used in) financing activities 63,859,265 (519,362) ───────── ───────── NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 26,844,364 (4,037,197) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FINANCIAL PERIOD 4,220,316 6,389,341 ───────── ───────── CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL PERIOD 10 31,064,680 2,352,144 ═════════ ═════════ The accompanying summary of significant accounting policies and notes to the financial statements form an integral part of these financial statements.

14

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR THE 6 MONTHS FINANCIAL PERIOD ENDED 31 OCTOBER 2018

The following accounting policies have been used in dealing with items which are considered material in relation to the financial statements.

A BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention except as disclosed in summary of significant accounting policies and comply with Malaysian Financial Reporting Standards (“MFRS”) and International Financial Reporting Standards (“IFRS”). The preparation of financial statements in conformity with MFRS requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported financial period. It also requires the Manager to exercise their judgment in the process of applying the Fund’s accounting policies. Although these est imates and judgment are based on the Manager’s best knowledge of current events and actions, actual results may differ. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note K. (a) Standards, amendments to published standards and interpretations that are effective:

The Fund has applied the following amendments for the first time for the financial year beginning on 1 May 2018:

• Amendments to MFRS 107 ‘Statement of Cash Flows – Disclosure Initiative’.

The adoption of these amendments did not have any impact on the current year and is not likely to affect future years.

(b) The new standards and amendments to the published standards that are applicable to the fund but not

yet effective and have not been early adopted are as follows: (i) Financial year beginning on/after 1 May 2019 • MFRS 9 ‘Financial Instruments’ (effective from 1 January 2018) will replace

replace MFRS 139 "Financial Instruments: Recognition and Measurement”

MFRS 9 retains but simplifies the mixed measurement model in MFRS 139 and establishes three primary measurement categories for financial assets: amortised cost, fair value through profit or loss and fair value through other comprehensive income ("OCI"). The basis of classification depends on the entity's business model and the cash flow characteristics of the financial asset. Investments in equity instruments are always measured at fair value through profit or loss with an irrevocable option at inception to present changes in fair value in OCI (provided the instrument is not held for trading).

A debt instrument is measured at amortised cost only if the entity is holding it to collect contractual cash flows and the cash flows represent principal and interest.

15

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR THE 6 MONTHS FINANCIAL PERIOD ENDED 31 OCTOBER 2018 (CONTINUED) A BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONTINUED)

(b) The new standards and amendments to published standards that are applicable to the Fund but not yet effective and have not been early adopted are as follows: (continued) (i) Financial year beginning on/after 1 May 2019 (continued)

• For liabilities, the standard retains most of the MFRS 139 requirements. These include

amortised cost accounting for most financial liabilities, with bifurcation of embedded derivatives. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income rather than the income statement, unless this creates an accounting mismatch.

MFRS 9 introduces an expected credit loss model on impairment that replaces the incurred loss impairment model used in MFRS 139. The expected credit loss model is forward-looking and eliminates the need for a trigger event to have occurred before credit losses are recognised.

The Fund has reviewed its financial assets and liabilities and does not expect any impact from the adoption of the new standard on 1 May 2019.

There will be no impact on the Fund’s accounting for financial assets as the Fund’s equity investments currently measured at fair value through profit or loss will continue to be measured on the same basis under MFRS 9.

There will be no impact on the Fund’s accounting for financial liabilities as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss and the Fund does not have any such liabilities.

The new impairment model requires the recognition of impairment provisions based on expected credit losses (“ECL”) rather than only incurred credit losses as is the case under MFRS 139. It applies to financial assets classified at amortised cost. Based on the assessments undertaken to date, the Fund does not expect any loss allowance to be recognised upon adoption of MFRS 9.

B INCOME RECOGNITION

Interest income from short term deposit with a licensed financial institution and unquoted fixed income securities are recognised based on effective interest rate method on an accrual basis. For unquoted fixed income securities, realised gains and losses on sale of investments are accounted for as the difference between the net disposal proceeds and the carrying amount of investments, determined on cost adjusted for accretion of discount or amortisation of premium on investments.

16

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR THE 6 MONTHS FINANCIAL PERIOD ENDED 31 OCTOBER 2018 (CONTINUED)

C DISTRIBUTION A distribution to the Fund’s unitholders is accounted for as a deduction from realised reserve. A proposed distribution is recognised as a liability in the period in which it is approved by the Trustee of the Fund.

D TAXATION

Current tax expense is determined according to the Malaysian tax laws at the current rate based upon the taxable profit earned during the financial period.

E FUNCTIONAL AND PRESENTATION CURRENCY

Items included in the financial statements of the Fund are measured using the currency of the primary economic environment in which the Fund operates (the “functional currency”). The financial statements are presented in Ringgit Malaysia (“RM”), which is the Fund’s functional and presentation currency.

F FINANCIAL ASSETS AND FINANCIAL LIABILITIES

(i) Classification

The Fund designates its investment in unquoted fixed income securities as financial assets at fair value through profit or loss at inception. Financial assets are designated at fair value through profit or loss when they are managed and their performance evaluated on a fair value basis. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and have been included in current assets. The Fund’s loans and receivables comprise cash and cash equivalents, amount due from dealer and amount due from Manager. Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability. The Fund classifies amount due to Manager, amount due to Trustee, auditors’ remuneration, tax agent’s fee and other payables and accruals as other financial liabilities.

(ii) Recognition and measurement

Regular purchases and sales of financial assets are recognised on the trade-date – the date on which the Fund commits to purchase or sell the asset. Investments are initially recognised at fair value.

Financial liabilities, within the scope of MFRS 139, 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.

17


F FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONTINUED) (ii) Recognition and measurement (continued)

Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the Fund has transferred substantially all risks and rewards of ownership. Financial liabilities are derecognised when it is extinguished, i.e. when the obligation specified in the contract is discharged or cancelled or expired. Gains or losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’ category is presented in the statement of comprehensive income within ‘net gain or (loss) on financial assets at fair value through profit and loss’ in the financial period in which they arise. Unquoted fixed income securities denominated in Ringgit Malaysia are revalued on a daily basis based on fair value prices quoted by a bond pricing agency (“BPA”) registered with the SC as per the SC Guidelines on Unit Trust Funds. Where such quotation are not available or where the Manager is of the view that the price quoted by the BPA for a specific unquoted fixed income securities differs from the market price by more than 20 basis points, the Manager may use the market price, provided that the Manager: (i) records its basis for using non-BPA price; (ii) obtains necessary internal approvals to use the non-BPA price; and (iii) keeps an audit trail of all decisions and basis for adopting the market yield. Prior to 1 June 2018, the valuation of money market instruments is based on the amortisation cost. Effective 1 June 2018, the valuation of Ringgit denominated money market instruments will be done using the price quoted by a BPA registered with the SC. Deposit with licensed financial institutions is stated at cost plus accrued interest calculated on the effective interest method over the period from the date of placement to the date of maturity of the deposit. Loans and receivables and other financial liabilities are subsequently carried at amortised cost using the effective interest method.

(iii) Impairment

For assets carried at amortised cost, the Fund assesses at the end of the reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

18


F FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONTINUED) (iii) Impairment (continued)

The amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The asset’s carrying amount of the asset is reduced and the amount of the loss is recognised in profit or loss. If ‘loans and receivables’ or a ‘held to maturity investment’ has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

As a practical expedient, the Fund may measure impairment on the basis of an instrument’s fair value using an observable market price. If, in a subsequent financial period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor’s credit rating), the reversal of the previously recognised impairment loss is recognised in statement of comprehensive income. When an asset is uncollectible, it is written off against the related allowance account. Such assets are written off after all the necessary procedures have been completed and the amount of the loss has been determined.

G CASH AND CASH EQUIVALENTS For the purpose of statement of cash flows, cash and cash equivalents comprise cash and bank balances and deposit held in highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

19


H AMOUNTS DUE FROM/ (TO) DEALER Amounts due from and to dealer represent receivables for securities sold and payables for securities purchased that have been contracted for but not yet settled or delivered on the statement of financial position date respectively. These amounts are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment for amounts due from dealer. A provision for impairment of amount due from dealer is established when there is objective evidence that the Fund will not be able to collect all amounts due from the relevant dealer. Significant financial difficulties of the dealer, probability that the dealer will enter bankruptcy or financial re-organisation, and default in payments are considered indicators that the amount due from dealer is impaired. Once a financial asset or a group of similar financial assets has been written down as a result of an impairment loss, interest income is recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss.

The effective interest method is a method of calculating the amortised cost of a financial asset or financial liability and of allocating the interest income or loans expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts throughout the expected life of the financial instrument, or, when appropriate, a shorter period, to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate, the Fund estimates cash flows considering all contractual terms of the financial instrument but does not consider future credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts.

I UNITHOLDERS’ CAPITAL

The unit holders’ contributions to the Fund meet the criteria to be classified as equity instruments under MFRS 132 “Financial Instruments: Presentation”. Those criteria include: • the units entitle the holder to a proportionate share of the Fund’s net assets value; • the units are the most subordinated class and class features are identical; • there is no contractual obligations to deliver cash or another financial asset other than the obligation

on the Fund to repurchase; and • the total expected cash flows from the units over its life are based substantially on the profit or loss of

the Fund. The outstanding units are carried at the redemption amount that is payable at each financial period if unit holder exercises the right to put the unit back to the Fund. Units are created and cancelled at prices based on the Fund’s net asset value per unit at the time of creation or cancellation. The Fund’s net asset value per unit is calculated by dividing the net assets attributable to unit holders with the total number of outstanding units.

20


J SEGMENT REPORTING Operating segments are reported in a manner consistent with the internal reporting used by the chief operating decision-maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the strategic asset allocation committee of the manager that makes strategic decisions.

K CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS IN APPLYING ACCOUNTING POLICIES The Fund makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely equal the related actual results. To enhance the information content of the estimates, certain key variables that are anticipated to have material impact to the Funds’ results and financial position are tested for sensitivity to changes in the underlying parameters. Estimates and judgments are continually evaluated by the Manager and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In undertaking any of the Fund’s investment, the Manager will ensure that all assets of the Fund under management will be valued appropriately, that is at fair value and in compliance with the SC Guidelines on Unit Trust Funds.

21

NOTES TO THE FINANCIAL STATEMENTS FOR THE 6 MONTHS FINANCIAL PERIOD ENDED 31 OCTOBER 2018 1 INFORMATION ON THE FUND

The Unit Trust Fund was constituted under the name Affin Capital Bond (the “Fund”) pursuant to the execution of a Master Deed dated 3

December 2001, First Supplemental Deed dated 29 August 2002,

Second Supplemental Deed dated 23 August 2007, Third Supplemental Deed dated 8 September 2008, Fourth Supplemental Deed dated 13 October 2008 and Sixth Supplemental Deed dated 6 August 2015. The Fund changed its name from Affin Capital Fund to Affin Hwang Bond Fund as amended by the Fifth Supplemental Deed dated 22 July 2014 (the “Deeds”) entered into between Affin Hwang Asset Management Berhad (the “Manager”) and AmanahRaya Trustees Berhad (the “Trustee”). The objective of the Fund is to achieve steady capital growth at a rate better than the average deposits rates over a long term period by investing in a wide portfolio of authorised securities and other investments as defined under Clause 3(1) of the Deed. The principal activity of the Fund is to invest in “Authorised Investments” as defined under Clause 1 of the Deed, which includes unlisted corporate bonds and money market instruments. The Fund commenced operations on 12 December 2002 and will continue its operations until terminated by the Trustee as provided under Clause 23 of the Deed. The Fund may invest in the following permitted investments subject to the following restrictions imposed or as may be amended from time to time by the SC and/or the relevant authorities and/or the Deed: (i) Listed securities; (ii) Unlisted securities including, without limitation, securities that have been approved by relevant authorities

for the listing of and quotation for such securities; (iii) Fixed deposits with financial institutions; (iv) Money market instruments; (v) Government bonds, treasury bills and other Government approved or guaranteed bonds; (vi) Debentures including private debt securities and bonds; (vii) Units/shares in collective investment schemes, both local and foreign which are in line with the objective

of the Trust; and (viii) Any other form of investments as may be permitted by the Securities Commissions from time to time that

is in line with the Trust’s objectives. The Manager is a company incorporated in Malaysia. The principal activities of the Manager are establishment and management of unit trust funds and private retirement schemes as well as providing fund management services to private clients.

The financial statements were authorised for issue by the Manager on 13 December 2018.

22

NOTES TO THE FINANCIAL STATEMENTS FOR THE 6 MONTHS FINANCIAL PERIOD ENDED 31 OCTOBER 2018 (CONTINUED) 2 FINANCIAL INSTRUMENTS, RISK MANAGEMENT OBJECTIVES AND POLICIES

Financial instruments of the Fund are as follows:

Financial assets at fair Loans and value through Note receivables profit or loss Total RM RM RM 2018

Unquoted fixed income securities 9 - 99,209,316 99,209,316 Cash and cash equivalents 10 31,064,680 - 31,064,680 Amount due from dealer 1,522,372 - 1,522,372 Amount due from manager - creation of units 128,828 - 128,828 ───────── ───────── ───────── Total 32,715,880 99,209,316 131,925,196 ═════════ ═════════ ═════════ 2017

Unquoted fixed income securities 9 - 47,646,415 47,646,415 Cash and cash equivalents 10 2,352,144 - 2,352,144 Amount due from dealer 1,925,049 - 1,925,049 Amount due from manager - creation of units 61,225 - 61,225 ───────── ───────── ───────── Total 4,338,418 47,646,415 51,984,833 ═════════ ═════════ ═════════

All current liabilities are financial liabilities which are carried at amortised cost.

The Fund is exposed to a variety of risks which include market risk (including interest rate risk and price risk), credit risk, liquidity risk and capital risk.

Financial risk management is carried out through internal control processes adopted by the Manager and adherence to the investment restrictions as stipulated by the SC’s Guidelines on Unit Trust Funds. Market risk (a) Price risk Price risk arises mainly from the uncertainty about future prices of investments. It represents the

potential loss the Fund might suffer through holding market positions in the face of price movements. The Manager manages the risk of unfavourable changes in prices by continuous monitoring of the performance and risk profile of the investment portfolio.

23

NOTES TO THE FINANCIAL STATEMENTS FOR THE 6 MONTHS FINANCIAL PERIOD ENDED 31 OCTOBER 2018 (CONTINUED)

2 FINANCIAL INSTRUMENTS, RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)

Market risk (continued) (a) Price risk (continued) The Fund’s overall exposure to price risk was as follows:

2018 2017 RM RM

Unquoted investment Unquoted fixed income securities designated at fair value through profit or loss * 99,209,316 47,646,415

═════════ ═════════ * Include interest receivable of RM983,353 (2017: RM577,888).

The following table summarises the sensitivity of the Fund’s profit after taxation and net asset value (“NAV”) to price risk movements. The analysis is based on the assumptions that the market price increased by 5% and decreased by 5% with all other variables held constant. This represents management’s best estimate of a reasonable shift in unquoted investments, having regard to the historical volatility of the prices.

Impact on profit after % Change in price Market value tax/NAV RM RM 2018 -5% 93,314,665 (4,911,298) 0% 98,225,963 - +5% 103,137,261 4,911,298 ═════════ ═════════ 2017 -5% 44,715,101 (2,353,426) 0% 47,068,527 - +5% 49,421,953 2,353,426 ═════════ ═════════

24



Market risk (b) Interest rate risk In general, when interest rates rise, unquoted fixed income securities prices will tend to fall and vice

versa. Therefore, the NAV of the Fund may also tend to fall when interest rates rise or are expected to rise. However, investors should be aware that should the Fund hold an unquoted fixed income securities till maturity, such price fluctuations would dissipate as it approaches maturity, and thus the growth of the NAV shall not be affected at maturity. In order to mitigate interest rates exposure of the Fund, the Manager will manage the duration of the portfolio via shorter or longer tenured assets depending on the view of the future interest rate trend of the Manager, which is based on its continuous fundamental research and analysis.

This risk is crucial in an unquoted fixed income securities fund since unquoted fixed income

securities portfolio management depends on forecasting interest rate movements. Prices of unquoted fixed income securities move inversely to interest rate movements, therefore as interest rates rise, the prices of unquoted fixed income securities decrease and vice versa. Furthermore, unquoted fixed income securities with longer maturity and lower yield coupon rates are more susceptible to interest rate movements.

Investors should note that unquoted fixed income securities and money market instruments are

subject to interest rate fluctuations. Such investments may be subject to unanticipated rise in interest rates which may impair the ability of the issuers to make payments of interest income and principal, especially if the issuers are highly leveraged. An increase in interest rates may therefore increase the potential for default by an issuer.

The table below summarises the sensitivity of the Fund’s profit after taxation net asset value to

movements in prices of unquoted fixed income securities held by the Fund as a result of movement in interest rate. The analysis is based on the assumptions that the interest rate increased and decreased by 1% (100 basis points) with all other variables held constant.

% change in interest rate Impact on profit after tax/NAV

2018 2017 RM RM

+ 1% (267,764) (150,320) - 1% 269,012 152,012

═════════ ═════════

The Fund’s exposure to interest rate risk associated with deposit with a licensed financial institution is not material as the deposit are held on a short term basis.

25



Credit risk Credit risk refers to the ability of an issuer or counterparty to make timely payments of interest, principals and proceeds from realisation of investments. The Manager manages the credit risk by undertaking credit evaluation to minimise such risk. Credit risk arising from placements of deposits in licensed financial institutions is managed by ensuring that the Fund will only place deposits in reputable licensed financial institutions. For unquoted fixed income securities, the manager regularly reviews the rating assigned to the issuer so that necessary steps can be taken if the rating falls below those described by the Deeds and Securities Commission’s Guidelines on Unit Trust Funds. The settlement terms of the proceeds from the creation of unit receivable from the Manager are governed by the Securities Commission’s Guideline on Unit Trust Funds. The settlement terms of the amount due from dealer is governed by the relevant rules and regulations as described by the respective stock exchange. The following table sets out the credit risk concentrations and counterparties of the Fund:

Unquoted Cash fixed income and cash Other securities equivalents assets* Total RM RM RM RM

2018

Consumer goods -A1 12,305,073 - - 12,305,073 -AA2 1,270,611 - - 1,270,611 Financial -A1 11,339,116 - - 11,339,116 -A2 1,018,293 - - 1,018,293 -A3 10,317,781 - - 10,317,781 -AA- 3,210,935 - - 3,210,935 -AA1 4,587,856 2,001,342 - 6,589,198 -AA2 5,565,098 - - 5,565,098 -AA3 3,638,437 35,792 - 3,674,229 -AAA 505,937 23,018,051 - 23,018,051 -NR 7,568,610 6,009,495 - 13,578,105 Healthcare -AA- 2,018,975 - - 2,018,975 Industrial -AA 5,240,911 - - 5,240,911 -AA- 6,746,480 - - 6,746,480 -AA1 5,282,666 - - 5,282,666

26


2 FINANCIAL INSTRUMENTS, RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED) Credit risk (continued)

The following table sets out the credit risk concentrations and counterparties of the Fund: (continued)


2018

Oil and gas -AA- 2,077,459 - - 2,077,459 -AA+ - - 1,522,372 1,522,372 Telecommunication -AA+ 1,549,972 - - 1,549,972 Utilities -AA 1,534,742 - - 1,534,742 -AA- 7,702,196 - - 7,702,196 -AA1 3,110,882 - - 3,110,882 -AA3 1,072,601 - - 1,072,601 -AAA 1,544,685 - - 1,544,685 Other -NR - - 128,828 128,828 ───────── ───────── ───────── ───────── 99,209,316 31,064,680 1,651,200 131,925,196 ═════════ ═════════ ═════════ ═════════

27


2 FINANCIAL INSTRUMENTS, RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED) Credit risk (continued)

The following table sets out the credit risk concentrations and counterparties of the Fund: (continued)


2017 (continued)

Construction and Engineering - AA2 2,072,541 - - 2,072,541 - AA- 2,490,340 - - 2,490,340 Diversified holdings - AA3 1,134,610 - - 1,134,610 - AA2 1,020,494 - - 1,020,494

Finance - AAA 1,512,989 2,235,729 - 3,748,718 - AA3 3,568,253 116,415 - 3,684,668 - AA2 516,454 - - 516,454 - AA1 2,506,978 - - 2,506,978 - A1 2,092,709 - - 2,092,709 - NR 4,486,456 - - 4,486,456 Industrial Products - AA2 507,225 - - 507,225

Infrastructures and Utilities - AAA 1,540,626 - - 1,540,626 - AA3 1,075,431 - - 1,075,431 - AA1 3,114,632 - - 3,114,632 - AA+ 3,053,177 - - 3,053,177 - AA 1,528,892 - - 1,528,892 - AA- 7,016,566 - - 7,016,566

Plantation and Agriculture - AA 1,520,413 - - 1,520,413

Property and Real Estate - AA- 3,049,164 - - 3,049,164 - NR 1,513,977 - - 1,513,977 Sovereign - SOV 2,324,488 - 1,925,049 4,249,537

Other - NR - - 61,225 61,225

───────── ───────── ───────── ───────── 47,646,415 2,352,144 1,986,274 51,984,833 ═════════ ═════════ ═════════ ═════════

28

NOTES TO THE FINANCIAL STATEMENTS FOR THE 6 MONTHS FINANCIAL PERIOD ENDED 31 OCTOBER 2018 (CONTINUED) 2 FINANCIAL INSTRUMENTS, RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)

Credit risk (continued) The financial assets of the Fund are neither past due nor impaired. *Other assets consist of amount due from Manager and amount due from dealer. Liquidity risk Liquidity risk is the risk that the Fund will encounter difficulty in meeting its principal obligations. The Manager manages this risk by maintaining sufficient level of liquid assets to meet anticipated payments and cancellation of units by unitholders. Liquid assets comprise cash, deposits with licensed financial institutions and other investments which are capable of being converted into cash within 7 days. The table below analyses the Fund's financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. The amounts in the table below are the contractual undiscounted cash flows.

Between Within one month one month to one year Total RM RM RM 2018

Amount due to Manager: - management fee 104,295 - 104,295 Amount due to Trustee 8,344 - 8,344 Auditors’ remuneration - 5,623 5,623 Tax agent’s fee - 12,046 12,046

Other payables and accruals - 328 328 ───────── ───────── ───────── Total 112,639 17,997 130,636 ═════════ ═════════ ═════════ 2017

Amount due to Manager: - management fee 44,427 - 44,427 Amount due to Trustee 3,554 - 3,554 Auditors’ remuneration - 15,147 15,147 Tax agent’s fee - 11,346 11,346

Other payables and accruals 2,879 650 3,529 ───────── ───────── ───────── Total 50,860 27,143 78,003 ═════════ ═════════ ═════════

29


2 FINANCIAL INSTRUMENTS, RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED) Capital risk

The capital of the Fund is represented by equity consisting of unit holders’ capital and retained earnings. The

amount of equity can change significantly on a daily basis as the Fund is subject to daily subscriptions and redemptions at the discretion of unit holders. The Fund’s objective when managing capital is to safeguard the Fund’s ability to continue as a going concern in order to provide returns for unit holders and benefits for other stakeholders and to maintain a strong capital base to support the development of the investment activities of the Fund.

3 FAIR VALUE ESTIMATION

Financial instruments comprise financial assets and financial liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of financial assets traded in active markets (such as trading securities) is based on quoted market prices at the close of trading on the year end date. The Fund utilises the current bid price for financial assets which falls within the bid-ask spread. An active market is a market in which transactions for the asset take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of financial assets that are not traded in an active market is determined by using valuation techniques. (i) Fair value hierarchy

The table below analyses financial instruments carried at fair value. The different levels have been defined as follows: Quoted prices (unadjusted) in active market for identical assets or liabilities (Level 1) Inputs other than quoted prices included within level 1 that are observable for the asset or liability,

either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2) Inputs for the asset and liability that are not based on observable market data (that is,

unobservable inputs) (Level 3).

The level in the fair value hierarchy within which the fair value measurement is categorized in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. The determination of what constitutes ‘observable’ requires significant judgement by the Fund. The Fund considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

30

NOTES TO THE FINANCIAL STATEMENTS FOR THE 6 MONTHS FINANCIAL PERIOD ENDED 31 OCTOBER 2018 (CONTINUED) 3 FAIR VALUE ESTIMATION (CONTINUED)

(i) Fair value hierarchy (continued)

The following table analyses within the fair value hierarchy the Funds financial assets (by class) measured at fair value:

Level 1 Level 2 Level 3 Total RM RM RM RM 2018 Financial assets at fair value through profit or loss - unquoted fixed income securities - 99,209,316 - 99,209,316 ═════════ ═════════ ═════════ ═════════ 2017 Financial assets at fair value through profit or loss - unquoted fixed income securities - 47,646,415 - 47,646,415 ═════════ ═════════ ═════════ ═════════ Financial instruments that trade in markets that are considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within Level 2. These include investment-grade corporate bonds and commercial papers. As Level 2 instruments include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

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

4 INTEREST INCOME 6 months 6 months financial financial period ended period ended 31.10.2018 31.10.2017 RM RM Interest income from: - short term deposits 210,245 47,841 - unquoted fixed income securities 2,325,900 1,193,233 ───────── ───────── 2,536,145 1,241,074 ═════════ ═════════

31


5 MANAGEMENT FEE In accordance with the Prospectus, the Manager is entitled to a management at a rate not exceeding 1.5%

per annum of the NAV of the Fund, calculated on a daily basis. For the financial period ended 31 October 2018, the management fee is recognised at a rate of 1.0% (2017:

1.0%) per annum based on the NAV of the Fund, calculated on a daily basis. There will be no further liability to the Manager in respect of management fee other than amounts recognised

above.

6 TRUSTEE’S FEE In accordance with the Prospectus, the Trustee is entitled to an annual fee at a rate not exceeding 0.08% per

annum, calculated daily based on the NAV of the Fund. For the financial period ended 31 October 2018, the Trustee fee is recognised at a rate of 0.08% (2017:

0.08%) per annum based on the NAV of the Fund calculated on a daily basis. There will be no further liability to the Trustee in respect of Trustee fee other than the amounts recognised

above. 7 TAXATION

The numerical reconciliation between net profit 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 31.10.2018 31.10.2017 RM RM Net profit before taxation 3,196,106 918,138 ───────── ───────── Tax at Malaysian statutory tax rate of 24% (2017: 24%) 767,065 220,353 Tax effect of: Investment income not subject to tax (901,596) (295,608) Expenses not deductible for tax purposes 12,365 10,226 Restriction on tax deductible expenses for Unit Trust Funds 122,166 65,029

───────── ───────── Tax expense - - ═════════ ═════════

32

NOTES TO THE FINANCIAL STATEMENTS FOR THE 6 MONTHS FINANCIAL PERIOD ENDED 31 OCTOBER 2018 (CONTINUED) 8 DISTRIBUTION

Distributions to unitholders are from the following sources: 6 months 6 months financial financial period ended period ended 31.10.2018 31.10.2017 RM RM Previous financial year's realised income 1,772,165 883,08 Less: expenses - - ───────── ───────── Gross/net distribution amount 1,772,165 883,080

═════════ ═════════ Gross/net distribution per unit (sen) 1.00 1.00 ═════════ ═════════ Ex- date 13.6.2018 13.6.2017 19.9.2018 18.9.2017 ═════════ ═════════ Gross distribution per unit is derived from gross realised income less expenses, divided by the number of units in circulation, while net distribution per unit is derived from gross realised income less expenses and taxation divided by the number of units in circulation. Included in distribution for the financial period is an amount of RM1,772,165 (2017: RM883,080) made from previous financial year’s realised income.

33


9 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

2018 2017 RM RM Designated at fair value through profit or loss at inception:

- unquoted fixed income securities – local 99,209,316 47,646,415 ═════════ ═════════ Net gain/(loss) on financial assets at fair value through profit or loss

- realised gain on sale of investments 280,547 56,891 - unrealised gain/(loss) on changes in fair value 939,957 (66,265) ───────── ─────────

1,220,504 (9,374) ═════════ ═════════ a) Unquoted fixed income securities - local

(i) Unquoted fixed income securities – local as at 31 October 2018 are as follows:

Nominal Adjusted Fair Percentage Name of issuer value cost value of NAV RM RM RM % BOND 5.80% AFFIN Bank Bhd 31.07.2023 (A3) 10,000,000 10,147,781 10,317,781 7.83 5.72% Alliance Bank Malaysia Bhd 27.10.2020 (A2) 1,000,000 1,017,095 1,018,293 0.77 5.10% BEWG M Sdn Bhd 17.07.2020 (AA) 1,500,000 1,522,007 1,534,742 1.16 7.10% BGSM Management Sdn Bhd 28.12.2022 (AA3) 1,000,000 1,105,165 1,122,039 0.85 4.50% Bank Pembangunan Malaysia Bhd 04.11.2026 (AAA) 500,000 511,007 505,937 0.38 5.40% CIMB Group Holdings Bhd 23.10.2023 (A1) 2,500,000 2,503,329 2,549,179 1.93 5.80% CIMB Group Holdings Bhd 25.05.2021 (A1) 4,000,000 4,146,300 4,194,099 3.18 5.20% CIMB Thai Bank PCL 29.03.2023 (AA3) 2,000,000 2,009,687 2,011,387 1.53 5.05% Celcom Networks Sdn Bhd 29.08.2024 (AA+) 500,000 505,864 514,407 0.39 5.20% Celcom Networks Sdn Bhd 27.08.2027 (AA+) 500,000 508,311 518,804 0.39 5.27% Celcom Networks Sdn Bhd 27.08.2027 (AA+) 500,000 503,107 516,761 0.39 6.50% Eco World Capital Assets Bhd 12.08.2022 (NR) 1,000,000 1,014,068 1,015,368 0.77

34


9 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

a) Unquoted fixed income securities – local (continued)

(i) Unquoted fixed income securities – local as at 31 October 2018 are as follows: (continued)

Nominal Adjusted Fair Percentage Name of issuer value cost value of NAV RM RM RM % BOND 4.35% First Resources Ltd 05.06.2020 (AA2) 1,250,000 1,266,867 1,270,611 0.96 5.85% Jimah East Power Sdn Bhd 04.06.2031 (AA-) 1,000,000 1,102,764 1,114,041 0.85 5.10% Krung Thai Bank PLC 04.07.2020 (AA2) 500,000 508,244 511,344 0.39 5.95% Lebuhraya DUKE Fasa 3 Sdn Bhd 23.08.2034 (AA-) 1,000,000 1,032,098 1,084,211 0.82 6.23% Lebuhraya DUKE Fasa 3 Sdn Bhd 21.08.2037 (AA-) 1,000,000 1,034,276 1,100,168 0.84 6.80% Mah Sing Group Bhd 31.03.2020 (NR) 4,000,000 4,035,182 4,034,817 3.06 4.90% Malayan Banking Bhd 29.01.2019 (AA1) 500,000 506,496 506,814 0.38 4.60% Malaysia Building Society Bhd 10.12.2020 (AA1) 1,000,000 1,015,942 1,019,152 0.77 6.30% MEX II Sdn Bhd 29.04.2033 (AA-) 2,500,000 2,556,067 2,738,394 2.08 5.70% MMC Corp Berhad 24.03.2028 (AA-) 6,000,000 6,070,171 6,076,271 4.61 5.30% Northern Gateway Infra Sdn Bhd 29.8.2031 (AA1) 5,000,000 5,276,700 5,282,666 4.01 4.75% Orix Leasing Malaysia 14.2.2023 (AA2) 5,000,000 5,032,148 5,053,754 3.84 4.86% PTPTN 12.03.2032 (NR) 1,000,000 1,006,391 1,029,361 0.78 4.85% PTPTN 26.07.2041 (NR) 1,500,000 1,519,334 1,489,064 1.13 8.00% RHB Bank Bhd 31.03.2039 (A1) 3,000,000 3,062,467 3,067,326 2.33 4.82% RHB Bank Bhd 27.9.2022 (AA3) 500,000 502,311 505,011 0.38 4.55% Sabah Development Bank Bhd 08.8.2022 (AA1) 1,000,000 995,958 999,196 0.76 5.65% Sime Darby Bhd 24.03.2026 (AA) 5,000,000 5,117,336 5,240,911 3.98 5.04% Southern Power Generation SB 28.04.2028 (AA-) 500,000 500,069 511,884 0.39 5.70% Tanjung Bin Energy

Issuer Bhd 16.03.2027 (AA3) 1,000,000 1,063,607 1,072,601 0.81

35




(i) Unquoted fixed income securities – local as at 31 October 2018 are as follows: (continued)

Nominal Adjusted Fair Percentage Name of issuer value cost value of NAV RM RM RM % BOND 4.70% Tan Chong Motor Holdings Bhd 24.11.2021 (A1) 3,000,000 2,915,898 2,927,615 2.22 6.00% TF Varlik Kiralama AS 28.06.2019 (A1) 1,500,000 1,532,604 1,528,512 1.16 4.39% TNB Northern Energy Bhd 29.11.2029 (AAA) 500,000 503,568 498,351 0.38 5.10% TNB Western Energy Bhd 30.01.2025 (AAA) 1,000,000 1,034,636 1,046,334 0.79 4.85% UEM Edgenta Bhd 26.04.2022 (AA-) 2,000,000 2,001,595 2,018,975 1.53 5.00% UEM Sunrise Bhd 19.05.2023 (AA-) 1,000,000 1,030,601 1,026,556 0.78 6.20% UiTM Solar Power Sdn Bhd 27.04.2032 (AA-) 2,000,000 2,019,505 2,077,459 1.58 6.35% UMW Holdings Bhd 20.04.2028 (A1) 9,000,000 9,123,289 9,377,458 7.12 5.59% UniTapah Sdn Bhd 12.12.2024 (AA1) 400,000 427,435 431,179 0.33 5.69% UniTapah Sdn Bhd 12.12.2025 (AA1) 1,500,000 1,613,277 1,631,515 1.24 4.95% WCT Holdings Bhd 22.10.2021 (AA-) 1,500,000 1,496,503 1,502,716 1.14 5.17% WCT Holdings Bhd 23.10.2023 (AA-) 2,000,000 2,008,704 2,003,570 1.52 4.60% WCT Holdings Bhd 28.8.2020 (AA-) 500,000 489,536 501,800 0.38 5.05% YTL Power International Bhd 03.05.2027 (AA1) 3,000,000 3,080,004 3,110,882 2.36 ───────── ───────── ───────── ───────── Total unquoted fixed income securities – local 96,150,000 97,975,304 99,209,316 75.27 ═════════ ═════════ ═════════ Accumulated unrealised gain on unquoted fixed income securities – local 1,234,012 ───────── Total unquoted fixed income securities – local 99,209,316 ═════════

36




(ii) Unquoted fixed income securities – local as at 31 October 2017 are as follows: Nominal Adjusted Fair Percentage

Name of issuer value cost value of NAV RM RM RM %

BONDS

4.50% Bank Pembangunan Malaysia Bhd 04.11.2026 (AAA) 500,000 510,948 507,583 0.98 4.62% Bank Pembangunan Malaysia Bhd 02.03.2027 (AAA) 500,000 503,742 502,927 0.97 4.98% Bank Pembangunan Malaysia Bhd 02.03.2032 (AAA) 500,000 504,034 502,479 0.97 5.1% BEWG M Sdn Bhd 17.07.2020 (AA) 1,500,000 1,522,007 1,528,892 2.94 7.10% BGSM Management Sdn Bhd 28.12.2022 (AA3) 1,000,000 1,122,251 1,134,610 2.19 5.27% Celcom Networks Sdn Bhd 28.10.2026 (AA+) 500,000 503,323 509,129 0.98 5.05% Celcom Networks Sdn Bhd 29.08.2024 (AA+) 500,000 506,077 508,637 0.98 5.2% Celcom Networks Sdn Bhd 27.08.2027 (AA+) 500,000 508,644 510,699 0.98 5.80% CIMB Group Holdings Bhd Call: 25.05.2021 (A1) 2,000,000 2,066,083 2,092,709 4.03 4.27% DanaInfra Nasional Bhd 24.05.2024 (NR) 1,000,000 1,018,718 1,016,878 1.96 6.5% Eco World Capital Assets Bhd 12.08.2022 (NR) 1,000,000 1,014,068 1,009,568 1.94 4.35% First Resources Ltd 05.06.2020 (AA2) 1,500,000 1,516,607 1,520,413 2.93 5.85% Jimah East Power Sdn Bhd 04.06.2031 (AA-) 1,000,000 1,107,003 1,102,931 2.12 4.25% Konsortium Lebuh Raya UT KL SB 01.12.2023 (AA-) 500,000 495,027 498,834 0.96 5.10% Krung Thai Bank PLC Call: 06.07.2020 (AA2) 500,000 508,244 516,454 0.99 4.4% Lafarge Cement Sdn Bhd 15.01.2018 (AA2) 500,000 506,690 507,225 0.98 5.95% Lebuhraya DUKE Fasa 3 Sdn Bhd 23.08.2034 (AA-) 1,000,000 1,032,888 1,094,691 2.11 6.23% Lebuhraya DUKE Fasa 3 Sdn Bhd 21.08.2037 (AA-) 1,000,000 1,034,905 1,114,108 2.15 4.60% Malaysia Building Society Bhd 10.12.2020 (AA1) 1,000,000 1,014,945 1,016,840 1.96 6.80% Mah Sing Group Bhd Call: 31.03.2020 (NR) 1,500,000 1,519,483 1,513,977 2.92 4.90% Malayan Banking Bhd Call: 29.01.2019 (AA1) 500,000 507,474 508,432 0.98

37




(ii) Unquoted fixed income securities – local as at 31 October 2017 are as follows: (continued)

Nominal Adjusted Fair Percentage Name of issuer value cost value of NAV

RM RM RM % BONDS (continued)

3.844% MGS 15.04.2033 (SOV) 2,500,000 2,360,955 2,324,488 4.48 4.86% PTPTN 12.03.2032 (NR) 1,000,000 1,006,391 1,004,801 1.94 4.85% PTPTN 26.07.2041 (NR) 1,500,000 1,519,334 1,455,209 2.80 6.30% MEX II Sdn Bhd 29.04.2033 (AA-) 2,500,000 2,557,953 2,705,938 5.21 4.40% RHB Bank Bhd Call: 30.11.2017 (AA3) 1,500,000 1,527,946 1,528,417 2.94 4.82% RHB Bank Bhd Call: 27.09.2022 (AA3) 500,000 502,311 501,641 0.97 4.55% Sabah Development Bank Bhd 08.08.2022 (AA1) 1,000,000 992,529 981,706 1.89 5.04% Southern Power Generation Sdn Bhd 28.04.2028 (AA-) 500,000 500,069 500,064 0.96 5.70% Tanjung Bin Energy Issuer Bhd 16.03.2027 (AA3) 1,000,000 1,069,053 1,075,431 2.07 5.10% TNB Western Energy Bhd 30.01.2025 (AAA) 1,000,000 1,037,404 1,048,475 2.02 4.385% TNB Northern Energy Bhd 29.11.2029 (AAA) 500,000 503,238 492,151 0.95 6.00% TF Varlik Kiralama AS 28.06.2019 (AA3) 1,500,000 1,535,144 1,538,195 2.96 4.85% UEM Edgenta Bhd 26.04.2022 (AA-) 2,000,000 2,001,595 2,017,275 3.89 5% UEM Sunrise Bhd 19.05.2023 (AA-) 1,000,000 1,032,034 1,031,889 1.99 5.22% UMW Holdings Bhd 02.10.2026 (AA2) 1,000,000 1,009,545 1,020,494 1.97 5.59% UniTapah Sdn Bhd 12.12.2024 (AA2) 400,000 429,964 433,250 0.83 5.69% UniTapah Sdn Bhd 12.12.2025 (AA2) 1,500,000 1,622,289 1,639,291 3.16 4.6% WCT Holdings Bhd 28.08.2020 (AA-) 500,000 482,322 499,370 0.96 4.75% Westports Holdings Bhd 03.04.2023 (AA+) 1,500,000 1,518,365 1,524,712 2.94

38




(ii) Unquoted fixed income securities – local as at 31 October 2017 are as follows: (continued)

Nominal Adjusted Fair Percentage Name of issuer value cost value of NAV

RM RM RM % BONDS (continued)

5.17%WCT Holdings Bhd 23.10.2023 (AA-) 2,000,000 2,009,769 1,990,970 3.84 5.05% YTL Power International Bhd 03.05.2027 (AA1) 3,000,000 3,080,102 3,114,632 6.00 ───────── ───────── ───────── ───────── Total unquoted fixed income securities – local 46,400,000 47,321,473 47,646,415 91.79 ═════════ ═════════ ═════════ Accumulated unrealised gain on unquoted fixed income securities – local 324,942 ───────── Total unquoted fixed income securities – local 47,646,415 ═════════

39


10 CASH AND CASH EQUIVALENTS 2018 2017 RM RM Cash and bank balances 35,792 116,415 Deposits with licensed financial institutions 31,028,888 2,235,729 ───────── ─────────

31,064,680 2,352,144 ═════════ ═════════ Weighted average interest rates per annum and weighted average maturity of deposits with licensed

financial institutions are as follows: 2018 2017 % % Deposits with licensed financial institutions 3.31 3.05 ═════════ ═════════ Deposits with licensed financial institutions have an average maturity period of 3 day (2017: 1 day). 11 NUMBER OF UNITS IN CIRCULATION

2018 2017 No. of units No. of units At the beginning of the financial period 112,904,000 88,309,000 Creation of units arising from application 119,367,468 10,158,958 Creation of units arising from distribution 3,085,943 1,516,793 Cancellation of units (8,375,411) (10,954,751) ───────── ───────── As at the end of the financial period 226,982,000 89,030,000 ═════════ ═════════

40


12 TRANSACTIONS WITH DEALERS

(i) Details of transactions with the top 10 dealers for the 6 months financial period ended 31 October 2018 are as follows:

Percentage of total

Name of dealers Value of trade trade RM %

CIMB Bank Bhd 43,868,110 29.30 Affin Hwang Investment Bank Berhad# 14,530,600 9.70 RHB Investment Bank Bhd 13,272,250 8.86 AmBank (M) Bhd 13,091,900 8.74 OCBC Bank (M) Berhad 10,105,000 6.75 Bank of America Merrill Lynch 10,037,000 6.70 Citibank Berhad 10,010,000 6.68 JP Morgan Securities (M) Sdn Bhd 7,908,800 5.28 Hong Leong Investment Bank Berhad 5,235,000 3.50 Ambank Islamic Berhad 5,091,500 3.40 Others 16,606,310 11.09 ───────── ───────── 149,756,470 100.00 ═════════ ═════════

(ii) Details of transactions with the top 10 dealers for the 6 months financial period ended 31 October 2017

are as follows:

Percentage of total

Name of dealers Value of trade trade RM %

Affin Hwang Investment Bank Bhd 9,682,600 30.21 CIMB Bank Bhd 9,443,650 29.46 RHB Investment Bank Bhd# 5,532,150 17.26 AmBank (M) Bhd 2,859,700 8.92 Hong Leong Bank Bhd 1,521,400 4.75 Standard Chartered Bank Malaysia Bhd 1,013,400 3.16 Kenanga Investment Bank Bhd 1,000,000 3.12 Oversea – Chinese Banking Corporation Ltd 501,550 1.56 Malayan Banking Bhd 500,000 1.56 ───────── ───────── 32,054,450 100.00 ═════════ ═════════

There is no brokerage fee paid to the dealer.

41


12 TRANSACTIONS WITH DEALERS (CONTINUED)

Included in transactions with dealers are trades with Affin Hwang Investment Bank Berhad, a company related to the Manager amounting to RM14,530,600 (2017: RM9,682,600). 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. # Included in the transactions with brokers and dealers are cross trades conducted between the Fund and other funds; and private mandates managed by the Manager amounting to:

6 months 6 months financial financial period ended period ended 31.10.2018 31.10.2017 RM RM Name of dealers Affin Hwang Investment Bank Bhd 2,516,300 - RHB Investment Bank Bhd - 4,022,150 ───────── ───────── 2,516,300 4,022,150 ═════════ ═════════

The cross trades are conducted between the Funds and other funds; and private mandates managed by the Manager as follows:

6 months 6 months financial financial period ended period ended 31.10.2018 31.10.2017 RM RM Affin Hwang Wholesale Corporate Bond Fund 1,022,300 - Affin Hwang Select Cash Fund - 1,000,250 Affin Hwang Fixed Maturity Income Fund XII - 3,021,900 Private mandates managed by the Manager 1,494,000 - ───────── ───────── 2,516,300 4,022,150 ═════════ ═════════

42


13 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

Affin Hwang Asset Management Berhad The Manager Affin Hwang Investment Bank Berhad Holdings company of the Manager Affin Bank Berhad (“ABB”) Ultimate holding company of the Manager Subsidiaries and associates of ABB as Subsidiary and associated companies disclosed in its financial statements of the ultimate holding company of the Manager

Director of Affin Hwang Asset Management Director of the Manager

Berhad

Non-Executive Chairman of Affin Holdings Berhad Non-Executive Chairman of the ultimate holding company of the Manager

2018 2017 No. of units RM No. of units RM

The Manager: Affin Hwang Asset Management Berhad (The units are held legally 32,981 19,149 2,004 1,168 for booking purposes) ═════════ ═════════ ═════════ ═════════

43


14 MANAGEMENT EXPENSE RATIO (“MER”)

6 months 6 months financial financial period ended period ended 31.10.2018 31.10.2017 % % MER 0.54 0.60 ═════════ ═════════

MER is derived from the following calculation:

MER = (A + B + C + D + E) x 100 ────────────── F A = Management fee B = Trustee fee C = Auditors’ remuneration D = Tax agent’s fee E = Other expenses F = Average NAV of Fund calculated on a daily basis The average net asset value of the Fund for the financial period calculated on a daily basis is RM

103,870,384 (2017: RM51,829,339). 15 PORTFOLIO TURNOVER RATIO (“PTR”) 6 months 6 months financial financial period ended period ended 31.10.2018 31.10.2017 PTR (times) 0.72 0.31 ═════════ ═════════ PTR is derived from the following calculation:

(Total acquisition for the financial period + total disposal for the financial period) 2 Average NAV of the Fund for the financial period calculated on daily basis where: total acquisition for the financial period = RM94,000,120 (2017: RM16,481,700) total disposal for the financial period = RM56,475,803 (2017: RM16,015,860)

44


16 SEGMENT INFORMATION The strategic asset allocation committee of the Investment Manager makes the strategic resource allocations

on behalf of the fund. The Fund has determined the operating segments based on the reports reviewed by this committee that are used to make strategic decisions.

The committee is responsible for the Fund’s entire portfolio and considers the business to have a single operating segment. The committee’s asset allocation decisions are based on a single, integrated investment strategy and the Fund’s performance is evaluated on an overall basis.

The reportable operating segment derives its income by seeking investments to achieve targeted returns

consummate with an acceptable level of risk within each portfolio. These returns consist of interest and gains on the appreciation in the value of investments, and is derived from unquoted fixed income securities in Malaysia.

. There were no changes in the reportable segments during the financial period. The internal reporting provided to the committee for the Fund’s assets, liabilities and performance is

prepared on a consistent basis with the measurement and recognition principles of MFRS and IFRS.

45

AFFIN HWANG BOND FUND

STATEMENT BY THE MANAGER I, Teng Chee Wai, as the Director of Affin Hwang Asset Management Berhad, do hereby state that in my opinion as the Manager, the financial statements set out on pages 10 to 44 are drawn up in accordance with the provisions of the Deeds and give a true and fair view of the financial position of the Fund as at 31 October 2018 and of its financial performance, changes in equity and cash flows for the financial period ended 31 October 2018 in accordance with the Malaysian Financial Reporting Standards and International Financial Reporting Standards. For and on behalf of the Manager, AFFIN HWANG ASSET MANAGEMENT BERHAD TENG CHEE WAI EXECUTIVE DIRECTOR / MANAGING DIRECTOR Kuala Lumpur 13 December 2018

46

DIRECTORY OF SALES OFFICE HEAD OFFICE Affin Hwang Asset Management Berhad Ground Floor Tel : 03 – 2116 6000 Menara Boustead Fax : 03 – 2116 6100 69, Jalan Raja Chulan Toll free no : 1-800-88-7080 50200 Kuala Lumpur Email:[email protected] SELANGOR Affin Hwang Asset Management Berhad A-7-G Jaya One No. 72A, Jalan Universiti 46200 Petaling Jaya Tel: 03-7620 1290 Selangor Fax: 03-7620 1298 PENANG Affin Hwang Asset Management Berhad No. 10-C-24 Precinct 10 Jalan Tanjung Tokong Tel : 04 – 899 8022 10470 Penang Fax : 04 – 899 1916 PERAK Affin Hwang Asset Management Berhad 13A Persiaran Greentown 7 Greentown Business Centre Tel : 05 – 241 0668 30450 Ipoh Perak Fax : 05 – 255 9696 MELAKA Affin Hwang Asset Management Berhad Ground Floor, No. 584, Jalan Merdeka Taman Melaka Raya Tel : 06 – 281 2890 / 3269 75000 Melaka Fax : 06 – 281 2937 JOHOR Affin Hwang Asset Management Berhad 1

st Floor, Lot 93

Jalan Molek 1/29, Taman Molek 81100 Johor Bahru Tel : 07 – 351 5977 Johor Fax : 07 – 351 5377 SABAH Affin Hwang Asset Management Berhad Lot No. B-2-09, 2

nd Floor

Block B, Warisan Square Jalan Tun Fuad Stephens 88000 Kota Kinabalu Tel : 088 – 252 881 Sabah Fax : 088 – 288 803

47

DIRECTORY OF SALES OFFICE (CONTINUED) SARAWAK Affin Hwang Asset Management Berhad Ground Floor, No. 69 Block 10, Jalan Laksamana Cheng Ho 93200 Kuching Tel : 082 – 233 320 Sarawak Fax : 082 – 233 663 Affin Hwang Asset Management Berhad 1

st Floor, Lot 1291

Jalan Melayu, MCLD 98000 Miri Tel : 085 – 418 403 Sarawak Fax : 085 – 418 372

48

Documents

AFFIN HWANG BOND FUND€¦ · AFFIN HWANG BOND FUND Interim Report and Unaudited Financial Statements For the 6 Months Financial Period Ended 31 October 2018 ... Size of holdings