31 august 2011 | offshore - CIMB

Comments

Transcription

31 august 2011 | offshore - CIMB
ANNUAL REPORT
31 AUGUST 2011 | OFFSHORE
Manager: HwangDBS Investment Management Berhad (429786-T)
Trustee: HSBC (Malaysia) Trustee Berhad (1281-T)
HWANGDBS GLOBAL PROPERTY FUND
Audited Annual Report and Financial Statements
For the Financial Year Ended 31 August 2011
Contents
Page
Manager’s Report ......................................................................................................................... 2
Fund Performance Data................................................................................................................ 9
Statement Of Comprehensive Income ........................................................................................ 10
Statement Of Financial Position.................................................................................................. 11
Statement Of Changes In Equity ................................................................................................ 12
Statement Of Cash Flows ........................................................................................................... 14
Summary Of Significant Accounting Policies .............................................................................. 15
Notes To The Financial Statements............................................................................................ 22
Statement By The Manager ........................................................................................................ 42
Trustee’s Report ......................................................................................................................... 43
Auditors’ Report .......................................................................................................................... 44
Sales Office And Corporate Directory......................................................................................... 46
1
MANAGER’S REPORT
(1) MANAGER’S VIEW ON PROTFOLIO AND MARKET
Fund Type, Category, Objective and Distribution Policy
HwangDBS Global Property Fund, GPF (the ‘Fund’) is a feeder fund that seeks to provide investors with
regular income distributions and medium to long-term capital appreciation during the investment period by
investing in a single collective investment scheme (“CIS”) namely, the DBS Global Property Securities Fund
(‘GPSF’ or the ‘Target Fund’). The Target Fund invests globally in real estate investment trusts (“REITs”),
REITs type securities and real estate securities and is managed by DBS Asset Management Ltd (”DBSAM”)
as the “Target Fund Manager”..
The Fund endeavours to distribute income, if any, on a quarterly basis.
Benchmark
The benchmark used by the Manager in measuring the performance of the Fund is the UBS Warburg Global
Real Estate Investors Index (the “Benchmark”), a sub-index of EPRA/NAREIT Global Real Estate Index.
(source: AMP Capital Investors Limited, UBS, Bloomberg)
Performance of the Fund (1 September 2010 to 31 August 2011) 1
The Fund was launched on 19 April 2006, but for purposes of performance calculation, the commencement
date was taken to be 11 May 2006, the date when the Fund commenced investing. For the period 1
September 2010 to 31 August 2011, the Fund registered a 8.54% return. The Net Asset Value (“NAV”) per
Unit of the Fund as at 31 August 2010 was RM0.2323 while the NAV per Unit as at 31 August 2011 was
RM0.2423. The Fund has declared a gross income distribution of RM1.01 per Unit during the period under
review. The Fund underperformed the Benchmark by 4.61% as the Benchmark returned 13.15% for the
same period. (See Table 1 for performance of the Fund and Figure 1 for movement of the Fund versus the
Benchmark respectively).
On a total NAV basis, the Fund’s NAV increased from RM72.87million to RM73.78million for the period
under review. For the period under review, the Fund had made two dividend payments to investors. As
such, the Manager believes that the Fund’s objective of achieving consistent capital appreciation over the
medium to long term has been met. For details on the average total return and annual total return of the
Fund, see Table 2 and Table 3 below respectively.
Performance of the Fund (1 September 2010 to 31 August 2011)
Table 1: Performance of the Fund
1 Year
(1/9/10- 31/8/11)
3 Year
(1/9/08- 31/8/11)
5 Year
(1/9/06- 31/8/11)
Since Commencement
(11/5/06-31/8/11)
Fund
8.54%
(9.69%)
(28.24%)
(20.38%)
Benchmark
13.15%
(8.30%)
(23.14%)
(15.97%)
Outperformance
(4.61%)
(1.39%)
(5.10%)
(4.41%)
Source of Benchmark: Bloomberg
Table 2: Average Total Return
1 Year
(1/9/10- 31/8/11)
3 Year
(1/9/08- 31/8/11)
5 Year
(1/9/06- 31/8/11)
Since Commencement
(11/5/06-31/8/11)
Fund
8.54%
(3.34%)
(6.42%)
(4.20%)
Benchmark
13.15%
(2.85%)
(5.12%)
(3.22%)
Outperformance
(4.61%)
(0.49%)
(1.30%)
(0.98%)
Source of Benchmark: Bloomberg
1
Please note that for the purpose of performance calculation, Business Day convention is used.
2
Table 3: Annual Total Return
1st Year
(11/5/06 31/8/07)
2nd Year
(1/9/07 31/8/08)
3rd Year
(1/9/08 31/8/09)
4th Year
(1/9/09 31/8/10)
5th Year
(1/9/10 31/8/11)
Fund
15.47%
(23.65%)
(19.28%)
3.08%
8.54%
Benchmark
13.87%
(19.52%)
(24.57%)
7.44%
13.15%
Outperformance/
(Underperformance)
1.60%
(4.13%)
5.29%
(4.36%)
(4.61%)
Source of Benchmark: Bloomberg
Figure 1: Movement of the Fund versus the Benchmark
40
30
Global Property Fund
20
10
0
‐10
‐20
‐30
‐40
‐50
Benchmark
‐60
‐70
May‐06
Nov‐06
May‐07
Dec‐07
Jun‐08
Dec‐08
Jun‐09
Jan‐10
Jul‐10
Jan‐11
Aug‐11
“This information is prepared by HwangDBS Investment Management Berhad (HwangDBS IM) 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. Source of benchmark is from
Bloomberg.”
Benchmark: UBS Warburg Global Real Estate Investors Index (source: Urdang Securities management, Inc., UBS Bloomberg)
Strategies Employed (1 September 2010 to 31 August 2011)
In North America, the Target Fund Manager continued to keep the portfolio’s Central Business District
(“CBD”) office exposure in key gateway cities in the U.S. on the expectation that commercial rents should
continue to strengthen but generally maintained a defensive posture given the portfolio’s large exposure to
healthcare and triple net leases. The Target Fund Manager also maintained the portfolio’s exposure to
senior housing in Canada.
In Europe, the Target Fund Manager continued to be wary of problems in Southern Europe and remained
focused on Northern Europe and Scandinavia, participating in equity offerings in the region. In the UK, the
portfolio was held an overweight exposure to London vis-à-vis the rest of the country and added to its
positions in London-focused majors. The Target Fund Manager continued to be positive on selective niche
firms in the UK on their long-term potential.
In Japan, the Target Fund Manager initially increased the portfolio’s exposure to Japanese REITs (“JREITs”) in the first half of the period under review on expectations that the exposure will benefit from the
Bank of Japan’s asset purchase program. In the first quarter of 2011, the Target Fund Manager began to
shift its focus towards developers with a domestic focus and increased the portfolio’s exposure to developers
on expectations that they will benefit from the post-earthquake reconstruction efforts ahead of J-REITs.
3
During the period under review, the Target Fund Manager remained overweight on its exposure into the
Asia-Pacific (ex-Japan) region backed by its healthier economic growth expectations as compared to the
major developed markets. The portfolio’s largest overweight was tilted towards Singapore, where the
portfolio’s exposure was focused on Singapore office and hotel owners. The Target Fund Manager
increased the portfolio’s exposure to Global Logistic Properties, a Singapore-listed industrial developer in
China and Japan. The portfolio was also overweight on its exposure into Hong Kong, where exposure was
focused on Hong Kong office and retail landlords. The Target Fund Manager maintained its overweight
stance on Malaysia, and added an overweight position in Thailand during the period under review. In
Australia, the Target Fund Manager kept to its underweight in the Australian REITs (A-REITs) sector, with
selective exposure to industrial and office asset owners.
Asset Allocation
From 1 September 2010 to 31 August 2011, the Fund’s exposure to the GPSF ranged from 91.59% to
99.57% of the Fund’s NAV, while the balance was held in cash. For a snapshot of the Fund’s significant
changes in the asset mix, see Table 4 below.
Table 4: Summary of Asset Allocation as at 31 August 2011
Asset Allocation
31 Aug 2011
31 Aug 2010
31 Aug 2009
DBS Global Property
Securities Fund
99.57%
91.59%
98.39%
Cash
0.43%
8.41%
1.61%
Total
100.00%
100.00%
100.00%
The portfolio's exposure into the Target Fund increased from the previous period under review as it
maintained its exposure of 95% to 99.8% into the Target Fund.
Review of Market (1 September 2010 to 31 August 2011)
North America
In the twelve months to August 2011, global property stocks gained 9.8% in US Dollar (USD) terms
according to the FTSE EPRA/NAREIT Global Index. The sector underperformed global equities, with the
MSCI All Country World Index gaining 8.3%. During the period under review, U.S. property stocks gained
13.5% in USD terms according to the FTSE EPRA/NAREIT U.S. Index. Generally healthy macro data and
the second quantitative easing (QE2) program initiated by the U.S. Federal Reserve (Feds) in November
2010 provided a boost to property stocks during the first half of the review period. Generally weaker
domestic macro data and heightened global uncertainties in the second half of the review period weighed on
positive performance. The U.S. Consumer Confidence index slumped to a two-year low of 44.5 in August
2011 from 59.2 in July 2011, as Americans worried about employment and incomes. The Philadelphia Fed
Business Outlook Survey for August fell to negative 30.7 which was much lower than expected, and initial
jobless claims continued to be stubbornly high. The sovereign debt crisis in the Eurozone and the debate
surrounding the U.S. debt ceiling heavily dampened investor sentiment in August, with the FTSE
EPRA/NAREIT U.S. Index down 6.1% for the month. Despite the negative backdrop, strong corporates
continued to be able to raise equity, with AvalonBay raising USD 630 million in a secondary offering, RLJ
Lodging Trust’s USD 600 million initial public offering (IPO) and Allied Properties issuing Canadian Dollar
(CND) 90 million to fund three previously-announced acquisitions.
Australia
During the period under review, A-REITs underperformed their global peers with the S&P/ASX 200 A-REIT
Index recording a negative return of 8.5% in Australian Dollar (AUD) terms. In USD terms however, the index
gained 10.0%, largely due to the strengthening of the AUD against the USD. In the Target Fund Manager’s
view, this reflects the A-REITs returning to a low-beta nature in an environment of rising stock prices, a
stronger AUD impacting REITs with overseas assets, and the effect of several large equity issuances in the
sector. The Reserve Bank of Australia (RBA) raised its cash rate by 25 basis points to 4.75% in November,
and left it unchanged at its meetings in February and August. In the first quarter of 2011, Australian gross
domestic product (GDP) shrank 0.9% on a quarter-to-quarter basis, the largest decline in 20 years as
extensive flooding hit commodity exports. Growth recovered in the second quarter with the GDP expanding
4
by 1.2%, boosted by strong manufacturing and transport growth. In corporate news, the Westfield Group
(WDC) announced a restructuring plan in November 2010 which will see it spin off a 50% interest in its
Australian and New Zealand assets. WDC will attempt to raise AUD 3.5 billion in new equity, with AUD 1.75
million completed in November. Towards the end of the period under review, WDC entered the Brazilian
market with the acquisition of a 50% stake in Almeida Junior Shopping Centers for AUD 440 million. Other
corporate developments included Commonwealth Property raising AUD 274 million to fund new acquisitions,
the Canada Pension Plan Investment Board’s acquisition of 50% of Northland Shopping Centre from CFS
Retail Property Trust, the Government of Singapore Investment Corporation’s purchase of a portfolio of
industrial assets from Australand, and an agreement by the Blackstone Group to purchase the Valad
Property Group in a deal which values the Australian owner of office and industrial assets at AUD 208
million.
Europe
European stocks were the best performing among the major regions, with the FTSE EPRA/NAREIT
Eurozone Index jumping 17.4% in USD terms over the period under review. Most of the gains came in the
first six months of the period under review as concerns surrounding the sovereign debt crises in various
Eurozone countries remained in their infancy. During this period, the European Central Bank (ECB)
maintained its accommodative policy and successfully dealt with the sovereign crises as they occurred.
Market conditions turned south during the second half of the period under review as the likelihood of a
sovereign default intensified and investor sentiment in the region turned negative. Greece, Ireland, Spain
and Portugal all saw their cost of borrowing increase given concerns over their sovereign debt. Apart from
southern Europe, economic growth continued to improve and had a positive impacting the property space. In
major company news, Unibail-Rodamco announced a plan to sell EUR 2.5 billion worth of assets, taking
advantage of improving market conditions, and Carrefour decided to delay the IPO of its property assets,
expected to be worth approximately EUR 10 billion amidst market uncertainty. In the UK, property stocks
generally did well for the period under review, with the FTSE EPRA/NAREIT UK Index gaining 17.2% in USD
terms. Positive performance was however, dragged down by civil unrest which occurred in early August,
where several London boroughs and many towns across England suffered widespread rioting, looting and
arson. Given the large-scale disturbances, equity markets reacted negatively with the FTSE EPRA/NAREIT
UK Index down 11.7% for the month in USD terms. In corporate news, Hansteen and Capital & Counties
issued British Pounds (GBP) 250 million worth of new equity, RBS agreed to sell GBP 1.4 billion of
commercial property loans to private equity group Blackstone, and Capital and Counties submitted planning
applications for its GBP 8 billion Earl’s Court development, one of the largest ever undertaken in Central
London.
Asia
During the period under review, the Japanese property stocks underperformed their regional peers and were
virtually unchanged in Japanese Yen (JPY) terms, according to the FTSE EPRA/NAREIT Japan Index. In
USD terms however, the index gained 9.8%. In the fourth quarter of 2010, the Bank of Japan (BoJ)
announced an asset purchase program explicitly aimed at bringing down risk premiums in order to enhance
monetary easing. REITs were included in the list of targeted investments along with exchange traded funds
(ETF), Japanese government bonds, commercial paper and corporate bonds. This news provided support to
the J-REITs which rallied and outperformed the developers for this period. The earthquake and tsunami in
March 2011 affected property stocks heavily with the FTSE EPRA/NAREIT Japan Index dipped 16.7% in
USD terms in March. Subsequently, generally healthy macro data showed improving signs of recovery for
the domestic economy. In real estate news, Japan Retail Fund raised nearly JPY 20 billion and BLife
Investment Corp raised nearly JPY 13 billion in secondary equity issues. Orix REIT and United Urban raised
close to JPY 75 billion in May through equity offerings. Tokyo office vacancy for August improved to 8.65%
from 8.76% a month ago.
In Hong Kong, property stocks fell 0.5% in USD terms during the period under review, as measured by the
Hang Seng Property Index. Over the twelve months through August, Hong Kong home prices gained 17.2%
according to the Centa-City Leading Index, despite the tight policies in effect. In November 2011, the Hong
Kong Monetary Authority announced lower loan-to-value ratios, and a Special Stamp Duty on residential
properties resold within 24 months. The Financial Secretary’s Budget Speech on 23 February 2011 revealed
no new demand-side cooling policies for the residential market led to an increase in activity for new
launches. In June, the government announced that eight sites, potentially yielding 6,000 residential units,
would be auctioned in the third quarter of 2011. The government also further lowered mortgage loan-to-value
ratio limits by 10 percentage points across the board, and imposed a further reduction of 10 percentage
points for buyers without proof of income in Hong Kong. In corporate news, National Electronic sold a 8,302
square feet (sqf) house at the Peak for a record price of Hong Kong Dollar (HKD) 800 million or HKD 96,362
per square foot (psf). In August 2011, a consortium consisting of Kerry Properties, Sino Land and Manhattan
Group won an auction for a residential site in Shatin for HKD 5.5 billion, below the expected HKD 7.2 - 9.3
5
billion. The consortium was the only bidder and the purchase price was its opening bid. Cheung Kong won
the tender for a residential site at Oil Street for HKD 6.3 billion, lower than initial expected HKD 8.0 - 9.1
billion. In the month of August, Wheelock Properties also won the tender for a commercial site in Hung Hom
through a bid of HKD 4.0 billion, exceeding the expected range of HKD 3.0 -3.4 billion.
Chinese property stocks ended mostly lower during the period under review. Several rounds of tightening
measures were implemented by the Chinese Government over the year, including higher down payments
for first-home buyers, administrative purchase restrictions for homes in Tier 2 and Tier 3 cities, a ban on
mortgages for buyers of third homes or more, and for non-local buyers without a one-year local tax or social
security payment record. Cities which implemented home purchase restrictions as per the government’s
tightening measures saw lower sales. Conversely, sales were strong in certain cities which had yet to
implement the restrictions. Home purchase restrictions have been implemented in more than 30 cities,
according to JP Morgan.
Singapore property stocks lagged the region as measured by the FTSE ST Real Estate Index which
underperformed by 4.9% in USD terms for the twelve months through August, a result of the numerous
tightening measures imposed by the Government. Just as in Hong Kong and China, policy tightening for the
property space in Singapore included higher loan-to-value ratios, restrictive mortgage terms for second
home loans, higher stamp duties, higher supply of Housing Development Board (HDB) flats, a longer
minimum ownership period for HDB flats, and a ban on owning private homes during this minimum holding
period. In April, the Urban Redevelopment Authority reported private residential prices rose 2.2% on a
quarter-on-quarter (QoQ) basis in the first quarter of 2011 (1Q11), slower than the 2.7% increase in the forth
quarter of 2010 (4Q10). Office rents grew 5.4% on QoQ terms in 1Q11, up from 4.7% in 4Q10. Retail rents
edged up 0.8%, from 1.7% in 4Q10. Industrial rents, whereas rose 6.3%, faster than the 5.0% in 4Q11. In
June, the government announced that it will release land which can yield a total of 8,115 units under the
Confirmed List for the second half of 2011. This equals the 8,100 units released in the first half of 2011. Land
for an additional 6,080 units were included for sale under the Reserve List, lower than the 6,185 units in the
first half of 2011. In major transactions, CapitaMall Trust also announced that it had entered into an
agreement to acquire Iluma, a mall in the Bugis Street area, for Singapore Dollar (SGD) 295 million and CDL
Hospitality Trusts acquired Studio M Hotel from its sponsor, Millennium & Copthorne Hotels, for SGD 154
million. CapitaMalls Asia acquired an additional 50% stake in two Shanghai malls, paying a total of SGD 950
million, and Capitaland bought a prime residential site in Hangzhou for SGD 215 million. More corporate
news for the first quarter - Mapletree Commercial Trust’s IPO raised SGD 893 million, and an apartment at
the SC Global project - The Marq was reportedly sold for SGD 5,842 psf, a new record for Singapore.
Investment Outlook & Portfolio Strategy
North America
In the U.S., the Target Fund Manager expects the Federal Reserve to continue with its accommodative
monetary policy in the near term. Given the weakness in non-farm payroll numbers the Target Fund
Manager continues to be skeptical about the strength of the recovery in the U.S, however the base scenario
remains one of slow growth and not a recession. Political uncertainty continues to be a concern given that
focus will soon shift to the 2012 presidential elections. The Target Fund Manager expects defensive sectors
to continue to do well given current weaknesses in the broader economy. Positive fundamentals continue to
be visible in western Canada backed by the region’s oil-driven economy.
Europe
In Europe, the Target Fund Manager believes that further financial dislocation is a material possibility given
the unresolved sovereign debt issues. It is expected that the European Central Bank will continue taking
measures to prevent further contagion of the debt crisis, which threatens to drag the world into another
recession. The portfolio has had a negative bias to Southern Europe over the last few months which the
Target Fund Manager will maintain. In particular, austerity measures are expected in the peripheral
European Union (EU) economies to continue to be a drag on consumption in Southern Europe. Northern
Europe continues to do well but might suffer from contagion through its banking system.
6
Asia
In recent months the outlook for the global economy has become more uncertain in view of the unfolding
sovereign debt situation in the Eurozone and U.S. The Target Fund Manager views the economies of the
Asia-Pacific ex-Japan region, while not immune to a slowdown in the major developed nations, should
continue to grow at a relatively healthy pace. The Target Fund Manager continues to believe that this should
be broadly supportive of commercial real estate values and rents. The Target Fund Manager remains
cautious on the residential markets in Australia, Singapore and Hong Kong, but maintains its view that policy
tightening may be at an end in China’s residential sector. The Target Fund Manager continues to be positive
on selected developer names in Malaysia, and is now more positive on Thai developers, given the imminent
announcement of policy incentives for homebuyers.
In Japan, the Target Fund Manager continues to expect industrial production to recover to pre-earthquake
levels as more industries come back online. The expansion of the BoJ’s asset purchase program as well as
the loose monetary policy adopted by the central bank should remain supportive to property stocks. The
Target Fund Manager continues to expect rents in Tokyo to be weak but believe vacancy should drop as
tenants move to Grade A buildings to take advantage of the low rents. It is expected that suburban retail
sales will recover to pre-quake levels and also expect more J-REIT secondary offerings.
(2)
SOFT COMMISSIONS RECEIVED FROM BROKERS
Soft commissions received from brokers are retained by the management company only if the goods and
services provided are of demonstrable benefit to unit holders of the scheme as per the requirements of
Clauses 11.33 and 11.34 of the Guidelines on Unit Trust Funds.
During the financial year under review, the management company did not receive any soft commissions.
(3)
BREAKDOWN OF UNITHOLDERS BY SIZE
Size of holdings
(units)
5,000 and below
137
No. of units held *
(‘000)
370
5,001 to 10,000
152
1,115
10,001 to 50,000
952
23,392
50,001 to 500,000
285
26,159
500,001 and above
15
253,438
1,541
304,474
Total
No. of unit holders
*Note: Excluding Manager’s Stock
7
INCOME DISTRIBUTION
HwangDBS Investment Management Berhad recently declared a gross distribution in total of 1.01 sen per
Unit for investors of the Fund over the period under review. All Unit Holders registered before or by 30
March 2011 were eligible to receive this distribution.
The NAV per unit prior and subsequent to the distribution were as follows:Cum-Date
Ex-Date
Cumdistribution
(RM)
0.5753
Distribution
per Unit
(RM)
0.0200
Exdistribution
(RM)
0.5566
29 May 2007
30 May 2007
23 August 2007
24 August 2007
0.5193
0.0100
0.5120
28 February 2008
29 February 2008
0.4288
0.0150
0.4066
25 June 2008
26 June 2008
0.3988
0.0100
0.3788
20 October 2008
21 October 2008
0.2782
0.0100
0.2640
26 February 2009
27 February 2009
0.1843
0.0100
0.1760
22 May 2009
25 May 2009
0.1996
0.0100
0.1911
21 August 2009
24 August 2009
0.2537
0.0100
0.2436
13 November 2009
16 November 2009
0.2587
0.0100
0.2521
11 February 2010
12 February 2010
0.2412
0.0075
0.2339
14 May 2010
17 May 2010
0.2374
0.0075
0.2300
17 December 2010
20 December 2010
0.2541
0.0075
0.2483
30 March 2011
31 March 2011
0.2594
0.0026
0.2582
8
FUND PERFORMANCE DATA
Source: HSBC Trustee
Total NAV (RM’million)
NAV per Unit (RM)
Units in Circulation (million)
Highest NAV
Lowest NAV
Return of the Fund (%)iii
- Capital Return (%)i
- Total Income Return (%)ii
Gross Distribution per Unit (sen)
Net Distribution per Unit (sen)
Management Expense Ratio (%) 2
Portfolio Turnover Ratio (times) 3
As at
31 August 2011
As at
31 August 2010
As at
31 August 2009
73.777
0.2423
304.480
0.2716
0.2204
72.872
0.2323
313.747
0.2703
0.2137
66.776
0.2497
267.432
0.3866
0.1552
8.54
4.31
4.06
1.01
1.01
0.34
0.06
3.08
-6.97
10.81
2.5
2.5
0.35
0.13
-19.28
-32.82
20.16
4.0
4.0
0.36
0.07
Capital Returni
= {NAV per Unit @ 31/8/11 ÷ NAV per Unit @ 31/8/10* – 1} x 100
= {0.2423 ÷ 0.2323 – 1} x 100
= 4.31%
Income Return @ex-date
= {Income Distribution per Unit ÷ NAV per Unit on ex-date}+1
{0.0075 ÷ 0.2483 @ 20/12/10}+1 = 1.030205
{0.0026 ÷ 0.2582 @ 31/01/11}+1 = 1.010069
Total Income Returnii
= {Income [email protected] x Income [email protected]}-1 x 100
= {[email protected]/12/10 x [email protected]/01/11} - 1 x 100
= 4.06%
Return of the Fundiii
= [{(1 + Capital Return) x (1 + Total Income Return)} – 1] x 100
= [{(1 + 4.31%) x (1 + 4.06%)} – 1] x 100
= 8.54%
*Source: HSBC Trustee
Past performance is not necessarily indicative of future performance and that unit prices and
investment returns may go down, as well as up.
2
3
The MER for the period under review remains consistent to that of its previous period under review.
The PTR increased during the period under review as more active trading took place as the Fund faced a more volatile market.
9
STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011
Note
2011
RM
2010
RM
INVESTMENT INCOME
Dividend Income
Interest income from short term deposits
Net foreign currency exchange losses
Net realised loss on sale of investment
Net gain on financial assets at fair value through
profit or loss
2,280,699
45,863
-
3,354,540
97,801
(5,760,233)
(5,007,348)
8
4,540,851
─────────
6,867,413
─────────
─────────
(7,315,240)
─────────
4
5
(203,659)
(57,025)
(6,200)
(4,000)
(8,587)
─────────
(279,471)
─────────
(187,382)
(52,467)
(6,200)
(3,000)
(15,700)
─────────
(264,749)
─────────
3
EXPENSES
Management fee
Trustee fee
Auditors' remuneration
Tax agent's fee
Other expenses
NET INCOME/(LOSS) BEFORE TAXATION
6,587,942
TAXATION
7
NET INCOME/(LOSS) AFTER TAXATION AND TOTAL
COMPREHENSIVE INCOME
(7,579,989)
─────────
─────────
6,587,942
═════════
(7,579,989)
═════════
751,907
5,836,035
─────────
6,587,942
═════════
(1,696,254)
(5,883,735)
─────────
(7,579,989)
═════════
Net income/(loss) after taxation is made up of the following:
Realised amount
Unrealised amount
The accompanying summary of significant accounting policies and notes to the financial statements form an
integral part of these financial statements.
10
STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2011
RM
31.8.2010
Restated
RM
31.8.2009
Restated
RM
8
9
73,462,343
-
66,745,494
65,704,437
10
10
11
180,606
310,607
─────────
73,953,556
═════════
880,568
5,439,297
128
─────────
73,065,487
═════════
554,206
324,745
221,748
─────────
66,805,136
═════════
15,393
142,400
4,310
6,200
3,500
4,912
─────────
176,715
─────────
15,499
154,255
4,339
6,200
3,000
10,000
─────────
193,293
─────────
13,292
3,722
6,100
3,000
3,140
─────────
29,254
─────────
122,730,486
(48,953,645)
─────────
73,776,841
─────────
125,179,022
(8,369,230)
(43,937,598)
─────────
72,872,194
─────────
113,530,585
6,886,627
(53,641,330)
─────────
66,775,882
─────────
73,776,841
═════════
72,872,194
═════════
66,775,882
═════════
304,480,000
═════════
313,747,000
═════════
267,432,000
═════════
0.2423
═════════
0.2323
═════════
0.2497
═════════
Note
31.8.2011
ASSETS
Financial assets at fair value through
profit or loss
Collective investment scheme - foreign
Short term deposits with a licensed
financial institution
Cash and bank balances
Receivables
TOTAL ASSETS
LIABILITIES
Amount due to Manager
- management fee
- cancellation of units
Amount due to Trustee
Auditors’ remuneration
Tax agent’s fee
Other payables
TOTAL LIABILITIES
EQUITY
Unitholders’ capital
Retained earnings
Reserve
12
TOTAL EQUITY
NET ASSETS ATTRIBUTABLE TO
UNITHOLDERS
NUMBER OF UNITS IN CIRCULATION
NAV PER UNIT
12
The accompanying summary of significant accounting policies and notes to the financial statements form an
integral part of these financial statements.
11
STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011
Unitholders’
capital
RM
Retained
earnings
RM
Reserve
RM
Total
RM
-
-
-
-
Balance as at 1 September 2010
as previously stated
Prior year adjustment for adoption
of amendments to FRS 132
Balance as at 1 September 2010,
restated after adoption of
amendments to FRS132
Prior year adjustment for
adoption of FRS139
Balance as at 1 September 2010,
restated after adoption of
FRS139
125,179,022
─────────
(8,369,230)
─────────
(43,937,598)
─────────
72,872,194
─────────
125,179,022
(8,369,230)
(43,937,598)
72,872,194
─────────
(43,937,598)
─────────
43,937,598
─────────
─────────
125,179,022
─────────
(52,306,828)
─────────
─────────
72,872,194
─────────
Net income after taxation
-
6,587,942
-
6,587,942
Distribution (Note 6)
-
(3,234,759)
-
(3,234,759)
Movement in Unitholders’ contribution:
Creation of units arising from
application
13,634,845
-
-
13,634,845
Creation of units arising from
distribution
3,142,914
-
-
3,142,914
Cancellation of units
Balance as at 31 August 2011
(19,226,295)
─────────
122,730,486
═════════
─────────
(48,953,645)
═════════
─────────
═════════
(19,226,295)
─────────
73,776,841
═════════
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 FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
Unitholders’
capital
RM
Retained
earnings
RM
Reserve
RM
Total
RM
-
-
-
-
113,530,585
─────────
6,886,627
─────────
(53,641,330)
─────────
66,775,882
─────────
113,530,585
6,886,627
(53,641,330)
66,775,882
Balance as at 1 September 2009
as previously stated
Prior year adjustment for adoption
of amendments to FRS 132
Balance as at 1 September 2009,
restated after adoption of
amendments to FRS132
Net loss after taxation
-
(7,579,989)
-
(7,579,989)
Distribution (Note 6)
-
(7,675,868)
-
(7,675,868)
Movement in Unitholders’ contribution:
Creation of units arising
from application
14,816,789
-
-
14,816,789
Creation of units arising
from distribution
7,452,882
-
-
7,452,882
Cancellation of units
(10,621,234)
-
-
(10,621,234)
Asset revaluation reserve
─────────
125,179,022
═════════
Balance as at 31 August 2010
─────────
(8,369,230)
═════════
9,703,732
─────────
(43,937,598)
═════════
9,703,732
─────────
72,872,194
═════════
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 FINANCIAL YEAR ENDED 31 AUGUST 2011
Note
2011
RM
2010
RM
CASH FLOW FROM OPERATING ACTIVITIES
Proceeds from sale of investment
Purchase of investment
Dividend received
Interest received
Management fee paid
Trustee fee paid
Payment for other fees and expenses
Net realised foreign currency exchange gains
Net cash (used in)/generated from operating activities
2,394,051
(3,649,782)
594,757
45,991
(203,765)
(57,054)
(23,375)
454,206
─────────
(444,971)
─────────
6,385,242
(5,247,701)
97,788
(185,175)
(51,850)
(17,939)
123,502
─────────
1,103,867
─────────
16,684,990
(19,238,150)
(3,142,914)
─────────
(5,696,074)
─────────
15,038,422
(10,466,979)
(222,986)
─────────
4,348,457
─────────
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from creation of units
Payments for cancellation of units
Payment for distribution
Net cash (used in)/ generated from financing activities
NET (DECREASE)/INCREASE IN CASH AND CASH
EQUIVALENTS
(6,141,045)
EFFECTS OF FOREIGN CURRENCY EXCHANGE
1,786
CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE FINANCIAL YEAR
CASH AND CASH EQUIVALENTS AT THE
END OF THE FINANCIAL YEAR
10
5,452,324
(11,410)
6,319,865
─────────
878,951
─────────
180,606
═════════
6,319,865
═════════
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 FINANCIAL YEAR ENDED 31 AUGUST 2011
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 of the Fund have been prepared under the historical cost convention, unless
otherwise indicated, and in accordance with the Financial Reporting Standards in Malaysia.
The significant accounting policies adopted are consistent with those applied in the audited financial
statements for the period ended 31 August 2010, except for the adoption of new and revised FRSs which
are effective for financial year beginning on or after 1 January 2010. Except as discussed below, these new
and revised FRSs do not give rise to any significant effects on the financial statements of the Fund.
•
FRS 8 "Operating Segments" (effective from 1 July 2009) replaces FRS 1142004 Segment Reporting.
The new standard requires a ‘management approach’, under which segment information is reported
in a manner that is consistent with the internal reporting provided to the chief operating decisionmaker. The Fund has adopted FRS 8 retrospectively.
•
The improvement to FRS 8 (effective from 1 January 2010) clarifies that entities that do not provide
information about segment assets to the chief operating decision-maker will no longer need to report
this information. Prior year comparatives must be restated.
•
FRS 7 Financial Instruments: Disclosures (effective for accounting period on or after 1 January
2010). The new standard supersedes the disclosure part of FRS 132 Financial Instruments:
Presentation and Disclosures and introduces new disclosures relating to financial instruments. This
standard does not have any impact on the classification and valuation of the Fund’s financial
instruments.
•
The revised FRS 101 “Presentation of financial statements” (effective from 1 January 2010) prohibits
the presentation of items of income and expenses (that is, 'non-owner changes in equity') in the
statement of changes in equity. 'Non-owner changes in equity' are to be presented separately from
owner changes in equity. All non-owner changes in equity will be required to be shown in a
performance statement, but entities can choose whether to present one performance statement (the
statement of comprehensive income) or two statements (the statement of comprehensive income
and statement of comprehensive income). The Fund has elected to present this statement as one
single statement.
Where entities restate or reclassify comparative information, they will be required to present a
restated balance sheet as at the beginning comparative period in addition to the current requirement
to present balance sheets at the end of the current period and comparative period.
The revised FRS 101 was adopted retrospectively by the Fund.
•
FRS 107 “Statement of cash flows” (effective from 1 January 2010) clarifies that only expenditure
resulting in a recognised asset can be categorised as a cash flow from investing activities.
15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
A
BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONTINUED)
•
FRS 110 “Events after the balance sheet date” (effective from 1 January 2010) reinforces existing
guidance that a dividend declared after the reporting date is not a liability of an entity at that date
given that there is no obligation at that time.
•
FRS 118 “Revenue” (effective from 1 January 2010) provides more guidance when determining
whether an entity is acting as a ‘principal’ or as an ‘agent’. This standard does not have material
impact on the classification and valuation of the Fund's financial statements.
•
The amendments to FRS 132 “Financial instruments: Presentation” and FRS 101(revised)
“Presentation of financial statements” - “Puttable financial instruments and obligations arising on
liquidation” (effective from 1 January 2010) require entities to classify puttable financial instruments
and instruments that impose on the entity an obligation to deliver to another party a prorata share of
the net assets of the entity only on liquidation as equity, if they have particular features and meet
specific conditions.
•
FRS 139 “Financial Instruments: Recognition and Measurement” (effective from 1 January 2010)
GN3 establishes principles for recognising and measuring financial assets, financial liabilities and
some contracts to buy and sell non-financial items. Hedge accounting is permitted under strict
circumstances. The amendments to FRS 139 provides further guidance on eligible hedged items.
The amendment provides guidance for two situations. On the designation of a one-sided risk in a
hedged item, the amendment concludes that a purchased option designated in its entirety as the
hedging instrument of a one-sided risk will not be perfectly effective. The designation of inflation as a
hedged risk or portion is not permitted unless in particular situations. The improvement to FRS 139
clarifies that the scope exemption in FRS 139 only applies to forward contracts but not options for
business combinations that are firmly committed to being completed within a reasonable timeframe.
In respect of FRS 7 and FRS 139, the Fund has applied the transitional provision in the respective standards
which exempts entities from disclosing the possible impact arising from the initial application of the standard
on the financial statements of the Fund.
A summary of the impact of the new accounting standards and amendments to published standards on the
financial statements of the Fund is set out in Note 18.
The new standards, amendments and interpretations to published standards which are relevant to the Fund
and have not been early adopted are:
•
Amendments to FRS 7 "Financial instruments: Disclosures" and FRS 1 "First-time adoption of
financial reporting standards" (effective from 1 January 2011) require enhanced disclosures about
fair value measurement and liquidity risk. In particular, the amendment requires disclosure of fair
value measurements by level of a fair value measurement hierarchy. The Fund will apply this
standard when effective.
•
IC Interpretation 17 "Distribution of non-cash assets to owners" (effective from 1 July 2010) provides
guidance on accounting for arrangements whereby an entity distributes non-cash assets to
shareholders either as a distribution of reserves or as dividends. FRS 5 has also been amended to
require that assets are classified as held for distribution only when they are available for distribution
in their present condition and the distribution is highly probable.
16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
B
INCOME RECOGNITION
Interest income from short term deposits with a licensed financial institution is recognised on an accrual
basis.
Dividend income is recognised on the ex-date, when the right to receive the dividend has been established.
Realised gain and loss on sale of investment are accounted for as the difference between the net disposal
proceeds and the carrying amount of the investment, determined on a weighted average cost basis.
C
DIVIDEND DISTRIBUTION
The proposed distributions to Unitholders are recognised in the statement of comprehensive income upon
approval by the Manager.
D
TAXATION
Current tax expense is determined according to the Malaysian tax laws and includes all taxes based upon
the taxable profits. Tax on dividend income from foreign collective investment scheme is based on the tax
regime of the respective country that the Fund is invested.
E
FUNCTIONAL AND PRESENTATION CURRENCY
The financial statements are presented in Ringgit Malaysia, which is the Fund’s functional and presentation
currency.
F
FOREIGN CURRENCY TRANSLATION
Foreign currency transactions in the Fund are accounted for at exchange rates prevailing at the transaction
dates. Foreign currency monetary assets and liabilities are translated at exchange rates prevailing as at the
date of the statement of financial position. Exchange differences arising from the settlement of foreign
currency transactions and from the translation of foreign currency monetary assets and liabilities are
included in the statement of comprehensive income.
Gains or losses from the changes in fair value of the investments including the effects of currency translation
are presented in the statement of comprehensive income in the financial period in which they arise.
The principal closing rate used in the translation of foreign currency amount is as follows:
Foreign currency
1 Singapore Dollar
17
2011
RM
2010
RM
2.474
═════════
2.322
═════════
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
G
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
(i)
Classification
The Fund designates its investment in equity 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.
(ii)
Recognition and measurement
Regular way 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. Transaction costs are expensed in the statement of comprehensive income.
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.
Gains or losses arising from changes in the fair value of the ‘financial assets at fair value through
profit or loss’ category are presented in the statement of comprehensive income within ‘net
gain/(loss) on financial assets at fair value through profit and loss ’ in the period in which they arise,
any unrealised gains however are not distributable.
Investment in collective investment scheme is valued at the last published NAV per unit at the date
of the statement of financial position.
H
OTHER ASSETS
Trade receivables and other financial assets are carried at amortised cost.
The Fund assesses at each reporting date whether there is any objective evidence that a financial asset is
impaired.
If any such evidence exists, the amount of impairment loss is measured as the difference between the
asset’s carrying amount and the present value of estimated future cash flows discounted at the financial
asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets
with the exception of trade receivables, where the carrying amount is reduced through the use of an
allowance account. When a trade receivable becomes uncollectible, it is written off against the allowance
account.
18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
H
OTHER ASSETS (CONTINUED)
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised, the previously recognised impairment
loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the
reversal date. The amount of reversal is recognised in statement of comprehensive income.
I
FINANCIAL LIABILITIES
Financial liabilities are classified according to the substance of the contractual arrangements entered into
and the definitions of a financial liability.
Financial liabilities, within the scope of FRS 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. Financial
liabilities are classified as other financial liabilities.
The Fund’s financial liabilities which include trade and other payables are recognised initially at fair value
plus directly attributable transaction costs and subsequently measured at amortised cost using the effective
interest method.
A financial liability is derecognised when the obligation under the liability is extinguished. Gains and losses
are recognised in statement of comprehensive income when the liabilities are derecognised, and through the
amortisation process.
J
AMOUNT DUE FROM/TO BROKERS
Amounts due from and to brokers 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 brokers. A provision for
impairment of amounts due from brokers is established when there is objective evidence that the Fund will
not be able to collect all amounts due from the relevant broker. Significant financial difficulties of the broker,
probability that the broker will enter bankruptcy or financial reorganisation, and default in payments are
considered indicators that the amount due from brokers 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.
K
CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash and bank balances, and deposits 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
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
L
CREATION AND CANCELLATION OF UNITS
The Fund issues cancellable units, which are cancelled at the holder’s option and are classified as equity.
Cancellable units can be put back to the Fund at any time for cash equal to a proportionate share of the
Fund’s NAV. The outstanding units are carried at the redemption amount that is payable as at the date of the
statement of financial position if the holder exercises the right to put the unit back to the Fund.
Units are created and cancelled at the holder’s option at prices based on the Fund’s NAV per unit at the time
of creation or cancellation. The Fund’s NAV is calculated by dividing the net assets attributable to
Unitholders with the total number of outstanding units.
M
PROCEEDS AND PAYMENTS ON CREATION AND CANCELLATION OF UNITS
The NAV per unit is computed for each dealing day. The price at which units are created or cancelled is
calculated by reference to the NAV per unit as at the close of business on the relevant dealing day. Units in
the Fund are classified as equity in the statement of financial position and are stated at fair value
representing the price at which Unitholders can redeem the units from the Fund.
N
SEGMENT REPORTING
A business segment is a group of assets and operations engaged in providing products or services that are
subject to risks and returns that are different from those of other business segments. A geographical
segment is engaged in providing products or services within a particular economic environment that are
subject to risks and returns that are different from those of segments operating in other economic
environments.
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.
20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
O
FINANCIAL INSTRUMENTS
Financial instruments comprise financial assets and financial liabilities. Fair value is the amount at which a
financial asset could be exchanged or a financial liability settled, between knowledgeable and willing parties
in an arm’s length transaction. The information presented herein represents the estimates of fair values as at
the statement of financial position date.
Where available, quoted and observable market prices are used as the measure of fair values. Where such
quoted and observable market prices are not available, fair values are estimated based on a range of
methodologies and assumptions regarding risk characteristics of various financial instruments, discount
rates, estimates of future cash flows and other factors. Changes in the uncertainties and assumptions could
materially affect these estimates and the resulting fair value estimates.
A range of methodologies and assumptions had been used in deriving the fair values of the Fund’s financial
instruments as at the statement of financial position date. The total fair value of each financial instrument is
not materially different from the total carrying value.
P
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN APPLYING ACCOUNTING POLICIES
The preparation of financial statements in conformity with the Financial Reporting Standards in Malaysia
requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and expenses during the financial
period. Although these estimates are based on the Manager’s best knowledge of current events and actions,
actual results could differ from those estimates.
Estimates and judgements 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.
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 Fund’s results and financial position
are tested for sensitivity to changes in the underlying parameters.
The Fund uses significant judgement in determining whether an investment is impaired. The Fund evaluates,
among other factors, the duration and extent to which the fair value of the investment is less than its initial
cost of investment, and the financial health and near-term business outlook for the investee, including factors
such as industry and sector performance, macroeconomic factors and speculation.
21
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011
1
INFORMATION ON THE FUND
The unit trust fund was constituted under the name HwangDBS Global Property Fund (the “Fund”) pursuant
to the execution of a Master Deed dated 20 March 2006, Second Supplemental Master Deed dated 18 June
2007 and Third Supplemental Master Deed dated 28 August 2008 (the “Deeds”) between HwangDBS
Investment Management Berhad (the “Manager”) and HSBC (Malaysia) Trustee Berhad (the “Trustee”).
The Fund commenced operations on 11 May 2006 and will continue its operations until terminated by the
Trustee as provided under Clause 12.1 of the Master Deed.
The Fund may invest in collective investment schemes, liquid assets, and any other investments not
otherwise prohibited by the SC from time to time for a feeder fund. All investments will be subjected to the
SC’s Guidelines on Unit Trust Funds, the Deeds and the objective of the Fund.
The main objective of the Fund, a feeder fund, is to provide investors with regular income distributions and
medium to long-term capital appreciation during the investment period by investing in a single collective
investment scheme that invest globally in real estate investment trusts (“REITs”), REITs type securities and
real estate securities.
The Manager is a company incorporated in Malaysia. The principal activities of the Manager are
establishment and management of unit trust funds.
2
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Fund is exposed to a variety of risks which include market risk (including price risk, interest risk, credit
risk), liquidity risk, currency risk, country risk and risk on changes in property regulation.
Note
RM
Loans and
receivables
RM
Asset at fair
value through
profit or loss
RM
Total
RM
310,607
180,606
────────
491,213
════════
73,462,343
────────
73,462,343
════════
73,462,343
310,607
180,606
────────
73,953,556
════════
31 August 2011
Financial assets at fair value through
profit or loss
Dividend and other receivables
Cash and cash equivalents
8
10
Total
All current liabilities are financial liabilities which are carried at amortised.
Financial risk management is carried out through internal control processes adopted by the Manager.
22
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
2
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
Market risk
(a)
Price risk
Price risk arises mainly for 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.
The table below shows the financial assets of the Fund as at 31 August 2011 which is exposed to
price risk.
2011
RM
Quoted Investment
Collective investment scheme designated at fair value
73,462,343
═════════
The following table summarises the sensitivity of the Fund’s investments to price risk movements as
at 31 August 2011. The analysis is based on the assumptions that the market price increased by 5%
and decreased by 5% with all other variables held constant and that fair value of the Fund’s
investment moved according to the historical correlation of the index. Disclosures below are shown
in absolute terms, changes and impacts could be positive or negative.
Change in
price
%
Impact on
profit before
tax
RM
Impact on net
asset value
RM
3,673,117
════════
3,673,117
════════
2011
Collective investment scheme
designated at fair value
(b)
5
Interest rate risk
The Fund’s exposure to the interest rate risk is mainly confined to short term placement with a
financial institution. The Manager overcomes this exposure by way of maintaining deposits on short
term basis.
23
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
2
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
(b)
Interest rate risk (continued)
The effective weighted average interest rate of deposits placement with a licensed financial
institution and unquoted fixed income securities per annum as at the date of the statement of
financial position are as follows:
2010
2011
%
%
Short term deposits with a licensed financial institution
═════════
2.65
═════════
The deposits have an average maturity of less than 1 year.
(c)
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 investment. The Manager manages the credit risk by
undertaking credit evaluation to minimise such risk.
Credit risk arising from placements on deposits in licensed financial institutions is managed by
ensuring that the Fund will only place deposits in reputable licensed financial institutions.
The maximum exposure to credit risk before any credit enhancements is the carrying amount of the
financial assets as set out below:
Collective
investment
scheme foreign
RM
Cash
balance
and deposits
RM
Other
assets
RM
Total
RM
73,462,343
────────
73,462,343
════════
180,606
────────
180,606
════════
310,607
────────
310,607
════════
73,462,343
180,606
310,607
────────
73,953,556
════════
As at 31 August 2011
DBS Global Property
Securities Fund
Finance
Others
24
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
2
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
(c)
Credit risk (continued)
Collective
investment
scheme foreign
RM
Cash
balance
and deposits
RM
Other
assets
RM
Total
RM
66,745,494
────────
66,745,494
════════
6,319,865
────────
6,319,865
════════
128
────────
128
════════
66,745,494
6,319,865
128
────────
73,065,487
════════
As at 31 August 2010
DBS Global Property
Securities Fund
Finance
Others
Liquidity risk
Liquidity risk is the risk that investments cannot be readily sold at or near its actual value without taking a
significant discount. This will result in lower NAV of the Fund. The Manager manages this risk by maintaining
sufficient level of liquid assets to meet anticipated payment and cancellations of unit by Unitholders, liquid
assets comprise cash, deposits with licensed financial institutions and other instruments, 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.
Within
one month
RM
More than
one month
RM
Total
RM
15,393
142,400
4,310
────────
162,103
════════
6,200
3,500
4,912
────────
14612
════════
15,393
142,400
4,310
6,200
3,500
4,912
────────
176,715
════════
As at 31 August 2011
Amount due to Manager
- management fee
- cancellation of units
Amount due to Trustee
Auditor’s remuneration
Tax agent’s fee
Other payables and accruals
25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
2
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
Currency risk
The investment is denominated in Singapore Dollars. As such, the foreign currency risks may have a
significant impact on the returns of the Fund. The Manager will evaluate the likely directions of the foreign
currency versus Ringgit Malaysia based on considerations of economic fundamentals such as interest rate
differentials, balance of payments position, debt levels, and technical chart considerations.
The following table sets out the foreign currency risk concentrations and counterparties of the Fund:
Collective
investment
scheme foreign
RM
Cash
balance
and deposits
RM
Other
assets
RM
Total
RM
73,462,343
────────
73,462,343
════════
180,606
────────
180,606
════════
309,683
924
────────
310,607
════════
73,772,026
181,530
────────
73,953,556
════════
As at 31 August 2011
Singapore
Malaysia
The table below summarises the sensitivity of the Fund's investments fair value to changes in foreign
exchange movements as at 31 August 2011. The analysis is based on the assumption that the foreign
exchange rate changes by 5%, with all other variables remain assumption that the foreign exchange rate
changes by 5%, with all other variables remain constants. This represents management's best estimate of a
reasonable possible shift in the constants. This represents management's best estimate of a reasonable
possible shift in the foreign exchange rate, having regard to historical volatility of this rate. Any
increase/decrease in foreign exchange rate will result in a corresponding decrease/increase in the net
assets attributable to unit holders by approximately 5%. Disclosures below are shown in absolute terms,
changes and impacts could be positive or negative.
Change in
price
%
Impact on
profit before
tax
RM
Impact on net
asset value
RM
3,688,601
════════
3,688,601
════════
2011
Singapore Dollar
5
26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
2
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
Country risk
The Fund invests wholly in another single collective investment scheme exposed to a particular country. This
would imply that the feeder fund takes all the risk associated with the target fund since an adverse effect on
the target fund would similarly cause an adverse effect to the feeder fund. However, by virtue of the target
fund investing in a diversified portfolio of equities primarily in the United States, Australia, the European
Union and Asia, the exposure to a particular country is mitigated.
Risk on changes in property regulation
Any material changes in rent regulation and an increase in the property taxes in respective countries would
cause an adverse impact on the income of investments, thus, affecting the value of the Fund.
3
NET FOREIGN CURRENCY EXCHANGE LOSSES
Realised foreign currency exchange gains
Unrealised foreign currency exchange losses
4
2011
RM
2010
RM
────────
════════
123,502
(5,883,735)
────────
(5,760,233)
════════
MANAGEMENT FEE
In accordance with the Master Deed, the Manager is entitled to a management fee at a rate not exceeding
3.00% per annum on the NAV of the Fund calculated on daily basis.
For the financial year ended 31 August 2011, the management fee is recognised at a rate of 1.75% (2010:
1.75%) per annum on the NAV of the Fund calculated on daily basis.
There will be no further liability to the Manager in respect of management fee other than the amounts
recognised above.
27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
5
TRUSTEE FEE
In accordance with the Master Deed, the Trustee is entitled to an annual fee at a rate not exceeding 0.30%
per annum of the NAV of the Fund, subject to a minimum fee of RM18,000 per annum.
For the financial year ended 31 August 2011, the Trustee fee is recognised at a rate of 0.07% (2010: 0.07%)
per annum of the NAV of the Fund, inclusive of local custodian fees but exclusive of foreign sub-custodian
fees, subject to a minimum fee of RM18,000 per annum, 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.
6
FINANCE COST – DISTRIBUTION
2011
RM
2010
RM
Distribution to Unitholders is from the following sources:
Dividend income
Interest income
Previous year’s realised income
Gross realised income
Less: Expenses
Gross and net distribution per unit (sen)
Ex-dates
900,000
31,476
2,383,238
────────
3,314,714
(79,955)
────────
3,234,759
════════
314,744
1,194
7,543,125
────────
7,859,063
(183,195)
────────
7,675,868
════════
1.01
════════
2.50
════════
20.12.2010
and
31.3.2011
════════
16.11.2009
12.2.2010
and
17.5.2010
════════
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 the distribution for the financial year is an amount of RM2,383,238 (2010: RM7,543,125) made
from previous year’s realised income.
28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
7
TAXATION
The numerical reconciliation between net income/(loss) before finance cost and taxation multiplied by the
Malaysian statutory tax rate and tax expense of the Fund is as follows:
Net income/(loss) before finance cost and taxation
Tax at Malaysian statutory rate of 25% (2010: 25%)
Tax effects of:
Income exempt from tax
Net realised losses on sale of investments
not deductible for tax purposes
Net foreign currency exchange (gains)/losses
(exempt from tax)/not deductible for tax purposes
Net loss on financial assets at fair value through
profit or loss not deductible for tax purposes
Expenses not deductible for tax purposes
2010
RM
6,587,942
─────────
(7,579,989)
─────────
1,646,986
(1,894,997)
(581,641)
(863,085)
437,348
1,251,837
(1,891,970)
319,409
69,868
─────────
═════════
Tax expense
8
2011
RM
1,440,058
66,187
─────────
═════════
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
2011
RM
Designated at fair value through profit or loss at inception
- Collective investment scheme - foreign
Net gain on assets at fair value through profit or loss
- Realised gain on disposal
- Change in unrealised fair value gain
73,462,343
═════════
(1,295,184)
5,836,035
─────────
4,540,851
═════════
29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
8
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)
(a)
Collective investment scheme - foreign
(i)
Collective investment scheme - foreign as at 31 August 2011 is as follows:
Name of counter
Quantity
Aggregate
cost
RM
Fair value
as at
31.8.2011
RM
% value of
the Fund
%
110,805,734
73,462,343
99.57
SINGAPORE
DBS Global Property Securities
Fund
46,903,873
Net unrealised losses on change in
value of investment
Effects of foreign currency
exchange
Fair value of collective
investment scheme - foreign
9
(45,215,236)
7,871,845
73,462,343
INVESTMENT
(a)
Collective investment scheme-foreign
(i)
Collective investment scheme - foreign as at 31 August 2010 is as follows:
Name of counter
Quantity
Aggregate
cost
RM
Market
value
as at
31.8.2010
RM
% value of
the Fund
%
SINGAPORE
DBS Global Property Securities
Fund
Fair value reserve
Effects of foreign currency
exchange
Market value of collective
investment scheme - foreign
45,628,678
109,923,133
(43,937,598)
759,959
66,745,494
30
66,745,494
91.59
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
10
CASH AND CASH EQUIVALENTS
Cash and bank balances:
Local
Foreign
Short term deposits with a licensed financial institution
2011
RM
2010
RM
180,606
─────────
180,606
─────────
180,606
═════════
12,940
5,426,357
─────────
5,439,297
880,568
─────────
6,319,865
═════════
180,606
─────────
180,606
═════════
893,508
5,426,357
─────────
6,319,865
═════════
The currency exposure profile of cash and cash equivalents
is as follows:
Ringgit Malaysia
Singapore Dollar
The effective weighted average interest rate for short term deposits is presented in Note 2 to the financial
statements.
11
RECEIVABLES
Interest receivable
- short term deposits
Amount due from Manager
- creation of units
Amount due from broker
31
2011
RM
2010
RM
-
128
924
309,683
─────────
310,607
═════════
─────────
128
═════════
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
12
UNITHOLDERS’ CAPITAL
NAV attributable to unitholders is represented by:
2011
RM
2010
RM
122,730,486
(48,953,645)
─────────
73,776,841
═════════
125,179,022
(8,369,230)
(43,937,598)
─────────
72,872,194
═════════
Note
Unitholders’ Capital
Retained Earnings
Reserve
(a)
(a)
UNIT HOLDERS’ CONTRIBUTION/ UNITS IN CIRCULATION
No. of units
2011
RM
No. of units
2010
RM
313,747,000
125,179,022
267,432,000
113,530,585
Creation of units arising
from application during
the financial year
53,672,309
13,634,845
59,521,044
14,816,789
Creation of units arising
from distribution during
the financial year
12,468,083
3,142,914
31,155,528
7,452,882
Cancellation of units during
the financial year
(75,407,392)
(19,226,295)
───────────
───────────
───────────
───────────
304,480,000
═══════════
122,730,486
═══════════
313,747,000
═══════════
125,179,022
═══════════
At the beginning of the
financial year
At the end of the
financial year
Approved size of Fund
700,000,000
═══════════
(44,361,572)
(10,621,234)
700,000,000
═══════════
In accordance with Clause 6.1 of the Master Deed, the Manager may increase the size of the Fund from time
to time upon approval of the Trustee and the SC. As at 31 August 2011, the number of units not yet issued is
395,520,000 (2010: 386,253,000).
32
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
13
TRANSACTIONS WITH BROKER
(i)
Details of transactions with the brokers for the financial year ended 31 August 2011 are as follows:
Value
of trade
RM
Percentage
of total trade
%
6,656,628
4,660,000
1,980,000
─────────
13,296,628
═════════
50.06
35.05
14.89
─────────
100.00
═════════
Name of brokers
Dexia Fund Services Singapore
Hong Leong Bank Bhd
OCBC Bank (M) Bhd
(ii)
Details of transactions with the brokers for the financial year ended 31 August 2010 are as follows:
Value
of trade
RM
Percentage
of total trade
%
50,960,000
11,887,711
1,300,000
─────────
64,147,711
═════════
79.44
18.53
2.03
─────────
100.00
═════════
Name of brokers
RHB Bank Bhd
Dexia Fund Services Singapore
OCBC Bank (M) Bhd
The transaction with Dexia Fund Services Singapore is in relation to purchase of DBS Global Property
Securities Fund.
There is no brokerage fees paid to the brokers.
33
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
14
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
HwangDBS Investment Management Berhad
The Manager
Hwang-DBS (Malaysia) Berhad
Holding company of the Manager
Non-Executive Chairman of Hwang-DBS
(Malaysia) Berhad
Non-Executive Chairman of the
holding company of the Manager
No. of units
2011
RM
No. of units
2010
RM
6,321
═════════
1,532
═════════
1,515
═════════
352
═════════
31,623
═════════
7,662
═════════
30,395
═════════
7,060
═════════
The Manager:
HwangDBS Investment
Management Berhad
(The units are held legally
for booking purposes)
Party related to the Manager:
Executive Chairman of Hwang-DBS
(Malaysia) Berhad
Dato’ Seri Hwang Sing Lue
(The units are held
beneficially)
15
MANAGEMENT EXPENSE RATIO (“MER”)
MER
34
2011
%
2010
%
0.34
═════════
0.35
═════════
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
15
MANAGEMENT EXPENSE RATIO (“MER”) (CONTINUED)
MER is derived from the following calculation:
MER
=
(A + B + C + D + E) x 100
───────────────────
F
A
B
C
D
E
F
=
=
=
=
=
=
Management fee
Trustee’s and custodian fees
Auditors’ remuneration
Tax agent’s fee
Other expenses
Average NAV of the Fund calculated on a daily basis
The average NAV of the Fund for the financial year calculated on a daily basis is RM81,437,843 (2010:
RM74,915,963).
16
PORTFOLIO TURNOVER RATIO (“PTR”)
PTR (times)
2011
2010
0.06
═════════
0.13
═════════
PTR is derived from the following calculation:
(Total acquisition for the financial year + total disposal for the financial year) ÷ 2
Average NAV of the Fund for the financial year calculated on a daily basis
where: total acquisition for the financial year = RM5,335,724 (2010: RM8,602,241)
total disposal for the financial year = RM4,453,124 (2010: RM11,392,590)
17
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.
35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
17
SEGMENT INFORMATION (CONTINUED)
The reportable operating segments derive their income by seeking investments to achieve targeted returns
consummate with an acceptable level of risk within each portfolio. These returns consist of dividend, interest
and gains on the appreciation in the value of investments.
There were no changes in the reportable segments during the period.
The segment information provided to the strategic allocation committee for the reportable segments is as
follows:
For the year ended 31 August 2011:
Collective
investment
scheme
portfolio
RM
Dividend Income
Interest income
Net realised losses on sale of investment
Net realised foreign currency exchange gains
2,280,699
45,863
(1,749,390)
454,206
────────
1,031,378
════════
Total segment gains
Collective
investment
scheme
portfolio
RM
Financial assets at fair value
Others
73,462,343
180,606
────────
73,642,949
════════
Total segment assets
36
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
17
SEGMENT INFORMATION (CONTINUED)
For the year ended 31 August 2010:
Collective
investment
scheme
portfolio
RM
Dividend Income
Interest income
Net realised losses on sale of investment
Net realised foreign currency exchange gains
3,354,540
97,801
(5,007,348)
123,502
────────
(1,431,505)
════════
Total segment loss
Collective
investment
scheme
portfolio
RM
Financial assets at fair value
Others
66,745,494
6,319,993
────────
73,065,487
════════
Total segment assets
A reconciliation of total net segmental income/(loss) to operating income/(loss) is provided as follows:
Total net segment income/(loss)
Net unrealised foreign currency exchange gains/(losses)
Net loss on financial asset at fair value through profit
or loss
Other fees and expenses
Operating profit/(loss)
Distribution to Unitholders
Income/(loss) before tax
Taxation
Income/(loss) for the year
37
2011
RM
2010
RM
1,031,378
7,113,672
(1,431,505)
(5,883,735)
(1,277,637)
(279,471)
─────────
6,587,942
(3,234,759)
─────────
3,353,183
─────────
3,353,183
═════════
(264,748)
─────────
(7,579,988)
(7,675,868)
─────────
(15,255,856)
─────────
(15,255,856)
═════════
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
17
SEGMENT INFORMATION (CONTINUED)
Reportable segments’ assets and liabilities are reconciled to total assets and total liabilities as follows:
Total segment assets
Other receivables
Total assets
Total segment liabilities
Other payables and accrued expenses
Total liabilities
2011
RM
2010
RM
73,642,949
310,607
─────────
73,953,556
═════════
73,065,487
─────────
73,065,487
═════════
176,715
─────────
176,715
═════════
193,293
─────────
193,293
═════════
The breakdown of the major components of income and assets from other countries are disclosed below. All
revenues are derived from financial assets and are attributed to a country based on the domiciliation of the
issuer of the instrument.
Singapore
RM
Malaysia
RM
Total
RM
985,515
73,462,343
═════════
45,863
180,606
═════════
1,031,378
73,642,949
═════════
Singapore
RM
Malaysia
RM
Total
RM
For the year ended 31 August 2011:
Segmental net gains
Segment assets at fair value
For the year ended 31 August 2010:
Segmental net loss
Segment assets at fair value
(1,529,306)
72,171,851
═════════
38
97,801
893,636
═════════
(1,431,505)
73,065,487
═════════
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
18
CHANGES IN ACCOUNTING POLICIES
(a)
Amendment FRS 132 “Financial Instruments: Presentation”
In the previous financial period, the Fund had classified its puttable instruments as liabilities in
accordance with FRS 132, 'Financial instruments: Presentation'. However, the FRS 132
(amendment), 'Financial instruments: Presentation', and FRS 101 (amendment), 'Presentation of
financial statements' - 'Puttable financial instruments and obligations arising on liquidation' (effective
from 1 January 2010) (the 'amendment') requires puttable financial instruments that meet the
definition of a financial liability to be classified as equity where certain strict criteria are met.
Those criteria include: (i) the puttable instruments must entitle the holder to a pro-rata share of net
assets; (ii) the puttable instruments must be the most subordinated class and that class's features
must be identical; (iii) there must be no contractual obligations to deliver cash or another financial
asset other than the obligation on the issuer to repurchase; and (iv) the total expected cash flows
from the puttable instrument over its life must be based substantially on the profit or loss of the
issuer. As a result, the prior year financial statements are restated from amounts previously reported
to conform with the amendment. The amendment has been applied retrospectively.
The Unitholders’ equity has the features and meets the conditions for classification as equity
instruments. Consequently, upon adoption of the amendments to FRS 132, unitholders’ equity
amounting to RM73,776,841 (31.8.2010: RM72,872,194, 31.8.2009: RM66,775,882) is reclassified
from financial liabilities to equity. Distributions made by the Fund are recognised as dividends in
equity in the period in which they are declared.
The effects as a result of adoption of the amendment on the statement of financial position for the
current and prior years are set out below.
As previously
stated
RM
31 August 2009
Financial liability
Adjustment
RM
As restated
RM
66,775,882
════════
(66,775,882)
════════
════════
────────
════════
113,530,585
6,886,627
(53,641,330)
────────
66,775,882
════════
113,530,585
6,886,627
(53,641,330)
────────
66,775,882
════════
72,872,194
════════
(72,872,194)
════════
════════
────────
════════
125,179,022
(52,306,828)
────────
72,872,194
════════
125,179,022
(52,306,828)
────────
72,872,194
════════
Unitholder’s capital
Retained Earnings
Fair value reserve
31 August 2010
Financial liability
Unitholder’s capital
Retained Earnings
39
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
18
CHANGES IN ACCOUNTING POLICIES (CONTINUED)
(a)
Amendment FRS 132 “Financial Instruments: Presentation” (continued)
Effect of changes in accounting policy on the statement of financial position as at 31 August
2011and statement of changes in equity for the period ended 31 August 2011 are set out below.
As previously
Adjustment
As restated
stated
RM
RM
RM
31 July 2011
Financial liability
Unitholder’s capital
Retained Earnings
(b)
73,776,841
════════
(73,776,841)
════════
════════
────────
════════
122,730,486
(48,953,645)
────────
73,776,841
════════
122,730,486
(48,953,645)
────────
73,776,841
════════
FRS 139 “Financial Instruments: Recognition and Measurement”
In the previous financial year, unrealised gains or losses from the financial instrument are
recognised in the statement of financial position as investments while the corresponding effect are
transferred to the fair value reserve included in the capital and reserves attributable to equity holders
of the fund.
However, the FRS 139 (new standard) ‘Financial Instruments: Recognition and Measurement’
(effective 1 January 2010) (the ‘standard’) requires the Fund to recognise all investments in its
statement of financial position as assets and shall measure them at fair value (except for a derivative
that is linked to and that must be settled by delivery of an unquoted equity instrument whose fair
value cannot be measured reliably) at the beginning of the financial period in which this standard is
initially applied. The unrealised gains or losses transferred to the fair value reserve in the previous
financial year shall be recognised as an adjustment of the balance of retained earnings at the
beginning of the financial year in which this Standard is initially applied (other than for a derivative
that is a designated hedging instrument).
The effects as a result of adoption of the new standard on the opening balances of the statement of
financial position at the beginning of the financial year are set out below.
As restated after
adoption of
amendments to
FRS 132 (Note
18(a))
RM
1 September 2010
Unitholders' capital
Retained earnings
Fair value reserve
125,179,022
(8,369,230)
(43,937,599)
─────────
72,872,194
═════════
40
Adjustment
RM
As restated
RM
(43,937,599)
43,937,599
─────────
═════════
125,179,022
(52,306,828)
─────────
72,872,194
═════════
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 (CONTINUED)
18
CHANGES IN ACCOUNTING POLICIES (CONTINUED)
(b)
FRS 139 “Financial Instruments: Recognition and Measurement” (continued)
Effect of changes in accounting policy on the statement of financial position as at 31 August 2011,
statement of comprehensive income and statement of changes in equity for the financial year ended
31 August 2011 are set out below.
Previous
accounting
policy
RM
Change in
accounting
policy
RM
Revised
accounting
policy
RM
110,805,734
═════════
(37,343,391)
═════════
73,462,343
═════════
-
(1,277,637)
7,865,579
═════════
(1,277,637)
═════════
Statement of Financial Position
Financial assets at fair value
through profit or loss
Statement of Comprehensive Income
Net unrealised gain on financial
assets at fair value through
profit or loss
Total comprehensive income
for the financial year
41
(1,277,637)
6,587,942
═════════
HWANGDBS GLOBAL PROPERTY FUND
STATEMENT BY THE MANAGER
We, Y.A.M. Tunku Dato’ Seri Nadzaruddin Ibni Almarhum Tuanku Ja’afar and Teng Chee Wai, as Directors
of HwangDBS Investment Management Berhad, do hereby state that in our opinion as the Manager, the
financial statements set out on pages 10 to 41 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 August 2011 and of its financial
performance, changes in equity and cash flows for the financial year ended 31 August 2011 in accordance
with the Financial Reporting Standards in Malaysia.
For and on behalf of the Manager,
HWANGDBS INVESTMENT MANAGEMENT BERHAD
Y.A.M. TUNKU DATO’ SERI NADZARUDDIN IBNI ALMARHUM TUANKU JA’AFAR
DIRECTOR
TENG CHEE WAI
EXECUTIVE DIRECTOR
Kuala Lumpur
24 October 2011
42
TRUSTEE’S REPORT TO THE UNITHOLDERS OF
HWANGDBS GLOBAL PROPERTY FUND
We have acted as Trustee of HwangDBS Global Property Fund (“the Fund”) for the financial year ended 31
August 2011. To the best of our knowledge, HwangDBS Investment Management Berhad (“the
Management Company”), has operated and managed the Fund in accordance with the following:(a)
limitations imposed on the investment powers of the Management Company and the Trustee under
the Deed, the Securities Commission’s Guidelines on Unit Trust Funds, the Capital Markets and
Services Act 2007, and other applicable laws;
(b)
valuation/pricing is carried out in accordance with the Deed and any regulatory requirements; and
(c)
creation and cancellation of units are carried out in accordance with the Deed and any regulatory
requirements.
During the financial year ended 31 August 2011, a total distribution of 1.01 sen per unit (gross) has been
distributed to the Unitholders of the Fund. We are of the view that the distribution is not inconsistent with the
objective of the Fund.
For HSBC (Malaysia) Trustee Berhad
Tan Bee Nie
Head, Trust Operations
Kuala Lumpur
24 October 2011
43
INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS OF
HWANGDBS GLOBAL PROPERTY FUND
REPORT ON THE FINANCIAL STATEMENTS
We have audited the financial statements of HwangDBS Global Property Fund, which comprise the
statement of financial position as at 31 August 2011, and the statement of comprehensive income, statement
of changes in equity and statement of cash flows for the financial year then ended and a summary of
significant accounting policies and other explanatory notes, as set out on pages 10 to 41.
Manager’s and Trustee’s Responsibility for the Financial Statements
The Manager of the Fund is responsible for the preparation financial statements that give a true and fair view
in accordance with Financial Reporting Standards (“FRS”) in Malaysia, and for such internal control as the
Manager determines necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on our judgment, including the assessment of risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, we consider internal control relevant to the Fund’s preparation of financial statements that give
a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the Manager’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by the Manager, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
44
INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS OF
HWANGDBS GLOBAL PROPERTY FUND (CONTINUED)
REPORT ON THE FINANCIAL STATEMENTS (CONTINUED)
Opinion
In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting
Standards in Malaysia so as to give a true and fair view of the financial position of the Fund as of 31 August
2011 and of its financial performance and cash flows for the financial year then ended.
OTHER MATTERS
This report is made solely to the Unitholders of the Fund and for no other purpose. We do not assume
responsibility to any other person for the content of this report.
PRICEWATERHOUSECOOPERS
(No. AF: 1146)
Chartered Accountants
Kuala Lumpur
24 October 2011
45
SALES OFFICE AND CORPORATE DIRECTORY
HEAD OFFICE
HwangDBS Investment Management Berhad
Suite 11-01, 11th Floor
Menara Keck Seng
203, Jalan Bukit Bintang
55100 Kuala Lumpur.
Tel : 03 – 2142 1881
Fax : 03 – 2141 1886 / 2143 1881
Toll free no : 1-800-88-7080
Email :[email protected]
HwangDBS Investment Bank Berhad
7th, 22nd 23rd, 23A Floor
Menara Keck Seng
203, Jalan Bukit Bintang
55100 Kuala Lumpur
Tel : 03 – 2711 6888
Fax : 03 – 2711 3928
PENANG
HwangDBS Investment Management Berhad
4th Floor, Mutiara I&P
47, Green Hall
10200 Penang
Tel : 04 – 261 5679
Fax : 04 – 263 1226
HwangDBS Investment Bank Berhad
No.s. 2 & 4, Jalan Perda Barat,
Bandar Perda,
14000 Bukit Mertajam, Penang.
Tel : 04 – 537 2882
Fax : 04 – 537 5228
KEDAH
HwangDBS Investment Bank Berhad
70A, B & C Jalan Mawar 1
Taman Pekan Baru
08000 Sungai Petani, Kedah.
Tel : 04 – 425 6666
Fax : 04 – 421 2288
PERAK
HwangDBS Investment Management Berhad
22 Persiaran Greentown 1
Greentown Business Centre
30450 Ipoh
Perak Darul Ridzuan.
Tel : 05 – 241 0668
Fax : 05 – 255 9696
HwangDBS Investment Bank Berhad
22 Persiaran Greentown 1
Greentown Business Centre
30450 Ipoh
Perak Darul Ridzuan.
Tel : 05 – 255 9988
Fax : 05 – 255 0988
HwangDBS Investment Bank Berhad
21 Jalan Stesen
Tingkat Bawah, Aras 1, 2 & 3
34000 Taiping
Perak Darul Ridzuan.
Tel : 05 – 806 6688
Fax : 05 – 808 9229
KUALA LUMPUR
HwangDBS Investment Bank Berhad
2nd Floor Bangunan AHP
2, Jalan Tun Mohd Fuad 3
Taman Tun Dr Ismail
60000 Kuala Lumpur.
Tel : 03 – 7710 6688
Fax : 03 – 7710 6699
46
SALES OFFICE AND CORPORATE DIRECTORY
(CONTINUE)
KUALA LUMPUR (CONTINUED)
HwangDBS Investment Bank Berhad
34-5, 5th Floor
Cheras Commercial Centre
Jalan 5/101C Off Jalan Kaskas
5th Mile Cheras
56100 Kuala Lumpur.
Tel : 03 – 9130 3399
Fax : 03 – 9130 2299
SELANGOR
HwangDBS Investment Bank Berhad
th
th
th
16 , 18 – 20 , Plaza Masalam
2, Jalan Tengku Ampuan Zabedah E9/E
Section 9, 40100 Shah Alam
Selangor Darul Ehsan.
Tel : 03 – 5513 3288
Fax : 03 – 5513 8288
HwangDBS Investment Bank Berhad
East Wing & Centre Link
Floor 3A Wisma Consplant 2
No. 7, Jalan SS16/1
47600 Subang Jaya
Selangor Darul Ehsan.
Tel : 03 – 5635 6688
Fax : 03 – 5636 2288
NEGERI SEMBILAN
HwangDBS Investment Bank Berhad
1st Floor, 105, 107 & 109 Jalan Yam Tuan
70000 Seremban
Negeri Sembilan.
Tel : 06 – 761 2288
Fax : 06 – 761 4228
HwangDBS Investment Bank Berhad
No. 6, Tingkat Atas
Jalan Mahligai
72100 Bahau
Negeri Sembilan
Tel : 06 – 455 3188
Fax : 06 – 455 3288
JOHOR
HwangDBS Investment Management Berhad
st
1 Floor, Lot 93
Jalan Molek 1/29, Taman Molek
81100 Johor Bahru
Johor.
Tel : 07 – 351 5977
Fax : 07 – 351 5377
HwangDBS Investment Bank Berhad
Level 7, Johor Bahru City Square (Office Tower)
No. 106-108, Jalan Wong Ah Fook
80000 Johor Bahru
Johor
Tel : 07 – 222 2692 / 276 8787
Fax : 07 – 276 5201
SARAWAK
HwangDBS Investment Management Berhad
st
No. 25, 1 Floor, Jalan Pertanak
Kuching Travilion Commercial Centre
93100 Kuching
Sarawak.
Tel : 082 – 233 320
Fax : 082 – 233 663
47
SALES OFFICE AND CORPORATE DIRECTORY
(CONTINUE)
SARAWAK (Continue)
HwangDBS Investment Bank Berhad
Lot 328, Jalan Abell
93100 Kuching
Sarawak
Tel : 082 – 236 999
Fax : 082 – 426 999
HwangDBS Investment Bank Berhad
No. 282, 1st Floor
Park City Commercial Centre
Phase 4, Jalan Tun Ahmad Zaidi
97000 Bintulu
Sarawak
Tel : 086 – 330 008
Fax : 086 – 336 008
SABAH
HwangDBS Investment Management Berhad
Lot No. B-2-09, 2nd Floor
Block B, Warisan Square
Jalan Tun Fuad Stephens
88000 Kota Kinabalu
Sabah.
Tel : 088 – 252 881
Fax : 088 – 288 803
HwangDBS Investment Bank Berhad
Suite 1-9-E1
9th Floor, CPS Tower
Centre Point Sabah
No. 1 Jalan Centre Point
88000 Kota Kinabalu
Sabah
Tel : 088 – 311 688
Fax : 088 – 318 996
48
HwangDBS Investment Management Berhad (429786 T)
Suite 11-01, 11th Floor, Menara Keck Seng,
203, Jalan Bukit Bintang, 55100 Kuala Lumpur.
Toll Free Line: 1-800-88-7080
Tel : 03-2142 1881 / 03-2116 6000
Fax : 03-2116 6100
E mail: [email protected]
Website: www.hdbsim.com.my

Similar documents