manulife investment...manulife global fund - american growth fund (the “target fund”), while...

MANULIFE INVESTMENTU.S. EQUITY FUND

CONTENTS

1

2

3

4

5

6

7

8

9

10

11

12

General Information

Manager’s Report

Policy On Stockbroking Rebates And So� Commissions

Statement By The Manager

Trustee’s Report

Statement Of Comprehensive Income

Statement Of Financial Position

Statement Of Changes In Net Assets A�ributable To Unit Holders

Statement Of Cash Flows

Summary Of Signi�cant Accounting Policies

Notes To The Financial Statements

Corporate Information

1

2

9

10

11

12

13

14

15

16

22

32

PAGE

1.1 THE TRUST

The Fund commenced operations on 21 October 2009 and will continue its operations until terminated as provided under Clause 12 of the Deed.

1.2 FUND TYPE / CATEGORY

Growth / Feeder Fund (Equity)

1.3 BASE CURRENCY

US Dollar (USD)

1.4 OBJECTIVE OF THE FUND

The Fund seeks to achieve capital appreciation over the medium- to long-term by investing in Manulife Global Fund – U.S. Equity Fund*.

*formerly known as Manulife Global Fund – American Growth Fund.

Note: Any material change to the Fund’s investment objective would require Unit Holders’ approval.

1.5 DISTRIBUTION POLICY

Distribution of income, if any, is incidental. 1.6 PERFORMANCE BENCHMARK

S&P500 Index, which is also the performance benchmark of the Target Fund.

The benchmark above is only used as a reference for investment performance comparison purpose. The risk pro�le of the Fund is not the same as the risk pro�le of this benchmark. Thebenchmark information is available in www.manulifeinvestment.com.my.

1.7 INVESTMENT STYLE AND STRATEGY

The Fund will invest at least 95% of the Fund’s net asset value (NAV) in Share Class I3 of the Manulife Global Fund – U.S. Equity Fund* (the Target Fund), while the balance of the Fund’s NAV will be invested in cash, money market instruments (including �xed income securities which have a remaining maturity period of less than 365 days) and/or placement of deposits with �¬nancial institutions for liquidity purposes.

Although the Fund is passively managed, the investments of the Fund will be rebalanced from time to time to meet redemptions and to enable the proper and e�cient management of the Fund. In all circumstances, the Fund will continue investing at least 95% of its NAV in the Target Fund and as such, the performance of the Target Fund will re�ect on the Fund’s performance.

Notwithstanding the above, the Manager may, in consultation with the Trustee and with the Unit Holders’ approval, replace the Target Fund with another fund of a similar objective if, in the Manager’s opinion, the Target Fund no longer meets this Fund’s investment objective, or when the Target Fund no longer acts in the interest of the Unit Holders.

During the six-month �nancial period under review, the Fund remained guided by its investment objective, having invested at least 95% of its NAV in the Target Fund and with the balance NAV in cash and money market instruments.


1 GENERAL INFORMATION

1

Note: The �rst subscription of the RM-Hedged Class was made on 3 December 2018, being the commencement date.

USD Class

Note: There are no data for the USD Class as the Fund has yet to receive any subscriptions.


2

2 MANAGER’S REPORT2.1 FUND PERFORMANCE

For the six-months �nancial period ended 30 November 2020, the Feeder Fund posted a) 14.15% return versus its benchmark return of 11.48% for its RM Class; and b) 21.48% return versus its benchmark return of 18.96% for its RM-Hedged Class. The Feeder Fund outperformed the benchmark by 2.67% and 2.52% for its RM Class and RM-Hedged Class respectively. The outperformance numbers were mainly due to stock selection at the Target level, primarily in the Energy, Information Technology and Financials sectors.

The graph below compares the 6-month performance of the Fund against its benchmark return:

Source: Lipper, Bloomberg & RIMES

Manulife Investment U.S. Equity Fund - RM Class Fund ReturnBenchmark Index Return

Fund Performance vs. Benchmark Index Return

RM Class

16%14%12%10%8%6%4%2%0%

May20

Jun20

Jul20

Aug20

Sep20

Oct20

Nov20


Manulife Investment U.S. Equity Fund - RM-Hedged Class Fund ReturnBenchmark Index Return


RM-Hedged Class

25%

20%

15%

10%

5%

0%May20

Jun20

Jul20

Aug20

Sep20

Oct20

Nov20


USD Class



Manulife Investment U.S. Equity Fund - RM Class Fund ReturnBenchmark Index Return


RM Class

80%70%60%50%40%30%20%10%0%

-10%-20%

Nov

-15

May

-16Ju

l-16

Sep-

16N

ov-16

Jan-

16M

ar-16

May

-17Ju

l-17

Sep-

17N

ov-17

Jan-

17M

ar-17

May

-18Ju

l-18

Sep-

18N

ov-18

Jan-

18M

ar-18

May

-19Ju

l-19

Sep-

19N

ov-19

Jan-

19M

ar-19

May

-20

Jul-2

0Se

p-20

Nov

-20

Jan-

20M

ar-2

0

Fund Size

The Fund’s total NAV increased to USD10.60mil from USD8.72mil during the six-month �nancial period under review.

Fund Returns

(a) The graph below compares the 5-year performance of the Fund against its benchmark return:


3


Manulife Investment U.S. Equity Fund - RM-Hedged Class Fund ReturnBenchmark Index Return


RM-Hedged Class

50%

40%

30%

20%

10%

0%

-10%

-20%

Dec-

18Ja

n-19

Feb-

19M

ar-19

Apr-1

9M

ay-19

Jun-

19Ju

l-19

Aug-

19Se

p-19

Oct-1

9N

ov-19

Dec-

19Ja

n-20

Feb-

20M

ar-2

0Ap

r-20

May

-20

Jun-

20Ju

l-20

Aug-

20Se

p-20

Oct-2

0N

ov-2

0N

ov-2

0


USD Class



USD Class


(c) Annual Total Return of the Fund:



4

(b) Average Total Return of the Fund:

For the �nancial period ended 30 November 2020

RM Class

Fund(% p.a.)

Benchmark(% p.a.)

1 year 14.7512.6411.00

12.4710.8710.71

3 year5 yearsCommencement Date: 21 October 2009


For the �nancial period ended 30 November 2020

RM-Hedged Class

Fund(% p.a.)

Benchmark(% p.a.)

1 year 17.2320.13

15.3013.99Since Commencement

Commencement Date: 3 December 2018


For the �nancial period ended:

RM-Hedged Class

Fund(% p.a.)

Benchmark(% p.a.)

30 November 2020 17.2322.92

15.3012.57Since Commencement to 30 November 2019

Commencement Date: 3 December 2018


For the �nancial period ended:

RM Class

Fund(% p.a.)

Benchmark(% p.a.)

31 November 2020 14.7515.098.219.627.58

12.4713.586.6710.2610.70

31 November 201931 November 2018

31 November 2016Commencement Date: 21 October 2009

31 November 2017

Total Fund’s Return

NAV Return

Income Return

Average Total Return

=

=

=

=

[(NAV Return*Series of Income Return)-1] x 100%

{[End NAV (Ex-distribution)/Beginning NAV]-1} x 100%

(Gross Distribution/Ex-NAV price) x 100%

(NAV Return*Series of Income Return) (365.25/n) x100 - 100,where n = number of days between beginning and end dates.

BASES OF CALCULATION

Net Asset Value (NAV)Net Asset Value of the Fund is determined by deducting the value of all the Fund’s liabilities from the value of all the Fund’s assets, at the valuation point.

Net Asset Value per unitNet Asset Value per unit is the net asset value of the Fund divided by the total number of units in circulation, at the valuation point.

Fund’s ReturnThe total Fund’s return comprises both NAV return and Income return. The returns can be calculated based on the computation methods as follows:

1.

2.

3.

The following table shows other �nancial and performance data of the Fund for the past three �nancial periods:

Fund DataNet Asset Value (USD)RM Class RM-Hedged Class USD Class

Management Expenses Ratio (%) 0.950.65

0.64Portfolio Turnover Ratio (times) 0.64

30 November 2020 30 November 2018

1.030.37

30 November 2019

10,192,046412,419

-

7,954,432--

9,360,87857,465

-Units in Circulation (’000)RM Class RM-Hedged Class USD Class

60,5522,331

-

59,830--

65,408390

-NAV (per unit)-in respective currenciesRM Class RM-Hedged Class USD Class

0.68550.7205

-

0.5560--

0.59740.6146

-

Total Fund Return (%) - RM Class NAV Return (%) Income Return (%)

14.1514.15

-

8.648.64

-

13.6413.64

-

Total Fund Return (%) - USD Class NAV Return (%) Income Return (%)

---

---

---

Total Fund Return (%) - RM-Hedged Class NAV Return (%) Income Return (%)

21.4821.48

-

---

14.2614.26

-

Highest / Lowest NAV (per unit)-in respective currenciesRM Class RM-Hedged Class USD Class

0.6873/0.59310.7235/0.5931

-

0.5706/0.5127--

0.5978/0.52120.6154/0.5346

-


5

2.2 ASSET ALLOCATION

Asset allocation of the Fund for the past three �nancial periods:

As at 30 November 2020, the Fund was 97.08% invested in collective investment scheme and 2.92% in cash instruments.

Other Assets & Liabilities 2.98 4.81

% of Net Asset Value

Sector Allocation 30 November 2019 30 November 2018

2.92

Collective Investment Scheme 97.02 95.1997.08

30 November 2020

The Manager wishes to highlight that past performance of the Fund is not an indication of its future performance.

The price of units and the investment returns may go down as well as up.

(ii) Portfolio Turnover Ratio (PTR)

PTR is computed based on the average of the acquisitions and disposals of investments of the unit trust fund for the �nancial period divided by the average fund size calculated on a daily basis.

[Total acquisitions of the fund for the period+ Total disposals of the fund for the period]/2

Average value of the unit trust fund calculated on a daily basis

The PTR for the �nancial period is higher as compared to the previous �nancial period mainly due to the increase in trading activities.

MER can be calculated based on the ratio of the sum of fees and the recovered expenses of the unit trust fund to the average value of the unit trust fund calculated on a daily basis.

Fees of the unit trust fund + Recovered expenses of the unittrust fund

Average value of the unit trust fund calculated on a daily basis

Where:

NOTES

(i) Management Expenses Ratio (MER)

The MER for the �nancial period is lower as compared to the previous �nancial period mainly due to increase in average NAV.

All ongoing fees deducted / deductible directly from the unit trust fund in respect of the period covered by the management expenses ratio, expressed as a �xed amount, calculated on a daily basis. This would include the annual management fee, the annual trustee fee and any other fees deducted / deductible directly from the unit trust fund;

All expenses recovered from/ charged to the unit trust fund, as a result of the expenses incurred by the operation of the unit trust fund, expressed as a �xed amount. This should not include expenses that would otherwise be incurred by an individual investor (e.g. brokerage, taxes and levies); and

The NAV of the unit trust fund, including unit trust net income value of the fund, less expenses on an accrued basis, in respect of the period covered by the management expenses ratio, calculated on a daily basis.

x 100

Fees

Recoveredexpenses

=

=

Averagevalue ofthe unittrust fund

=


6


7

Communication Services Information Technology Financials Consumer Discretionary Health Care Consumer Staples Energy Others Real Estate Industrials Materials UtilitiesCash

% of Net Asset Value

Sector Allocation 30 November 2019 30 November 2018

19.40 18.00 17.20 15.90 7.80 6.70 5.40 4.30 4.00

- - -

1.30

17.30 14.10 21.10 15.50 7.30 8.10 4.80 3.10

- 3.40

- -

5.30

14.20 14.40 14.50 10.70 18.30 7.20 4.50

- 1.20

10.70 2.00 0.901.40

30 November 2020

2.3 MARKET REVIEW

During the six months �nancial period under review (1st June 2020 to 30th November 2020), the S&P 500 Total Return Index rose by 19.98%.

In the month of June, the U.S. equity market posted a modest gain. The market rebounded further in November, as encouraging signs from states reopening their economies were countered by concerns regarding a resurgence in the Covid-19 infections and the pace of economic recovery. The Information Technology and Consumer Discretionary sectors led the way, while Utilities, Health Care and Energy stocks were laggards.

U.S. stocks rallied in July and August, buoyed by resilient consumer demand, gradual economic recovery and optimism around evolving solutions to treat and prevent the spread of Covid-19. In September, however, pro�t-taking by investors, concern over rising infection rates in parts of Europe and the U.S., and uncertainty around the upcoming U.S. Presidential election pressured returns. The S&P 500 index, nevertheless, �nished the third quarter in 2020 with a strong gain, led by returns in the more economically sensitive Consumer Discretionary, Industrials and Materials sectors and the secularly driven Information Technology sector. Conversely, energy stocks sank due to pressure on oil prices as the Covid-19 pandemic kept demand in check.

The U.S. equity market retreated in October before rebounding strongly in November. Electoral uncertainty and rising Covid-19 infection rates weighed on stocks early on. However, stocks surged in November, bene�ting from news that two COVID-19 vaccines in development had showed 90% or be�er e�cacy in trials and could begin distribution before year-end. Investors also responded favourably to the resolution of the U.S. presidential election and the prospect of a divided Congress reducing the likelihood of a disputed election and radical regulatory or tax changes. Within the S&P 500 Index, the Energy sector posted the biggest gain in November, with added strong advances from the Financials and Industrials sectors, all of which rose amid expectations of more normalized economic activity ahead.

2.3 MARKET OUTLOOK AND INVESTMENT STRATEGY

We believe we are in the early stage of the next economic cycle. The U.S. presidential election is behind us and indications so far are that the new administration could be more business-friendly than originally expected. Business fundamentals continue to improve, although the pace of economic recovery remains uncertain as we enter the di�cult winter months. However, we expect gradual normalisation of economic activity in 2021. Our strategy comprises a mix of secular, cyclical and stable growers, with notable overweight positions at in the Communication Services and Financials sectors.

Asset allocation of the Target Fund for the past three �nancial periods:

2.6 STATE OF AFFAIRS

NOTIFICATION OF CHANGES

A new Master Prospectus and First Supplemental Master Prospectus dated 10 August 2020were issued to make the following general and administrative updates:

• New company name of the Manager;• General and administrative updates such as branches of the Manager;• Revision to the switching fee;• Disclosure on other charges applicable in executing transactions.

The Master Prospectus and First Supplemental Master Prospectus dated 10 August 2020 are available in the company website: www.manulifeinvestment.com.my.

USD Class

Note : Note: There are no data for the USD Class as the Fund has yet to have any subscriptions.

2.5 BREAKDOWN OF UNIT HOLDINGS BY SIZE AS AT 30 NOVEMBER 2020

The following table presents the distribution of the Fund’s unit holders according to size of unit holdings:

Size of Holdings

RM Class

5,000 and below5,001 to 10,00010,001 to 50,00050,001 to 500,000Above 500,001Manager’s stockTotal 1,964 100.00 60,552 100.00

No. of UnitHolders

No. of UnitsHeld (’000)

% %

667

682

367

239

9

-

33.96

34.72

18.69

12.17

0.46

-

16,010

1,721

2,652

26,637

13,532

-

26.44

2.84

4.38

43.99

22.35

-

Size of Holdings

RM-Hedged Class

5,000 and below5,001 to 10,00010,001 to 50,00050,001 to 500,000Above 500,001Manager’s stockTotal 95 100.00 2,331 100.00

No. of UnitHolders

No. of UnitsHeld (’000)

% %

28

44

12

11

-

-

29.47

46.32

12.63

11.58

-

-

641

97

90

1,503

-

-

27.50

4.16

3.86

64.48

-

-


8


9

3 POLICY ON STOCKBROKING REBATES AND SOFT COMMISSIONSThe Management Company did not retain any rebates.

For the six months �nancial period ended of 30 November 2020, the Manager and its Fund Manager did not receive any rebates or so� commissions.


10

4 STATEMENT BY THE MANAGERWe, Edmond Cheah Swee Leng and Chong Soon Min, being two of the Directors of Manulife Investment Management (M) Berhad (“the Manager”), do hereby state that, in the opinion of the Manager, the unaudited �nancial statements comprising the statement of comprehensive income, statement of �nancial position, statement of changes in net assets a�ributable to unit holders, statement of cash �ows, summary of signi�cant accounting policies and notes to the �nancial statements, are drawn up in accordance with the provisions of the Deeds and give a true and fair view of the �nancial position of the Fund as at 30 November 2020 and of its �nancial performance, changes in net assets a�ributable to unit holders and cash �ows of the Fund for the six months �nancial period ended 30 November 2020 in accordance with the Malaysian Financial Reporting Standards (“MFRS”) and the International Financial Reporting Standards (“IFRS”).

For and on behalf of the ManagerMANULIFE INVESTMENT MANAGEMENT (M) BERHAD

EDMOND CHEAH SWEE LENGDIRECTOR

CHONG SOON MINDIRECTOR

Kuala Lumpur25 January 2021

We have acted as Trustee of Manulife Investment U.S. Equity Fund (“the Fund”) for the �nancial period ended 30 November 2020. To the best of our knowledge, Manulife Investment Management (M) Berhad (“the Management Company”), has operated and managed the Fund in accordance with the following:-

a)

b)

c)

For HSBC (Malaysia) Trustee Berhad

Tan Bee NieSenior Manager, Investment Compliance Monitoring

Kuala Lumpur25 January 2021


11

5 TRUSTEE'S REPORT

limitations imposed on the investment powers of the Management Company and the Trustee under the Deeds, the Securities Commission’s Guidelines on Unit Trust Funds, the Capital Markets and Services Act 2007 and other applicable laws;

valuation/pricing is carried out in accordance with the Deeds and any regulatory requirements; and

creation and cancellation of units are carried out in accordance with the Deeds and any regulatory requirements.

TO THE UNITHOLDERS OF MANULIFE INVESTMENT U.S. EQUITY FUND

6 STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS FINANCIAL PERIOD ENDED 30 NOVEMBER 2020

The accompanying summary of signi�cant accounting policies and notes to the �nancial statements form an integral part of these �nancial statements.

Note 2020 2019USD USD

INVESTMENT INCOME

Interest income Gross dividend income Net gain on �nancial assets at fair value through pro�t or loss Net gain / (loss) on forward foreign currency contracts Net foreign currency exchange loss

- 55,532

1,828,560

9,933 (29,409)

38 47,445

1,066,818

(317) (6,437)

6

1,864,616 1,107,547

EXPENSES

Manager’s fee Trustee’s fee Auditors’ remuneration Tax agent’s fee Other expenses

3 87,100 1,935

684 311

1,598

74,956 1,666 3,301 1,337 3,697

4

91,628 84,957

PROFIT BEFORE TAXATION 1,772,988 1,022,590

Pro�t a�er taxation is made up as follows:

Realised Unrealised

669,733 1,103,255

90,004 932,586

1,772,988 1,022,590

INCREASE IN NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS 1,772,988 1,022,590

TAXATION 5 - -


12

7 STATEMENT OF FINANCIAL POSITIONAS AT 30 NOVEMBER 2020


Note 30.11.2020 30.11.2019USD USDASSETS

Cash and cash equivalents Financial assets at fair value through pro�t or lossAmount due from Manager Amount due from dealer Derivative assets at fair value through pro�t or loss

8

6

7

392,446

10,294,469 86,493 12,122

2,812

539,910

9,137,450 110,504 211,467

-

TOTAL ASSETS 10,788,342 9,999,331

LIABILITIES

14,439 9,770

144,620 321

9,762

- 4,965

13,061

126,251

219,400 290

211,430

264 10,292

Amount due to Manager - Manager’s fee - Cancellation of units Amount due to manager of collective investment scheme - Purchases of collective investment scheme Amount due to TrusteeAmount due to dealer Derivative liabilities at fair value through pro�t or loss Other payables

79

2

TOTAL LIABILITIES (EXCLUDING NET ASSETS ATTRIBUTABLE TO UNIT HOLDER) 183,877 580,988

NET ASSET VALUE OF THE FUND 10,604,465 9,418,343

REPRESENTED BY:FAIR VALUE OF OUTSTANDING UNITS (USD)

- RM-CLASS - RM-HEDGED CLASS

10,192,046 412,419

9,360,878 57,465

10,604,465 9,418,343

NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS 10,604,465 9,418,343

NET ASSET VALUE PER UNIT (USD)

- RM-CLASS - RM-HEDGED CLASS

60,552,3802,331,401

65,408,077 390,357

62,883,781 65,798,434

UNITS IN CIRCULATION (UNITS)

- RM-CLASS

- RM-HEDGED CLASS

0.1683 0.1431

0.1769 0.1472

NET ASSET VALUE PER UNIT IN RESPECTIVE CURRENCIES

- RM-CLASS

- RM-HEDGED CLASS

0.6855 0.5974

0.7205 0.6146


13

30.11.2020 30.11.2019USD USD

NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS AT THE BEGINNING OF THE FINANCIAL PERIOD

NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS AT THE END OF THE FINANCIAL PERIOD

Movement due to units created and cancelled during the �nancial period:

Creation of units arising from applications - RM Class - RM-Hedged Class

Cancellation of units - RM Class - RM-Hedged Class

Increase in net assets a�ributable to unit holders during the �nancial period

5,876,864 1,000,858

(6,082,443) (686,971)

1,772,988

4,099,300 93,752

(3,400,889) (48,908)

1,022,590

10,604,465 9,418,343

8,723,169 7,652,498


8 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS

FOR THE SIX MONTHS FINANCIAL ENDED 30 NOVEMBER 2020


14


9 STATEMENT OF CASH FLOWSFOR THE SIX MONTHS FINANCIAL ENDED 30 NOVEMBER 2020

Note 2020 2019USD USD

CASH FLOWS FROM OPERATING ACTIVITIESPurchase of investments Sale of investments Net realised foreign exchange loss Dividends received Interest income receivedManager’s fee paid Trustee’s fee paid Audit fee paid Tax agent’s fee paid Payment for other fees and expenses

(6,687,712) 7,156,783 (22,248)

55,532 -

(294,885) (1,892) (1,350)

(127) (1,340)

(3,165,370) 3,218,490

(6,754) 47,445

38 (74,755)

(1,662) (1,813)

(123) (390,589)

Net cash generates from/ (used in) operating activities 202,761 (375,093)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from creation of units Payments for cancellation of units

7,168,211 (7,258,677)

4,828,992 (4,205,693)

Net cash (used in) /generated from �nancing activities (90,466) 623,299

Net increase in cash and cash equivalents Currency translation di�erences Cash and cash equivalents at the beginning of the �nancial period

112,295 -

280,151

248,206 (25,278)

316,982

Cash and cash equivalents at the end of the �nancial period 8

8

392,446 539,910

Cash and cash equivalents comprise: Bank balances in licensed banks 392,446 539,910


15

The following accounting policies have been used consistently in dealing with items which are considered material in relation to the �nancial statements. The policies have been consistently applied to all the �nancial periods presented, unless otherwise stated.

The unaudited �nancial statements of the Fund have been prepared in accordance with the Malaysian Financial Reporting Standards (“MFRS”) and the International Financial Reporting Standards (“IFRS”). The �nancial statements have been prepared under the historical cost convention, as modi�ed by �nancial assets at fair value through pro�t or loss.

The preparation of �nancial statements in conformity with MFRS and IFRS requires the use of certain critical accounting estimates and assumptions that a�ect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the �nancial statements, and the reported amounts of revenues and expenses during the reported �nancial period. It also requires the Manager to exercise judgement in the process of applying the Fund’s accounting policies. Although these estimates and judgement are based on the Manager’s best knowledge of current events and actions, actual results may di�er. There are no signi�cant areas of judgement or complexity that have signi�cant e�ect on the amounts recognised in the �nancial statements.There are no critical accounting estimates and assumptions used in the preparation of the �nancial statements of the Fund for the six month period ended 30 November 2020.

Standards, amendments to published standards and interpretations that are e�ective :

The Fund has applied the following amendments for the �rst time for the �nancial period beginning on 1 December 2019:

•

There are no other standards, amendments to standards or interpretations that are e�ective for annual periods beginning on 1 December 2019 that have a material e�ect on the �nancial statements of the Fund.

Amendments and interpretations which are relevant to the Fund but not yet e�ective and have not been early adopted are as follows:

Financial period beginning on/a�er 1 December 2020

•

Amendments to MFRS 112 'Income Taxes' (e�ective from 1 January 2019) clarify that where income tax consequences of dividends on �nancial instruments classi�ed as equity is recognised (either in pro�t or loss, other comprehensive income or equity) depends on where the past transactions that generated distributable pro�ts were recognised.

Accordingly, the tax consequences are recognised in pro�t or loss when an entity determines payments on such instruments are distribution of pro�ts (that is, dividends). Tax on dividends should not be recognised in equity merely on the basis that it is related to a distribution to owners.

The Conceptual Framework for Financial Reporting (''Framework'') (e�ective 1 January 2020).

The Framework was revised with the primary purpose to assist the International Accounting Standards Board (''IASB'') to develop IFRS that are based on consistent concepts and enable preparers to develop consistent accounting policies where an issue is not addressed by an IFRS.

A BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

10 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESFOR THE SIX MONTH FINANCIAL ENDED 30 NOVEMBER 2020


16

Key changes include:

•••••••

No changes will be made to any of the current accounting standards. However, entities that rely on the Framework in determining their accounting policies for transactions, events or conditions that are not otherwise dealt with under the accounting standards will need to apply the revised Framework from 1 December 2020.

(i) Classification The Fund classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value through profit or loss and• those to be measured at amortised cost

The Fund classifies its investments based on both the Fund’s business model for managing those financial assets and the contractual cash flow characteristics of the financial assets. The portfolio of financial assets is managed and performance is evaluated on a fair value basis. The Fund is primarily focused on fair value information and uses that information to assess the assets’ performance and to make decisions. The Fund has not taken the option to irrevocably designate equity securities as fair value through other comprehensive income. The contractual cash flows of the Fund’s debt securities are solely principal and interest. However, these securities are neither held for the purpose of collecting contractu-al cash flows nor held both for collecting contractual cash flows and for sale.

The collection of contractual cash flows is only incidental to achieving the Fund’s business model’s objective. Consequently, all investments are measured at fair value through profit or loss.

The Fund classifies cash and cash equivalents, amount due from Manager,amount due from manager of collective invesment scheme and dividends receivable as financial assets at amortised cost as these financial assets are held to collect contractual cash flows consisting of the amount outstanding.

The Fund classifies amount due to Manager, amount due to Trustee, other payables as other financial liabilities measured at amortised cost.

(ii) Recognition and initial 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 assets. Investments are initially recognised at fair value.

Financial liabilities are recognised in the statement of financial position when, and only when, the Fund becomes a party to the contractual provisions of the financial instrument.

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 they are extinguished, i.e. when the obligation specified in the contract is discharged or cancelled or has expired.

B FINANCIAL ASSETS AND FINANCIAL LIABILITIES

increasing the prominence of stewardship in the objective of �nancial reportingreinstating prudence as a component of neutralityde�ning a reporting entity, which may be a legal entity, or a portion of an entityrevising the de�ntions of an asset and a liabilityremoving the probability threshold for recognition and adding guidance on derecognition adding guidance on di�erent measurement basis, andstating that pro�t or loss is the primary performance indicator and that, in principle, income and expenses in other comprehensive income should be recycled where this enchances the relevance or faithful representation of the �nancial statements.


17

Unrealised gains or losses arising from changes in the fair value of the �nancial assets at fair value through pro�t or loss are presented in the statement of comprehensive income within net gain or loss on �nancial assets at fair value through pro�t or loss in the �nancial period which they arise.

Dividend income from �nancial assets at fair value through pro�t or loss is recognised in the statement of comprehensive income as part of gross dividend income when the Fund's right to receive payment is established.

Collective investment schemes are valued based on the most recent published net asset value per unit or share of such collective investment scheme or if unavailable, on the last published price of such unit or share (excluding any sales charge included in such selling price).

Derivative investment consists of forward foreign currency contracts. Financial derivative position will be “marked to market” at the close of each valuation day. Foreign exchange gains and losses on the derivative �nancial instrument are recognised in pro�t or loss when se�led or at date of the statement of �nancial position at which time they are included in the measurement of the derivative �nancial instrument.

Deposits with licensed �nancial institutions are stated at cost plus accrued interest calculated on the e�ective interest method over the period from the date of placement to the date of maturity of the respective deposits.

Financial assets at amortised cost (2019: loans and receivables) and other �nancial liabilities are subsequently carried at amortised cost using the e�ective interest method.

(iii) Impairment

The Fund measures credit risk and expected credit losses using probability of default, exposure at default and loss given default. Management considers both historical analysis and forward looking information in determining any expected credit loss. Management considers the probability of default to be close to zero as these instruments have a low risk of default and the counterparties have a strong capacity to meet their contractual obligations in the near term. As a result, no loss allowance has been recognised based on 12 months expected credit losses as any such impairment would be wholly insigni�cant to the Fund.

(iv) Signi�cant increase in credit risk

A signi�cant increase in credit risk is de�ned by management as any contractual payment which is more than 30 days past due.

(v) De�nition of default and credit-impaired �nancial assets

Any contractual payment which is more than 90 days past due is considered credit impaired.

(vi) Write-o�

The Fund writes o� �nancial assets, in whole or in part, when it has exhausted all practical recovery e�orts and has concluded there is no reasonable expectation of recovery. The assessment of no reasonable expectation of recovery is based on unavaila-bility of debtor’s sources of income or assets to generate su�cient future cash �ows to repay the amount. The Fund may write o� �nancial assets that are still subject to enforcement activity. Subsequent recoveries of amounts previously wri�en o� will result in impairment gains. There are no write-o�s/recoveries during the �nancial period.


18

D INCOME RECOGNITION

C CREATION AND CANCELLATION OF UNITS

The unit holders’ contribution to the Fund meet the definition of puttable instruments classified as financial liability under MFRS 132 “Financial Instruments:Presentation”.

The Fund issues cancellable units in two classes of units, known respectively as the RM Class and RM-Hedged Class which are cancelled at the unit holders’ option. The units are classified as financial liabilities. Cancellable units can be put back to the Fund at any time for the cash equal to a proportionate share of the Fund’s net asset value of respective classes. The outstanding units are carried at the redemption amount that is payable at the statement of financial position date if the unit holders exercise the right to put the units back to the Fund.

Units are created and cancelled at the unit holder’s options at prices based on the Fund’s net asset value per unit of the respective classes at the close of business on the relevant dealing day. The Fund’s net asset value per unit of the respective classes is calculated by dividing the net assets attributable to the unit holders of respective classes with the total number of outstanding units of respective classes.

Interest income from deposits placed with licensed financial instituitions is recognised on an accrual basis using the effective interest rate method on accrual basis.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for financial assets that subsequently become credit-impaired. For credit-impaired financial assets the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss allowance).

Dividend income on collective investment schemes is recognised on the ex-dividend date, when the right to receive the dividend income has been established.

Realised gains or losses on disposal of collective investment schemes is calculated based on the difference between the net disposal proceeds and the carrying amount of the investments, determined on a weighted average cost basis.

Expenses are accounted for on an accrual basis and charged to the statement of comprehensive income.

Amounts due from and amount due to manager of collective investment scheme represent receivables for collective investment scheme sold and payables for collective investment scheme purchased that have been contracted for but not yet settled or delivered on the statement of financial position date respectively. The amount due from manager of collective investment scheme is held for collection.

These amounts are recognised initially at fair value and subsequently measured at amortised cost. At each reporting date, the Fund shall measure the loss allowance on amounts due from manager of collective of investment schemes at an amount equal to the lifetime expected credit losses if the credit risk has increased significantly since initial recognition. If, at the reporting date, the credit risk has not increased significantly since initial recognition, the Fund shall measure the loss allowance at an amount equal to 12-month expected credit losses.

Significant financial difficulties of the manager of collective investment scheme, probabili-ty that the manager of collective investment scheme will enter bankruptcy or financial reorganisation, and default in payments are considered indicators that a loss allowance may be required.

If the credit risk increases to the point that it is considered to be credit impaired, interest income will be calculated based on the goods carrying amount adjusted for the loss allowance. A significant increase in credit risk is defined by management as any contractu-al payment which is more than 30 days past due.

F AMOUNT DUE FROM/TO MANAGER OF COLLECTIVE INVESTMENT SCHEME

E EXPENSES


19

For deposits and placements with licensed �nancial institutions with maturities of less than three months, the carrying value is a reasonable estimate of fair value. For deposits and placements with maturities of three months and above, the estimated fair value is based on discounted cash �ows by using prevailing interbank money market rates at which similar deposits and placements would be made with �nancial institutions of similar credit risk and remaining period to maturity.

G CASH AND CASH EQUIVALENTS

For the purpose of statement of cash �ows, cash and cash equivalents comprise cash at banks and deposits held in highly liquid investment that are readily convertible to known amounts of cash, and which are subject to an insigni�cant risk of changes in value.

Items included in the �nancial statements of the Fund are measured using the currency of the primary economic environment in which the Fund operates (the “functional currency”). The �nancial statements are presented in United States Dollar (“USD”), which is the Fund's functional and presentation currency.

Due to mixed factors in determining the functional currency of the Fund, the Manager has used its judgement to determine the functional currency that most faithfully represents the economic e�ects of the underlying transactions, events and conditions and have determined the functional currency to be in USD primary due tothe following factors:

(i) Se�lement of the foreign trades are se�led in USD;(ii) Signi�cant portion of the Fund's expenses are denominated in USD; and (iii) Signi�cant portion of the Fund's investment are denominated in USD.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the se�lement of such transactions and from the translation at �nancial period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income, except when deferred in OCI as qualifying cash �ow hedges.

Fair value is price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants and the measurement date. The information presented herein represents the estimates of fair value as at the date of the statement of �nancial position.

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 characteris-tics of various �nancial instruments, discount rates, estimates of future cash �ows and other factors. Changes in the uncertainties and assumptions could materially a�ect these estimates and the resulting fair value estimates.

A range of methodologies and assumptions has been used in deriving the fair values of the Fund’s �nancial instruments as at the date of statement of �nancial position. The total fair value of each �nancial instrument is not materially di�erent from the total carrying value.

The fair values are based on the following methodologies and assumptions:

(a) Short-term deposits with �nancial institutions

H FUNCTIONAL AND PRESENTATION CURRENCY

I FAIR VALUE OF FINANCIAL INSTRUMENTS


20

Current tax expense is determined according to the Malaysian tax laws at the current rate based upon the taxable pro�t earned during the �nancial period.

A derivative �nancial instrument is any contract that gives rise to both a �nancial asset of one enterprise and a �nancial liability or equity instrument of another enterprise.

A �nancial asset is any asset that is cash, a contractual right to receive cash or another �nancial asset from another enterprise, a contractual right to exchange �nancial instruments with another enterprise under conditions that are potentially favourable, or an equity instrument of another enterprise.

A �nancial liability is any liability that is a contractual obligation to deliver cash or another �nancial asset to another enterprise, or to exchange �nancial instruments with another enterprise under conditions that are potentially unfavourable.

The Fund’s derivative �nancial instruments comprise forward currency contracts. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value.

The fair value of forward foreign exchange contracts is determined using forward exchange rates at the date of statements of �nancial position with the resulting value discounted back to present value.

The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and the nature of the item being hedged. Derivatives that do not qualify for hedge accounting are classi�ed as held for trading and accounted for in accordance with the accounting policy set out in Note B to the �nancial statements.

J TAXATION

K DERIVATIVE FINANCIAL INSTRUMENTS

(b) Collective investment schemes

(c) Other short-term �nancial instruments

The estimated fair value is based on the last published net asset value per unit or share of such collective investment schemes or, if unavailable, on the average of the last published buying price and the last published selling price of such unit or share (excluding any sales charge included in such selling price).

Other short-term �nancial instruments comprise amount due from/to Manager, amount due from/to the manager of collective investment scheme, amount due from/to dealer, amount due to Trustee, other payables and distribution payable. The carrying values of the assets and liabilities are assumed to approximate their fair values due to the short tenure of less than one year.


21

Manulife Investment U.S. Equity Fund (“the Fund”) was established pursuant to a Master Deed dated 8 August 2008, as amended and supplemented by subsequent Supplemen-tal Deeds (hereina�er referred to as “the Deed”) between Manulife Investment Management (M) Berhad (the “Management Company”) and HSBC (Malaysia) Trustee Berhad (“the Trustee”).

The principal activity of the Fund is to invest in collective investment schemes, liquid assets and any other form of investments as may be permi�ed by the Securities Commis-sion. The Fund commenced operations on 21 October 2009 and will continue its operations until terminated as provided under Clause 12 of the Deed.

The main objective of the Fund is to achieve capital appreciation over the medium- to long-term by investing in Manulife Global Fund - U.S. Equity Fund (formerly known as Manulife Global Fund - American Growth Fund).

The Manager of the Fund, a company incorporated in Malaysia, is a wholly-owned subsidiary of Manulife Holdings Berhad, a public limited liability company, incorporated and domiciled in Malaysia, and listed on the main market of Bursa Malaysia. Its principal activities are the management of unit trusts, private retirement schemes, fund management activities and �nancial planning.

The �nancial statements were authorised for issue by the Manager on 25 January 2021.

The unit holders’ contributions to the Fund meet the criteria to be classi�ed 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 asset value;• the units are the most subordinated class and class features are identical;• there is no contractual obligations to deliver cash or another �nancial asset other than the obligation on the Fund to repurchase; and• the total expected cash �ows from the units over their lifespan are based substantially on the pro�t or loss of the Fund.

The outstanding units are carried at the redemption amount that is payable at each �nancial period if the unit holders exercise the right to put the units 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 a�ributable to unit holders with the total number of outstanding units.

In accordance with the Deed, the Manager is entitled to Manager’s fee at a rate of 1.80% per annum (2019: 1.80% per annum) of the net asset value of the Fund before deducting Trustee’s fee and Manager’s fee for the day, calculated on a daily basis.

There will be no further liability to the Manager in respect of Manager’s fee other than the amount recognised above.

In accordance with the Deed, the Trustee is entitled to a fee of 0.04% per annum (2019: 0.08% per annum with RHB Trustee Berhad) of the net asset value of the Fund before deducting Trustee’s fee and Manager’s fee for the day.

There will be no further liability to the Trustee in respect of Trustee’s fee other than the amount recognised above.

1 INFORMATION ON THE FUND

2 NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS

3 MANAGER’S FEE

4 TRUSTEE’S FEE

11 NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS FINANCIAL PERIOD ENDED 30 NOVEMBER 2020


22

Numerical reconciliation between pro�t before taxation multiplied by the Malaysian statutory tax rate and tax expenses of the Fund is as follows:

5 TAXATION

6 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

2020 2019USD USD

Current taxation - -

Pro�t before taxation 1,772,988 1,022,590

425,517 245,422Tax calculated at Malaysian tax rate of 24%

(2019: 24%)

839

4,674

21,151 (452,181)

1,248

-

19,141 (265,811)

- -

2020 2019USD USD

2020 2019USD USD

Tax e�ect in respect of:- Expenses not deductible for tax purposes - E�ect of foreign tax on foreign taxable income - Restriction on tax deductible expenses for unit trust funds - Investment income not subject to tax

Tax expenses

30.11.2020 30.11.2019USD USD

Financial assets at fair value through pro�t or loss - Collective investment scheme

Net gain on �nancial assets at fair value through pro�t or loss - Realised - Unrealised

728,078 1,100,482

133,521 935,297

1,828,560 1,068,818

10,294,469 9,137,450


23

1,613,562

5,749,173 8,680,907 10,294,469 97.08TOTAL COLLECTIVE INVESTMENT SCHEME

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

10,294,469

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

Quantity Cost of shares

Fair value as at

30.11.2020

Fair value asat 30.11.2020 expressed as

percentageof value of

FundUnits USD USD %

COLLECTIVE INVESTMENT SCHEME

30.11.2020

5,749,173 8,680,907 10,294,469 97.08

Manulife Global Fund - U.S. Equity Fund (formerly known as Manulife Global Fund - American Growth Fund)

AMERICA

955,172

6,090,009 8,182,278 9,137,450 97.02TOTAL COLLECTIVE INVESTMENT SCHEME

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

9,137,450

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

Quantity Cost of shares

Fair value as at

30.11.2019

Fair value asat 30.11.2019 expressed as

percentageof value of

FundUnits USD USD %

COLLECTIVE INVESTMENT SCHEME

30.11.2019

6,090,009 8,182,278 9,137,450 97.02

Manulife Global Fund - U.S. Equity Fund (formerly known as Manulife Global Fund - American Growth Fund)

AMERICA


24

At beginning of the �nancial period Add: Creation of units Less: Cancellation of units

At end of the �nancial period

(ii) RM-Hedged Class 30.11.2020No. of units No. of units

447,761 6,180,283

(4,296,643)

85,176 655,558

(350,377)

2,331,401 390,357

30.11.2019

Bank balances in licensed banks

30.11.2020 30.11.2019USD USD

392,446 539,910

As at 30 November 2020, the notional principal amount of the 6 outstanding forward foreign currency contracts amounted to USD 454,969. The USD/MYR forward foreign currency contracts entered into during the �nancial period to minimise the risk of foreign exchange exposure between the USD and MYR for the Fund.

As the Fund has not adopted hedge accounting, the change in fair value of the forward foreign currency contract is recognised immediately in statement of comprehensive income.

7 DERIVATIVE ASSETS/LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

Forward foreign currency contract

30.11.2020 30.11.2019USD USD

2,812 (264)

10 UNITS IN CIRCULATION

At beginning of the �nancial period Add: Creation of units Less: Cancellation of units

At end of the �nancial period

(i) RM Class 30.11.2020No. of units No. of units

62,704,067 38,176,990

(40,328,677)

60,870,000 30,168,684

(25,630,607)

60,552,380 65,408,077

30.11.2019

Auditors’ remuneration Tax agent’s fee Sundry payables and accruals

9 OTHER PAYABLES

8 CASH AND CASH EQUIVALENTS

30.11.2020 30.11.2019USD USD

669 805

3,491

2,872 1,858 5,562

4,965 10,292

Net realised gain/(loss) on forward currency contracts Net unrealised gain/(loss) on forward currency contracts

30.11.2020 30.11.2019USD USD

7,160 2,773

(123) (194)

9,933 (317)


25

* The units are held legally and bene�cially** The units are held legally

In addition to the related party disclosure mentioned elsewhere in the �nancial statements, there were no other signi�cant related party transactions and balances.

The Manager is of the opinion that all transactions with related companies have been entered into at agreed terms between related parties.

As at:

30.11.2020 No. of units USD

- RM Class

- RM-Hedged Class

-

-

-

-

MANAGERMANULIFE INVESTMENT

MANAGEMENT (M)BERHAD *

No. of units USD

-

-

-

-

DIRECTOR OF THEMANAGER

WONG BOON CHOY**

As at:

30.11.2019

- RM Class

- RM-Hedged Class

-

-

-

-

100,588

-

14,394

-

There were no transactions with dealers in relation to equities and �xed income securities as at 30 November 2020 and 30 November 2019.

12 UNITS HELD BY THE MANAGER AND PARTIES RELATED TO THE MANAGER

11 BROKERS’ TRANSACTIONS

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

Units held by the Manager and party related to the Manager:

Related partiesManulife Investment Management (M) Berhad Manulife Financial Corporation (“Manulife”)

Manulife Holdings Berhad

Subsidiaries and associates of Manulife as disclosed in its �nancial statements

Directors of Manulife Investment Management (M) Berhad

RelationshipThe Manager

Ultimate holding company of the ManagerImmediate holding company of the ManagerSubsidiaries and associate companies of the ultimate holding company of the ManagerDirectors of the Manager


26

Collective investment scheme designated at fair value through pro�t or loss 10,294,469 9,137,450

USD

30.11.2020

USD

30.11.2019

15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Fund is exposed to a variety of risks which include market risk (including price risk, interest rate risk and currency 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 all rules and regulations as stipulated by the Securities Commission’s Guidelines on Unit Trust Funds.

Market risk

(a) Price risk

Price risk arises mainly from uncertainty about future prices of investments. It represents the potential loss the Fund may su�er 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 pro�le of the investment portfolio.

The table below shows the assets of the Fund which are exposed to price risk.

14 PORTFOLIO TURNOVER RATIO (“PTR”)

PTR represents the average of total acquisitions and disposals of investments in the Fund for the �nancial period over the Fund’s average net asset value calculated on a daily basis.

The following table summarises the sensitivity of the Fund’s pro�t or loss before tax and net asset value to price risk movements of collective investment schemes. The analysis is based on the assumptions that the market price of collective investment schemes �uctuates by 5% with all other variables being held constant, and that fair value of the Fund’s investments move according to the historical correlation of the index. Disclosures are shown in absolute terms, changes and impact could be positive or negative.

%

PTR (times) 0.65 0.37

2020

%

2019

13 MANAGEMENT EXPENSES RATIO (“MER”)

MER represents expenses including Manager’s fee, Trustee’s fee, auditors’ remuneration, tax agent’s fee and other expenses expressed as an annual percentage of the Fund’s average net asset value calculated on a daily basis.

%

MER 0.95 1.03

2020

%

2019


27

* Other liabilities consist of amount due to Trustee, other payables and distribution payable.

The following table summarises the sensitivity of the Fund's pro�t or loss before tax and net asset value to changes in foreign exchange movements at the end of each reporting period. The analysis is based on the assumption that the foreign exchange rate �uctuates by 5%, with all other variables remaining constant. This represents management's best estimate of a reasonable possible shi� in the foreign exchange rate, having regard to historical volatility of this rate. Disclosures are shown in absolute terms, changes and impacts could be positive or negative.

TotalUSD USD

As at

30.11.2020

MYR 9,770 (64,717)

Amountdue

from/toManager

USD

(76,723)

Amountdue

from/todealer

Cash andcash

equivalentsUSD

2,236

30.11.2019

MYR 37 (39,324)

USD

-

Otherliabilities*

(10,582)(28,808)29

(b) Interest rate risk

Interest rate risk is the risk that the value of a �nancial instrument will �uctuate due to changes in market interest rate.

The Fund’s exposure to the interest rate risk is mainly con�ned to deposits with �nancial institutions. The Manager overcomes this exposure by way of maintaining deposits on short-term basis. Therefore, the Fund’s exposure to interest rate �uctuation is minimal.

(c) Currency risk

For investments denominated in foreign currencies, the currency risk may have a signi�cant impact on the returns of the Fund. The Manager will evaluate the likely direction of a foreign currency versus Ringgit Malaysia based on consideration of economic fundamentals such as interest rate di�erentials, balance of payment position, debt level and technical consideration.

The Fund’s foreign currency risk concentration is as follows:

514,723 514,723


As at:

30.11.2020 USD USD%

5

456,873 456,873


30.11.2019

5

Changes inprice

Impact onpro�t of loss

Impact on netasset value


28

TotalUSD USD USD

As at

30.11.2020

AAA Not rated

2,812-

395,258 98,615

12,122 2,812 493,873

Derivativeassets at

fair valuethroughpro�t or

loss

Amountdue fromManager

-12,122

USD

86,493

Amountdue from

dealer

-86,493

30.11.2019

AAA Not rated

--

539,910321,971

211,467 - 861,881

-211,467

110,504

- 110,504

Cash andcash

equivalentsUSD

392,446

392,446-

539,910

539,910-

Neither Past Due Nor Impaired

Credit risk

Credit risk is the risk that one party to a �nancial instrument will cause a �nancial loss to the other party by failing to discharge an obligation. The Manager manages the credit risk by undertaking credit evaluation to minimise such a risk.

Credit risk arising from placement of deposits in licensed �nancial institutions is managed by ensuring that the Fund will only place deposits in reputable licensed �nancial institutions.

For amount due from/to manager of collective investment schemes the Fund will invest with an investment management company of collective investment scheme which is authorised or approved by the relevant regulatory authority in its own juridiction.

The se�lement terms of the proceeds from the creation of units receivable by the Manager are governed by the Securities Commission’s Guidelines on Unit Trust Funds.

The maximum exposure to credit risk before any credit enhancements in the carrying amount of the �nancial assets is set out as below:

As at:

30.11.2020 USD USD%

Changes inforeign

exchangeImpact on

pro�t or lossImpact on net

asset value

MYR 5 (3,236) (3,236)

30.11.2019

MYR 5 (1,966) (1,966)


29

Financial liabilities

Net assets a�ributable to unit holders*Amount due to Manager - Manager’s fee - Cancellation of units Amount due to manager of collective investment scheme - Purchase of collective investment scheme Amount due to Trustee Amount due to dealer Other payables

- -

- - - -

10,604,465

14,439 9,770

144,620 321

9,762 4,965

- 10,788,342

10,604,465

14,439 9,770

144,620 321

9,762 4,965

10,788,342

TotalUSD USD

As at

30.11.2020

Financial assets

Cash and cash equivalents Financial assets at fair value through pro�t or loss Amount due from Manager Amount due from dealer Derivative assets at fair value through pro�t or loss

392,446

10,294,469 - -

-

392,446

10,294,469 86,493 12,122

2,812

10,686,915 10,788,342

No maturitydate

USD

-

- 86,493 12,122

2,812

101,427

Within oneyear

TotalUSD USD

As at

30.11.2019

Financial assets

Cash and cash equivalents Financial assets at fair value through pro�t or loss Amount due from manager Amount due from dealer

539,910

9,137,450 - -

539,910

9,137,450 110,504 211,467

9,677,360 9,999,331

No maturitydate

USD

-

- 110,504 211,467

321,971

Within oneyear

Liquidity risk

Liquidity risk is the risk that the Fund will encounter di�culty in meeting its �nancial obligations. The Manager manages this risk by maintaining a su�cient level of liquid assets to meet anticipated payments and cancellations of units by unit holders. The liquid assets comprise cash at banks, deposits with licensed �nancial institutions and other instruments which are capable of being converted into cash within 7 days.

The following table analyses the Fund’s �nancial assets and �nancial liabilities into relevant maturity groupings based on the remaining period at the statement of �nancial position date to the contractual maturity date. The amounts in the following table are the contractual undiscounted cash �ows.


30

16 SIGNIFICANT EVENT DURING THE FINANCIAL PERIOD

The worsening macro-economic outlook as a consequence of the Covid-19 pandemic, both domestically and globally, could result in a deterioration of the Fund's net asset value per unit in the future.

The Manager is monitoring the situation closely and will be actively managing the portfolio to achieve the Fund's objective.

* Units are cancelled on demand at the unit holders’ option (Note 10). However, the Manager does not envisage the contractual maturity disclosed in the table above will be representative of the actual cash out�ows as unit holders typically retain them for the medium to long-term.

Capital risk

The capital of the Fund is represented by net assets a�ributable to unit holders' of USD10,604,465 (2019: USD9,418,343) The amount of net assets a�ributable to unit holders' can change signi�cantly on a daily basis as the Fund is subject to daily subscrip-tions 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 bene�ts for other stakeholders, and to maintain a strong capital base to support the development of the investment activities of the Fund.

Fair value estimation

The Fund classi�es fair value measurements using a fair value hierarchy that re�ects the signi�cance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

• 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).

Financial assets at fair value through pro�t or loss consisting of USD10,294,469 (30.11.2019: USD9,137,450) is classi�ed within level 1.

TotalUSD USD

No maturitydate

USD

Within oneyearAs at

30.11.2019

Financial liabilities

Net assets a�ributable to unit holders*Amount due to Manager - Manager’s fee - Cancellation of units Amount due to manager of collective investment scheme - Purchase of collective investment scheme Amount due to Trustee Amount due to dealer Derivative liabilities at fair value through pro�t or loss Other payables

- -

- -

- -

9,418,343

13,061 126,251

219,400 290

211,430

264 10,292

- 9,999,331

9,418,343

13,061 126,251

219,400 290

211,430

264 10,292

9,999,331


31

12 CORPORATE INFORMATIONMANAGERManulife Investment Management (M) BerhadRegistration No.: 200801033087 (834424-U)13th Floor, Menara ManulifeNo. 6, Jalan GelenggangDamansara Heights50490 Kuala Lumpur

BOARD OF DIRECTORSDato’ Md Agil Bin Mohd Na� (Independent)Edmond Cheah Swee Leng (Independent)Gianni Fiacco (Non-Independent)Vibha Hamsi Coburn (Non-Independent)Wong Boon Choy (Non-Independent)Chong Soon Min (Jason) (Non-Independent Executive)

INVESTMENT COMMITTEEDato’ Dr Zaha Rina Binti Zahari (Independent)Dato’ Md Agil Bin Mohd Na� (Independent)Edmond Cheah Swee Leng (Independent)Wong Boon Choy (Non-Independent)Chong Soon Min (Jason) (Non-Independent)

INVESTMENT MANAGERManulife Investment Management (M) Berhad Registration No: 200801033087 (834424-U)10th Floor, Menara Manulife No. 6, Jalan GelenggangDamansara Heights50490 Kuala Lumpur

TRUSTEE OF THE FUNDHSBC (Malaysia) Trustee BerhadRegistration No. 193701000084 (1281-T)13th Floor, Bangunan HSBC, South Tower,No.2, Leboh Ampang50100 Kuala Lumpur

AUDITORSPricewaterhouseCoopers PLTRegistration no. LLP0014401-LCA & AF1146Level 10, 1 Sentral, Jalan TraversKuala Lumpur SentralP O Box 1019250706 Kuala Lumpur

TAX CONSULTANTSDeloi�e Tax Services Sdn BhdRegistration No: 197701005407 (36421-T)Level 16, Menara LGB1, Jalan Wan KadirTaman Tun Dr Ismail60000 Kuala Lumpur


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HEAD OFFICEManulife Investment Management (M) BerhadRegistration No.: 200801033087 (834424-U)

13th Floor, Menara ManulifeNo. 6, Jalan Gelenggang

Damansara Heights50490 Kuala Lumpur

Tel: (03) 2719-9228 Fax: (03) 2094-7654E-mail : [email protected]: www.manulifeinvestment.com.my

BRANCH OFFICES

Kota Bharu1st Floor, Lot 10900

Wisma Seri SetiaJalan Dusun Muda, Sek 26

15200 Kota BharuKelantan

Tel: (09) 747-2388Fax: (09) 747-2588

Sungai PetaniLot 88, No. 17, 2nd Floor

Jalan Perdana Heights 2/2Perdana Heights

08000 Sungai PetaniKedah Darul AmanTel: (04) 423-3233Fax: (04) 423-3233

Penang1-2-18, Elit Avenue,

Jalan Mayang Pasir 3,11950 Bayan Baru,

PenangTel: (04) 611-9944 / 618-0044

Fax: (04) 618-0505

IpohNo. 1, 1A & 1B

Pusat Perdagangan Canning 2 Pusat Perdagangan Canning

31400 IpohPerak Darul RidzuanTel: (05) 541-6839Fax: (05) 541-6627

Dataran Sunway26-2 & 28-2, Jalan PJU 5/8

Dataran SunwayKota Damansara

47810 Petaling JayaSelangor Darul Ehsan

Tel: (03) 6140-8101 / 6140-8102Fax: (03) 6140-8103

Shah Alam30-1, Block 5,

Jalan Setia Prima (S)U13/S, Setia Alam,

Seksyen U13,40170 Shah Alam

Selangor Darul EhsanTel: (03) 3362-6668Fax: (03) 3362-6662


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KlangNo. 3-1 & 3-2,

Jalan Mahogani 5/K507,Bandar Botanic,

41200 KlangSelangor Darul EhsanTel: (03) 3318-6088Fax: (03) 3318-4011

Kuala Lumpur2nd Floor, Menara Manulife

No. 6, Jalan GelenggangDamansara Heights

50490 Kuala LumpurTel: (03) 2719-9204

Seremban160-2, Taipan Senawang

Jalan Taman Komersil Senawang 1Taman Komersil Senawang

70450 SerembanNegeri Sembilan

Tel: (06) 671-5019Fax: (06) 678-0016

MelakaNo. 87-01 & 87-02

Jalan Melaka Raya 25Taman Melaka Raya 1

75000 MelakaTel: (06) 281-3866Fax: (06) 282-0587

Johor BahruNo. 1-01, Jalan Setia Tropika 1/15

Taman Setia Tropika81200 Johor BahruJohor Darul TakzimTel: (07) 234-5871Fax: (07) 234-4620

KuchingNo. 63 & 65, 2nd Floor

Jalan Tun Jugah93350 Kuching

SarawakTel: (082) 593-380Fax: (082) 593-382

MiriLot. 3554, 1st & 2nd Floor

Block 5 MCLDJalan Miri Pujut

101 Commercial Centre98000 Miri

SarawakTel: (085) 325-770Fax: (085) 326-262

BintuluNo. 2, Lot 3288

1st FloorParkcity Commerce Square

Jalan Tun Ahmad Zaidi97000 Bintulu

SarawakTel: (086) 343-288Fax: (086) 343-289


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SibuNo. 1 & 3, 1st Floor, Lorong 1,Jalan Tun Abang Haji Openg

96000 SibuSarawak

Tel: (084) 320-469Fax: (084) 320-476

Kota KinabaluLot J-55-2, Block J,

2nd Floor, Signature O�ce,KK Times Square,

O� Jalan Coastal Highway,88100 Kota Kinabalu

SabahTel: (088) 486-671 / 486-672

Fax: (088) 486-670

SandakanTaman Nasalim Shoplot

Lot 88, 1st Floor, Phase 7AJalan Lintas Utara90000 Sandakan

SabahTel: (089) 220-220 / 229-045

Fax: (089) 226-868


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